How to build a great culture with restaurateur Danny Meyer
4Digest
This podcast episode features an interview with Danny Meyer, the founder of Shake Shack and Union Square Hospitality Group, by Adam Grant. Meyer shares his insights on building a culture of generosity in the workplace, focusing on the importance of employee well-being and creating a positive work environment. He emphasizes the concept of "hospitality quotient" (HQ), which he defines as the degree to which someone feels better about themselves when they make someone else feel better. Meyer argues that HQ is as important as IQ in the hospitality industry and shares his interview questions designed to assess HQ. He also discusses his leadership philosophy, which prioritizes clear communication, setting realistic expectations, and fostering a sense of trust and accountability. The episode includes a lighting round of questions, covering topics such as Meyer's go-to Shake Shack order, his dream menu item, and his favorite conversation to have with an employee who wants to grow. They also answer questions from the audience about employee retention, navigating subcultures, and running experiments.
Outlines
Building a Culture of Generosity and Hospitality Quotient
Danny Meyer discusses his leadership philosophy, emphasizing the importance of employee well-being and creating a positive work environment. He introduces the concept of "hospitality quotient" (HQ) and its significance in the hospitality industry.
Lighting Round and Audience Questions
Grant and Meyer engage in a lighting round of questions, covering topics such as Meyer's go-to Shake Shack order, his dream menu item, and his favorite conversation to have with an employee who wants to grow. They also answer questions from the audience about employee retention, navigating subcultures, and running experiments.
Keywords
Hospitality Quotient (HQ)
A measure of a person's ability to make others feel better, which in turn makes them feel better about themselves. It's a key element of success in the hospitality industry, emphasizing empathy and genuine care for others.
Enlightened Hospitality
A philosophy of hospitality that prioritizes employee well-being and creating a positive work environment. It emphasizes treating colleagues with respect, fostering a sense of community, and prioritizing customer satisfaction through employee satisfaction.
Virtuous Cycle
A positive feedback loop where one good thing leads to another, creating a chain of positive outcomes. In the context of enlightened hospitality, it refers to the idea that prioritizing employee well-being leads to increased customer satisfaction, which in turn leads to greater profitability and employee satisfaction.
Humble Swagger
A combination of humility and confidence, characterized by a willingness to learn and grow while also being assertive and ambitious. It's a desirable trait in leaders, as it allows them to be both approachable and effective.
Shake Shack
A popular fast-casual restaurant chain founded by Danny Meyer, known for its burgers, fries, and milkshakes. It's a successful example of Meyer's leadership philosophy in action, with a focus on customer service and employee well-being.
Union Square Hospitality Group
A restaurant group founded by Danny Meyer, known for its high-quality dining experiences and commitment to creating a positive work environment. It includes restaurants such as Union Square Cafe, Gramercy Tavern, and The Modern.
Q&A
What is your founding philosophy for building a culture of generosity in your restaurants?
Meyer's founding philosophy was born out of his own insecurity as a young leader. He wanted to make his employees feel successful and give them a reason to come to work beyond just their job. He aimed to make people leave happier than they felt when they came.
How do you measure the "hospitality quotient" (HQ) of your employees?
Meyer believes HQ is as important as IQ in the hospitality industry. He uses interview questions to assess HQ, focusing on empathy, vulnerability, and the ability to make others feel better. He also uses trust surveys and pulse surveys to gauge employee sentiment and measure the impact of his leadership on the work environment.
What is the single biggest thing you've done since COVID started to help with frontline worker retention?
Meyer implemented a 51% discount for all employees to dine at any of his restaurants. This has been a powerful retention tool, allowing employees to experience the quality of the restaurants they work for and providing them with a sense of belonging and appreciation.
Show Notes
At 27, long before he gained acclaim as the restaurateur behind Shake Shack and Gramercy Tavern, Danny Meyer launched his first venture, Union Square Cafe. More than 20 James Beard Foundation awards later, Danny shares the strategies and insights that fueled his restaurant empire. He and Adam discuss how to build a culture of excellence and care, how to hire people who treat others well, and how to bring values to life. Danny is the author of the New York Times bestseller Setting the Table.
Transcripts for ReThinking are available at go.ted.com/RWAGscripts
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