AKFCF Fall 2015 by Lionheart Publishing Inc.

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Valuing sustainability & Retention

Key employee retention and longterm facility management are two crucial aspects of restaurant management. This issue tackles both topics, with advice from industry experts.

Also Inside: GAC Report â&#x20AC;˘ REACH Winners â&#x20AC;˘ 2016 Convention Preview Southeast Regional Report

GREAT CHICKEN

starts with

GREAT CHICKEN

Your Pilgrimâ&#x20AC;&#x2122;s contact:

Roger Austin

roger.austin@pilgrims.com 502-245-1681

Cover Operations This issue focuses on operations – employee retention and facility management. First, financial advisor David Zammit explains how to use phantom stock plans to reward and retain key employees. Then, learn from industry experts about the steps you can take to reduce your carbon footprint, beginning on page 18.

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f ea tures 14 GAC Report

Temperatures Cool Down, Congress Heats Up By Dan Gans and Mary Donohue

Washington has wrapped up its legislative business for the summer session of 2015. As it stands, Congress has made some important strides toward passing landmark legislation, but challenges persist in both chambers.

Sustainability is the Future By Jeff Dover, CRFP

One of the hottest topics in the restaurant industry is sustainability. Most facility management professionals are challenged to reduce their carbon footprint and the amount of trash their restaurants produce.

Using Phantom Stock Plans to Reward and Retain Key Employees By David Zammit

As the name implies, key employees who are selected to participate in a phantom stock plan are credited with a specific number of hypothetical shares of the business.

2016 Annual AKFCF Convention Highlights By Kelly Rodenberg

The theme of the 2016 Annual AKFCF Convention is “Celebrating Our Heritage, Building Our Future,” and it will be held in Atlanta, Ga.

KFC Foundation REACHes Out By Krista Snider

2015 sees even more REACH Grant winners and expansions to existing programs.

d e p a rt me n ts 4

From the Editor By Michelle Hunt

President’s Report By Chris Fowler

NCAC Report By Tom Slater

10 In the News 48 CARIBLA Report By Zaira Guevara

50 Beverages Report By Jody Luihn

52 OEC Report

By Bryan Robinson

54 KFC/NPC Report By Dale Black

56 RSCS Member Programs By Lainie Yarmuth

58 Communications Committee By Kevin Schlutz

59 Regional Short By Bonny Shelton

60 Executive Director Update By Kelly Rodenberg

62 Legal Update By Ronald Gardner

A K F C F Qu a r t e r l y

Fall 2015

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Happy Fall Y’all!

Official Publication of the Association of Kentucky Fried Chicken Franchisees AKFCF Quarterly Mission Statement

The AKFCF Quarterly is the voice of today’s franchisee family and supports the mission of the Association of Kentucky Fried Chicken Franchisees, Inc.

Happy Fall y’all! This Iowa girl sounds a little Southern but in truth, I LOVE Fall. With that said, it’s one of my busiest times as a mother, wife, volunteer, business owner, and employee. As we go through our busy, day-to-day life, it is hard to take time to think about the future, let alone strategize for it. In this issue you’ll find an educational article about a financial and employee retention practice, as well as an article on reducing your carbon footprint with sustainable facilities, practices or adding sustainable features to existing facilities. While these concepts are not new, perhaps the way we tackle them is more defined. In “Sustainability is the Future,” starting on page 18, facilities expert Jeff Dover outlines simple ways to increase sustainability. The first step, benchmarking your baseline usage, is something that can be done through our many RSCS resource partners. Those who have taken the time to evaluate waste and energy usage have seen significant savings. “Using Phantom Stock Plans to Reward and Retain Key Employees,” written by 2015 AKFCF Convention workshop speaker David Zammit on page 22, is the first in a series of financial planning articles we’ll be sharing with you over the coming months. We appreciate David’s willingness to continue to educate our members and readership. Speaking of Convention, we have a sneak peek at the 2016 Annual 4

A K F C F Qu a r t e r l y

AKFCF Editorial Team AKFCF President Chris Fowler Editor Michelle Hunt Assistant Editors Sharon Clawson Julie Mantlo Editor Emeritus Jeanine Rosselot Darlene Pfeiffer AKFCF Administrative Director Debbie Newton Communications Chair Kevin Schlutz Past President Joan Bowling

By Michelle Hunt

Fall 2015

AKFCF Convention in Atlanta, Ga.! Our wonderful Executive Director, Kelly, takes you through the preliminary plans for our upcoming event and encourages you to register early and make your travel plans to join us in February. I will be there, will you? Let me wrap up by inviting you to look at the enormous number of KFC employees both company and franchise that have been blessed by our KFC Foundation with REACH scholarships. It’s a truly inspiring and remarkable testament to continuing the Colonel’s legacy of building our future generations and bettering each other. After you dab your eyes from those tears of joy, keep the tissues close as you read the Government Affairs update from Washington, D.C. Just kidding…sort of. Then you can move on to all the great columns we have from our various leaders and a very special Regional Short from our family members in the Southeast who are celebrating their 50th Anniversary with some very special events at their upcoming meeting in November. Let’s wish them all a big congratulations! I just attended the Super Regional and will see my Southeast friends in November, and then it will be Convention time before we know it! Register early so you can join our family and KFCC for another fantastic reunion of our great Brand. Warm Regards,

The AKFCF Quarterly (ISSN 1071-9873) is published by the Association of Kentucky Fried Chicken Franchisees for its members and their friends. AKFCF is the independent Association of Kentucky Fried Chicken Franchisees. Franchisee Editors: Michelle Hunt 14812 N Avenue, Columbus Junction, IA 52738 Phone: (319) 728-3282 Fax: (319) 728-2940 michelle@centraliowakfc.com Sharon Clawson 70 Clinton Plaza, Clinton, IL 61727 Phone: (217) 935-3939, ext.15 SharonC@restmgt.com Julie Mantlo 855 Lovers Lane, Suite 111, Bowling Green, KY 42103 Phone: (270) 783-8880 julie@rogmancorp.com Zaira Guevara (International Liaison) Pty # 69328, P.O. Box 25207, Miami, FL 33102 Phone: (305) 384-4242 (U.S.) (011) 506 2208-7828 (Direct) zguevara@caribla.com POSTMASTER: Send address changes to Lionheart Publishing, Inc., 506 Roswell Street, Suite 220, Marietta, GA 30060. Copyright ©2015 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 1071-9873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation. AKFCF Advertising and Editorial Support Office

Send all advertising and editorial submissions for AKFCF Quarterly to:

Lionheart Publishing, Inc. 506 Roswell Street, Suite 220, Marietta, GA 30060 USA Phone: (770) 431-0867 • Fax: (770) 432-6969 E-mail: lpi@lionhrtpub.com President John Llewellyn, ext. 209 llewellyn@lionhrtpub.com Publishing Editor Cory Sekine-Pettite, ext. 220 cory@lionhrtpub.com Art Director Jim McDonald, ext. 223 jim@lionhrtpub.com Advertising Sales Aileen Kronke, ext. 212 aileen@lionhrtpub.com Sharon Baker, 813-852-9942 sharonb@lionhrtpub.com Reprints Kelly Millwood, ext. 215 Kelly@lionhrtpub.com w w w.a k fc f.c o m

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Reinventing The Brand 6

By Chris Fowler

Stepping back and somehow leaping forward Whether it’s the iconic Colonel, the Original Recipe, family values, the bucket or the slogan “Finger Lickin’ Good,” we have entered back into where it all began. Living the retail dream of having the number-one tasting chicken and top-selling restaurant by next year, running an efficient system logistically, and personalized experiences for our customers – it is the goal of our very near future. I am excited about this and you should be too. The beauty and curse of brand legacy The value of a brand’s legacy and of its newer direction only are obvious when you already are in both arenas – and in a mess. In the case of KFC, trying to blend either sector when we are active in both can mean plenty of challenges. You may have a hard time adjusting to projects needing an overhaul, as well as the processes involved, but as of September, seven American Showman assets are completed; the goal is to have 70 percent of the system updated under this design by 2017. Forty percent of 6

A K F C F Qu a r t e r l y

Fall 2015

Photo: KFCC

As we work together to build the KFC Brand and to inspire trust between the KFC system and customers, we would be remiss if we failed to remind each other that truly adhering to our past – and educating customers about it – is one of the most powerful tools we have to improve our image.

Norm Macdonald as the Colonel in a new KFC TV spot.

the system now has new packlines installed. Please know that there is nothing wrong with stepping back and asking questions, making suggestions, and wondering if this is the best route to go. KFC and AKFCF are listening and making it easier for you to get the immediate assistance you require. Reinvention and introspection working together We know our Brand’s faults, so lets embrace our strengths. We need to learn how to use these skills of looking at our Brand and responding; this is how to overcome any adversity. When new ideas, customers, or technologies cross your path, you can use your discerning eye and know what is best – or at least have a clue. Always find your regional audience, not just any audience. We are working on fixing the recipe, the cooking times, training and

communication. Fixing our Original Recipe is one of the most important steps we are about to take! Even the Colonel would be happy with the flavor. With AKFCF, KFCC, and NCAC working together, we WILL complete the Brand Turnaround started last year and see record sales and profits for years to come. We all have heard stories of the Colonel raising cane when the quality of food wasn’t right; I have to believe he would be happy with where we are going with our food quality, buildings, and advertising. Reinvention is a beautiful thing to grasp, and it is ahead for many of us. Rolling with the changes often will take you to a better place than you could have predicted. Things rarely go as planned, and that’s just the way it is. w w w.a k fc f.c o m

So much more than just beans. See what Del Monte® can do for you.

You’ve relied on our green beans for years. Now, we invite you to explore our full offering of fruits, vegetables and tomatoes. Visit www.delmontefoods.com/foodservice or contact Al Calabrese, National Sales Manager, Del Monte Foodservice, phone: 724-939-7291 email: al.calabrese@delmonte.com © Del Monte Foods Inc. All Rights Reserved.

N C AC

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Customer Service Starts at Home 6

By Tom Slater, NCAC Vice-Chair

In February, we rolled out a new system to resolve customer complaints via the 1-800-Call-KFC line. While the new process has not been without issues, we have made progress. I wanted to share with you where we are, as well as where we’re going with this important program. How we got here Over the past several years, we have seen dramatic declines in our transaction counts. While it’s easy to blame marketing issues, it was also evident that our customer service measures were rapidly declining as well. Our 1-800 Sub-Committee (including at the time John Pankratz, Shahid Chaudhry, Tony Frazier, and Terry Moffit) reviewed the data and learned quickly that we had an increasing number of calls to the 1-800 line. There seemed to be two issues: the customer didn’t realize there was a problem until they got home and/ or they did not give the restaurant an opportunity to “fix” the problem before calling the 1-800 number. When a customer called the 1-800 line, a report would be sent to the restaurant and/or to the ARL, franchisee, etc. At that point, different organizations handled the issues in different ways. See the flow chart above. But the data showed one “simple” problem: many customer complaints were not handled at the restaurant to the customer’s satisfaction when the issue occurred, and they weren’t resolved after the customer called the 1-800 line. About 10 percent of all calls resulted in the customer having to call two or more times. See the pie chart at right. 8

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Translating this to dollars, here’s what that could mean to your restaurant – and mine: • 1,862 guest transactions per week • 317 experience a problem (17%) • 184 tell a team member (58%) • 114 remain Dissatisfied or Highly Dissatisfied (62%) • 68 guests are Highly Unlikely to Return (60%)

~7500 Multiple Calls 4+ 16% 3x 18%

2x 66%

At a check average of $12, that’s $816/week in lost sales, or more than $42,000 each year! Where we are The Sub-Committee looked at Best Practices from within the industry and brought a strong recommendation to the NCAC last December that was designed to address a customer complaint as soon as possible if it wasn’t handled at the restaurant. Service Check would take the call and offer the customer a nominal voucher – depending on the value of the meal purchased – to try to satisfy their issue. “Chronic” complainers would be blocked from receiving additional vouchers, but their complaints would continue to be forwarded to the operators. Good news First, the number of complaints per restaurant, per period has decreased from 3.6 to 3.0, in spite of increasing our transactions. This suggests that we

are doing a better job at the restaurant, providing better customer service or addressing concerns on the spot. (See “PRA Complaint Trends” on pg. 9.) When customers do call the 1-800 line, we are resolving more issues within 24 hours, close to the same levels as a leading restaurant chain! (See “Guest Resolution Trend Comparison Report” on pg. 9.) And finally, with continuous program improvements and agent training, we’ve seen a decrease in the number of vouchers being used. (See “% of Vouchers Issued Per Complaint” on pg. 9.) The distribution of vouchers has probably been the biggest concern I’ve heard from franchisees, so let’s look at the reality. Assuming a 35-percent F/P, the average restaurant would take a $4.19 “hit” per period. w w w.a k fc f.c o m

*2014 % of Guest Issues Resolved Per Period: 27%

*2014 Average Complaints Per Period: 3.74

Per Period

# of Vouchers Issued for System $$ Value of Vouchers Issued for System

7,853 $51,902

Average $ Value Issued

$6.61

Average # of Vouchers per Restaurant

1.81

Is it possible that some of these vouchers are going to people scamming the system? Yes. Is it likely that “most” of them are from scammers? Probably not. As I mentioned, the system is designed to kick out chronic complainers, so the scammers might get lucky once but not much more.

What’s next for the 1-800 program? When you look at the data, you see that the new program has had a positive impact on the business and the Brand. However, that does not mean the NCAC is satisfied with where we are, and there are certainly varying degrees of issues with individual restaurants and operators. Working with KFC’s Gary Grieshaber and his team, we have had to do constant monitoring and training of Service Check agents. The team listens to feedback and concerns from operators, discusses with franchisees on the Sub-Committee, and takes action to resolve those concerns.

The NCAC reviewed the results at the September meeting, and will be evaluating options in December, for possible implementation early next year. In the meantime, the most important thing we can all do is to focus on providing outstanding customer service in the first place. But sometimes, things happen out of our control, and then the best we can do is to address a complaint at the restaurant the moment it happens. If we diligently follow “PLEASE” on every concern brought to us at the restaurant, we will significantly reduce the calls to the 1-800 number and further improve our customer satisfaction scores.

Does customer satisfaction really matter? Aside from the very real fact that it’s much easier and cheaper to get our current customers to come back more often than it is to get new customers, the answer is: “Yes, it matters.” The data shows clearly that restaurants with fewer complaints this year have performed better. (See “SST Growth % Since Inception of New 1800 Program” above.) Fa ll 2 015

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A Message from Jason Marker – Adding Hope Will Change our World

“One of my lifetime philosophies is you get back what you give.” — Colonel Sanders KFC’s founder, Colonel Sanders, had a passion for giving back and helping those struggling to feed their families. Through KFC’s new Add Hope™ platform, we carry on the Colonel’s legacy by raising funds to feed the hungry and by volunteering in our communities. Add Hope provides KFC with a meaningful way to give back and Make A Difference. There are three components to Add Hope: the annual in-restaurant campaign benefitting the World Food Program, local hunger initiatives like the Harvest program, and local volunteerism. Each of these is critically important to our Brand and to the heritage of the Colonel.

You’ll hear more about volunteerism and local hunger efforts soon, but check out this video message (requires TeamKFC login) from Jason Marker, president, KFC U.S., to learn how KFC as a global Brand can change our world through Add Hope: http://bit. ly/1VsjngO.

