AKFCF Quarterly - Summer 2017 by Lionheart Publishing Inc.

SUMMER 2017

R E G U L AT I O N

RO L L B AC K S

GAC Holds Hope for Friendlier Regulations Under Trump

Also Inside: Leading with Purposeful Energy • Jim Sullivan • The Big Chicken’s Big Reveal

AVAILABLE BY THE GLASS OR JUG

ADEHT” N O M “LE NE RIG DO

Su m m er 2 017

A KFCF Q uar te rl y

Cover

SUMMER 2017

Regulation Rollbacks Recent federal regulation rollbacks reflect President Trump’s conservative policy initiatives. The GAC hopes to see further beneficial reform in the near future.

R E G U L AT I O N

contents tabl e

RO L L B AC K S

o f

S U MMER

2 0 1 7

GAC Holds Hope for Friendlier Regulations Under Trump

Also Inside: Leading with Purposeful Energy • Jim Sullivan • The Big Chicken’s Big Reveal

features 16

departments 4

GAC Report

From the Editor By Michelle Hunt

By Dan Gans and Mary Donohue

Recent federal regulation rollbacks reflect President Trump’s conservative policy initiatives. The GAC hopes to see further beneficial reform in the near future.

8 President’s Report By Eric Overcash

NCAC Report

20 Change the Energy and You Will Change Your Organization By Justin Patton

Identify your leadership style and learn how to make the shift from transactional to transformational.

By Tom Slater

12 In the News

42 Communications Report By Kevin Schlutz

46 Education Report

8 Smart Ways to Leverage Training and Minimize Employee Turnover

By Jim Sullivan

Practical tips for seeing lower turnover, higher tenure, and happier customers.

By Justin Stewart

48 Regional Short By Joe Farley

50 RSCS Member Programs By Rich Bingham

52 34

The Big Chicken Comes Home to Roost By Paul Gereffi

Take a look inside Marietta, Georgia’s Big Chicken ribbon cutting and reveal.

Executive Director Update By Kelly Rodenberg

54 Legal Update By Ron Gardner

56 Looking Back

34 2

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

Together, We Can Build a Showman.

With the compelling “American

Showman” design rolling out all across the country, a bold new direction has come your way.

Why not take a fresh new direction of your own –

let’s talk® financing

with a financing partner who may offer you better terms? Pacific Premier Franchise Capital offers:

• Experience: We’ve helped hundreds of franchisees across the country grow their companies with competitive capital options. • Flexibility: Offering up to 100% financing, as well as terms of up to 10 years. • Reliability: Efficient three-part funding process – enhanced by competitive rates and structures. • Relationships: Providing an ongoing dialogue to support the financing needs of your current and future business.

Su m m er 2 017

A KFCF Q uar te rl y

F ro m

t h e

E d i t o r

Summer Fun Brings Transitions 6By Michelle Hunt

Whew! What a busy summer it has been so far! In late May I traveled to the AKFCF spring board meeting in Asheville, NC, where I was able to share an update on the magazine – including the fact that our publishing editor, Cory, has moved on to bigger and better things. We wish him the best! I also love getting together with our franchisee leaders because they have awesome ideas for the magazine! Stay tuned to future issues as we bring some of those ideas to fruition! And, of course, the boys keep us very busy in the summer as well! Davis graduated from high school, attended college orientation, exhibited at his last county fair as a 4-Her, and we’ll be moving him into college in August. Gavin played on two baseball teams this spring and summer, finished up 7th grade, went to basketball camp and the Chicago Cubs baseball camp (Go Cubs Go!), exhibited at county fair, and will be playing basketball in a matter of weeks! Needless to say, they like to be busy like their mom. Enough about the boys; I could go on all day! But I can continue to talk about family, our KFC family that is... You will always find family as a continuous theme in the magazine; this issue is no exception. The summer issue is always one of transition. We have the changing of the guard, so to speak, as one AKFCF president passes the baton to the next. Our

A K F C F Quar te rl y

Summe r 2017

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. AKFCF EDITORIAL TEAM AKFCF President Eric Overcash Editor Michelle Hunt Assistant Editor Julie Mantlo Editor Emeritus Jeanine Bagshaw Darlene Pfeiffer AKFCF Administrative Director Debbie Newton Communications Chair Kevin Schlutz Past President Greg Atwell

leaders live to serve our family – it’s not easy – but the satisfaction and honor that comes from serving others is evident as they recount their years of service. Thank you to anyone who has served as a leader at the regional or national level, and if you’d like to get more involved, reach out to your regional association! This issue is sort of a melting pot of updates and useful information. On page 16, the Government Affairs Committee gives us a review of recent federal regulation rollbacks. Justin Patton, one of our fabulous convention workshop presenters, helps you identify your leadership style and how you can change and transition for the better on page 20. Our friend Jim Sullivan contributed his expertise on retaining valuable employees, gaining higher tenure with a more consistent customer experience on page 28. And finally, after covering the rebuilding of the Big Chicken in the last issue, we wanted to give an update after the grand re-opening. Take a look inside this beautiful representation of our brand on page 34. There you have it! I hope you enjoy this issue – and the first one with our new publishing editor Brooke. 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 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., 1635 Old41 Hwy, Suite 112-361, Kennesaw, GA 30152. Copyright ©2017 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 10719873) 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. 1635 Old41 Hwy, Suite 112-361, Kennesaw, GA 30152USA Toll Free: (888) 303-5639 Phone: (770) 431-0867 • Fax: (770) 432-6969 E-mail: lpi@lionhrtpub.com Web: www.lionheartpub.com President John Llewellyn, ext. 209 llewellyn@lionhrtpub.com Publishing Editor Brooke Schmidt brooke@lionhrtpub.com Art Director Leslie Proctor leslie@lionhrtpub.com Advertising Sales Aileen Kronke, 678-293-5201 aileen@lionhrtpub.com Sharon Baker, 813-852-9942 sharonb@lionhrtpub.com Reprints Kelly Millwood, ext. 215 kelly@lionhrtpub.com

w ww. akf c f . c o m www.

Sticky Fingers 7 5 % O F Q S R WO R K E R S H AV E

Nearly every employee steals now and then. Find out who’s costing you the most—and take action to stop it—with Delaget Guard, the only loss prevention software recommended by KFCC. You know employee theft is happening. You just don’t know who, how much, or when. Using Delaget Guard for just 5 minutes a day, you can reduce employee theft by $10,000 or more per store every year. Reclaim your margin, revenue, and time with the only loss prevention software recommended and fully supported by KFC. Wouldn’t it be nice to see that money go into your pocket instead of theirs?

Go to www.delaget.com/kfc to learn more or sign up. Get a free month of Delaget Guard when you mention code “Sticky Fingers.”

Part of a suite of solutions for smarter QSR operations including reporting, analytics, and outsourced payroll and accounting. Delaget Guard | Delaget Coach | Delaget Stats | Delaget Books Su m m er 2 017

A KFCF Q uar te rl y

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

Su m m er 2 017

A KFCF Q uar te rl y

P re s i d e n t ’s

Re p o rt

With KFC, You Get Back More Than You Give 6By Eric Overcash

As I look back at the many years working with KFC, what I cherish most is the people I have met and the relationships I have made. Diane and I started working on weekends at the Belmont, North Carolina KFC while attending college. Starting as a crew person, I eventually worked my way up. Throughout those many years, Troy and Pauline Day provided me with a career that most could only dream of, allowing me to serve on many committees and franchisee organizations. I have served as president of several local KFC Advertising Co-ops, president of the Southeast KFC Franchisee Association, two terms on the NCAC, chair of the Operations Committee, and now president of the AKFCF. These experiences have helped me grow as an individual. All that I have learned and the many relationships made along the way have helped make me who I am today. I have also traveled to almost every part of our great USA attending KFC meetings. I say this to encourage everyone to serve your KFC organizations and let them serve you personally. The old saying, “You get back many times more than what you give” is never truer than with your KFC family. The families, franchisees, bosses, employees and KFC corporate leaders who helped me arrive at this point in my life are the greatest example of the strength of our KFC system. The AKFCF and our regional associations are the backbone of our franchisee family. 8

A K F C F Quar te rl y

Summe r 2017

They help provide business education and build business relationships. AKFCF is dedicated to your success! When we started O Incorporated several years ago, one of the first things I wanted to do was identify our company’s core values. We used these to help make decisions and to keep us focused on the fundamentals, which help us personally and professionally.

O Incorporated Core Values

• Be Great – Strive to exceed expectations through customer service, teamwork, and continuous improvement. • Accountability – Take ownership and deliver on commitments. • Integrity – Keep your word, promises, and agreements by being truthful and non-deceitful. I am thrilled to have KFC President and Chief Concept Officer, Kevin Hochman, to work with during my year as AKFCF president. Kevin and his team have similar values as I do, so forming a strong, trusting partnership is easy. We are extremely fortunate to have Kevin lead our KFC brand. Bringing our Colonel back was exactly what we needed. During our last NCAC meeting, Kevin sat in on an operations committee meeting. I have never seen a president get the big picture like he does. He talks about our core products, value, and ops simplification. Profits continue to increase

in our company, and I hear the same from most of you. This is in large part due to the partnership we have formed with KFCC over the last couple years. I am grateful to the AKFCF, NCAC and KFCC leadership that has played a role in our new direction. As we execute at a higher level, and as the public realizes that we clearly have the very best food available on the street, we will continue to grow. I am confident we will continue to improve and become a top brand of choice in the USA. Would the Colonel be proud of the accomplishments and direction we are taking now? I know the answer would be a resounding yes! Greg Atwell, Chris Fowler, Joan Bowling, Larry Starkey, Larue Kohl and the many leaders we’ve had before have provided the foundation for our Association to continue to thrive. Our AKFCF bench of Bryan Robinson and Jim McKenzie are poised and ready to serve. Kevin Schlutz and Keith Cole continue to play vital roles in the executive committee. The AKFCF and NCAC committees are all working to assure we continue to improve our great brand and protect our franchisees’ rights. Our AKFCF staff of Kelly Rodenberg, Ron Gardner, Kris Stage and Debbie Newton are top notch; these are the folks who can and will get much of the work done. I look forward to seeing everyone at the fall regionals and later in Anaheim. I am honored to serve. w ww. akf c f . c o m

Filter Management Systems

The Gycor Advantage Saves Money. Longer oil life and less oil absorbed into the food means lower costs! Cleaner. No loose powder with built-in system.

Easy to Use. One-step process just put in a new pad each day.

Quick Circulation. Only 5 minutes and itâ&#x20AC;&#x2122;s ready to cook.

step

minutes

Compact. 30-day packaging. Easy to store and track replacement usage. Versatile. Works with all types of oil including Zero Trans Fat Oil

Gycor International, Ltd. 10216 Werch Drive, Unit 108 Woodridge, IL 60517

Su m m er 2 017

(800) 772-0660 FAX (630) 754-8084 www.gycorfilters.com

A KFCF Q uar te rl y

N C AC

Re p o rt

Finger Clickin’ Good: How Spark is Helping KFC Connect the Colonel with Today’s Consumers 6 By Tom Slater, NCAC Vice-Chair

Dear Fellow Franchisees: As you may have heard, KFC and the NCAC decided to explore options for our national media agency late last year. The search team included members of the KFC marketing team, of course, but also three NCAC franchisees and NCAC staff. After an exhaustive search, the team aligned on hiring a new media agency, Spark Media, based in Chicago. They are a part of one of the largest media conglomerates in the world, the Publicis Groupe, and we are very excited to have them as partners. We asked Spark to provide an update for you on the changing media landscape. I think you’ll find the article informative and fascinating. —Tom Slater All of us at Spark have been incredibly excited to join the KFC family as the company’s media agency of record. For those who don’t know us, we’re a full-service media agency that is one of four global brands within Publicis Media, a division of Publicis Groupe. We bring an entrepreneurial, innovative business approach that, meshed with our Groupe affiliation, we liken to the spirit of a startup, with a powerhouse soul. And in our partnership with KFC, our unbending mission is to ensure that your marketing message appears in the right place, at the right time, in front of the right people. We are constantly monitoring different peoples’ behaviors across various media channels. Are moms watching TV

A K F C F Quar te rl y

Summe r 2017

more or less than in previous years, for example, and are they on their phones while they watch? College kids also seem to constantly be using their phones, and more often than previous generations. Does that mean we need to buy more advertising on phones and tablets? If so, how much more? These are the questions that we passionately seek answers for on a daily basis. Regardless of consumers’ age, gender, ethnicity and geography, one consistent fact is that digital devices (computers, phones, tablets) are disrupting typical behaviors with media. Here are a few examples of our evolving approach to media in the ever-changing digital age.

