Retention: Weathering the Storm

Good communications helped Raising Cane�s gather �round employees when Hurricane Katrina hit.

By Margaret Littman, Contributing Editor -- Chain Leader, 5/1/2007

Reopening units in cities hit by Hurricane Katrina was a priority for the company. Raising Cane’s reopened units in areas affected by Hurricane Katrina not only to keep the coffers open but to provide an alternative to MREs provided by a government agency.

Open units gave employees a safe place to go—and serve others—in the first days after the hurricane hit.

Hurricane Katrina may have wreaked havoc on many of Raising Cane’s geographic markets. But the storm didn’t upend the Baton Rouge, La.-based QSR, in part because management had a corporate communication program that kept crew members in the loop before, during and after the disaster.

Raising Cane’s multifaceted plan includes e-mail newsletters, open-door policies, pre-shift meetings and monthly store meetings for general managers. Beyond that, the U.S. Postal Service keeps busy delivering “good luck on your exam” cards for employees who are high school students, as well as congratulatory cards for those experiencing major life events such as weddings and buying a new house.

“In my mind, those are all touch points with the crew,” says President and Chief Operating Officer Kathleen Wood. “Those things trace back to when Todd [ Graves] opened the first restaurants, before Katrina ever hit.”

Post Katrina

When the hurricane did hit, Raising Cane’s was prepared and flexible. For example, text messaging, along with walkie-talkies, helped Raising Cane’s keep tabs on its employees in affected areas. With approximately 50 percent of its work force between the ages of 16 and 24, the chain benefited from having workers adept at text messaging. Mike Mitchell, a partner with Fisher & Phillips LLP, a New Orleans law firm, says it took older, less tech-savvy New Orleans residents days to realize that text messages went through even when cell service was out.

Management’s first priority after the hurricane hit was to make sure that all employees—and their families—were accounted for. “We issued payroll immediately after the hurricane,” Wood says. “We knew those paychecks were more valuable to the 400 crew members living on the Gulf Coast that week than any other week.” But tracking who had cashed the checks also helped the company figure out if there were any employees who had not been accounted for. Raising Cane’s was lucky enough not to lose any employees in the storm or the aftermath.

After personnel issues, the company decided it was important to reopen units in affected areas. The chicken fingers chain wanted not only to keep the coffers open but to provide an alternative to MREs, or meals ready to eat, provided by a government agency. In addition, the stores gave employees who needed a safe haven somewhere to go.

Money Doesn’t Always Talk

According to Wood, Raising Cane’s communicated well with its employees after the hurricane because employees stayed loyal to the company, even when other chains were offering higher hourly rates. And many employees who did leave were 16- to 24-year-olds who were forced to relocate when family members sought jobs in other cities.

“We never got engaged in a price war per hour, and there were outrageous amounts of money being offered,” Wood remembers. “Our crews knew they were short-term efforts. Our culture played to our advantage.”

Since the 2005 storm, Raising Cane’s has improved its crisis-management program. The chain calls one of its menu items “the perfect box” (chicken fingers, coleslaw, fries and a drink), so it developed an internal protocol called the “perfect safety box.” While not a physical box, the protocol includes details on procedures that will help ensure crew member and customer safety in case of future emergency, including a pager system to reach managers not on-site. Other changes include an 800 number that does not run off Raising Cane’s internal telephone network, so if phone lines are down, employees can call a working central number.

Mitchell thinks Raising Cane’s communications will serve it well. “Anytime a company takes action that is clearly intended to help employees, that reverberates through the years,” he says.

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