Cool idea, Bad Management

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From the Salt Lake Tribune:
Nonprofit eatery can't bring home bacon
One World Cafe, where patrons set prices, has had trouble paying employees

For nearly a year, Salt Lake City's One World Cafe - founded on the altruistic goal of letting customers set their own meal price - has been on a crash course with business reality.

In mid-October, employee paychecks bounced and the longtime manager was fired. Bo Dean's dismissal angered the rest of the staff enough that they walked out in protest.

Founder Denise Cerreta was forced to call a temporary staffing agency so she could serve customers.

Inexperience seems to be the main problem for the nonprofit cafe at 41 S. 300 East.

�As the restaurant grew, I didn't have the expertise at running a kitchen,� acknowledged Cerreta during a media teleconference call on Friday. �We needed more structure and a more professional kitchen.�

A recent review of the business showed the restaurant was overstaffed and management of employee time was poor. It never even had an employee time clock. The restaurant also had failed to keep concise records of food costs and fixed costs. All told, mismanagement cost the restaurant $8,000 to $10,000 a month, Cerreta said.
Some nice ideas but with a manager who is always on the road and with no time management, a sure candidate for failure. Nice to see that they are trying to turn it around though...

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This page contains a single entry by DaveH published on November 9, 2008 1:58 PM.

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