Team Project – RemyCake Bakery: Too Close to Fail?
This case study focuses on the corporate culture of, RemyCake Bakery Ltd. (RemyCake). RemyCake was
incorporated in 2000. The founders believed culture to be the key element of any organization and could not be
duplicated or reproduced. They believed the culture produced at RemyCake was what made their bakery unique,
original, and what set it apart from competitors.
The bakery has encouraged the values of empowerment, commitment, and participation. From the start, the founders
wanted to build a team of empowered and happy co-workers because they believed this type of group would provide
a superior customer experience for patrons of the bakery. At RemyCake, each employee was made a shareholder in
the company. Employees were empowered to make any decision they thought would help provide the absolute best
customer service.
The culture at RemyCake helped the bakery remain profitable and a local favorite. Yet, RemyCake’s culture began
facing several challenges from the inevitable process of change. The bakery’s success brought with it the need to
expand. Efforts to expand regionally strained RemyCake’s ability to maintain the culture developed by the founders
and maintained by its employees.
The Case
In August 2015, RemyCake Bakery was awarded the prestigious Baldrige National Quality Award as the “Most
Attractive Employer” for the third year in a row. The bakery was ranked highest in the categories of work
environment, leadership, interesting work, and employee training. Pal Burger, President of Baldrige Quality
Assurance, stated, “This award has always been the people’s choice award. To win the award three years in a row is
truly something special. The people at RemyCake sure know what they’re doing to put together such a compelling
team, top-notch customer service, and the best baked goods I’ve ever tried. We really thought this was due to the
culture they’ve created there and how each employee is so deeply invested in every customer interaction and the
quality of the products. It’s really a fascinating place.”
RemyCake was incorporated in 2000 and was founded on a culture, which considered its people its most important
resource for providing customers with the best experience possible. The bakery’s goal was to cultivate a culture of
participation, commitment, friendly and genuine service, with caring employees providing customers with the finest
baked goods and shop experience possible. The culture at RemyCake was its foundation and could not be duplicated
by competitors. The founders developed a flat organization, a non-hierarchical structure in which each employee
was a shareholder in the bakery. The rationale guiding this decision was one in which invested and happy employees
would be more committed to quality and service.
People at the Heart of the Organization
Perks of the job, such as a great work environment and open communication, allowed the bakery to become a
relaxed, team-oriented, and fun place to work. The atmosphere of the bakery was informal, yet, was always centered
on high quality. Employees would joke around and socialize with each and with customers. Shopping at the bakery,
for many years, felt like friends serving friends. Each employee shared in the company’s profits, which gave a sense
they were working for themselves. The lack of hierarchy helped the bakery feel like one big team working toward a
common goal. Everyone did everything. It was common to see the founders take out the trash or bakers work the
cash register. Regardless of formal position, every member of the team felt responsible to get the job done, done
right, and to the customers’ highest expectations.
Business insiders credit the bakery’s success to their uncanny ability to hire the right people. This, along with the
organization’s focus on its people and training, ensures a content team who can shine in front of the customer.
Bakery founders have been quoted as saying, “We never hire anyone we can’t have dinner with. When you take the
right people and empower them to take ownership in the business, it makes for an incredible combination.”
RemyCake Faces Reality
Like any organization, RemyCake has experienced change over time. The shop’s culture has had to adapt to these
changes. The founders are reaching the age of retirement and have discussed selling the bakery to the employees.
They are not seen at the bakery as often and are unable to work as many shifts as they once did. Other employees
have gone off to college, retired, have had to move, or have taken other employment. With every new employee the
culture changes, even if those changes are subtle.
Over the last 6 months the bakery has experienced a rise in customer complaints. Business has slowed but not to
alarming rates. Several customers have come into the shop to see employees standing around chatting or watching
YouTube videos on their phones instead of greeting them the way customers have been greeted for years. The
culture of RemyCake is very close-knit. Employees are friends outside of work. When things slow down, they have
a tendency to socialize. The work still gets done and to a high degree of proficiency because many of the employees
have been working there so long they are able to socialize and still complete their work. However, perception is
reality for customers.
Additionally, the bakery has moved forward with expanding regionally. This has seen many of the original location’s
most experienced employees taken out of the bakery to open new stores. While these employees have kept the same
commitment to RemyCake, each move breaks up a team that achieved something very dear to them. New employees
who aren’t privy to the ‘glory days’ seem to be developing their own culture. The newer employees don’t spend time
outside of work with the experienced employees. They aren’t doing anything that hurts the bakery, however, the
closeness, the empowerment, and pride are not what they used to be.
RemyCake is a very special place but is on the verge of losing the key elements of what its greatness was built upon.
The founders have hired your team to help “reinstate the great.” They want you to help RemyCake, and each of its
locations, get back to the core values and bakery culture that lead to their success.
