Case study on Angelos Pizza

Executive Summary

The reality is, the restaurant business is one of the toughest businesses of all. And like any other business the key goal must be to make money, few businesses survive without doing so. If Americans could choose to eat only one food for the remainder of their lives, it would have to be pizza. According to statistics from Franchise Disclosure Documents, Americans eat on average 100 acres of pizza daily or 350 slices per second. In addition, 93 percent of Americans eat at least one pizza per month, easily making pizza the number one dinner choice in the United States. A rise in convenience store locationsA shift in delivery/sit down restaurant pizza occasions to packaged pizza occasions. The lower class of Naples, Italy is believed to have created pizza in today’s familiar fashion

The first pizzeria opened in 1830 in Naples, Italy–it’s still in business today. Pizza made its way to the inner cities of the United States, New York and Chicago most notably, in the early 1900s thanks to the large population of Italian immigrants. American soldiers further prompted the dish to become very popular at the end of World War II, having been exposed to it while serving on the Italian front. Today’s largest pizza chains (Pizza Hut, Domino’s Pizza & Little Caesars) began popping up all over the U.S. in the late 1950s, early 1960s.

Angelo’s Pizza and Bistro

Angelo’s New York Style Pizza and Bistro is an upscale pizzeria and bistro serving up good old-fashion Italian food the bistro is decked out in the colors and flavor of Italy and the warm and professional staff will make you feel not only welcome, but truly valued.

Hours: Mon – Sat, 11am – 10pm; Sun, noon – 10pm

Executive chef: Angelo

Number of tables: 16

Features: Catering, Dinner, Lunch, Outdoor seating

Atmosphere: Fun

Payments accepted: Cash, MasterCard, and Visa

Products: Angelo’s offers a wide variety of flavorful pizzas, subs, succulent wings, Stromboli, pasta, salad, car zones, and a new bistro menu!

General services: Catering, Delivery, Eat-in, Phone orders, Take-out

Specialties: The pizza!!! Any kind, they’re all fabulous!

Private events: Yes

What makes this community special? The people are truly friendly and down to earth. It’s an amazing place to operate a business.

Cuisine: Bistro, Italian, Philly Steaks, Pizza

Signature dishes: Our signature dish? Pizza, pizza, pizza!!

 Brief about the industry

The current statistics on the pizza industry substantiate the perception that Americans love pizza.

• In 2011, annual pizzas sales totalled $38 billion with approximately 3 billion pizzas sold a year.
• In a given year, Americans eat 46 slices (23lbs) of pizza.
• Ninety three (93%) Americans eat pizza at least once a month.
• For every second that passes in the US, 350 slices of pizza are sold.
• Pepperoni is the most popular topping as it appears on 36% of pizza orders.
• There are 70,000 pizzerias in the US
• 9,000 of those are in New York – not surprising as pizza is often considered to be the staple fare of New York.

 Major players:

Seventeen percent (17%) of all restaurants in the United States are pizzerias, but in this 17%, who are the major players?

• In the spring of 2011, independent pizza stores owned 57% of the pizzerias in the US and control 48% of the sales but there were a number of chains identified which each contain a portion of the market.
  • The top chain, Pizza Hut, captured 12%,
  • Followed by Domino’s (8%),
  • Little Caesars (4%),
  • And Papa John’s (4%).
• 46 other top pizza chains aggregately captured 15% of the market share.

•  Domino’s Pizza
•  Circle Pizza
•  Pizza Italia
•  Cross Bronx Pizzeria
•  Angelo’s Pizzeria
•   Fancy Pizza
•  Pizza Hut

 Brief History about the company

Angelo Cameron was brought up in the Bronx, New York, and basically always wanted to be in the pizza store business. As a youngster he would sometimes spend hours at the local pizza store, watching the owner knead the pizza dough, flatten it into a large circular crust, filing it up, and then spread on tomato sauce in larger and larger loops. After graduating from colleges as marketing major, he made a beeline back to the Bronx, where he opened his first Angelo’s pizza store, emphasizing its clean, bright interior, its crisp green, red and white sign, and his all natural, fresh ingredients. Within 5 years Angelo’s store was a success and he had opened three other stores and was considering franchising his concept. ( Dessler & Varkkey, 2011, p. 703)

