Masters of Scale Rapid Response: Danny Meyer on the wrenching decision to do layoffs
Mar 24, 2020
Danny Meyer, a celebrated restaurateur and founder of Shake Shack, discusses his tough decision to lay off 2,000 employees from Union Square Hospitality Group. He shares the emotional and ethical dilemmas faced during this painful process, highlighting the importance of empathy and clear communication. Meyer also explores the innovative 'Lobatical' concept for employee appreciation, the need for robust government support to stabilize the workforce, and personal reflections on resilience and community within the hospitality industry.
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Early Restaurant Closures
- Danny Meyer describes the difficult decision to close restaurants due to employee flu-like symptoms.
- This decision prioritized employee and guest safety, even though tests came back negative.
Layoff Paradox
- Layoffs presented a paradox: prioritizing employees meant letting them go.
- This protected both employee health and the long-term viability of the company.
Effective Decision-Making
- Enter meetings with a strong point of view but remain open to other perspectives.
- Surround yourself with smart people and foster curiosity and external information gathering.