Customer Service Heroes: Morton's The Steakhouse
Categories: Corporate Culture | Customer Service | Competitive Advantage
Posted by
Paul Orfalea
at
3:29 AM
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On a recent visit to Washington, D.C., I called Morton's The Steakhouse to make a dinner reservation. "Oh yes," said the person who answered the phone, "Mr. Orfalea has dined with us before." My excellent customer service radar started to tingle. It's nice to be remembered.
When we arrived, restaurant manager Dan Festa greeted us. Dan personally welcomes all of his guests and lets everyone know that his job is to take care of us. Attentive service and excellent food rounded out my evening, and as a customer service enthusiast, I knew I had to learn more about Morton's company culture.
Morton's website (www.mortons.com) features frequent references to the company's apparent mantra: "We offer the best steak and hospitality anywhere." Talk is cheap, but as baseball legend Dizzy Dean once said, "It ain't braggin' if you can do it."
The cover of the company's 17-page Code of Ethics provides a clue to the power of Morton's culture. It says, in all capital letters, "FOR ALL BOARD MEMBERS, OFFICERS, MANAGERS, AND ALL OTHER EMPLOYEES." I suspect it's no mistake that the word "all" appears twice - the rules apply to everyone. Fairness empowers every coworker and builds a sense of democracy. In fact, justice and opportunity, two critical components of democracy, take center stage in Morton's corporate culture.
The Code of Ethics frames the company's approach to justice. Its commitment to opportunity is the first precept of the company's vision statement: "Attract, Value, Retain & Develop the best talent in the industry."
Roger Drake, the company's Chief Communications Officer, is just as attentive and helpful as Festa and his team at the DC restaurant. Drake sent me the vision statement and some additional thoughts on Morton's customer service ethos. He reasserted an important point: "Management focuses not only on hiring the best, but also in retaining the best."
Noting that the company has repeatedly won honors as a "great company to work for," Drake pointed out "every new member of Morton's management team attends Morton's University, taught by the Vice Presidents and Directors from our Restaurant Support Center." At Morton's University, new managers focus on the company's philosophy, its principles and standards of excellence.
Another important and innovative retention and development tool is called Sed de Saber, an English as a Second Language program designed to help more of Morton's employees climb the career ladder.
Here's something I really like: Chairman/CEO Thomas J. Baldwin and President Edie Adams each visit eight to ten restaurants each quarter to hold Quality Circle meetings with the hourly staff. Coworkers at every level of the company get an opportunity to talk with the top brass and get a voice in determining the future of the company.
The net result of this and other activity is that "63% of all current restaurant managers were previously hourly employees who were promoted into these positions. 100% of the General Manager positions and supervisory positions continue to be filled within the company." Also, Managers' workweeks are restricted to five days, which "gives them the opportunity for more balance in their lives and less chance for burnout."
Drake shared figures from 2006 that showed Morton's management turnover was just 15.64% when the industry average was 27%. Hourly employee turnover was only 28.76%, but the industry average was 107.48%. In a fast-paced service business, coworker tenure directly impacts the quality of each customer experience, so it's easy to see that Morton's culture of attracting, valuing, retaining and developing "the best talent in the industry" is the reason I was so impressed by Dan Festra and his team on Connecticut Avenue.
Comments
Kami Tolar wrote on 11/15/09 5:16 AM
I think it says a lot that Morton’s has such a low turnover rate. Hiring quality employees is quite a task, but being able to keep those quality employees is an even greater task. It sounds like Morton’s sees its employees as actual people with lives outside of their job at the restaurant. I think that when you treat your employees well, they want to work better and harder for you which results in fantastic customer service. It sounds like Morton’s takes care of its customers and its employees.
Curtis Suda wrote on 11/15/09 7:41 PM
I have never been to Morton's personally but understand the importance of quality customer service. When I walk into Nordstrom, I always appreciate the personal greeting and attentiveness I receive. Having worked in retail for three years, I learned that the smallest things count for a lot, from mini water bottles to setting up a fitting room in advance. I think that shopping and dining are experiences that should be enjoyed and that customers are willing to pay for; I think most of us can attest to that.