Source: KFCC

Micky Pant Named Yum! China CEO Yum! Brands Inc. has named Micky Pant its new CEO of Yum! Restaurants China, where he will replace the retiring Sam Su, triggering a shuffling of management within the Louisville, 10

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Ky.-based quick-service restaurant giant. Pant is the CEO of KFC. Yum! said that Joey Wat, president of KFC China, would become the CEO of KFC. Peter Kao, senior vice president and brand general manager at Pizza Hut China, will take over as CEO of Pizza Hut. Both will report to Pant. Roger Eaton, Yum!’s COO, will be CEO of KFC outside of China and India and will report to Yum! CEO Greg Creed. “Sam Su is a restaurant industry pioneer in China, having established KFC and Pizza Hut as global powerhouses in the world’s fastest growing economy,” Creed said in a statement. “While we respect and support his decision to retire after a long and successful career with Yum!, we are grateful he has built a strong leadership team to carry on and leverage the unprecedented growth opportunity that China presents.” Same-store sales have struggled mightily in China over the past year amid a health scare there, but Creed suggested sales had turned around, noting that they have “turned significantly positive, demonstrating continued recovery in the business.” Su is the vice chairman of Yum! Brands and became the chairman and CEO of Yum! China in 2010. He was named president of the China Division in 1997 and helped Yum! grow to more than 6,700 restaurants in more than 1,000 cities in the country. He will serve as an executive advisor through February and will remain on Yum!’s board. “We thank Sam for his many significant contributions to Yum! and for ensuring a seamless transition of management to Micky Pant, who I am extraordinarily pleased will become chief executive officer of Yum! Restaurants China,” Creed said. Pant became CEO of the KFC division in 2014. He has held many leadership positions in Yum! Brands in various divisions prior to that. “Micky has been one of our most effective and visionary leaders at Yum!

for the past decade,” Creed said. “He is one of our finest brand builders in the business with an unparalleled ability to understand consumer insights and to pursue strategies that build trust and loyalty.” Eaton, meanwhile, has been COO since 2011, but has been with Yum! Brands for more than 20 years and has held several positions – including at one point CEO of KFC U.S. “As the Yum! chief operations officer, Roger strengthened our operations capability, food quality and safety, and sustainability,” Creed said. “He is a restaurant industry veteran who definitely has KFC shortening in his veins, having held many senior management roles with the brand in the U.S. and internationally. Roger is a tremendous leader and I’m confident he and his team will take the KFC Brand to new heights globally, building on Micky’s success.” Source: NRN.com Yum! Brands Foundation and The ARK Project Perform Random Acts of Kindness Throughout Louisville This summer, Yum! Brands Foundation partnered with The Acts of Random Kindness (ARK) Project to complete various acts of service in the Louisville, Ky., community. The ARK project travelled the country this summer during a 10-week tour, performing random acts of kindness in various communities, inspired by one simple question: “What would happen if kindness became normal?” Over a two-day period, the Yum! and ARK team performed three acts of random kindness. The first stop was at The Center for Women and Families (pictured), an organization that provides services for victims of domestic abuse or sexual assault and offers family therapy in the greater Kentucky area, to help landscape the exterior area of their newly remodeled facility. The team’s second stop was at the Franciscan House Senior Assisted w w w.a k fc f.c o m

Yum! Brands

Yum! and ARK team members volunteered at The Center for Women and Families to help with landscaping.

Living Center where they hosted a Senior ‘Citizens’ prom where more than 80 seniors attended, dancing the night away. The group’s final stop proved to be the most impactful, sort-

ing and packaging more than 7,000 meals with Kids Against Hunger, a humanitarian food-aid organization, helping to feed more than 200 children for a month.

To learn more about The ARK project please visit, their website at http://www.arkprojectnow.com. Source: yum.com

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condolences Gretchen Bennett Powell, 54, the daughter of franchisees Bill and Irene Bennett of Valdosta, Ga., passed away unexpectedly on Friday, Aug. 7, 2015, at her home. For many years, she was the bookkeeper for her family’s KFC businesses. Gretchen is survived by her husband of 13 years, Carl G. Powell; a daughter and son-in-law, Ryan Ann Wisham and Curt Watson; a son, Michael Bennett; two grandchildren, Madison Ann Wisham

and Gavin Watson; her parents, Bill and Irene, all of Valdosta; a sister, Carolyn Betters of Thomasville, Ga.; a niece, Michelle Betters of Boston, Mass.; an uncle, Buddy Blalock of Madison, Fla.; and her father-in-law, Grayson Powell of Valdosta. Robert R. Sparks, the father of AKFCF Family members David and Roger Sparks, passed away on Sunday, July 12, 2015 at Socorro

General Hospital in Socorro, N.M. He was 83. He is survived by his wife of 62 years, Norma; their children: Gary L. Sparks (Deborah) of Santa Fe, Marchell M. Pompeo (Paul) of Las Cruces, David R. Sparks (Dianna) of Albuquerque, and Roger A. Sparks (Trang) of Albuquerque; nine grandchildren; five great grandchildren; and his siblings, Jim Sparks (Berna) and Bernice Sparks Tuttle (Art).

Know Your Acronyms In our business, there is a great deal of terminology and jargon. As more processes and systems are added, the acronyms continue to pile up. Thus, AKFCF Quarterly decided it is time for us all to brush up on the many acronyms you will hear in your daily lives and read about in this magazine. Be sure to pass this along to your employees, or post a copy in your offices. 76(5P) AKFCF ABR AUM ARL BDP BOGO BOH BSC CER CFF CMS COB CREST CSTM DMA FA (or F/A) FSC FSTM FTF GAC HFFU IAYF KFCC LAC LOR NAC NCAC

– 1976(5P) KFC Franchise Agreement – Association of Kentucky Fried Chicken Franchisees – Achieving Breakthrough Results – Assistant Unit Manager – Above Restaurant Leader – Best Demonstrated Practices – Buy One Get One – Back-of-house – Balanced Scorecard – CHAMPS Excellence Review – Cleanliness Friendliness & Food – CHAMPS Management System – Chicken on the Bone – Consumer Reports on Eating Share Trends – Customer Service Team Member – Designated Marketing Area – Franchise Agreement – Food Safety Consultation – Food Service Team Member – Freezer to Fryer – Government Affairs Committee – Heavy Fast Food Users – International Association of Yum Franchisees (formerly known as the IAKFCF, International Association of KFC Franchisees) – Kentucky Fried Chicken Corporation – Local Advertising Council – Loss of Revenue – National Advertising Cooperative (merged with NFAC to become NCAC) – National Council and Advertising Cooperative

A K F C F Qu a r t e r l y

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NFAC

– National Franchisee Advisory Council (merged with NAC to become NCAC) NMS – National Marketing Subcommittee NPC – National Purchasing Cooperative (i.e., KFC NPC) NPS – Net Promoter Score OEC – Operations Excellence Committee PAC – Political Action Committee POP – Point of Purchase POS – Point of Sale QSR – Quick Serve Restaurant RAF – Refer a Friend REC – Restaurant Economics Committee RGM – Restaurant General Manager RMI – Restaurant Margin Improvement ROCC – Restaurant Operations Compliance Check ROI – Return on Investment ROMI – Return on Marketing Investment RRP – Restaurant Ready Process (aka The Model) RSCS – Restaurant Supply Chain Solutions (formerly UFPC) SBRA – Supplier Business Relationship Agreement TCB – Technology Capability Builder (the KFCC support team for Merit installations) TOL – Territory Operations Leader TPWY – Taking People With You TRP – Targeted Rating Point VOC – Voice of the Customer (formerly CBCC) WAR – Weekly Activities Report YUM – Yum! Brands YRI – Yum! Restaurants International

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Temperatures Cool Down,

Congress Heats Up By Dan Gans and Mary Donohue 14

A K F C F Qu a r t e r l y

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As the legislative calendar stands for the remainder of the year, the House has less than 30 working days in Washington. There is a wide array of issues important to the AKFCF that will see a lot of activity in the fall, such as tax extenders, overtime exemption, the RFS, minimum wage, and the ACA, among others. However, with so few legislative days left in the year, the House and the Senate are going to have to work together to ensure that deadlines are met to prevent another government shutdown and other delays.

Tax Extenders Chairman Ryan on the House Ways and Means Committee and Chairman Hatch on the Senate Finance Committee have expressed that they would like to get a jumpstart on tax extenders for this year. They both would like to provide taxpayers with a sense of how to plan before the end of the year and bring some certainty to the middle class. In 2014, the Senate waited until just over two weeks were left in the calendar year to pass a bill that extended certain retroactive tax provisions. House Republicans have been pressing for the permanent extension of many tax breaks for some time now. Though both chambers have expressed an interest in passing extenders in a timely manner, and the Senate Finance Committee began marking up the bill at the end of July, there are many issues on the docket for the fall that still may push extenders to late in the year.

Overtime Exemption Regulations In late June, the Department of Labor issued proposed revisions to the Fair Labor Standards Act’s (FLSA’s) overtime exemption regulations. The proposed revisions increase the minimum salary needed to qualify for the FLSA’s standard white collar exemptions. The rule would more than double the salary level under which all workers qualify for overtime pay whenever they work more than 40 hours in any given week. The threshold, now at $23,660, would rise to $50,440 – a number the administration believes would encompass many workers now classified as managers. The new regulations could be implemented as soon as 2016, and an extension of the comment period already has been filed to increase it to more than 60 days. Delaying its implementation would give franchisees more time to review expenses and evaluate how this proposal could impact business. Submitting comments for the record will be one of the best ways to ensure that the regulatory record reflects the true impact of any proposed changes and to help shape the final rule.

Renewable Fuel Standard The debate in Washington about the future of the federal Renewable Fuel Standard and the corn ethanol mandate also will continue this fall. In May, the EPA issued its proposed requirements for ethanol volumes to be blended into gasoline for 2014, 2015, and 2016. EPA’s proposed new ethanol requirements for 2015 and 2016 still are too high to provide relief from high food commodity prices. In mid-June, Sen. Bill Cassidy (R-LA) introduced a bill that is identical to a current bill in the House (H.R.703). The Senate bill, S. 1584, the Renewable Fuel Standard Repeal Act would repeal the EPA’s renewable fuel program. Hearings on this issue thus far have featured testimony from witnesses who spoke of the challenges the agency has had implementing the law. Additional hearings are anticipated later this fall.

Minimum Wage There has been a flurry of activity regarding minimum wage in the states. The New York State Legislature recently passed a bill to increase the state minimum wage to $15/hour for fast food workers at chain restaurants with 30 or more locations. The Wage Board’s recommendation hit with backlash from employers and small business owners stating that the increase in pay would mean losses in jobs and increased food prices for consumers. The Board recommended that wages in New York City should hit $15/hour by Dec. 31, 2018, and reach that level in the rest of the state by July 1, 2021. Though increasing the minimum wage seems to be gaining momentum in a few states, the federal minimum wage still remains $7.25/hour. Legislation has been introduced to increase the federal minimum to $12/hour, but is unlikely to gain traction. However, this issue is slated to become the centerpiece of the Democrats’ national wage inequality campaign and could come up in the 2016 presidential debates.

Affordable Health Care In June, the Supreme Court ruled that federal subsidies are legal under the Affordable Care Act meaning that low- and middle-income Americans in 34 states without health care exchanges can continue to receive the federal tax credits that lower their health insurance premiums. Prior to this ruling, Leader McCarthy indicated that House Republicans will be prepared to combat the ruling if the Supremes deemed the federal subsidies legal. We anticipate that plan to come to fruition later this fall. However, in late July, Senate Republican Leader Mitch McConnell championed a renewed push to bypass a filibuster and repeal the ACA with 51 votes in the Senate. The Fa ll 2 015

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GAC Repor t push is unlikely to succeed because procedural roadblocks in the Senate, and even if Congress were to pass a full repeal bill, President Obama is guaranteed to veto it. This issue will continue to be a flashpoint in the Republican presidential race.

Coalition Activity While Congress has been considering many policy issues, the business community has formed a few coalitions to lay the groundwork to solve issues such as joint employer and the 40-hour workweek in the second half of the year. This fall, the Coalition to Save Local Businesses will be focused on educating Democrats about its concerns to preserve the current joint employer standard. Additionally, the More Time is Full Time Coalition is focused mainly on getting the Senate to

take up legislation that already was passed by the House that would change the definition of fulltime work under the ACA back to 40 hours. Sens. Susan Collins (R-ME) and Joe Donnelly (D-IN) introduced the Senate version back in January, but it has stalled under threat of Presidential veto.

Fall Fly-In The Fall Fly-In was held Sept. 29 – Oct. 1, 2015. The fly-in was at an especially important juncture as Congress prepared to consider many critical pieces of legislation. We need your support during each of the fly-ins to reach as many members of the House and Senate as possible. If you are interested in joining the fly-in, please contact the Government Affairs Committee for more information.

AKFCF – P o l i t i ca l A c t i o n C o m m i t t e e (PAC) The AKFCF created a Political Action Committee (PAC) to make sure our voices are heard in Washington, D.C. The AKFCF Government Affairs Committee and the AKFCF PAC Board of Directors would like to thank the franchisees listed below for their contributions to the AKFCF PAC. Each quarter, we list the names of the franchisees who have supported the PAC at time of print as a token of our appreciation. This list is all the contributions, broken down by region. We encourage you to please join your fellow franchisees and support your AKFCF PAC. For information on how you can become involved, or if you don’t see your name and should, please contact Ray Aley, treasurer of AKFCF GAC/PAC at (802) 318-4705, or via e-mail at KFCRay@aol.com. Great Lakes Jeanine Bagshaw David Bell Kathy Bouwman Brian Denman Alessio DiFranco Deanna Freeland Anne Goodnight Steve Harden Ned Hoelzer Lesley Hottinger John Jefferis John & Joe Klobucar Craig Lee LaDonna Lewis Lynn Mayer Jim Mikula Diana Myers Marvin Payne Susan Stuver Shirley Vangeloff Scott Vorrath Terry Watkins Brian Wheeler Chad Wheeler Larry Wheeler Robert Widder Noreene Wojcik Rebecca Yocum

Keith Cole David E. Evans Joe Farley Randall Flock Frederick Gallant Nabil Gazaha Michael Houston Becky Lide-Fowler Martin Lobdell Wayne Lobdell Donald Lopes John Marsella Jr. Dale Moulton Dennis Naughton Steve Pinkerton Robert Rianna Alex Rosenblum Karen Silverstein Eugene A. Skowronski Larry Starkey Matthew E. Thurston Pinakin “Ken” Vachhani James Waters David R. White Northwest Frederick Baker Bob & Karen Carle Ralph Harman Brett Harris Joseph & Charlene Oleinik Steve Prendiville Donald Steinke Ken & Jane Wall

Northeast Wahid Akl Ray E. Aley III Tony Cameron Tom Ceconni

A K F C F Qu a r t e r l y

Fall 2015

Southeast Wiley Dean Felker Felker Robert Fulmer Michael Galloway Gregory Hamer Owen Harris Minton Hester Lloyd Hodges Jr. Mike Hubbard Larue Kohl Robbie Ludlum Walter Lyon Johnny Matlock Nancy Mook Angela Ogle Eric Overcash John Pankratz Vic Peeples Terry Rogers Fred Ruth Sr. Frank Rutledge Jr. Gurpreet “P2” Sandhu Leslie Sharp Bill & Bonny Shelton Marcus Shelton Jay & Kelly Shoffner Jon Simmons John Sims George Tinsley Betty Walker Jeff Wallace Bill West

Charles “Tim” West Richard West Steve West Daniel Yagoda Southern California Charles Buckner Tony Frazier Ranjit Gaddu Robert Prendiville Eddie Sheldrake Southwest Richard Cahill Rudy Garcia Don Jackson Rajeev Jain Franklyn Nye Eddie Rivera Brandon Robertson Doyle Sanders Thomas Slater Upper Midwest Dale Black Donald DeLaria Gene & Margaret Duenow Terry Moffit Kevin Schlutz Susan Schmidt Doug Smith Gary Tiedeken Jim Olson (Harman) Jeffrey Van Dyke

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Operations

Sustainability is the future

A K F C F Qu a r t e r l y

Fall 2015

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Now is the time to start ‘greening’ your facilities.

