THE
THE MAGAZINE OF FRANCHISE BUSINESS SERVICES
Mark Jones B:11.5”
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discusses surviving the difficult business environment in the Franchisee Spotlight PAGE 12
Franchisees developing policies for coronavirus vaccinations PAGE 14
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All of us at McLane Foodservice would like to extend our well wishes to the entire BUFFALO WILD WINGS franchise community, their businesses, and especially their families during these trying times. We look forward to coming through COVID-19 and building on our strong partnership for the future.
©2021 McLane Company, Inc. All rights reserved.
TABLE OF CONTENTS
2021 Issue 1
FBS Board of Directors Wray Hutchinson Chairman Mark Jones Vice Chairman Jenny Beaudoin Director James Bitzonis Director Brian Carmody Director Steve Grube Director Roz Mallet Director Bobby Pancake Director Larry Podlogar Director Christy Williams Executive Director
FBS Editorial Board Sean Ireland Editor-in-Chief seani@myfbsonline.org Rachel Jackson Managing Editor rachelj@myfbsonline.org Savannah Daly Associate Editor savannahd@myfbsonline.org
Advertising Sales Jeff Reynolds Director of Business Partner Relations jeffr@myfbsonline.org 678-797-5163 Montserrat Almaraz Sales & Development Manager montserrata@myfbsonline.org 678-439-2284
Design and Layout Kristen Thomas KT Graphic Design ktgraphicdesign@gmail.com
ON THE COVER
The Bee Gees “Stayin’ Alive” is the iconic song of the 1970s, but today it’s the reference point of Franchise Business Services Vice Chairman Mark Jones when it comes to the difficult business environment caused by the coronavirus pandemic. Read more from Jones about brighter days ahead in this issue’s Franchisee Spotlight on page 12.
COLUMNS 2
Chairman’s Column
DEPARTMENTS 4
FBS Member News
10 Look, Listen, Read
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Event Calendar
11 One Topic: 10 Facts
6
Recognitions
12 Franchisee Spotlight
FEATURES 8 Buffalo Wild Wings Foundation: On a Mission to Support America’s Youth 9 Spotlight on the 117th Congress: Sen. Susan Collins (R-ME) 14 Calling the Shots: What You Should Consider Before Implementing Vaccine Policies in Your Restaurants by Savannah Daly, FBS communications coordinator 16 New Tech in BWW System Focuses on Improving Off-Premise Experience by Sean Ireland, FBS director of communications 18 In the Starting Gate of a New Race, Will You Rise to the Challenge? by Bobby Pancake, High 5 Hospitality 20 Take Control of Your Internal Controls by Stacy Smith, Mize Restaurant Group 22 What Workplace Changes Can We Expect in the First Year of President Biden? by Douglas H. Duerr, Elarbee Thompson 24 Why Do You Do What You Do? by Dennis Snow, Snow & Associates Inc. 26 Measure Progress and Consider Adjustments by Dan Coughlin, The Coughlin Co. 27 Making the Right Choices: Five Observations About Intuitive Vs. Analytical Decision-Making by Laura Stack, The Productivity Pro®
DIRECTORIES 7
Associate Member Listing
28 Advertisers Guide and Editorial Calendar
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From the Chairman t Franchise Business Services (FBS), we, like NFL teams, have our own specialists who do important work as part of our government relations efforts. For the last four years, under the Trump administration and its business-friendly policies, we haven’t needed their talents as much as we have in the past. But now, with the new administration, their work will be more important than ever.
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In just a few weeks since taking office, the Biden administration has given us ample evidence of the new direction it’s taking on labor and workforce issues, from nominating a former Boston union official to be secretary of the Department of Labor to pushing for a federal minimum wage of $15 per hour and elimination of the tip wage. Our businesses are facing a deluge of potentially detrimental legislation and policy making. After all the difficulties we have faced in the last year due to the coronavirus pandemic, these hurdles will slow our recovery and make the nation’s business environment even more inhospitable. We are very fortunate to have James Bitzonis, Roz Mallet and Bobby Pancake – all three Buffalo Wild Wings® franchisees – on the Government
Relations Committee. Misty Chally, vice president of government relations for FBS, rounds out this roster of all-stars who will be working to help our elected officials understand the impact of the proposed policies on our sports bars. For those who may not know, let me introduce you: James Bitzonis operates Four M Franchising LLC and has been with the brand since 2004 as its metro area New York franchisee. He holds a law degree from Quinnipiac University. Roz Mallet has been a BWW® franchisee for more than 10 years with PhaseNext Hospitality and has worked tirelessly on government affairs throughout her career. She is a former board member and chair of the National Restaurant Association, the largest food-service trade association in the world, representing more than 500,000 restaurant businesses. Bobby Pancake of High 5 Hospitality is another longtime BWW franchisee. His award-winning company recently earned Franchisee of the Year recognition from Buffalo Wild Wings, and he has been a longtime member of the board of directors
of the Delaware Restaurant Association, including a term as chairman. Misty Chally, based in Washington, D.C., has worked in the political arena for more than 25 years, and she has experience managing congressional and presidential political action committees, leading state government affairs efforts and testifying on behalf of small-business owners on issues including taxes, labor and health care. The work this outstanding team is engaged in will be critical to our success in the months and years to come. Additionally, our FBS team collaborates with the government affairs team at Inspire Brands to monitor legislation and help lawmakers understand the issues that make such a difference to our teams and businesses. With narrow majorities controlling both houses of Congress, just a few votes can be the difference in the passage or defeat of legislation, and their work can help tip the scales. That said, their efforts would be fruitless if they did not have teammates willing to execute the blocking and tackling around them. That’s where the rest of us play a role. Our Government Relations Committee keeps FBS members informed about important issues with regular legislative updates sent via email. When your help is needed, the team sends Action Alerts asking you to contact your members of Congress for support. With just a few clicks of a mouse, you can send a message to your representatives in Washington, D.C., and help our team’s specialists make game-winning plays for all our businesses. When they call a play during this important legislative season, let’s make sure we’re all executing it successfully.