Yun Ah Rha wrote on 11/16/09 4:50 AM
My first job: Jamba juice. I'll never forget the power of remembering costumers' names. Not only does it bring a huge smile to the customer's face, but tips increased as well.
I really admire Paul's firm belief in customer service and attentiveness. I do very much agree with him, in that it creates a positive and productive atmosphere. I suppose it's just because I've also witnessed so many times when this wasn't the case- companies and stores succeeding without a code of morals and ethics and jerks who come up with unfair policies. Having been to several different countries, I really believe that the US is unique in it's emphasis on customer service and I hope that as generations pass, it will not slowly deteriorate, as I am unfortunately seeing.
Lizzie Devcich wrote on 11/17/09 1:10 AM
The attention to detail and amazing customer service sounds like Kinko's when in its prime. CEO and president visits to all the locations? What a phenomenal idea! What better way to see how things operate and understand the culture of hourly employees? What would our corporations look like if everyone understood customer service in such an outstanding way. I work in a restaurant and continually try to wow customers with my service. I think that if everyone could try to offer the best service possible we would all benefit!
Devon Mailhot wrote on 11/17/09 7:06 AM
I think that having 100% of General Manager and supervisory positions being filled from within the company is a great way to build the moral of employees and, in effect, better the customer service. I think this gives an incentive for the employees to stick with the company and live by its customer service and ethical standards. When employees are hired they can legitimately see themselves working there in a higher position in the years to come, and if they really think they will be staying within the company they will feel that they should do their part in making the company better as a whole.
Lindsey Murray wrote on 11/17/09 11:10 PM
I am really amazed at the lengths this company seems to go to. They have thought of so many little details to set them apart and create a successful framework. I think the way they integrate and connect each employee into the company is very wise. The system and mindset seems very similar to that of Kinkos when it was just starting out and I think there are more than a few shared gems to take away from both companies. Clearly, a conscious decision has been made to value all employees and I think it is evident that this pays off. I am blown away by Morton's averages in comparison to industry averages. It is incredible to see how incorporating small disciplines and ideologies into a company can make a huge decision.
Lauren Wagner wrote on 11/17/09 11:40 PM
It really is vital for a company to retain its employees and have low turnover. Not only does it help to cement company culture, it saves the cost of training new workers. I'm really impressed by the Sed de Saber program as well. It's nice to see a company that is aware of different cultures and backgrounds.
Customer service is critical to a business like Morton's. Now I want to go, just because Paul was so pleased with his experience there.
Rapid Share wrote on 02/03/10 1:50 PM
These reviews, with the exception of a few exceptional dishes and the steak at Morton’s, make me think that “our” idea of a great steakhouse has passed; that the folks who will create the next great places to eat steak are not in thrall to Rat Pack music, clubby booths, and cold martinis. A shame, in some ways, but exciting, too. Let’s see what they roll out.
Torrent wrote on 04/20/10 6:58 AM
Hiring quality employees is quite a task, but being able to keep those quality employees is an even greater task. It sounds like Morton’s sees its employees as actual people with lives outside of their job at the restaurant. I think that when you treat your employees well, they want to work better and harder for you which results in fantastic customer service.
Vincent Vo wrote on 11/11/09 9:51 PM
I recently had dinner at Morton's in San Francisco for the first time. I am definitely a believer! The food was superb and wait staff very attentive. I look forward to going again in the near future.
I too am a fan of good customer service. I think it is an integral part of a good restaurant experience. Good service that gets people excited to patronize a restaurant gives the restaurant good word-of-mouth and ability to charge higher prices. From this blog entry, I can see good service takes a lot of work behind the scenes to accomplish. I'm happy to see restaurants like Morton's going the extra mile to take care of their staff and customers.