Return to 2008 Goals

1.  Run the numbers:  We need to “bring home the bacon” in 2008.  We had a few challenges in 2007 with the Crispani experiment and riding the wave of COGS and labor hurdles that this well intended but not well received product gave us.  We have a new accounting system starting in 2008 with 4 week periods.  We have the managers to take us to the next level and historically the first quarter has been a challenge financially.  With the bonus at time and a half for the first quarter for the first time we will break this historical habit and “bring home the bacon” for this quarter and the entire year.

2.  As of November 14, 25% of our bakery-cafés were operating at a level 3.  Our goal again is to have at least 75% of our bakery-cafés ranked a level 3 by October 31, 2008.

3.  Continuing throughout 2008 the thresholds for the audit scoring are as follows:

·         Platinum - Overall score of 85% or higher.  $600.00 additional bonus potential.

·         Level 3 - Overall score of 80% or higher.  $200.00 additional bonus potential.

·         Level 2 - Overall score of 75% or higher.

·         Level 1 - Any score below 74.9% or lower.

4.  NO bakery-café in our franchise group will EVER earn less than level 2 status during 2008.

·         Any GM of a bakery-café that scores an overall level 1 will be placed on a 15 day probation.  The GM is to be written up and a copy of the write-up is to be submitted to the Vice President of Operations.  Within 24 hours of the audit, an “Action Plan:  Obtaining a Level 3” must be developed by the GM along with his or her management team.  The action plan must be approved by the district manager.  All members of the management team along with the DM must sign the action plan.

·         After 15 days, a complete audit will be scored and if the store is still scored at a level 1, we will find a new GM for the store.

5.  Audits:

     a.)  We are going to continue to use the long audit form in 2008.  We will execute the following auditing processes during the year as well.

          i.)  During the 1st quarter of 2008, each DM will complete at least one audit on a Sunday.  This is meant to ensure that our managers are not taking our least busy day of the week for granted but rather providing the great service we expect at Original Bread every day of the week.

          ii.)   During the 2nd quarter of 2008, each GM in the district should participate in conducting the audit of another store including typing and commenting on the various sections of the audit.  The DM will oversee this process as well.

          iii.)   During the 3rd quarter of 2008, each DM will do their audits with a different AM or AGM in their district.  This audit should not be completed at the AM’s own bakery-café.  This is meant to teach the AM’s the philosophy behind the audit and to open their eyes in general.  It is proven that a manager that does an audit in another environment goes back to look at their home bakery-café in a new light.  (AM’s are to be deeply involved in the audit but are not allowed to score or type up the audit.)

·         Also during this quarter, each DM will complete at least one “cooperative” audit with

          1.  The RTM responsible for their district.

          2.  Another DM or Admin member.

     b.) All quarters of 2008 will consist of 2 audits being executed in all of the bakery-cafés.  The bakery-cafés will only have 2 chances to make a great impression on the company and to score at a level 3 or Platinum Level.

i.)    Bakery-cafés that score a 74.9% or lower in ANY category require a follow up visit by the district manager through that section and to show the progress that was made.

ii.)   Bakery-cafés that score below a 60% in ANY category require a follow up visit by the district manager at five (5) and fifteen (15) days to gauge the progress towards correcting problems and implementing solutions.  Again the general manager must accompany the district manager through the process that they have made and how their plan is being implemented.

iii.)   No matter what the score is, even if the total is 100%, ALL bakery-cafés are to provide their DM with a STOP DOING LIST no more than 48 hours after the DM has gone over the audit with the GM.  DM’s should bring a copy of the previous store audit and store stop doing list with them on the next audit to contrast and compare what has been accomplished since the previous audit.

     c.) All audits and any subsequent STOP DOING LISTS must be submitted via e-mail to the Vice President of Operations within two (2) days of completion.