Z Donut: The Big Payoff
By Mike Lorden
For as long as I can remember, concerns over labor issues have cropped up in nearly every conversation with foodservice operators, among the many challenges they face. Labor ultimately is the foodservice industry’s Achilles’ heel. If labor is inadequate or poorly trained, most programs fall apart.
Often, the triumph of an operation or a brilliantly launched new initiative carry a disclaimer: “We need to improve our execution,” or “We are hampered by inadequate employee training and support.” More often than not, labor problems inhibit retail foodservice success.
Unfortunately, however, there is no such thing as a single, all-encompassing formula for success when addressing labor issues. An organization’s personality and culture have as much to do with its success or failure as its theme, concept, menu, pricing, operational efficiencies or inefficiencies and customer-service performance.
Operators that take the time and effort to completely understand and gain control over their organization’s personality and culture are in a better position to tackle their labor issues.
That was the case for Z Donut Co., the Yarmouth, Mass.-based operator of 11 Dunkin’ Donuts locations, which span a 25-mile strip of Cape Cod, Mass., known as the Lower Cape.
Sheer curiosity motivated me to seek out Elizabeth Whitehead, president of Z Donut. My confirmed addiction to Dunkin’ Donuts’ black coffee has me constantly visiting one or the other of the two newly renovated locations that are literally across the street and within sight of each other in my home town of Dennis, Mass.
Much more captivating than this curious positioning of the two facilities are the unusually high level of customer service and the rapid operational tempo evident in these locations. I was curious whether this seeming operational efficiency was a fluke or a cultural imprint. But the operational consistency and level of customer service I have witnessed during my visits to a number of Whitehead’s locations confirmed my suspicion that they have something special going on.
For those who have never been to Cape Cod, it’s a gorgeous area of Massachusetts connected to the body of the state by only two bridges. Most of the small seaside communities have year-round populations of less than 15,000 each, and it’s not unusual for a business on Cape Cod to generate up to 75 percent of its annual revenue during the high-season months of July and August.
Staffing for this summer explosion of business is a true art form. In Dennis, the year-round population of 12,500 skyrockets to almost 350,000 every year on the third week of June, transforming this easygoing beach community into a beehive of activity and traffic jams. This semi-controlled chaos lasts until Labor Day, when more than 1 million seasonal visitors exit Cape Cod.
Top-Down Support
Whitehead modestly attributes much of Z Donut’s operational consistency to the Dunkin’ Donuts corporate employee-training program, called I-Train.
“Using this web-based format is far superior and much more efficient than the old-style videotapes, and Dunkin’ Donuts is constantly adding products,” she said. “We are expanding menus, equipment and procedures, and corporate is great at staying on top of the additional training resources we need to keep everyone on the same page.”
It’s evident that Dunkin’ Donuts is supporting its franchisees and that it is migrating from simply coffee and doughnuts to a more substantial and varied food offerings for different dayparts.
While Dunkin’ Donuts may deserve some of the credit, the elevated level of customer service and the obvious team spirit and good cheer emanates from Z Donut.
When asked how she manages the labor force and crazy staffing requirements of the tourist season, all while maintaining a high level of enthusiasm and customer service in her store, Whitehead had a number of insights.
“Most of our recruiting is done by our employees; they recommend and recruit friends and neighbors. We have a great mix of all ages working all the time.”
“The majority of our seasonal help starts as early as age 14 and comes back each summer through high school and college.”
“No one ever gets put in front of the customer until they are completely trained.”
“We maintain trainers who have no retail responsibilities –– only employee training and support.”
“We have a recognition program for employee longevity that pays cash, and we have a number of folks with 5, 10, 15 and 20 years with us.”
“We survey our employees periodically to clearly understand their wants, needs, likes and dislikes.”
As a long-term employee of Z Donut herself, Whitehead recalls the early days when owner and CEO George Zografos often wore a T-shirt to work with the single word “Attitude” written on the front, and the question, “Is yours worth catching?” on the back. This has become the company’s de facto motto, Whitehead admitted, and now defines the corporate culture.
This is certainly not a scientific formula for success. The more cynical-minded could actually reject the system out of hand because it is so uncomplicated and simple.
But when an operator’s employee turnover rate is comprised primarily of the summer help returning to school, that’s the type of “labor issues” everyone wishes they had.
Michael Lorden is COO of ALM Business Media Inc., the parent company of On-the-Go Foodservice. With 25 years of retail, foodservice and consulting experience, Lorden also is an entrepreneur who developed, operated and eventually sold three retail businesses. You can reach Mike at mlorden@OnTheGoFoodservice.com