Setting the Table

1. Build a culture of enlightened hospitality to create exceptional experiences

Hospitality is present when something happens for you. It is absent when something happens to you. Those two simple prepositions – for and to – express it all.

Hospitality is a dialogue. It's about creating a genuine connection with guests and making them feel that you're on their side. This goes beyond providing good service; it's about anticipating needs, showing empathy, and creating memorable experiences. To achieve this:

• Focus on making guests feel seen, heard, and valued
• Train staff to be agents of hospitality, not gatekeepers
• Encourage staff to look for opportunities to go above and beyond

Create a welcoming environment. Pay attention to details that contribute to guests' comfort and enjoyment, such as:

• Thoughtful seating arrangements
• Appropriate noise levels and music
• Warm greetings and genuine farewells

By consistently delivering exceptional hospitality, you create loyal customers who become advocates for your business.

2. Prioritize stakeholders: employees, guests, community, suppliers, then investors

The interests of our own employees must be placed directly ahead of those of our guests because the only way we can consistently earn raves, win repeat business, and develop bonds of loyalty with our guests is first to ensure that our own team members feel jazzed about coming to work.

Put employees first. Happy, motivated employees are the key to delivering great experiences to guests. Prioritize:

• Competitive wages and benefits
• Opportunities for growth and development
• A positive, supportive work environment

Build strong relationships with all stakeholders. While employees come first, it's crucial to nurture relationships with:

• Guests: Focus on creating memorable experiences and building loyalty
• Community: Engage in meaningful outreach and support local causes
• Suppliers: Develop mutually beneficial partnerships based on shared values
• Investors: Deliver sustainable returns by taking care of other stakeholders first

This prioritization creates a virtuous cycle where success with one group of stakeholders reinforces success with the others, ultimately leading to long-term profitability and growth.

3. Hire for emotional skills (51%) over technical skills (49%)

We aim to hire people who possess an emotional skill that chef Michael Romano calls the excellence reflex.

Seek out "51 percenters." These are individuals who possess strong emotional skills that align with your company's values and culture. Key emotional skills to look for:

• Optimistic warmth
• Intelligence (curiosity and willingness to learn)
• Work ethic
• Empathy
• Self-awareness and integrity

Develop a rigorous hiring process. To identify and attract 51 percenters:

• Use behavioral interview questions
• Implement a "trailing" system for candidates to experience the work environment
• Involve current team members in the hiring decision

While technical skills can be taught, emotional skills are more difficult to develop. By prioritizing emotional skills in hiring, you create a team that naturally delivers exceptional hospitality and drives your business forward.

4. Create a virtuous cycle by investing in your community

I am convinced that doing things that make sense for the community leads to doing well as a business.

Engage in meaningful community outreach. Look for opportunities to:

• Support local causes and organizations
• Participate in community events
• Take a leadership role in improving your neighborhood

Encourage employee involvement. Make community engagement a part of your company culture by:

• Allowing paid time off for volunteering
• Matching employee donations to charitable causes
• Recognizing and rewarding community involvement

Align community efforts with your business. Find ways to create win-win situations where your community involvement also benefits your business. Examples:

• Sponsoring events that align with your brand values
• Partnering with local suppliers and organizations
• Creating programs that showcase your expertise while addressing community needs

By investing in your community, you build goodwill, attract like-minded customers and employees, and create a positive reputation that contributes to long-term success.

5. Turn mistakes into opportunities for growth and customer loyalty

The road to success is paved with mistakes well handled.

Embrace mistakes as learning opportunities. Instead of fearing mistakes, view them as chances to:

• Improve your processes and systems
• Demonstrate your commitment to excellence
• Build stronger relationships with customers

Develop a systematic approach to handling mistakes. Follow these steps:

1. Acknowledge the mistake quickly and sincerely
2. Take immediate action to rectify the situation
3. Offer appropriate compensation or a gesture of goodwill
4. Follow up to ensure the customer is satisfied
5. Analyze the root cause and implement preventive measures

Write a great last chapter. Go above and beyond in your response to mistakes to turn a negative experience into a positive one. This often leads to increased customer loyalty and positive word-of-mouth.

By handling mistakes well, you not only resolve immediate issues but also build a reputation for integrity and customer care that sets you apart from competitors.

