Assignment 6: Final Project
Instructor: Dr. Jean Gordon
BUS 692: Strategies in Human Resources
April 15, 2013
Sweetie Pies is a soul food restaurant located in eastern St. Louis established by using a traditional business model and expanding with two additional locations in the area. The restaurant structure is not conventional with having a functional Human Resources department. Analyzing the current use of human capital in the business and restructuring the business to effectively train and to improve the abilities of their current and future employees to expand the business into the national market.
The food service industry is a growing market and continues to increase by over a steady rate of 5 percent between 2011 and 2012. The industry has a high turnover rate of employees and constantly replaces unskilled workers in food service which cost the estimate of one year’s salary and benefits depending on the position may cost thousands of dollars. A recent study showed that fast food restaurants with the lowest turnover made twice the revenue and higher profits than restaurants which had constant turnover. Sweetie Pies is a soul food restaurant located in St. Louis, Mo owned and operated by Robbie Montgomery and James Norman, her son. The first restaurant, Sweetie Pies at Mangrove is the flagship of the restaurants which opened in 1996 but the recent opening of the Upper Crust is the gem of her restaurants completely by offering the signature recipes of the restaurant, a banquet hall, culinary school and performing arts space to the patrons. The focus of this paper is to identify key areas in HRM practices to align the business objectives and goals to expand nationally. Sweetie Pies ability to manage its people will be the key to succeeding in its goal to become a national brand. The restaurant has a niche in the food service industry because of its cuisine is not comparable to any of its competitors however; the restaurant will have to diversify its menu to broaden its brand on the national level. The owner has secured resources to branch out with the Upper Crust and provide a whole new line of services offered to customers. The compensation philosophy is not clearly stated however; the employees are satisfied and share continuous enthusiasm doing their job considering the structure of the restaurant and the limit advancement to higher positions is not a clear promotion path. Employers are more likely to look at the external value of a job before considering the internal job worth (www.worldatwork.org). The current standard of the job evaluation is based on the geographical location, labor pools and market which will give the range pay per hour or pay per year. The pay rate of 7.80 hour for kitchen help/servers is general but lagging in the market by .20 cent different of other chain restaurants or similar establishments in the area. The restaurant is popular because of the reality television show on OWN. It has given them national exposure and the attraction of many tourists who are drawn there by the dishes displayed on the Food Network and other cooking shows. The food service industry workers are on some type of government aid due to low wages and low compensation packages. At Sweetie Pies, the wages are above those of minimum but limited compensation packages are offered to the employees. The HR systems which are usually for control and commitment are not in place at Sweetie Pies because of the structure of the business.
At corporate level, capital market measures of performance are generally considered more comprehensive than contemporaneous accounting measures if profit (return on assets or equity.)(Berk & Gerhart, 1996, pg.791)The restaurant is very capable of achieving the goal to expand because the problems which the owners have identified by opening culinary school will give their employees the training to...
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