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As a server I was very social with my teammates. We would hit the bar nearly every night after work—everyone would go. We attended parties together, went camping, etc; we were a family in and out of work. Then, I got an opportunity to become a manager. While this did change the relationship I had with my co-workers, it would teach me how to balance friendships with what is best for the restaurant. I had to get used to firing my friends.

I have seen managers fired and team members let go over the mishandling of said relationships. I have seen the worst, I have seen/experienced the good, and I have seen the flat out ugly that goes along with manager/employee relationships.
If you put people together everyday, relationships will occur—it is inevitable.
How do you prevent relationships from forming? You don’t. The only thing you can control is how you go about it.

If I were to hire my best friend or wife as a server, then anything I did would be seen as favoritism even though I am harder on the friends and family that I hire. It is just plain bad for morale. You can’t expect to ease the minds of your team, so just don’t do it.

Is it okay to be friends with your directs? I think so. Do you go and get drunk with them? No, absolutely not. Can you go play a game of bowling, go on a bike ride, or out to eat with them? Absolutely. Never put yourself in a situation that could end in drama or a situation that might effect your work environment. If you do, then you will probably be fired .

You have got to have a great relationship with your team. You must be their friend. However, what you do beyond that is completely in your control. Understand your companies policy on this; some are very strict.
If you put yourself in a bad position, you could compromise the restaurant. Sexual harassment is a shady area. Going too far is not clearly defined. So it could be very easy to offend someone and that someone could sue you and your company.

Bottom line: Represent your company at all times. Be a professional at all times. If you follow a moral code, you will have nothing to worry about. Nothing is worse than your company getting slapped with a sexual harassment charge. Never put your work relationships before your job.