By Jeff Dover, CRFP

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ne of the hottest topics in the restaurant industry is sustainability. Most facility management professionals are challenged to reduce their carbon footprint and the amount of trash their restaurants produce. In today’s environment, companies are no longer forcing efforts toward this initiative, but are implementing them on their own merits and economics. In today’s (and tomorrow’s) society, sustainability plays an enormous role in how restaurants are built and run. Already, several major chains and independents have embraced this initiative by hiring individuals whose only job function is investigating sustainability programs, implementing them, and reporting on their progress. If a company is new to this area, the items to consider – in this order – are: • Benchmarking, which requires all utility and trash invoices • Long-term planning, e.g., to reduce energy and trash by 10 percent • Short-term actions (low-hanging fruit), which include any easily obtained, low-cost and quick payback items. Benchmarking is extremely important, as baselines need to be established for all energy, water, and trash used by each restaurant. This data provides a starting point against which you can measure all future actions. We’re proud to say that most companies represented in the Restaurant Facility Management Association (RFMA) have already begun sustainability programs. Sustainability areas include: • Waste and recycling, including composting • Energy management • Water conservation • Building materials.

Waste, Recycling and Composting

Almost 75 percent of landfill materials consist of recyclables and compostable materials. The following protocols can be implemented to reduce trash: •W ork with food product suppliers to ensure they use only recyclable packaging materials and that packaging in general is minimized •O nly use paper products from recycled materials • Use multi-purpose, rather than job-specific, cleaners • Have employees use washable mugs rather than throwaway paper or Styrofoam • Minimize excess use of trash bags by manually compacting and only emptying when full • Set up a rendering service for used fry oil. (With today’s prices, most companies will pay you for the oil!)

A K F C F Qu a r t e r l y

Fall 2015

Almost percent of landfill materials consist of recyclables and compostable materials. • Set up service to take grease trap “sludge” • Set up cardboard, glass, and plastic recycling programs with a local collector • Set up a food donation program (Check out Feeding America to find local food banks.) • Compost food waste • Use biodegradable take-out containers • Ensure anything delivered to the restaurants is reusable, recyclable, or compostable.

Energy Management

This area may be the easiest for the short-term actions. The following items can save gas and electricity with relatively minimal capital – with quick paybacks realized in less than one year: • Install programmable thermostats • Install LED lighting throughout the interior (cans, pendants, menu boards, BOH lights), exterior (parking lot poles, wall packs, signage), and exit lights • Replace all worn and/or damaged refrigeration gaskets • Install door sweeps on all exterior doors • Install strip curtains on the walk-in cooler and freezers • Ensure cooking equipment and exhaust fans are started and turned off in a timely manner • Use Energy Star-rated equipment • Ensure preventive maintenance is completed properly and in a timely way • Add shades and/or window tinting to reduce heat gain. w w w.a k fc f.c o m

Water Conservation • Install low-flow toilets and urinals in restrooms • Install low-flow aerators in all faucets • Install low-flow pre-rinse spray valves • Install strainers on sinks to keep food from going down the drain • Run only full racks through the dish machine • Water landscaping early in the morning or later in evening – and only when needed • Install a rain sensor device on irrigation systems • Consider using low-flow or drip system irrigation.

Building Materials • Use recyclable, or green, materials wherever possible • Use non-toxic paint • Use salvaged building materials if possible • Only specify low-maintenance plants for landscaping • Install water heaters as close as possible to points of use.

Sustainability is everyone’s responsibility. Waste, energy, water, and food sourcing are the main areas in which to investigate proper practices. It is extremely important to get buy-in at all levels to ensure the protocols are followed correctly. It may seem like an insurmountable task to put your arms around the entire sustainability initiative, but RFMA vendors can assist with any and all activities. They can survey your locations and design specific programs and processes that will successfully drive your sustainability efforts. I recommend contacting one of them to discuss your particular situation. I’m always looking for feedback. Feel free to contact me at jeff@rfmaonline.com or at (972) 805-0905, ext. 3.

About the author Jeff Dover’s facilities career started in 1985. He has been employed by several major chains (Ponderosa, Steak & Ale, Bennigan’s, TGI Friday’s, Fuddruckers and recently Five Guys Burgers and Fries). His technical education enabled him to take the lead as energy manager, facilities manager and director of facilities at the various brands. Reprinted with permission from Facilitator magazine. Visit www.rfmaonline.com for more information.

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Using Phantom Stock Plans to Reward and Retain Key Employees By David Zammit

A K F C F Qu a r t e r l y

Fall 2015

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usiness owners often find that one of their biggest challenges is attracting and retaining highly productive, “key” employees. The loss of a key person can have a devastating impact on any business, but this is particularly magnified in smaller, closely held businesses. Because most owners are reluctant to give up any equity ownership of their business, they often implement incentive-based retention programs to reward and retain their key employees. These programs can take many forms, but one form that has gained in popularity with small business owners is the phantom stock plan. Understand there is a fine line between retaining key employees and giving up shares in your business. This article will present an option that will hopefully satisfy both parts of the solution. As the name implies, key employees who are selected to participate in a phantom stock plan are credited with a specific number of hypothetical shares of the business. Instead of physically transferring actual shares to the employee, the business creates an accounting entry in which plan participants are credited with a specified number of “shares” whose value may rise or fall over time according to the formula selected to determine value. At the end of a specified time period, or upon predetermined events such as death or disability, the employee is entitled to receive the value based on the appreciation of the hypothetical shares with which they were credited. The basic steps for implementing such a program are as follows: 1. The business engages an attorney to draft the phantom stock plan agreement specifying the terms and conditions for the executive to receive this benefit. 2. The business complies with the “notice and consent” rules of IRC Sec. 101(j) with respect to employer owned employee assets. 3. The business purchases the assets on behalf of the key employee and pays the annual contributions. 4. The business can take loans or make withdrawals from the cash value to pay the promised benefit. 5. The benefit payments from the phantom stock plan are made to the executive. 6. Upon the executive’s death, the death proceeds are received by the business to recover its costs for the plan. Then, any amount still owing to the employee is paid to his/her family.

Advantages of Phantom Stock Plans

Phantom stock plans offer many benefits to both the employer, who implements the plan, and to those employees who are selected to participate: 1. Business owners can attract and retain the most productive talent without ever having to give up or dilute their ownership interest. That is an important consideration in closely held businesses, particularly where the intent is to keep the business inside the family unit. 2. Phantom stock plans work as true “Golden Handcuffs” because unlike outright grants or sales of stock, the employee typically will not receive any value until the plan is terminated or vesting provisions are satisfied. 24

A K F C F Qu a r t e r l y

Fall 2015

Understand there is a fine line between retaining key employees and giving up shares in your business. This article will present an option that will hopefully satisfy both parts of the solution. 3. Phantom stock plans are not subject to any of the nondiscrimination rules applicable to qualified retirement plans. Employers are free to pick-and-choose who may participate. 4. Phantom stock plans are relatively easy to implement. A typical plan requires only a board resolution and an agreement.

Disadvantages of Phantom Stock Plans

Phantom stock plans are not going to be a perfect fit in every case, because they do have some disadvantages when compared with other types of incentive compensation plans. For example: 1. The plan must provide for some formula for valuing the phantom shares credited to participants, which will require the employer to value the business when the plan is installed and updated on a periodic basis. 2. Since participants are given phantom shares and not actual equity, they do not have ownership interest in the business like an owner would. 3. Since appreciation of phantom stock units is tied to the company’s stock price as opposed to metrics specifically related to the participant’s performance, participants who make significant contributions may see little appreciation in their unit price. w w w.a k fc f.c o m

4. In the case of S Corporations, care must be taken to ensure that the phantom stock plan doesn’t violate the rules applicable to the “one class of stock” rule for S corporations. 5. Phantom stock plans are a liability that must be reflected on the sponsoring corporation’s balance sheet, and periodic adjustments must be made as the unit price fluctuates. 6. Employers that choose not to pre-fund their phantom stock plans must use cash flow or borrow to meet the obligations when due. 7. Payments made to participating employees should be tax deductible by the sponsoring employer, provided that they meet the “reasonable” and “ordinary and necessary” tests that all compensation plans must meet. 8. The fact that no cash outlays are required until payments are made can help businesses with temporary cash flow issues. 9. For employees who are selected to participate, no out-ofpocket cash outlays are required and there are no tax consequences until distributions are made.

Designing Phantom Stock Plans

Plans can be designed in a variety of ways. The two most common designs either award the appreciation of the stock value of the company (“stock appreciation plan”), or mirrors the actual underlying value of the stock (“mirror plan”). In a stock appreciation plan design, the benefit is the difference

between the value of the stock when the plan was implemented, and the value of the stock when the provisions of the agreement have been met. In a mirror plan, the benefit may be not just the appreciation, but also the underlying value of the stock itself. Businesses that choose to pre-fund their phantom stock plans do have a number of investment options (e.g., mutual funds, securities, annuities, etc.). However, general investments and annuities all generate taxable income each year. However, options that do not have a “tax drag” should be explored; therefore, creating a common funding vehicle for these types of plans. Choosing assets with minimal tax impact can be a highly efficient product for informally funding phantom stock plans because it offers tax-free growth of cash values, and offers a number of attractive cost recovery options. Most businesses will use either a) withdrawals or loans on the policy to make the required payments, or b) make the payments out of current cash flow or accumulated cash.

About the author

David Zammit is a financial strategist with Alliance Financial Group in Fort Myers, Fla. He has 25 years of financial and organizational management experience. Zammit can be reached at (229) 561-1440, or david.zammit.afg@gmail.com.

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2016 Convention Preview

2016 ANNUAL AKFCF Convention

Highlights By Kelly Rodenberg

A K F C F Qu a r t e r l y

Fall 2015

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he theme of the 2016 Annual AKFCF Convention is “Celebrating Our Heritage, Building Our Future,” and it will be held in Atlanta, Ga. Along with our valued partners, we have developed an exciting, engaging, and educational program for you to experience over four days. Since we left Las Vegas last February, the AKFCF and KFCC leadership teams have been hard at work improving upon the innovations started in 2015 and planning new initiatives to continue building momentum for our iconic Brand! Together, we have accepted the challenge to engage with KFCC and our other partners in the Brand Turnaround – a strategy aimed at creating a stronger Brand that recognizes our ever-adapting role in the changing landscape of the marketplace. Through our steadfast journey, we have discovered that the call for rethinking our work is even more critical than we first imagined. Not only must we respond to changes in remodels, packlines, advertising, and government regulations, we MUST be more in touch with the needs of our customers and communities. 2016 marks the beginning of the execution of the Turnaround plan we have been plotting over the last two years. Together with KFCC, we are working to build our Brand back to greatness. Our Convention programs and events will reflect not only on our past, but also perhaps more importantly, present a plan for our future. This is a time to re-energize our system as many large-scale events are occurring that will have an impact on our experience as KFC franchisees. Please use your time in Atlanta, both formally and informally, to engage in dialogue with your colleagues, vendors, and leadership about the role we have as restaurant owners in building that future. We know this Convention will provide you with many opportunities to build relationships between new and old franchisees, and to establish or renew professional networks and friendships. Together, we can strengthen internal and external partnerships to advance our heritage through learning in Atlanta and beyond. Our goal is to help you reach the highest levels of performance by connecting great ideas and great people. Come to Convention and use this time to consider our past, collaborate on the present, and commit to our future.

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Convention Schedule Tuesday, Feb. 2, 2016 8:30 a.m. – 12:30 p.m. 12:00 p.m. – 7:00 p.m. 2:00 p.m. – 5:15 p.m.

A Professional Employer Organization

Community Service Event Registration Workshops

Wednesday, Feb. 3, 2016 7:15 a.m. – 8:30 a.m. Breakfast Buffet 8:30 a.m. – 10:00 a.m. Opening General Session – A soulful and vibrant keynote address from AKFCF President Chris Fowler begins the Convention Celebration 10:00 a.m. – 10:20 a.m. Break 10:20 a.m. – 12:00 p.m. KFCC Presentations 12:00 p.m. – 1:00 p.m. Lunch 1:15 p.m. – 5:30 p.m. Workshops 5:30 p.m. – 8:30 p.m. Welcome Reception in the Exhibit Hall Thursday, Feb. 4, 2016 7:15 a.m. – 8:15 a.m. 8:30 a.m. – 12:00 p.m. 12:00 p.m. – 2:00 p.m. 2:15 p.m. – 3:15 p.m. 2:15 p.m. – 5:15 p.m. 5:15 p.m. – 7:15 p.m.

Buffet Breakfast General Session – The celebration of our Brand continues and you’ll see how our future can develop into a work of art. Lunch – Vendor Showcase Vendor Q&A with KFCC, AKFCF, and RSCS Leadership Workshops Reception – Vendor Showcase

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How would this type of situation appeal to you? You maintain supervision and control over your employees, and, at the same time, free yourself of any liability associated with having employees. This is what Mindful Businesses Group provides its clients —The Best of Both WorIds! Mindful manages the following: • ACA Compliant Blue Cross Blue Shield Health and Dental Insurance • Competitive Workers Compensation Costs • Risk Management and Safety Inspections • Federal and State Regulatory Compliance • Unemployment Insurance Claims • Employee Manuals Customized with Your Existing Policies • Web-based Payroll Processing • Payroll Tax Management • VISA Branded Pay Cards

Friday, Feb. 5, 2016 7:30 a.m. – 9:00 a.m. Continental Breakfast 8:15 a.m. – 10:15 a.m. Regional Association Meetings 10:30 a.m. – 12:00 p.m. AKFCF Town Hall – Franchisees Only ARL/RGM Workshop 12:30 p.m. – 2:30 p.m. AKFCF Board Meeting 2:45 p.m. – 4:00 p.m. NCAC Annual Meeting 6:30 p.m. – 10:30 p.m. Final Night Gala *Schedule subject to change. Visit www. akfcf.com for updates and to register online.

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2016 Convention Preview

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Event Highlights Tuesday, February 2

The AKFCF is proud to provide an opportunity for attendees to give back while in Atlanta by participating in a hands-on project that will benefit the Atlanta Community Food Bank (ACFB) and the people they serve in their community. The mission of the Atlanta Community Food Bank is to fight hunger by engaging, educating, and empowering their community. The Hunger in America 2014 Report showed that 1 in 7.5 people, or an estimated 755,400 people in metro Atlanta and North Georgia, turn to food pantries and meal service programs each year. This includes more than 164,000 children and more than 64,000 seniors. For the ACFB service area, statistics show that 80,600 people are served each week by programs supported through ACFB. Food Bank trucks pick up goods from food drives, grocery stores and manufacturers, and drop them off at the Product Rescue Center (PRC) every day. Constantly buzzing with activity, the PRC is the area of the Food Bank where all food drive and salvaged food items are brought to be inspected and packaged by volunteers for distribution to more than 600 nonprofit partner agencies. Our regional teams of volunteers will inspect, sort, and pack these goods. This area of operation is crucial as it ensures that retail, salvage, and food drive donations will be safe and wholesome for distribution to people in need. Points will be awarded to teams for every volunteer participating and for each pound of food sorted and packed. The winning team will be awarded with “The Super Spoon Award.” Can’t volunteer on Tuesday? AKFCF attendees still can make an impact by donating during the Convention. Drop off your check or cash donation at the designated location in the Exhibit Hall. For more information on how to get involved, please contact our Service Chair, Sheri Widder at kfcserves@gmail.com, or call (614) 873-6050.

Wednesday, February 3 Opening Session 8:30 a.m. – 10:00 a.m. Join us as we kick off the 2016 Convention with an industry address by AKFCF President, Chris Fowler. Arrive on time and get ready for a morning chock-full of exciting announcements, memorable awards, and uplifting presentations. 30

A K F C F Qu a r t e r l y

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www.marriott.com

AKFCF Serves! Community Service Event 8:30 a.m. – 12:30 p.m. Atlanta Community Food Bank Transportation Provided

The Convention will be held at the Marriott Marquis in downtown Atlanta.

