What separates restaurants that thrive for decades from those that close within a year? Restaurateur Danny Meyer argues the answer lies in what he calls “enlightened hospitality”\u2014a philosophy that puts people first.<\/p>\n\n\n\n
In Setting the Table<\/em>, Meyer shares how this approach transformed him from a young salesman into the founder of Union Square Hospitality Group. This guide breaks down Meyer’s journey and the principles that made his restaurants successful in one of the world’s most competitive dining scenes. We’ll also examine how his philosophy translates into practical strategies for hiring, handling mistakes, and building lasting customer relationships.<\/p>\n\n\n\n\n\n\n\n Image source<\/em>: TEDx Manhattan, flicker.com<\/a> (cropped)<\/em><\/p>\n\n\n\n For restaurateur Danny Meyer, food does more than just satiate hunger; it fosters connections, creates a community, and elevates everyday experiences into memorable moments<\/a>. In Setting the Table<\/a><\/em>, Meyer recounts the growth of his restaurant business and shares the ingredients to his success. His guiding philosophy is what he calls enlightened hospitality<\/em>: prioritizing people\u2014both customers and employees\u2014no matter what business you\u2019re in.<\/p>\n\n\n\n Meyer<\/a> is the founder and executive chairman of the Union Square Hospitality Group (USHG), the company behind some of New York\u2019s best-known restaurants and bars, including Union Square Cafe, Gramercy Tavern, and Shake Shack. For his contributions to the restaurant industry, Meyer was recognized as one of TIME<\/em>\u2019s 100 Most Influential People of 2015 and has received a number of awards, including the James Beard Award for Outstanding Restaurateur. In addition to writing Setting the Table<\/em>, he has authored and coauthored some recipe books.<\/p>\n\n\n\n This guide is divided into two parts. In Part 1: The Rise of a Restaurateur<\/strong>, we\u2019ll cover Meyer\u2019s roots and his journey to the top of the restaurant business. In Part 2: Lessons From Meyer<\/strong>, we\u2019ll explore the driving principles behind his businesses\u2019 long-term success in a notoriously challenging industry. Since the book was published in 2006, we\u2019ll also include some updates on Meyer and his businesses and how the industry has changed over the years.<\/p>\n\n\n\n Meyer grew up in St. Louis, Missouri, the middle child of Morton \u201cMorty\u201d Meyer and Roxanne Meyer (n\u00e9e Harris). His business philosophy was shaped by two contrasting role models<\/a>: His father and his grandfather.<\/p>\n\n\n\n His father Morty was a charismatic serial entrepreneur with a big appetite for risk, launching businesses like travel agencies and hotels in St. Louis and Italy. Morty\u2019s business deals with an airline allowed him to fly Meyer to Italy frequently, where Meyer spent his time exploring and discovering off-the-beaten-track restaurants. At age 20, Meyer worked for Morty\u2019s tour company in Rome, which gave him hands-on experience in the hospitality industry\u2014he looked after customers, fine-tuning itineraries to include hidden restaurants and family-run trattorias, and he relished the chance to make both restaurant owners and clients happy<\/a>. <\/p>\n\n\n\n Meyer writes that Morty\u2019s business ventures were initially successful, but he lacked the discipline and business acumen to sustain them. The businesses\u2019 failures, combined with Morty\u2019s frequent absences due to business demands, strained family relationships. While Meyer admired his father\u2019s entrepreneurial spirit and people skills, he also saw Morty as a cautionary tale about the dangers of taking reckless risks<\/strong> and growing businesses too quickly. <\/p>\n\n\n\n What his father lacked in consistency and reliability, Meyer found in his maternal grandfather, Irving Harris, a successful businessman and philanthropist. From Harris, Meyer learned the value of building something enduring, thinking big while maintaining focus<\/a>, and giving back to society.<\/p>\n\n\n\n After graduating from Trinity College in Connecticut, Meyer worked as a salesman. He was a top performer, but he didn\u2019t find the job meaningful, and he reached a turning point when the company asked him to launch an office overseas. As he was considering his options\u2014including going to law school\u2014his relatives made him realize that he had always been passionate about food<\/strong> and encouraged him to open a restaurant.<\/p>\n\n\n\n In 1984, Meyer left his sales job and sold his stock in the company, the proceeds of which he would later use as capital. But before venturing out on his own, Meyer worked at a New York restaurant called Pesca, where he would meet his future wife Audrey Heffernan (they were married in 1988). At Pesca, he gained hands-on experience and insight into mistakes to avoid when running a restaurant. For example, the owners comped meals for friends with no record of the expense, which complicated their finances. <\/p>\n\n\n\n After an eight-month stint at Pesca, Meyer spent a few months in Italy and France. He immersed himself in restaurant culture\u2014taking notes on everything from menus to aesthetics and ambience\u2014and worked as a stagiaire (essentially an intern in the kitchen). On this trip, he realized his real talents lay not in cooking but in designing and managing the overall hospitality experience.