Is TV Dead? No. It’s Just Evolving

Television has traditionally been the channel where KFC devotes the majority of its media spend, and for good reason. At first glance we see in the below chart that Live TV and DVR viewing is down 1.8% and 7.2%, respectively, vs. a year ago (YA). When comparing that to video viewing on digital devices, we are seeing double digital percent increases. Looking at those raw numbers might indicate that we should shift our media spend to digital video. However, we must look at the raw number of hours spent on each respective device. Americans still spend 136 hours per month watching TV, and in faraway

w ww. akf c f . c o m

second place is multi-media device consumption (e.g. Roku/Apple TV) with 27 hours. While it might seem that digital device usage for video seems to be increasing as more people use smartphones, Live TV is still the audience king that dominates the amount of video consumers watch on a monthly basis.

Digital Data is Making Us Smarter

When is the last time your phone was more than 20 feet away from you? If I had to guess, most people can’t remember the time last their phone was not within eyesight. Most consumers’ smartphones are in their possession at all times, even when they’re not actively in use. For marketers, smartphone data provides an incredible wealth of information that allows us to be more efficient and effective in targeting consumers. From media consumption habits to location information, our team works with KFC and other partners to gain actionable consumer insights from this useful data to better inform our media planning. This allows us to analyze whether a certain set of consumers have seen an ad on their phone or computer, and who among them may have visited KFC as a result, which allows us to deliver additional, more relevant messages to them. Alternatively, we can also see which consumers may have visited other restaurants, and we can try to learn and target those individuals with different messages to see better engagement with them as a result.

Location data analysis is a powerful tool, but it represents only one of many methods we use to reach the KFC consumer. Facebook is another example of a platform and partner we work with to effectively engage consumers. Since more than 50% of Americans use Facebook on a monthly basis, data is available that allows marketers to glean information on consumers’ connections, interests, content habits, and locations. With that information, we can create incredibly powerful targeting models for Facebook advertising that allow us to reach people who love chicken, for example, and come within a certain radius of our KFC stores, yet may not be visiting KFC regularly, or at all. Therefore, depending on the campaign and our goals, we can more effectively cater our targeting and messages to reach the consumers we want to visit our restaurants more frequently.

The Key to Smart Planning is Balance

Digital media is definitely disrupting typical marketing channels, yet we always consider the right balance of all consumer touch points with all of our planning and activations. With Live TV, we don’t overemphasize the role that digital devices like smart TVs, smartphones and digital have in the full landscape of video. Live TV viewing still dominates all time spent viewing video, but when our consumer behavior indicates increased use of mobile

and other devices, we harness that powerful data to more efficiently and effectively deliver our marketing messages. Finding this balance can be even more difficult when analyzing all media channels. The chart below shows Americans’ typical daily activity that adds up to more than 24 hours in a day. This means that consumers are multi-tasking often throughout the day, an insight that underscores the challenge of engaging people at the right place and time, with the right message.

Source: Activate “Tech and Media Outlook 2017”

In today’s media and marketing landscape, the constant state of disruption and evolution can be challenging, yet rewarding. As KFC’s media agency, know that we are working day and night to use all of the tools at our disposal – data, technology, insights and creativity – to better understand and engage with the KFC consumer. Our knowledge of the traditional and the modern media environment, coupled with the unique, actionable insights we gather on KFC’s consumers will become more sophisticated over time, and we are excited to continue to evolve, learn, and adapt as a team to create the most effective, engaging campaigns for the brand. As we further integrate into your business, we will continue to bring the most cutting-edge research and practices to the organization to deepen KFC’s connection with loyal fans and broaden it with the customers of the future.

Su m m er 2 017

A KFCF Q uar te rl y

N e w s

I n T h e

KFC celebrates National Fried Chicken Day with robot Colonel Sanders

To celebrate National Fried Chicken Day on July 6, Kentucky Fried Chicken brought founder Colonel Harland Sanders to the drive-thru experience as robot chicken-expert H.A.R.L.A.N.D. (Human Assisted Robotic Linguistic Animatronic Networked Device). H.A.R.L.A.N.D. is a state-of-the-art voice modulator system that gives drive-thru customers the experience they’ve always dreamed of: ordering from an animatronic Colonel Sanders head that speaks in the voice of Colonel Sanders. H.A.R.L.A.N.D. uses speech recognition, artificial intelligence technology and text-to-speech techniques to transform a KFC drive-thru operator’s voice into the unmistakable drawl of Colonel Sanders. Because

H.A.R.L.A.N.D. repeats whatever the drive-thru operator speaks, customers can have unique and interactive conversations just as they would with the real Colonel Sanders. “What better way to celebrate National Fried Chicken Day than by ordering KFC from the Colonel himself?” said George Felix, KFC U.S. director of advertising. While only select KFC customers have had the chance to engage with H.A.R.L.A.N.D., everyone can listen to and watch the robotchicken expert wish them a happy National Fried Chicken Day in a video message. (https://www.youtube.com/ watch?v=shGuyx7Hu4Y&feature=you tu.be) The convenience of drive-thru service has been around for decades, and not much has changed…until now. “We suspect drive-thru designers are heralding the H.A.R.L.A.N.D.

technology as the greatest industry advancement since the addition of two-way communication itself. Not only do we have a real person as our historic brand icon, but now we have the ability to bring that real person back as a real robot. The future is now,” Felix said. With more than 70 years of nothing-but-chicken expertise, KFC is the go-to destination for National Fried Chicken Day. Each year at nearly 4,200 restaurants across the United States, KFC sells approximately 400 million pounds of chicken, equivalent to 1.3 billion pieces. Created in partnership with Wieden+Kennedy’s design engineering group, W+K Lodge, H.A.R.L.A.N.D. is the latest example of KFC’s ambitious operations and marketing initiatives. Source: PRNewswire

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) – 1976(5P) KFC Franchise Agreement AKFCF – Association of Kentucky Fried Chicken Franchisees ABR – Achieving Breakthrough Results ARL – Above Restaurant Leader ASAP – American Showman Asset Program AUM – Assistant Unit Manager BDP – Best Demonstrated Practices BOGO – Buy One Get One BOH – Back-of-house BSC – Balanced Scorecard COB – Chicken on the Bone COGS – Cost of Goods Sold CREST – Consumer Reports on Eating Share Trends CSTM – Customer Service Team Member DMA – Designated Marketing Area FA (Or F/A) – Franchise Agreement FIT – Food Innovation Team FSC – Food Safety Consultation FSTM – Food Service Team Member FTF – Freezer to Fryer GAC – Government Affairs Committee HFFU – Heavy Fast Food Users IAYF – International Association of Yum Franchisees (formerly known as the IAKFCF, International Association of KFC Franchisees) KFCC – Kentucky Fried Chicken Corporation LAC – Local Advertising Council LOR – Loss of Revenue NAC – National Advertising Cooperative (merged with NFAC to become NCAC) NCAC – National Council and Advertising Cooperative

A K F C F Quar te rl y

Summe r 2017

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) RSC – Restaurant Support Center 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

w ww. akf c f . c o m

Yum! grows female leadership at Women’s Foodservice Forum Conference

Earlier this year, 39 team members from Yum! and its brands attended the Women’s Foodservice Forum’s (WFF) Annual Leadership Development Conference in Orlando, Fla. The WFF’s Annual Leadership Development Conference is a mix of educational sessions and speakers that aims to provide attendees with the tools they need to chart out their own career paths, as evidence to the WFF’s mission to advance women leaders, driving growth for individuals and organizations. “These conferences truly help to develop our current and future leaders both personally and professionally…supporting our goal of creating and developing unrivaled culture and talent,” said James Fripp, Yum!’s global senior director of diversity and inclusion. The conference was packed with several high-profile speakers, including Dawn Sweeney, CEO of the National Restaurant Association, and Suze Orman, financial guru and bestselling author. Among the sessions, Yum! attendees took away powerful messages. Haley Bethel, digital analyst for KFC Global, and Jo Moyer, legal for Taco Bell, were both inspired by Michelle Poler’s session, “What Are You Afraid Of ?” Michelle, known for her 100 Days Without Fear experience, encouraged the attendees to not be afraid of failing in order to grow: “Doubt kills more dreams than failure ever will.” Kristen Burress, QA for KFC U.S., took away the importance of regularly evaluating the core areas of life according to Simon T. Bailey, bestselling author and speaker. “If something is falling short, you must address it and make something happen versus playing it

New AKFCF year-round mobile app now available

We are excited to offer this benefit to all AKFCF member franchisees and suppliers. Discover the power of year-round engagement and communication with AKFCF’s 365 mobile app, a one-app solution for all our organization’s needs, 365 days a year. This app includes information on regional and national events, member networking opportunities, committees, targeted messaging, publications and more. It’s a year-round solution for the AKFCF to communicate with and engage our membership while allowing members to interact with each other and have meaningful conversations. To access the app, please enter the following URL in your mobile device’s browser: http:// w w w.tripbuildermedia.com/ apps/akfcf. This URL will take you to the appropriate market to download the iOS or Android version of the App, based on your mobile device type. If you don’t have an iOS or Android device, you will be taken to the HTML5 version of the App. To login into the App, you will need to enter username and password information on the app’s login screen. If you did not receive these via an email, please contact Deb Newton. We hope you find this communication tool as exciting and useful as we do!

safe or being complacent,” Burress said. While many women note specific teachings from the conference, Laura Flynn, finance for Taco Bell, stresses the importance of organizations that focus on growing women leaders. “WFF brings attention to the fact that women are untapped resources in the workforce with unique minds

and voices,” she said. “The organization empowers women to recognize how their thought processes and opinions add significant value to discussions, companies and the broader economy.” Yum! is among the 200+ leading foodservice companies that partner with WFF in order to develop and grow top talent and leadership. Source: Yum! Su m m er 2 017

A KFCF Q uar te rl y

I n T h e

N e w s

Ron Gardner receives AAFD Chairman Award

As a managing partner at Dady & Gardner, P.A., Ron Gardner specializes in representing franchisees, dealers and distributors when they are in disputes with their franchisors, manufacturers or suppliers. He also represents franchisee associations in all phases of their existence. Over his distinguished career, Gardner has represented franchisees in dozens of industries as well as more than 25 franchisee associations. He has represented businesses of all sizes including some of the top 10 largest franchisee associations in the world. In addition to recently receiving the American Association of Franchisees and Dealers Chairman Award, Gardner has been named

Ron Gardner

one of Minnesota’s top 100 “Super Lawyers” by Law & Politics six times and earning a place in the Legal Eagle Hall of Fame by being named a Legal Eagle by Franchise Times every year the list has existed. Ron serves as general counsel of the AKFCF and is a regular, valued contributor to AKFCF Quarterly.

