Sports

lessons from heaven

As we prepare for summer, and a well-deserved vacation, let’s compare running a restaurant to running an airline.

Manage like the airlines? So what, lose a lot of money? The analogy seems strange, but once you get over the initial shock, it should make more sense. There are two different philosophies about how airlines operate these days: status treatment, where the more you fly, the better you get treated; and treating everyone equally.

Let’s look at both and how you can apply them to build guest and employee loyalty.

status treatment

Fly more often, thus spending more money, and you will receive additional benefits. Many tangible rewards are provided: better seat choice, more bonus miles, special lines for check-in and security, ability to upgrade, etc. Plus, there are intangible benefits like more favorable treatment when boarding, breaking the rules to keep you happy, and being placed at the top of the standby list for an earlier flight.

Who prefers this type of treatment? The frequent flyer, of course! There is a direct relationship between the production they provide -and the money they spend- and the treatment they receive. Does this system make some people angry? Yes, but they are the infrequent travelers who do not produce and spend little money with the airline.

all are equal

The other school of thought is to treat everyone equally. There are no benefits or special favors for the frequent flyer, just equal treatment.

Who prefers this treatment? Usually, it’s the infrequent traveler who has plenty of time to get to the airport early and get a better seat. There is no correlation between performance (ie spending money with the airline) and profit. The reward is for those who arrive before. Who gets mad standing in long lines and gets a seedy seat? The frequent producer, who is hard to lose.

It’s true that Southwest Airlines, which is known for its service (and financial performance), treats everyone the same. But this analogy is not about service on planes; it’s about the approach to their performers. Airlines have many cost problems that force them to lose money.

Let’s see how this applies to the restaurant business.

If you are a high-performing employee, what type of manager would you prefer? Like the frequent traveler, you would like to work for someone who treats the best better. After all, you do more of the work.

The guests feel the same. If you’re a regular customer, you’ll want to be rewarded, and if you’re treated better, you’ll keep coming back. Many people strive to remain loyal to a brand in exchange for flyer miles or points. (I received all kinds of free golf and ski gear just for renting from a car company.) Create a loyalty system for guests and employees. Reward performance.

On the other hand, if as an employee you are an “infrequent worker”, you would prefer the manager who treats everyone equally. Being a frequent guest or entertainer in this situation gets you nothing more than being another order to process or a paycheck to dish out. This restaurant is just another place to eat or work.

Provide rewards and incentives for your best employees and frequent guests. Incentivize employees who are outselling others, putting out a great product with minimal waste on the line, or providing excellent service over the phone, at drive-thru, or for delivery – you’ll boost your business and keep your good employee with you. .

Treating repeat guests the same way will build brand loyalty and drive sales.

Disturbing some employees or guests? Yes, but they are the ones that do not produce results.

If you manage all of your guests and all of your employees the same way, you will lose your top performing employees and guests to your competitors because they are not valued for their efforts or the business they bring you. Worst of all, these higher-producing guests and employees could become loyal to your competition.

Be fair! Provide the best for the best and let the non-producers work for your competitor. Not only will they improve your performance and bottom line by losing those people, but they may make you look even better when they work for the competition and still don’t perform.

Enjoy holidays.

This column originally appeared in the April 2003 issue of QSR. Subscribe and get QSR delivered to your door twelve times a year.