Wray Hutchinson
MEMBER NEWS
Wings of Minot Provides Water Cups to Schools During the Pandemic T
he COVID-19 pandemic has affected people across the nation in many ways, but there are many small effects of the pandemic that might not immediately come to mind. The school system in Minot, North Dakota, faced a problem when children returned to school in its district. Due to their high-touch nature, water fountains in schools were closed in accordance with Centers for Disease Control and Prevention and state guidelines, leaving water bottle-filling stations as the only way for students to get water. According to Minot Public Schools, kids do not always have access to water bottles to bring to school, or they just simply forget them. Thankfully, Wings of Minot franchisee Dani Reichenberger saw this as an opportunity for her Buffalo Wild Wings® restaurant to help. The team donated hundreds of plastic cups to the school system for students to use. “Anything we can do to help them during this time would be great for them and make their lives a little bit easier,” said Reichenberger in an interview with a local news station. After making the first donation of cups to an elementary school, Reichenberger made a Facebook post encouraging other business owners to get involved as well. “It just kind of took off,” she said. A local State Farm insurance agent also stepped in and donated reusable bottles. Many of the BWW® staff members have children in the school system who felt extra special when their parents came to make the donations. South Prairie School thanked the businesses on its Facebook
Staff members from the BWW in Minot, North Dakota, made donations to local schools.
page with a post that read: “It’s so nice to know that our students always have something to drink water out of! Your generosity is greatly appreciated!” So far, Wings of Minot has donated 1,200 cups to five different schools for a total of 6,000. The company hopes to continue the program and branch out to its other two locations in Williston and Dickinson, North Dakota, as well. S
Anderson Management Donates Wings to Local Health Care Workers
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A
nderson Management, operator of seven Buffalo Wild Wings® restaurants across the state of Montana, spent its holiday season giving back to heroes in its community. David Moorhead, director of marketing and finance for the group, had some general managers approach him with the idea of donating wings to nearby hospitals. “It was great to see their enthusiasm about giving back to the community,” said Moorhead, who made the calls and arranged several donations.
On Dec. 3, Moorhead visited Advanced Care Hospital in Billings, Montana, and delivered wings to the staff there. Later in the month, Marcus Miller, general manager at the Great Falls B-Dubs®, took a special delivery to the nurses and staff at Benefis Health. Lauren Lokken, general manager for the Missoula restaurant, took wings to Community Medical Center in Missoula. The team members were excited to spread holiday cheer to these employees during the coronavirus pandemic. S
MEMBER NEWS
Cleveland Restaurants Participate in First-Ever Cleveland Wing Week F
rom Jan. 25-31, people in Cleveland, Ohio, enjoyed wing specials from their favorite local restaurants as they celebrated the first-ever Cleveland Wing Week. The idea, which was described on the event website as “seven days of paying homage to the wing,” was suggested by a local alternative magazine. All of Franklin’s Management LLC’s BWW® locations participated in the event along with many other restaurants. Cleveland’s Scene Magazine began doing specialty food weeks in 2018 to help local businesses highlight products that customers love. Colleen Flowers, director of marketing at Franklin’s Management LLC, has a friend who works for Scene Magazine and presented her with the opportunity. Because of the strong reputation that Buffalo Wild Wings® has in northeast Ohio, the company’s team thought this was a great chance to showcase its wings in the community. Throughout the week, BWW offered a special of six wings for $5. Guests could enjoy the deal for traditional or boneless wings with any sauce or dry rub. Due to the pandemic, B-Dubs® made sure to include the deal on takeout orders as well. “There are guests who remain hesitant about dining inside restaurants, and we did not want to exclude anyone from taking advantage of this special offer,” explained Flowers.