KFC South Africa’s Add Hope program sees record donations

In June, KFC South Africa’s Add Hope initiative achieved record high donations in one week. This milestone came after a successful campaign for the month of May, as the KFC Add Hope team rallied South Africans to come together in the Hope Against Hunger challenge, raising awareness for International World Hunger Day.

Sustaining a greener today. Coolscapes™ with GreenGenius™ Delfield’s new line of R290 refrigeration based systems.

Don Alwood | donald.alwood@welbilt.com | 989-205-6739

A K F C F Quar te rl y g 14WBT_ESPOY_KFC_7_375x4_875.indd

1Summe r 2017

welbilt.com

w 6/15/17 ww. akf4:27 c f . cPM om

KFC’s global Add Hope initiative began in South Africa, and since its inception, the inaugural program has raised money through KFC contributions and customer donations. Every cent of customers’ donations goes toward feeding children in local communities. With this generosity, the Add Hope program is able to feed more than 120,000 South African children nutritious meals every day. In celebration of Add Hope’s most successful week to date, KFC South Africa enlisted The Hope Squad, a group of individuals whose lives have been positively impacted by Add Hope, to visit local stores and share virtual reality experiences with customers, showing them where their donations go. Some of the organizations that benefit from Add Hope donations around the country include JAM, Boys & Girls Clubs of South Africa and Africa Food for Thought.

CONDOLENCES Rick Schleicher (1957 - 2017) passed away June 3. For many years, he served as the vice president of AJS, Inc. d/b/a KFC and was responsible for restaurant operations and construction management of the restaurants throughout Indiana, Alabama, Tennessee and Kentucky. He first worked as a team member in his local KFC from 1975 to 1977. When he found out KFCC wanted to sell the restaurant, he convinced his parents to make the purchase and begin a family business! Rick is survived by his loving parents, his beloved wife Kyna Schleicher, sister Kimra Schleicher (Cindie Crain) and three children: Kandice (Charles) McMillan, Kristin Schleicher and Kasia (Nathan) Johnson. He is also remembered by his six grandchildren.

Optimize Your QSR with EOS | HD® Message Center EOS | HD is the first and only drive-thru system with HD audio and pre-recorded color tag reminders. Optimize your QSR operation with EOS | HD and experience crystal clear audio and a comprehensive message center with automatic reminders—all designed to provide faster service, improved order accuracy and a better customer experience.

EOS | HD—Improve customer experience, order accuracy, and speed of service. 800-848-4468 | www.hme.com/eos-hd © 2017 HM Electronics, Inc. The HME logo and product names are registered trademarks of HM Electronics, Inc. All rights reserved. PA17-01

Su m m er 2 017

A KFCF Q uar te rl y

G AC R E P O RT

Federal Regulation Rollbacks Reflect Trumpâ&#x20AC;&#x2122;s Conservative Policy Initiatives AKFCF GAC SEEKS FURTHER BENEFICIAL REFORM By Dan Gans and Mary Donohue

A K F C F Quar te rl y

Summe r 2017

w www. ww. akf c f . c o m

onald J. Trump, the 45th president of the United States, was sworn into office on January 20, 2017, and since his first day has represented an ideology revolution in America that has begun to affect each citizen. From tax reform to international relations, President Trump’s first few months in office have been an upheaval of past administration policies and a revamping of conservative values that permeate his policy initiatives.

Congressional Review Act

On the campaign trail, President Trump promised to roll back many federal regulations implemented during the Obama administration by using the Congressional Review Act (CRA). The CRA allows Congress to overturn rules by a federal agency 60 days after they are reported to Congress. The rule was intended for wiping out “midnight rules” finalized late in a presidential administration and had only been used once before this year. Due to an increase in partisan voting, the CRA emerged as an attractive tool in the 115th Congress because it provided one of the few avenues for Senate action that avoids the ordinary 60-vote cloture requirement. The window for repealing rules finalized by the Obama administration after June 2016 closed in May 2017. At press time, the Trump administration has rolled back the following 12 regulations:

Transparency

H.J.Res.41 reversed a SEC rule that was crafted as an anti-corruption measure under the Dodd-Frank regulations, but energy companies considered it too onerous. Critics complained that the regulation gave foreign energy companies a pass while hurting domestic companies.

Coal Mining

H.J.Res.38 ended the “Stream Protection Rule,” a Department of Interior rule that reeled in the coal industry.

Gun Control

H.J.Res.40 reversed a rule by the SSA, which had yet to take effect, restricting gun purchases by the mentally ill using additional firearms background checks.

Labor “Blacklisting”

H.J.Res.37 ended a “blacklisting” rule, under several agencies, that required federal contractors to disclose any violations of 14 other labor regulations within the previous three years.

Land Use

H.J.Res.44 ended a Department of Interior Rule, “Bureau of Land Management Planning 2.0,” that gave the federal government more – and state and local government less – authority in land use decisions.

Federal Education Standards

H.J.Res.57 and H.J.Res.58 reversed new federal standards for new teachers that the Department of Education proposed under legislation signed by President Obama in 2015.

Drug Testing for Unemployment

H.J.Res.42 overturned a Department of Labor regulation that had restricted the use of drug testing to determine workers’ eligibility to receive unemployment compensation.

Hunting Predators

H.J.Res.69 reversed a Department of Interior rule banning non-subsistence hunting of predator species for population control in wildlife refuges in Alaska.

Injury Paperwork

H.J.Res.83 nullified a Department of Labor rule requiring more records of worker injuries.

Broadband Privacy

S.J.Res.34 repeals an FCC rule requiring ISPs to ask customers before sharing private information with advertisers – which Google and Facebook could still do under the rule.

Forced Savings

H.J.Res.67 reverses a Department of Labor rule allowing states to force workers to save.

Planned Parenthood

H.J.Res.34 repeals a mandate that all but required states to fund the entity. Su m m er 2 017

A KFCF Q uar te rl y

G AC R E P O RT

AKFCF GAC Looks Ahead True conservatism believes that every regulation creates at least some cost and hassle for the interests being regulated, and Republicans have argued that the regulatory state spiraled out of control under the Obama administration, strangling businesses in red tape. The AKFCF faced some major regulations under the Obama administration including overtime reform, minimum wage increases, menu labeling, and the NRLB’s joint employer standard – all of which are still relevant today.

NLRB Joint Employer

In August 2015, the National Labor Relations Board (NLRB) ruled that “indirect” and “potential” control over workers’ terms and conditions makes a company a joint employer. The rule change exposed a broad range of businesses to workplace liability for another employer’s actions for workers they do not employ. The NLRB will not be reversing the standard as the board currently stands, but the president can nominate two new board members once the current terms are over. After new members are confirmed to the Board, it will take more time for an appropriate case to develop so the Board can restore the “direct control” joint employer standard. The AKFCF GAC, along with a coalition of more than 50 businesses and trade groups, are asking the 115th Congress

to pass legislation to repeal the NRLB’s new joint employer standard. If Congress can get legislation through a Republican controlled House and Senate and to the President’s desk, it would expedite the process of restoring the standard rather than leaving it up to a long nomination process.

Overtime Reform

The Department of Labor’s proposed changes to the overtime rule is currently blocked by a preliminary injunction issued on Nov. 22, 2016. There are no definitive signals yet as to how the Trump administration will respond to the legal challenge or if they will pursue a new regulation. Recently, the DOJ asked for an extension to file a reply brief against the appeal of the preliminary injunction. The original rule as outlined would have undoubtedly harmed many AKFCF businesses, causing many salaried employees to drop down to hourly to avoid detrimental labor cost increases. However, the Trump administration has a complicated situation on their hands. The same blue-collar workers who supported Trump over Clinton in the election are the same group of people this regulation would benefit the most. When the administration decides to revisit this rule, we might not see a complete reversal of the proposed regulations but perhaps a decrease in the threshold or a slower incremental increase to allow more time for businesses to adjust.

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 William Alford Jr. Bruce Bagshaw Blake Bagshaw Jeanine Bagshaw David Bell Kathy Bouwman Joan Bowling Keith Chambers John Coldwell Brian Denman Alessio DiFranco Anne Goodnight Kirk Gurney Mary Beth Hamilton Robert Holt Lesley Hottinger Theresa Kelly John Kovach George Lambos Craig Lee John Masters Lynn Mayer James McKenzie Diana Myers

A K F C F Quar te rl y

Marvin Payne Jordan Anne Phillips Dana Rudoni Shirley Vangeloff Scott Vorrath Brian Wheeler Chad Wheeler Larry Wheeler Robert Widder Northeast Ray Aley III Diane Burns Tony Cameron Robert Carlucci Tom Cecconi Gary Cocolin Keith Cole David Evans Joe Farley Frederick Gallant Michael Houston Donald Lopes Dale Moulton Robert Rianna

Summe r 2017

Alex Rosenblum David Rudnick Theodore Silver Eugene Skowronski Larry Starkey Matthew Thurston James Waters Northwest Frederick Baker Robert Carle Manuel Galhandro Ralph Harman Brett Harris James Jackson Lisa Kern Joseph & Charlene Oleinik Sam Sibert Donald Steinke Todd Stewart Ken & Jane Wall Southeast Marcus Brigance

Eric Felker Austin Felker Sims Johnson Larue Kohl Lynn McSwain Eric Overcash Vic Peeples Nicholas Potter Terry Rogers Linda Rosenbalm Fred Ruth Sr. Leslie Sharp Bill & Bonny Shelton Marcus Shelton Jay & Kelly Shoffner Richard West Bill West Steve West Charles “Tim” West Southern California Charles Buckner Shahid Chaudhry Israel Diaz Russell May

Patricia McBrayer Robert Prendiville Southwest Debra Ashmore Richard Cahill Rudy Garcia Rajeev Jain Franklyn Nye Peggy Rasmussen Doyle Sanders Upper Midwest Margaret Duenow Julie Harrigan Holly Helf Michael Kulp Kevin Schlutz Susan Schmidt Doug Smith Gary Tiedeken Pete & Mary Wasilevich

w ww. akf c f . c o m

Tax Reform

significant duties, further limiting the minority’s power in a chamber that was designed to be a slower, more deliberative body than the House. Time will only tell how the appointment of Judge Gorsuch, the aftermath of the nuclear option, the proposed tax reforms, and the CRAs will alter the course of American history. There is no doubt that Trump’s first few months in office have been radical and not without controversy. However, the future for the KFC franchisees under the new administration renders hope for friendlier regulations and more business-centric thinking in the coming years.

President Trump’s proposed tax plan for individuals and corporations is one of the most aggressive to date. Huge cuts have been outlined to hopefully keep jobs from being shipped overseas and to create savings for middle class families. The tax plan has four goals: 1. Providing tax relief for middle class Americans. 2. Simplifying the tax code. 3. Growing the American economy. 4. Decreasing the deficit.

Regarding corporate income tax, no business of any size, PGP_FA22352_AKFCF_PrintAd_Dawn-PowerDisolver_SummerIssue.pdf from a Fortune 500 to a mom-pop shop to a freelancer living job to job will pay more than 15% of their business income taxes. If enacted, this lower rate should make corporate inversions unnecessary by making America’s tax rate extremely competitive compared to the rest of the world. The rate cut for pass-through entities will be the most impactful for KFC franchisees, should the proposal be enacted into law.

5/30/17

3:17 PM

P&G Professional Total Foodservice Program

STREAMLINED SOLUTIONS, EXCEPTIONALLY CLEAN.

