Over the past year, chain restaurants have been hit hard by the economic recession. Many have been trying to find way to cut costs in order to save money and still keep customers coming. Chili's Grill and Bar has been implementing new labor strategies to cut costs in response to the impending health-care law, which mandates expanded employee coverage. They have removed expensive kitchen equipment and will be replacing it with higher-efficiency models. They have also had to condense certain job positions in order to expedite tables faster. After reading this article, it made me wonder if this was having any effect on Chili's reputation. One of, if not, the most important benefit of corporate social responsibility is having a positive reputation in the marketplace. Chili's is known for having their "hand-mashed potatoes" and "authentically smoked ribs". But, if they do away with their giant rib smokers and switch to instant potatoes in an effort to save time and money, there are customers that will notice and dislike it. That is one of the most difficult issues that restaurants have to deal with; quantity vs. quality. In these tough economic times, restaurants have really had to tighten their belts. However, how far are they willing to go? At what cost is it actually worth to "skimp out" so that they can save a few bucks? Restaurants need to make sure they keep expenditures low, but they must also keep a listening ear to the public so they don't make any crucial mistakes they might regret.
For more information, visit: http://online.wsj.com/article/SB10001424052748704307404576080340742759346.html?KEYWORDS=restaurants
--Alexandra Ladas
No comments:
Post a Comment