Cost of Arrogance
Industry leaders with an overblown sense of entitlement will miss the opportunity to learn how to maintain and even build business during tough times.
By Mary Boltz Chapman, Editor-in-Chief -- Chain Leader, 1/1/2009
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Is there a switch that goes off in the heads of those who become wealthy, powerful or famous? Something in his brain told Blagojevich that he was above the rules and deserved the power and benefits that politics could bring.
And he's not unique. Many politicians and businesspeople have admitted to legal and ethical violations such as using official resources for personal reasons, having affairs with people who report to them, or hiring someone based on reasons other than their work skills.
Some of Our Own
We have examples of all these things in the restaurant industry, unfortunately. Some of them are well-known due to national media coverage and others are just the topic of gossip.
There are even more examples of industry leaders who may not be technically committing any violations but still have an overblown sense of entitlement. My mother would say they are too big for their britches.
Like the chain executive who said his suppliers would have to reduce prices, or he'd just go find other suppliers. And the executives who say, there's nothing wrong with my concept—all our problems are based on the economic environment, and we don't need to change.
With the high costs of business, we can't afford that kind of arrogance.
Invisible Cost-CuttingThis issue is devoted to the ways operators are making cuts wherever they can, except where it might hurt the customer. On the menu, they're promoting smaller portions and getting creative with ingredients already used. In design, luxurious finishes within guests' reach balance less expensive elements away from sight lines. To save on purchases, they're analyzing not only what customers buy, but what they themselves throw away. And they are asking for help from landlords, consultants and new owners.
Humility is not the opposite of confidence. It does not mean belittling yourself or being humiliated. It means being free from pride and self-assertion, putting yourself in a state to improve.
The executives and companies that are going to come out of this recession will be the ones willing to look in the mirror; challenge their assumptions; and focus on the customer, the brand's integrity and its core values.
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