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Case 2 - Throwback Brewery
Case 2 - Throwback Brewery
Early one morning in December 2019, Annette Lee and Nicole Carrier, the founders
of Throwback Brewery (Throwback), sat around a wooden table at their establishment
reviewing their business goals for 2020. Their top goal was to sell more food and
beverages to their existing customers. In calendar year 2019, Throwback had been
averaging food and beverage tabs of $24.77 per person. The owners also strived for
Throwback to be nationally known as a “must stop” New Hampshire (NH) destination
for food and beer, rivaling anything Maine and Vermont had to offer. While this was
a hard goal to measure, the partners decided to gather information informally through
national press mentions, social media tags, and anecdotal stories of people telling them
they were recommended to visit. Keeping employees engaged and making Throwback
one of the best places to work in New Hampshire was also high on their priority list.
The partners would measure this informally by employee comments and attitudes,
employees achieving desired results and employee turnover rates.
Nicole said to Annette over breakfast,
In order to meet our business goals, we have to really tap into the full potential
of our employees and reduce their uncertainty about how well they are doing
on the job. This is why rolling out a personnel performance appraisal program
in 2020 is so important. It may not solve all our problems, but it should help
keep employees focused and motivated. Let’s buckle down and get to work on
the details so we can roll it out in January.
Throwback Brewery: Personnel Performance Appraisal Decisions to Ring in the New Year 1
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During the early 2000’s, both Annette and Nicole held steady corporate jobs in
industry with high pay and attractive benefits. Nicole was a high-ranking executive at
IBM, where she was responsible for product management and marketing. Her time
was spent developing product strategies, showcasing products on large stages across
the United States and talking to the press. Annette was an environmental engineer who
worked for Xact Data Discovery for seventeen years. For twelve of those years, she
had worked as a manager in operations.
Because of high stress at work, Annette grew physically ill on multiple occasions.
She knew she needed to change jobs and start another life for herself. Annette became
interested in the engineering side of brewing, and in 2008, completed the Siebel’s World
Brewing Academy Concise Course in Brewing Technology. After taking this course,
Annette believed she and Nicole should open a brewery. When considering that
possibility, Annette and Nicole talked to small brewery owners. Annette went to
Vermont to learn from Lawson’s Finest Liquids and spent time with White Birch
Brewing. Annette then began an internship at Smuttynose Brewing Company, which
allowed her to gain more information and meet folks in the industry. In 2010, feeling
prepared, Annette and Nicole decided to quit their jobs and start a microbrewery. To
fund this endeavor, they tapped into their personal savings.
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THROWBACK BREWERY’S ORIGINS
In 2011, Annette and Nicole started selling their beer under the name Throwback
Brewery in a small warehouse space on the seacoast of NH. Many breweries in the pre-
prohibition era, which ended in 1919, had sourced their raw ingredients locally and
then processed them before brewing. Annette and Nicole strived to make small batches
of high quality, artisanal beer from fresh local ingredients and felt their brewery was as
Nicole described, “a throwback to the past,” which inspired the brewery’s name.
Having enjoyed a successful ramp up in company sales, in July 2012, Annette and
Nicole took out a loan for several million dollars so they could move to a larger
location. Throwback relocated to Hobbs Farm, a move which would eventually allow
the company to operate a restaurant. However, Annette and Nicole did not have any
restaurant experience. Nicole stated, “We take pride in hiring the right people to get us
to where we need to be. We’ve never felt like we needed to do it all. We trust our
employees.” Annette and Nicole spent three years operating as a brewery with no food
at the new location before they were prepared to open the restaurant to customers.
When Throwback opened its restaurant, it was the only full farm-to-table
restaurant in NH that featured an active working farm and a craft brewery. The farm
comprised twelve acres and four acres were designated for farming. The farm included
a hop yard, fruit trees, vegetables, and animals such as chickens, goats, pigs, and
donkeys. The partners’ goal was to eventually grow 50 percent of the produce they
used and to source everything else within a 200-mile radius.
The new location for Throwback Brewery was located minutes from Portsmouth,
NH, a walkable coastal town with a working port. According to the official
Portsmouth, NH tourism website the town was ranked as the 26th most “historic
place” in the world and 6th most in the United States. Portsmouth had a population of
21,000. The town's local art, shopping venues, and restaurants lured tourists to the area
year-round.
Annette and Nicole resided in a house on the property of Hobbs Farm. Reflecting
on the decision to live on the property, Nicole recalled, “It made financial sense for us,
but it was hard. There was no separation of work and life outside. We could look out
our windows and see the restaurant was busy. At times, employees would walk over to
the house and ask us questions.”
Throwback was a seasonal business. Excluding the winter months and rainy days,
for the most part, they were always at full capacity at 75 seats filled. Compared to the
relatively slow post-holiday period, during the brewery’s peak summer season, 1,600-
2,000 customers were served each week. The month of August saw two-and-a-half
times as much business compared to the winter months.
