Day 151 - 10 Jul 95 - Page 62


     
     1        A.  Again I would have to seek guidance from human
     2        resources but my understanding is that it is possible for
     3        an operator to have slightly different personnel procedures
     4        or policies, I would have thought, than a company store.  I
     5        am aware that when they set up a business I think they have
     6        to put together their own than handbook or they can accept
     7        the Company one.  Certainly if they wish to deviate from
     8        the Company one, I am pretty sure, and I hope I am not
     9        speaking out of turn from human resources, they would have
    10        to produce their own crew handbook for their own specific
    11        policies within the restaurant.
    12
    13   Q.   That would have to be acceptable to the Company?
    14        A.  I believe so, but again human resources would have to
    15        give me guidance on that.  I certainly asked the operator
    16        when they do it to see guidance from human resources, so
    17        the idea of the field consultant, or perhaps even myself,
    18        telling you which door to push against is a way of looking
    19        at it because again I have experience in terms of the
    20        people who are within the region; I can tell the operator
    21        where to go, so I would hope if they produce a crew
    22        handbook it is in consultation with human resources.
    23
    24   Q.   They are not just left to get on with it on their own and
    25        you do not care what they do and they can disregard the law
    26        if they want or anything like that?
    27        A.  Absolutely not, but again it is a matter of these
    28        business people are in business for 20 years so you would
    29        expect a far greater form of trust to get on with the
    30        business.  Again, it is the idea of those guys are more
    31        empowered to get on with their business rather than the
    32        company people, but to say that they are left alone to
    33        operate how they wish is quite incorrect.
    34
    35   MR. MORRIS:  To save time, your field consultants report back
    36        from the franchise stores, yes, to you.  You get reports in
    37        of what conditions are like, whether they are adhering to
    38        the standards which you expect?
    39        A.  The field services department would probably generally
    40        meet on a quarterly basis, but again I would not expect to
    41        take all my information just from a quarterly meeting and
    42        discussion.  I believe again that as part of that business
    43        review process, which takes place annually for an operator,
    44        the field consultant is doing an ongoing evaluation.
    45
    46   Q.   It is a bit like a store audit that would be done for a
    47        McDonald's store, a Company store?
    48        A.  It is probably broadly similar, yes.  In terms of the
    49        operating parameters, it is certainly the same sort of
    50        operating parameters that I would expect from a Company 
    51        restaurant. 
    52 
    53   Q.   So the standards that go into the kind of audit which you
    54        do for Company stores would be the same, or pretty similar,
    55        for non-company stores?
    56        A.  In Operations?
    57
    58   Q.   Yes, the standards that you expect for your stores?
    59        A.  There is not one rule for the Operators and one rule
    60        for the Company, no.

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