Bonus Scheme

Introduction

We believe in encouraging its staff to actively participate in the growth of the business. Each outlet will be able to ensure the success of their own monthly Incentive Plan, by helping to monitor day to day operational activities i.e. wastage, breakage’s, equipment etc. and maintaining Customer Satisfaction. Reward under the Incentive Plan will be achieved by the success and partnership of every team member. If BLUE PUDDING does well, individuals can share in this prosperity.

How does it work?

The Incentive Plan aims to reward an entrepreneurial spirit in each of BLUE PUDDING’s outlets. To this end results will be measured using the following criteria:

Net Contribution & Customer Satisfaction

Net Contribution

Each outlet will have a monthly Net Contribution target set and agreed before the Incentive Plan year. The outlets actual Net Contribution will be determined each month by subtracting all the outlets’ expenses (including labour costs and cost of food, beverage and other services) from the Sales Revenue. The Net Contribution Total will be calculated by comparing how well each outlet has performed against the target, this will then be expressed as a percentage above or below target.

(*Please note that major expenditures, budgeted for and not incurred for a specific month are subject to adjustment, e.g. a planned and budgeted China replacement in an outlet of £20,000 in February is incurred at a later month. The amount will be transferred to the month the expense is incurred).

Customer Satisfaction

The scores from Mystery Client reports will determine this and the level of monthly Customer reports received.

Mystery Client reports must achieve a minimum score of 80% to trigger eligibility.

The monthly Mystery Client Summary Reports will operate, in that every complaint received in that same month for your department, we will deduct 1% from your eligibility payment from your Mystery Client report (should you have achieved the target of above 80%).

Calculation

The Net Contribution Totals and Customer Satisfaction Totals will be added together and where there has been an increase, this will automatically trigger a payment. However, if there is a minus in one area and an increase in the other the cumulative total for both areas will determine the percentage of the incentive payment. Please refer to the table at the bottom of the page.

Example 1:

If an outlets monthly Net Contribution target is £10,000, if that outlet achieves a Net Contribution of £12,000, it will have a Net Contribution Total of 20%.

Example 2:

Should you have achieved 99% in your Mystery Client report, but you receive a complaint, we will deduct 1% from your payment. You would therefore receive an increase in monthly salary of 8.5%.

Example 3:

If an outlet in the monthof January beats its Net Contribution target by 10% and its Customer Satisfaction target by 5%, the outlets cumulative total above target is 15% and all eligible employees in that outlet will receive a payment under the Incentive Plan of 7.5% of gross monthly salary.

Example 4:

If an outlet in the month of April beats its Net Contribution target by 10% but is 8% below its Customer Satisfaction target, it would receive a cumulative total above target of 2% (refer to table for payment).

Example 5:

If an outlet in the month of May beats its Customer Satisfaction target by 15% but is 16% below its Net Contribution target its cumulative total is not above target so no Incentive Plan payment is payable.

Eligibility

Managers, Assistant Managers, and all permanent employees who are directly part of the payroll cost centre will be eligible after successfully completing their probation period.

The following departments will be assessed differently:

Linen Room, Store Room, Stewarding, Banqueting, Production Kitchens, and Pastry Kitchen.

These departments will be assessed based on the profitability of the whole Company. No account for these departments will be taken of Customer Satisfaction. Payments under the Incentive Plan will be based on BLUE PUDDING’s Overall Profitability only.

Payment will be calculated monthly but paid on an annual basis and will be paid out in March of each year. The maximum achievable will be set at 10% of any employees’ monthly gross salary. Payment will only be made to employees still in the business at the end of the financial year. Any accruals to staff that have left will be distributed among the remaining staff.

Example 6:

If BLUE PUDDING beats its profit target by 10%, all eligible members of staff from the above departments will receive a payment under the Incentive Plan of 5% of their gross salary for that month subject to usual deductions.

Payment

Any payments due under the Incentive Plan will be calculated and paid on a monthly basis (a month in arrears) aside from those employees who are eligible for the annual bonus payment. The maximum achievable for this Incentive Plan will be set at 20% of any employee’s monthly gross salary. Payments will be subject to Tax, National Insurance, and Pension contributions deductions in the normal manner.

Communication

The targets will normally be set and communicated by the General Manager, at the beginning of the financial year to which the Incentive Plan relates.

Variations

All payments are discretionary and therefore do not form a contractual right or condition of employment. BLUE PUDDING reserves the right to amend or change to include specific eligibility criteria. Any such changes or amendments will be communicated to individuals as soon, as is practicable.

Disputes

In the event of any disputes concerning the eligibility or calculation of the payments made under the Incentive Plan, the matter will be referred to the Human Resources Controller, or in their absence a Senior Director, whose decision will be final.

**Please note for Managers and Assistant Managers**

You will continue to be assessed annually. A summary of the last 12 months performance of your department; taking into account the above criteria.