•   Pizza
•   Appetizers
•  Salads
•   Pasta Dishes
•  Chicken Dishes
•   Veal Dishes
•   Seafood Dishes
•   Wrap
•   Juicy Fresh Hamburgers
•   Sandwiches
•   Desserts
•  Beverages

The objective of this report is to find out the answers of three questions. Those questions are given below:

1. Identify and briefly discuss five specific human resource management errors that I am currently making
2. Develop a structured interview form that we can use for hiring (1) store manager, (2) waiters and waitress and (3) counter people/ pizza makers.
3. Based on what you know about Angelo’s, write a one page outline showing specifically how you think Angelo’s should go about selecting employees. ( Dessler & Varkkey, 2011, p. 705-706)

Analysis on the key case questions

Hire wrong person for the job:

There are drawbacks of rushing and making assumptions about people. People who work in the restaurant play a great role in its life. Restaurant’s success and its running rely on those people. Thus managers have to hire the right people for the job. This is because only the manager explains the company’s rules and regulations to all staff members and to provide the training necessary. Moreover, employee work schedules are also under his control. ( Dessler & Varkkey, 2011, p. 704)

Experience high turnover:

Angelo had is about employee satisfaction. His employees had to work for a long hour shift and some of his managers have to handle three jobs himself. And as he was not any specific training session all thing frustrated the employees as a result turnover rate increased.  ( Dessler & Varkkey, 2011, p. 704)

Have people not doing their best:

Angelo did ‘Logical Error’ because he fired an employee who used profanity sometimes and one time he did that in front of a customer. Based on that event, Angrlo fired that employee. This indicates falls in logical error because Angelo drew an unwanted conclusion from the facts. Which is a very isolated weakness and it would be improved by providing personality training. ( Dessler & Varkkey, 2011, p. 704)

Waste time in useless interview:

As for the management, it has to consider the expenses of advertising, interviewing time, interrupted customer service, training and severance pay. Each step of the hiring process expenses should be selected and calculated in terms of time and money. And a little research and planning can prove meaningful in the end. If you pay attention to all these, be sure you won’t lose.

Lack of training to undermine effectiveness:

The last error Angelo’s training process was very poor. From the case, we can see that he just trained his subordinates how to run a store which is not enough to make a manager aware about his responsibilities and duties. Angelo thought that, by working with him managers would know how to do jobs properly and it is a wrong idea. Angelo should expand and update his training process. (Dessler & Varkkey, 2011, p. 704-705)

Develop a structured interview form that we can use for hiring:

Interview is regarded as first step to pave in any career. Customer services jobs are hardest jobs and being a waiter/waitress is one of them. If you want to join this profession then you make it sure that your potential employer impress in first meeting with your personality. Interview process is based on question answer session and the employer in order to find out potential employee try to ask some tricky questions because they want only those employees who can work with their full potential and increase the good will of organization. Here is a list of some frequently asked questions which an employer can ask from you during interview for selection of waiter or waitress. By rehearsing these interview questions you can make your interview impressive and leading toward permanent job position in specific company.

Structured Interview Form

 Store manager:

A restaurant manager lives very hectic life. As evenings and weekends are the busiest times for restaurants, he should be prepared to work during late nights and weekends. A restaurant manager’s work hours and job nature are also highly irregular. He has to fill in for an absent employee, no matter what his job designation is, at the last minute. Consequently, it is very important to know all the restaurant’s operations inside out and from top to bottom. This is because being a restaurant manager does not just mean sitting behind a nice desk and making chitchat with customers. However, the pressures of making sure everything is in order almost always happen at once with a number of other responsibilities. Seeking a solution with the least possible disruptions to other operations, particularly in the serving of customers is one of his duties. A restaurant manager has to have a lot of patience for his job as many irritable situations can be provoked by uncooperative and stubborn staff and angry customers.

