Pal’s business model

Pal’s Sudden Service is a restaurant chain you’ve probably never heard of.  Indeed not many Amercians have heard of it, since the chain is only to be found in Tennesse and Virginia.   Yet in its region, it is the second most successful restaurant chain (after McDonalds) and it was the first restaurant chain to ever win the Malcolm Baldridge Award, in 2001.  In this article, Thom Crosby, Pal’s President & CEO, outlines the company’s business model and organisational culture, clearly demonstrating how these two things go together.  He also illustrates how quality drives profit.  And why growth is not necesasarily desirable.  Brilliant. 

He makes it sound so simple – if only this were so…  We’ve decided to make this compulsory reading any any OM course we teach.

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