MANAGING A FAMILY BUSINESS

Nicholas Stavros opened his first restaurant in Cedar City 25 years ago. Stavros's family-style Greek food and atmosphere proved popular, and three additional restaurants were opened in outlying suburbs. One of Papa Nick's children now runs each: Maria's Stavros, Peter's Stavros, and Eric's Stavros. Nick Junior runs the original Nick's Stavros.

The menu is consistent across all four restaurants, but each restaurant features a daily special prepared by the local chef. Customer comment cards consistently rank the quality of food as very high.

Papa Nick now divides his time between the restaurants and the family's real estate holdings. Major decisions are made by Papa Nick. All employees at each restaurant report to the restaurant's Stavros manager, providing some degree of decentralization.

Customer comment cards have begun to show some problem areas at Peter's Stavros Restaurant. Service ratings have fallen to "fair," and many customers have written specific comments about slow service and poor wait service attitude.

Because it is the newest restaurant, Eric's Stavros has received more resources for advertising and promotion. The equipment is also significantly newer than that at the other three restaurants. Over time Maria, Peter, and Nick Junior have come to resent the attention Eric has received. The tension has become so high that the staff at Peter's Stavros does not speak to the staff at Eric's Stavros.

Papa Nick is reviewing two pieces of information. One, the profit margin from restaurant operations has declined over the past year. And, finally, several employees have mentioned their desire to join a union.

Papa Nick has asked your advice for improving the performance of his restaurants. What advice would you give him? Outline a plan of action, with goals and timelines.