Regulatory Environment As a result of Kudler Fine Foods' (KFF) decisions to implement a catering service and contract for organic produce with local growers, KFF will close multiple departments at three stores simultaneously and layoff several workers. The potential outcomes of the company's proposed actions are analyzed in this paper with attention to employment law, supply contracting, regulatory issues and product liability. Temporary Departmental Closings KFF has decided to implement a catering service prompting the closing of the deli, confectionary and on-site prepared meal departments for three months at 3 different store locations simultaneously. The following questions are relevant to the scenario: Can Kudler legally shut down these departments? Employment-at-will is defined in the KFF employee handbook as the employer or employee having the right to terminate the employment relationship at any time for any reason. According to the employee handbook, "you or KFF [may] terminate your employment at any time for any reason" (University of Phoenix [UOP], 2006). Therefore, KFF does indeed have the legal right to move forward with their plan. What obligations does Kudler have to its employees? If KFF moves forward with laying off employees, "word of cutbacks should come directly from an affected employee's manager and not from a mass e-mailing or companywide announcement [m]ore lawsuits are initiated and contemplatedand more emotional damage is doneduring that short moment when a manager lets [an employee] go." (Hicks, 2001). What alternatives to layoffs could KFF consider and why? Alternatives to consider include retraining, reassignment, using banked leave time, early retirement, voluntary furloughs and reduced workweeks (Smith & Murphy, 2001). The ethical dilemma at play is KFF's need for cutting costs coupled with the need to increase profits with the catering business line. Contracting with Local Growers A contract is a legally binding and enforceable voluntary agreement. Should Kudler enter into contracts with local growers? Contracting with small local growers will be a win-win for both parties given the following information from CNN: Supplying large grocery store chains is often too big a job for small organic farms, and many of the small, local grocery stores have been eaten up by larger ones, creating a problem for many organic farms, said Bob Scowcroft, executive director of the Organic Farming Research Foundation. "While there's an element of truth around bigger growers impacting smaller growers, it's not really either of their fault," Scowcroft said.
Each department within Kudler Fine Food's organization implements certain business process with which they conduct their daily business functions. Therefore, some departments within Kudler may experience some process changes if a contractual relationship with local growers were to occur. An area that may receive an increased change in business process would be the legal area. "Kudler uses very few custom forms, preferring instead to use forms (contracts, order forms, etc) that are supplied by the parties the company is dealing with. For example, the leases on the stores were contracts supplied by the lessors. The few customized forms the company uses were obtained from "of-the-shelf" computer programs and slightly modified by Kathy or her assistants" (Apollo Group, 2003). Since Kathy Kudler is the primary legal decision maker, along with counsel from her sister-in-law and lawyer Anne Shousha.
This is due to the symbiotic relationship Walmart has to its consumers, they are able to offer lower prices in more locations and consumers desire affordability and proximity. Despite the obvious domination of the economy by Walmart, less conventional producers and consumers are present and on the rise. Local rather than global and small rather than large, the increase of these less conventional manners of production can be seen in the increase abundance of farmers’ markets, Community Supported Agriculture (CSA), and community gardens. Farmers’ markets are common areas where farmers meet on a regular basis and sell various fresh produce directly to the consumers. The number of farmer’s markets between 1994 and 2014 has increased from around 2,000 to 8,000 (ers.usda,gov). Farmer’s offer an aesthetic that Walmart cannot provide—the opportunity to be personable. The consumer is able to see who grew the food, ask how it was grown, and will not be dazzled by fancy packaging or
Along with being the world's largest retailer, Wal-Mart is also the world's largest grocer. A full grocery center has been added to many of the Wal-mart's nation wide. Wal-Mart's most current goal is to become a player in the organic food market. Adding organic foods to...
PepsiCo can potentially acquire California Pizza Kitchen and integrate it in the company’s decentralized management approach. Since PepsiCo executives have experience in the quick service food industry, it should not be a reach for the company to successfully run this casual dining restaurant. For this venture to be successful, it is imperative that management cut down the operating costs at California Pizza Kitchen through the PepsiCo Food Systems distribution network and improve on the 3.1% operating margin that California Pizza Kitchen is currently operating at.
...gree and believe that they could get real results if everyone would consistently apply the company’s principles. I have learned personally in the business world consistency means a lot, all employees should have the same consequences. By letting go employees, managers and executives shows that the rules apply to all levels. It will cause everyone involved to have more respect for the company even if they don’t agree with the decision.
