Ciao restaurant is famous all credit being given to Susan Height who was working as a general manager but the popularity of the restaurant will soon vanish immediately after Susan stop working for the restaurant under the new management of Ron Downs. The style of management was different leading to different results as it is being analyzed. The cost of food in time of Susan was 31% lower with 7% comparing with Ron’s which was 38%, beer cost was 28% in Susan’s leadership higher with 3% comparing with 25% of Ron, liquor cost was 14% when Susan was the manager while Ron changed the price to 9%, wine was selling at 33% during Susan’s time while Ron sold at 21%, the staffs turnover was 12% when Susan was managing and 63% when Ron was managing unfortunately, Ron did not invest in training staffs while Susan invested 14% in staff training. Ron’s pricing looked favorable but at the end of the day, the quality of the finished product was poor but Susan gave an average pricing maintaining the good quality of what they offered. This made Ron ineffective comparing with Susan who was very effective.
Susan management was effective because she was able to balance her management style, she created an internal culture at the restaurant hence allowing free communication between managers and hourly employees. Susan had a good business sense, a genuine personality and strong product knowledge with both the FOH and BOH specifications. Susan also maintained a democratic style of leadership where every staff member is included in every happening in the restaurant. This created a good atmosphere for the staffs boosting their morale, unlike Ron, who completely killed staffs morale by charging them for the meal they took. He also changed the prices, the ingredients and the suppliers a decision that faced resistance from chef and assistant managers. Ron used very direct and forceful words combined with direct and sustained eye contact while implementing changes.
Employee retention proved to be a litmus test to the management of Ron whereby most of the workers quitted. This was because he added working hours, eliminated the staff daily tasting of menu features and developed written job description instead of training unlike Susan who maintained a good atmosphere for staffs through giving all the benefits that Ron eliminated. Even though Ron was making a big profit, his management style had a negative impact to SPS in relation to the business sustainability unlike Susan whose profit was low but the business had a sustainability. It is good to ensure the welfare of the staffs like worker organization that will benefit the staffs. Implementing strategies should consider every staff to ensure no one feels oppressed by new strategies. The strategy to be implemented should consider the long term and the short term of the business such that if the strategy is bringing short term it should not be considered.