The Sheraton

The Cheesecake Factory

It is hard to believe that a company founded in 1972, and facing all the competition in the restaurant industry, has grown to owning seventy-three upscale casual under the Cheesecake FactoryÐ'® mark in major metropolitan areas spanning the United States (MarketWatch per. 1-2) . With 2002 revenues at a high of $652 million and continuous expansion, The Cheesecake Factory has experienced remarkable growth since its origin. "The Cheesecake Restaurant concept strives to provide a distinctive, high quality dining experience at moderate prices by offering an extensive, creative and evolving menu in an upscale, high-energy casual setting with efficient, attentive and friendly service" (Overton, Deitchle, 3).

In 1972 the founding family, Oscar and Evelyn Overton, opened a wholesale cheesecake bakery located in North Hollywood. Using Evelyn's recipes Oscar literally sold accounts door-to-door distributing to local restaurants. During 1975, having outgrown the small shop and move to a facility in Woodland Hills, CA, with their son, David, joined as a fulltime employee (Cheesecake Factory Inc.). David Overton, currently CEO, was the entrepreneur behind the first full service restaurant. Following in 1978 Overton opened his 100-seatoperation in Beverly Hills "establishing the future chain's pattern of offering an eclectic menu, big portions and signature cheesecakes" (Cheesecake factory Inc). Overton has built this business to its current multi million dollar status.

Today the company provides work for approximately 15,000 employees in twenty different states and Washington D.C. Each individual store contains around 200 hourly employees a general manager, one executive kitchen manager, and can have anywhere form six to sixteen assistant managers for both front and back of the house operations (Overton, Deitchle, 9). "Each restaurant also has an onsite accounting technician who assists in the accumulation and processing of accounting and other administrative information."(10). Training for both salaried and hourly employees is extremely rigorous due to the company's vast menu and high standard of excellence. In addition company turn over is quite low for the industry. The chain of command for a store requires the General Manger to report to an area director who in turn reports to a regional vice president. The company also separately employs area kitchen managers and a senior vice president of kitchen operations (10) largely due to the extensive the two hundred item menu and the giant desert menu containing fifty verities of cheesecakes as well as other deserts.

To obtain employment, management must possess "at least 2 years of solid, full

Service casual or upscale dining experience in a high volume environment" (Hospitality Careers Online). Additionally, general managers, have commonly been employed by the Cheesecake Factory for at least five years as a manager and often have five years management experience in another food service operation. Every new management hire must complete a fourteen to fifteen week training program that involves classroom and on the job instruction in "food quality and preparation, customer service, alcoholic beverage service, liquor liability avoidance, financial management and cost controls, risk management, employee relations, and the core values and culture of superior guest hospitality" (Overton, Deitchle, 9).

In the highly completive restaurant industry it is difficult to retain qualified employs dude to its high stress nature. To combat this threat the Cheesecake Factory offers all its salaried managers a 401(k) plan with company contribution, two scheduled consecutive days off per week and medical/dental insurance plans. General Managers and executive kitchen managers are additionally offered a dynamic and progressive training Managing Equity Program (Hospitality Careers Online). The program includes a competitive base salary and a cash bonus incentive witch is based on restaurant performance. General Managers involved in this program also receive a company-leased BMW and car insurance for personal and business use (Overton,