Four M Franchising Server Saves Guest From Choking
M
Over 1,000 orders were placed at all the northeast Ohio locations that participated, totaling over 6,500 wings. Flowers noted that the sports bars saw great sales lifts on orders where guests made a wing week purchase. “In the competitive Cleveland wing environment, partaking in events like this are essential,” said franchisee Jerry Franklin. “Scene Magazine appeals to a demographic that may not be familiar with who we are, making this an ideal opportunity for us to reintroduce B-Dubs to a new generation of wing lovers.” S
Regaining guest confidence together. Advancing cleaner, safer practices TM
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Learn more at www.ecolab.com/sciencecertified ESC_AD1.indd 1
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anuel “Manny” Romo has been a server at the Buffalo Wild Wings® in Westbury, New York, for seven years. His most memorable day on the job may have been Dec. 28 when he saved a guest’s life. The customer was choking, and Romo came to the rescue by performing the Heimlich maneuver. Romo is considered loyal, honorable and courageous by his teammates, and this Manuel Romo holds up a certificate and noble act proves those impressions correct. gift cards given “Manny’s knowledge base and expertise to him by Four M have helped groom many team members,” Franchising to show said Juan Feliciano, area director for Four appreciation for M Franchising, owner of the restaurant. saving a choking “However, in this action, someone who guest’s life. was willing to put the safety of another first before their own is outstanding.” The Four M team recognized Romo in front of the restaurant staff with a certificate of accomplishment and $100 in American Express gift cards to show appreciation for his life-saving effort. “Manny has been instrumental to the growth and culture of our restaurant here in Westbury,” said Feliciano. “His leadership and consistency have helped Westbury to thrive. He has had a positive impact on every team member that works here, and everyone goes to him for advice.” S
Cleveland locations offered a six-for-$5 wing deal to guests during Cleveland Wing Week.
10/23/20 2:33 PM
MEMBER NEWS
Four M Franchising Donates Art Supplies to Chelsea’s Charity
L
ast fall, the Buffalo Wild Wings® in Danbury, Connecticut, celebrated a special member of its community. Chelsea Phaire may be small, but her heart is mighty. Phaire started a nonprofit, Chelsea’s Charity, on her 10th birthday, when, in lieu of presents, she requested art supplies to donate to children in need. Her mission is simple but heartfelt: to support children and help them know that art is a start to healing, expression, communicating and much more. Since she created her charity in 2019, over 7,400 art supply kits have been delivered to children in need. On an evening last October, the BWW® restaurant and team in Danbury had the pleasure of hosting a dinner for Phaire and her family. The restaurant, owned by franchisee Four M Franchising, was excited to show support for Phaire and her organization with a donation of $500 of art supplies to be used to make more kits for local community members in need. In the past, Phaire has donated to children in foster care, shelters, schools, hospitals, mental health facilities and more. The team also provided her family with a gift card and some B-Dubs® swag items. “Chelsea is sweet, smart and charming and has the natural ability to speak to the masses. The caring nature and drive to help those in need runs deep in this amazing family,” said Shona Burguiere, area director for Four M Franchising. When visiting for dinner, Phaire and her mother told stories
Chelsea Phaire and her family were welcomed to the Danbury BWW for a meal to thank them for their work for the community.
about the donations they’ve made and the responses they’ve received. Chelsea loves receiving artwork from the children that have received kits. “We loved having the Phaire family come to our restaurant so that we could celebrate Chelsea and let her know that we appreciate and applaud the charity work she is doing,” said Burguire. “I was truly blessed to spend time with this dynamic family, and I walked away from the evening with a full heart and a desire to continue to help people who need it.” S
RECOGNITIONS Congratulations to the following World Wide Wings employees … Ryan Pfister has been promoted to general manager at the BWW® in Speedway, Indiana. Pfister started in the restaurant industry as a dishwasher and worked his way up to a district manager position for Tim Hortons. He also has worked for TGI Fridays and Cheddar’s.
EVENT CALENDAR training has been instrumental in graduating multiple managers from the MIT Training program. Jay Hunziker is now the general manager at the B-Dubs® in Indianapolis, Indiana. After serving in the U.S. Army, Hunziker began his restaurant career at Hooters and worked his way up from dishwasher to area supervisor. He has also worked for Hard Rock Café and Tilted Kilt. Ron Sligar has been promoted to general manager for the Sterling, Illinois, Buffalo Wild Wings®. Sligar has a restaurant career with an
FBS Summit Aug. 4-6 Las Vegas, Nevada
extensive portfolio, working for brands such as Sweet Tomatoes, TGI Fridays and Cracker Barrel.
Congratulations to the following High 5 Hospitality employees …
Raymond Anderson is celebrating his 10-year anniversary as a cook at the BWW in Newark, Delaware.
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Barbara Grassley has recently started as the general manager of the BWW in Medford, Oregon. Grassley has been a member of the World Wide Wings team since 2017 when she joined the Salem, Oregon, location. Her passion for
Phaire donated art supplies to an elementary school in The Bronx, New York, and visited with the children.
We want to highlight your company’s achievements (employee promotions, new hires, employee or restaurant anniversaries and sales records). To submit information for Recognitions, complete the online submission form at www.myfbsonline.org/submissions, email communications@myfbsonline.org or call 678-797-5161.
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Buffalo Wild Wings Foundation: On a Mission to Support America’s Youth
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he Buffalo Wild Wings Foundation believes there is a champion in every child and is committed to building strong communities where all kids can thrive. As part of this mission, the foundation has focused on providing access to youth sports since 2013. In partnership with Boys & Girls Clubs of America, the foundation has raised and donated more than $22 million to provide equipment, uniforms, facilities, coaching and more to 1 million-plus kids across the country. In 2020, hundreds of Buffalo Wild Wings sports bars in the United States rose to support kids through the Team Up for Kids fundraiser, which brought in more than $1.2 million. These funds supported programs like the Boys & Girls Clubs’ ALL STARS, which provides kids the opportunity to be part of a team. And, for the thousands of kids who were at home because of coronavirus precautions, these funds supported virtual programming efforts, including distribution of more than 55,000
pieces of sports equipment. Because of the continued support of guests, the Buffalo Wild Wings Foundation will continue working with Boys & Girls Clubs and other locally based organizations to build stronger, more vibrant communities in 2021 and beyond. To learn more about the Buffalo Wild Wings Foundation and to donate to support our mission, visit foundation.buffalowildwings.com. S
Spotlight on the 117th Congress:
Sen. Susan Collins (R-ME) Q
co-authored to extend this crucial program and allow the hardest-hit small businesses to receive a second forgivable PPP loan. The relief package also includes many other measures that will help American families, our health care system, small businesses, employees and schools during the ongoing crisis.
