A restaurant chain based in California offers made-to-order
sandwich wraps using fresh, healthy ingredients. The founders of
the company take a very active role in day-to-day business and
tightly control every aspect of the restaurant operation from
hiring store managers to planning the menu. Management is
concerned that employee turnover is high, customer satisfaction
is decreasing, and revenue growth is flat. The newly hired human
resources leader believes addressing employee turnover can help
solve the other problems. She develops a profit-sharing program
as a pilot at two restaurants. The managers in the pilot program
have their compensation tied directly to restaurant profits. The
program also allows managers to customize menus, work with local
suppliers, and try different promotion ideas. After six months,
profits at the pilot locations improve while customer reviews
are mixed. The HR manager must review the complete results and
decide whether to roll out the pilot program to more locations,
modify the