Quote: On Building a Service Culture
In a video on corporate culture, a hospitality CEO argued that exceptional guest service starts with the staff's experience. The expert stated, "Culture is what happens when no one is watching. If you want guests to feel cared for, your staff must feel it first."
- The concept that employee experience drives guest experience is formalized in the "service-profit chain" model, originally developed by researchers at Harvard Business School. It links employee satisfaction and loyalty directly to customer loyalty and a company's profitability. - Restaurateur Danny Meyer built his Union Square Hospitality Group on the principle of "Enlightened Hospitality," which prioritizes stakeholders in a specific order: employees first, then guests, the community, suppliers, and finally, investors. Meyer distinguishes between "service," the technical delivery of a product, and "hospitality," which is how that delivery makes the recipient feel. - Horst Schulze, co-founder of The Ritz-Carlton, established the motto, "We are Ladies and Gentlemen serving Ladies and Gentlemen," to put employees and guests on an equal stature, reinforcing the value of the staff. This is part of the company's "Gold Standards," which also include a credo and three steps of service that are required knowledge for all employees. - At The Ritz-Carlton, any employee is empowered to spend up to $2,000 to resolve a guest's problem without seeking a manager's approval. Schulze framed this not as a cost, but as a sound economic decision based on the roughly $200,000 lifetime value of a loyal customer. - According to Gallup research, companies with highly engaged employees see, on average, 10% higher customer loyalty and engagement. These businesses also tend to be 23% more profitable than their counterparts with disengaged workforces. - Four Seasons Hotels and Resorts is consistently ranked as a top hospitality employer due to its focus on employee satisfaction. The company's culture is guided by the Golden Rule—"to treat others as you would have them treat you"—which extends to staff, guests, and partners. - A 2024 survey by The Caterer and Korero found that 83% of employees at the "Best Places to Work in Hospitality" felt engaged, compared to a Gallup finding that only 10% of all UK workers felt engaged at work in 2023. The top priority for these hospitality employees was "a positive and welcoming work environment."