þ  Why do you think you want to work here?

(Identifies the image your business projects and the applicant’s motivation for applying.)

þ  Tell me about the very first job you ever did that you got paid for. What did you learn from that job?

(Take the applicant through their entire work history by asking these questions for each position.)

þ  What do you think it takes to be a good (job title)?

(Does the applicant see the job the same way you do?)

þ  Tell me about a time you were the leader of a team. What did you enjoy about the experience?

(Work ethic, pattern of career growth (or lack of it), ability to meet challenges)

þ  What was difficult about it?

(Ability to direct and motivate others)

þ  What do you like/not like about the restaurant industry and why?

(Understanding of and commitment to industry)

þ  When I call your last manager, what will he/she tell me about you?

(Past performance is a good indicator of future performance.)

þ  What are you most proud of in your career?

(Personal motivators)

þ  If you could change one bad decision you’ve made in the past, which would it be and why?

(Ability to learn from experience)

 Waiters and waitress:

Half of success secret of restaurant business is in such concept as service or, more precisely, in the staff. The waiter should be kind, polite, accurate, to know two – three languages and to understand what the client orders. The majority of waiters mechanically answer the client “yes”, not trying to find out its requirement at all. The demand for the professional waiters today exceeds the offer.

Remember the most important traits employers look for in a great server is friendliness and organization. So during your interview remember to smile and make eye contact. Have examples ready of times when you had to work quickly and under pressure while maintaining your poise.

  What do you love about working in a restaurant?  What do you hate?

(Look for Compatibility, not Just Likeability.)

  What are the basic rules for waiters?

(Always greet with a Smile)

  What do you know about service and different types of menus?

(Come prepare and know the menu.)

 Have you ever any experience for such kind of job?

(Past performance is a good indicator of future performance.)

  What is the most difficult part for being a waitress/waiter?

(Offer to answer before it’s asked.)

þ  How can you explain menu items before customers?

(Making a difference and becoming a menu expert.)

þ  How can you handle a problematic customer?

(Present yourself well. Leadership skill and management techniques.)

þ  How can you convince customer for another choice if his/her choice is not available at that time?

(Customer management skill and develop strategies to grow the business)

þ  How can you manage stress at work place?

(Have some fun into you or not.)

þ  Why do you want to join us?

(Assess the candidate’s desire factors and the interviewer wishes to see how much they know about the company culture.)

 Pizza-makers / counter people:

 The works for a pizza maker will start with making pizzas, doing dishes, working with customers, cash register, prepping food in the morning. Occasionally opening and closing while training new employees.

þ  Why should we choose you for this job?

(Candidates positive thoughts and behavior approach for the task)

þ  Do you have any earlier work experience?

(Quality of presenting a brand and quality of performance.)

þ  Have you passed hygiene pass?

(Ensuring quality service and health satisfaction.)

þ  What does the word “pizza” mean to you?

(Creativity that will grow up as a brand.)

þ  Do you have any references?

(The answers are very enlightening about their attitude, personality and commitment.)

þ  What are your strengths?

(Personal motivation and a background judgment.)

þ  What about weaknesses?(More than just two)

(Capability of speaking truth.)

þ  Explain more about your hobbies?

(Knowing about personal interest and willingness of staying.)

þ  If you had to choose family or work, which one would you pick and why?

(The answers are very enlightening about their attitude, personality and commitment.)

þ  Do you have any ideas how to make our pizza business better?

(Understanding of and commitment to industry)

FINAL Rating form: (only use for the interviewers)

Candidate:_______________________________ Rater:_____________________________

Action:

¨      Highly Recommended for Position

¨      Recommended for Position

¨      Not Recommended for Position

Interviewer’s Signature:

Date:

Outline for how Angelo’s should go about selecting employees:

Employee selection process is basically starts with initial sorting of recruited applicants and ends up with giving job joining letter. Before going to select applicants as a job candidate some employee selection steps should be implemented.