Growing up with parents involved in politics, what qualities or skills did you develop that you utilize as a senator?
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Public service is in my DNA. Both of my parents served as mayor of my hometown of Caribou, Maine. My father served in the Maine Legislature, and my mother has achieved leadership positions on countless boards and commissions, from the University of Maine System Trustees to Catholic Charities of Maine. I had great role models at home and saw every day the importance of committed citizens getting involved.
Q
How has your role on the Committee on Health, Education, Labor and Pensions (HELP) influenced your opinions on the impact of legislation on small business?
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The issues addressed by the HELP Committee coincide with issues of great concern to America’s small businesses. One example is the need to lower the cost of health care, which most Americans obtain through employer-sponsored plans. Another is the need to better align workforce training programs with the skills needed to compete in the global economy.
I come from a six-generation small-business family and understand the challenges facing our job creators. As a former regional administrator of the Small Business Administration and the founding director of the Center for Family Business at Husson University, I know the importance of federal policies that support, rather than impede, the entrepreneurs who power our economy. That’s why I have always advocated for pro-growth tax policies, reasonable and consistent regulations, and infrastructure modernization to spur our economy through safe and efficient transportation as well as expanded broadband access, a major problem in parts of rural Maine.
Q A
In what ways are you seeking feedback from small businesses in Maine and using that information in Washington, D.C.?
During my service in the Senate, I have visited countless small businesses throughout Maine, from family farms to cutting-edge technology companies. In addition, I maintain six regional offices across the state, and my staff is in close contact with business leaders. One of my primary concerns in any legislation I develop, and among the first questions I ask in legislation that comes before the Senate, is how it will affect our job creators in the small-business community. S
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The Paycheck Protection Program (PPP) I authored last spring has been a critical lifeline for more than 5 million small employers, businesses as well as nonprofits, helping to sustain the jobs of upwards of 50 million Americans, including those employed by franchisees. In Maine alone, this program has helped sustain more than 250,000 jobs. The new COVID-19 relief package signed into law at the end of 2020 includes a provision I
What challenges have you helped small businesses in your district overcome?
THE
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How is relief legislation, similar to what was passed early during the COVID-19 pandemic, important to small-business owners?
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What generates leadership and loyalty today is vastly different from what it was less than a decade ago. In the podcast, “Leadership and Loyalty,” Dov Baron and his world-class guests, including Guy Kawasaki, Tom Bilyeau, Jordan Harbinger, Bedros Keuilian, Carly Fiorina, John Oates and Kevin Harrington, share the raw truth of their heroic journeys from devastation to purpose.
LOOK LISTEN 5 READ
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ook, Listen, Read is a quarterly compilation of some of the most highly rated and reviewed apps, podcasts, books, websites and other resources. FBS does not support or endorse the use of these tools, which merely serve as a guide to exploring a new level of knowledge and productivity for your business.
1
The “How to Succeed Podcast” teaches the success principles and interpersonal communication skills needed to get to the top and stay there. We are dedicated to empowering lifelong learners and ambitious entrepreneurs with options for growth they didn’t know they had.
2
Jive established itself as the gold standard in social business technology and remains the most adopted primary collaboration platform in the world. Millions of users and many of the world’s most successful organizations depend on Jive-powered intranets and collaboration hubs to get work done, harness their institutional knowledge and stay ahead of competitors.
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Using examples from organizations like McDonald’s, DHL, Marriott, Lockheed Martin, Discover Financial, Ultimate Software and many more, author Chip Bell shows how co-creation partnerships enable you to tap into the treasure trove of ideas, ingenuity and genius-in-the-raw within every customer through his work “Inside Your Customer’s Imagination: 5 Secrets for Creating Breakthrough Products, Services, and Solutions.”
Drawing on two decades as an ethics adviser guiding corporations and leaders, academic institutions, nonprofit organizations and students in her Stanford University ethics courses, Susan Liautaud provides clarity to blurry ethical questions, walking you through a straightforward, four-step process for ethical decision-making you can use every day. Liautaud also explains the six forces driving virtually every ethical choice we face. Exploring some of today’s most challenging ethics dilemmas and showing you how to develop a clear point of view, speak out with authority, make effective decisions and contribute to a more ethical world for yourself and others, “The Power of Ethics: How to Make Good Choices in a Complicated World” is the must-have ethics guide for the 21st century.
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7shifts allows you to manage employee schedules and labor costs. You can drag and drop employees into shifts based on their availability and shift requirements. Employees receive instant notifications about their shifts, and you can approve or decline employee requests with a click of a button. The labor cost-savings calculator helps you make important scheduling decisions. Also, 7shifts can integrate with your POS.