KFCC Presentations 10:20 a.m. – Noon Jason Marker, KFCC president, and members of the KFCC Leadership Team will set the tone for the days ahead as they share their insights and vision surrounding the hottest topics and challenges facing the business today. Learn more about how our Brand positioning is being brought to life, and find out how we will continue to drive the success of KFC and deliver a guest experience that builds Brand loyalty and makes the Colonel proud. Welcome Reception – Vendor Showcase 5:30 p.m. – 8:30 p.m. Exhibit Hall AKFCF’s Welcome Reception is where franchisees, corporate partners, and vendors of the KFC family meet and network in a high-energy, yet relaxed, atmosphere. This highly anticipated first networking function of the AKFCF Convention is always a memorable event. Stroll through the aisles to discover this year’s showcase of cutting-edge products and services. Take full advantage of everything the trade show has to offer by prospecting for new vendors, catching up with current business partners, and viewing demonstrations of the latest creations. This must-attend cocktail party provides you with the opportunity to interact with colleagues and make new acquaintances while enjoying fine food, beverages, and entertainment. w w w.a k fc f.c o m

Thursday, February 4 General Session – The Colonel Lives On 8:30 a.m. – Noon In 1974, the future of the legendary Fox Theatre in Atlanta was uncertain. Financial troubles were threatening to make the historical venue a thing of the past. But the people of Atlanta rallied to “Save the Fox,” driving awareness for one of the city’s greatest landmarks. Together, this passionate community painted a bright future for the Fox Theatre. We invite the KFC Family to commemorate four decades of keeping our legend alive with a celebration that pays homage to the Colonel and all of our partners that helped turn our wonderful Brand around. It’s thanks to them that our legacy is kept alive, and now: the legend lives on with you. Keynote Speaker – Erik Wahl

ATTENTION RGMs & AUMs! Want to be your best self and earn your GED? The REACH HIGH Program has been expanded to help you! The KFC Foundation covers 100% of exam prep and exam costs, while personally guiding you through the process. Get started at KFCFoundation.org today.

Painter and keynote speaker Erik Wahl.

Our keynote speaker, Erik Wahl, will demonstrate through his live paintings and presentation how we all can create a strong future. As our business landscape continues to change, we need to stay ahead of the game by fostering a steady stream of disruptive strategies and unexpected solutions to revive stagnant markets or completely reinvent the competitive dynamics of our industry. Disruptive thinking requires a culture of innovative leadership, which can provide the framework and motivation to generate those strategies and to execute those solutions. In his dynamic, multi-media keynote experience specifically designed to challenge audiences to achieve superior levels of performance, Erik will inspire us to let go of our traditional thought patterns and better understand how to create disruptive strategies of innovation. Vendor Showcase 5:15 p.m. – 7:15 p.m. The Vendor Showcase brings innovative ideas and solutions to the forefront by giving franchisees in the KFC restaurant industry a chance to discover the best new products and services available. From new ways to boost your social media presence, to food delivery made easy, to interactive recruitment and digital vendor ordering, these companies aim to make everything in your restaurant world as efficient and simple as possible.

Only employees at restaurants participating in the Cole Slaw Donation Program are eligible. ©2015 Kentucky Fried Chicken Foundation, Inc. The Kentucky Fried Chicken Foundation is a non-profit, 501(c)3 organization.

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Friday, February 5 Regional Association Meetings 8:15 a.m. – 10:15 a.m. Take advantage of this time to discuss and conduct important business matters with your Region. Members of the AKFCF and KFCC Leadership will be making rounds to answer any questions that arise. AKFCF Town Hall – Franchisees Only 10:30 a.m. – Noon The AKFCF Town Hall provides an opportunity to “share your voice and vision” with fellow franchisees and to hear special reports given by the Executive Committee and other leaders, as well as the GAC and RSCS.

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Tuesday, February 2 • The American Showman Asset Journey You will have two chances to attend this workshop. Get a live look into the KFC ASAP journey to date – check out our recently completed and under construction Incentive Scope Remodels, as well as real-time updates on build schedules, restaurant design, finance options, and shared learnings from completed pilot markets. You’ll also have the chance to ask KFCC, LendLease, Wells Fargo, and RSCS partners your questions.

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• Data-Driven Solutions Through the RMS Pricing Program Learn more about Revenue Management Solutions (RMS), the services they provide, and how their analytical approach to pricing decisions can generate more profit for your restaurants. Find out how RMS considers price sensitivity from the restaurant level all the way down to the menu item level, and understand how they use your actual historical data to recommend pricing that will maximize Check, minimize Trans erosion, and flow more profit to your bottom line.

Wednesday and Thursday Workshops • Delivering a Craveable Taste Experience – A Foundation for Success Delivering a Best on Block experience for every guest begins with building a solid foundation made up of clear and concise standards, well-trained team members,

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This year, bring your AKFCF Annual Convention experience to a close as we celebrate our final night with a rocking gala featuring the legendary Lynyrd Skynyrd! Enjoy the last affair of Convention with your KFC family and friends and raise your glass to toast another successful year. So be sure to wear your comfortable dancing shoes, come hungry, and make some lasting memories during your final night in Atlanta! To assist us with controlling the food and beverage portion of Final Night, we will be implementing a new “No Show” policy this year. For any guest who registers to attend the Final Night Gala and does not show for dinner, a $150 fee will be charged to their form of payment. We understand that plans change at the last minute and emergencies arise, so you will have time to cancel your registration up to 72 hours prior to the event and not be charged the “No Show” fee.

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and a compliance program that empowers. Learn about our new and more intuitive Standards Library, how to ensure every team member is trained to execute the Standards at a high level, and how to leverage our new Restaurant Operations Compliance Check (ROCC) as we strive for continuous improvement. Let’s make the Colonel proud by focusing on the basics and the importance of taste, and building a foundation for success that comes to life for team members through ARLs. • Delivering Best on Block Operations – Breakthrough Results Achieving daily operations excellence is critical to driving for breakthrough results in our restaurants. In this workshop, we’ll show you how to gain indepth operational insight by leveraging the robust tools and metrics available, including balanced scorecard, Your KFC Voice, VOC, ROCC, our Social Media coop, and much more. You’ll also learn how to utilize clear and concise programs, procedures and measurement tools to drive continuous performance in your restaurants, and deliver a Best on Block experience to every guest. • People Excellence Help your team attract, develop, and engage top talent to deliver world-class operations and our branded service promise. This interactive session will build your know-how on tools that can transform the employee experience: Hiring Zone, Team Member Selection, AMP, Your KFC Voice, and our fun and impactful culture resources. • Building Better Restaurants Through Technology Technology is a critical component to running great restaurants and meeting the needs of our consumers. Build your know-how on KFC’s technology strategy and learn how we will use innovative products and technologies to drive the business forward.

• The American Showman Asset Journey – Additional Opportunity You will have two chances to attend this workshop. Get a live look into the KFC ASAP journey to date – check out our recently completed and under construction Incentive Scope Remodels, as well as real-time updates on build schedules, restaurant design, finance options, and shared learnings from completed pilot markets. You’ll also have the chance to ask KFCC, LendLease, Wells Fargo, and RSCS partners your questions.

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2016 Convention Preview

HH H H Friday NIght gala

If Lynyrd Skynyrd has taught us anything, it’s that our appetite for great bands playing muchloved material is still voracious, regardless of the personnel involved. Don’t miss this special appearance as they bring the 2016 AKFCF Convention to a rousing finale! • Legal Update The legal landscape for all KFC franchisees is everchanging. As the Brand Turnaround continues to roll-out, franchisees are having to deal with asset upgrade requirements (voluntary and otherwise), the prospect of real consequences for under-performance, Merit, and a whole host of other issues. Join AKFCF General Counsel Ron Gardner for his “don’t miss” annual legal update, discussing in clear and easy-to-understand terms where we are, and where we appear to be going.

Friday, February 5 • ARL/RGM Success Routines Join us for an ARL/RGM specific session where we will discuss KFC’s must haves to ensure you are an impactful coach who drives great operations and leads your team to performance excellence. We’ll deep dive into the various success routines and processes in place, and show you how to schedule your time and activities to ensure you’re utilizing these routines to properly and effectively open, run, and close your restaurant(s). During this session, we’ll also cover time management, bench planning, scheduling, cleanliness, accountability, and calibration of standards to ensure we’re all committed to making KFC a stronger operating Brand.

Convention and Event Registration To register for the Convention and events, go to www. akfcf.com. Confirmations will be e-mailed to you. Please see the online registration form for all price details. Early Bird Rate – $150, Register by Nov. 16, 2015 Regular Rate – $250, Register by Jan. 1, 2016 On-Site Rate – $350

A K F C F Qu a r t e r l y

Fall 2015

On-Site Check-In On Tuesday, February 2 from Noon – 7:00 p.m., attendees may check in by Region at the AKFCF Registration Desk to pick up name badges, tickets, and program guides. Hotel Information Atlanta Marriott Marquis Hotel 265 Peachtree Center Ave. NE Atlanta, GA 30303 (404) 521-0000 http://www.marriott.com/hotels/travel/atlmq-atlantamarriott-marquis/ Hotel Reservations Room Rate: $192/night Online: https://resweb.passkey.com/go/akfcfjan2016 Phone: Call the hotel at (866) 469-5475 and reference the AKFCF Convention to receive our group rate. Deposit of one night’s room and tax required at the time of booking. Changes and cancellations must be made within 72 hours of the scheduled arrival day to avoid one night’s penalty fee. The deadline for hotel reservations at the group rate is Dec. 29, 2015. Questions If you have questions or require additional conference information, please contact Debbie Newton at (866) 868-4750, or via e-mail at debnewton@akfcf.com. Stay informed, engage with your peers, and provide realtime feedback at next year’s Annual Convention in Atlanta. Follow the activity by searching the #AKFCF16 hashtag and add it to all your ideas, photos, and posts about AKFCF Annual Convention. The meeting app with detailed information about Convention will be available in mid-January. w w w.a k fc f.c o m

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KFC Foundation

KFC Foundation REACHes Out

By Krista Snider, Foundation Managing Director

n July, the Kentucky Fried Chicken Foundation announced the recipients of its 2015 REACH Educational Grant, a scholarship program for hourly team members at participating KFC® restaurants. Through REACH, 683 KFC team members and shift supervisors in 45 states have received a total of more than $1.4 million in college tuition assistance for the 2015-16 academic year (see infographic on next page for more statistics). The REACH Educational Grant Program® helps hourly restaurant team members pursue their educational dreams at four-year and two-year colleges, including trade/vocational 36

A K F C F Qu a r t e r l y

Fall 2015

and graduate schools. The winners are selected via a competitive application process in February/March of each year and can re-apply each year as long as employment criteria are met. The program also assists franchisees in two important business goals: recruiting and retaining high-caliber employees. When surveyed, 89 percent of recipients said the REACH Program is a motivation to remain employed at a KFC restaurant. Among the 2015 grant winners, 39 percent have received the award previously – further proof the program is serving to retain quality employees. w w w.a k fc f.c o m

2015 sees even more REACH Grant winners and expansions to existing programs

As part of this survey, we collected a number of comments from these team member-students. Below is one of my favorite anonymously submitted quotes: “[The REACH Grant] took a lot of stress off, knowing that I have

help from such a great company that I can also call the place I work. …It is nice to know that my loyalty for staying with KFC throughout college is paying off. I couldn’t ask to work for a better company!” The new REACH Rising Stars award, introduced in 2015, was designed to further encourage staying employed at a KFC restaurant. The larger grant, $2,500, is for team members who have previously received a REACH Grant and have a minimum GPA of 3.0.

REACH HIGH expanded to managers

In addition to the REACH Grant Program that helps team members attend college, the Foundation also offers the REACH HIGH® – High School Equivalency Program. Hundreds of TMs already have taken advantage of this program. However, recently, REACH HIGH was expanded to include Restaurant General Managers and Assistant Managers – in addition to hourly team members and shift supervisors. Now, all restaurant-level employees at participating restaurants can take advantage of this opportunity to be their best selves through the year-round REACH HIGH program! Fa ll 2 015

AKF CF Q u a r t e r ly

KFC Foundation

How to participate

These important education assistance programs are reserved for employees at restaurants participating in the Cole Slaw Donation Program, which supports the Foundation, an independent 501c3 non-profit organization. Franchisees may opt-out of the program, which adds $1.23 donation to each case of cole slaw, during the opt-out window each November. With the average per employee/per month investment at around just $1, however, it’s hard to imagine a more efficient investment that would provide the same valuable recruitment and retention tools and employee benefits that the Foundation is able to provide through your support. What’s more, your contributions via the Cole Slaw Donation Program are completely tax deductible. For more information on the REACH Educational Grant Program or REACH HIGH – High School Equivalency Program, visit KFCFoundation.org or the Foundation’s site area on TeamKFC.

REACH Educational Grant Recipients 2015 REACH Grant recipient Marquelius Greene “KFC is a great establishment that genuinely cares for their employees and customers.” Restaurant C002135 Franchisee: James M. Treadwell

2015 REACH Rising Stars recipient Rachel Zimprich “With the help of my first grant [in 2014] from the KFC Foundation, it made me feel that I was important to someone and that they believed in me. I feel so lucky that I work for KFC because of this amazing program.” Restaurant K545005 Franchisee: David Kerr

2015 REACH Rising Stars recipient Yen Hoang, three-time grant winner! “I am thankful to KFC for hiring me, and I am also grateful for the opportunity to have scholarships like this that encourage education and work.” Restaurant E720157 Franchisee: Harmans Management Corp.

A Legacy of Giving Colonel Sanders was passionate about helping people be their best selves through education. It started with a hitchhiker who happened to be a college student. The Colonel gave him a ride and a full scholarship. That act of kindness inspired the KFC Foundation, which has since provided $14 million in scholarships to 2,600 students.

A K F C F Qu a r t e r l y

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REACH Winners Name of Employee Franchisee

Name of Employee Franchisee

Leutrim Abazi ......................... Pete Wasilevich Aba Abdurahim....................... KFCC Restaurant Kristen Abrantes..................... Larry Starkey Naghede Abu ......................... Tony Frazier Hamza Abubakar ................... KFCC Restaurant Michelle Acevedo .................. Edward M. Thomas Peter Acevedo ....................... Edward M. Thomas Eran Acord.............................. Tabbassum Mumtaz Stephanny Aguilar .................. Edward M. Thomas Emily Albaugh ........................ KFCC Restaurant Carlos Alexander ................... Larry L. Wheeler Tori Alexander ........................ Jim Olson Henri Alexandre Jr ................. James G. Cocolin Sehwa Ali................................ Balbir Hans Jamal Aljabal .......................... KFCC Restaurant Jessica Allen .......................... Jack Sims Whitney Allen ......................... Jim Olson Jordan Al-Quran .................... James McKenzie Richard Altamirano ................ Mike Baker Nicholas Ambriz ..................... Tabbassum Mumtaz Ghadir Amin ........................... KFCC Restaurant

Cortney Anderon .................... Jim Olson Michael Anderson .................. Jim Olson Razhane Andrews .................. Tabbassum Mumtaz Samuel Andrews .................... Thomas A. Broome Jessica Angel ......................... Jeanine Bagshaw Jazmine Arambula ................. Centerplate, Inc. Sandra Arellano ..................... Mike Baker Jilda Arias Anaya.................... Mike Baker Alicia Arnold ........................... Larry Staarkey Meskat Asif............................. Ronald Johnson Greidy Auden ......................... David E. & Marry Ann Evans Jacqueline Augustat .............. Steve Rudoni Rachel Auth ........................... Kurt Aarsand Ethan Autio ............................ Scott Watland Reyna Ayala Alvarez .............. Jim Olson Shanda Badette...................... KFCC Restaurant Brandon Baker........................ Kurt Aarsand Latora Banks .......................... Wallace W. Fowler Sr. Jorge Barbosa ....................... Jim Olson Mary Barker............................ Stephen McGue Roberto Barrios...................... Dan Yagoda

Employee Discount $ Materials are Coming Soon!

