Getawayconcluded that 40 cabins would be the minimum efficient scale for a Getaway Outpost. From a financial aspect, what does this mean? What are the advantages or disadvantages of having only 20 cabins? What are the advantages or disadvantages of having 60 cabins at one outpost?

owned inn in Rockport, Massachusetts that his grandparents had built in 1945. After having worked every frontline role in his family's inn, Gilsey studied marketing in college, and moved to New York City, where he gravitated back to hospitality, taking on managerial roles at the Greenwich Hotel in Tribeca and the Baccarat Hotel in Midtown. "Jon and Pete needed a hospitality person," he explained, "and it was easy to make an impact." Gilsey recounted what he encountered upon joining the team: "I tell lots of people who are in their first few months at Getaway that I spent my first few months looking for another job. It was chaotic, it was crazy, and there was a lot of work to do. As the first person to oversee the operation, I had a team of two and two locations. Those people were working seven days a week, around the clock, picking up the phone, making the beds, making sure the roads were plowed." With one employee at each Outpost, the business depended crucially on those two people. "That was the most urgent thing I saw," Gilsey noted. "If those two people couldn't make it to work, we literally didn't have a product to deliver." Also, the breadth of their jobs was overwhelming. "The same person who was under the cabin fixing the hot water heater, wearing overalls and covered in mud, would then have to get into the cabin to make the bed with clean, white linens. Those employees weren't overseeing a lot of cabins, but they were overseeing a lot," explained Gilsey. A challenge was that the limited number of cabins on each Outpost generated a small amount of revenue, which didn't support a lot of labor. "From a model perspective, it breaks at a certain point," explained Gilsey. "You can't really justify the right number of roles and responsibilities, if they're to be supported by such a small amount of revenue." Gilsey, Staff, and Davis began adding cabins to each Outpost to make the model work. The New York Outpost quickly scaled to twelve cabins, and Getaway V mound its Mour Hamnehira Autoast to s now sits in Incom Mon Homeshira that could sunnort mars Aa ) ) APR 3,023 A W X 27bills M Case study Franchising BOOK @ Human Resource.. 3 cinnabon cinnabon franchisi.. explained Gilsey. "You can't really justify the right number of roles and responsibilities, if they're to be supported by such a small amount of revenue." Gilsey, Staff, and Davis began adding cabins to each Outpost to make the model work. The New York Outpost quickly scaled to twelve cabins, and Getaway moved its New Hampshire Outpost to a new site in Epsom, New Hampshire, that could support more cabins. Having made some basic assumptions about RevPARd and costs under a more sustainable labor DOjiE model, and targeting a 60% margin, they concluded that 40 cabins would be the minimum efficient scale for a Getaway Outpost (see Exhibit 6 for a representative income statement for an Outpost). "This has never been an art project," explained Staff. "It's always been our goal to build something that people value and that we believe in, and that has the properties that will allow it to replicate." Adding cabins allowed the team to develop Getaway's employee model for its onsite field teams, adding labor while pulling responsibilities away from the General Managers. For each Outpost, they hired a team of part-time Cabinkeepers, who were each paid on an hourly basis. Next, observing that the General Manager should be different from the maintenance person, they created a Facilities Manager position for each Outpost. Soon, as they added more cabins and continued to flesh out the core team, they designated one of the Cabinkeepers to be the "Cabin Captain," the General Manager's right-hand person. Eventually, they realized they were undervaluing that position, which was converted into an Assistant General Manager role. "In terms of resiliency, we need this person to be able to write the schedule, close the payroll, and do all the things that the General Manager can do, because if not, again, this whole thing would be relying on one person." To complement the efforts of the field team at each Outpost, they also deployed a centralized community team to handle guest requests, which would arrive through text, email, phone calls, and social media. Gilsey elaborated: "We want our service model to be invisible. From a very early stage, we've given guests a key code that allows them to arrive to what feels like their cabin and check in V Aa )