Leadership Lessons from Waffle House

Written by: Sharon Cauthen

The recent passing of Walt Ehmer, Chairman of Waffle House, has prompted me to reflect on the impact of his leadership and the unique success story of the iconic restaurant chain. The lessons in a people first culture paired with smart strategic acumen results in a chain that is a hometown favorite wherever they do business. There are many lessons that apply to multifamily, and many other, industries. Each of the eight points below are discussed in the upcoming episode of 8 Stories, a Multifamily Media Network podcast scheduled for publication Saturday, September 14, 2024.

Waffle House, known for its 24-hour service and classic American diner fare, offers valuable leadership lessons that extend beyond the realm of the restaurant industry. Here are some key takeaways from Waffle House’s enduring success:

1. Meeting Customers on Their Terms | One of Waffle House's standout decisions was to stay open 24 hours a day. This choice wasn’t merely about catering to late-night revelers; it was a strategic move to serve a diverse clientele that includes truck drivers, travelers, and everyday people with irregular schedules. By aligning their hours with their customers' needs, Waffle House has turned overnight shifts into a profitable venture, demonstrating the importance of flexibility in business operations.

2. Creating a Supportive Work Environment | Waffle House is a privately owned company with a distinctive approach to employee ownership. Staff members who have been with the company for at least a year are eligible to own stock. This policy not only incentivizes long-term commitment but also fosters a sense of ownership and alignment with the company’s goals. Investing in employees by giving them a stake in the company is a powerful way to build loyalty and drive performance.

3. Maintaining Cost Efficiency | Waffle House's ability to purchase 2% of all eggs in the U.S. is a testament to its effective cost management strategies. By securing bulk supplies, Waffle House keeps its menu prices competitive and maintains profitability. This strategic focus on cost efficiencies—rooted in the company’s decision to feature waffles prominently—demonstrates how operational decisions can drive financial success.

4. Ensuring Operational Speed | In the restaurant industry, speed is crucial. Waffle House’s standard of serving food in less than

ight minutes with an average customer stay of 20 minutes showcases its commitment to efficiency. Quick service not only enhances customer satisfaction but also optimizes table turnover, which is essential for maximizing revenue in a high-volume business.

5. Staying True to Identity | Waffle House’s minimalistic advertising approach and consistent food offerings reflect a deep understanding of its brand identity. With recognizable signs and an unwavering commitment to their menu, Waffle House presents itself as a quintessential American establishment. This authenticity helps the company maintain a strong connection with its customers, who see Waffle House as a reliable and familiar place to eat and work.

6. Focusing on People, Not Just Products | At its core, Waffle House is in the people business rather than just the restaurant business. The company's culture emphasizes the value of its employees and the community it serves. By prioritizing people over products, Waffle House creates an environment where customer service and employee satisfaction are paramount.

7. Implementing a Fair Bonus System | Joe Rogers, Sr., one of the founders, emphasized the importance of a fair bonus system. In the restaurant industry, where performance metrics are crucial, Waffle House’s bonus system is designed to be self-monitoring and based solely on objective criteria. This approach minimizes biases and ensures that rewards are distributed fairly, reinforcing a performance-driven culture.

8. Leveraging Diverse Skills | Waffle House’s success underscores the value of having diverse skill sets within a leadership team. No one person can excel in every area, and the company’s example illustrates how complementary partnerships can enhance overall performance. Embracing diversity in skills and perspectives makes teams stronger and more adaptable.

As we remember Walt Ehmer and his contributions to Waffle House, it’s clear that his leadership leaves a lasting impact on both the company and the broader business community. The principles exemplified by Waffle House offer timeless lessons in flexibility, employee investment, operational efficiency, and maintaining a strong organizational identity. These lessons are as relevant today as ever, guiding leaders in any industry toward sustainable success.