Look for Employee Discount packets arriving in your stores in early November. This program is a great perk that allows everyone in the KFC Family to save on cell phone service, slip-resistant shoes, movie tickets and so much more! d up yet? Regi ste signe t â&#x20AC;&#x2122; r en Website:

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AKF CF Q u a r t e r ly

REACH Winners KFC Foundation

Name of Employee Franchisee

Caitlyn Bauer.......................... Jeanine Bagshaw Tori Bax .................................. Allan M. Scott Alondra Becerra ..................... Robert W. Prendiville Citlaly Becerra ....................... Robert W. Prendiville Rachel Beesley ...................... Todd Stewart Nijah Bellamy ......................... Samuel L. Sibert Karyssa Belton ....................... Jim Olson Jazmin Benavides .................. Calvin White Dominique Beneker ............... Chad A. Wheeler Marisol Benito-Tolentino ........ Syed & Aesha Jafrey Michael Benwire .................... Balbir Hans Nathan Berge ......................... Jim Olson Austin Bernd .......................... Robert W. Prendiville Janay Berry............................. Sanjiv Kanwar Katelin Bertling........................ Jerry Weaver Candice Bess ......................... Thomas A. Broome Olivia Bickel ........................... Craig T. Lee Courtney Black ...................... KFCC Restaurant Brittney Blakeney.................... Johnny W. Outlaw Kylie Blenkhorn....................... Estate of William L. Bell Kaitlyn Boddie ........................ James M. Treadwell Benjamin Bombela.................. James M. Treadwell Rhett Bomher ......................... Robert E. Clawson Danika Bond .......................... Jim Olson Samantha Bonfonti ................ John Marsella Allyson Boone ........................ Jeanine Bagshaw Bridgett Booth........................ Joseph Booth Dominique Bordley ................ J. Christopher Baxley Jr. Natalie Boston........................ Estate of William F. Alford Corey Boykin ......................... Michael Kulp Ryan Boucher ........................ Matthew Thurston Robert Bradford ..................... Larry L. Wheeler Garret Bradt ........................... Robert E. Clawson Denise Bravo ......................... Calvin White Christopher Brinley ................ Jim Olson Ashley Brown ......................... Robert E. Clawson Spencer Brown ...................... Jim Olson Brittany Bruce......................... Tim Fitzpatrick Kenneth Budzinski ................. J. Michael Barrett Kristen Bullock ....................... James D. Houck Jamison Bunge ...................... James M. Treadwell Mikayla Burke ........................ David E. & Mary Ann Evans David Burley............................ Jim Liguori Brianna Burt ........................... Todd Stewart Matthew Bussard.................... Estate of Shirley Carr Jennalee Butch....................... Jim Liguori Amber Cain ............................ Noah J. Hommerding Dyllan Calwell ........................ Jim Olson Luis Camargo Paramo ........... Iris Cohn Alexandra Camarillo-Lugo...... Mike Baker Sean Campeau,...................... Larry Starkey Shelby Canady ....................... Nicholas Potter Nancy Carmona ..................... Charles Buckner Savannah Carr ....................... Don True Virshon Carrington ................. Michael Kulp Dejon Carter ........................... James D. Houck Hope Caruthers...................... Samuel L. Sibert

Alexander Case ...................... Tom Slater Stephanie Case ..................... Estate of William L. Bell Stephanie Castillo .................. Jim Olson Crystal Caudill ........................ Ladonna J. Lewis Anthony Caviness .................. Larue Kohl Mailee Cha ............................. Charles Buckner Deshel Cherry ........................ Michael Kulp Michael Cherry ....................... Hiren N. Patel Farheen Chowdhury............... Lokman Chowdhury Elizabeth Christian ................. James G. Cocolin Phillip Christner ...................... William Wood Timothy Ciolek ....................... Pete Wasilevich Julie Clements ....................... Matthew Thurston Quinton Coffield...................... Jim Liguori Mckenzie Collins .................... Tony Frazier Sire Conde ............................. Manish Patel Shelby Conn .......................... Jim Olson Raeleigh Connick ................... C. Charles Nailen Jr. Eveli Constanza ..................... Todd Stewart Tristan Conte .......................... Robert E. Clawson Kyale Cooks ........................... Pete Wasilevich Sheridan Copley .................... Teresa L. Kelly Cora Cornett .......................... Jerry Weaver Marissa Cortes ....................... Edward M. Thomas Anahi Cortez .......................... Jim Olson Melisa Cortez ......................... Estate of Ted A. Theodoroff Annabella Covington .............. Estate of Shirley Carr Ariana Cowdery ..................... Jim Liguori Ashley Crawford..................... KFCC Restaurant Kenjarvis Cross....................... Wallace W. Fowler Sr. Denise Crowder ..................... Robert Noyes III Melina Cruz............................. Jim Olson Enrique Cuevas ...................... Tony Frazier Hannah Culbreath .................. Michael Kulp Erik Curiel ............................... Dan Yagoda Isaac Curry ............................. Larry L. Wheeler Jericho Curry ......................... KFCC Restaurant Andrea Damon ....................... David E. & Mary Ann Evans Chione Daniel ......................... James M. Treadwell Samuel Daniel......................... Jim Olson Ezekiel Daniels ....................... Michael Kulp Shanelle Davila ...................... Hiren N. Patel Kevin Davis ............................ Thomas A. Broome Jessica Davis.......................... Larry L. Wheeler Moises De Jesus .................... HMS Host Corp. Karen De Los Angeles ........... Jose Israel Diaz Allysen Dean........................... Estate of William L. Bell Kayla Deatley ......................... Jeanine Bagshaw Alexis Defilippo ...................... Jim Liguori Kassandra Dellarma ............... Matthew Thurston Kaitlynn Dewitt-Kitchen.......... Thomas Neil Cocolin Manneet Dhaliwal .................. Jim Olson Kuljinder Dhami ...................... Jim Olson Kuljot Dhami .......................... Jim Olson Angela Diaz ............................ Manuel Galhandro Brandon Dill ........................... Ozie Garrett, Garnet Barnes Shelby Dixon .......................... Frank Mitchell

A K F C F Qu a r t e r l y

Fall 2015

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REACH Winners

Name of Employee Franchisee

Taylor Dockery ....................... HMS Host Corp. Adam Done ............................ Shirley Vangeloff Shayna Donley ....................... Michael Davis Myrriame Dosso...................... Michael Kulp Brooklyn Dotts ....................... Clint Smith Joshua Dow ........................... Estate of Jerry N. Haynie Victoria Dowdy ....................... Michael Kulp Jessica Drake ........................ Jim Olson Chaz Draper ........................... Tanweer Ahmed Sarah Draper .......................... Tom Slater Jacob Draper.......................... Tanweer Ahmed Macey Draper......................... Jim Olson Melissa Duca.......................... Kenneth R. Rianna Cassidy Duffin ........................ Pete Wasilevich Taylor Duncan ........................ Sam Fiori Tiffany Dykes ......................... Michael Kulp Devante Edwards.................... James M. Treadwell Chioma Eke ........................... Hiren N. Patel Elizabeth Ellwanger ................ Noah J. Hommerding Celeste Enfield ....................... Jim Olson Joshua Erickson .................... Jim Olson John Ervin Iii .......................... Manish Patel Brittany Escudero .................. Curtis Ransom Gabriel Esquibel ..................... Tony Frazier

Casey Essick ......................... Harry Latshaw Jordan Etl ............................... Jim Olson Troy Farley.............................. Darlene Pfeiffer Firmino Fatuda Jr. .................. Donald Lopes Tom Feathers.......................... Debra Ashmore Joshua Fernandez ................. Jim Olson Andrea Fernandez-Medina .... Charles Buckner Ricardo Figueroa ................... Tony Frazier Matt Firari ............................... Jeffrey Firari Laura Fisher ........................... Jim Olson Kortney Fisher......................... Thomas L. Lowry Janelle Fletcher ...................... KFCC Restaurant Andrew Fowler ....................... D. Naughton & M. Dahlene D Kaylee Frame ......................... Michael Kulp Craig Francis Jr ...................... Michael Kulp Haley Francolino .................... Jim Olson Taylor Freeman ...................... Jeanine Bagshaw Courtney Fritsinger ................ Craig Fritsinger Lynn Fugere-Tresp ................. Joan Bowling Alexandra Gabriana ............... Tanweer Ahmed Jessica Gallardo .................... Gilbert Rozier Adrian Garcia ......................... Jim Olson Adrianna Garcia ..................... Jim Olson Arranda Gardner..................... Pete Wasilevich

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AKF CF Q u a r t e r ly

REACH Winners KFC Foundation

Name of Employee Franchisee

Khadijah Garnett..................... Manish Patel Jayeisha Gettings................... Anton Lambos Sean Gibson .......................... Terry Robinson Carly Giesseman .................... Tim Fitzpatrick Lourdes Gil ............................. Jim Olson Tianna Gleason ...................... Pete Wasilevich Aleksandra Glod .................... Michael Kulp Zoe Glore ............................... Jeanine Bagshaw Kailey Godwin ........................ Thomas A. Broome Alexander Goembel ............... J. Michael Barrett Daniel Gomez ........................ Hiren N. Patel Martin Gomez Jr .................... Curtis Ransom Stephanie Gomez-Limon........ Jim Olson Daniel Gonzalez ..................... Tabbassum Mumtaz Roberto Gonzalez .................. Noah J. Hommerding Amy Gonzalez......................... Manuel Galhandro Tanesia Goodrich ................... Tom Slater Tabreasia Gowdy ................... Richard West Katheryn Gowin ..................... Jim Olson Kyle Grabendike .................... Brandon Robertson Joshua Graham ..................... Thomas A. Broome Briana Graham........................ Thomas A. Broome Tatyana Graham-Robinson .... Thomas A. Broome Dryden Granger...................... Mike Baker Marquelius Greene ................. James M. Treadwell Corey Gresham ...................... Syed Raheel Ashlyn Griffie .......................... KFCC Restaurant Hayden Grindstaff .................. C.M. Fulenwider Jazlynn Gross ........................ Michael Davis Komlan Guedze...................... Michael Kulp Juliana Guerrero .................... Jim Olson Ruth Guerrero ........................ Jim Olson Shafoya Gulley........................ Jack N. Marshall Antonio Guzman .................... Larry Starkey Robert Haase ......................... Robert E. Clawson Shelby Haefele ....................... Ken Wall Steele Haen ........................... Mike Kohlman Dustin Hageman..................... Michael Kulp Timothy Hale .......................... John M. Sims Leslie Hall ............................... Michael Kulp Abdulaziz Hamid..................... KFCC Restaurant Matthew Hammerstein........... George Lambos Dominica Hansen ................... Jim Olson Zaria Harrison ........................ Michael Kulp Darren Hart ............................ Richard West Brandy Hauser ....................... Susan E. Stuver Brandon Haynes..................... Michael Kulp Janet Hede ............................ Jim Olson Kathleen Heinlein ................... Jim Olson Allen Henley............................ Wallace W. Fowler Sr. Brenda Henriquez .................. Tony Frazier Isai Hernandez ....................... Marcus Shelton Juan Hernandez ..................... Tony Frazier Luz Hernandez ....................... Tony Frazier Ivan Hernandez....................... Edward M. Thomas Yuliana Hernandez-Mora ....... Jim Olson

Diana Herrera ......................... KFCC Restaurant Vanessa Herrera ..................... Robert W. Prendiville Bryan Herrera Lopez .............. Edward M. Thomas Gerardo Herrera-Cortes ......... Manish Patel Aaron Herrick ......................... Jerry Weaver Shelby Higbee ....................... Jim Olson Tori Hill.................................... Jim Liguori Kenya Hilliard.......................... Jim Olson Yen Hoang.............................. Jim Olson Sarah Hockenson .................. Jerry Weaver Jensine Holden ...................... Debra Ashmore Brandy Holley ........................ C.M. Fulenwider Benjamin Holmes ................... C. Douglas Knipp Damarrius Holmes ................. Michael Kulp Ernest Honyedzi...................... David E. & Marry Ann Evans Richard Howard ..................... Jim Olson Matthew Hrovat ..................... Stephen Panagouleas Alyssa Hubbard...................... KFCC Restaurant Elizabeth Huezo ..................... Jim Olson Jasmine Hutchings ................ KFCC Restaurant Jessica Hutchings................... KFCC Restaurant Colten Hying .......................... Jerry Weaver Julie Ibanez ............................ Noah J. Hommerding Naima Ilmi .............................. KFCC Restaurant Antonio Ingram ...................... Diane Overcash Emily Ingram .......................... Bryan Robinson Karla Iniguez .......................... Tony Frazier Zhanteâ&#x20AC;&#x2122; Ivy-Jones .................. Pete Wasilevich Amber Jackson ...................... Michael Kulp Amoney Jackson ................... Estate of Joseph Desmond Chassidy Jackson .................. John Hannon Jaida Jacobs .......................... Jim Olson Zhanea James ....................... Robert E. Clawson Michael Jensen ...................... Scott Watland Zulema Jimenez ..................... KFCC Restaurant Nathanial Jingst ..................... John M. Sims Felicia Johnson ...................... Jim Olson Jacquii Johnson ..................... Richard West Kadisha Johnson ................... Manish Patel Breanna Johnson.................... Dick West Matthew Johnston.................. James M. Treadwell Alyson Jones ......................... Larry L. Wheeler Amarya Jones ........................ Frank Mitchell Hayley Jones ......................... Steven R. Saunders Imani Jones ............................ James M. Treadwell Kiana Jones ........................... Manish Patel Malik Jones ............................ Samuel L. Sibert Makayla Juergens................... Larry L. Wheeler Shanoya Jugar ....................... Jim Olson Bernabe Kadjo ....................... Michael Kulp Jacob Karn ............................ Frederick Bauer Heather Keene ....................... Rodney Walker/Randolph Stuck Grace Kelly ............................ Greg Flynn Kennedy Kelly ........................ Brian McCarty Andrew Kennedy ................... Chad A. Wheeler Kellsie Kennedy ..................... Michael Davis

A K F C F Qu a r t e r l y

Fall 2015

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REACH Winners

Name of Employee Franchisee

Ehateshamul Khan ................. Hiren N. Patel Caitlin Kidd ............................ Jerry Weaver Serenity Kilpatrick .................. Jim Olson Young-Eun Kim ...................... Jim Olson Carrie King ............................. Allan M. Scott Brittny King............................. Estate of William L. Bell Cody King............................... Estate of William L. Bell Elaine Kingsbury .................... Estate of William F. Alford Khadijah Kinlaw ..................... Manish Patel RyanThomas Kitchen ............. Neil Cocolin Joshua Klaskala ..................... James M. Treadwell Helena Knox .......................... Estate of William L. Bell Andrew Koenig....................... Jim Liguori Emilee Kollmorgen.................. William Sims Thomas Krug ......................... Manish Patel Denise Labrecque................... Matthew Thurston Kelly Lagrange........................ Frederick Thurston Bradly Lams............................ KFCC Restaurant Leonard Lancaster ................. Thomas A. Broome Amanda Lang ......................... Pete Wasilevich Lacey Layman ........................ Jon L. Byrd Jr. Ariana Leeseberg.................... Estate of William L. Bell Donnetta Lester ..................... Joseph Campbell Jonathon Lewellen.................. George Lambos

Legacy Lewis ......................... Anton Lambos Tykeela Lewis ......................... Wallace W. Fowler Sr. Hillary Line.............................. Jerry Weaver Monna Lisa ............................ Lokman Chowdhury David Lisle ............................. Jerry Weaver Kamri Lomax .......................... Manish Patel Mackenzie Long ..................... Jim Olson Kodi Lowe .............................. David Kerr Taryn Lowe ............................. Jeanine Bagshaw Carmen Lynch......................... Kurt Aarsand Samuel Lynn .......................... Michael Kulp Angelica Machado ................. Jim Olson Grace Mackey ........................ Sanjiv Chand Gustavo Magana Jr. ............... Edward M. Thomas Jaime Maldonado .................. Jim Olson Kamran Malik ......................... Centerplate, Inc. Zackery Malone ..................... Matthew Thurston Breyon Manigault.................... Seenu Kasturi Russell Marks ........................ Inman Hodges Leah Marlowe ........................ Terry Robinson Kira Marsh .............................. Michael Kulp Cassidy Marsh........................ Frederick P. Gallant Haley Marston ........................ Steven R. Saunders Liliana Marte .......................... KFCC Restaurant

