Problem Statement

Problem Statement for Kudler Fine Foods

Problem Statement for Kudler Fine Foods

Kudler Fine Foods (KFF) opened in 1998 with Kathy Kudler’s vision “Kudler Fine Foods will be the premiere gourmet grocery store for those savvy shoppers who are searching for the finest meats, produce, cheeses and wines” (University of Phoenix, 2003, p. 3). Kathy Kudler, passionate gourmet cook as well as the owner and founder of KFF, established her store when she found that there was nowhere in her local area to purchase gourmet ingredients for cooking. Kathy’s first store opened in La Jolla, and was successful enough to encourage Kathy to open a second and third store, in Del Mar and Encinitas, respectfully.

Situation

Kathy has maintained her hands-on approach to managing all aspects of her stores. Because of this approach, she works seven days a week, visits all the stores, and works at each location, sometimes daily. Even though she has hired a manager and an assistant manager for each store - along with cashiers and college students to stock the store, Kathy has not let go of the control of management of the stores. Kathy has hired specialists at each of her stores to help customers with needs in each department. Because of the specific requirements of these positions, they demand high wages. Because KFF pays less than the larger stores, KFF finds it difficult to replace employees lost because of attrition.

Regardless of sales levels in the individual stores, Kathy buys product in bulk for all of the locations in an attempt to save money. This approach, unfortunately, takes up much of Kathy’s time in the stores leaving precious little time to visit with her customers, run a cash register or communicate with her management team. In turn, KFF is removing the bulk purchased produce at from shelves at a rapid pace of about 12% every two to three days. The replaced product is either thrown away or donated to local charities. Donations do give KFF a good...