One national restaurant chain realizes that over-burdening its employees hurts sales, as well as the company brand. Will more businesses follow its lead? In the business world, efficiency is king. The corporate quest to cut salaries and get more out of employees, thereby maximizing profits, is never-ending. At some point, however, increasing the workload on employees backfires. The burden becomes too much for workers to bear, and when employees are overwhelmed and can’t keep up with their duties, it’s just plain bad for business. Last week, Red Lobster basically admitted that it had crossed the line with the introduction of a policy aimed at increasing efficiency and lowering restaurant costs. In July 2012, the restaurant chain, owned by Orlando-based Darden Restaurants, eliminated the busboy position, demoted many waiters to lower-paid status as “service assistants,” and forced the remaining full-fledged servers to increase the number of tables they handled from three to four. At the time, Red Lobster said that the changes were being made after testing showed that diners and restaurant employees alike approved of the new policies. An Orlando Sentinel story published at the time of the switch offered some other perspectives: “We’re going to be completely worn out,” said Bob Meehan, a longtime server at Red Lobster in Lake Worth. “It’s definitely going to hurt service.” Chris Muller, dean of Boston University’s hospitality school, said worker morale will likely suffer. “If you don’t like the people you’re working with and for … it’s going to show,” he said. (MORE: Why Restaurants Have Been Holding Back on Hiking Menu Prices) Lo and behold, it appears as if Red Lobster is now acknowledging that these critics may have been on to something. Less than a year after the four-table policy was launched, the company announced it is reversing the decision, and waitstaff will go back to serving three tables at a time. A Red Lobster spokesperson told the Orlando Sentinel that while some customers liked the four-tables policy, once it was introduced around the country, “far more folks told us
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Book Review: What America’s Banana King Teaches Us About Capitalism
Americans puzzling over the role of today’s powerful corporations — Bain Capital, Goldman Sachs, Google — may profit from considering the example of the United Fruit Company. It seems almost quaint to think that a company specializing in bananas might have once been considered a capitalist giant on the level of today’s firms, but so [...]