Strengths of the Sharelt Program

Ashley Gray

Strengths of the Sharelt program include the managers freedom to innovate themselves, like customizing the menu items and trying their own promotional ideas. A strength towards the compensation issue is the store managers would receive 35% of profits, associate managers 15% and the other 50% to the rest of corporate. They would have internet based surveys with addition to mystery shoppers in order to follow the program closely and measure guest satisfaction. Another strength included the Facebook and twitter pages that customers could follow and like for special offers and promotional updates. Catering was being expanded and the program would have a frequent customer program within it. The major weakness with this program is that it is extremely risky since it is a huge change for them. Its also only being tested in two restaurants and the working hours had majorly increased.

WrapItUp was experiencing issues with the founders disengaging from daily operations and decision makings as they were increasing in size, they also had problems with high turnover rates due to the disorganization and lack of motivation and compensation seen with their employees. They were also seeing lowering customer satisfaction due to lack of customer engagement and poor customer relationships and the company was also seeing losses in profitability.

Compensation is the root cause. They were having difficulty attracting and retaining the top talent because of it, a lack of motivation was seen among managers and this created a high turnover rate. It did not help that they were disorganized in their recruitment and only had close relationships with their long term employees.

The plan was structured good, with the new method of payment and compensation for managers and employees, freedom to innovate, providing customers surveys that were easily accessible on the internet and then piloting in restaurants, but only testing it in two restaurants does not accurately represent all of them. I don’t think it was structured correctly though, because employees were frustrated with the lack of compensation and even though they were given more, their contribution to the organization also increased.

Based on solely financial results, it appears that the plan succeeded in both pilots. Both stores had a significant increase in their store profits across the six months. Santa Monico more so then Costa Mesa but they still both showed increases.

When also looking at the customer service scores along with financial results, I would still say that the plan succeeded. The survey scores ranged from 2.8 to 4.7, with all high scores

for likely to return. The surveys were meant to show the stores what they need to improve on and if they take the customers thoughts into consideration moving forward, they can use it to constantly improve their plan.

Reyes should continue with the WrapItUp