Summary
Overview
Danny Meyer, legendary restaurateur and founder of Union Square Hospitality Group, shares insights on building enduring culture, scaling hospitality businesses, and navigating challenges. The episode features three entrepreneurs seeking advice: Janelle Bass from Ponyboy Slings (bourbon-based canned cocktails), Jade Taylor from Angel Oak Smokehouse (premium smoked salmon), and Barb Ruhis from Booskus (high-protein, high-fiber couscous). Meyer discusses transitioning to executive chairman, the evolution from family values to expected behaviors, and the importance of maintaining hope through business cycles.
Transition to Executive Chairman
Meyer explains his 2022 transition from CEO to executive chairman, which many mistakenly thought was retirement. The role allows him to focus on areas aligned with his unique gifts: company culture, culinary product, and creative outlets for new businesses. Rather than making trains run on time, he now spends more time on fewer things that leverage his strengths. This shift represents strategic succession planning that keeps founders engaged while empowering operational leadership.
- Meyer stepped up (not down) to executive chairman in 2022, a term he had never heard of before
- The role focuses on culture, culinary product, and creative outlets for new businesses rather than operations
- He comes to work every day but spends more time on fewer things that align with his unique gifts
Building Culture Through Expected Behaviors
Danny Meyer explains his evolution from thinking about culture as 'family values' to defining it through 'expected behaviors.' He emphasizes that businesses aren't families, and this shift allowed for better accountability. Culture is defined as how organizations do things, with the equation being wanted behaviors celebrated minus unwanted behaviors tolerated. This framework creates clarity for teams about what's expected and makes culture more actionable than abstract values.
- Culture is 'how we do things around here' - a common set of behaviors everyone understands they're responsible for emanating
- Businesses are not families, and calling values 'family values' was disingenuous because you don't fire family members
- The culture equation: wanted behaviors celebrated minus unwanted behaviors tolerated
" I noticed that every time we held someone accountable to the point that there just wasn't going to be a place for them on our team going forward, people would go into deep grief because you don't fire a family member. "
" Our culture is ultimately all of the wanted behaviors that we celebrate actively minus all of the unwanted behaviors that we tolerate. "
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