Iâd managed 95 percent of my budget aggressively, leveraging MoMAâs brand to get excellent gelato at a steep discount, and the beautiful cart for free. Iâd earned the right to splurge on those spoons, the one small detail I believed would dramatically transform the experience of getting an ice cream at the cart. This is what I would later call the Rule of 95/5: Manage 95 percent of your business down to the penny; spend the last 5 percent âfoolishly.â It sounds irresponsible; in fact, itâs anything but. Because that last 5 percent has an outsize impact on the guest experience, itâs some of the smartest money youâll ever spend.
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It was thrilling to see what was possible. One afternoon, Hani flagged one of my reportsâheâd noticed that food costs at a particular restaurant were way up, and for the second month in a row. He pulled another of my reports from the pile; the restaurant was selling a lot of lobster. Yet another report: lobster prices had skyrocketed. A quick call to Ken to confirm: yupâdemand had outpaced supply, and prices had gone through the roof. A call to the chef: Were we undercharging for the dish? Definitely, given what we were paying for the ingredient, but he couldnât raise the price high enough to get costs in line without sticker-shocking our guests. So the path forward was clear: the dish, popular as it was, had to come off the menu, at least until lobster prices dropped. Luckily, the chef had been playing with a scallop dish he could replace it with. Meanwhile, in our office: âWill! Figure out who else in the company is selling lobster.â Another series of phone calls. . . . Lobster season at Restaurant Associates was over.
In a restaurant-smart company, that phone call most likely would never have happened. And if the controller did happen to catch the mistake (if the company had a controller at all!) and reached out to the chef, theyâd likely be told to stay in their lane. But overhearing that phone call taught me that someone in corporate wielding that kind of control isnât always unwelcome. The chefâs bonus was tied to his food costs, and if his numbers were consistently below par, heâd be out of a job. That explained the relief Iâd heard in his voice when Hani told him where heâd been bleeding. Our back-office efficiency meant that guy didnât have to worry about the numbers and could go back to being a chef. We werenât stealing his creativity; we were returning him to it.
The museum cafĂ©s, meanwhile, were the redheaded stepchildren of USHG, and I loved it. We were flying under the radar and had lots of creative freedom as a result. I immediately set out to implement my vision: to make the cafĂ©s at MoMA corporate-smart and restaurant-smart. But what I discovered almost immediately is that walking that line is really, really hard. Every decision I made seemed to expose the natural tensions between improving the quality of the experience the guests were having and doing what was best for the business. Restaurant-smart meant leading with trustâincluding allowing the people who worked for me to do what they felt was best for the guests. Corporate-smart meant running a tight ship. Which was right?
Every manager lives with the fantasy that their team can read their mind. But in reality, you have to make your expectations clear. And your team canât be excellent if youâre not holding them accountable to the standards youâve set. You normalize these corrections by making them swiftly, whenever theyâre needed.
And make those corrections in private. I can still feel the flush of shame and horror that crept up from my collar when I was screamed at in the dining room by the chef de cuisine at Spago; Iâll remember it for the rest of my life. And while it was a terrible experience, it was also a privileged peek at a mistake I never wanted to make.
Correct an employee in front of their colleagues, and theyâll never forgive you. In fact, the wall of shame that goes up may mean they canât even absorb what youâre telling them. Issue the same correction in private, though, and itâs a different exchange.
Not every guest wanted a history lesson during their dinner. Many were charmed and wanted to engage with us. But some people were there to talk to their companions or to eat; they wanted us to drop off their food and leave them alone. I had stripped the team of their authority to read the table and deliver an appropriate level of detailâto tailor the service experience to the guest. In my pursuit of a sense of place, Iâd actually made the meal less hospitable.
Worse, it was essentially the same mistake Iâd made the year before, when Iâd hesitated to promote a general manager. Once again, the guy known for talking about how much he trusted his team had acted as if he didnât trust them at all.
In truth, Iâm not surprised I made this mistakeâand Iâm almost certain Iâll make it again in the future. My compulsive attention to detail is one of my superpowers; itâs how I take aim at perfection. But that tendency also means Iâm always walking a tightrope between my desire to guarantee excellence by controlling everything and knowing I want to create an environment of empowerment and collaboration and trust among the people who work for me. Like excellence and hospitality, these two qualitiesâcontrol and trustâare not friends.