Supreme Court Justice Neil Gorsuch

A Trump administration milestone that cannot be overlooked is the successful appointment of Judge Neil Gorsuch to the Supreme Court on April 7, 2017, as the 113th Justice. President Trump now has a legacy; Judge Gorsuch, 49, could serve on the court for 30 years or more. Judge Gorsuch has the typical pedigree of a high court justice – he graduated from Columbia, Harvard and Oxford, clerked for two Supreme Court justices, and held a stint in the Department of Justice. Gorsuch is a favorite of legal conservatives because he has sharply questioned a three-decade old legal precedent that many on the right believe has given too much power to the regulatory state. After a historic nomination process in which the Senate Democrats waged a filibuster against Judge Gorsuch, denying him the 60 votes required to advance to a final vote, Republicans invoked the so-called nuclear option: lowering the threshold on Supreme Court nominations to a simple majority vote. In deploying the nuclear option, lawmakers fundamentally altered the way the Senate handles one of its most

Before

After

CMY

ADVANCED TECHNOLOGY

FOR BAKED-ON

AND BURNED SURFACES

P&G Professional is an approved cleaning supplier for KFC® Need help? Contact us 24/7 at pgpro.com or 1-800-332-7787. GIN # 27963

Su m m er 2 017

A KFCF Q uar te rl y

LEADERSHIP

Change the ENERGY

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

and You Will

Change Your ORGANIZATION

hat will you do when you realize your organization is rewarding leaders for bad behavior?

By Justin Patton, Executive Leadership Coach

Time-after-time you see leaders stand up and talk about the importance of putting people first, but then they make decisions and implement processes that go directly against that philosophy. Organizations reward bad behavior when they only hold individuals accountable for results and not how they get results. When your organization is only focused on the end-result, it creates a transactional culture where people are sacrificed for numbers. But there’s a different way! This article highlights the three different energy levels that shape a leader’s impact and credibility, explains core actions in each level so you can learn to identify and coach others appropriately, and reveals how to make the shift from a transactional to transformational leadership style. Everyone benefits when leaders take responsibility for the energy they show up with every day and when organizations hold them accountable for their energy.

Justin Patton is an executive coach who challenges leaders to communicate with stronger presence and impact. Justin has developed more than 3,000 restaurant general managers in the past several years and he co-facilitates Taco Bell’s signature RGM leadership development program. He is a faculty member for the Institute for Organization Management, has expertise in body language & executive presence, and is a member of the International Coach Federation and National Speaker’s Association. Website: http://www.justinpatton.com/ Read More: http://www.justinpatton.com/blog/ Facebook: https://www.facebook.com/ JustinPattonInspires/ YouTube: https://www.youtube.com/Bodylitics Su m m er 2 017

A KFCF Q uar te rl y

LEADERSHIP

What Is Energy and Why Is It Important? Energy is defined as the “mindset and presence you show up with every day.” Your energy impacts your ability to create trust and engagement in every relationship in your life. More importantly, we know from the universal law of attraction that “energy attracts like energy.” The customer experience is always better when team members and managers operate from higher energy levels. Let’s briefly explore the two elements that make up one’s energy: mindset and presence. Carol Dweck, author of the book Mindset: The New Psychology of Success, spent years researching the different mindsets people show up with and the impact it makes. Her research defined two clear types of mindsets: Growth Mindset and Fixed Mindset. Individuals with a growth mindset believe their intelligence can be developed and they embrace challenges as opportunities to learn and grow. As a result, they learn from criticism and are resilient in life. Individuals with a fixed mindset believe their intelligence is static and they avoid challenges. Fixed mindset people tend to ignore feedback, and they only want to be part of things that showcase their brilliance. These two mindsets are alive in your restaurant and they impact how teams interact with each other.

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

Presence deals with the verbal and nonverbal intensity you use to communicate. It is about knowing when to show up with strength and confidence and when to show up collaborative and empathetic. It takes strong emotional intelligence for you to not only be aware of your behavior but to know how to manage it. It is easy to show up your best when things are going well, but how do you react during life’s most challenging moments? Individuals who take responsibility for their presence use their body language to make it safe for people to tell them the truth, and they know how to flex their style to meet people where they are. As a result, they inspire commitment from people, not just compliance.

Want to learn how you can use your body language to demonstrate empathy and cultivate deeper levels of trust? Visit Justin Patton’s YouTube video here: https://www.youtube.com/ watch?v=kN76FdIFVx4 KR17001 NDA color ad half page KFC_Layout 1 3/9/17 4:59 PM Page 1

Providing Sales and Acquisition Services for KFC Franchisees Since 1988 www.ndainc.net

Serving KFC franchisees with their buy, sell and • capital needs.

“

• Successfully completed hundreds of KFC transactions. Actively working with KFC buyers seeking acquisitions • nationwide.

“

• Experts in business valuation.

“Nearly 30 years ago, NDA, Nick Diachenko and team helped me acquire our first two KFC Restaurant locations. Since then we have placed our trust in NDA's knowledge and expertise, as our organization grew. Pound for pound a great resource and a trustworthy organization!”

Dave and Mary Ann Evans, Multi-unit KFC Franchisees John Pinar 502-491-0424 • johnp@ndainc.net

Derek Diachenko 502-495-2262 • derekd@ndainc.net

Nick Diachenko 502-495-2345 • nickd@ndainc.net

Byron Burge 502-618-4895 • byronb@ndainc.net

Su m m er 2 017

A KFCF Q uar te rl y

LEADERSHIP

The Three Core Energy Levels After working with thousands of leaders in different countries and across different industries, I have noticed consistent patterns in how leaders show up and get results. I have analyzed those patterns and outlined three core energy levels. I have used this model within small businesses and Fortune 500 organizations to help leaders shift their energy and improve organizational and team culture. It is important to note that we go through all three energy levels from time-to-time; however, it is our ability to be aware of which energy level we are in most often and the rewards and consequences associated with that level that makes the difference. Finally, you spend most of your time – personally and professionally – in one particular level of energy. You are either in the basement, lobby, or penthouse. Review the different levels below and be honest with yourself about which level you show up in most often. Level 1 Energy: Basement Javier walked into his team meeting and sat down. He told his team he really valued their ideas and needed their thoughts on how to take the team and business to the next level. However, he started the conversation by sharing his ideas, and he would often criticize other’s ideas (verbally and/or nonverbally) instead of building off of them. Javier was so caught up in being right that he could not hear what other people were trying to say. Others felt dismissed and started checking out. Javier left the meeting feeling it was successful and that expectations were clear. He was

unable to see that his intensity got in the way of his ability to take people with him and gain buy-in. He sacrificed the relationship with his people for his desire to drive results and self-validation. Leaders who show up in Level 1 mostly lead from only their head-space and their actions and choices are rooted in fear. They are so focused on driving results – at any cost – that they have adopted a transactional leadership style. Their actions are rooted in their ego and they are often unaware of the impact their behavior has on others. If Level 1 leaders are in an organization that only values results then they typically excel and are rewarded for this behavior. As a result, they get compliance from their team, but they never get commitment. Characteristics of Level 1 Energy The Harvard Business Review asked the question “Is It Better to be Loved or Feared?” in their 2013 article Connect, Then Lead. The research proved that both strength and trust are important, but trust/love needs to come before strength. They emphasized, “Leaders who project strength before establishing trust run the risk of eliciting fear, and along with it a host of dysfunctional behaviors. Fear can undermine cognitive potential, creativity, and problem solving, and cause employees to get stuck and even disengage.” Persian poet Hafiz once said, “Fear is the cheapest room in the house. I’d like to see you living in better conditions.” We all go to Level 1 energy from time-to-time, but we must be aware of when we are there and make a conscious choice to pull ourselves higher.

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

Level 2: Lobby Sara was talking with a customer who was upset. She gave the customer space in the conversation to express his concerns. Her body language made it safe for the customer to open up and it demonstrate her desire to understand what happened. She acknowledged the customer’s experience so he felt heard. She knew she could not change what happened but she could control her response moving forward. She took accountability, apologized for letting the customer down, and outlined what she would do to make the situation right. Leaders who show up in Level 2 are driven by empathy and lead mostly from their heart-space. They believe that the way to get long-term, sustainable results is through people so their core focus is on building authentic relationships. As a result, their core leadership style is participative. They are good listeners, show up fully present for others, and they are intentional about making deposits into people’s emotional bank accounts. They typically earn commitment from their direct reports. Level 2 leaders have to be careful that they don’t lead so much from only their heart-space that they get sucked into other people’s drama, don’t say the things they need to say, and don’t hold other’s accountable to defined expectations.

Innovative Ideas

A Recent Case Study KFC and Auspex: Auspex completed the placement of a A Powerful Partnership remodel line of credit for a long-time client, which provided low cost, 100% ﬁnancing for the American Since 2004. Showman upgrade of its 31 restaurants.

100% Financing

for 31 KFC Restaurants

The American Showman Remodel

Contact us for a no-cost evaluation of your business Shriram Chokshi Managing Director | (562) 424-5157 | schokshi@auspexcapital.com

Christopher Kelleher Managing Director | (562) 424-2455 | ckelleher@auspexcapital.com

Naveen Goyal Managing Director | (562) 424-5158 | ngoyal@auspexcapital.com

www.auspexcapital.com

F INANCIAL A DVISORY

Su m m er 2 017

AND

I NVESTMENT B ANKING

A KFCF Q uar te rl y

LEADERSHIP

Characteristics of Level 2 Energy Oprah Winfrey said, “Every single person you meet shares a common desire. They want to know: 1) Do you see me? 2) Do you hear me? 3) Does what I say mean anything to you?” Level 2 energy makes people feel both seen and heard. Level 3: Penthouse Greg had a direct report who was struggling. He had several coaching conversations previously, but he didn’t feel like the direct report understood the seriousness of the issue. Greg believed in this person and was committed

Now approved for the following bakery items: biscuits, mac and cheese, cookies, and pot pie

to having one more conversation – even though his boss thought he should let him go. Greg called Gideon into the office and shared his truth about Gideon’s actions and the impact they were having on everyone else. He balanced the seriousness of the conversation with the intensity of how it came across to Gideon. Gideon apologized for his behavior and acknowledged he didn’t realize it was causing problems. Greg expressed his belief in his team member and said he would have his back if he was willing to do the necessary work to turn things around. Leaders who show up in Level 3 experience life and relationships on a different level. They focus on building trust with others because they understand that’s how you build meaningful relationships, influence, and credibility. Their choices and actions are rooted in love – first for themselves and then with others. Authenticity is a value for these people and they foster a culture where others feel they can show up as their authentic self every where they go. They are no longer trying to prove to others how talented, smart, and valuable they are because they have a strong sense of self-worth. Their self-confidence comes from being driven by purpose, not titles. These are some of the best leaders and they understand that great leadership is about leading with both your head and heart. They are intentional about creating win-win opportunities for the organization, the people, and customers. As a result, they have transformative cultures that exceed people’s expectations. Characteristics of Level 3 Energy The Harvard Business Review’s research states that, “Trust provides the opportunity to change people’s attitudes and beliefs, not just their outward behavior. That’s the sweet spot when it comes to influence and the ability to get people to fully accept your message.”

The SelfCookingCenter®. The perfect cooking appliance for all KFC kitchens. Newly approved for KFC. Your next generation oven – simplicity and efficiency at the push of a button.

To download a one page summary of all three energy levels, visit www.justinpatton.com.

For more information contact Paul Milione at: P.Milione@rational-online.com

neue_anzeige.indd 1

A K F C F Quar te rl y

Summe r 2017

19.06.2017 11:40:17

w ww. akf c f . c o m

Summary & Next Steps Everyone benefits when you hold leaders accountable for the energy they use to get results. You have no greater obligation than to take responsibility for the energy you show up with every day. You see and experience life based on the level of your energy. Therefore, if you want to live a happier life and lead better teams, you must raise the level of your energy. Taking responsibility for your energy does not mean you don’t value results. It is a testimony to your belief that how you get results is just as important as the results themselves. When organizations hold people responsible for the energy they show up with every day they: 1. C ultivate accountability throughout the entire organization 2. Transform organizational and team culture 3. E nhance the customer experience If you want to change your organization, you must start by changing and holding people accountable for their energy. That starts with you!

