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Opinion Editorials

Using Pal’s Sudden Service model can make you famous for service, staff retention

(EDITORIAL) Winner of the 2001 Malcolm Baldridge Quality Award — the first restaurant to do so — Pal’s is a fan favorite with a turnover rate a third lower than the industry average. Here’s how they do it.

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It’s no accident

Regardless of your business, its focus is on people: the people you engage as customers, served by the people that you hire. It’s not about what you make, but about who you make it for, and how well the people who represent you do that. Impassioned customer engagement and employee retention doesn’t happen accidentally. It’s earned, day after day, by a devotion to establishing and maintaining your culture with the people who are hired and trained to do so.

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We all should be looking for ways to create the best customer experience by investing our energy in those things which we can control, starting with our employees and their experiences.

As we look to companies that are renowned for their customer service, such as Walt Disney or Zappos, it’s easy to say to ourselves, “Well, if I had the money and resources that those companies do, it’d be easy for me to have a more attractive experience for my customer and employee.” But there are companies much smaller in scope who deliver an amazing customer and employee experience.

How Pal’s Sudden Service succeeds

Located on the Tennessee/Virginia border, Pal’s Sudden Service is a quick-stop restaurant (QSR) with 26 stores that’s physically similar to other such restaurants, excepting that it’s a drive-thru only. However, there are many differences. When cars approach the dual drive-thrus, customers provide their order to a Pal’s employee face-to-face, rather than through a speaker.

This is such a hallmark of Pal’s that their recent advertising campaign was titled “Face-to-Face”, highlighting the speed and accuracy that come from beginning the order process talking to a person rather than a screen, allowing customers to progress through the line faster and resume enjoying their day. Speaking of their speed and accuracy, it’s legendary.

From the time of first contact with a Pal’s employee, the customer orders and receives their order within 30 seconds. By way of comparison, the next closest competitor completes the process in two minutes, four times slower than Pal’s. Now, you might well be thinking, “Great. They’re fast, we can be fast at my business, but only being fast doesn’t guarantee customer satisfaction.” And you’d be right.

It’s about more than just speed

The story of Pal’s transcends speed. Winner of the 2001 Malcolm Baldridge Quality Award — the first restaurant to do so — Pal’s makes a mistake in a customer order only once in every 3,600 orders, reports Harvard Business Review.

In comparison, that’s ten times better than their closest competitor, and the combination of speed and accuracy has won them loyalty from their customer base, as well as being a company worthy of study by competitors and management experts alike.

How do they do it, and how can we apply their methodology to our companies? It all comes down to their approach to their employees.

Retention begins with selection

Pal’s 26 locations employ roughly 1,000 workers. 90 percent are part-time, and 40 percent are between 16 and 18 years old. Given the complexities in managing this segment of the demographic, the hiring process at Pal’s begins with an extensive psychometric screener, a 60-point check to see how well the candidate is aligned with the attitudinal characteristics of Pal’s most talented employees.

“We’re believers that birds of a feather flock together,” said CEO Thom Crosby, speaking to the Harvard Business Review. “If you start having an operation with weak crew training and not a lot of really good leadership by managers, the people who apply there are the same kinds of people. We go the opposite direction.”

Training never stops

The work’s just beginning when employees are hired. At Pal’s, training isn’t a one-time event, but an intense process designed to ensure that all employees can successfully do all of the tasks involved in operating the store, with frequent rechecks to test for proficiency.

Employees new to the company receive 120 hours of training before they are allowed to work independently.

Each of the tasks that they do is accompanied by a certification test, which must be passed as well before they can work on their own.

The training is continuous: daily, in each restaurant on each shift, the company’s training software generates the names of employees that must be recertified in one of their areas of responsibility. Think of these as a form of a surprise quiz for the employee; they complete the brief test, and if they aren’t successful, they must be retrained in that area before they can do it again independently. This occurs for every employee on average 2 to 3 times monthly.

“Human beings go out of calibration, just like equipment”, said Crosby.  “We see so many operations that have training and they’re so happy when a trainee can pass a test. Then they sign off on this person as “trained” and they usually don’t revisit that person unless there’s a really severe performance issue.”

By focusing time, energy, and money on ensuring that employees don’t have the opportunity to go out of calibration with the expected standard, or to develop bad habits, Pal’s focuses on not only quality, but also culture in the same stroke.

