Organizational DetailsOrganizational Details

• 19 Locations19 Locations• 758 employees in the 758 employees in the

restaurantsrestaurants• 3 employees in 3 employees in

corporate/administrativecorporate/administrative

Driving PrinciplesDriving Principles

• Highest quality foodHighest quality food• Fastest serviceFastest service• Limited menuLimited menu• Simple operationsSimple operations

Only Restaurant to Win Only Restaurant to Win Malcolm Baldrige Malcolm Baldrige

National Quality AwardNational Quality Award

Meaningful, Measurable, & Sustainable Meaningful, Measurable, & Sustainable ResultsResults

• High customer satisfaction score 97.1%High customer satisfaction score 97.1%• Low customer complaints 1:3400 Low customer complaints 1:3400

transactionstransactions• Low employee turnover, 0%, 2%, 58%Low employee turnover, 0%, 2%, 58%• High employee satisfaction scores 95.4%High employee satisfaction scores 95.4%• Low injury rate 1:173,000 hours workedLow injury rate 1:173,000 hours worked• High health scores 98% High health scores 98% • 24 years same store sales and profit 24 years same store sales and profit

growthgrowth• 24 years of same store customer 24 years of same store customer

increasesincreases

Fastest Service TimeFastest Service Time

Tip: Tip: Work your way Work your way to a to a new waynew way of thinking. of thinking.

Baldrige Criteria: Assess and ImproveBaldrige Criteria: Assess and Improve

LeadershipLeadership

Strategic PlanningStrategic Planning

Customer & Market FocusCustomer & Market Focus

Measurement, Analysis & Measurement, Analysis & Knowledge Mgmt.Knowledge Mgmt.

Human ResourceHuman Resource

Process Mgmt.Process Mgmt.

Pal’s Approach: Pal’s Approach: Performance ExcellencePerformance Excellence

• Led and directed by top Led and directed by top leadershipleadership

• Performance Excellence is the Performance Excellence is the driving principle of how we will driving principle of how we will managemanage

• Develop internal store-level Develop internal store-level expertsexperts

• Allocate the needed resources Allocate the needed resources (investment not an expense) (investment not an expense)

Tip: Tip: Realize what business you are Realize what business you are in.in.

ServiceService

EducationEducation

ManufacturingManufacturing

LeadershipLeadershipLeaders get the behaviors they exhibit and reward!Leaders get the behaviors they exhibit and reward!

Tip: Tip: Develop leaders not policy Develop leaders not policy followers. followers.

• Treat store level leadership as Treat store level leadership as President/CEO/Chairman/Owner of President/CEO/Chairman/Owner of that operationthat operation

• Reality-based communicationsReality-based communications

LeadershipLeadershipLeaders get the behaviors they exhibit and reward!Leaders get the behaviors they exhibit and reward!

• Leaders on the front-line Leaders on the front-line leading by exampleleading by example

• Make it easy for Leaders to Make it easy for Leaders to focus on the right thingsfocus on the right things

• Design leadership system for Design leadership system for sharing best practicessharing best practices

LeadershipLeadershipLeaders get the behaviors they exhibit and reward!Leaders get the behaviors they exhibit and reward!

Expected leadership character Expected leadership character traitstraits

Decisive – Responsible – OrganizedDecisive – Responsible – Organized

Bold – Truthful – SincereBold – Truthful – Sincere

Dependable – Punctual – ThoroughDependable – Punctual – Thorough

Enthusiastic – Creative – Initiative Enthusiastic – Creative – Initiative

LeadershipLeadership Excellence Assessment Excellence Assessment

• What is your company’s culture & character?What is your company’s culture & character?• Are Vision, Mission, Values, & plans well Are Vision, Mission, Values, & plans well

deployed?deployed?• Are your communications effective at getting Are your communications effective at getting

all employees to understand?all employees to understand?• Does communication support facing reality Does communication support facing reality

head-on?head-on?• Have you built the right leadership team?Have you built the right leadership team?• Does leadership stay focused on Does leadership stay focused on

the right things?the right things?

StrategyStrategyTurn strategy into reality!Turn strategy into reality!

