I actually agree it's more ragged than later episodes. Prunella Scales doesn't seem to have Sybil's character quite down yet and Connie Booth plays things more straight than she would later on. (Her banter with Robin Ellis seems mostly rote, for instance.) But there are just wonderful touches, like the slow pause and then saying "Go away" into the phone before hanging up, that indicate where the show was going. Apart from that, it feels clunkier than later episodes and doesn't have the natural manic grace of "Gourmet Night" or "The Germans."

If you think this episode has its flaws because the characters weren't properly fleshed out yet, just look at the unaired pilot of Blackadder (the other greatest comedy series of all time), or the entire first series, and then compare it to the second series as an example of a masterpiece show not finding its feet yet. Even the pilot episode of Seinfeld is dreadfully generic (as is much of the first season) and almost unrecognizable to the show it would become. By comparison Fawlty Towers was remarkably quick to find its feet.
OCJOC

It's pretty funny. Basil is getting all his coins into a case, which must be taking a certain amount of time, and meanwhile, Sybil just continues to ignore the family and their order. She'll die before she lets Basil get out from under one of her orders.

She's worse. Basil is just vocal about it.

And seriously, why the hell didnt Sybil serve the family in the bar when Basil was talking to Melbury about his coins.
Basically because she was as bad (if not worse) than he was.
Let Zygons Be Zygons.

Did the Duke of Buckley really get his head shot off by a golf ball ?
And seriously, why the hell didnt Sybil serve the family in the bar when Basil was talking to Melbury about his coins. Ive always liked this episode to be honest.

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YOU BASTARD!!!
Wait a minute who am I here?

I love ATOC, it would make my top five easily. The performances are a lot more nuanced and less histrionic.

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Like all FT when you rewatch it as I have (many times) it becomes funnier and it is so clever how it sets the characters of the hotel staff.

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All the episodes are good, but this one has to be one of my very favorite. The final line by Mr Wareing slays me EVERY TIME: "A gin and orange, a lemon squash, and a scotch and water PLEASE!!!!" And the Lord Melbury character in incredibly good.

Just my $0.02, but I consider A Touch of Class to be one of the best. In fact it still shocks me that it's the first episode.
Wait a minute who am I here?

It is good but any audience response to new characters is bound to be a bit muted I suppose.