Setting the Leader Free To Lead
The following case study gives insights into the success story of Elvira’s Cafe in Wears Valley, TN. The owner embraced the challenge to rise up in transformational leadership and has built the team and business they always wanted.
The Sustainable Leadership Model at Elvira’s Café
Company: European Styled Cafe
Location: Smoky Mountains
Industry: Restaurant and Hospitality
Situation
The Cafe, a beloved staple in the heart of the Smoky Mountains, had achieved significant success through the hard work and passion of its owner and loyal team. Customer loyalty was strong, team retention was solid, and the brand had built an exceptional local and tourist following.
However, sustaining that success came at a personal cost to the owner. The business relied heavily on their daily involvement to maintain standards, solve problems, and lead operations. The owner desired to shift toward a leadership model similar to Chick-fil-A’s—investing in and empowering the team to carry the vision forward. Time and resources to build this model, however, were limited.
Habits
While commitment was high, the team’s communication habits needed refinement. Unhealthy communication patterns between front of house (FOH) and back of house (BOH) staff often led to recurring issues and low-level divisions. Conflict management leaned reactive rather than proactive.
Key operational elements like hiring, onboarding, and vision alignment were informal, relying heavily on the owner’s intuition and effort. Systems and processes were functional but outdated, causing profit leakage and reinforcing owner-dependency. Overall, the team performed well, but sustained growth and profitability demanded better structure and shared ownership.
Insights
Post-COVID, stabilizing restaurant teams was an industry-wide challenge—and Elvira’s Café was no exception. Gaps in kitchen and hosting roles compounded the pressure. Among servers and other team members, a subtle “look out for myself” mentality had taken root, more from survival instincts than from ill-intent.
The core insight: the team consisted of good people and good workers who simply lacked the training, structure, and leadership modeling necessary to shift from individual contributors to a unified, self-managing team. They didn’t know a better way—yet.
Formulation
To meet the challenge, a systematic approach was taken:
- Hiring Process Overhaul: Redesigned hiring practices to include value-based interviews, structured onboarding, and consistent check-ins post-hire to foster early engagement.
- Leadership Development: Built a bench of shift leaders and future leaders by providing clear pathways for growth, leadership opportunities, and coaching.
- Systems and Process Updates: Updated key operational systems including scheduling, training, accountability, and feedback loops to streamline operations and maximize profitability.
- Owner Coaching: Worked closely with the owner to refine communication styles, clarify vision and mission articulation, and build consistency in leadership practices—shifting from reactive to proactive leadership over time.
- Cultural Reinforcement: Established ongoing team coaching sessions, personal development opportunities, and a clear focus on embedding vision, mission, and values into everyday operations.
The overall strategy emphasized empowerment without removing healthy accountability.
Transformation
The results followed a natural progression:
- Year 1: Staff turnover stabilized, communication improved, and early leaders began to emerge.
- Year 2: The team started operating under the new culture more naturally, showing ownership of roles and responsibilities without constant oversight.
- Year 3: The team successfully ran the café during the busiest season while the owner was on vacation—a first in the business’s history.
Since then, the owner has continued to build on the foundation laid during the transformation:
- Time Freedom: Owner workload decreased significantly, allowing focus on high-impact activities.
- Profitability: Profits increased by nearly 25% as operational efficiencies took hold.
- Leadership Development: Multiple team members have stepped into leadership roles, performing at higher levels and mentoring others.
Elvira’s Café is now positioned not just as a great place to eat, but as a workplace that builds leaders and sustains excellence through empowered teamwork.