WITH

More employees now eligible for GED assistance

10 Questions All Leadership Teams Should Discuss 1. What energy level is demonstrated by most leaders in our organization? 2. What is the vision for how we want leaders to lead in the organization? 3. How do the processes we have in place enable or block our vision? 4. What expectations do we need to communicate across the organization? 5. How will we hold people accountable to those expectations? 6. What do we as a leadership team need to take responsibility for? 7. How are we currently rewarding bad behavior throughout the organization? 8. How much of the recognition we provide focuses on results versus the behaviors demonstrated to get the results? 9. How are we helping develop the character of leaders? 10. What recommendations would you make if you were a consultant brought into the organization to provide recommendations on how to develop better leaders?

Earn your high school equivalency for free and with the help of a personal coach! The 6 months minimum employment requirement has been eliminated. All employees in good standing at participating KFC® Restaurants are admitted. Get started today!

Only employees at restaurants participating in the Cole Slaw Donation Program are eligible. ©2017 Kentucky Fried Chicken Foundation, Inc. The Kentucky Fried Chicken Foundation is a non-profit, 501(c)3 organization.

Su m m er 2 017

A KFCF Q uar te rl y

E M P L OY E E T U R N OV E R

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

8 Smart Ways to Leverage

Turnover

Training and Minimize Employee

By Jim Sullivan, CEO Sullivision.com

Su m m er 2 017

A KFCF Q uar te rl y

E M P L OY E E T U R N OV E R

The foodservice industry’s turnover crisis is real: our annual hourly employee churn is now over 100%. I contend this rate is unsustainable for continued growth, untenable for manager tenure and unnecessary for forward-thinking operators. Simply put, if your labor strategy is focused solely on how to get the most out of people while paying them as little as possible, you’re playing a zero-sum game. So let’s consider how getting better at training results in lower turnover. I’d like to share a few best demonstrated practices to better engage and retain our new and veteran team members. Culture first, process second. “The only thing we have is one another. The only competitive advantage we have is the culture and values of the company,” says Howard Schultz, CEO, Starbucks. “Anyone can open up a coffee store. We have no technology, no patent. All we have is the relationship around the values of the company and what we bring to the customer every day. And we all have to own it.” The goal of an effective training program is to instill and align to company culture, not simply to infuse a

process. Rediscovering and redeploying the culture it was founded on is a key for KFC. Identify the keystone cultural behaviors that all team members should share at KFC (like empathy, teamwork, customer service, dignity, care, respect, communication, etc.) and redesign your internal training program to reinforce those skills. Determine first what you stand for and then what you should do to stand out. Questions are the answers. KFC franchisees should ask themselves a simple question to help solve the turnover crisis: “What kind of company would have employees fighting to get into it, not fighting to stay out of it?” Document the responses and incorporate those behaviors into your supervisor’s and teammates development program. Stay interviews. Ten years ago, the concept of “exit interviews” was all the rage, a process designed to assess why employees leave companies. Roy Hinojosa, a division president at Golden Corral, has a different perspective: “I think it’s much more important to

5 HOURS

SPENT TODAY

Washing wares by hand

2 HOURS

SAVED TOMORROW With the KAY® Machine Warewashing Program

Fast. Easy. Automated. Contact Ecolab today to find out how you can spend less time at the sink. *Manual and machine labor estimates based on time and motion studies conducted across average sized QSRs.

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

know, at regular intervals, why our people are staying with us. The more we understand what’s most valuable to them, the better we can provide more of that, and keep them with us longer. That’s why regular “stay” interviews, to me, are much more valuable than an exit interview.” Educate, don’t lecture. Take a good hard look at the tone of your operations training materials. Is the “voice” you’re using in your videos, materials, elearning and position manuals friendly or patriarchal in tone? Is there a subtext of caring or are you “talking down” in tone to trainees? Uncertain? Read a couple of pages out loud. You’ll know the answer.

Simple. Effective. Protection. 1 PRODUCT

CLEANS AND DISINFECTS

Kills Norovirus with 3 minute contact time*

Find out how Peroxide Multi Surface Cleaner and Disinfectant does more with less. Call 800-529-5458 in US or Canada or +1 336-931-2000 worldwide or visit ecolab.com/qsrmachinewarewashing or ecolab.com/Kay-Peroxide *For dispensed disinfectant at a dilution rate of 6 fl oz per gallon.

Su m m er 2 017

A KFCF Q uar te rl y

E M P L OY E E T U R N OV E R

Fix the disconnect. Do you sit new hires down with a RGM who pumps them up for 15 minutes about how awesome the company is and then send them off to HR for a few hours of paperwork that commences with a detailed checklist of all the ways they might get fired?

example, I would spend the first half-hour helping them understand the low profit margin in foodservice, then a half-hour each on how to suggestively sell and what to suggestively sell. Knowing why helps associates leap the learning-to-doing gap.

Blended learning. “Kids’ brains are being digitally rewired for change, novelty, excitement and constant arousal,” says Stanford professor Philip Zimbardo. “That means they’re totally out of sync in traditional classes, which are analog, static, and interactively passive.” Does that sound like your training program? Probably yes. The fact that the most popular YouTube videos average 2.5 minutes and that a top-ranked 30-minute TV show is designed in 7-minute long arcs should tell us all something about attention spans and audience engagement. Re-assess how you train your managers and hourly associates. Shorten your training materials. Instruct in chunks, or what I call info-nuggets, and please, skinny the monologue and fatten the dialogue. New employees learn best in teams and by doing, which is often the opposite of what most training does. Take a clear-eyed assessment of your current training program Your National Lighting Source and find ways to blend learning styles into it.

Y<W+H. This simple formula means we should first teach team members WHY a topic is important before we teach them What to do and How to do it. If I want a cashier to merchandise the menu, for

In business since 1926, we are here for all of your commercial lighting needs!

Tim at 860.670.3270 Tim.Kossbiel@CapitolLight.com Kevin at 860.670.4595 Kevin.Polley@CapitolLight.com

LIGHTING DESIGN SUPPLY LAMP REPLACEMENT LIGHTING & ELECTRICAL MAINTENANCE UTILITY REBATE SERVICES COMPLETE LIGHTING TURNKEY SOLUTION www.capitollight.com

A K F C F Quar te rl y

Summe r 2017

Eliminate bloat. Have you considered the cumulative labor savings to be had by culling your bloated or redundant training content? I don’t mean indiscriminate course-cutting but rather a measured and thoughtful assessment and determination of better ways to communicate with the way GenNext learns. One of the more popular presentations I do for foodservice leaders at conferences is called “Foodservice 2020: Five Big Changes & Five Big Obstacles We’ll Face in the Next Five Years” (see the free video at YouTube). The topic and content is compelling because it shares cutting-edge and best demonstrated practices in operations w ww. akf c f . c o m

today, while offering a realistic look at how technology will transform service, marketing, management and training tomorrow. I tell audiences that if you really want to understand what our business is going to be like in five years, don’t ask a futurist, or a scientist, or a physicist. Ask a middle school teacher. How we learn shapes every new generation and the better you align with the advances in teaching the better you develop your future leaders. Many foodservice brands have grasped the competitive advantage of transforming training to transform their teams. And they’re seeing lower turnover, higher tenure and happier customers as a result. So in that regard, the future is already here. It’s just not evenly distributed.

Jim Sullivan is a popular speaker at foodservice leadership conferences worldwide.You can get his training catalog of resources at Sullivision.com and follow him on LinkedIn,YouTube or Twitter @Sullivision.

With over 385 million square feet installed on restaurants and more than 80,000 warranted installs, restaurants across America trust the Duro-Last® roofing system. Duro-Last’s resistance to grease and harsh chemicals make it a durable solution that can withstand the toughest conditions.

Proud roofing partner of KFC®

Visit duro-last.com or call

800-248-0280

“Duro-Last,” and the “World’s Best Roof,” are registered marks owned by Duro-Last, Inc. “Hooters”is a registered trademark owned by HI Limited Partnership Hooters Enterprises, LLC Restaurant_CI_10.12.15_v1

Su m m er 2 017

A KFCF Q uar te rl y

BIG CHICKEN

A K F C F Quar te rl y

Summe r 2017

w www. ww. akf c f . c o m

The

BIG Chicken Comes Home to Roost By Paul Gereffi

he Big Chicken has a permanent home.

The Big Chicken restaurant has been a local landmark in Marietta, Ga., since its inception in 1963 as Johnny Reb’s Chick-Chuck-‘N’ Shake restaurant. KFC acquired the restaurant and building in 1974 and it became a popular and successful asset. After a $2.2 million restoration, it still stands today as a proud part of the KFC system and the local community. The iconic building and the revamped restaurant reopened in May 2017. The 56-foot-tall steel structure of the “big chicken” in front of the restaurant has a moving beak and eyes and is impossible to miss. KFC briefly considered tearing the structure down after it was damaged by a storm in 1993, but a public outcry prevented it. Located at 12 Cobb Parkway in Marietta, a suburb of Atlanta, the building retains its prominent place in the hearts and minds of residents.

Su m m er 2 017

A KFCF Q uar te rl y

BIG CHICKEN

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

The reopening of the restaurant was attended by variety of dignitaries, including the mayor of Marietta, officials from KFC, local media, a high school band, and even a Colonel Harland Sanders impersonator. “It went great. We had a solid line of customers from the front door to the registers the whole day,” said Michael Kulp, president and CEO of KBP Foods, owner of the restaurant. “Our sales have been up every week and we’ve received glowing comments from everyone.” KBP Foods, an Overland Park, Kansas-based franchisee, acquired the Big Chicken location as part of 53 KFC locations in 2011. The Big Chicken is one of two “hero assets” owned by KBP Foods. The other is a KFC/Taco Bell location in Overland Park. The whimsical restaurant is beloved by many residents of the area and they are happy to see that the building retains its uniqueness. Directions from residents to visitors often use the building as a point of reference, such as “turn left at the Big Chicken” and some nearby business include Big Chicken in their name. Airplane pilots even use it as a focal point to find a nearby airport. “Everyone had an emotional and intangible point of view about the Big Chicken and we felt a lot of that,” Kulp said. “It was a positive force.”

New!

* * * * SAVE TIME AND MONEY. * * * *

Su m m er 2 017

A KFCF Q uar te rl y

BIG CHICKEN

At The Big Chicken ribbon cutting ceremony: Marietta Mayor Steve Tumlin; Colonel Harland Sanders (impersonator); Brian Cahoe, chief development officer for KFC; Trip Vornholt, chief financial officer of KFC; Mike Kulp, president and chief executive officer of KBP Foods; and Kevin Hochman, president and chief concept officer of KFC.

According to Kulp, the reopening attracted many customers with intense feelings for the building. For example, one person had a Big Chicken tattoo, someone else got married there, even the grandchildren of the original owners made an appearance. “This is a special place to them and a lot of people weren’t just there to eat,” Kulp said. “Everyone had a story to tell.” KPB partnered with architectural firm FRCH Design Worldwide and Wieden + Kennedy, a media agency for KFC, to create the American Showman concept as part of a new design for KFC. The exterior features bold color blocking, authentic barn-like materials, and heritage accents based on the American Showman design. New, brighter lighting sharpens the view and many of the fixtures mimic the design of the iconic KFC bucket. Signage, flooring, and team member uniforms are also upgraded and customized. 38

A K F C F Quar te rl y

Summe r 2017

w ww. akf c f . c o m

EVERYTHING FOR

Your DRIVE-THRU

new $

NATIONWIDE INSTALLATION

SAME DAY SERVICE

BEST PRICE GUARANTEE

FREE INBOUND SHIPPING

• Drive-Thru Systems & Accessories

• Drive-Thru Listen-in Technology HD Audio System • Order Confirmation • Drive-Thru Timers • Digital Surveillance Systems

Call us today: 800-598-2370 or email us: sales@rftechno.com

DRIVE-THRU SURVEILLANCE AND ENTERTAINMENT SOLUTIONS www.rftechno.com

Su m m er 2 017

A KFCF Q uar te rl y

BIG CHICKEN

Best of Breed Video The KFC Corporate Recommended & Fully Supported Managed Video Solution Safeguard your assets and increase profitability across your stores with our franchisee-tested and fully supported managed video and loss prevention services. Protect your business, and your profits, with the only managed video solution recommended and fully supported by KFC Corporate.

