Doing Business with Hungry People

A few years ago, we built a startup headquartered in Rome. Everyone on the team was Italian except for me, the only outsider welcomed into this dolce vita. I quickly learned what seemed to be the most important rule in negotiations: first we eat, then we talk business.

Italians seem to have learned that hungry people make bad decisions, probably in much the same way that tired people do. And the easiest way to make sure you and your negotiation partners are both well fed? Take everyone out for lunch.

All roads lead to Rome

Hospitality plays a key role in Italian business culture anyway, and one way or another, it usually involves eating. Refusing an invitation for dinner is likely to be taken as an insult. It’s actually polite to let your business partners invite you out. By letting them demonstrate their “Bella figura” to make a good impression on you, you are allowing them to express their goodwill and hospitality, which makes them look good.

Negotiations start by building relationships. Perhaps a sense of urgency can be seen as an attempt to weaken the other’s bargaining position, but a business discussion can only truly start once trust has been established and every last bit of urgency has been purged from the discussion. A rushed decision might invite regret later on, and a remorseful deal is not a good deal for any involved.

Hungry for sleep

Being hungry is much like being tired: A recipe for bringing out bad behavior in good people. Researchers found evidence that sleep-deprived employees – those who receive less than six hours of sleep a night – are more likely to engage in unethical behavior at work the next day. When it comes to sleep, people who stay up to work late are more likely to cheat.

In the ego-depletion model, self-control requires purposeful effort. As we get tired, the cognitive resources we use to support our self-control become depleted. It only makes sense then that a lack of sleep, or similar state, is also related to ego depletion.

Christopher M. Barnes and his colleagues asked participants to take cognitive tests and then record their own scores without supervision. The researchers were interested in seeing whether people recorded their tests correctly, and they found that those who cheated and over-inflated their test scores were people who had gotten less sleep. Compared to their non-cheating colleagues, cheaters had averaged 22 minutes less sleep the night before.

Sleep deprivation has little effect on logical reasoning, but it reduces our ability to regulate negative moods and hostility. This could explain how sleep-deprived workers have a tougher time resisting negative impulses, while otherwise doing their job well.

Exploring your inner Labrador

We already know that we shouldn’t go food shopping while hungry or we’re likely to make choices that are either unhealthy, or simply just indulgent. In 2019, a study from the University of Dundee in the UK has found that making any kind of decision can lead to poorer choices – if we do it while we’re starving.

“Our research suggests this could have an impact on other kinds of decisions as well. Say you were going to speak with a pension or mortgage advisor – doing so while hungry might make you care a bit more about immediate gratification at the expense of a potentially more rosy future.” – Benjamin Vincent, study author

Hunger is more common than it sounds. It doesn’t only affect people who live in poverty; many of us in the luckier parts of the world regularly leave home without breakfast. People also fast intermittently for health reasons, or because of their religion. As Dr. Vincent says, “It’s important to understand the non-obvious ways in which people’s preferences and decisions may be affected by hunger.”

Burning the candle at both ends

These studies are not great news for managers. As workers in the U.S. continue to work more hours every year, Americans, on average, are gradually getting fewer hours of sleep or have less time to pay attention to their eating habits.

We’ve seen that hungry people’s preferences shift dramatically to fulfill their short-term needs, even when it comes to things that are completely unrelated to food. Sleep-deprived employees will have difficulty hiding their negative emotions, which may lead to them lashing out at an unfriendly customer.

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To make matters worse, for many workers, staying up late and burning the midnight oil is seen as a badge of honor. Managers can help minimize this by establishing a culture that encourages more regular work hours, better sleep and healthy eating habits.

Maybe we can start by encouraging everyone to get in touch with their inner Italian.