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AKF CF Q u a r t e r ly

REACH Winners KFC Foundation

Name of Employee Franchisee Carmen Martin ....................... Michael Kulp Tristan Martin ......................... Jerry Weaver Jessica Martin......................... Estate of Shirley Carr Genaro Martinez .................... Tony Frazier Yahaira Martinez .................... Hal McCoy Megan Matney ....................... Jim Olson Steven Matos ......................... Richard Bower Aleyah Maxie ......................... KFCC Restaurant Chudi Mbonu ......................... Manish Patel Tabitha Mccauley ................... Jon L. Byrd Jr. Janice McCormack................. Joe Oleinik Kerry McCormick ................... Jim Olson Ashley Mcgee ........................ Shirley Vangeloff Natalie Mclane ....................... Pete Wasilevich Sydney Mclellan...................... Tony Frazier Dion McLennan ...................... Jim Olson Jaâ&#x20AC;&#x2122;Miah Mcneill ...................... Steve Paris & Estate of Ralph Potter Aslam Meah ........................... Baktier Khan Destiny Medeiros ................... Jim Olson Stephanie Medina Barrera ..... Mike Baker Cassidy Mendoza .................. Manuel Galhandro Melissa Mercado ................... Jim Olson Jenipher Milan ....................... KFCC Restaurant Alex Millan-Jackson ............... Michael Kulp Diclecis Millner ....................... Bill Shelton Andrea Milsap ........................ Diane Overcash Cierra Minor ........................... Sean Tuohy Brandon Missbach ................. Charles Clark Jr. Rachel Mofield ....................... William Sims Heber Molina.......................... Jim Olson Michael Monahan .................. David E. & Mary Ann Evans Devan Monette ...................... David R. White Rachel Montgomery............... KFCC Restaurant Amy Mooney .......................... Larry Starkey Icesa Moore ........................... Stephen McGue Ryan Morales ......................... Estate of Shirley Carr Diana Moreno......................... Mike Baker Samantha Morley.................... Peter Lyders-Petersen Chantelle Morton ................... Robert Bedard Danae Moss ........................... Nancy Mook Adams Moua .......................... Todd Stewart Lue Moua ............................... Todd Stewart Tshau Moua............................ Jim Olson Jaime Mounts ........................ Bill Shelton Frida Mugica .......................... Jim Olson Annalisa Muiruri ..................... Jim Olson Emily Mullens ......................... Mohamad A. Khorshad Zachary Murphy...................... Jim Liguori Johnita Murray ....................... Manish Patel Savannah Myers .................... Robert E. Clawson Jessa Nario ............................ Jim Olson Laura Nash ............................. Frank Mitchell Vashaunda Nash .................... Jerry Weaver Diana Naumenko ................... Jim Olson Christian Nava ....................... Centerplate, Inc.

A K F C F Qu a r t e r l y

Fall 2015

Name of Employee Franchisee Shawn Neeley ........................ Jim Olson Kenneth Nelson ..................... Jim Olson Jannatun Nessa ..................... Lokman Chowdhury Cassidy Newbrough .............. Jim Liguori Michelle Newsome ................ Tim Fitzpatrick Dalena Nguyen ...................... Kevin Schlutz Hai Nguyen............................. Tabbassum Mumtaz Judy Nguyenvo-Lovato.......... Jim Olson Stephanie Nichols .................. Tony Frazier Dajah Nicholson ..................... Terry V. Rogers Joaquin Nicolas ..................... Mike Baker Aj Nightingale.......................... Brandon Robertson Samantha Noel ...................... Michael Kulp Brenda Nolasco ..................... Mike Baker Taylor Nordgren ..................... Jim Olson Leah Nurnberg........................ Daniel R. Von Pein Marian Obregon ..................... Dan Yagoda Rosanellie Ochoa ................... Jim Olson Ryan Oâ&#x20AC;&#x2122;Dea ............................ Samuel L. Sibert Mercedes Olguin .................... Bill Shelton Jaime Olivera ......................... Greg Schons Gabriel Orellana ..................... Jim Olson Daniel Ortiz ............................ Robert W. Prendiville Megan Overgaard .................. David Kerr Daaujraniq Owens ................. Jim Liguori Bibek Pachhai ........................ Manish Patel Alexandra Pacifico ................. Kenneth R. Rianna Naomi Paige........................... Jim Olson Nilsa Palacios ........................ Tabbassum Mumtaz Santiago Palencia .................. Jim Olson Tayler Paradiso ...................... Tanweer Ahmed Madeline Pare ........................ John P. Hayes Safiyyah Park ......................... Manish Patel Savannah Parker .................... HMS Host Corp. Greydon Parkins .................... Jim Olson Bianca Parra........................... Tony Frazier Jessica Parrack...................... Nicholas Potter Sapna Patel ........................... Hiren N. Patel Celinne Patton ....................... Jim Olson Chase Patton ......................... Jim Olson Ivyann Patton ......................... Samuel L. Sibert Natalie Paul ............................ Jim Liguori Katie Peatfield ........................ Matthew Thurston Taylor Peele ............................ Steve Rudoni Celeste Perez ......................... Jim Olson Megan Peters ......................... Kurt Aarsand Felicia Peterson ..................... John Hannon William Peterson .................... Jim Olson Jada Pickeing ........................ Inman Hodges Micah Pierce .......................... Tim Fitzpatrick Taylor Pierce .......................... Estate of Shirley Carr Gabriel Pina ........................... Jim Olson Samantha Plewes .................. KFCC Restaurant Kristen Ponce ........................ Todd Stewart Brenda Porras ........................ Jim Olson Jabari Porter .......................... Tony Frazier

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Name of Employee Franchisee Sheena Prasad ...................... Jim Olson Josiah Pratt ............................ David R. Sparks Xavier Prince .......................... KFCC Restaurant Rebecca Pruden .................... Larry Karbach Jacrystal Purnell .................... Sean Tuohy Myah Quirin ............................ Susan E. Stuver Toni Rahim ............................. KFCC Restaurant Quazi Rahman ....................... David Kerr Amanda Rajchel...................... Sean Tuohy Fernando Ramirez ................. Mike Baker Justin Ramirez ....................... Brian Denman Monica Ramirez-Mena ........... Mike Baker Adam Rayan .......................... Jim Liguori Jacqueline Recendez ............. Jim Olson Brooke Reedy ........................ Jim Olson Stephanie Reis........................ Larry Starkey Sarah Ricard .......................... Frederick P. Gallant James Rich ............................ James M. Treadwell Trish Richardson .................... KFCC Restaurant Madison Richey ..................... Tom Slater Ryan Rider.............................. Don True Alexa Rieck............................. Todd Stewart Melissa Riffle .......................... Nicholas Peters Demetrius Riley ...................... Jim Olson Spencer Risk .......................... Todd Stewart Syed Rizvi .............................. Tanweer Ahmed Brianne Robinson .................. Pete Wasilevich Katherine Robinson ............... Jim Olson Edgar Rocha .......................... Mike Baker Cheyanne Rodriguez ............. Steve Rudoni Laura Rodriguez .................... Michael Kulp Maria Rodriguez ..................... Jim Olson Marlow Rogers ....................... Stephen Broussard Ofelia Romero ........................ Jim Olson Jessica Rosas ........................ Jim Olson Tolulope Rotimi-Samuel.......... Michael Kulp Neil Rowlands ........................ Jeanine Bagshaw Shae Rowlison ....................... James McKenzie Paige Ruberg ......................... Jim Olson Daniel Rude ........................... Pete Wasilevich Brittany Ruffin ........................ Tim Fitzpatrick Tahsin Sadia ........................... Hiren N. Patel Marie Sago ............................. Robert E. Clawson Monise Saingelus ................... Juan Gavilan Estefani Salazar...................... Robert Mosesso Antonio Salgado-Lemus ........ Charles Clark Jr. Sawyer Samborn.................... Estate of William L. Bell Ni’Chelle Samuels................... Shirley Vangeloff Marcus Sanchez .................... Tabbassum Mumtaz Ivan Sandoval......................... Margaret Duenow Isis Santana ........................... Edward M. Thomas Roberto Santana .................... Charles Buckner Olivia Santangelo.................... Jim Olson Jasmine Santos ..................... Tony Frazier Chelsea Sarring ..................... Jim Liguori Victor Saucedo ...................... Pete Wasilevich

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REACH Winners KFC Foundation

Name of Employee Franchisee

Lakeita Savage ...................... KFCC Restaurant Africa Sayers........................... Jim Olson Jacob Scheidhauer ................ Jim Liguori Kira Schmidt .......................... Pete Wasilevich Jessica Schmitt...................... Todd Stewart Sarabeth Schmoker ............... Estate of Jerry N. Haynie Jared Schneider ..................... Jim Liguori Jacob Schuh .......................... Joe Oleinik Adrian Scott............................ Samuel L. Sibert Eydel Sevilla ........................... Richard & Alice Schleicher Raina Sexton ......................... James McKenzie Camorynne Shaw .................. Shirley Vangeloff Shania Sheikh ........................ Todd Stewart John Shields .......................... Frederick P. Gallant Nicholas Shipe,....................... Tommy Cecconi Jenae Showalter .................... Todd Stewart Ace Shryock ........................... Anton Lambos Jessica Silva .......................... Samuel L. Sibert Stephanie Simandl ................. KFCC Restaurant Akoye Simpson ...................... Jim Liguori Gurvinder Singh ..................... Sanjiv Chand Samantha Singh .................... Pinakin Vachhani Lauren Skalecki...................... Pete Wasilevich Matthew Skoronski ................ Eugene A. Skowronski Hannah Slade......................... Glen Flewelling Chloe Slauson ........................ Pete Wasilevich Candace Smart ...................... Thomas L. Lowry Andrew Smith ........................ Gregory Atwell Annastacia Smith ................... Wayne Lobdell Brittanei Smith ....................... Patrick Mulkey Kasey Smith ........................... Steve Paris & Estate of Ralph Potter Sierra Smith ........................... HMS Host Corp. Brittany Smith......................... Tommy Cecconi Natalie Smith.......................... Kenneth R. Rianna Riley Smith.............................. Estate of William F. Alford Haley Smithee ........................ Estate of Jerry N. Haynie Jordan Smith-Franz ............... Pete Wasilevich Heather Soell ......................... Robert Mosesso Lizbeth Solis .......................... Manuel Galhandro Hailey Sorensen...................... Jim Olson Nicole Sosnowski .................. Robert E. Clawson Tanda Southern ...................... Charles W. Middleton Michelle Spencer ................... Robert Mosesso Jonathon Spivey..................... Pete Wasilevich Ashley Sprague....................... David Kerr Cheyenne Stacy ..................... William Sims Landon Stalzer ....................... Ambreen Mian Alicia Stamper ........................ Don Gurney Lauren Standish ..................... Pete Wasilevich Ashley Stegall ........................ Manish Patel Quashima Stephens .............. Greg Flynn Amber Stevanus .................... Craig R. Bittner Aunna Steward ...................... Bill Shelton Samantha Stewart ................. KFCC Restaurant Symone Stewart .................... Larry L. Wheeler

Sarah Stobierski .................... Eugene A. Skowronski Jeffrey Stoner ......................... Jim Liguori Infinity Stover ......................... Michael Kulp Aniah Stywall ......................... Steve Paris & Estate of Ralph Potter Tammasha Swanigan ............. James W. Orten Erica Swann ........................... Shirley Vangeloff Taylor Tanner .......................... Minton Hester Leanna Taylor ......................... Jon L. Byrd Jr. Alexander Taylor..................... Tanweer Ahmed Josephine Tedder .................. Jim Olson Amry Theriot........................... C.M. Fulenwider Celina Thies ........................... Dennis Bohm Kaitlyn Thomas ...................... Jim Liguori Selleah Thomas ..................... Samuel L. Sibert Valerie Thomas....................... Jim Liguori Brittney Thompson ................ E.V. Bonner Kelsey Thompson .................. Noah J. Hommerding Logann Thompson ................. Richard West Antoinette Thurmond ............. Terry Robinson Skylar Tidwell ......................... Daniel J. Taylor Staci Tiedeken........................ Gary Tiedeken Jessica Torres ........................ Edward M. Thomas Nicholaus Townsend-Falck .... Jim Olson Kenny Tran ............................. Mike Baker Jasmine Traylor ...................... James M. Treadwell Ka’Osha Traylor...................... James M. Treadwell Jennifer Trujillo ....................... KFCC Restaurant Hannah Turner........................ Eugene A. Skowronski Jamia Tyree ............................ Manish Patel Jennifer Uon........................... Larry Starkey Zhandria Usher ...................... Michael Kulp Simone Van Niekerk ............... KFCC Restaurant Melissa Varela......................... Gregory Atwell Jennifer Vasquez .................... Jim Olson David Vasquez........................ Estate of Shirley Carr Diamond Vaughn.................... Michael Kulp Cassandra Veglahn ................ Jerry Weaver Ashley Velazquez ................... Edward M. Thomas Gaelan Venturi ........................ Michael Kulp Melissa Versak ....................... Harry Latshaw Julisa Villalobos ..................... Todd Stewart Kayla Waggoner ..................... Jack Sims Katie Wagner ......................... C. Charles Nailen Jr. Valerie Wagner ....................... Balbir Hans Chelsea Walker ...................... Inman Hodges James Walker ........................ Jeanine Bagshaw Ka’Loni Walker ....................... Jim Olson Kiana Walker .......................... Michael Davis Hannah Walker........................ Jeanine Bagshaw Megan Wallace....................... Chris E Fowler Maddison Walldan ................. Pete Wasilevich Gavin Wardzala ...................... Pete Wasilevich Sydney Warren ....................... Jim Olson Emily Watkins ......................... James M. Treadwell Cassie Watson ....................... Jim Olson

A K F C F Qu a r t e r l y

Fall 2015

w w w.a k fc f.c o m

REACH Winners

Name of Employee Franchisee

Hayley Watson ....................... Thomas A. Broome Caroline Watt ......................... Jim Liguori Alanna Watts........................... Pete Wasilevich Christopher Weaver ,.............. Michael Kulp Courtney Webb ...................... Jim Olson Jeana Webb............................ James McKenzie Hind Webster ......................... Aramark Paula Wechsler ...................... C. Douglas Knipp Kyle Weddington..................... Jeanine Bagshaw Jarrett Wendt,......................... KFCC Restaurant Daniel Wharton ...................... George Lambos Alexander Wheeler ................. Stephanie Hommerding Danasha Whitaker .................. Aramark Kelsey White........................... John Hannon Megan Wilczynski .................. Terry Robinson Gavin Wilkey .......................... Jim Olson Dakota Williams ..................... Frederick Thurston Naomi Williams ...................... KFCC Restaurant Nathaniel Willis ...................... Tanweer Ahmed Deanna Wilson ....................... Shirley Vangeloff Madison Wilson ..................... Jim Olson

Angelica Wilson...................... John Hannon Zachery Wilson....................... Allan M. Scott Ednedja Wilson-Lee ............... Michael Kulp Alexandra Wire ....................... Greg Flynn Amelia Wood .......................... David & Eleanor York Justin Wood ........................... Dennis Bohm Sheterra Woodard .................. KFCC Restaurant Emily Woolever ...................... Larry L. Wheeler Seth Wright ............................ KFCC Restaurant Zachary Wright ...................... Michael Kulp Victoria Wright........................ Jim Olson Ethan Wuycheck .................... Jeanine Bagshaw Chealsy Yeagle ...................... Frederick Bauer Kyle Yearsley .......................... Michael Davis Briana Yoursh.......................... Jim Liguori Araceli Zarate ......................... Mike Baker Noemi Zarate,......................... Jim Olson Ernest Zimmerman................. C. Charles Nailen Jr. Alysa Zimmermann ................ Pete Wasilevich Tim Zimmermann ................... Pete Wasilevich Rachel Zimprich...................... David Kerr T:7.25”

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C A R I B L A

KFC CARIBLA Markets Give Back To Local Communities 6

By Zaira Guevara

The KFC Caribbean and Latin America markets are giving back to their communities with the development of local Corporate Social Responsibility (CSR) programs. The programs have great impact, not just for the Brand, but also for the local communities and employees. Here are three great initiatives in the KFC Caribbean and Latin America Region.