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Chris Hill is a chef, restaurant owner, author and speaker known for his skill in management and entrepreneurship. In his work “Making the Cut: What Separates the Best From the Rest,” Hill shares his collection of stories from the restaurant people he’s encountered in the kitchen. These tales serve as inspiration, direction and advice for anyone who’s serious about advancing their own career in the restaurant industry. Hill shares secrets from some of the most famous chefs alive on how they found success – and how you can too.
8
Orderly helps you with invoicing, accounting and inventory in one management app. Snap a picture of your invoices to help you avoid double payments, lost invoices, etc. You can easily export spend reports from the app to your accounting software. You can also follow price trends and monitor food spending and supplier pricing with the inventory management feature. S
One topic: 10 facts COMBO MEAL
Ghost Kitchens 6
Ghost kitchens, also called virtual, cloud or dark kitchens, are restaurants without a dining room. They can be support kitchens for off-premises restaurants or stand-alone facilities for takeout and delivery.
In New York City, the estimated cost to set up a ghost kitchen is just $100,000, much less than the $1 million to $1.5 million needed to start a brick-and-mortar restaurant.
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Between 2019 and 2020, meal delivery orders increased by more than 150%.
There are currently over 1,500 ghost kitchens in the United States.
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Experts expect the food delivery market to grow tenfold over the next decade.
China is the leader of this market with over 7,500 ghost kitchens.
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It is estimated that ghost kitchens could create a $1 trillion global opportunity by 2030.
Twenty percent of consumers say they spend more
The top two reasons for the explosive growth of ghost kitchens over the past few years are low risk and reduced cost.
10 Between Q1 and Q2 of 2020, the number of consumers placing restaurant orders by phone or online increased by 24%. Sources: Technomic, Euromonitor, Restaurant Dive
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on off-premise orders compared to a regular dine-in experience.
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FRANCHISEE SPOTLIGHT
Mark Jones BW Wings Management Partner(s): Mike Jones, Brandon Jones, Kevin O’Laughlin, Jeff Smith Year Became a BWW® Franchisee: 2002 Total Number of BWW Locations: 36 Total Number of Employees: 1,900-plus
What drew you to the brand? My brother, Mike Jones.
He was in the tavern business and was involved in the licensed-beverage industry at the time. I was practicing law. He decided Buffalo Wild Wings® was a good concept in the future of the bar business and asked me to be one of his partners. He knew that with my experience as an attorney, I could review franchise agreements, leases, contracts and other legal matters.
What is your favorite thing about the brand? Without
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a doubt, it’s the people. First are the friendships with the franchisees. I have built wonderful relationships with other BWW franchisees whom I respect and love. I’m also on the Franchise Advisory Council, and I’ve enjoyed the relationships that I’ve built with the people at corporate. Then there are the employees who work with us and for us – some of them since we started the business. Their love for the brand and commitment to our group has gone beyond simple employer/employee relations – some are great friends. And finally, there are the guests. We all have favorite guests, and as you are in each of the restaurants, you have people that you begin to recognize and get to know.
What other concepts do you own? Black Rock Bar and
Grill in Beavercreek, Ohio.
What are your current top three business goals? In this environment,
it’s what the Bee Gees sang about: “Stayin’ Alive.” With the pandemic, we are trying to stay open, keep people employed and stay alive. That’s tough in this environment. We are looking forward, and as things open, we’ll be able to start talking once again about growth, remodels and living without such anxiety, fear and the day-to-day changing landscape, but right now it’s simply “staying alive.”
Describe your best recent business decision: I don’t think it’s a decision as much as it is a philosophy. Over the years, some of our best decisions have been to walk away from deals. Many of our best business decisions have been the deals where we walked away. You just can’t be married to a particular deal or location, especially if it does not feel right.
What is the best business advice you have received? It came from
Mike, my brother. Make sure you pay all your taxes timely and make sure you pay down debt as fast as you can. That advice has proven to be very important in a number of situations, but especially during this past year and the pandemic. If you are behind in either, a year like 2020 can sink you.
Describe the biggest industry change since you started: The
government. The shifting sands of rules and regulations and employment law make it hard to plan and execute when things change so quickly. It can all change with the stroke of a pen.
Describe your current biggest challenge as a franchisee: Technology – from the speed at which it is changing to the engagement of our staff, our guests, our digital experiences in the restaurants and our back-office needs.
What is your favorite BWW wing sauce? Salt and vinegar. If I weren’t a franchisee, I would be … practicing law on a daily basis, which fortunately I’m not having to do! S
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Calling the Shots: What You Should Consider Before Implementing Vaccine Policies in Your Restaurants by Savannah Daly
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here is hope on the horizon for restaurants as distribution of the COVID-19 vaccine has started across the United States. As the rollout process has picked up across the country, many employers are expressing concerns and treading lightly when it comes to implementing vaccination policies in their places of work. Although the Equal Employment Opportunity Commission (EEOC) has released much anticipated guidance, there have been few mandates from a federal standpoint, and many experts think this might stay that way. Franchise Business Services (FBS) has researched and talked to legal experts to gather information about vaccination policies and what you should consider as a business owner.
