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Perfect Pizzeria in Southville, in deep southern Illinois, is the second largest franchise of the chain in the United States. The headquarters is located in Phoenix, Arizona. Although the business is prospering, employee and managerial problems exist.
Each operation has one manager, an assistant manager, and from two to five night managers. The managers of each pizzeria work under an area supervisor. There are no systematic criteria for being a manager or becoming a manager trainee. The franchise has no formalized training period for the manager. No college education is required. The managers for whom the case observer worked during a four-year period were relatively young (ages 24 to 27) and only one had completed college. They came from the ranks of night managers or assistant managers, or both. The night managers were chosen for their ability to perform the duties of the regular employees. The assistant managers worked a two-hour shift during the luncheon period five days a week to gain knowledge about bookkeeping and management. Those becoming managers remained at that level unless they expressed interest in investing in the business.
The employees were mostly college students, with a few high school students performing the less challenging jobs. Since Perfect Pizzeria was located in an area with few job opportunities, it had a relatively easy task of filling its employee quotas. All the employees, with the exception of the manager, were employed part time and were paid the minimum wage.
The Perfect Pizzeria system is devised so that food and beverage costs and profits are computed according to a percentage. If the percentage of food unsold or damaged in any way is very low, the manager gets a bonus. If the percentage is high, the manager does not receive a bonus; rather, he or she receives only his or her normal salary.
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