<\/p>\n\n\n\n Back in New York, armed with stock proceeds from his previous job and additional funds borrowed from family, Meyer looked at numerous properties as a potential location for his restaurant. Instead of choosing a spot in an already fashionable neighborhood, he defied convention by setting up in Union Square, a somewhat seedy area. But Meyer saw its potential: There was a weekend farmers\u2019 market, and a real estate expert predicted that companies would relocate to Union Square to escape the high costs of trendier neighborhoods.<\/p>\n\n\n\n Meyer believed his restaurant could play a part in the neighborhood\u2019s transformation<\/strong>. With a long-term lease locked in at a low rent, he could offer both excellence and value\u2014good meals at reasonable prices that could attract loyal customers. If the restaurant gained a following, it would then give other businesses the confidence to move to the area.<\/p>\n\n\n\n In 1985, Union Square Cafe opened its doors. It reflected Meyer\u2019s notes from his European sojourn, the architects\u2019 vision, and the character of the neighborhood. Though Meyer brought his dream to life, he and his team still faced many challenges. For example, he says that in the restaurant\u2019s first week, they were overwhelmed by an unexpectedly big crowd, leading to mixed-up orders and delayed dishes. But such experiences taught them to work together and make sure the guests got the best service.<\/p>\n\n\n\n Meyer says the restaurant\u2019s big break came in 1986 with a 2-star review from The New York Times<\/em>; business spiked 60% overnight. In 1989, a revamped menu earned Union Square Cafe three stars from The New York Times.<\/em> The restaurant also landed at number 13 on the Zagat Survey\u2019s list of New York\u2019s top 40 favorite restaurants.<\/p>\n\n\n\n Influenced by his father\u2019s mistakes, Meyer says he was cautious about growing his business too rapidly, and he resisted opening a second restaurant until he had enough confidence and experience to replicate Union Square Cafe\u2019s success. In 1994, he opened Gramercy Tavern at Gramercy Park. <\/p>\n\n\n\n Meyer recounts that Gramercy Tavern didn\u2019t live up to the hype in the beginning. After some reflection, he decided to focus on his team\u2019s strength: a well-established culture of excellent service, driven by Meyer\u2019s business philosophy of <\/strong>enlightened hospitality<\/em><\/strong>. (We\u2019ll go into more detail about this philosophy later in the guide.) Meyer wanted to translate this culture from Union Square Cafe\u2019s casual atmosphere to a more refined yet warm and approachable dining destination. It worked: Gramercy Tavern earned three stars from The New York Times<\/em>.<\/p>\n\n\n\n Meyer continued to expand strategically, making sure that every restaurant had his special brand of service. In 1998, he opened Eleven Madison Park, which offered a contemporary American fine-dining<\/a> experience, and Tabla, a modern Indian restaurant. These were followed by barbecue restaurant Blue Smoke in 2002, Shake Shack in 2004, and The Modern (located at the Museum of Modern Art) in 2005. All of Meyer\u2019s restaurants fall under his umbrella company, Union Square Hospitality Group (USHG).<\/p>\n\n\n\n Perhaps no other USHG restaurant has had a more direct impact on the community than Shake Shack. The fast-casual restaurant chain started as a temporary kiosk in 2001. Meyer recounts that the Madison Square Park Conservancy asked USHG to operate a hotdog cart in Madison Square Park to support a restoration project. The cart was such a hit that it made a return for the next two summers, and in 2004, Meyer decided to turn it into a permanent fixture. He says Shake Shack is an example of how a business can thrive while making a positive contribution to the community<\/strong>: The rent goes directly to the city and the conservancy, which uses the funds to sustain the park and other neighborhood projects.<\/p>\n\n\n\n In 2005, Meyer received the James Beard Award for Outstanding Restaurateur, validating his approach to the restaurant business: Regardless of concept\u2014whether it was a fine-dining establishment like Eleven Madison Park or a hotdog-and-burger kiosk\u2014every restaurant demonstrated the same level of culinary excellence, and offered knowledgeable service and gracious hospitality.<\/p>\n\n\n\n In this section, we\u2019ll break down the secret sauce behind the success of Meyer\u2019s empire, which he formulated and refined through years of experience and learning.