Network Friendly

Corporate Approved

New Low Pricing

Our managed video solution is approved to sit on the YUM! Merit Network.

Envysion is the only KFC Corporate Approved & Supported video provider.

We are now offering discounted rates negotiated specifically for KFC Franchisees!

Make your data meaningful with video. Learn how at envysion.com | 877.258.9441

A K F C F Quar te rl y

Summe r 2017

The new digs include outdoor seating in front, side, and back porches on the building exterior that adds about 1,185-square feet to the dining area. Landscaping provides privacy for the 94 new seats. Inside the restaurant, approximately 2,440-square-feet allows seating for 98 guests, who can view food preparation in the kitchen as cooks prepare the Colonelâ&#x20AC;&#x2122;s famous fried chicken and other menu items. A statue of the Colonel holding a bucket of his famous chicken offers a photo opportunity for guests. In addition, photos and information on the walls lend a historical perspective about the Colonel and the KFC brand. Further, the Big Chicken features the most comprehensive beverage offerings of any domestic KFC, including PepsiCoâ&#x20AC;&#x2122;s craft soda line, Stubborn Soda, which pours out of a tap, and a Siberian Chill frozen beverage machine. The kitchen also offers a w ww. akf c f . c o m

specialized dessert menu. The beverage and dessert items are unique to the Big Chicken location and aren’t offered at any other KFC in the United States. The dining room also includes Wi-Fi and television monitors, encouraging guests to linger and enjoy the ambiance. Of course, many visitors want to remember their visit to the Big Chicken, especially if they are from out of town, so a retail area offers souvenirs to commemorate their visit. These include T-shirts, baby bibs, coffee mugs, caps, and even Big Chicken bikinis, among other items. “We’ve been selling a lot of merchandise, about $10,000 worth the first week,” Kulp said. “People are digging the merchandise offerings.” In keeping with the times, the Big Chicken has its own Facebook page and Twitter account, increasing its appeal to younger generations. “There’s a lot of energy and buzz about the Big Chicken,” Kulp said. “The sales lift is driving the investment and we hope to sustain that.”

Su m m er 2 017

A KFCF Q uar te rl y

Communications Report

AKFCF Communications Committee: Uniting Operators and Advancing Communications 6 By Kevin Schlutz

Mission Statement

The AKFCF Communications Committee is committed to providing multiple channels of 2-way information sharing to unite and advance the interests of its members. Great communications are important to every one of us, in our businesses and in our personal lives. Our need for current information is constant. Having the right types and forms of communication at the right time is crucial to getting a clear message or key piece of information conveyed and acted upon. Everyone’s needs or preferences in this regard vary. Whatever your preference, the AKFCF Communications Committee is using that communications channel with our mission of getting all essential information down to each operator in a timely, actionable way.

Who We Are

• The Communications Committee is chaired by the AKFCF executive secretary who records all the minutes for the Board, Executive and Convention committees, as well as other committees on request, and serves on the Executive Committee. • The administrative director of the AKFCF plays a vital role in maintaining the website and distribution lists. She works with the Quarterly editor and regional secretaries and completes needed surveys and Constant Contact, Executive Committee, Board, and convention communications. • The regional secretaries are key to maintaining communications by

A K F C F Quar te rl y

Summe r 2017

keeping their members informed and keeping their distribution lists up to date, both for members in good standing and a broader list. • The AKFCF Quarterly editor and assistant editor contribute a tremendous amount of time to communication in developing the themes, stories, proofing and editing the articles for publication in the magazines with a franchisee point of view. • The AKFCF executive director is also on the committee and helps coordinate with everyone else, especially the EC and other committees. To reach all franchisees and operators, communication must take many different types and forms to match the many different ways people’s lifestyles interact with communications.

Immediate Communication

Email blasts come from AKFCF directly, the regional secretaries distribution lists or the GAC’s Voter Voice. These can take many different forms, from informative to educational, from advertisments to warnings. Social media includes Facebook and Twitter links for tech-savvy members. Pop-up conference calls allow the EC or the Board to discuss urgent issues in a matter of minutes. Each Regional Secretary maintains distribution lists of email addresses for both franchisees in good standing and all

operators in their region to pass on information about regional meetings, reports from regional representatives, minutes of meetings, government affairs updates, benefits of membership, Town Hall calls and any other pertinent information of interest to their members. From these lists, the AKFCF (Deb Newton) creates a master distribution list that can be used for information about the convention, the AKFCF website, the AKFCF Quarterly mailing list and any other pertinent information – sometimes using Constant Contact. This list was used to develop distribution lists for the NPC and the NCAC. Also from these lists, the AKFCF (Deb Newton) creates and maintains specialized distribution lists for the Executive Committee, the Board of Directors, the Convention Committee, the regional secretaries, and various other committees as needed for communication of pertinent information. The AKFCF has Facebook and Twitter links for those that use those options. With its members spread all over the country and in other countries, the use of conference calls for immediate communication needs is crucial for the Executive Committee, president’s calls, Board calls and various committee calls. It works the same for the regions as they plan meetings or when the Board needs to act quickly.

Planned Communication

Our planned communication includes: AKFCF and regional association websites, Town Hall calls, president’s conference calls, web-based surveys, AKFCF Quarterly w ww. akf c f . c o m

magazine and web version, AKFCF Quarterly Resource Guide, AKFCF Quarterly e-newsletter, AKFCF year-round mobile app, AKFCF Convention, new franchisee orientation packets, new Board member orientation sessions, new EC member orientation, leadership development plans and workshops.

Websites

The AKFCF newsletter started n 1980. It evolved to the much larger AKFCF Quarterly magazine, professionally published, with a franchisee editor and one or more assistant editors. The content has also evolved into much more than it was originally. Besides the standard report columns of the president, the editor, the vice chair of the NCAC, the chair of the NPC, and the AKFCF counsel Legal Report, there are also various reports about technology, beverages, recent news, communications, and others. Then there are feature articles, written by contracted writers, covering items such as government affairs, international, recognition, volunteerism and many other subjects

AKFCF Year-round Mobile App

Everyone who used mobile devices has enjoyed using the AKFCF app for each of the last three conventions. The AKFCF year-round app is

Perfect Pour

w ty No ear rran -Y Wa

AKFCF Quarterly Magazine

highlights our vendor partners. It is also produced digitally and accessed from the AKFCF website. A monthly e-newsletter also now goes out monthly with news links and links to the website.

7 um cu Va

The AKFCF website is multi-dimensional and full of information. The public part of the website features the President’s Welcome, the history of the AKFCF, benefits of being a member, how to become a member, details of upcoming meetings, links to the regional websites and links to other KFC related websites such as the Quarterly online, RSCS.com and KFC. com. It also has a way for people to contact us with feedback or questions. The members only section of the AKFCF website offers members much more information such as the Articles of Incorporation, the Bylaws, a current listing of the Board of Directors, calendar, franchisee list, committee assignments, Board meeting minutes, a history of motions and resolutions and the strategic plan. Many historical documents have been posted in this section. There is also an area for blogs and a forum for franchisee discussions, plus many educational materials and tools for members to use. Each regional website also has a lot of similar information for its members and links to the other sites.

of interest to the members, according to the theme of that issue. There are also contributing writers such as Jim Sullivan and other acknowledged experts in fields of interest to the members to further enhance the informational and educational value of the magazine. There are also scheduled regional short stories and recognition of awards recipients. The magazine has four issues per year and the annual Resource Guide that

The

™

Your Preferred Supplier. Serving a variety of markets and usage requirements, Carbo Series bulk CO2 systems meet the unique demands of every customer. • Convenience: Eliminate cylinder change-outs

• Quality: Eliminate serving flat drinks • Safety: Provides safer gas management • Savings: Save on labor and lost residual gas over cylinders

Providing The Perfect Pour™ for over 30 years.

www.chartbeverage.com Your preferred AKFCF Bulk CO2 supplier.

Chart_Beverage_AKFCF_2016.indd 1

Su m m er 2 017

5/20/16 11:57 AM

A KFCF Q uar te rl y

Communications Update

live and information is being built by the various regions for their meetings as well as the national convention. It will be your one-stop shop for information on all AKFCF and regional meetings. The AKFCF app offers incredible possibilities for communication of many diverse types. Social media, member directories, sponsor and supplier information, staff contact information, experts on different topics, frequently asked questions, leaders and Board member contact information, links to the Quarterly and e-newsletter, opportunities to do surveys and provide best practices. The possibilities are endless for those that have and use mobile devices. The key is to keep the information up to date and to encourage all members to use the app. I would expect that in future months, we will see a tremendous amount of usage for this newest addition.

A K F C F Quar te rl y

Summe r 2017

AKFCF Convention

The AKFCF Convention is the ultimate communications tool. It brings the members together for fellowship, fun, education and information. It is the biggest visual evidence of the strength of our association and a testament to our culture and heritage. The Convention Committee works all year round to continue to improve and build on each year’s successful convention. Kris Stage, Kelly Rodenberg and Deb Newton provide the professional expertise needed to impress each franchisee, vendor partner or corporate partner attendee. A post-convention survey, either written or web-based, gets the necessary feedback to correct any possible opportunities and plan a better convention each year. The 2nd VP oversees the workshops and the 1st VP is in charge of the Town Hall meeting. Deb oversees the vendor exhibits. Kelly is key to overall production. Our Vendor Liaison Leslie Sharp works on vendor participation and sponsorships.

The EC, staff, Caribla liaison and vendor liaison form the Convention Committee and are supported by many other talented professionals from Chip Booth Productions, PSAV, Shepard, etc.

Conference Calls

Town Hall calls for members in good standing and joint calls with the NCAC bring clarity to subjects from KFC Town Hall calls and other correspondence. Members sometimes hear conflicting information and these calls allow the appropriate franchisee representatives from the AKFCF, NCAC, NPC, OEC, GAC/PAC and other committees to communicate with more detail directly with the members in as secure an environment as possible. Questions and Answer sessions after the speaker’s presentations allow for full disclosure and no confusion. Caller information is monitored to understand attendance by region and notes are taken to memorialize the content of the presentations. I want to thank all the members of the communications committee including the other regional secretaries, the AKFCF Quarterly editors, Kelly Rosenberg and Deb Newton for all their work in providing timely communications to our members.. So, in closing, the communications we all need to act on take many different forms and everyone has their favorites. Communications are a large part of the AKFCF’s purpose. Communications take many different forms and channels. Timely, actionable communications are critical to the strength of the organization. Communicating to the members what has been accomplished for them creates loyalty and a unified franchisee family. Driving communications down to every operator and back up from them to their representatives is a key goal. Coordinating communications from all franchisee representatives presents one clear voice to our members and KFC. We should never stop looking for new and better methods of communication. The power is in KNOWING. Please let us know if you feel our communications to you are timely and in the forms you need. Let us know how we might improve our communications to help you be even more successful. Send any comments or suggestions to the AKFCF Communications Committee care of kevin@centraliowakfc.com. w ww. akf c f . c o m

LIVE

Access the Online Resource Guide anytime. This online guide is constantly updated with up-to-date information for all your vendors.

www.lionhear tpub.com/akfcf Su m m er 2 017

A KFCF Q uar te rl y

E d u c a t i o n

Report

Education Committee Helps Franchisees Find Inspiration and Innovation 6 By Justin Stewart

A K F C F Quar te rl y

Summe r 2017

“

When I grew up as a kid, we always referred to my dad’s restaurant as “The Chicken Store.” Only now, after 30 years in this business, do I understand that we should have been calling it “The People Store.”