Staff development is not a one-off event, especially for the part-time or adult learner.

By focusing on your staff as assets to be developed, rather than employees with varying levels of performance based on infrequent or non-existent training, you meet the needs of your customer and demonstrate to your employee that they matter.

Leadership never rests

At Pal’s, leadership is a serious endeavor in coaching employees. All leaders, including the CEO, are expected to spend 10 percent of their time daily teaching a specific skill to a specific employee. “At Pal’s, every leader needs to have a coaching and training target every single day,” said Crosby to Burger Business. “As CEO, I’m not exempt: Anyone is welcome to ask me my coaching target on any day.” This hands-on approach is bolstered by their master reading list, a selection of 21 books spanning leadership classics, alongside modern tomes on quality. These books are discussed at a bi-monthly book study occurring with the CEO and selected management.

This approach is also seen in how they approach their role within the industry. After winning the Malcolm Baldridge Quality Award, the company created its Business Excellence Institute (BEI) as a development arm to provide best practices to others. As a sign of their success, one of their clients, Austin’s K&N Management became the second restaurant winner of the Baldridge award in 2010.

The result of all this? The customers are unswervingly loyal, and the employees stay employed.

In an industry renowned for its turnover rates, employee turnover rate for hourly employees is one-third the industry average.

Among leaders, it’s lower still. Over more than three decades, only seven general managers have left the company voluntarily, and assistant managers have an annual turnover rate of 1.4 percent.

How do we apply this to our individual circumstances? By focusing on the customer through the lens of improving your employees, you receive dual benefit. Your employees satisfy your customer, and you’ve invested in the best walking advertisement for your company that you can: a carefully selected employee who’s been well-trained and coached to take care of your customer.

#WorkForYourWorkforce

Roger is a Staff Writer at The American Genius and holds two Master's degrees, one in Education Leadership and another in Leadership Studies. In his spare time away from researching leadership retention and communication styles, he loves to watch baseball, especially the Red Sox!

Opinion Editorials

How to turn your complaint mindset into constructive actions

(EDITORIAL) Everybody knows someone who complains too much. While being open is important for mental health, constant bellyaching is not.

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Everybody knows someone who complains too much. While being open is important for mental health, constant bellyaching is not, so here are a few tips on turning your complaints into constructive actions.

It’s important to understand the difference between “complaining” and “addressing.” Talking about problems which mandate discussion, bringing up issues slated to cause larger issues down the line, and letting your boss know that you have the sniffles all fall into the latter category due to necessity; complaining is volitional, self-serving, and completely unnecessary in most contexts.

Complaining also puts you in an excessively bad mood, which may prevent you from acknowledging all the reasons you have not to complain.

Another point to keep in mind is that complaining occasionally (and briefly) isn’t usually cause for ostracization. Constant or extensive complaining, however, can lead others to view you as a largely negative, self-centered person — you know, the kind of person literally no one actively seeks out — which is why you should focus more on redirecting that negative energy rather than using it to remind your barista why they gave up their dream of becoming a therapist.

Complaining stems from two main sources: the need to be validated—for example, for others to know what you’re going through—and the need to be comforted. Addressing a chronic complaint mindset, then, is largely about validating and comforting yourself. This is a simple solution which nevertheless can take years to manifest properly, but you can start by doing a couple of things differently.

“Focus on the positive” is perhaps the hokiest advice you’ll get from anyone, but it works. In virtually any situation, you can find a positive aspect—be it an eventual outcome or an auxiliary side-effect—on which you can concentrate. Think about the positive enough, and you’ll talk yourself out of complaining before you’ve even started.

It’s also good to remember that no one, no matter how much they care about you, can handle constant negativity. If you find yourself constantly hitting people with bad news or tragic personal updates, try mixing up the dialogue with some positive stuff. That’s not to say that you can’t be honest with people—friends, family, and colleagues all deserve to know what’s going on in your life—but make sure that you aren’t oversaturating your listeners with sadness.

Lastly, keep your complaining off of social media. It’s all too easy to post a long Facebook rant about being served cold pizza (no one likes cold pizza on day one), but this just results in your loding a complaint reaching a larger number of people than vocalization ever could. If you have to complain about something in earnest, avoid doing it anywhere on the Internet—your future self will thank you.

Being honest about how you feel is never a bad thing, but constant negativity will bring down you and everyone around you. If you can avoid a complaint mindset as a general rule, you’ll one day find that you have significantly less to complain about.

