By Akki Patel
As a real estate developer and investor with a strong presence in hospitality, I’ve always believed that success in our industry is about more than just location, design, and amenities. It’s about how we make people feel. Danny Meyer’s Setting the Table reinforced something I’ve long known, hospitality isn’t just an industry, it’s an emotional connection that fosters loyalty, trust, and long-term success.
Hospitality as a Business Strategy
Meyer, who built some of New York’s most beloved restaurants (and later, Shake Shack), introduces the concept of Enlightened Hospitality—the idea that prioritizing people first creates a ripple effect of success. He argues that businesses should first take care of their employees, then their guests, their community, their suppliers, and finally, their investors.
This approach might seem counterintuitive in a world where revenue and profit often drive decisions, but Meyer proves that businesses built on genuine relationships outperform those that focus solely on transactions.
“Meyer proves that businesses built on genuine relationships outperform those that focus solely on transactions.“
For those of us in commercial real estate, hospitality, and customer-driven businesses, the lesson is clear: people don’t just pay for a product or service; they pay for how that product or service makes them feel.
The Psychology Behind Hospitality
We are emotional creatures. Our decisions, especially where we spend our money, are driven by how experiences make us feel. Hospitality is about creating emotional safety, comfort, and connection—whether that’s in a five-star hotel, a quick-service restaurant, or a mixed-use development.
- The Power of Recognition – People want to feel seen and valued. Meyer talks about the importance of remembering repeat guests’ names, preferences, and past experiences. In the hospitality and real estate industries, the same principle applies—understanding a customer’s unique needs creates lasting loyalty.
- Creating Moments of Delight – Small, unexpected gestures create strong emotional bonds. Whether it’s a complimentary upgrade at a hotel, a well-timed greeting from a restaurant manager, or a seamless leasing process in a retail space, these inevitably moments build long-term relationships.
- Recovering from Mistakes – Meyer’s philosophy is that mistakes are actually opportunities. How a business handles a problem determines whether a customer returns or never comes back. When we acknowledge an issue and resolve it with sincerity, we often strengthen trust rather than lose it.
Hospitality Transforms Transactions into Loyalty
The most successful brands, whether in hospitality, real estate, or retail, aren’t just businesses; they become part of people’s lives. Customers return not just for the product but for the experience of being valued.
This is why hospitality-focused brands build cult-like loyalty. Consider companies like Ritz-Carlton, where employees have the authority to go above and beyond for guests, or brands like Apple, where customer service feels personal and thoughtful. These companies understand that customer loyalty isn’t won through discounts, it’s earned through emotional connection.
How This Applies to Real Estate and Development
For those of us in commercial real estate and development, Setting the Table is a reminder that hospitality isn’t just for hotels and restaurants. Every property we develop—whether it’s a shopping center, a mixed-use community, or a restaurant space—needs to be built with people in mind.
- Tenant Relations Matter – Just like Meyer puts employees first; developers should prioritize strong relationships with tenants. Supporting their success, understanding their challenges, and ensuring a seamless leasing experience leads to long-term retention.
- Community Engagement Builds Value – People want to feel connected to the places they visit. By fostering a sense of community within our developments, through thoughtful public spaces, events, and local partnerships, we create more than just real estate; we create destinations.
- Design with Hospitality in Mind – Every space should be built for comfort, ease, and experience. From retail centers to residential projects, thinking about how a person feels when they enter a space makes all the difference in whether they return.
Final Thoughts
Meyer’s philosophy is a powerful reminder that hospitality isn’t a department, it’s a mindset. Whether we’re running a restaurant, developing a new commercial property, or building a brand, our success depends on how we make people feel.
At LRE & Companies, we take this lesson to heart. Every development we work on, every tenant we partner with, and every guest who walks through our doors should feel like they belong. Because at the end of the day, the best businesses aren’t just serving products or services; they’re serving people.If you haven’t read Setting the Table yet, I highly recommend it—not just for hospitality professionals, but for anyone who wants to build a business that thrives on human connection!