Is service dead in America?
One of the few universal human experiences is "service" — an interaction between a buyer and a seller or product provider. We encounter it multiple times a day — at the fast-food drive thru, at the grocery store, at a nice sit-down dinner, at the doctor's office, at the barber's, and at a hotel while traveling.
Is service in America dead? The simple answer to my question is no — it simply cannot die because we need to buy things from sellers. But the inescapable truth is that service is in decline and has been for some time. In fact, service is in greater decline today than it was pre-COVID. Why?
Maybe you have received the wrong order at a drive-thru. Maybe you noticed fewer cashiers at a department store. Maybe you noticed fewer servers at a restaurant. Maybe you noticed fewer smiles from servers, or even a grumpy attitude from service personnel. What the heck is going on?
The answers are not simple. There is not one key thing that led to the decline in service, but here are a few contributors.
- The rise in minimum wage. On a simple note, the huge increases in wages have not worked for the average person. Wages increased slower than inflation, resulting in a loss of buying power. The result was the opposite of the intent — an example of great sounding political speech with unsuccessful results.
- COVID. COVID was an economic disaster as well as a human disaster. Across the business spectrum, fewer service personnel were required just to stay in business. There was a public acceptance by buyers of lower service. On the rebound from COVID, many businesses, believing that the public will accept reduced service, decided to keep lower service levels as a strategy.
- The government strategy on oil independence. Oil is everywhere in our lives, more than the average person might understand. Oil impacts gas prices, diesel prices, trucking prices, plastic prices, asphalt prices, cargo vessels, trains, farms, airlines, and more. The foolishness of bad oil policy has deep economic implications. High oil prices led to inflation, and inflation led to reduced service levels.
- Inflation. Trips to the grocery store cost over $100, a sit-down lunch for two is $50 — even McDonald's had to increase the price of its $1.00 soda. The net result is that people have changed their buying habits. Keep an eye on deals for new cars as a gauge for how much buyers are impacted by high prices, and expect new car "deals" to continue and get even more competitive.
- The war on climate change. There is a difference between waging a war on climate change and implementing a war based on idiotic logic. Every action has a reaction, and to think the government can play games with policy, thinking these decisions have no negative impact, is truly idiotic. Today, we are faced with car prices that force people to avoid buying new cars, home prices that take away homeownership, and ignoring the impact on the average person's life.
- Greed. Has there been a rash of greed? Yes, but a different type from what you might expect. Example: During the worst part of inflation, to keep a price point, some manufacturers reduced to size of their product and now that some costs have fallen, profits have soared. Tipping has become out of control. Is it greed, or is it necessary to keep good people? Hotels lowered housekeeping standards and increased prices. Does greed impact service levels? Sometimes, yes. Department stores that reduced service levels have paid a price.
- Societal change. Since COVID, workers have a new attitude. It's hard to say if the long period of working from remote sites changed the relationship between management and staff, or if it's part of the woke culture, or if it's been coming for some time. Regardless of how this change happened, management of staff will be permanently changed. Now, more than ever, great service takes great management. And ineffective service is the result of ineffective management. Throw out those old training tapes!
- Business strategy change. Business success in today's world will need adjusting to keep up with modern times. Key to success will be training, managerial style, pricing strategy, and setting high service standards.
No, service is not dead. A word from the common man: I do notice service levels and choose where to spend money based on the quality of service received.
Image via Pixabay, Pixabay License.