Re-listened to @patrick_oshag's pod with Shake Shack founder Danny Meyer

I’ve worked with franchises & multi-unit business owners who obsess over replicating the customer experience, but none have the focus Danny does on the most important ingredient: hospitality

5 takeaways 👇
1. It’s human nature for people to take precisely as much interest in you as you are taking in them

This is @dhmeyer's starting point for hospitality (and business).

By showing an interest in your customer, you can give them a sense of belonging.
Example:

If you own a coffee business and have repeat customers each morning, take stock of what their go-to order is.

The moment you look them in the eye and say “do you want the usual?”, you've made them feel like they belong.

(Taking interest ➡️ sense of belonging)
2. How to Scale Hospitality

Great franchise businesses like McDonald's figured out how to scale flavor -the french fries will taste the same from coast to coast and country to country

But the way you are made to feel at each individual McDonald's is going to be vastly different
Scaling the human feeling of belonging was never part of Ray Kroc’s calculus, but it's been Danny's goal with Shake Shack from Day 1.

How?

By making 80% of every Shake Shack the same, and leaving the remaining 20% to be customized based on the community it's located in.
Ex: The New Haven Shake Shack

Given the close proximity to Yale, they've infused the community's culture into the location via:

• Special menu items named after the mascot

• Using recycled bleacher seats from the original Yale Bowl to build the walls

• Non-Profits..👇
Each Shake Shack picks 1 menu item and gives a % of the proceeds of that item to a local non-profit. The non-profit of choice is different at every Shake Shack.

By infusing the community's culture, Shake Shack is avoiding being a cookie cutter transactional business.
Personal aside: from my experience, most multi-unit business owners and franchises are so focused on each location being EXACTLY the same (from the materials being used in the counters to the way the sign looks outside) that they'd NEVER consider using Danny's 80/20 rule
3. Hiring For Great Hospitality

Hospitality can't be accomplished by 1 person, you have to build a team around the mission.

Danny looks for 6 emotional skills in his hires: Optimism, Intellectual Curiosity, Work Ethic, Empathy, Self Awareness, & a high degree of Integrity
Whether you're a good chef or dish washer, if you also contain the 6 emotional skills, you're considered to have a high HQ (hospitality quotient)

High HQs result in employees who make others feel better while they're doing their job, thus contributing to the sense of belonging
4. Own Your Mistakes

Rather than create an environment that fears making mistakes, Danny's approach is to accept that they will happen, and employ the 5 A's:

be Aware you made it, Acknowledge it, Apologize for it, Act to fix it, Apply additional generosity
It blows people away when you do those 5 things with customers - and you can actually end up in a better place with them than before the mistake was made.

Don’t be so afraid of a customers response that you don't use the 5 A's!
5. Striving for Essentiality in Business

There’s many examples of essential things in the world - books, art, music, etc.

If you couldn't listen to your favorite songs ever again, you'd likely miss them and feel sad. That means they've achieved essentiality in your life.
"To have an enduring business that’s built to last, it needs to become essential in the lives of people - it needs to be the kind of business that makes your life better because it exists"

If your business disappeared and no one would miss it, you haven't achieved essentiality.
If you like learning about multi-unit business ownership and/or franchises, give me a follow @franchisewolf

I'll be dropping more threads in the next few weeks!
I also send a weekly newsletter on up & coming franchises that could be good ownership opportunities.

It's read by aspiring owners and current owners of brands like Jersey Mike's, Wing Stop, Club Pilates, and more. You can sign up below 👇

franchisebreakdowns.com
TL;DR

• People take as much interest in you as you take in them
• You can scale hospitality via the 80/20 rule
• Hire for hospitality via the 6 emotional skills
• Create a culture that embraces mistakes
• Strive for essentiality in your business
Full podcast episode between @patrick_oshag & @dhmeyer here, highly reccomend!
podcasts.apple.com/us/podcast/dan…

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