“

Over the past seven years it has been my pleasure to serve the franchisees of the KFC system as chair of your AKFCF Education Committee. One of the many things I love about this incredible brand’s franchisees is their passion to continually push themselves to be better and achieve more through innovative and/or inspirational workshops and speakers. When I grew up as a kid, we always referred to my dad’s restaurant as “The Chicken Store.” Only now, after 30 years in this business, do I understand that we should have been calling it “The People Store.” A place where people grow, learn, and develop into incredible leaders who can inspire one, 10, or thousands of people to achieve their dreams! I grew up experiencing this passion attending regional meetings with my father Larry Stewart — even before I was a franchisee. I witnessed firsthand how great training programs can change not only a brand’s direction but also how it can inspire people to achieve more than they ever thought possible in their personal and professional lives. It was because of those early training programs that I decided to get involved in this brand. Experiencing workshops such as Management Skills Training, Senn Delaney, and Gold of the Desert Kings, helped me realize that we are truly in the people development

business and not simply the restaurant business. It is common when I speak with franchisees around the country to be asked, “What new training workshops are out there?” or “Have you heard or seen this program or speaker?” The thirst for speakers to educate, motivate, and inspire us to achieve more is insatiable! Just like you, I am constantly looking for something new and exciting to

inspire me to achieve more and grow personally. Once you attend a class on leadership taught by Justin Patton or hear the motivating words of Steve Gillaland, you want to share this experience by exposing the people that work with you the same knowledge and inspiration that you have experienced. It is this reason I make it a priority to expose my people to as much training as possible. You never know what is going to inspire someone in your organization to catch that fire and move up to the next level, whether it is AUM, RGM, ARL, or more. One of the truly incredible training curriculums out there happens to be created and offered by our very own training department in Louisville. Over the past few years we have sent many of our people to the RGM Keystone and ARL Capstone classes taught in Louisville, led by Gina Maynard. Gina has truly created a powerful and immersive training curriculum that sets our RGMs and ARLs up for success in their professional lives as soon as they return home. These classes are also full of coaching and listening skills that will help them in their personal lives. Please make it a point to send your people to these classes; they will thank you! I would like to personally thank each and every one of the Education w ww. akf c f . c o m

Committee members for their service over this past year! Their incredible input helped create 10 workshops this year at our Austin, Texas AKFCF National Convention. This was the most workshops ever held at a Convention that I can remember and took a lot of time and work on everyone’s part. One of the benefits of being the chair of a committee is that you get to handpick who serves with you on that committee. It has been an honor serving with the following people over the past year – and with some of them over many years: Shawn Brady with Harman Management from the Northwest, Bob Widder from the Great Lakes, Rob Rianna from the Northeast, Jeanine Bagshaw from the Great Lakes, and our Executive Committee liaison Bryan Robinson from the Upper Midwest. I look up to and respect every single one of

them and will always be grateful to them for their valuable input and support! Believe it or not, preparation for the Convention workshops begins in June of the previous year! That means as you’re reading this, Rob Rianna, your upcoming chair, along with the Education Committee are already working on the 2018 Anaheim, Calif., convention workshops. I have worked with Rob for many years and know that this committee will be elevated to new heights through his leadership and that our workshops will be better than they have ever been! I would be remiss if I didn’t express my gratitude and thanks to the training department at KFCC led by the extremely talented Dr. Kathy Gosser! We are very blessed to have the people at the Restaurant Support Center working on our behalf.

Lauren Taylor and Michelle Lovan are the two people that help us schedule, coordinate and plan down to the smallest detail everything about our KFCC presented workshops. They arrange our content reviews in Louisville, room set ups at convention and make sure that all presenters are kept on task to hit our timelines. We couldn’t do all this without them! Lastly, I would like to thank our Executive Director Kelly Rodenberg for all her help coordinating our travel and Kris Stage for the onsite convention hotel set ups and A/V requirements. I have truly cherished working with all of you and thank you all for your support over the years! Thank you, Rob, for taking the reins and leading us into the future of what the Education Committee will be! I look forward to it!

Su m m er 2 017

A KFCF Q uar te rl y

N.E. Regional Short

Golf Tournaments Take Swings for KFC Foundation 6By Joe Farley

During the Northeast Spring Convention planning meeting in 2016, Dale Moulton and I discussed resurrecting a golf tournament before the event. We had heard the desire to have a tournament from members and our vendor partners at previous meetings. While discussing the idea we quickly realized that this event had to mean something. We knew we could enhance our KFC family and others! What better way to help the KFC family then having the tournament benefit the KFC Foundation?

First, we approached Charlie Sullivan from Pepsi about the idea, and without hesitation he was on board. Pepsi came through donating all of the soda and water as well as chips, player bags and two Pepsi golf bags. We asked many of our other vendor partners for help in making this a successful event and they were eager to help. Ed Smith from Dr. Pepper donated player prizes, Jeff Zollshan from Transact Technologies sponsored the Long Drive contest, Russ Craddock from McLane gave us divot tools, and many vendors

sponsored tees. We invited our own Colonel Joey Owens to travel the course and take photos with players. To make the tournament even more fun, we added a $10,000 prize if someone made a hole-in-one. The first event was held in Atlantic City at the Renault Winery Resort and Golf Club. I still wish to thank all of our players; it was a brutal day to play golf. The high temperature was only 55 degrees with 30 mph winds gusting up to 40 and 50 mph made it bitter cold and difficult to shoot. Being our first time (in decades) we only had 30 players. Despite the tough conditions and a low turnout, we came through with a $5,500 donation to the KFC Foundation.

Let’s Do It Again!

John Arsenault, Col. Joey Owens, Dave Hines, Steve & Sally Glick pause for a quick snap at the Renault Winery Golf Course outside of Atlantic City, N.J.

A K F C F Quar te rl y

Summe r 2017

Our second tournament was held during our fall meeting at Hyatt Grand Cypress “New Course” which was designed after St. Andrews in Scotland. This event was a home run; we had 60 players! Almost all of the vendors from the first event came back. At this tournament we raised and donated $10,000 to the KFC Foundation. Our cumulative total, for the two events is $15,500. Debbie Rollins from the KFC Foundation was on hand at both events (we were shocked she returned after freezing in Atlantic City!), and we w ww. akf c f . c o m

presented her with a big check during the awards ceremony.

What We Learned

Our fall golf tournaments exceed spring tournament because in spring we focus on the restaurant general managers. Going forward, we are building this into our agenda. The event has become a highlight for so many franchisees, sponsors, KFCC partners, and the Foundation. Eventually, we may try to incorporate it into our spring convention; however the challenge is asking folks to come one or two days early. Taking RGMs and Above Store Leaders out of the market is all but impossible. Additionally, our fall event doubled attendance.

Joe Farley and his son Troy Farley pose with Col. Joey Owens in front of a sign advertising the KFC Foundation.

Fall 2017 Tournament in the Works

Dale Moulton and I have already started planning for this fall. This year our fall meeting will be at the beautiful Hyatt Grand Regency, Coconut Point in Bonita Springs, Fla., on Nov. 7. The Raptor Bay Golf Club, which is immediately adjacent to the hotel, will be hosting the tournament and festivities. We believe this year will be even bigger. Dale and I are hoping get the KFCC Leadership Team to play this year (hint, hint, Mr. Hochman). Additionally, we appeal to the KFC Franchise Family from around the country to come and join us in beautiful, warm, sunny Florida as we raise even more money for the Foundation.

The “Big Check,” presented by Dale Moulton, Joe Farley, Debbie Rollins (representing the KFC Foundation), Charlie Sullivan and Jill Weichert.

We’ll Keep Golfing!

Oh, Florida is too far to travel, you say. Never fear, we are planning a September 2018 tournament in conjunction with our fall meeting, which will be held at the Marriott on the Falls in Niagara Falls, Canada! (“Eh, Linn Free, you bringing the Poutine!”) During that convention, I will be the Northeast president. Dale Moulton will have moved on to immediate past president, while Denise Springer will be first vice president. We promise you an amazing meeting plus a phenomenal golf tourney at this gorgeous wonder of the world. Who will win? You, for attending, and the KFC Foundation for the funds we raise.

Debbie Rollins and Col. Joey Owens keeping an eye out for a $10,000 hole-in-one winner at the Renault Winery tournament. The high winds overpowered the precision golfers and the prize remains for another day. Su m m er 2 017

A KFCF Q uar te rl y

R S C S

Member

Programs

Have You Tried the New RSCS Equipment Ordering Website? 6 By Rich Bingham

Have you tried the new equipment ordering website lately? RSCS has been hard at work updating our site. We’ve taken your feedback and made several enhancements including improved search functionality. Plus you can now check order status online! This can all be done from your PC, smart phone or tablet 24 hours a day!

Top Recent Enhancements • Improved search functionality including drill down capability to find items. • Order Status feature for all orders (not just web orders!) Get estimated ship dates prior shipping and actual once it does. • Order Tracking Functionality Track all orders (not just web orders) with dates and signatures. • Create your own favorites page for quick reference and reorders. • See recently viewed items for quick reference.

A K F C F Quar te rl y

Summe r 2017

• Items have images, updated descriptions and spec sheets that can be viewed and downloaded. • Quick search, quick ordering, and tracking options for all items and orders. • Alternate ship to addresses can be setup by customer preference.

What Are Our Customers Saying?

“I really am enjoying working with the new RSCS equipment ordering website! After adding all the items that I normally order on a regular basis to the “favorites category,” it’s a breeze to go in and order for a store the equipment that they need. The tracking feature has been the best part so far. No more sending emails and waiting for someone to get with the manufacturer, then get back to me. We are all busy, and I can get back to the store so much faster with this feature. Having the cut sheets right there has definitely been a plus as well.

I am looking forward to all the enhancements that they are making as they go through this learning process and am excited to continue the journey with them! Way to go RSCS team!” – Donna Walters Equipment Purchasing Manager with Tacala, LLC

Please look for communications about future webinars that will highlight the website functions and review these new enhancements. Visit www.rscs.com/ EquipmentOrder to start shopping and to get the current status of all your orders online.

w ww. akf c f . c o m

A Snapshot of Our New Search Page

Su m m er 2 017

A KFCF Q uar te rl y

Executive Director U p d a t e

Another Year, Another Convention, Another Laugh 6 By Kelly Rodenberg

This summer, the AKFCF Convention Planning Committee will be heading to Anaheim to begin brainstorming ideas, developing agendas and planning for the 2018 Annual Convention. Since March, we have been working closely with the Anaheim Marriott, and the Convention and Visitors Bureau on a number of items in preparation for the initial committee meeting. Event planning is one of the most stressful and exciting jobs out there, especially when you’re working on an association convention the size of ours. You come across challenges every day and work to solve them no matter how big or how small. Like with any position, every now and then you need to sit back and find the humor. For those of you who assist in planning meetings for your regions or your stores, you may be able to relate to these common issues known as budget constraints, deadlines, hotel contracts, room temperatures, PowerPoints and hotel food and beverage. As owners, partners and leaders, we often feel like we’re a broken record and are stuck on an endless loop of acronyms and go-to phrases. Here are a few banters that I have year after year that still allow me to laugh out loud: • “You want to add 200 more people to the event, but you are not giving me any more money in the budget?” Hot dogs all around. 52

A K F C F Quar te rl y

Summe r 2017

• “You don’t have Wi-Fi in the ballroom? But you can provide it for an additional $6,000?” It’s 2017! Every other business offers free Wi-Fi! • “You don’t have a name badge. I’m so sorry; let me print one out for you.” Well that’s what happens when you don’t register in advance. • “$10,000 for electrical services?” I could power a small town for that…for a year! • “Wow, one gallon of coffee is only $95!” A personal Barista should come with that. My Go-To Phrases: • I don’t think that is in my budget. Let me check again with my committee. Nope, that is definitely not in the budget. • Are you kidding? • Is that negotiable? • Did you even look at the contract? • This is so not how it looked on the site visit. • How are we doing on time? What time do you have? Did you see the choir? Where’s the choir? • Let the KFC president know he has 5 minutes left before break. We have to wrap up. Flash “time to close” on the downstage monitor now. Kill his mic. Go to video. OMG, he’s still talking! • Not ready for doors, DO NOT open the doors.