Identify vacancy:  The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company. These contain:

¥  Posts to be filled

¥  Number of persons

¥  Duties to be performed

¥  Qualifications required

Prepare job description and person specification:

Angelo needs to be certain about whether we need temporary or full time employees. Normally for waiters and waitress part time selection is better than full time employees. Because this will minimizes the effect of employee absenteeism. But store managers and pizza makers should be selected over the full time basis.

Advertising the vacancy:

The first thing should be determined about the source of recruitment. Angelo’s pizza restaurant is a small business so in small business we do not need candidates having full of skill and experiences. Therefore recruiting waiters and counter people advertisement can be given in colleges and business schools. But for the store managers and counter people we can give advertisement on newspapers and found people with least experiences.

Managing the response:

After receiving an adequate number of responses from job seekers, the process of resume begins. This is a very essential step of the recruitment selection process cause selecting the correct resume that matches the job profile is very important. Naturally it has to be done competently by a person who understands all the responsibilities associated with the designation in it’s entirely.

Short-listing:

The next step of selecting employees is screening the candidates. This step deal with short list the application form and select the candidates which match with our most possible desire criteria. These selected employees will be called for the interview session.

Arrange interviews:

For interviewing candidates we would like to go with the personal interview session with a panel of judges. And the judges will be asked all the candidates the same types of questions. So the question is a structured format interview type, consists of some sort of question based on situational and behavioral judgments. This step is termed as preparation for interview.

Conducting interview and decision making:

A panel of judge calls the candidates and takes the interview one by one with same questions. Based on the answers provided, the panel will evaluate the candidates independently. After that the selected person will ask for further process which is honesty and personality test.

Now at the final stage candidates may ask for queries about the organization and this will examine candidates’ interest over getting job. And in this stage references of the candidates will be checked. Then the candidates will be provided with final decision of selection.

Recruitment Cycle

It is assumed that it will take maximum 50 days to complete the whole recruitment process. The breakdown of the 50 days as follows:

Total                                                                               =50 days

 Suggestion:

It is very important for all restaurant owners to know the technique involved in interviewing potential employees. Recruiting the wrong employee can be very costly for any restaurant. So, be attentive when hiring an employee.

Successful Developments for Angelo’s Pizza As we can learn from Angelo’s early attempts to repeat his first successful operation, there are drawbacks to rushing and making assumptions. Luckily, for Angelo, he has seen the result of a lack of planning, and he can change his errors before trying to branch out into more stores and possibly franchising.

ü  Angelo first needs to start a business strategy. A business plan will outline his strategic goals and help Angelo to determine the employees he needs to develop. Certain businesses want to attract and maintain certain people.

ü  Angelo has seen from his previous attempts at rushed hiring. Angelo has to develop a plan that identifies the characteristics and skills that successful applicants need to possess before he can begin developing his staff.

ü  Once Angelo knows the person he hopes to recruit for his business, he needs a comprehensive plan for hiring them. Angelo needs to develop a screening process for applicants that include hiring guidelines, reference checking, extensive interviews and future skills assessments for the skills the job requires.

ü  He may want to do background checks for theft. Once Angelo has job candidates he is satisfied with, he has to develop human resource strategies, which will ensure their success. He will need training programs that are recognized so that each employee understands the role expectation. Angelo needs to be willing to devote

 Conclusion

Sufficient time to the training way before he jeopardized his business reputation, by allowing unskilled workers to act in his stores. Angelo needs to develop a set compensation packages for both wages and benefits. You should take into consideration many factors when beginning to recruit your restaurant. All these include human resource development and the requirement of employees. Logistics plays an important role as well as effectual management. The number of employees required by a restaurant relies upon the scale of its operation, the level of mechanization, and the system of work

Before Angelo moves on to build more stores, he must identify and avoid some of the pitfalls that have ruin lots of businesses. Failure to recognize the traits necessary for the position, and using extensive advertising with no right candidate or skill set in mind. Angelo could produce better applicants if he were more specific as to the requirements of the position. By doing so, Angelo will recognize his needs and skills required to fulfill the job.