K&N Management Case Study
No. of Employees: 600
Industry: Restaurant and retail chains
- Cost of mis-hires estimated at $28k for entry-level employee, $320k for store manager
- Improvement from 25% to 89% A Players hired throughout the company
- Sales growth from $60 million to $80 million
K&N Management is the owner and operator of Mighty Fine Burgers, Fries & Shakes, as well as the licensed area developer of the five Austin area locations of Rudy’s Country Store & Bar-B-Q. Mighty Fine is one of the best start up fast casual concepts in the nation, evidenced by its $3.5 million+ per year in single unit sales and world-class guest satisfaction ratings during the first two years. Rudy’s North Austin is the #1 restaurant in food sales per square foot out of approximately 67,000 total restaurants in Texas.
Upon measuring their pre-Topgrading hiring success, the team at K&N found that only 25% of their employees were A Players and their rate of involuntary terminations annually was at 37%. Paired with the costs of those mis-hires - $28k for an entry-level employee and $320k for a store manager – they knew they had to make a change. But in an industry where C Players are the norm, K&N had to fight the status quo.
“Topgrading is the turnkey hiring process that guarantees we are using the very best methods to select the right people that will follow our processes, embrace our culture, and delight our guests.”
– Ken Shiller, CEO
K&N rolled out the full Topgrading methodology, from Career History Forms and Snapshots through the Topgrading Interview and Reference Checks. Like other Topgrading companies, K&N found that the Snapshot drastically cut down the amount of time they spent screening candidates. They used their Topgrading tools to implement an effective coaching process.
Now boasting 89% A Players, K&N’s sales grew from 60 Million to 80 Million, they were able to boost profits by hiring fewer, more effective employees, and their annual rate of involuntary terminations decreased to 14%. Having noticeably more A Player team members than their competitors was good for business, and attracted even more A Players to apply to K&N.
I consider Topgrading to be the key driver in our impressive sales growth, since achieving our mission and vision is 100% linked to having a team of A Players. While Topgrading does require an upfront investment, the return on that investment is the difference between world class results and mediocrity.
- Ken Shiller, CEO