• Did you just say you are out of Bacardi – Umm, NO, that is not an option. • Has anyone seen Chris Fowler? • Is the banquet captain monitoring the intake of Miller Lite by Don Bowling? • Where is he going with this keynote address? That’s not what we discussed on our planning calls. • It’s too hot, please have the room warmed up. Sorry, they just complained it is too cold. • Bring down the temperature. • Please send engineering to the room. • Well, if you say that photo is current, I’ll use it. But that headshot looks like your high school yearbook photo to me. • And in the end, my responses usually are: • I will make it work. • Will do. • Sure, I can make that happen. • No problem. “I’ll give it my best” is probably another mantra we state when people throw impossible tasks at us. Luckily my staff and I have superhuman powers and can usually make the impossible possible. Like many of you, I’m addicted to making it all happen. There is nothing like the energy of a live event and ultimately seeing your vision come to life. I look forward to planning and laughing with the committee again this year. w ww. akf c f . c o m

B u s i n e s s

Cards

Ranked the BEST Waste Oil Carrier For 28yrs!

BUY DIRECT! 6 Models & Parts

800-533-5711

Shortening-shuttle.com

Include your business card ad in each issue of AKFCF Quarterly

Advertising contacts: (A-K) Aileen Kronke (L-Z) Sharon Baker 678.293.5201 813.852.9942 aileen@lionhrtpub.com sharonb@lionhrtpub.com

Have you booked your 2017 advertising? Secure your spot in AKFCF Quarterly. Contact your ad representative today for more information or to receive your copy of the 2017 Media Kit! Advertising Contacts: (A-K) Aileen Kronke 678.293.5201 aileen@lionhrtpub.com

2017 RESOUR

CE GUID

A COMP

REH

ENSIVE GU ACC OUN TING and IDE TO PRO • BENE COM PUTE DUCTS & FITS , INSU R SYST RAN CE, • CON EMS SERVICES • DIMEN ETC. • ADVE RTIS FOR AKF TS • C BEVE RAG • DIST ING/ PUB ONSTR RIBU CF ES & BEVE LIC RELA UCTIO RAG E SYST SYST EMS TORS • DRIV N & RE TION S MODEL E-TH RU • EMS • • EXHA ADVE RTIS ING • TECH NOL • LIGH COU NTER EXTE ING/ PUB TING , INDO UST VENT ILAT OGY • SYST EMS LIC RELA ON SYSY HEAD SETS R I O R • I N • POS OR/O UTDO • CHIC TION S TERIOR TEM S SUPP LIES KEN SUPP OR • • ORD FOU NDAT • • • REST FINA R ER CON MEN UBO • POS LIER S ION NCIA L AUR ANT FIRM ATIO O O F I N G • /REG ISTE • ARD S • CLEA SERV ICaE AIR CUR S E AT I N EQU • FRYE NING & • MUS N SYST RS/B OH S & FINA TAIN S G & DÉ SANI TATIO EMS • IC, MES R EQU IPME IPME NT • EQU IPME NCIN COR • SAG AWN INGS SYST EMS BREA DING G • N SUPP and STOR NT • CRE NT • ING, INTE FLAG POLE LIES & D I T, HVAC AGE • & SIFT ING & SOFT WAR E • TIME RCO M PRO GRA • ICE RS • WIND D E B I T a n d S/FL AGS RECO GNIT STEA MER • OUT • PRIN MAC HINE MS MAC HINE AT M P R DOO TING S • TOAS ION • • OWS S R DÉC OR, FLOO RING /MAI LING OCESS S • OVEN • BUFF • ENER SUPP LIES SAFE TY, TERS ING PLAY GRO ET CAB SERV ICES GY MAN SECU RITY • HUM S • PACK • • SIDE INET S UND S AGEM AN RESO & REST ITEM S • PRO & SUR VEIL WAR MER S STAT IONS • COO • PACK AUR ANT • REFR URC E SOLU ENT MOT IONA • BEAN LANC E KING COM AGIN G, SUPP LIES IGER ATIO • REFR S • BUFF L PRO DUC TION S • BULL BAG S, PUTE RS IGER ATIO N, WAL ET PRO ET RESI • TIME LINE RS, TS/L OGO and TIME K-IN COO N, WAL DUC TS STAN CE & LABO WRA PS WEA R RS K-IN LERS • DESS R MAN • CCT/ • REAL COO LERS • DISH • BUFF AGEM ENT ERT • SUR VEIL WAS HERS ESTATE ET CAB • REPL FREN CH SOLU TION LANC E INET S ACEM ENT • FREE FRIE S • VIDE S • UNIF • • MAC ZERS REST O PART S INTE GRAT ROO M ARO NI ORM S, • SHEL SUPP LIES ED SYST & CHE ESE NON -SLIP VING EMS • SHO ES, • REW • SHO RTEN ARD S and NAM E BAD SIGN AGE – INTE ING MAN RIOR & GES • AGEM ENT EXTE RIOR WAL LCO & VERI NGS • SMA LLWA RES • WAS TE RECE PTAC LES

(L-Z) Sharon Baker 813.852.9942 sharonb@lionhrtpub.com

Su m m er 2 017

A KFCF Q uar te rl y

Legal Update

Season of Transition 6By Ron Gardner

New KFCC Leadership I wrote my spring AKFCF Quarterly column on March 17, 2017. Three days later, we got word of Jason Marker’s sudden resignation and the transition to new leadership at KFCC. Since that time, Kevin Hochman has been the president of KFCC – and is doing a fantastic job of leading, maintaining our culture of collaboration, and acting with common sense and logic. While I am certain that significant differences in the leadership styles between Jason and Kevin will emerge, I have been extremely impressed thus far with Kevin’s desire to learn, to consider the pros and cons of all of the decisions he is being asked to make, and to genuinely seek franchisee input as part of the information he collects to make those decisions. For those of you who have ever interacted with him personally, you know that Kevin is an amazingly transparent individual who calls it like he sees it. He is not afraid to make tough decisions, but he is determined to gather as much information as possible before making those decisions. I am excited for Kevin’s leadership and for what 54

A K F C F Quar te rl y

Summe r 2017

“

sense of collaboration to our meetings. Here’s to the future!

“

Someone much wiser than me once said, “The only constant is change.” Looking back over the last quarter, the insight of that comment has never been more meaningful to me.

The only constant is change... here’s to the future!

the future will bring as he continues to lead this great brand. Of course, other changes have been made as well. Trip Vornholt continues to keep a steady hand on the tiller as he moves forward as CFO and as the overseer of operations. Most impressive to me has been Trip’s embrace of the Restaurant Economics Committee, as that group is preparing to do a “mini-econometrics study” in order to fulfill its obligations to keep its finger on the pulse of the profitability of the units within the franchise system. Other members of the leadership team continue to support our brand as well. I believe that Melanie Bootes, Brian Cahoe, John Kurnick, Chris Caldwell, Vijay Sukumar and Phil Klezmer are all adapting in the new environment and will continue to bring a

Renewals As I mentioned in my last column, KFCC is in the throes of trying to renew nearly 1,100 stores whose agreements expired on June 1, 2017. While the process has not gone without a few hiccups, it is, for the most part, being handled in a professional, organized, and – given the size of the job – efficient manner. We have gotten a few reports of people receiving the wrong documents or not being able to accurately determine whether the Contracts and Facility Committee have approved the documents they are being asked to sign. Of course, as we always advise, you should get your own legal advice if you have questions. However, as a general rule, read through the documents, make sure that they are for your stores and that the dates and requirements that you are being asked to agree to line up with what you believe to be true. You can then go on the AKFCF website, in the Members Only section, and review the documents that we worked on with KFC and the NCAC Contract and Facilities Committee to approve for your signature. If, by chance, you happen to find an error in your documents, let KFCC know. They will correct those errors. Additionally, if you receive documents that are not up w ww. akf c f . c o m

on our website and need some confirmation about whether or not you should sign them, feel free to contact me.

advertiser INDEX

Page ADVERTISER

ASAP Since Convention, KFC and the NCAC Contracts and Facilities Committee (that includes both myself and the AKFCF president) have been working on ways to “jumpstart” the ASAP program. If you attended the Town Hall call on Monday, June 19, you learned that KFCC is in the process of testing a couple of different potential programs to expedite and simplify the ASAP remodel program. While we are in the very early stages of getting those tests off the ground, it is everyone’s hope that by late in the fourth quarter of this year, we will be in a position to determine whether or not any of these alternates are working, and if so, how they might be expanded to include more people in the system. Meantime, if you are working with LendLease on your remodels, we encourage you to continue on that path. If you encounter significant difficulties, let us know so that we, along with our KFC partners, might help facilitate solutions.

New AKFCF Leadership As you may or may not know, July 1 is a significant date every year on the AKFCF calendar. It is the date that we change from one president to the next. I am excited for our coming year and for the opportunity to work with President Eric Overcash as he leads this great organization. Eric has been a thoughtful part of our leadership team for several years, and I am sure he will bring that same sense of thoughtfulness to his role as president. I am going to greatly miss the insight and wisdom of Chris Fowler, as his term as immediate past president comes to an end and he leaves our executive committee. There are few individuals who have as much integrity as Chris, and his common sense approach to problems in dealing with KFCC on critical issues gave us all the opportunity to learn at the feet of a master. Finally, as he moves from his role as president into the role of immediate past president, I send a specific thank you to Greg Atwell for an absolutely tremendous year. Greg’s attention to detail, his dogged advocacy for franchisees, his curious nature, and his willingness to jump in and help on any project made him an asset to members of AKFCF in ways that you will probably never appreciate. I am thankful for my front row seat to his presidency, and most importantly, for the friendship that we have developed over the last couple of years. We all owe a great debt of gratitude to both Chris and Greg for their service as presidents – a gratitude I’m sure we will extend to Eric over the course of his presidency as well.

51 American Security Products

25 Auspex Capital

38 Café Valley Bakery

32 Capitol Light

43 Chart Industries

C2 The Dallas Group of America Inc.

5 DelaGet

C3 Dr Pepper Snapple Group

33 DuroLast Roofing

30, 31 Ecolab Kay Chemical Company

40 Envysion

53 FSV Payment Systems

9 Gycor International

15 HME

27 KFC Foundation

41 Koch Foods

23 NDA Inc.

3 Pacific Premier Franchise Corporation

1 Pepsi Cola

47 Pilgrim’s Pride

19 Procter & Gamble Distributing

39 R.F. Technologies

37 Rapak

26 RATIONAL USA

6, 7 RSCS

44 Sprint Wireless

14 Welbilt

C4 Winston Industries

53 Worcester Industrial Products

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.

Su m m er 2 017

A KFCF Q uar te rl y

L o o k i n g

A K F C F Quar te rl y

Back

Summe r 2017

w ww. akf c f . c o m

Su m m er 2 017

A KFCF Q uar te rl y

the

FLEXIBILITY

of size and ease Cook 18-head vs. 16-head per batch in less space. Convert easily to open fryers.