• Compete where you can winCompete where you can win• Deploy plans company wide and Deploy plans company wide and

verify everyone’s understandingverify everyone’s understanding• Be clear, focused, and 100% Be clear, focused, and 100%

deployeddeployed

• Measure your progressMeasure your progress

Tip: Tip: Bring your strategies and Bring your strategies and action plans to the point of action plans to the point of

truth.truth.

StrategyStrategyExcellence AssessmentExcellence Assessment

• What is your competitive position?What is your competitive position?• Who are your competitors?Who are your competitors?• What drives your success relative to the What drives your success relative to the

competition?competition?• What future competitive changes do you expect?What future competitive changes do you expect?• What are your primary strategic challenges?What are your primary strategic challenges?• Are you competing where you can win?Are you competing where you can win?• How do you develop and deploy How do you develop and deploy

action plans?action plans?• Do all employees know their part in the Do all employees know their part in the plan?plan?

A Culture Focused on CustomersA Culture Focused on CustomersActively listen to the voice of the customer and respond!Actively listen to the voice of the customer and respond!

• Focus on Lifetime Value - Focus on Lifetime Value - - not per transaction profits- not per transaction profits

• Search for ways to delight that create loyaltySearch for ways to delight that create loyalty• Be outstanding at recovering from mistakesBe outstanding at recovering from mistakes• Find the right-fit marketing Find the right-fit marketing

partners partners

Tip: Tip: Communicate Memorably.Communicate Memorably.Pal’s advertising & marketingPal’s advertising & marketing

• Identified Identified Creative Energy GroupCreative Energy Group as the as the right marketing/ad agency partner right marketing/ad agency partner

• Ad budget is < 25% of national Ad budget is < 25% of national competitorscompetitors

• Advertising must be clear, compelling and Advertising must be clear, compelling and creativecreative

• ““Hit ‘em where they ain’t” strategyHit ‘em where they ain’t” strategy

• Dominate the media you chooseDominate the media you choose

Pal’s Advertising AxiomsPal’s Advertising Axioms

Exceptional food photography is keyExceptional food photography is key

Billboards within one mile of each Pal’sBillboards within one mile of each Pal’s

Time radio to “hungry” day-partsTime radio to “hungry” day-parts

Be braveBe brave

Tip: Tip: Communicate Memorably.Communicate Memorably.Pal’s advertising & marketingPal’s advertising & marketing

Customer & Market FocusCustomer & Market FocusExcellence AssessmentExcellence Assessment

• Who are your most loyal customers?Who are your most loyal customers?• What is your strategy for creating What is your strategy for creating

customer loyalty?customer loyalty?• What are your methods to hear the What are your methods to hear the

wants and desires of the customers?wants and desires of the customers?• Have you created a culture truly Have you created a culture truly

obsessed on delighting the customer?obsessed on delighting the customer?• Are your employees allowed & Are your employees allowed &

encouraged to make decisions to solve encouraged to make decisions to solve problems for the customer?problems for the customer?

Measurement & AnalysisMeasurement & AnalysisRequire meaningful, measurable, and sustainable Require meaningful, measurable, and sustainable

results!results!

• Focus on the vital few measuresFocus on the vital few measures• Use a balanced score card Use a balanced score card

approachapproach– Customer dataCustomer data– Employee dataEmployee data– Operations dataOperations data– Financial dataFinancial data

• Only data & reports that drive Only data & reports that drive understanding & understanding & actionaction

Tip: Tip: Do not waste energy Do not waste energy and resources responding and resources responding to noise.to noise.

Measurement & AnalysisMeasurement & AnalysisRequire meaningful, measurable, and sustainable Require meaningful, measurable, and sustainable

results!results!

Measurement & AnalysisMeasurement & AnalysisExcellence AssessmentExcellence Assessment

• How do you select what to measure?How do you select what to measure?• Does your system drive true Does your system drive true

understanding?understanding?• How do you review company performance?How do you review company performance?• What analyses do you perform?What analyses do you perform?• Do reviews create priorities for Do reviews create priorities for

improvement?improvement?• How do you share performance How do you share performance

data? data?