Steven Shapin is an expert when it comes to telling people the reality of the situation. In his, article “What Are You Buying When You Buy Organic?” Shapin exposes and explains the truth behind the word organic. He explains that our view on organic is not a reality. The small farms that we picture in our heads are really just big business in disguise and these big businesses are trying to do good by supposedly not using harmful pesticides. Which are supposed to not damage the environment but in reality they are probably not making any sort of difference. Some people care about the environment, while others are buying taste when it comes to organic food but using different pesticides are going to help the taste, only freshness tastes the best.
Happy Hat, a U.S. national chain of frozen yogurt stores with about 500 stores in 40 states is asking for assistance with its business processes. The average number of visitors per store has held constant over the past several years, but revenues per store are down by an average of 10%, and many stores are no longer profitable. The client suspects that a large amount of inventory is being thrown away unused at the end of each day. At the same time, customer polling suggests that the yogurt flavor customers want is often not available, even when the flavor is posted on the menu. People also complain about stores being closed when they visit. Now, the chain is facing increased competition from frozen yogurt sold in 24-hour grocery stores. Happy
If we do not follow the process, correctly there will be a risk of lawsuits. First, we must start by freezing all hiring, releasing all temporary employees, and then employees who are considered part-time (twenty –hours or less). The part-time employees are excluded from The Federal Worker Adjustment and Retraining Notification Act, and this will simply the daunting process (Plant Closings & Layoffs, n.d.). Next, will begin looking at seniority this is one of the safest ways to proceed in the layoff process and reduce any discrimination accusations (Fallon & McConnell, 2007). While some new younger employees may have needed skills, we must stick to policy. However, we will also consider attendance, performance reviews, and behavior. Each department manager will complete a list of employee that have the least seniority or meet the guidelines set for layoffs. Once the lists are completed by each department manager, operation managers, and human resource managers will review the list and provide feedback. The administration will calculate the number of full-time employees that will be laid off after temporary and part-time employees has been subtracted from the fifteen percent.
All cooking and baking for the fast food will be done in the kitchen facility. This facility will be equipped with computerized deep fryers, commercial freezer and refrigerators, preparation tables, stoves, ovens, and other related equipment. One employee and one chef will be in charge in the kitchen.
This case study will address many issues facing Wawa in an attempt to make the store better able to meet and surpass consumer expectations. The first problem is the biggest problem that faces any retail business, shrinkage. Wawa food department receives food and then sells it. Because of universal food handling regulations as well as a commitment to consumer safety, Wawa will not sell any products that are out of code meaning past its expiration date and time. Any food that is out of code and thrown away is at a cost. Different products have vastly different profit ratios.
The cafeteria serves about one hundred and fifty residents of Cambridge Hall and approximately one hundred residents from Nottingham Hall. The cafeteria serves hot foods, salads, snacks, sandwiches, and beverages. The data has given me information on the percentage of customers that preferred a hot meal (interactive and precooked) to snacks, the ratio of customers that prefer precooked hot meals over an interactive hot meal, line formation, service times at the different stations, arrival times and the location of the different stations. I also learned that the peak hours of operations are from 5:00 p.m. to 6:30 p.m. and that the cafeteria has two cash registers available but only one is being utilized during the peak hours. If customers decide on a hot meal there is a 2 to 1 ratio that customers will purchase a precooked meal over an interactive meal. Through an informal customer survey, reasonable waiting times were established for the precooked line (5 minutes), the interactive line (10 minutes), and the cashier payment line (1minute).
From a legal standpoint the in the Food Service Industry, there are certain laws and regulations to be met prior to entering. For example, Domino’s has to meet strict health and insurance requirement’s, such as Business Property, Business Liability, Business Crime, and Worker’s Compensation Insurance to Operate a business. They’re other competitors such as Pizza Hut and Papa John’s that have to purchase these insurance to protect their business. Some of the protection covered by these Insurances are property damage, in case of a fire; Business liability, that protects them from any accident that may occur at the restaurant, or illnesses that the food may cause; Business Crime, covers theft and robbery, and Workman’s Compensation, that represents the interest of injured workers in the workplac...
From a food and beverage manager's perspective - What are the important characteristics and procedures of a food and beverage establishment in relation to its size, type, market, design, planning and organization?
Krepps, M. (2007). Industrial inefficiency and downsizing: A study of layoff and plant closures. New York: Garland Publishing.
The restaurant industry has become quite competitive in recent times. In an effort to cut costs restaurants are taking serious measures to improve their performance in relation to their competitors. Two of the most important steps that restaurants have undertaken in recent years are: