← The Knowledge Project

#115 Danny Meyer: Hospitality and Humanity

Jul 13, 2021 56m 54s 13 insights
Celebrated restaurateur Danny Meyer discusses the intersection between hospitality and humanity, and why we are all in the hospitality business regardless of where we work. Meyer defines hospitality and how to deliver it with every interaction, how we can scale a feeling, hiring great people and when to let them go, and so much more. Meyer is the Chief Executive Officer of the Union Square Hospitality Group, which comprises some of New York's most beloved and acclaimed restaurants, including Gramercy Tavern, The Modern, and Maialino. In 2004 Meyer and USHG founded the wildly popular Shake Shack, a New York fast-casual restaurant chain that has since grown to more than 250 locations around the world. Go Premium: Members get early access, ad-free episodes, hand-edited transcripts, searchable transcripts, member-only episodes, and more. https://fs.blog/membership/ Every Sunday our newsletter shares timeless insights and ideas that you can use at work and home. Add it to your inbox:https://fs.blog/newsletter/ Follow Shane on Twitter at: https://twitter.com/ShaneAParrish
Actionable Insights

1. Prioritize Internal Hospitality

Apply hospitality first to your internal team members, trusting they are on your side, because this approach fosters their best performance and creates a virtuous cycle benefiting all stakeholders, including customers, community, suppliers, and investors.

2. Hire for Hospitality Quotient

Prioritize hiring based on a ‘Hospitality Quotient’ (HQ), which is the degree to which individuals are happier when making others feel better, as this emotional skill accounts for 51% of an ideal employee’s value beyond technical competence.

3. Six Essential Emotional Skills

Actively seek candidates who demonstrate optimistic kindness, intellectual curiosity, a strong work ethic (excellence reflex), empathy (doing unto others as they would want), self-awareness (understanding one’s ‘personal weather report’), and integrity, as these are crucial for a high Hospitality Quotient.

4. Manage Performance with Quadrant Chart

Utilize a four-quadrant chart (Can/Can’t vs. Will/Won’t) to objectively manage employee performance, assigning specific action steps and timeframes for each category, particularly addressing ‘Can but Won’t’ employees who undermine culture despite their competence.

5. Transform Mistakes with Five A’s

Turn honest mistakes into positive opportunities by following the ‘Five A’s’: Be Aware, Acknowledge, Apologize, Act (to fix it), and Apply Additional Generosity, aiming to ‘write a great next chapter’ where the handling of the mistake becomes a positive story.

6. Culture: A Dynamic Value System

Recognize that culture is like a shark, constantly moving or dying, meaning it must evolve with growth; while the ‘way we do things’ changes, your core value system must remain a constant compass.

7. Scale Culture by Promoting Values

Scale your organizational culture by intentionally promoting individuals who embody desired emotional skills and values, as these promotions signal to the entire organization what behaviors are truly valued and rewarded.

8. Blend Systems with Customization

Combine the efficiency of ‘bricklayer’ systems for consistent baseline quality with the ‘mason’ approach of customized, empathetic judgment to tailor experiences for individual guests, ensuring both repeatable excellence and personalized hospitality.

9. Select Locations with Terroir Mindset

When choosing a business location, deeply understand its inherent ’terroir’ – what the space and its surroundings communicate – and only select a site that inherently makes people feel good, even if it were free, as the location sets the stage for your business.

10. Cultivate Culture Like a Vineyard

Build a strong organizational culture by carefully selecting people who can thrive in your ‘soil,’ continuously nurturing it, providing training, and ‘pruning’ (firing) individuals who hinder the collective growth, much like a winemaker tends a vineyard.

11. Overcome Fear of Business Expansion

Address personal fears related to business growth by recognizing that past failures are not predestined outcomes, and by intentionally surrounding yourself with diverse talent that compensates for your weaknesses and amplifies your strengths.

12. Advocate for Fair Employee Wages

Implement and advocate for fair living wages for all employees in your industry, even if it necessitates raising prices, to ensure a sustainable business model that values its people and contributes positively to the broader economy.

13. Scaling Feeling is Most Tricky

Understand that scaling a ‘feeling’ or human experience (hospitality) is the most challenging aspect of organizational growth, even more so than consistently replicating product or service quality, and requires dedicated strategic effort.