<\/p>\n\n\n\n Meyer\u2019s core business philosophy is enlightened hospitality<\/em>, which means prioritizing people above all else and showing them that you\u2019re on their side. He stresses the difference between service and hospitality: Service is transactional and refers to the way you deliver a product; hospitality is the way you make people <\/strong>feel <\/em><\/strong>as you deliver a product<\/strong>.<\/p>\n\n\n\n Enlightened hospitality is unique in that it upends the usual business model, where investors are at the top of the priority list or where the customer is king. Instead, Meyer says you should prioritize your stakeholders in this order: employees, customers, community, suppliers<\/a>, and investors. Let\u2019s discuss Meyer\u2019s advice for being hospitable to each group.<\/p>\n\n\n\n Being hospitable to employees means providing them with a living wage, benefits, and an environment wherein they feel free to express themselves. Meyer also prefers to promote from within, so that employees know they have something to strive for.<\/p>\n\n\n\n Meyer adds that selecting leaders from internal candidates\u2014rather than outsourcing new people\u2014is also good for the business, as the existing staff already have a deep understanding<\/a> of the company\u2019s philosophy and systems. <\/p>\n\n\n\n Being hospitable to customers means providing them with an experience that gives them positive feelings. This means ensuring that their interactions with employees are pleasant and helpful and that their environments are comfortable and tailored to their needs. For example, the chairs at some of Meyer\u2019s restaurants are upholstered to help absorb and minimize noise, so customers can have conversations without having to talk over the usual restaurant din.<\/p>\n\n\n\n Meyer and his staff also take customer feedback seriously, whether it\u2019s direct (like through comment cards or dialogues) or indirect (observing whether customers are having a good time). <\/p>\n\n\n\n Meyer and his staff also treat each customer\u2014whether a regular or a first-timer\u2014with the same care and attention so they\u2019re encouraged to keep coming back. Meyer aims for 25% to 40% of their patrons to be regulars who dine at his restaurants 6-12 times throughout the year. <\/p>\n\n\n\n Being hospitable to the community means using your capabilities to establish community programs and encouraging employees<\/a> to volunteer and work together to contribute to and improve the community. Meyer says this not only uplifts communities and brings about social change but is also good for business\u2014customers and investors want to support companies that have their eyes on more than just the bottom line. <\/p>\n\n\n\n Being hospitable to suppliers means fostering mutually beneficial relationships<\/a>. Instead of bargaining for the cheapest price, look at the big picture<\/a>: Meyer says the suppliers with the best fit aren\u2019t necessarily those who offer the lowest price but the ones who offer excellent quality, honor your relationship, and have values that are aligned with yours. <\/p>\n\n\n\n Being hospitable to investors means being honest with them about when they can see a return. Meyer argues that only after looking after the needs of the first four stakeholders can you generate a consistent profit for investors. <\/p>\n\n\n\n Meyer argues that restaurants can\u2019t be successful as generic concepts that can be dropped anywhere; instead, each establishment must be woven into the fabric of its community<\/strong>, embodying its spirit and serving its people. This helps the restaurant feel authentic and relevant to the people it serves, which contributes to greater success. Understanding context also helps businesses make wise decisions about expansion and ensures that new ventures enhance rather than dilute the brand.<\/p>\n\n\n\n Before opening any new restaurant, Meyer applies strict criteria: The opportunity must fit his goals, represent something groundbreaking, align with his company\u2019s capacity for excellence, allow them to be leaders in their niche, benefit existing businesses, generate genuine excitement, serve a community he wants to work in, fit harmoniously with the location, and represent a wise investment. Meyer has turned down lucrative opportunities (like opening restaurants in Las Vegas casinos) because they didn’t align with his values or vision.<\/p>\n\n\n\nTable of Contents<\/h2>
Setting the Table <\/em>Book Overview<\/strong><\/h2>\n\n\n\n
Part 1: The Rise of a Restaurateur<\/strong><\/h2>\n\n\n\n
Meyer\u2019s Early Career<\/strong><\/h3>\n\n\n\n
The Birth of Union Square Cafe<\/strong><\/h3>\n\n\n\n
Union Square Cafe\u2019s Breakthrough<\/h4>\n\n\n\n
Expanding the Empire<\/strong><\/h3>\n\n\n\n
Making a Difference<\/h4>\n\n\n\n
Receiving Recognition<\/strong><\/h3>\n\n\n\n
Part 2: Lessons From Meyer<\/strong><\/h2>\n\n\n\n
Lesson 1: Practice Enlightened Hospitality<\/strong><\/h3>\n\n\n\n
1) Employees<\/h4>\n\n\n\n
2) Customers<\/h4>\n\n\n\n
3) Community<\/h4>\n\n\n\n
4) Suppliers<\/h4>\n\n\n\n
5) Investors<\/h4>\n\n\n\n
Lesson 2: Understand That Context Is Everything<\/strong><\/h3>\n\n\n\n
Lesson 3: Hire for Emotional Skills Over Technical Ability<\/strong><\/h3>\n\n\n\n