HUMAN RESOURCES
The company structure included Annette, who assumed the responsibilities of Director
of Brewing Operations, and Nicole, who ran the business as its President. Team Leads
reported to both Annette and Nicole, and included a Head Chef, Head Brewer, Lead
Farmer and Lead Server. Exhibit 1 shows job descriptions of personnel at Throwback.
In total, the company had 42 full and part-time employees: 28 employees worked year-
round, while the remainder consisted of seasonal workers who worked in the summer.
Female employees comprised the vast majority of Team Leads and employees.
Although Nicole and Annette did not actively seek female employees, they knew
Throwback Brewery: Personnel Performance Appraisal Decisions to Ring in the New Year 3
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female employees were attracted to the opportunity to work for them as Throwback
was the only brewery in NH that was 100 percent women-owned.
As reported by the National Restaurant Association, the turnover rate in the United
States restaurants-and-accommodations sector was nearly 75% percent in 2018,
compared to the turnover rate at Throwback in 2018 and 2019 which was under five
percent. The partners believed turnover was low because they worked hard to hire the
right people, there was a strong positive culture established and because the company
did a lot to support the community.
Team Leads, who had all been with the company for at least three years, were
trusted subject matter experts who had the authority to manage day-to-day tasks, but
not to manage people outside of basic scheduling and operational needs. Team Leads
would assist with training but would not get involved in hiring and disciplinary matters.
The majority of management responsibilities including compensation, conflict
management/problem resolution, employee development, and hiring/firing went
through Annette and Nicole. At the height of the season, Annette and Nicole managed
20+ people.
According to Annette, because of financial constraints, Throwback did not have a
General Manager (GM). Instead, Annette acted as GM. “Because I’m so busy,
oftentimes the Lead Server takes on the burden of a GM. This Lead isn’t at the point
where she wants to be a manager. Her role is blurry, but I’m stretched thin a lot,”
Annette stated. On several occasions Annette had to remind frontline staff not to treat
this Lead (and other Team Leads) as a manager and not to treat Team Leads poorly if
they needed to make a management-like decision.
At $7.25 an hour, NH had the lowest minimum wage in New England in 2019. Per
Salary.com, cost of living in Portsmouth was 20 percent higher than the national
average. According to NH state law, a tipped employee of a restaurant who regularly
received more than $30 a month in tips from customers could receive a base rate from
the employer of no less than $4 an hour. Living a quality life on those wages was
challenging and the pay disparity between frontline workers such as bartenders and
behind-the-scenes workers, such as the brewers were always on the partners’ mind. On
average, front-line workers made 30% more than employees like the cooks and brewers
working behind the scenes. One day, Annette said to Nicole, “It’s unfair how much
more the frontline makes because of tips. The tipping system in this country needs an
overhaul. Our cooks, farmers, brewers and other staff deserve that kind of money too.
Without our amazing food and beer, there would be no tips.”
Many Throwback employees held multiple jobs to make ends meet. One Team
Lead stated, “You can't afford to live in this area and make $11 an hour. It's impossible
unless you are living with parents or someone else who is helping to pay the bills. Those
of us who work two jobs are always tired.”
Throwback paid employees the industry average while their benefits such as
healthcare, holidays and paid-time-off were above the industry average. In an effort to
even out the pay disparity, Annette and Nicole would give optional overtime
opportunities to the cooks and brewers when they could.
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cell phones, harassment and discrimination, and health and safety. To help foster a
family culture, Throwback offered employees and their family members generous
discounts on food and beer in hopes that employees would spend time at the brewery
when they weren’t working.
Many Throwback staff members reported that communication from the owners
should be an area for improvement for the company. Several employees commented
that they had received raises over the years but had never been informed in advance
by Nicole or Annette. Instead, employees noticed the increases in their paychecks.
Several employees mentioned they would have liked to have known why they were
being recognized. Many craved more time and recognition from Nicole and Annette.
One Team Lead stated, “Because Annette wears so many hats in the business,
communicating with her can be challenging as she is always busy.”
Nicole and Annette recognized that communication was an area for improvement.
In mid-2018, they implemented a weekly 30-minute meeting with Team Leads to cover
revenue goals, HR related issues such as training and hiring updates, and marketing
and brewery updates. Although these meetings were well-attended, “There never
seemed to be enough time to cover everything,” according to the owners.
Throwback Brewery: Personnel Performance Appraisal Decisions to Ring in the New Year 5
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the brewery had been seeking a solution to improve its appraisals process and make
the transition from paper to digitized appraisals. Dogfish Head conducted monthly
one-on-one reviews, so there were no surprises for its employees at the yearly review.
Borzcki believed the company’s heightened focus on performance management helped
with communication. She noted that all the employees she had spoken to about the
changes greatly appreciated the opportunity to have special one-on-one time with their
managers and to understand how they were tracking in their work. Borzcki believed
that Dogfish Head’s employees became more engaged as a result of the company’s
added focus on performance appraisal.
