Business Case Study: Roy Rogers: Fast Food Franchisees

Roy Rogers is a fast-food franchise that primarily serves burgers and chicken. The corporate managers are faced with a tough decision when one of their largest franchisees, Jack Towle, requested to replace the salad bar in one of his new locations with additional seating. Jack was different from most of the Roy Rogers franchisees in that he owned other restaurant franchises in addition to Roy Rogers, although they didn’t serve the same type of food. Towle explained that this new location was going to be located in a business area with a lot of lunch traffic and he believed that the restaurant would be more profitable by having additional seating instead of the salad bar that all other Roy Rogers have. There are many problems that management …show more content…
The levers are: belief, boundary, diagnostic and interactive control systems. The purpose of the belief system is to communicate with all employees what the core values of the company are so that they can embrace them and act accordingly. I would say that Roy Rogers’s belief system is to treat customers as family and to serve the same great product at all of their locations. The boundary system basically tells employees what they absolutely cannot do, it is meant to establish limits without suffocating innovation. According to the case I would say that Roy Rogers boundaries for franchisees is that they can’t change the design, operation, and must serve menu items specifically set out by the company and follow company specifications in regards to how the food is made. If a franchisee has an idea they can go through the company’s Product Testing Policy. Diagnostic controls are used to periodically measure outcomes and monitor goals. They are meant to aid managers in setting goals and reviewing performance. For example, budgets and goals are diagnostic systems that can be preset and the outputs can be measured. For Roy Rogers they can set up a diagnostic system to see if they are meeting their goals in regards to opening new restaurants and increasing profits. The final lever of control, interactive control system, provides feedback on things that change frequently. An example of an interactive system would be daily sales reports. Roy Rogers could put in place an interactive control system that measures sales reports of all Roy Rogers stores daily and flags any large deviations so that management can investigate the