I’ve been reflecting on the customer experience in service sectors, especially within hospitality. What elements contribute to a consistently positive experience that can genuinely impact customers?

The recent “once in a generation” October budget has intensified this discussion. This budget will significantly affect businesses with large hourly workforces due to hikes in employer national insurance contributions and a notable increase in the national minimum wage.

One clear outcome will be a higher reliance on automation for routine tasks. However, if this leads to diminished human interactions, what could that mean for customers?

In my opinion, an exceptional customer experience includes every engagement with a business being positive and memorable. Although I focus mainly on physical hospitality venues, the journey often begins online. Your brand identity and company culture should be as evident online as they are in real-world settings.

This ties back to a crucial understanding of your business—an essential, succinct statement that encapsulates your purpose. This guiding statement influences everything from communication style to marketing strategies and overall culture.

The ultimate goal in service industries must be to forge an emotional bond with customers—a lasting impression that transcends mere functional satisfaction.

Throughout my career in hospitality, I have sought ways to communicate this connection. I believe it is embodied in those moments when a staff member in a café or bar truly engages with you, demonstrating genuine concern for your needs and ensuring you leave feeling appreciated. Such snippets of human connection are frequent in hospitality and carry significant weight, enhancing our world.

A former chairman of mine once shared a model of service that consists of four levels based on competence and friendliness:

• Level 4: Incompetent and unfriendly (orders not fulfilled, staff unconcerned)
• Level 3: Incompetent but friendly (orders not fulfilled, staff pleasant but ineffective)
• Level 2: Competent but unfriendly (orders fulfilled but with robotic service, lacking personal touch)
• Level 1: Competent and friendly (orders fulfilled promptly with a personal touch).

Only Level 1 truly matters.

Essentially, this is about effective care, as care alone falls back to Level 3. Establishing a culture of care is challenging, yet a consistently great customer experience hinges on a service culture that prioritizes care. This culture stems from leaders who believe in serving through low-ego, emotionally intelligent approaches grounded in well-defined values.

Such practices foster respect, collaboration, and empowerment among customers, employees, and communities. It also relies on data insights about customer preferences and values. Delivering quality customer experiences cannot rest solely with individuals; it requires robust data and insights that inform organizational understanding and actions.

To truly connect with customers, outstanding communication and training are vital. Empowered employees who lack the right skills cannot effectively engage customers. Training equips individuals with the confidence and tools to demonstrate friendliness and care, knowing their colleagues are similarly prepared for their roles.

Hospitality is integral to our daily lives, serving as the backbone of local economies, offering memorable meals and experiences, and providing jobs for 3.5 million people in the UK. Many of these positions are crucial entry points for young individuals to develop essential social skills while balancing other responsibilities.

From April 2025 onwards, employment costs will see a dramatic rise. We are already observing a trend towards automation, such as self-service kiosks, which often leads to a significant reduction in on-site staffing. Such shifts may leave gaps on high streets as business owners opt to close their doors due to rising operational costs.

The resulting decline in human connection and community engagement poses a risk of creating a void that cannot solely be quantified through financial metrics.

Dame Karen Jones co-founded Café Rouge and served as the chief executive of the Spirit pub group. She is currently a non-executive director for Deliveroo, Whitbread, the Crown Estate, and Mowgli Street Food, as well as chairwoman of Hawksmoor.