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Exhibit 1 - Throwback Brewery’s Team Lead Job Descriptions
Head Chef - Primary role is to manage and oversee the entire kitchen operation.
Responsibilities include:
• Menu and recipe design
• Hiring, firing, mentoring, and teaching staff
• Ordering, sourcing, and managing of inventory, including liaising with
suppliers
• Pricing and maintaining target margins
• Ensuring the restaurant meets all regulations, including sanitary and safety
guidelines
• Maintaining a high level of consistency and quality in all food we serve, while
also ensuring we are efficient
• Food prep and cooking
Head Brewer - Responsible for all aspects of the beer production process and day to
day operations of the brewery.
• Sourcing, selecting, and buying raw materials, including managing hop
contracts
• Manage and participate in the brewing process, including brewing, kegging,
cleaning, canning, barrel-aging and fermenting
• Recipe creation
• Record keeping and quality control
• Manage production schedule
• Manage maintenance schedule
• Inventory control
• Maintain health and safety standards
Lead Server - Responsible for creating a comfortable, friendly, and high quality
“dine in” customer experience. Other tasks include:
• Help in hiring front of house staff
• Managing inventory needed in front of house
• Point for resolving customer issues
• Training new staff
• Processes and procedures for opening and closing
Throwback Brewery: Personnel Performance Appraisal Decisions to Ring in the New Year 7
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Exhibit 2 - Throwback Brewery’s Core Values
Our company’s core values guide us and really define who we are as people and as an
organization. We feel very lucky to employ so many talented folks that share our values
– helping us all strive in unison towards the same goals. While we often focus on our
most visible value of loving our community and planet, our complete set of values are
as follows:
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Exhibit 3 - Sample Performance Appraisal Form for a Craft Brewery
Sample
E=Performance
ExceptionalAppraisal Form for a Craft Brewery N= Needs
M= Meets
Work Quality, Processes and Results
Consistently follows all department guidelines for work quality and Comments:
product/service expectations
Prioritizes tasks in order of importance
Accomplishes accurate work with minimal assistance or supervision
Pursues efficiency and economy when using company resources
Skill level demonstrated is correct for position
Provides services and/or product that consistently meet the needs
and expectations of the Company
Uses problem solving methods to improve processes
Teamwork
Understands, supports, and focuses on the vision, mission, goals and Comments:
objectives of the Company and the team
Promotes and demonstrates trust, mutual respect, and a cooperative
work environment
Offers assistance to others
Encourages and recognizes the contribution of others
Contributes to the development, cohesion, and productivity of the
team
Individual Performance and Self-management
Exhibits initiative and action in improving knowledge and skills as it Comments:
relates to current position
Seeks and assumes additional responsibilities
Arrives to work on time
Attends work regularly
Makes efficient use of work time
Follows all department rules and procedures
Works in a safe manner
Uses and maintains equipment properly
Demonstrates integrity and honesty
Innovation and Change
Adapts to new or unanticipated situations Comments:
Looks for and acts on opportunities to improve work processes
Identifies, shares, and receptive to new ideas
Uses creative and innovative thinking to contribute to organizational
and individual objectives
Employee Comments/Suggestions/Goals:
Source: Provided to the case writers by the Director of Human Resources of another
craft brewery that granted permission for its use in return for anonymity.
Throwback Brewery: Personnel Performance Appraisal Decisions to Ring in the New Year 9
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REFERENCES
Brewers Association (2019, August 14). The diversity data is in: Craft breweries have
room and resources for improvement. Retrieved March 29, 2020 from:
https://www.brewersassociation.org/communicating-craft/the-diversity-data-is-in-
craft-breweries-have-room-and-resources-for-improvement/.
Brewers Association (2019, December 20). The Brewers Association looks back at
the biggest moments in U.S. craft beer. Retrieved March 29, 2020 from:
https://www.brewersassociation.org/press-releases/big-year-for-small-and-
independent-beer-in-2019/.
Cost of living calculator. (n.d.). Salary.com. Retrieved July 4, 2020, from
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(n.d.) Dogfish Head Craft Brewery’s off-centered approach to talent management.
Retrieved June 7, 2020, from:https://www.youtube.com/watch?v=YJPAB1aUFEc.
Gribbins, K. (2016, April 12). Are you a woman looking to work in craft beer? We
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work-craft-beer-ask-female-leaders-share-stories-advice/2/.
Interviews: On-site interviews with Annette Lee, Nicole Carrier, and company staff
took place at Throwback Brewery, North Hampton, New Hampshire, from
December 17-19, 2019. Subsequent information was gathered via e-mail
correspondence.
Knudsen, J. D. (2016, May 12). Brewing up new ways to assess performance. Oregon
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assess-performance
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New Hampshire Department of Labor. (n.d.). Retrieved March 27, 2020, from
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Scholl, K. (2017). Small and efficient — Crafting a world-class performance culture.
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