Running Head: OUTBACK STEAKHOUSE
Dr. Elliot Ser
University of Phoenix
January 31, 2008
OSI Restaurant Partners, LLC, headquartered in Tampa, Florida was founded in 1988 by those who believe in hospitality, sharing, quality, being courageous and having fun! OSI Restaurant Partners, LLC is a company of restaurants that owns and operates Outback Steakhouse, Carrabba's Italian Grill, Roy's Restaurant, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, Lee Roy Selmon's, Cheeseburger in Paradise and Blue Coral Seafood & Spirits(Outback, 2007). Outback Steakhouse is a huge company who has many people who care about one another. Each manager is carefully selected and makes sure that they live by Outback's principles and beliefs. Two organizational resources that management in this organization uses are knowledge and human resources.
Human Resources at Outback Steakhouse play a critical role in the company's value chain, as various cost drivers are associated with this link.
Emphasis on human resources is a key component of the company's differentiation strategy, yet there are costs associated with upholding this differentiation (Hallinan, 2005). There are two aspects of restaurant labor operations that Outback Steakhouse places significant energy and value on. Employment recruitment and training is one of them. Getting a job at Outback Steakhouse is no easy task. The hiring process is very intense and requires a great deal of knowledge and testing. Once hired, the training portion is even more intense. Depending upon the job that has been given, the training takes many days. Outback's total labor costs average 24 percent of restaurant revenues over the past 4 years, which is 6 percent lower than comparable companies in the casual dining segment. Outback states that it has the lowest employee turnover in the industry, approximately 2 percent per year, which has lead...