- IHOP steps up its employee training
with standards to rival The Ritz.
By Alain J Roy
STAY AT THE RITZ, EAT AT IHOP and you might be hard-pressed
to find a difference in the quality of employee-customer
interaction. Are IHOP employees any less sincere, efficient,
friendly or even stylish than their peers at The Ritz-Carlton?
While you are evaluating this idea, see if you can find out
what their customers have in common.
Although it’s unlikely that IHOP and The Ritz-Carlton are competing for
the same customer, IHOP has taken huge strides by engaging in a serious commitment
toward its employee selection, recruitment and training practices. Akin to
The Ritz-Carlton, IHOP has come to recognize the economic value of listening
to its customers by way of superb employee-customer relations.
With its simple slogan: “Come hungry. Leave happy,” IHOP takes
pride in its now well-established reputation for superior and friendly working
environments. The company demonstrably adheres to its personnel obligation
and offers true leaders (“IHOP Super Performers”) a chance to prove
their abilities and cook up a truly tasty future. Although much has changed
over the last 45 years that IHOP has been a family favorite, its latest improvement
can be attributed in great part to an unfaltering commitment to the recruitment
of enthusiastic and committed individuals, supported by customer satisfaction-oriented
training practices and tremendous advancement potential.
As IHOP redefines its reputation to headline its friendly and engaging personnel,
it may, in turn, attract The Ritz-Carlton’s most discriminating customers.
The Ritz-Carlton—one of the most revered luxury hotel names in the world
and legendary for its superb customer service—treats its guests and employees
with respect and dignity. Its motto: “We are ladies and gentlemen serving
ladies and gentlemen.” Analogous (in all due respect) to the IHOP employee-customer
interaction values, the personnel selection and training principles are evidently
based on trust, honesty, respect, integrity and commitment. In the end, of
course, this serves to nurture and maximize talent to the benefit of each individual
and customer, and ultimately, the company.
Take time to read The Ritz-Carlton’s “Business Excellence Roadmap,” and
you will find its marvelous credo, which stipulates: “The Ritz-Carlton
Hotel is a place where the genuine care and comfort of our guests is our highest
mission. We pledge to provide the finest personal service and facilities for
our guests who will always enjoy a warm, relaxed, yet refined ambiance.” Well-stated
and well-executed to boot!
Now, take a look at IHOP’s Business Excellence Roadmap (or “New
Model,” as they put it). In 2002, IHOP established a comprehensive approach
to improving its operations. President and CEO Julia A. Stewart penned a vision
to become number one in family dining. To achieve this vision, she and her
team devised a comprehensive plan aimed at listening attentively to the input
from their guests and franchisees in order to improve operations, the quality
and variety of food, employee training practices and marketing methods. Through
this ongoing process, IHOP continues to be committed to excellence at every
level, and it shows!
In its 2002 Annual Report, IHOP states that it intends to move toward world-class
front-line employee training which will be benchmarked against some of the
best companies in the hospitality industry. The new message, “Come hungry.
Leave happy,” accurately identifies the experience guests have come to
expect during a visit to IHOP. This message is reinforced through all communications
and touch-points for guests and members of the IHOP family. It carries a strong
call to action, coupled with a promise to provide a great meal and an excellent
experience to each of its guests.
IHOP customers have begun to notice the transformation. Those “hungry” folks
are now “happy” to confirm that IHOP delivers a uniquely warm and
welcoming “home-away-from-home” experience, along with its tasty
stacks of pancakes. Once again, analogous to The Ritz-Carlton experience (minus
the pancakes)!
While stories about service-oriented organizations are synonymous with profit
and growth, there is a surprising absence of systematic research that links
superior employee-customer relations to growth and profitability. Observe some
of the most compelling evidence from a recent survey conducted by J.D. Power
and Kaznova Consultants comparing employee-customer satisfaction data between
The Ritz-Carlton and service industry norms. Some of the key drivers to employee
morale include: decision-making authority, constructive feedback, empowerment
and verbal recognition for a job well done. Naturally, the survey results favor
The Ritz-Carlton over industry norms ranging from 73 percent – 87 percent,
as opposed to only 28 percent – 55 percent. (Source: The Ritz-Carlton
Application Summary – further details available on their website.)
Still, this is not to suggest that IHOP and The Ritz-Carlton are performing
for the same audience. But the obvious conclusion shows that: 1) growth and
profit come from superior quality and service excellence, and 2) superior quality
and service excellence can ONLY be delivered by a superior organization flanked
by excellence-oriented employees.
It’s easy enough to understand, and yet so many inferior organizations
continue to be run by indifferent and mediocrity-oriented personnel. The good
news is that The Ritz-Carlton Hotel Company and the IHOP Corporation have both
identified that business can be profitable and that a significant number of
customers (with money to spend) are constantly looking for quality, friendliness
and superior service. One can almost assume that they both aim to please the
same customer…
To summarize, growth and profit come from superior quality and service excellence—a
concept that is not only easy to understand, but can be summarized in just
a few words: “If you offer a great product, service it surprising well
through sincere, pleasant and memorable employee-customer interactions, you
will find the practice of business to be very easy and extremely profitable.”
Side note from Alain J Roy:
The nature of my work provides numerous opportunities to visit hotels and restaurants
in many regions. This allows me the freedom to explore new places and I’ll
often drive out of my way to find a friendly accommodation at The Ritz-Carlton
Hotel or enjoy a fine dining experience at IHOP. Upon completion of this article,
I decided to drop by my local IHOP restaurant (Del Mar Heights #0835 in San
Diego, California) at the end of a long business day. The experience was fantastic!
Before I even reached the entrance, Kaelin (a hostess) noticed that a customer
was approaching. Just like a Ritz employee would do, she left her station to
greet me as I entered, actually opening the door for me and delivering a sincere
greeting with a smile. The next second, Erin (a server) rushed to meet us and
together they led me to my table in a friendly and professional manner. Then,
Monique (another “Super Performer”) appeared over Erin’s
shoulder with a radiant smile and a few welcoming words. The rest of the dining
experience was equally impressive. True to the IHOP motto, I came hungry and
left extremely happy! Thanks to Kaelin, Monique, Erin, CEO Julia A. Stewart,
and the entire IHOP team for reinforcing the observations presented in this
article!
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Mr. Alain J Roy has worked as an employee-customer relations consultant for
more than 20 years, helping business leaders to solve customer service, personnel
and operations problems. As a leader in the customer service field, Mr. Roy
has developed an effective approach which values the “intangibles” by
showing the true contributing factor between specific frontline personnel investments,
marketing expenditures and bottom-line results. In his upcoming book, The Employee
Accountability Factor, Mr. Roy redefines the all-important concept of face-to-face
employee-customer interaction.
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