Turnover—the rate at which employees leave their jobs—is notoriously high in the fast-food industry. According to the National Restaurant Association, more than half of all managers in limited-service restaurants change jobs each year, and turnover among lower-level employees is even higher. So it’s rare to find a pizza franchise in which employees are so loyal they name their children after the boss. But that’s exactly the kind of thing that happens at Dave Melton’s Domino’s Pizza franchises in New York City.
A newspaper reporter recently found Melton preparing his five Domino’s stores for Super Bowl Sunday with his entire staff of about one hundred employees plus twelve former employees who were happy to come back and help on the chain’s busiest day of the year. Melton knew business would be “crazy” for the two-and-a-half hours of the game, but he was confident, too. Incredibly, most of his team had been with him long enough to have worked through the Super Bowl together several times already.
1. What are some of the strategies Dave Melton uses to retain good employees?
2. What do you think are the advantages of Dave Melton’s hiring strategies? Can you think of any disadvantages?
3. What effect do you think Dave Melton’s compensation strategies have on his firm’s success?