The 10 Commandments of Hospitality Business Success

Running a successful hospitality business like a restaurant, bar, or hotel is challenging. With long hours, tight margins, and plenty of competition, it’s easy to get overwhelmed. As someone who’s been in the hospitality industry for over 25 years and has owned several businesses, I’ve learned a few golden rules. Consider these ten commandments the keys to hospitality business achievement.

1. Whoever Has the Gold Makes the Rules

The first commandment of the hospitality industry is “whoever has the gold makes the rules.” What does this mean? Quite simply, the customer is king. Their satisfaction and loyalty are the lifeblood of any hospitality business. Make customer service job one through:

• Swiftly addressing complaints and doing whatever it takes to make it right
• Training staff to provide fast, friendly and attentive service
• Gathering customer feedback regularly and acting on it
• Offering promotions, loyalty programs and discounts to delight patrons

By keeping customers happy and returning for more, you’ll secure the revenue needed to thrive. Never take your regulars for granted.

2. Word-of-mouth is the Best Publicity

The second commandment is leveraging word-of-mouth. In the hospitality industry, a stellar reputation is not just everything, it’s the currency of success. According to surveys, 92% of consumers trust recommendations from family and friends over any other form of marketing. This means that every satisfied customer can become a powerful advocate for your business.

To generate positive word-of-mouth:

• Deliver such fantastic service that people can’t help but rave about you
• Engage customers in person and build personal relationships
• Incentivise customers to refer friends and family through referral reward programs
• Respond promptly to online reviews and feedback mentions

Word-of-mouth is free and powerful. Keep excelling, and let your customers do the marketing for you.

3. Variety is the Spice of Life

The third commandment is “Variety is the spice of life.” Customers crave novelty. Shake up your menu, decor, events and offerings regularly to pique interest. Surprise patrons by:

• Running weekly or monthly specials and promotions
• Introducing seasonal menu items and themed events
• Giving your space a fresh coat of paint and hanging new art
• Partnering with local vendors and cross-promoting

Make change fun rather than disruptive. A dash of variety will keep guests engaged and coming back to see what’s new.

4. Nobody is Bigger Than the Bar

An essential commandment for restaurant and bar owners is that nobody is more significant than the business. Customers will always test your patience, but remaining calm and killing them with kindness is critical. Some tips:

• Politely stand your ground on policies like dress code and closing time
• Don’t be afraid to fire abusive customers – they often drive other patrons away
• Empower staff to diffuse tensions and evict unruly guests
• Never sink to a disruptive customer’s level or lose your cool

The bar will outlive any single patron. Stay classy and consistent.

5. Minimum Viable Product, Always Improving

Fifth, the hospitality commandments should adopt a “minimum viable product” mentality focused on continuous improvement. Don’t wait until you offer the perfect experience—get an essential hospitality business up and running quickly. Then, tweak, refine, and add to it over time.

• Start lean without overinvesting upfront in space, staff and offerings
• Continuously gather customer feedback to guide your changes
• Make minor iterative upgrades weekly and central changes quarterly
• Celebrate wins and milestones with staff as you evolve

By taking an agile approach, you can delight customers and stay ahead of shifting trends.

6. Consistency is Everything

Consistency is the sixth hospitality commandment. Customers value predictability. They want to know what to expect each time they walk through your doors regarding service, quality, pricing and atmosphere. Strive to maintain consistency by:

• Having well-defined systems, policies and procedures
• Hiring for culture fit and training staff thoroughly
• Tracking metrics like food waste and customer wait times
• Monitoring online reviews to address anomalies quickly

Don’t let standards slide. Deliver the same excellent experience during every service to build trust.

7. Pay Attention to What’s Coming Along

The seventh commandment in the dynamic hospitality industry is staying on top of emerging trends. Pay attention to shifting consumer preferences, new technology, and what competitors are doing by:

• Reading hospitality publications and blogs
• Attending industry conferences and events
• Following hospitality leaders on social media
• Networking with other local business owners

Move quickly to capitalise on rising trends while fresh and before the competition catches on.

8. Keep Licenses and Insurance Up to Date

The eighth hospitality commandment is mundane but essential: keep your licenses, permits, insurance and other paperwork in order. Stay on the right side of regulations by:

• Marking renewal and payment deadlines on your calendar
• Designating someone to stay on top of compliance paperwork
• Proactively filing required reports and undergoing inspections
• Investing in legal and accounting advice when needed

Don’t let lapsed licenses sink all your hard work. Keep the backend buttoned up.

9. Invest in the Team

Ninth in the commandments is investing in your people. Hire those aligned with your hospitality philosophy, pay fair wages, and help staff grow their skills. Boost retention by:

• Interviewing for culture fit as well as qualifications
• Cross-training employees and nurturing top performers
• Offering incentives like performance bonuses and benefits
• Promoting managers from within when possible

Satisfied team members provide better customer service. Care for your employees, and they will care for your patrons.

10. Keep Innovating and Learning

The final hospitality commandment is never to become complacent. Treat every day as a chance to improve through:

• Reading books and blogs about successful hospitality leaders
• Reaching out to mentors for advice when you need guidance
• Attending seminars and conferences to keep your skills sharp
• Networking and collaborating with other hospitality professionals

Stay hungry. You can continually expand your knowledge and elevate the guest experience.

The Hospitality Industry Commandments: Key Takeaways

The ten commandments outlined here are forged from decades of experience building and running restaurants, bars and other hospitality businesses. They are guiding principles to ingrain in your teams and implement daily.

To quickly recap, the commandments are:

1. The customer rules – satisfy them at all costs
2. Word-of-mouth is more valuable than formal marketing
3. Add variety and freshness to keep customers engaged
4. Never lose your cool with disruptive patrons
5. Adopt a minimum viable product mentality of continuous improvement
6. Deliver consistent quality and service every time
7. Stay on top of emerging consumer and industry trends
8. Don’t let licenses and insurance lapse
9. Invest in hiring, training and incentivising great teams
10. Never stop learning, innovating and pushing yourself

Post these rules prominently, repeat them at team huddles, and drill them into new hires. Your establishment will succeed with these hospitality commandments as your guide.

From now on, we will serve excellent experiences, wow patrons, and build buzz-filling seats. The customers are waiting.

Frequently Asked Questions

Q: What’s the most important commandment for success in hospitality?

A: The first commandment, “whoever has the gold makes the rules,” is critical. Making customer satisfaction and retention your top priority paves the path for hospitality success.

Q: How can you incentivise word-of-mouth marketing?

A: Tactics like referral rewards programs, exceptional service that inspires rave reviews, and personal outreach to build customer relationships will all help drive word-of-mouth.

Q: What are some varieties to introduce to keep hospitality businesses fresh?

A: Menu specials, themed events, staff uniforms, decor updates, cross-promotions with local vendors, and rearranged floor plans are some easy variety of ups.

Q: How can you maintain consistency in hospitality?

A: Well-defined systems, extensive staff training, regular monitoring of metrics, and quick responses to any dips in standards will help uphold a consistent customer experience.

Q: Why is investing in your hospitality team so important?

A: Satisfied employees provide better customer service. Hiring for fit, training, incentivising with bonuses, and promoting from within boosts retention and morale.