6. Apply constant, gentle pressure to maintain standards and drive improvement

Constant, gentle pressure is my preferred technique for leadership, guidance, and coaching.

Set clear expectations. Clearly communicate your standards and non-negotiable values to all team members. This provides a framework for decision-making and performance.

Consistently reinforce standards. Regularly:

• Observe and provide feedback on performance
• Recognize and reward excellence
• Address issues promptly and constructively

Balance firmness with empathy. When applying pressure:

• Be consistent in your approach
• Maintain a supportive, coaching mindset
• Focus on improvement rather than punishment

By applying constant, gentle pressure, you create an environment where excellence becomes the norm and team members are motivated to continuously improve their performance.

7. Make strategic decisions based on context, timing, and core values

Context is everything. What has guided me most as an entrepreneur is the confluence of passion and opportunity (and sometimes serendipity) that leads to the right context for the right idea at the right time in the right place and for the right value.

Evaluate opportunities holistically. When considering new ventures or partnerships, assess:

• Context: Does it align with your brand and values?
• Timing: Is your organization ready for this opportunity?
• Core values: Will this decision reinforce or compromise your principles?

Be willing to say no. Sometimes the best decisions are the opportunities you decline. Consider:

• Would you do this deal if it were free?
• Does it excite and energize you?
• Can you be a category leader in this venture?

Stay true to your vision. Don't compromise your long-term goals for short-term gains. Make decisions that:

• Enhance your overall strategic objectives
• Allow you to create something groundbreaking and fresh
• Benefit your existing businesses

By carefully evaluating opportunities based on context, timing, and core values, you make decisions that lead to sustainable growth and success.

8. Cultivate a diverse team that complements your strengths and weaknesses

I'm not impressed by a candidate's technical prowess if the meaningful emotional skills aren't already in place.

Build a well-rounded leadership team. Surround yourself with individuals who:

• Bring diverse perspectives and expertise
• Challenge your thinking constructively
• Share your core values and vision

Encourage open dialogue and debate. Create a culture where:

• Different viewpoints are welcomed and respected
• Decisions are made through consensus-building
• Everyone feels empowered to contribute ideas

Recognize and address your own limitations. Be self-aware about:

• Your strengths and weaknesses
• Areas where you need support or development
• Blind spots that could impact decision-making

By cultivating a diverse, complementary team, you create a more resilient organization capable of navigating complex challenges and seizing opportunities.

9. Use hospitality to differentiate your business in any industry

In business, like life, you get what you give. We try to apply a humanitarian viewpoint to every business challenge, to find creative, gracious solutions and reassure our guests that we are solidly on their side.

Apply hospitality principles broadly. Hospitality isn't limited to restaurants; it can be a differentiator in any business:

• Focus on creating positive emotional connections with customers
• Train all employees to embody a hospitality mindset
• Look for opportunities to exceed expectations and create memorable experiences

Customize your approach. Adapt hospitality principles to fit your specific industry and customer base:

• Identify key touchpoints where hospitality can make a difference
• Develop industry-specific ways to demonstrate that you're on the customer's side
• Create systems and processes that support a culture of hospitality

Measure and reward hospitality. Make hospitality a key performance indicator:

• Gather feedback on customer experiences
• Recognize and celebrate examples of exceptional hospitality
• Incorporate hospitality metrics into performance evaluations and incentive programs

By making hospitality a core part of your business strategy, you create a unique competitive advantage that's difficult for others to replicate.

10. Balance growth with maintaining quality and organizational culture

Often, when businesses fail in our industry it's because of too much expansion; quality suffered and the organization couldn't handle it.

Grow strategically and sustainably. When considering expansion:

• Ensure you have the necessary talent and resources in place
• Maintain focus on your core business while pursuing new opportunities
• Be willing to say no to deals that could compromise quality or culture

Preserve your organizational DNA. As you grow:

• Clearly articulate and reinforce your core values and culture
• Develop strong systems for training and onboarding new employees
• Promote from within to maintain continuity and institutional knowledge

Monitor quality closely. Implement systems to:

• Regularly assess performance across all locations or divisions
• Gather and act on customer feedback
• Address issues quickly before they become systemic problems

By balancing growth with a commitment to quality and culture, you create a foundation for long-term success and avoid the pitfalls of overexpansion.

Last updated: August 27, 2024