*By Steven L McShane, based on an earlier case by L. Neely with guidance from J. Hunt.

Cincinnati Super Subs is one of the larger Super Subs out-lets, a chain of 300 take-away restaurants in Indiana, Ohio, and Michigan. This outlet has a restaurant manager, an

assistant manager, and several part-time team leaders. The restaurant manager rarely has time to serve customers and frontline work by managers is discouraged by the head office. The assistant manager serves customers for a couple of hours during the busy lunchtime but otherwise assists the restaurant manager with purchasing, accounts, hiring,

and other overations. Most team leaders are college

students and serve customers alongside other emplovees. particularly from late afternoon to night closing. Most employees are also students who work part-time: a few are in high school. All regular staff earn minimum pav rates.

Cincinnati Super Subs has experienced below average profitability over the past 18 months, which has reduced the monthly bonus paid to the restaurant manager and

assistant manager. This bonus is calculated by percentage of

"wastage" (unsold, damaged, or unaccounted for tood and drinks relative to sales; the lower the percentage ot wastage, the nigher the bonus. Wastage occurs when employees arop or spill food, cut up more toppings than are sold, burn heated subs, prepare an order incorrectlv, and eat or sive away rood without per- mission. When emplovees make mistakes, che expense is sub- Dosed to come out of their paycheck. Unauthorized eating and giving away food are grounds for immediate dismissal. How- ever, team leaders are reluctant to report any accidental or de- liberate wastage, even when confronted by the restaurant manager about the stores high wastage over the previous week and month. One team leader who reported several accidental wastage Icidents eventually quit after being snubbed by coworkers who attended the same college classes

Cincinnati Super Subs gives emplovees a food allowance if they work continuously for at least four and one-half hours.

Staff complain that the allowance is meager and that they are often ineligible for the rood allowance because many shirts are only three or four hours. Emplovees who work these shorter shifts sometimes help themselves to food and drinks when the managers aren't around, claiming that their hard work justifies the free meal. Some also claim the food is a low company expense and makes up for their small paycheck, relative to what many of their friends earn else-where. Several (but not most) employees give some of their friends generous helpings as well as occasional free soft drinks and chips. Employees say handing out free food to friends makes them more popular to their peers.

Five months ago, the Cincinnati restaurant's wastage (mainly deliberate wastage) had risen to the point where the two managers no longer received a bonus. The restaurant manager reacted by giving the food allowance

only to those who work for six or more hours in a single shift. This action excluded even more staft from receiving the food allowance, but it did not discourage emplovees from eating or giving awav food. However almost 20 percent of the experienced college staff left for other jobs over the next two months. Many of those who staved discouraged friends from considering jobs at Super Subs.

Morale declined, which dampened the fun atmosphere that had been experienced to some extent in past times

Relations between employees and managers soured further.

With relatively low unemployment, the restaurant manager found it difficult to hire replacements, particularly people with previous work experience of any kind. Temporary staff

Short ages required the two managers to spend more time working in food preparation and training the new staff.

Their increased presence in the restaurant signiticantly reduced delberate wastage, but accidental wastage increased somewhat as the greater number of

mexperienced scar made more mistakes

After three months, Cincinnati Super Subs' manager and assistant manager were confident that the situation had

improved, so they spent less time training stat and serving customers. Indeed, they received a moderate bonus after the third month in the store. However wastage increased again soon after the managers withdrew from dailv operations. The experienced employees started eating more food, and the new staft soon joined this practice.

Exasperated, the restaurant manager took bolder steps. He completely removed the food allowance and threatened to fire any employee caught consuming or giving away food.

Wastage dropped somewhat over the next month but is now creeping upward again

Discussion Question:

Identify the main symptoms, the problems that caused the symptoms, and recommended solutions to overcome the problems in this case study.