Masters of Scale Rapid Response: Danny Meyer on the wrenching decision to do layoffs
Dec 22, 2022
Danny Meyer, the visionary founder of Shake Shack and Union Square Hospitality Group, reflects on the tough decision to lay off 80% of his staff during the pandemic. He discusses the balance between employee welfare and business survival, sharing his 'Enlightened Hospitality' approach that prioritizes compassion even in crisis. The emotional impact of these layoffs and the establishment of an Employee Relief Fund illustrate the deep care for his team. Meyer also paints a hopeful picture for the future of the hospitality industry amid ongoing challenges.
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Early Restaurant Closures
- Danny Meyer closed restaurants preemptively due to employee symptoms, prioritizing safety.
- This action, though costly, reflected his people-first philosophy.
Layoffs as Chemotherapy
- Layoffs, while supporting long-term company health, directly contradict the people-first value.
- This painful dilemma is likened to chemotherapy, necessary for survival but detrimental in the short term.
Decision-Making Process
- Approach difficult decisions with a clear framework, but remain open to team input.
- Surround yourself with capable people, gather external information, and adapt as needed.