People ResourcesPeople ResourcesTo win you must field a winning team!To win you must field a winning team!

• Hire for character then teach the Hire for character then teach the skillsskills

• Focus on developing super stars Focus on developing super stars not average employeesnot average employees

• Integrate the principles of Integrate the principles of Performance Excellence into all Performance Excellence into all trainingtraining

• Focus on training effectiveness not Focus on training effectiveness not efficiency efficiency

Tip: Tip: To succeed you must out To succeed you must out train your competition!train your competition!

How Pal’s Does ItHow Pal’s Does It

• Double-digit annual same-store Double-digit annual same-store sales growthsales growth

• Double-digit net profit margin Double-digit net profit margin growthgrowth

• Delighted customersDelighted customers

People Resources

1. Values-Based Hiring

2. Training

Schedule, track, verify

3. Peer reviews

www.SysDine.comwww.SysDine.com

People Resource: People Resource: Management ToolsManagement Tools

People Resources

Training Effectiveness

Certification Exams

Values-Based Hiring

Curriculum Creation

Training: Tutorials

Management Reporting

Peer Reviews Proficiency

Tracking

People Resources: People Resources: The ImpactsThe Impacts

EmployeesFood Cost

Labor Cost & Productivity

Sales & Market Share

Customer Delight

Service Quality

Operating Profitability

Inspection Scores

Food Quality

Employees Affect Everything

Values-based HiringValues-based Hiring

Values-based InterviewingValues-based Interviewing

Peer ReviewPeer Review

Pal’s Business Excellence InstitutePal’s Business Excellence Institutewww.busexcell.comwww.busexcell.com

Outstanding training makes Outstanding training makes the difference the difference

People ResourcesPeople ResourcesExcellence AssessmentExcellence Assessment

• Do your H/R practices support high performance?Do your H/R practices support high performance?• Does your process identify the right new hires?Does your process identify the right new hires?• How effective is employee training?How effective is employee training?• Does training support a strong customer focus?Does training support a strong customer focus?• How does training contribute to business success?How does training contribute to business success?• Do all employee cooperate and work effectively as Do all employee cooperate and work effectively as

a team?a team?• Do you seek out & use employee Do you seek out & use employee

improvement ideas?improvement ideas?• How do you assess employee How do you assess employee

performance & create improvement performance & create improvement plans? plans?

Process ManagementProcess ManagementFlawlessFlawless operational execution is required to be in operational execution is required to be in

the game!the game!

• Use a rigorous process/product Use a rigorous process/product introduction model (introduction model (Quality Quality designed indesigned in))

• Focus on the right issuesFocus on the right issues• Use a thorough problem Use a thorough problem

solving processsolving process

Process ManagementProcess ManagementFlawlessFlawless operational execution is required to be in operational execution is required to be in

the game!the game!

Restaurant Critical Success FactorsRestaurant Critical Success Factors• Taste of the productTaste of the product• Presentation of the foodPresentation of the food• Value perception by customersValue perception by customers• Speed of ServiceSpeed of Service• Level of hospitalityLevel of hospitality• Food & labor costFood & labor cost

Process ManagementProcess ManagementFlawlessFlawless operational execution is required to be in operational execution is required to be in

the game!the game!

Tip: Tip: Standardization is vital to Standardization is vital to excellence and success that excellence and success that can be replicated!can be replicated!

Process ManagementProcess ManagementExcellence AssessmentExcellence Assessment

• What makes the key product a What makes the key product a signature?signature?

• What sells best?What sells best?• What makes the presentation What makes the presentation

unique?unique?• Why do customers come back?Why do customers come back?• What makes the service unique?What makes the service unique?• What is the sales mix and how does it What is the sales mix and how does it

impact profit?impact profit?• What is food cost?What is food cost?• What is labor cost?What is labor cost?

Leadership + Superstars + Outstanding Leadership + Superstars + Outstanding Products + Simple & Effective Systems + Products + Simple & Effective Systems +

Efficient Layout & Flow = Efficient Layout & Flow =

SuccessSuccess