Bubba Gump’s Employee Retention Strategy
The United States is nation dependent on restaurant industry, over the past 60 years the allocation of the family food dollar toward restaurants has grown from 25% in 1955 to 47% in 2012. Bubba Gump, a young restaurant company (founded in 1996), leveraged a brand based on the Forrest Gump movie (1994). Scott Barnett, President and CEO knew his brand would gain immediate recognition. In the highly competitive hospitality industry all restaurants are looking for the competitive advantage, capturing as much of the food dollar expense. In 2001, Mr. Barnett fully understood that most new brands must differentiate themselves from similar concepts by quality food, excellent customer service and consistency across all units. (Case study: Bubba Gump Shrimp Co. 2007) He facilitated a program centered on a “culture of care and concern for people”. It the late 1990’s, Bubba Gump was facing a management retention issue and was positioned for aggressive growth. The combination did not align. We will diagnose and provide an aligning strategy for reducing management and employee turnover, as well, specify career paths for management, empowering Bubba Gump Growth.
Organizational Fit and Culture of Excellence
“Culture can become a “secret weapon” that makes extraordinary things happen” (Katzenbach, J. n.d)’s In recognition of a talent retention problem, (Late 1990’s) Bubba Gump Shrimp set out to two goal’s, 1). Improving unit level management retention and 2) Increasing same store sales. (Aamondt, M. 2012) The tasks to achieve these two goals required a change for the status quo, create a culture all employees could embrace, reinvent the hiring process to attract the right individuals and empower the teams to succeed.
Research. A restaurant industry study in 2000 stated that employers were the reason for turnover. Restaurant management primary reasons low job satisfaction and organizational commitment were low pay, long hours and limited time with family. (Prewitt, M. 2000) Despite the employer dissatisfaction with the results, it was not a surprise. Unknown too many employers in the restaurant industry was the cost of losing an employee is 1.5 times their salary. (Aamondt, M. 2012). In a recent study by Sigma Assessment Systems, stated the third most common reason for employee turnover is company culture. Company culture can be defined as the reward system, the strength of leadership, the ability of the organizations to elicit a sense of commitment on the part of workers, and its development of a sense of shared goals. (Sigmaassessmentsystems.com 2013)
Development. The Culture Cycle, effective culture can account for 20-30 percent of the differential in corporate performance when compared with “culturally unremarkable” competitors. (Campbell, D. December, 2011) Scott Barnett and leadership team understood this differentiation of strong company performance and designed Bubba Gump’s people focused...