When Will My Employees Be Eligible? In November, the National Restaurant Association expressed concern for employees across the restaurant industry, pushing to have restaurant workers considered as essential. The association joined 14 other food-related trade groups in writing a letter to President Joe Biden urging food-service workers to be classified in one of the first groups eligible for vaccinations. The Centers of Disease Control and Prevention (CDC) released its recommended rollout plan, classifying employees in
the food-service industry in phase 1C, one of the first groups to receive the vaccine. These guidelines or similar ones are being established by state governments across the U.S., but each state and even some large cities have implemented their own plans according to what they feel is the best fit. South Carolina, New Hampshire, Rhode Island and Utah are all implementing age- or risk-based classifications as opposed to work-based classifications. Though several states and large cities are already in the process of vaccinating restaurant workers, restaurants in many states won’t see vaccines available for their employees until late spring or even the summer. Inspire Brands has been closely watching the availability of the vaccine to restaurant workers. “We have actively lobbied to move the restaurant workforce up earlier in the rollout,” said Christopher Fuller, chief communications officer for Inspire Brands. “What we are hearing from experts is that availability for this classification of worker will likely begin in mid- to late April. We are meeting nearly daily on this topic to devise our associated plan.”
The Big Questions
SAVANNAH DALY is the FBS communications coordinator. You may reach Daly at 678-439-2288 or savannahd@myfbsonline.org.
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Another option that many companies are considering is incentivizing their employees to receive the vaccine. Extrinsic motivation might push workers who are on the fence about receiving the shot to roll up their sleeves. One of the first major restaurant brands to reveal its policy was Darden Restaurants Inc., which operates several casual-dining brands such as Olive Garden and Longhorn Steakhouse. The company plans to compensate its workers with two hours of pay for each dose of the vaccine they receive. Focus Brands also recently announced that its employees will receive two hours of paid time off (PTO) for each dose. McDonald’s released a similar policy of providing four hours of PTO for corporate and company-store employees. The other 13,000-plus stores in the U.S. owned by franchisees, however, have been left to implement policies at their own discretion. This decision is due in part to the 2019 National Labor Relations Board ruling that the corporation was not responsible for actions that were taken at its franchised locations, meaning it is not a joint employer with its franchisees. Experts expect that many franchisors will follow McDonald’s lead and avoid creating a vaccine policy that applies to franchisees, allowing them to implement their own. While some companies are offering PTO to employees to get the vaccine, others such as grocers Kroger and Lidl are simply incentivizing with cash. Big-box retailer Target is even covering the cost of a Lyft ride up to $15 each way to the vaccination site. Data is suggesting that implementing incentives, especially financial ones, might be an appealing route for employers. A poll conducted by analytics firm Perceptyx indicated that 56% of employees would get vaccinated if they were encouraged by their employers, and 60% said they would line up for a shot if their employers offered a $100 reward. While the EEOC has issued direction on mandating vaccines, many business owners are still wondering about what risks are associated with using incentives for their staff members. On Feb. 1, FBS, along with over 40 other business groups, submitted a letter to the EEOC asking for more guidance about implementing incentive policies in their businesses. As of this writing, the commission has yet to respond to the letter, but franchisees are encouraged to check the EEOC website regularly for a response, especially if they plan on using an incentive in their vaccination policy. It is important to note that legal concerns, whether through the ADA, Title VII or even the Genetic Information Nondiscrimination Act, exist whether a company mandates vaccines or simply encourages them. Ultimately, business owners will need to keep their eyes peeled as more information is released to make sure their policies comply. FBS will keep members up to date on information and best practices regarding vaccination policies through email communications and the website, www.myfbsonline.org. S
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There are several big questions looming over business owners’ heads regarding the COVID-19 vaccine: Should we require it for employees? What are the legal implications? Where do I even start with building a policy? The EEOC does allow employers to mandate the vaccine for their employees, with several exceptions. • The employee must receive the vaccine at a third-party health care provider or pharmacy that does not have a contract with the employer to administer the vaccine. • The employer must make accommodations for religious and/or disability-related objections under Title VII of the Civil Rights Act and/or the Americans With Disabilities Act (ADA). In a January webinar, attorneys from Littler Mendelson P.C. noted that before COVID-19, the firm reviewed and monitored various EEOC cases involving employee vaccination, and most of the litigation focused on the failure to accommodate based on religious beliefs, practices and observances. This is important to keep in mind when considering a vaccine mandate and making sure there are reasonable accommodations for employees who refuse, such as social distancing and wearing personal protective equipment. Despite it being legal, many employers are questioning the moral implications of mandating the vaccine. Opinions regarding the side effects, effectiveness and quick development of the vaccine are causing many to remain hesitant to take it. In a recent study by workforce technology company Harri, about one-third of restaurant, hotel and other hospitality workers indicated they don’t intend to be vaccinated against COVID-19, largely because of fears about the aftereffects. Many companies have decided not to implement any type of vaccine policy and instead are letting the state or local governments take the reins. In the same vein, many employers who are making the decisions to develop a policy are making personal choice a priority. Restaurant brands such as Chipotle and restaurant parent companies such as Yum! announced they will not be implementing a mandate, but instead strongly encouraging vaccinations.
Incentives: Giving an Extra Push
New Tech in BWW System Focuses on Improving Off-Premise Experience by Sean Ireland
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he coronavirus pandemic and its effects may have slowed economic growth in the United States, but it quickened the pace at which people have integrated technology into their daily habits and business activities. In the last two decades, the role technology has in our lives grew rapidly – think of how much time people spend on smartphones that are carried everywhere. Our culture has integrated technology into virtually every aspect of life. The last year spent amid the pandemic has pushed that integration even farther and faster than ever before.
