By late 2016, the Wells Fargo account fraud scandal, whereby millions of fraudulent accounts were opened using customers’ names, was making headlines across the globe. Just one year prior, the Wells Fargo Annual Report listed “ethics, integrity and doing what’s right for the customer” as examples of their company values.
In a recent webinar presented by MIT Sloan and QUT Business School, senior lecturer Donald Sull had this to say:
“At least anecdotally, we see that the fact that you espouse these aspirational values doesn't ensure that you have a healthy corporate culture. Culture works as an intermediary that translates purpose into day-to-day behaviors that have very significant influences on employees’ experience, but also performance and corporate reputation.”
As we begin to consider the impact of the Great Resignation and rebuild our bars & restaurants with a focus on helping our team members to find purpose in their work, we should avoid the pitfalls of the following myths with regards to our fragile, yet increasingly crucial, company culture.
Myth #1: Culture Does Not Affect the Bottom Line.
While it may be easy to assume that the only real benefit to a strong company culture would be employee engagement, there are many other factors that must be considered, almost all of which directly affect the organization’s profitability.
A 2017 article published in Forbes Magazine outlined eight ways a company culture affects the bottom line. Some top examples included lower absenteeism, less costly turnover, more efficient management, company reputation, and commitments to improvement, all of which have a positive impact on profitability.
In fact, when analyzing the ecosystem of an organization, the quality of the culture can be the single biggest determining factor of the overall success of the team, given that every system of operation, growth, and strategic planning depends on those who manage those systems. The health of the culture will ultimately dictate how efficient and effective those systems become.
Myth #2: All Talk and No Walk is OK with Regard to Core Values.
It may not be immediately apparent to see how a company can become as misguided as Wells Fargo had when their core values had been shared so openly, yet this is one of the most common issues I see when working with organizations across a broad spectrum of concepts. In fact, many bars and restaurants have well documented cultural values but so few take the opportunity to truly assimilate those values into daily actions that can be felt by team members and guests on a consistent basis. In other words, they talk the talk, but rarely walk the walk.
In order to truly commit to a purpose-driven culture, one that actually fulfills the promises made by the documented mission and vision for the company, we as restaurant and bar owners must drive the conversations around them and show examples of how our teams should execute those values each and every day. Anything short of this will amount to a dis-service to those we profess to serve.
Myth #3: Money Will Cure a Toxic Culture.
While a healthy paycheck is certainly a driver in attracting and retaining talent, studies have found that it falls farther down on the list of factors that team members cite as reasons to continue investing their career in a particular company. According to a 2017 research study by Glassdoor, while a compensation package can certainly become a dis-satisfier if not appropriately aligned, overall team member satisfaction and engagement is more dependent on three key factors:
1. The culture and values of the organization
2. Quality of senior leadership
3. Professional growth opportunities
In other words, a paycheck can help get someone in the door, but research shows that keeping them long term is far less likely without some significant investment in the cultural aspects of the organization.
The Bottom Line
Company culture can be seen as the lifeblood of the success and growth of our businesses. It is not enough to simply state the values that we represent. They must be regularly communicated, trained, and expected in order to have a real impact on our team members and, ultimately, our guests. Doing so will not only ensure happier, more efficient teams who stay long term, it will most certainly translate into increased profitability and financial growth. Who wouldn’t want that?
Greg Provance is the owner of GP Hospitality Partners LLC, a full-service restaurant and hospitality consulting firm, and the author of Butts in Seats: How to Create Raving Fans Who Come Back Again and Again. In addition to being a consulting partner for Everbowl, Southern California’s fastest growing fast casual chain, Provance owns several restaurants in the San Diego area and serves as a principal consultant and advisor for restaurants across the country. His career has taken him from short-order cook to hosting parties and events for celebrities like Janet Jackson, Madonna, Tom Cruise, Eve, Stevie Wonder and DL Hughley, to name a select few. He’s served food and beverages in atmospheres that range from dive bars to the Oscars, from Suffolk, Virginia, to Beverly Hills, and pretty much everything in between. He lives in San Marcos, Calif. with his wife, two strapping young lads and a cat. And he’s committed his career to serving the bar and restaurant community and businesses of San Diego and beyond. Visit GPHospitalityPartners.com to learn more.
Plan to Attend or Participate in Bar & Restaurant Expo, March 27-29, 2023
To learn about the latest trends, issues and hot topics, and to experience and taste the best products within the bar, restaurant and hospitality industry, plan to attend Bar & Restaurant Expo, March 27-29, 2023 in Las Vegas. Visit BarandRestaurantExpo.com.
To book your sponsorship or exhibit space at Bar & Restaurant Expo, contact:
Veronica Gonnello(for companies A to G) e: [email protected] p: 212-895-8244
Tim Schultz(for companies H to Q) e: [email protected] p: 917-258-8589
Fadi Alsayegh(for companies R to Z) e: [email protected] p: 917-258-5174
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