Feel Good, Inc.

So. How are you feeling?

Having a bad day at work? A bad year?

I’m not breaking news by saying that 2011 was tough for a lot of us. Many states spent the year with double digit unemployment. We saw constant economic protests, stagnant politics, even actual war and famine. But something else has been going on for the past few years, under the surface of the major stories. I’ve certainly felt it; I’m sure you have, too. It’s this general malaise about what it is we’re doing here.

In an economy that is globalized, homogenized and automated, the individual worker is more often than not left wondering: What exactly am I accomplishing?

I was having this conversation with a colleague of mine not too long ago, and our agreed conclusion was that the first advertiser, politician or religion that could address this disaffected disconnect could rule the world.

Lawsuit Alleges Sexual Harassment at Breastaurant. Again.

Another day, another sexual harassment lawsuit against a scantily-clad-woman themed pub-and-eatery.

We’ve visited this issue before. A couple of times, actually.  But this time, it’s in my own back yard.

The Tilted Kilt, a sports bar themed around tiny plaid skirts, has a location on Wabash St. in the heart of Chicago’s loop. Last June, 19 of its employees complained to the EEOC that they were being harassed by one of the managers there, and that the company did nothing about it.

Now, the EEOC has given them their “right-to-sue” letters, which means the agency has finished its investigation. The Plaintiffs wasted no time filing their complaint.

But I know you guys just want the salacious details, so let’s get to it. The Tribune is reporting that the allegations range from calling one of the waitresses a “dirty kitty” to… well, I’ll let the paper tell you:

Taking a straw full of water, placing it down at least one of the plaintiffs’ outfits, releasing the water and making such comments as “I’m trying to get your panties wet.”

So… that’s not good.

Is there a takeaway in this sordid story for small business owners? Of course. First, if you are going to operate a breastaurant (go ahead and laugh, but annual sales are over $1 billion for places like this) — Anyway, if you’re going to run a breastaurant, hiring really, really smart managers is your number-one priority.

Second – and this is true for more than just Hooters wannabes – your company’s atmosphere needs to be based on respect, dignity, and professionalism, regardless of the attitude you convey to the public. There’s a reason that workplace complaints are so common at call centers, collection agencies, and boob-themed dinettes. The aggression, sexuality, or other attitude the company encourages outwardly is seeping back into the company itself. You must avoid this. You must invest and train and really, really care about creating a corporate atmosphere that differs from the perception you give off to the public. Because if there is a complaint, you are already behind the 8-ball. I promise you, no one was all that shocked that the Tilted Kilt got sued. Your #1 job is to change that perception of your company when the EEOC comes calling.

Finally, it’s worth noting that the Plaintiffs sued The Tilted Kilt’s corporate umbrella, which is simply a franchisor for each location, but they’re not going to last very long in this litigation. The actual restaurants are owned and operated by franchisees, who are ultimately responsible for the treatment of the restaurant’s employees. The only way the Tilted Kilt’s corporate entity is staying in this lawsuit is if the plaintiffs can somehow show that the training or other support they provide to the franchisee encouraged or sanctioned the discriminatory treatment, and I doubt the company has anything about kittens or straws in its management training books.

And, again, this concept is universal. Franchise owners: you cannot count on the corporate name as a shield from this type of liability. Ultimately, you will be held accountable for the practices and written policies your employees work under. Just like every small business owner, it’s imperative that you have them reviewed by an experienced employment attorney.

Oh – one more thing: I would never judge anyone’s business model, as long as it was legal. If you want to put post-college-age girls in tiny skirts to make money… well, it’s America. But as the father of a baby girl now, I will add the following observation: Buffalo Wild Wings servers wear polos, and the company’s doing just fine.

How NOT to Go Out of Business

So, apparently it’s not a great time to be in the baked goods industry.

Hostess has filed for Chapter 11 for a second time in 10 years. And last month the locally-renowned bakery Rolf’s Patisserie shuttered its doors permanently.

It’s obviously not fair to compare a multinational food product manufacturer with a micro-regional fancy-cake-maker, but I’m going to do it anyway, because it’s an easy way to make a point.

Both of the news stories surrounding these companies center on employment issues. Almost immediately after it filed for bankruptcy, Hostess cited its pension liability and rigid work rules as the principal issue in restructuring the company; it needs to get out of its current collective bargaining agreements and start over, it says. The Teamsters disagreed, of course, but the correlation was there. Even though the unions are going to take it on the chin, the message turned out all collaborative and warm. The company that brought us Twinkies and other delicacies was fighting for its life, and it just needs the union’s help to stay afloat. The union obviously held a press conference of its own, but the tone was already set. Hostess, for PR purposes, at least, was playing nice.