| As we gear up for summer--and a well-deserved | | | | If you're a high-performing employee, which type |
| vacation--let's compare running a restaurant to | | | | of manager would you prefer? Just like the |
| managing an airline. | | | | frequent flier, you'd like to work for someone |
| Manage like the airlines? And what, lose a ton of | | | | who treats the top performers better. After all, |
| money? The analogy seems odd, but once you | | | | you do more of the work. |
| get past the initial shock, it should make more | | | | Guests feel the same way. If you're a regular, |
| sense. There are two different philosophies about | | | | you want to be rewarded for it--and if you get |
| running airlines these days: status treatment, | | | | treated better, you keep returning. Many people |
| where the more you fly, the better you're | | | | go out of their way to remain loyal to a brand in |
| treated; and treating everyone the same. | | | | return for flier miles or points. (I've received all |
| Let's look at the two and how you can apply it to | | | | kinds of free golf and ski items just for renting |
| building guest and employee loyalty. | | | | from one car company.) Create a loyalty-building |
| Status Treatment | | | | system for guests and employees. It rewards |
| Fly more frequently--thus spending more | | | | performance. |
| money--and you receive additional perks. Many | | | | On the other hand, if as an employee you're an |
| tangible rewards are provided: better choice of | | | | "infrequent performer," you'd prefer the manager |
| seats, more bonus miles, special lines for check-in | | | | who treats everyone the same. Being a frequent |
| and security, ability to upgrade, and so on. | | | | guest or performer in this situation nets you |
| Additionally, there are the intangible perks like | | | | nothing but being another order to process or |
| more favorable treatment when boarding, bending | | | | paycheck to hand out. This restaurant is just |
| the rules to keep you happy, and being placed on | | | | another place to eat or work. |
| the top of the standby list for an earlier flight. | | | | Provide rewards and incentives for your top |
| Who prefers this kind of treatment? The | | | | performers and frequent guests. Incentivize |
| frequent flier of course! There is a direct | | | | employees who are selling better than others, |
| relationship between the production they | | | | putting out great product with minimal waste on |
| provide--and the money they spend--and the | | | | the line, or providing great service over the |
| treatment they receive. Does this system anger | | | | phone, at the drive-thru, or for delivery--it will |
| some folks? Yes, but they're the infrequent, | | | | drive your business and keep your good |
| non-producing fliers who spend little money with | | | | employee with you. |
| the airline. | | | | Treating regular guests in the same manner will |
| Everyone's The Same | | | | create brand loyalty and drive sales. |
| The other school of thought is to treat everyone | | | | Does it tick off some employees or guests? Yes, |
| the same. No special perks or favors for the | | | | but it's the ones who don't produce results for |
| frequent traveler--just equal treatment. | | | | you. |
| Who prefers this treatment? Typically, it's the | | | | If you manage all your guests and all your |
| infrequent flier who has plenty of time to get to | | | | employees the same, you'll lose the |
| the airport early and get a better seat. There's no | | | | top-performing employees and guests to your |
| correlation between performance (that is, | | | | competitors since they're not valued for their |
| spending money with the airline) and benefit. The | | | | efforts or for the business they give you. Worst |
| reward goes to those who arrive the earliest. | | | | of all, these top-producing guests and employees |
| Who gets angered standing in long lines and | | | | might become loyal to your competition. |
| getting a crummy seat? The frequent | | | | Be fair! Provide the best for the best and let the |
| producer--who is costly to lose. | | | | non-producers go work for your competitor. Not |
| It's true that Southwest Airlines, which is known | | | | only will your performance and results improve by |
| for its service (and financial performance), treats | | | | losing those folks, but maybe they'll make you |
| everyone the same. But this analogy is not about | | | | look even better when they go work for the |
| the service on the planes; it's about the approach | | | | competitor and still don't perform. |
| towards their performers. Airlines have plenty of | | | | Enjoy the vacation. |
| cost issues forcing them to lose money. | | | | This column originally appeared in the April 2003 |
| Let's see how this applies to the restaurant | | | | issue of QSR. Subscribe and get QSR delivered to |
| business. | | | | your door twelve times per year. |