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Au Bon Pain Analysis

Autor:   •  February 14, 2018  •  1,119 Words (5 Pages)  •  219 Views

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Au Bon Pain needs to focus on the following to overcome their obstacles:

- Focus on improving customer satisfaction and regain their confidence.

- Improve employee’s morale to improve sales and enhance customer loyalty

- Reduce employee turnover by attracting ambitious employees who are dedicated

- Implement an easy to sell, simple to explain incentive program which stacks up against the competition and properly motivates the management staff

Recommendation would be Au Bon Pain should consider a change in their strategy. Instead of offering bonuses to their managers they should consider allowing them to own a percentage of the store they are working in. In addition to this they can even consider offering a franchise model. By allowing operators and managers to have ownership in the store they will be more motivated to make sure that all the operations in the café is running properly because now their interest is vested in the performance of the café. Sharing profits with key employees many times helps companies because they can easily resolve agency issues. Although initially sharing profits might not seem like a good option but to scale the business delegation is key and to resolve agency problems the most optimum solution is to make the manager part of profit share. This will also be a sign for other employees working at the firm and will motivate them to work harder thinking that one day they could get the opportunity to run their own Au Bon Pain franchise. This should result in reduced turnover and increased commitment, overall positivity in workplace and improved satisfaction. This will translate into overall service level improvements and high customer satisfaction.

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