Every business needs a structure that clarifies the role that each member performs. This helps everyone understand who reports to who, and who is accountable for what outcome. Freshii is the fastest growing restaurant franchise in the world and is pushing the status quo. It is thriving because of its unconventional, flat and progressive organizational structure. Freshii is a fast causal restaurant franchise that offers healthy customizable food options. It was founded in $2005$ by $23-$year$-$old Matthew Corrin, and has now spread to hundreds of locations worldwide. It was his dream to change the way the world eats. He grew the brand by finding like$-$minded franchise partners who shared his dream and values, as well as building a passionate team at the home office. Freshii headquarters uses a flat organizational structure that empowers its employees. All employees are considered partners.

Video Case

Freshi has been described as the "new generation of quick$-$service dining." The company was founded in $2005$ by $23-$year old Matthew Corrin and has expanded to over $300$ locations worldwide. Today, it is the fastest growing restaurant franchise in the world and receives over $4,000$ franchise applications every year. Freshii specializes in fresh, healthy, customizable food options such as burritos, wraps, soups, salads, and frozen yogurt. As a rapidly expanding company with locations around the world, it has an expanding operation to watch over and a very specific mission to uphold: to change the way the world eats.

To achieve its goals, Freshii needed to establish an organizational structure that supports the mission of the company and clarifies the role of each organizational member. There are different types of organizational structures. It's very important that a company select the specific type of organizational structure that fits the objectives and culture of the particular company. To meet its goals, Freshii adopted a flat organization structure.

Company founder Matthew Corrin's dream was to make it easier for people to eat healthier and live better lives. With this goal in mind, he felt it was essential to team up with like$-$minded franchisees and members of his administrative team that shared his objectives. At the Freshii corporate office, the leadership team is guided by the company's founding principle of "changing the way the world eats." At Freshii headquarters, a flat organization is in place, where all team members have ownership in their particular area of expertise. By using a flat structure, the company removes excess layers of management that can often slow or completely stall important communication and decisions. At Freshii, every employee $($even interns$)$ are considered company partners and stakeholders in the company. The firm's lean corporate team is empowered to execute on all elements of their area of expertise and make a significant impact on business operations.

The flat organizational structure works very well with the corporate culture at Freshii. Its motivated, like$-$minded workforce lives by the company core value of "Talk is Cheap. Execution Sets You Apart." At Freshii, team members are encouraged and empowered to step up and excel in their jobs and see their suggestions move forward from initial idea to full implementation. Corporate staff are not restricted by a formal organizational chart or title. The team works together at standing desks in a shared space where personal interaction flows easily between every level and department within the company. The corporate team also practices what its corporate mission preaches about fitness and health by holding company$-$wide competitions where team members display the healthy lifestyle they promote.

Freshii leadership has encouraged its franchisees to embrace the same culture and employee structure used at the corporate headquarters in their own stores. The franchise stores have responded by maintaining lean and efficient operations with employees on board that share the company's core values. The headquarters staff stays in continuous communication with the franchisees by sharing corporate ideas with them as well as listening and implementing suggestions proposed by franchisees. It's safe to conclude that a flat and lean organizational structure was appropriate, and has worked well for Freshii.

Today, Freshii continues to expand into new markets around the world. Despite that challenge going forward, it$$s managed to keep what$$s unique about its organizational culture and pure about its mission: helping people eat healthier and living better lives.

Discussion Question $1$:

Post your answer no later than end$-$of$-$day Thursday

Organizations like Freshii follow some of the principles of Henri Fayol, such as the esprit de corps. What is esprit de corpsand how is it developed at Freshii?

Is the decision making at Freshii centralized or decentralized? What does that mean for the company$$s operations? Do you think this strategy is motivational?