It seems that I’ve preoccupied with fast food lately. I’ve done two posts on Chipotle Mexican Grills. This one is about Panda Express, Chinese fast food.
I read a USA Today article about Panda Express on Monday. It caught my eye, because I see Panda Express stores in airports and often patronize them when I’m traveling. I find the food to be consistently good…
Panda Express began life as a full service Chinese restaurant in 1973, operated by Andrew Cherng and his father, a master chef. In 1983, the Cherngs opened the first Panda Express in the Glendale CA Galleria. They opened their 700th location in 2005. They now have 820 stores. Along the way, Mr. Cherng met and married his wife Peggy who helps him run the business.
Panda Express builds three new stores every week – Burger King built one a week in 2005. They are in 35 states and expect to eventually to serve all 50. Panda Express revenues in 2005 were $735 million – triple the combined total of the number two and three fast food Chinese chains – Pei Wei Asian Diner, and Pick Up Stix.
What’s Panda Express’ secret? Common sense, really. And the second secret in my book 4 Secrets of High Performing Organizations: committed and engaged employees. Panda Express offers subsidized health care coverage for all of its employees. It pays one to two dollars an hour more than other fast food restaurants in the same food court – the idea being that you get what you pay for when it comes to employees.
Chinese food – even the fast food variety – is much more difficult and complicated to prepare than burgers, chicken or sandwiches. “Fried rice needs to be thoroughly stirred or it will clump. Multiple seasonings need to be carefully mixed in correct proportions. Vegetables must be chopped in the same way whether the chopper is in Hawaii or Maine”, say Mr. Cherng. He adds “there’s no way to get one employee, let alone 14,000 of them to do that other than getting them to care”.
So far, Mr. and Mrs. Cherng -- and their committed and engaged employees -- are making great headway in creating a nation wide Chinese fast food restaurant chain. Check them out the next time you see one.
That’s it for today. Thanks for reading. Log on to my website www.BudBilanich.com for more common sense. Check out my other blogs: www.CareerSuperStar.com for common sense advice on becoming the life and career star you are meant to be; and www.CommonSenseDay.com to learn more about Use Your Common Sense Day -- November 4, and to read stories of common sense in action.
I’ll see you around the web, and at Alex’s Lemonade Stand.
Bud
PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open. Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.
i've read the e-myth book and always wondered how you inspire franchise type employees to do a good job, to carry your vision to the customer. it appears panda has found it, through giving employees health care and a decent wage. this in turn helps them do a good job as the owner wants it. sounds like common sense. and it appears to work. yet not many other businesses are doing it...
Posted by: steve | September 14, 2006 at 05:16 PM