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It was on that call that he introduced me to the concept of restaurant-smart vs. corporate-smart. He described the distinction between the two. In the simplest terms: Where do the highest-paid people in the company work? In the restaurants themselves, or in the corporate offices? That says a lot about how the company is run. In restaurant-smart companies, members of the team have more autonomy and creative latitude. Because they tend to feel a greater sense of ownership, they give more of themselves to the job. They can often offer better hospitality because they’re nimble; there aren’t a lot of rules and systems getting in the way of human connection. But those restaurants tend not to have a lot of corporate support or oversight—the systems that make great businesses. Corporate-smart companies, on the other hand, have all the back-end systems and controls in areas like accounting, purchasing, and human resources that are needed to make them great businesses, and they’re often more profitable as a result. But systems are, by definition, controls—and the more control you take away from the people on the ground, the less creative they can be, and guests can feel that. Restaurant-smart companies can be great businesses, and corporate-smart companies can deliver great hospitality. But their priorities are different, in ways that fundamentally affect the guests’ experience.

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