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People forced to work from home who’d never heard of Zoom at the start of 2020 have become proficient at using it to join or host meetings and make presentations. Smartphones – already never more than an arm’s length away – have become even more invaluable for ordering delivery of food and groceries and other goods, completing work away from the office and staying connected to co-workers, friends and family. The list of the ways technology has become more ingrained
know what stage of preparation their food is in and whether the guest is at the restaurant,” Baune said. “It’s an interactive approach to communicate with the guest. Operationally it provides a lot of benefit in that we don’t have a large crowd congregating at the front counter. The guest stays where they are parked, we bring the food out to them, and they’ve already paid. It provides a best-in-class off-premise dining experience.”
“The new normal is not an 80-20 split in [on-premise versus off-premise dining]. The new normal is going to be 60-40 or 70-30. Off-premise will continue to be important going forward.” – Christopher Jones, director of IT with BW Wings Management
SEAN IRELAND is the FBS director of communications. You may reach Ireland at 678-797-5165 or seani@myfbsonline.org.
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For consumers eating in the restaurant, contactless payment is another area where technology will soon be having an impact for the BWW® system. There is growing consumer demand for faster and safer checkout experiences in the wake of the pandemic. According to a National Retail Foundation study released last year, one in five consumers made a contactless payment for the first time during the pandemic, and 57% said they would continue using contactless payments after the pandemic. A finding from a 2020 Visa “Back to Business Study” found that 48% of consumers say they won’t shop at stores that offer only payment methods that require contact with a cashier or a shared surface like a POS terminal. To meet this demand, Baune said BWW will deploy a system that allows a server to ask a guest if they want the contactless payment option. If so, the server will send a text to the guest with a secure payment link. “The server doesn’t have to swipe the card, and that’s something you are seeing as a growing solution across the industry,” he said. When it comes to exploration and investment in technology by franchisees, Jones keeps BW Wings Management on a conservative path – always focused on the things that lead to enhanced guest satisfaction and smoother operations, which often go hand in hand. “We try to keep our technology budget as low as possible,” he said. “We focus on things like payment security, and we’ve strengthened our PCI compliance. We’re more hyperfocused on that than deploying new technology that costs a lot. As long as our restaurants run effectively and everything is secured, I’m in a happy place.” S
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into daily life is exhaustive, and it will continue to diversify and grow as people and businesses find the best ways to use what they’ve learned during the last year. The pandemic forced organizations to change their operations to accommodate the realities of combating the disease, with tech often providing a new way forward, and it will continue to provide opportunities for more efficient operations after the pandemic. With the world poised to enter an age with so many new frontiers and so much potential for change, taking advantage of it requires companies to be nimble and willing to explore new ways of doing things. Leaders with the right attitudes make sure that their companies are both. It’s also important that leadership understands the right places to make investments. “Technology is meant to streamline operations and make things better for the customer – doing things like allowing them to check out faster or get their food faster,” said Christopher Jones, director of IT with BW Wings Management, which operates 36 Buffalo Wild Wings® locations. Call it the golden rule of technology – if it doesn’t serve the restaurant’s hospitality mission, it may not be worth doing. The restaurant industry was particularly hit hard by the pandemic when dining rooms were closed or required to operate at limited capacities last year by government mandates, shifting a larger share of business to off-premise dining. But the disruptions also meant that restaurants were in a position, sometimes by immediate necessity, to explore and adopt new technologies to make them more efficient or add layers of safety that consumers will continue to expect even as the world emerges from the pandemic. “The trend is that we are going to see more adoption of COVID-19 behaviors,” Jones said. “The new normal is not an 80-20 split in [on-premise versus off-premise dining]. The new normal is going to be 60-40 or 70-30. Off-premise will continue to be important going forward.” That’s a big factor guiding the rollout of new technology in the Buffalo Wild Wings system. “Our off-premise business has grown immensely since COVID-19 hit,” said Ryan Baune, vice president of technology operations for Buffalo Wild Wings. “This is us trying to adjust the changing business needs due to COVID-19 and ultimately provide a better guest experience. We want to be known for a very interactive, seamless experience when it comes to off-premise dining.” As 2021 unfolds, the Buffalo Wild Wings system will be seeing the introduction of a software system from ItsaCheckmate being tested by BW Wings Management early in the year. The product offers third-party delivery platform integration through a single dashboard that automatically pulls orders from those platforms, such as DoorDash, Uber Eats or Grubhub, directly into the restaurant’s POS system, eliminating the need for team members to enter them. It also allows operators to notify the delivery services of important menu updates at once rather than logging into all the platforms separately. With the increased emphasis on off-premise, it’s an important timesaver that both streamlines operations and boosts the customer experience. Another development affecting off-premise dining will be in the testing stage this year. It will be a tech-enabled curbside service that boosts communication between guests and the restaurant. The idea is to “streamline the process and give us a way to communicate back and forth with the guest to let them
In the Starting Gate of a New Race, Will You Rise to the Challenge?