KFC Panama (Franquicias Panameñas) In a continuous effort to impact communities in a positive way, KFC Panama sponsored the annual Kiwanis KFC Race held on July 20, 2015. The fundraising race, with distances of 1, 5, and 10 kilometers, supports Club Kiwanis projects for local children’s education and sports programs.

“This is the second consecutive year KFC Panama participated and we hope to continue to do so,” said Liza Henriquez, KFC Panama franchisee. In addition to the annual Kiwanis race, KFC also sponsors the Panamanian Football League, which involves about 400 kids in an intramural league. “These alliances allow KFC Panama to solidly position itself with its target and help spread the message of maintaining a balanced lifestyle. Also, leveraging efforts with other organizations is a great way to maximize the efforts between all the players,” said Vielsys Berguido, KFC Panama marketing manager. Franquicias Panameñas operates 33 KFC restaurants in Panama.

(Above) Participants await the Kiwanis KFC Race start on July 20, 2015 in Panama City. (Right) KFC Franchisees Joshua, Liza, and David Henriquez (left to right in blue and red shirts) pose with Chicky at the 2015 Kiwanis KFC Race. 48

A K F C F Qu a r t e r l y

Fall 2015

w w w.a k fc f.c o m

KFC Ecuador (Grupo KFC) One of the main goals of “Grupo KFC” (KFC Ecuador) is to develop and include persons with disabilities. Since 1999, KFC Ecuador developed a program to incorporate team members with disabilities. The program seeks work inclusion with equal and meaningful participation. “Through June of this year, an average of 340 team members with disabilities worked for Grupo KFC. This represents 4.2 percent of Grupo KFC payroll,” indicated Juan Carlos Quiroz, Grupo KFC human resources director. The positions in the program include front- and back-of-the-house, commissary, customer service, and restaurant managers. Each team member in the program is assigned a position that allows them to develop their abilities and skills and minimize risks to their integrity and to the other team members. In 2012, the company launched a dedicated work program for team members with moderate and severe disabilities. This modality allows the company to incorporate team members in dedicated work areas such as gardening, labeling, general services, etc. The dedicated program has been successful and now is available in three regions nationally. The program logo and slogan “We Believe in All People” reflects the Grupo KFC corporate values as well as teamwork, solidarity, equity, and inclusion. Grupo KFC operates 106 KFC restaurants in Ecuador.

In Ecuador, 4.2% of “Grupo KFC” payroll is composed of team members with disabilities.

“We are honored to support this important organization and work together to create more opportunities for the younger generations. We expect to raise more than $55,000 in 2015 by collecting donations from our consumers at the restaurants,” said Jorge Gustavson, Degasa general manager. Degasa operates 53 KFC restaurants in Chile.

The inclusion program logo and slogan “We Believe in All People” reflects the “Grupo KFC” Ecuador corporate values as well as team work, solidarity, equity, and inclusion.

KFC Chile (Degasa) KFC Chile joined efforts with the Non-Governmental Organization Fundacion America Solidaria to contribute to eradicate poverty and to improve the quality of life in Chile. Each KFC Chile consumer is encouraged to donate their spare change at the restaurant during 2015 and 2016 to support the organization’s projects in Chile. Fundacion America Solidaria programs seek to incorporate the young workforce and to eradicate child and youth poverty in Chile. Fa ll 2 015

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Selling Great Tasting Beverages! 6

By Jody Luihn

We hope that everyone had a successful summer selling a lot of drinks, especially our Dole Lemonade and Iced Tea. Beverage sales at KFC continue to grow this year, as we are up almost 20 percent in volume, and our Drinks per Transaction growth is reaching record levels. As your “Beverage Squad” continues to focus on driving Beverage Variety, Value and Visibility for the system by looking at new products, more beverage inclusion in marketing, and improved beverage merchandising, we need your assistance. Where can you help us with our mission to maximize beverage sales and profits? It’s in helping us serve the best quality drinks in the industry. As you know, maximizing beverage sales starts with having great-tasting and consistent products for our guests to enjoy with great-tasting and consistent food offerings. So, here’s how we’d recommend improving and maintaining your drink quality throughout your organization. Upgrade your fountain equipment when available Have you analyzed the age of your fountain equipment lately? According to Pepsi, more than 25 percent of the KFC system is serving beverages on old equipment. As part of our Pepsi agreement, operators can upgrade their equipment package after seven years to new, 10-valve fountain units with updated merchandising at both dine-in and drive-thru. If you are a high-volume restaurant, you may 50

A K F C F Qu a r t e r l y

Fall 2015

As part of our efforts to serve a quality

drink, all

restaurants should have a water filter system as part of their fountain

also qualify for a FREE icemaker. The equipment fund pays for the cost of equipment and installation, but operators are responsible for any necessary facility work to accommodate the new machines. Also, new equipment comes with a one-year warranty on all parts and service for that restaurant, which will save you maintenance costs. Overall, we’ve seen about a 5-percent increase in beverage volume and a two-point increase in beverage incidence when a restaurant upgrades its fountain equipment. More importantly, it improves your restaurant image and allows you to offer more beverage variety. Additionally, the current equipment package offered is the most upto-date technology offered by Pepsi (given our unit volumes), so don’t wait for “the next thing” in fountain equipment as part of your upgrade plan. We suggest developing an equipment upgrade plan for your restaurants and include your remodel schedule as part of your decision-making process. Reach out to your Pepsi NASM or a Beverage Squad member today about upgrading your fountain equipment

equipment.

and ensuring that you are serving the best fountain drinks possible. Ensure your water filters are changed every year As part of our efforts to serve a quality drink, all restaurants should have a water filter system as part of their fountain equipment. After all, our soft drinks are 5/6 water, so it starts with great water quality! Your Beverage Squad recognizes this and set up a yearly water filter replacement program at no cost to you. In early July, every year, filter replacement cartridges are shipped to each restaurant with instructions to hold the filter until your second yearly Preventative Maintenance (PM) call from our local Pepsi bottler or service agent. Ensure that your team confirms that the filter is changed properly during this PM call, which can occur any time between July and December. The filter is identified with an “Install in 2015” sticker to help your team know that it has been changed properly. This will ensure that you are offering the best water quality for your drinks, and it also helps minimize service issues w w w.a k fc f.c o m

A proprietary “Colonel’s Iced Tea” blend will be rolled out in 2016.

with your fountain equipment. Below are a few more tips on serving a quality drink at your restaurants: • Keep your fountain equipment clean and soak nozzles/diffusers in warm water nightly • Periodically taste your drinks for proper carbonation and syrup ratios • Utilize consistent brewing and hold time procedures for iced tea, both sweet and unsweet • Utilize Pepsi’s Small Parts Program through their 1-877 Service System • Utilize Your Trouble Shooting Guide to address service issues quickly • Ensure that your BIB products are properly rotated and not out of date. Although it’s not as “sexy” as developing beverage marketing programs or new products, you can help in ensuring that we serve the best quality drinks possible at KFC, which will continue our positive momentum around the most profitable part of our business, DRINKS! Thanks for your assistance and best wishes selling more drinks in your restaurants. Colonel’s Blend of Iced Tea coming in 2016 Speaking of iced tea, the Beverage Squad, led by KFCC, is in the process of developing a proprietary “Colonel’s Iced Tea” blend to be rolled out in 2016. As you know, brewed iced tea goes great with chicken and it’s even more profitable than soft drinks. We believe offering a consistent iced tea program in all KFC’s will help us drive even more beverage profitability and consistency for our system. More to come later this year, and we are very excited about the opportunities.

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O E C

Welcome to the ROCC 6

By Bryan Robinson, Operations Excellence Committee Chair

Hello, AKFCF! Let me begin by saying how honored I am to be your new OEC chair. I have seen many respected members of our franchise community lead the OEC over the years, and I am humbled at the opportunity to serve. As I compose this article, your OEC is in the throes of finalizing our new operations assessment, the Restaurant Operations Compliance Check, better known as, the ROCC. The ROCC is actually two audits in one. The first part is the same Food Safety Compliance Check (FSCC) with which we all are familiar. The second part is the Brand Standards Compliance Check. This is the CFF replacement audit. Both audits will be conducted simultaneously, on a quarterly basis by Steritech specialists. KFCC, in collaboration with the OEC, has spent nearly a year selecting which specific Brand standards to evaluate, as well as how to evaluate each one of them. Countless hours have been spent to pare down the list of evaluation items to just 32 standards that directly impact the aspects of your business that drive guest satisfaction. Plus, even more countless hours have been spent on how to evaluate these standards in a way that is both fair to the operators and, most importantly, provides the Best on Block experiences our guests deserve. The Brand standards portion of the ROCC will be launched with a comprehensive training plan during the first quarter of next year. However, some training tools and the ROCC self-evaluation tool will be released to 52

A K F C F Qu a r t e r l y

Fall 2015

the system during the fourth quarter of this year. I encourage everyone in the system to actively seek out these training materials (soon to be available on TeamKFC) to gain familiarity with the evaluation. Some things remain the same, such as a high level of focus on our product quality, sanitation and guest service. However, some things are different. One of the key differences between the ROCC and CFF is transparency. The same web-based tool to be used by Steritech, will now be available to the entire system for periodic, internal use. I feel this is where we have a huge opportunity to significantly improve our execution of the key systems and processes in every restaurant, every day. By periodically evaluating our restaurants ourselves, we have the chance to reinforce a consistent focus on those items that have a direct

impact on improving our guestsâ&#x20AC;&#x2122; experiences. Self-audits not only provide us the information to deliver a better experience for our external customer, but also enable us to deliver a better experience for our internal customer as well, our RGMs. By continually focusing on the same vital operational items, we provide a more consistent message and narrow the lane of focus to our restaurant teams. This will reduce the amount of stress associated with operational audits by enabling the confidence needed to perform simply because the same items are evaluated, in the same way, by both internal auditors and external auditors. Another key difference between ROCC and CFF is the shift in focus from what we are accustomed to in audits such as these. There will be additional emphasis on executing systems and processes such as communication w w w.a k fc f.c o m

The Brand

standards

portion of the ROCC

will be launched with a comprehensive training plan during the first quarter of next and training. One of the key benefits to the ROCC is going to be this broadening of focus, on not just a snapshot in time during the audit, but also on what is being done on a daily basis to better enable our teams through better training and communication. There also will be increased focus on projections and other processes such as the Clean Way. I strongly encourage the entire system to embrace these internal audits. Not only to familiarize our teams with the new evaluation process, but also

year.

to help shift their focus to those dayto-day processes that enable them to execute better. This will require a significant mindset shift throughout the system. Our focus will need to move from shooting for a better “score” on our audits, to driving better “execution” day in and day out – all in an effort to provide continually better experiences to our guests – which is proven to drive sales. After all, isn’t that what we’re all striving for? Finally, I want to express my gratitude to all the members of the OEC for

sharing their time and talents with the system, and a special thank you to Josh Phillips for his leadership during the last 12 months. While our key focus as a committee has been primarily on the ROCC, the members of your OEC have been providing feedback and discussing numerous additional items with KFCC, from future enhancements to the 1-800 program, to recommendations on the Best of the Best and the new uniform program, to testing programs such as the Your KFC Voice survey, and incentives for VOC, et cetera. Your OEC is working hard to improve many aspects of your business for you, and both your internal and external customers. We all will be key players in the execution and formulation of future endeavors. Thank you for the privilege of leading such a great team.

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K F C / N P C

A New Face At The Co-Op 6

Dale Black

Chris Held joins the RSCS as senior vice president

Recently you may have read an RSCS announcement from John Hans, chief operating officer, introducing a new member of the KFC Purchasing CoOperative leadership team. Chris Held joined RSCS as senior vice president, Supply Chain, and we have welcomed him into the KFC family. He and his team are located in the KFC Technical Center/RSCS Louisville Offices, and he now joins the Leadership Team weekly discussions. For several months prior, the RSCS KFC Team was led by Mr. Hans, who successfully undertook the structural transformation of your KFC Co-Operative and significantly impacted the relationship Chris Held with the Brand. Being handed the reins, Chris has hit the ground running, for he is already familiar with the KFC and RSCS system. He joined RSCS from McKinsey & Company, Inc., an elite management consulting firm specializing in business building, performance, customer and structure management, organizational change and operations. Chris was project lead on the recent McKinsey & Company team and had strong influence on the eight strategic steps the KFC system needs to address the tightening supply for Chicken on the Bone at RSCS and KFC. Chris has a passion for KFC and his thoughtful leadership, keen intellect, and insight were the drivers of this transformative project. 54

A K F C F Qu a r t e r l y

Fall 2015

As the AKFCF director on the KFC board, I want you to know that I appreciate the capabilities and skill sets that Chris brings to the KFC supply chain. We as members want efficient deliveries of a wide range of goods and services that enable our business to compete in today’s markets – not only today, but also the future transformation of the Co-Op by continuing to build upon the professional and strategic partnership with our KFC Brand and franchise family. Chris and his team will drive success in supply chain excellence, while focusing on results and impacting the entire business through value creation for the members. Chris earned his bachelor’s degree in chemical engineering, a master’s in industrial engineering and most recently, a Ph.D. in operations management from the Georgia Institute of Technology. He also holds a master’s in chemical engineering from the University of

Chris and his team will drive

success in supply chain excellence, while focusing on results and impacting the entire business through value

creation

for the members.

