Book Report - Satisfaction Guaranteed (Zingerman's)
How Zingerman’s built a corner deli into a global food community
By: Micheline Maynard
My “book reports” mainly consist of sharing quotes/ideas from each book that relate to business, leadership, etc. I focused on the business principles that Zingerman’s shared, and could relate to the work I talk about… so, I didn’t pull the notes specific to their food, which are quite exquisite.
Background
Certain businesses are legendary, exerting immense influence in their field. Zingerman’s in Ann Arbor, Michigan, is one of those places. Over the years the flagship deli has expanded into a community of more than a dozen businesses, including a wildly successful mail order operation, restaurants, bakery, coffee roastery, creamery, candy maker, and events space—transforming Ann Arbor into a destination for food lovers.
Founded in 1982 by Paul Saginaw and Ari Weinzweig, Zingerman’s philosophy of good food, excellent service, and sound finances has turned it into a company whose reach spans all corners of the gourmet food world. Famous for its generous deli sandwiches, fresh bread, and flavorful coffee—all locally produced—Zingerman’s is also widely celebrated for its superb customer service and employee equity. The culture is one of respect and innovation, while maintaining very high standards. Every employee has access to the financial records, everyone has a voice, and everyone is heard. It has legions of enthusiastic customers, fans across the food world, and business principles and a work ethic that have been admired, analyzed, and copied.
By 2019, Zingerman’s employed hundreds of employees and achieved close to $70 million in annual sales. When the pandemic struck, Zingerman’s growth momentarily screeched to a halt—but it survived by reinventing itself, while still serving its beloved food and selling its wide array of groceries. Now, as Zingerman’s looks forward to a half century in business, it is on track for stronger results than ever. A recipe for success in business and in life, Satisfaction Guaranteed provides a roadmap for manifesting joy and purpose in everything you do.
Intro
The entire experience counts - “Our guarantee doesn’t just cover food. We ensure your satisfaction with every part of your experience with Zingermans. From picking up the phone, to the first mouse click on your computer, until you finish the last bite of bread – if you aren’t completely satisfied with every part of the journey please contact us. We want to hear about th problem. We’d love the opportunity to make you happy.”
Toyota philosophy of kaizen = continuous improvement and visual management, meaning that is easy to see at a glance the type of work that needs to be done
Better food costs money
The Backstory
The company has a mantra of good food, good service, and good finances
The customer approach → one of their hallmarks is customer service. Weinzweig has devoted a book to that topic, but his philosophy boils down to a few basic tenets. The customer should be treated with respect and the customer experience is not something to rush
If you ask about wildflower honey, you aren't just pointed to an aisle; someone walks you to it and tells you about its characteristics
Food and Philosophy
Zingerman’s represents the belief that once people are exposed to good food, they will appreciate it
Someone will greet you when you arrive (there’s not necessarily a dedicated role for it, but a shared role among all employees)
Guiding Principles
Deming’s 14 Points for Management (Saginaw encountered it) - it stresses consistency of purpose, emphasize job training, encourage leaders to drive out fear so staff can work without worry, and involve everyone in the enterprise
While customer feedback is important, and input should always be welcomed, it’s up to leaders to set a company's direction
Toytoa genchi genbutsu - translates to “go and see” and “go to the spot”
Concept of Visioning
Four things that go into effective vision: 1) be inspiring, 2) be strategically sound 3) needs to be written down 4) needs to be communicated
Whole idea is to leapfrog from today to the future that could be
Visioning is a way to keep people focused on the ultimate big picture, or to keep their eyes on the prize. The vision is special, while the day to day can be mundane
Open Book Management
Allows anyone at any level of the company, whether managing partner or employee, to see applicable numbers
Servant Leadership
Weinzswig says his embrace of being visible stems from personal advancements in the restaurant business
Through trial and error, he wanted to come up with an answer to the question “What kind of a leader do I want to be?”
Servant leadership is a philosophy and set of practices that enriches the lives of individuals, builds better organizations and ultimately creates a more just and caring world
The leaders at Zingermans are there to serve their orgs – the idea is that each manager gives great service to the people who report to them, until the energy of this service reaches the frontline staff
It’s all about helping people grow and succeed
Servant leaders need to create a vision for the staff – help people understand what the company is going to look like in the short-term and long-term
Be really nice to customers and get them what they want – enthusiastically, energetically and accurately
It became clear that more formal training was required
Zingerman’s 12 Natural Laws:
Strategically sound vision
Compelling reasons to buy from you
A great, rewarding place for people to work
Provide service to the staff
Clear expectations and training tools (the single most important element in making that happen was clear expectations
Do things that others don’t do
Constant improvement
There will always be problems
Strength can lead to weakness
Greatness takes time
Profit is good
Appreciate your staff and they’ll have more fun
Zingerman’s problem solving concept
There needs to be a clear and compelling purpose
Change seeker creates a vision of what things would look like when a change takes place and gets leaders to buy in
Who needs to know
The vision is presented
It is implemented
Inside Zingerman’s
The Bakehouse - the same Toyota-style concepts that Mail Order embraced also influenced the way the Bakehouse is run
The relentless pursuit reflects Carollo’s passion about his work, which first the Japanese concepts of kaizen
What it’s like to work there – customers greeted by the first employee who spots you … You might have a long wait time, but then once you are waited on, it’s as if no other customers exist
Looking Ahead - The Future
Despite his belief that there's more to business than just making money, he agrees that Zingerman’s future will rest in part on its financial viability. In order to grow, it has to produce the good finances that the company talks about as one of its three bottom lines
Zingerman’s customers usually feel a sense of appreciation. During the pandemic, they considered the company a link to a life they temporarily could not lead, even if the baked goods cost tens of dollars more than a babka or a coffeecake elsewhere. That’s the kind of loyalty business crave
“Joy is feeling so profound that it sits at the top of the human experience chant”
“I believe that perhaps the hardest work we have to undertake is the work no one else sees, and that no else can ever do for us. If’s the lifelong challenge to manage ourselves effectively, to make peace with ourselves and turn our natural ability in a positive and powerful presence in the world
2032 Vision
Food that’s more flavorful than ever, and a host of other super-fine stuff
Service that makes you smile (making meaningful differences in people’s lives, one interaction at a time)
Sustainable finance - it’s about health, not wealth
Great place to work - bring our whole selves to work
Community roots - staying put in order to grow // we continue to find creative ways to surprise and delight our guests
Working with young people
Diversity, equity and inclusion
How we work - collaboration and autonomy, freedom and accountability
Moving at the speed of yes - reflection and action – we keep our minds open to innovation; we champion a creative culture of possibility and invention. When someone shares a new idea, we ask ‘how can we make that work here’
Walking new paths - succession and continuity
Working in harmony with nature
Love and care
