Contrary to industry trends, Todd Graves views LTOs as a net negative. He argues they create operational drag, forcing managers to focus on temporary training and marketing instead of core operations. This leads to frustrated crews and a subsequent decline in everyday customer service quality.
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A frequent mistake service businesses make is hiring a dedicated marketing employee and then gradually shifting their responsibilities to customer service or dispatching. This negates the role's strategic value and turns a key growth driver into an overpaid administrative position, ultimately stifling marketing efforts.
Todd Graves resists adding trendy items like spicy chicken because it would break his operational model. Increased complexity would force a shift from a fresh, cook-to-order system to using holding bins, which would degrade both food quality and service speed—the brand's core differentiators.
To incentivize faster, high-quality onboarding, offer trainers a bonus for accelerated timelines (e.g., training in two weeks vs. six). Couple this with a penalty: the trainer must fix any of the new trainee's mistakes for free for a set period, ensuring they don't sacrifice quality for speed.
If you can't pay employees enough to retain them, the root cause is likely a flawed sales process, not a hiring issue. A weak sales motion prevents price increases, which suppresses profit margins and ultimately limits what you can afford to pay your team.
Counterintuitively, providing new, varied bonuses frequently can keep customers engaged longer than a single, large permanent upgrade. This is because customers quickly get used to permanent features, while novelty continually recaptures their interest.
Sludge is profitable in the short term. With CEO tenures shorter than ever and compensation tied to quarterly stock performance, executives are incentivized to cut customer service costs now, even if it harms long-term customer relationships and brand loyalty.
Failing to train sales teams incurs hidden costs that dwarf the training budget. These include lost revenue from missed quotas, wasted marketing leads, and the high expense of recruiting and onboarding replacements for unsupported reps who inevitably leave.
The free market is ruthlessly efficient at pushing commodity service providers to a point of burnout, where they give maximum effort for minimum sustainable pay. To escape burnout, you must escape commoditization by creating a unique, high-value offer.
Founders often see franchising as a way to scale without managing more employees. However, it shifts the people problem to managing franchisees. This requires enforcing brand standards and managing underperformers who are also business owners, a group that can consume 80% of your time.
Burnout stems not from long hours, but from a feeling of stagnation and lack of progress. The most effective way to prevent it is to ensure employees feel like they are 'winning.' This involves putting them in the right roles and creating an environment where they can consistently achieve tangible successes, which fuels motivation far more than work-life balance policies alone.