Houston. As an instructor of record on operations management at the Georgia Institute of Technology, Chris lectured on supply chain management, designing MBA courses on statistics, supply chain planning and global supply chain operations. Please be sure to greet Chris at the Fall Regional meetings and welcome him to our KFC Family. w w w.a k fc f.c o m

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R S C S

M e m b e r

P ro g ra m s

All Franchisees and Employees LOVE to Save! 6

By Lainie Yarmuth

Every year, the REACH Educational Grant winners act as real-life examples of the KFC People Promise and provide inspiration to everyone in the KFC family. Providing the RSCS Employee Discount Program to team members, such as the REACH scholarship winners, further convinces them that KFC is a great place to work and helps to retain top talent. In support of the KFC People Promise, the free RSCS Employee Discount Program helps team members “Have Fun,” “Make A Difference,” and “Be Your Best Self.” Many of the discounts available to team members help to lower their monthly bills, drive lower costs for family expenses, and make having fun as individuals and as a family a bit less expensive. A few of the most viewed offers on the discount site are the Apple Employee Purchase Program, all of the major cell phone providers, theme parks, and Payless non-slip shoe program. Since the launch of the RSCS Employee Discount Program six months ago, there is at least one KFC employee in every U.S. state who has registered for the program. Today, the KFC Family makes up 35 percent of the total Discount Program registrants, and so

A K F C F Qu a r t e r l y

Fall 2015

far, KFC team members have won four of five possible prizes from the RSCS “Everyone Wins Contest” (awarded for the first achieved milestone of 2,500 registered users). From this early data, we are excited that the message is starting to get out to users, but there still is more we would like to do to share the many benefits of the program. We would appreciate your help to spread the word about this free program, helping you show your employees that you care, just as you have done by participating in the REACH program. Feel free to leverage our graphics support and include your company logo in materials about the Discount Program. This allows your franchisee group to personally provide this amazing program to your team members. Please contact RSCS Member Programs with your ideas to spread the word about the RSCS Employee Discount Program at memberprograms@rscs.com. Now let’s shift attention to savings opportunities for your business and restaurant locations. Our Waste and Recycling Program continues to generate great savings for our members. Across the KFC system, the 733 participating KFC locations save $1.2

million annually. That’s a $1,600 PRA! These numbers represent only 16 percent of the KFC system. Imagine what the system-wide savings would be if all eligible locations sign up! One of the barriers of entry for the program has been that existing contracts have been in place with vendors that are not in the program. Remember to keep an eye on those expiration dates and contact us a few months prior to expiration to see if you could benefit from the great RSCS negotiated discounts. Also remember that if your current waste removal contract is with one of our national vendor partners (Waste Management, Republic, Rock-Tenn or SLM), we can move you to the RSCS program at potentially lower pricing. If you would like to see if you may be able to save with the program, send a copy of your recent waste and recycling invoices with the current service levels noted to Cindy Dahl at cindy.dahl@rscs.com, or fax to (502) 899-4827. If you have questions, please contact Cindy at (502) 891-4727. More than just office supplies! The Staples Office Supply Program has been in place for more than three years in the KFC system. Did you

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know you could register your business or personal credit card with Staples so that every time you go into a Staples store, discounts on thousands of items will be automatically applied at the register? The program has primarily been used via online ordering on the Staples Advantage website, but now you can register your credit card for those last-minute purchases, back-toschool essentials, and holiday items. We are in the process of updating the negotiated contract rates on items that are purchased the most. Visit the RSCS Digital Directory at www.rscs.com/ memberprograms for more information on how to register your credit card or shop online with Staples. Payroll shipping savings! Do you leverage the RSCS UPS discount when you ship your payroll

envelopes from your payroll vendor? We already save several operators more than 50 percent by using a UPS account number associated with the RSCS negotiated discount. First, make sure you are on the RSCS UPS program by contacting memberprograms@rscs. com, and then provide your UPS account number to your payroll vendor. We already are working with our approved payroll suppliers to set up this option to save our members on routine shipping costs.

for energy-efficiency project rebates and incentives. There are more than $4 billion worth of rebate opportunities in the United States alone. We are developing a proactive approach with suppliers and our Brand partners to consider possible incentives for large projects and eventually for routine purchases by our members. Find more information in the “Energy & Sustainability” category of the RSCS Digital Directory at www.rscs.com/ memberprograms.

Energy rebate savings! RSCS recently signed an agreement with Schneider Electric to capture some of the utility company rebates and incentives offers for our members who purchase energy-efficient equipment. Annually, utilities earmark currency in the billions

New ideas? Looking forward to 2016, we always are looking for new ways for operators and employees to “Grow Your Savings.” If you have any ideas, big or small, please send them to the memberprograms@rscs.com for review. We love to “GROW YOUR SAVINGS!”

We make sure you get this — each and every time As recognized equipment experts, Equipment Sales will provide you the highest level of customer service. We provide project management for new store builds, remodels and replacement equipment. Our service culture and dedicated sales representatives promote strong customer relationships. Call 1-800-444-7868 to speak with an equipment expert now! Facilities Connection 866-646-6335 | Parts Connection 866-570-5893 | Smallwares Connection 800-947-9277 www.rscs-fc.com

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AKF CF Q u a r t e r ly

C o m mu n i c a t i o n s

C o m m i t t e e

Re p o rt

A Solution At Last… 6

By Kevin Schlutz

Your AKFCF Communications Committee has been discussing for years how to make it easier for multi-region franchisees to renew and maintain their “in good standing” membership status and how to make membership renewal easier for everyone. The consolidation of operators has made this an increasingly important issue and we now have a solution. I’ve discussed this with many larger operators who are members of several different AKFCF Regional Associations, which have differing fees and renewal dates. I’ve heard from them, “Why can’t I just go to one place and renew my membership for all of my restaurants at once?” The answer is that starting next year, you can! During the Spring AKFCF Board meeting, the Communications Committee demonstrated an online membership site to the Board that will allow all franchisees to go to a RegOnline website once a year to renew a membership for one region or for several different regions to which they belong. This online renewal option was approved by the Board, and the intent is to start using the new site in 2016. The AKFCF will maintain the site and pay the associated fees. The Regional Secretaries will direct their members to the site and help them as needed with renewal. Once a member has renewed on the site, he/she will receive a renewal reminder annually. Another advantage of the site is the ability to pay either by credit card or by check. Virtually everyone in the system has used RegOnline to register for 58

A K F C F Qu a r t e r l y

Fall 2015

In 2016, all Regional and National membership dues will be processed from a single website.

Regional meetings or for the AKFCF Convention. The same email and password will work on the membership site and the information will automatically populate, saving time. Each Region’s renewal is separate on the site, so whether a franchisee belongs to one Region or five, he/she can renew all memberships at once. A regional map is included on the site for reference. I realize that in every Region there are a few members who tend to shy away from technology, and prefer to mail a check to their Regional Secretary to renew their membership, but this site is designed to be simple and easy for everyone. Here’s how it works: 1. Input email and password 2. Indicate region and number of stores 3. Indicate additional region(s) and number of stores (if applicable) 4. Pay with credit card or check This should take less than 10 minutes a year!

An accurate, current franchisee list will be used to validate the number of restaurants entered for membership renewal, as this information will be used to qualify a franchisee for attendance at Regional meetings and the AKFCF Convention (membership required to attend). This new system is a win for the franchisees (especially multi-region franchisees), a win for the regions, and a win for the AKFCF by automating and simplifying the process. Membership fees over and above the AKFCF dues will be distributed to the Regions, and the Secretaries have the ability to monitor their membership status at any time. Regional Secretaries were trained to use the site and discussed final details at the Fall AKFCF Board meeting in September. We look forward to introducing it to all of you around the end of this year. This is another initiative provided by the AKFCF to respond to the needs of our members by finding practical, workable solutions. w w w.a k fc f.c o m

Regional Short

Come Celebrate the Southeast Region’s 50th Anniversary! 6 By

Bonny Shelton

The Southeastern KFC Franchisee Association was formed in 1965 with the help of our Founder, Colonel Harland Sanders. From this historic beginning, other Regional Associations were formed and then our National Association, the AKFCF. KFC Franchisees always have been family, and those family bonds cannot be broken – even when some have retired. There is pride not only in our product, but also in the bond of fellow franchisees who remain steadfast in the Family. The Southeast Region will be celebrating its 50th Anniversary with a Black Tie Gala on Nov. 10, 2015 at the Crowne Plaza Hotel in Atlanta, Ga. A special committee headed by Kim Fowler has been busy making this special event a memorable one. There will be dinner, dancing, a photographer, and some very special surprises. We are hopeful that all our Family will attend – current members, as well as those who have retired but have not been forgotten.

The SEKFCFA has been working hard and coming together as a Family for 50 years, as demonstrated by the early SEKFCFA President’s dinner above and the Family outing at left.

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AKF CF Q u a r t e r ly

Executive Director Update

AKFCF to Chart its Strategic Plan for the Future 6

By Kelly Rodenberg

Strategic planning as a concept has been around for a long time. More times than not, the process is undertaken with the best of intentions, but ends up with a nicely produced and well worded document that sits in a folder until it’s time to hold another strategic planning session. That document may or may not be consulted in between those sessions. Implementation is what sets a successful plan apart from the document that gathers dust. The AKFCF conducted a Strategic Planning Session at the fall board meeting on September 3 and 4 in Memphis, Tenn. Members of the Executive Committee, board, committee chairs, and past presidents were in attendance for this two-day event. Vital to any plan is an outside assessment of strengths and weaknesses. It is critical to assess current strengths and to understand the values of our assets. A sustainable future takes full advantage of these attributes. The first, and arguably most important, part in developing (or redeveloping) a strategic plan is the assessment phase. The strategic facilitator needs to gather as much honest feedback as possible by engaging in real, one-on-one conversations with members and to distribute a survey to assess the Association’s current strengths and weaknesses. Generally, we can find many surprises – some positive and some negative. An outside resource is critical in this phase. An objective and unbiased resource can provide a fresh view and a neutral evaluation of our Association’s strengths, weaknesses, and resources. 60

A K F C F Qu a r t e r l y

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The AKFCF conducted its next Strategic Session at the fall

Planning

board meeting on

September 3 and 4 in Memphis, Tenn.

And this is where Harrison Coerver comes in. Coerver, president of Harrison Coerver & Associates, is an internationally-recognized consultant, speaker, and co-author of the bestselling books “Race for Relevance: 5 Radical Changes for Associations” and “Road to Relevance: 5 Strategies for the Competitive Association.” Since 1985, Coerver has consulted with more than 1,200 associations in strategy, planning, governance, and management. He is known for his group facilitation skills, straightforward style, and innovative approaches to association governance and management. He last worked with AKFCF and NCAC in 2013, and we are excited to have him back. The second phase of a strategic plan requires all participants to be included in the development of the plan. It is vital that members from an association – at all levels – are included in the facilitation of the plan. However, an experienced and effective facilitator is needed to provide balance and to ensure all members are heard and all relevant points of view are considered. Furthermore, the written product of this meeting must be understandable

by all parties involved and must be readily apparent to those who come into the picture over the next five years. Implementation is the most important part of a successful strategic plan. The third and final step in the strategic planning process is implementation. This is the actual carrying out of the strategic plan. While this may sound obvious, and it is not overly complicated, it is imperative that the entire association leadership – and all of its members – understand the plan, agree on the plan, and believe in the outcomes. This is where the “culture of the association” is most important. It also is important that during the second phase, measurable goals are set. Hitting these benchmarks is important, but not as important as tracking the organization’s progress and analyzing why or why not deliverables have been accomplished. Monitoring the progress of these benchmarks is significant to the success of the strategic plan. We look forward to sharing the outcome of this session with you and presenting the Association’s plan and goals for the next few years. Stay tuned! w w w.a k fc f.c o m

The Hard Way

It is comparatively easy to prosper by trickery, the violation of confidence, oppression of the weak … sharp practices, cutting corners – all of those methods that we are so prone to palliate and do as “business shrewdness.” It is difficult to prosper by the keeping of promises, the deliverance of value in goods, in services and in deeds – and in the meeting of so-called “shrewdness” with sound merit and good ethics. The easy way is efficacious and speedy – the hard way arduous and long. But, as the clock ticks, the easy way becomes harder and the hard way becomes easier. And as the calendar records the years, it becomes increasingly evident that the easy way rests haphazardly upon shifting sands, whereas the hard way builds solidly a foundation of confidence that cannot be swept away.

Thus We Builded* *Dictionary. Present participle and verbal noun. To fashion or frame according to a systematic plan or buy a definite process, to create, to BUILD a reputation. Reprinted by permission of Colonel Sanders, November 1964 Copyrighted by Harland Sanders, 1973.

Legal Update

Revisiting the Franchise Partnership Pact 6

By Ronald Gardner

The other day, I received a very thoughtful letter from a long-time franchisee with a good reminder of what we are trying to accomplish together with KFCC. Enclosed in the letter was a copy of the Franchise Partnership Pact sent out by YUM! in 2006. Interestingly, I think our journey with KFCC, as we continue down the road toward the Brand Turnaround, has reflected in many ways the commitments that KFCC and the franchisees made to each other in the past. The difference this time, I believe, is that both sides are not only “talking the talk,” but also “walking the walk.” As for the expectations the Pact placed on franchisees, I think we are doing a pretty good job. The commitments that the franchisees made under the Pact are reflected in the attitude that we have shown in the last yearand-a-half in working with KFCC to get to the precipice of this re-launch. Those commitments include: (1) trusting that the franchisor has the franchisees’ interests at heart; (2) providing involvement of the best franchisee operators within a system; (3) recognizing that short-term profits are not the only factor in our decisions; (4) responding appropriately to customer data; (5) reinvesting in the business; (6) raising issues in a constructive fashion; (7) welcoming, listening to, and embracing new partners; (8) building a One System mentality; (9) actively driving leadership principles in our own organizations; and (10) measuring, expecting, and celebrating progress. As I think about the last year-and62

A K F C F Qu a r t e r l y

Fall 2015

Building a

long-term

and

trusting relationship is not something that can happen quickly, or around a singular event like the

Acceleration Agreement or the Brand

turnaround.

a-half, and the enormous progress that we made in negotiating, approving, and embracing the Acceleration Agreement, as well as the steps that we have taken so far to constructively solve the problems that will necessarily arise when we are trying to accomplish so much in so little time, I am proud of the franchisees walking the walk in the spirit of this Pact. The vast number of franchisees are living

and breathing these commitments. Besides the obvious reinvestment in the business that is taking place, Voice of the Customer has been embraced to respond to customer data; franchisees understand that there has to be some pain in the short term to assure our long-term stability. And perhaps, most importantly, we have put a lot of trust and faith in the true partnership of Jason Marker and the rest of the KFCC LT. I also believe that KFCC has lived up to its half of the Partnership Pact. The commitments made by the franchisor in this Pact include the following: (1) trusting that the franchisees are deeply committed to the success of the brand; (2) getting franchisee input and involvement before decisions are made; (3) being mindful of franchisee economics in all that we recommend; (4) establishing clear, customer-based system performance standards; (5) providing opportunities first and foremost to our current partners; (6) moving w w w.a k fc f.c o m

advertiser promptly to resolve key issues; (7) being selective about who joins and stays in the family; (8) building a One System mentality at the Restaurant Support Center; (9) driving our leadership principles system-wide; and (10) measuring, expecting, and celebrating progress. I do not believe that there is anyone in franchisee leadership who has been around any amount of time who would not share my view that the way this system is governed has significantly changed. The franchisor truly is listening to what we have to say, seeks out franchisee input to make sounder decisions, and listens when we indicate that certain decisions have adverse economic consequences that may not have been considered. I think we are all generally pleased with the way the relationship continues to evolve. But here is the catch: Building a longterm and trusting relationship is not something that can happen quickly or around a singular event like the Acceleration Agreement or the Brand turnaround. In order for a strong partnership to thrive and survive, both partners must be committed to the principles set forth above – every day. And so my pledge to you is to continue to remember and remind our leaders and members what our commitment is, but to be just as quick to call on our KFCC partners to remain committed to these principles, and to hold them accountable when and if they deviate from them. Just as we hold ourselves accountable to be good partners, we need KFCC to be accountable as well. Mistakes will be made by both sides. That is to be expected, and so long as those mistakes do not become habitual or taken for granted, they should be forgiven so that we continue to build a positive relationship. We are not perfect, and neither are our partners. But together, we can in fact reach a point where 1+1=3.

index

Page ADVERTISER

39 AT&T

21 Accuserv

49 Café Valley Bakery

35 Procter & Gamble Distributing

C2 Dallas Group of America, Inc. (The)

41 R.F. Technologies

7 Del Monte Foods Inc.

C3 Dr Pepper Snapple Group

3 Ecolab Kay Chemical Company

13 Pacific Premier Franchise Corporation 1 Pilgrim’s Pride

5, 39 RSCS

57 RSCS Facilities

11 S&D Coffee & Tea Inc.

43 EnviCor

32 Sesco

55 Federal Heath

28 Spirit Realty Capital

51 Frontline International Inc.

45 Sprint Wireless

55 FSV Payment Systems

25 T&S Brass

53 Guardian Protection Services

55 Wind River Environmental

17 Gycor International

C4 Winston Industries

47 Hughes Network Systems

55 Worcester Industrial

55 Hyginix LLC

55 Jamesway Construction Inc.

31 KFC Foundation

33 Koch Foods

29 Mindful Business Group, Inc.

This column is for the general information of members of the AKFCF and should not be relied upon as legal advice. Please see your own attorney or professional advisor for questions concerning your franchise agreement. Ronald K. Gardner is General Counsel of the AKFCF and Managing Partner of the law firm of Dady & Gardner, PA. Fa ll 2 015

AKF CF Q u a r t e r ly

L o o k i n g

A KF C F Qu a r t e r l y

B a c k

Fall 2015

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