The Corner Deli That Dared to Break Out of the Neighborhood

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    There was also a lively debate over whether the company should spend money on a new payroll system, as well as an on-the-spot interview of anew manager, who was drilled not only on his background but on his favorite gelato flavor, dulce de leche.

    Managers also discussed the company's latest financial data. Zingerman's pushes its employees to take an interest in its financial picture, which

    helps determine their generous compensation. Along with hourly wages, vacation time (as much as six weeks after 20 years), health and dental care

    and food discounts, full-time employees receive ''gain sharing,'' which pays out if their part of the company exceeds its annual business plan, Ms.Singleton said.

    The structure also helps explain why margins remain low even as revenue has risen. To pay employees, support local producers and contribute tothe community, ''a big piece of it is charging enough money,'' Mr. Weinzweig said.

    But Mr. Saginaw said profit, in itself, was not Zingerman's motivation. ''We've had dozens and dozens of opportunities to franchise, sell the name,

    take the check and walk away,'' Mr. Saginaw said.

    Instead, Mr. Weinzweig said, the idea was to create a special experience. ''Our goal in 2020 is to leave our world better than it was when we camehere,'' he said.

    CAPTION(S):

    Photos: Kristen Hogue working a lunch hour at Zingerman's Delicatessen. (Photo by Tom Pidgeon for The New York Times)(pg. C1); Zingerman's,

    based in Ann Arbor, Mich., also does business by mail.; Paul Saginaw, left, and Ari Weinzweig, the co-founders of Zingerman's, are constantly

    updating long-range plans for the enterprise.; Weekend afternoons and lunch hours are always peak times at Zingerman's. Among the recentcustomers was Shih Yu Lee, a university student. (Photographs by Tom Pidgeon for The New York Times)(pg. C6)

    Source Citation

    Maynard, Micheline. "The corner deli that dared to break out of the neighborhood.(Zingerman's Roadhouse)(Business/Financial Desk)."New YorkTimes 3 May 2007: C1(L).Academic OneFile . Web. 19 Jan. 2010. .

    Gale Document Number:A162911374

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