Reference no: EM132249568

Cooking Up Success at P.G. Chang’s - P.F. Chang’s Serves Its Workers Well

Overview:

What makes a restaurant experience memorable? Great food, ambiance, and attentive service all combine to create an enjoyable dining experience. P. F. Chang's China Bistro's unique blend of traditional Chinese cuisine and contemporary American hospitality sets the stage for the company's mission-to provide guests with exceptional food and service each time they walk through its doors.

P. F. Chang's success depends on attracting and retaining employees who maintain consistency in the quality and atmosphere of its restaurants, so the company seeks individuals who don't just understand exceptional guest service but have a passion for providing it day in and day out. Whether answering patrons' menu questions, recommending additional dishes to round out a meal, or making special sauces tableside, P. F. Chang's dedicated staff pays attention to every detail.

Founded in 1993, the Scottsdale, Arizona, headquartered company has over 115 bistro restaurants and employs 18,600 people. About 200 are executive office personnel, 1,200 are unit management personnel, and the remainder are hourly restaurant personnel. The staff of a typical Bistro restaurant consists of a general manager, three or four managers, an executive chef, one or two sous chefs, and approximately 125 hourly employees. All management and culinary personnel complete a comprehensive 13-week training program and must successfully complete a certification exam. Hourly staff must also complete training programs, which last from one to two weeks and focus on both technical and cultural knowledge.

So what is P. F. Chang's recipe for employee motivation and retention? The company offers a partnership or management equity participation program that allows regional managers, certain general managers, and certain executive chefs to become partners and participate in the profitability of their restaurants. These programs facilitate the development, leadership, and operations of the restaurants. In return for a cash payment to the partnership, the partner receives an ownership interest in a specific restaurant or region, generally ranging from 2 to 7 percent. Partners then share in the income or loss of this restaurant or region.

Operating partner Mark Millor was initially unsure whether he should buy into the partnership and get involved in management. "I was doing very well as a server and had all the free time I wanted, but my friends, my family convinced me, so finally I bought in," he says. "The minute I did, I wanted to become an Operating Partner. In essence I would be running my own business but with a lot less risk involved. I think that is the greatest part of the partnership perspective; when P. F. Chang wins, I win. Hire the right people and then catch them doing something right. Allow them to be successful. . . . Reinforce the behaviors you want to see. When you empower people, everybody wins."

By respecting its employees and giving them a high degree of autonomy, P. F. Chang's creates a sense of ownership that motivates employees to perform at the highest levels.

Critical Thinking Discussion Board Questions

P. F. Chang's is committed to providing guests with a superior dining experience. What role does its employees play in helping the company achieve that goal?

What key strategy does the company use to motivate its employees? How does personal empowerment influence employee performance?

Discuss the role employee training and education plays in the company's ongoing quest to distinguish its restaurants from the competition.