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Capital Allocators

Will Guidara – Unreasonable Hospitality (EP.492)

57 min episode · 2 min read
·
Will Guidara

Episode

57 min

Read time

2 min

Topics

Productivity, Personal Finance, Relationships

AI-Generated Summary

Key Takeaways

  • The 95/5 Rule: Manage 95% of expenses with extreme frugality to earn the right to spend the remaining 5% on relationship-building gestures. This 5% generates disproportionate loyalty returns — a bottle of cognac with the check costs little but becomes the only thing diners remember, outlasting memories of the food itself.
  • Map 130 Touch Points: Run a full "interrogation of the customer journey," documenting every single interaction a customer has with your business. Eleven Madison Park identified roughly 130 touch points, then elevated overlooked ones — like coat retrieval and bill delivery — that competitors ignored because they focused only on the most obvious moments.
  • One Size Fits Some: Beyond universal and personalized gestures, identify recurring moments that happen for some customers — a delayed flight, a pet's death, a child's excitement — and pre-build responses with resources ready. Chewy sends flowers when a customer's dog dies, cancels the subscription, and credits the last order automatically, creating near-permanent loyalty.
  • The Dreamweaver Position: Add one team member with zero operational responsibility whose sole job is resourcing and enabling colleagues to execute hospitality gestures in real time. This dedicated role, now replicated in car dealerships, hospitals, and NFL teams, removes the common failure of leaders announcing hospitality initiatives while providing no budget or support to execute them.
  • Systemize Graciousness to Build Culture: Scripted hospitality protocols — like a Park City hotel handing late-arriving guests their room key without requiring check-in — train staff who aren't naturally hospitable. Repeated exposure to guests' genuine appreciation converts compliance into intrinsic motivation, spreading hospitality behavior organically across the entire team without requiring individual personality changes.

What It Covers

Will Guidara, co-owner of Eleven Madison Park when it ranked number one in the world, explains how businesses can systematize exceptional customer experiences through "unreasonable hospitality" — investing equal energy into how people feel as into the product itself, across industries from restaurants to financial services.

Key Questions Answered

  • The 95/5 Rule: Manage 95% of expenses with extreme frugality to earn the right to spend the remaining 5% on relationship-building gestures. This 5% generates disproportionate loyalty returns — a bottle of cognac with the check costs little but becomes the only thing diners remember, outlasting memories of the food itself.
  • Map 130 Touch Points: Run a full "interrogation of the customer journey," documenting every single interaction a customer has with your business. Eleven Madison Park identified roughly 130 touch points, then elevated overlooked ones — like coat retrieval and bill delivery — that competitors ignored because they focused only on the most obvious moments.
  • One Size Fits Some: Beyond universal and personalized gestures, identify recurring moments that happen for some customers — a delayed flight, a pet's death, a child's excitement — and pre-build responses with resources ready. Chewy sends flowers when a customer's dog dies, cancels the subscription, and credits the last order automatically, creating near-permanent loyalty.
  • The Dreamweaver Position: Add one team member with zero operational responsibility whose sole job is resourcing and enabling colleagues to execute hospitality gestures in real time. This dedicated role, now replicated in car dealerships, hospitals, and NFL teams, removes the common failure of leaders announcing hospitality initiatives while providing no budget or support to execute them.
  • Systemize Graciousness to Build Culture: Scripted hospitality protocols — like a Park City hotel handing late-arriving guests their room key without requiring check-in — train staff who aren't naturally hospitable. Repeated exposure to guests' genuine appreciation converts compliance into intrinsic motivation, spreading hospitality behavior organically across the entire team without requiring individual personality changes.

Notable Moment

A UPS store owner transformed his entire team culture by requiring each register employee to comp one customer purchase daily, up to $30. The rule shifted employees from passive transaction processors to active observers of every customer's emotional state — and elevated every customer's experience, not just the one who received the free transaction.

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Episode Transcript

So many companies, regardless of how successful they are, reserve their best efforts only to invest in the thing that they sell. Don't invest that same amount of energy into how they make people feel, which to me feels counterintuitive. These companies, they are unreasonable in pursuit of bringing the most fully realized version of the product or service to life. They are relentless. They're willing to do whatever it takes to make that thing as close to perfect as possible. Unreasonable hospitality is just willing to do the same when it comes to people. If it is the stickiest thing you can do in giving people a lasting impression of you, then why not give all of yourself to doing it well? I'm Ted Sides, and this is Capital Allocators. My guest on today's show is Will Gudera, the author of Unreasonable Hospitality and the soon to release Unreasonable Hospitality, The Field Guide. Unreasonable Hospitality has become a New York Times bestseller and a business bible for elevating customer experiences. Will was co owner of Eleven Madison Park alongside Danny Meyer when the restaurant ascended to number one in the world, the co producer of Emmy award winning streaming series The Bear, host of the welcome conference, and advisor to business leaders ranging from professional sports to financial services on the delivery of hospitality as a primary business strategy. Our conversation explores the operating principles of unreasonable hospitality across the identification and enhancement of customer experiences. Will describes operationalizing exceptional service, finding magic in repeated touch points, building teams that embrace hospitality, and leading others through vulnerability. Once in a while, I get a chance to share a conversation outside of managers and allocators designed to help you level up your performance and business. From the day I met Will several years ago, I knew he could do just that from his valuable insights and colorful stories. Before we get going, I recently returned from a week's ski vacation to Switzerland with my son, Eric. The same son who shared his serendipitous encounter with the podcast last week. Snow conditions have been challenging almost everywhere this season, but we were excited to travel to Europe for the first time to ski. Our trip there and back was full on trains, planes, and automobiles. We got a taste of the beauty, food, and culture that everyone raves about in Vermont. As for skiing, between snow conditions we're accustomed to in Vermont, and a whiteout blizzard our last two days, we only got two full days of skiing. But we certainly left the mountain better off than we found it for skiers the next week. It would be safe to question my sanity for making the long trip to ski only two days, but the truth is the number of full weeks I have left one on one with my 16 year old son are numbered. So, I took in every moment, even when our plans for an active week were …

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  • Unreasonable HospitalityRecommendedBy guest

    by Will Guidara

    Will Guidara, co-owner of Eleven Madison Park when it ranked number one in the world, explains how businesses can systematize exceptional customer experiences through "unreasonable hospitality"

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