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Opinion Editorials

What Musk’s tweets say about toxicity of modern work culture

(EDITORIAL) Musk is an inspiring figure, but his recent tweets speak volumes of what’s wrong with work culture, especially in tech.

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Oh, Elon. Haven’t you learned yet? No? Your beautiful, sweet, brilliant mind. I don’t know whether you need a hug or a stern talking to — maybe both — after your crazy, erratic tweets, but Elon Musk’s Crazy Tweet of the Week™ shows a huge problem growing in the tech industry and modern work culture.

In case if you missed it, here’s what went down:

1. On Sunday, the WSJ wrote that Tesla is the “hot spot” of young job seekers and engineers, in spite of or even because of Musk.

2. Par for the course, Musk responded on Twitter with the following comments:

3. Twitter exploded with replies such as these:

If anything, this opens a discussion on a toxic tech — and honestly, American — work culture. But we’ve written about that. It seems like we’re slowly learning that 40 hour workweeks are often okay, and here’s why:

Elon isn’t normal and we shouldn’t compare ourselves.

The thing is, Musk does get more done in the average workweek than a normal person. But this is because he’s brilliant and has figured out ways to beat the system, and he has a million different ideas that other people are implementing. Elon shouldn’t compare himself to the average person, because, well, he isn’t. It’s clear he’s brilliant (and knows it), so we shouldn’t compare ourselves to him, either.

Something we can take from him: learning to automate the remedial tasks and spending our time to maximize efficiency and not waste time. And for the average person, that probably means getting a good night’s sleep or eating well (that means not just drinking Soylent. Looking at you, developers!) so you can actually be effective the next day at work or with your loved ones.

Improve your efficiency.

Are there productivity tools that you haven’t been using that you can? Are you tracking your time and how you’re spending it? If you’re an entrepreneur, or better yet, solopreneur, are there small tasks that take a lot of time that you can do better, faster, stronger? If you need some ideas, check out the years of tips accumulated here on AG.

Elon knows where his strengths don’t lie, and he has a lot of people doing those jobs. So take some of the things he does, but take it with a grain of salt. But unlike Musk, treat your employees well, don’t burn them out, and empower them to do the tasks you don’t do as well.

Most “average” humans have normal responsibilities: families, maintaining a healthy lifestyle (this means sleeping well, eating well, and exercising), and maintaining balance with other interests that make us better employees, bosses, and entrepreneurs. Remember: you’re a human being, not just a worker bee. Don’t let Elon’s Tweetstorms lead you astray.

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Opinion Editorials

How to crush your next remote job interview

(OPINION EDITORIAL) Working remotely is becoming more and more popular. Learn how to excel during a remote job interview.

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As the career landscape continues to change, so does the way in which we interview. With an increase in remote workers, there is also an increase in video interviews.

What immediately comes to mind for me was three years ago when I had a video interview with the fabulous COO of The American Genius. Since the company is based out of Austin, and I’m in Chicago, we had a video chat to see if I’d be a good fit for the company.

While it took some of the pressure off being able to be in my own home for the interview, there was definitely the con of…being in my own home for the interview. Fear of any noise or interruption posed as a slight distraction.

Like an in person interview, there are some pressures that go along with a video interview. The main one being that you need to sell yourself as an extremely responsible individual who can handle the freedoms and rigors of remote work.

Employers are looking for accountability in their remote workers. You must be able to execute your tasks in with a heightened amount of self-discipline.

This can be done through use of time trackers and proactive reporting. Keeping track of each task you do, and the time spent doing it, will provide something tangible for your employer. Be sure to explain during the interview that this is something you will provide to the employer.

Next, because there is a change in environment, and arguably a change in responsibility level, the questions asked during the interview may be different from your standard interview.

A few questions that may pop up to keep in mind: what hours will you be working? What is your remote experience like? Is this something you’re seeking for supplemental work, or trying to do full-time? What is your home workspace like? What tools do you use to keep yourself on task? What is your preferred method of payment?

In turn, there are some questions you should be prepared to ask, as in any other interview. For example: What would a typical day look like if we were working together in-house? Do you offer advancement opportunities? How many of your team members work remotely and how do we all stay in contact?

Working remotely can be a whole different beast in terms of proving yourself to your employer. Having yourself fully prepared for an interview can help start you off on the right foot.

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