Back in Japan, Mr. Hasegawa opened a coffee shop. He soon launched a series of eateries, including several casual Italian restaurants called Cafe La Boheme. Their European atmosphere, featuring high ceilings and glittery chandeliers, became popular among trendy Japanese. Waiters and kitchen workers, mostly part timers, are paid an hourly wage based on performance markers, such as how alert they are in spotting when a customer wants another drink. They watch each other like hawks, since all workers at the restaurant vote on who deserves raises or promotions.
Top performers can see their pay rise much higher than an average restaurant waiter's.
Managers' pay is linked to the size and profitability of their restaurants. Poor performers are demoted automatically after 18 months, sometimes sooner. Their pay figures are plastered on the wall for all employees to see. Go-getters, such as Ippei Takahashi, thrive under Mr. Hasegawa's system. He felt stifled at a stodgy health-related company.