By Bobby Pancake, High 5 Hospitality
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t risk of belaboring a well-accepted point, 2020 was the most difficult year that most business people have faced in their careers. The coronavirus pandemic seemed particularly targeted at the restaurant industry, with dining rooms across the nation closed to try to stop the spread of COVID-19. Through hard work, perseverance and determination, Buffalo Wild Wings® franchisees such as Bobby Pancake of High 5 Hospitality guided their organizations through the turmoil into a new year. To set the tone for the start of 2021, which began with vaccine distribution and hopes for life without stay-at-home mandates and worries about illness, Pancake authored this motivational message for his teams.
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Four days ago, we turned the page on a calendar and closed a chapter (or slammed the door) on a year that most of us would like to erase from our memories. But we also entered the starting gate of a new year. In horse racing, one of the most dangerous, yet essential, jobs at the racetrack is on the gate crew. The training and the mindset in which a horse and rider enter the barrier stall separating them from the racetrack is extremely critical in how they will run and, ultimately, finish the race. The gate crew is responsible for qualifying all horses prior to entry into any contest. It is the commitment to training, the repetition, the relationship between the thoroughbred and its trainer and its rider along with the confidence instilled (and the fear dispelled) by the gate crew that allows these animals to break well from the gate and put in a performance that wows the crowds and draws admirers from all over the world.
So how does that relate to us? Think about it: 1. We’re at the start of a new year. 2. We’ve got a full year or racetrack in front of us. 3. Our leaders are the “gate crew” making sure that everyone is qualified to complete the jobs we are expecting of them. 4. It can be dangerous (and costly) should we not adhere to the highest standard operating procedures, government regulations and safety protocols. 5. A poor start can not only impact our individual performances but also may interfere with the overall outcome of the entire organization. Oh. And you are not the horse. The horse is your business.
Post position (How we start): Before the bugle plays “Call to Post” at any race, a blind draw occurs. The owner who draws the number five gets gate No. 5. Once the post positions
are determined, the odds may change on your favorite horse. The best position in horse racing is the No. 2 post. Twenty-one percent of the winners start from that position. Gates No. 2 to No. 10 have produced 71% of winners. In the last 55 years only 1% of races have been won by a horse outside the No. 16 position. So where you start has a huge bearing on where you finish. • Are you setting your team up for success every day? • Do your pre-shift huddles position your team to win? • What do the ‘Moments of Truth’ reveal about your business?
Plan (How we prepare): Thoroughbred racehorses are bred
and shipped around the globe. Owners keep and race the horses that they breed themselves or that they purchase. Trainers and jockeys are selected based on experience and results. There are a lot of behind-the-scenes (or barn) folks who do their jobs day in and day out – from feeding, to exercising, to cleaning the stalls – that get no recognition on race day yet play a necessary role in achieving the ultimate prize. The goal is to win and win a lot. • Do you have the right people around you? • Do you have them positioned in the right places? • Do they know the goal?
Purpose (How we perform/the product we sell): Horse racing is a form of entertainment that dates to about 4500 B.C. For money, for pride, for lands, for bragging rights, whatever the reason, this sport has held our interest for a long, long time. There’s an argument that we are in the food business. Or is it the people business? Or is it the hospitality business? I would say all three. It doesn’t matter the color of the horse, it’s winning the race that matters. • Are you proud of the plate that you just served the guest? • Did you treat every team member today with respect? • What value do you place on the people spending the money?
In 2021, will your business be considered a favorite or a long shot? beat the champion, or a special horse astonished the world, or rivals faced off in an epic showdown. Horse racing has it all. The finish is at the other end of the track, at the end of the year, but make no mistake, our finish will be determined by how we run the race. • Will you hold yourself to the standard every single day? • Will you embrace the H5H mission statement and core values? • Will your finish in 2021 be worth the photo? And so it is that we begin at the starting gate, with the end in mind. Determined to ride this filly without abandon the entire length of the track. 1. In 2021, will your business be considered a favorite or a long shot? 2. In 2021, will you overcome the track conditions and fight to the finish? 3. In 2021, will you commit to win, place or show? 4. In 2021, will you and your team go from gate to great? 5. In 2021, will you accept the challenges that are around the turn, grip the reins tight and rise to victory? S
Process (How we persevere): It is quite a process in
training and time to get a racehorse ready and keep it performing at a high level. There’s endurance training at speeds less than 600 meters per minute. There is combined aerobic and anaerobic training at 70% to 80% of maximum speed. (Sometimes the horse even wears a mask – sound familiar?) Then there’s anaerobic training for development of speed and acceleration. The window of opportunity is short. For a horse to collect the huge purse, everyone around them must be committed to the process. • Have you communicated the goals and objectives for your restaurant or sports bar? • How are you challenging your team to perform at a high level? • Do you trust the process?
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Photo finish (How we finish): Professional punters (look that one up for yourselves) are filled with anxiety when the odds-on favorite is challenged to the wire. Yet, with every race, every jockey and horse pairing has a chance to make history. The potential for eternal fame, the chance to beat records and the possibility of becoming a true champion are just part of the thrill of the races. There have been races during which the underdog
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Internal Controls
by Stacy Smith
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fraudulent transactions. You can also track inventory by ingredient. And some systems allow you to remotely manage or review what’s going on at the cash register at any time and from anywhere through the cloud. Employees steal less if they know you’re watching. In a study conducted at Washington University in St. Louis, researchers measured the effect of theft and fraud before and after the installation of POS-monitoring software at 392 restaurants in 39 states. The researchers discovered that after installing the monitoring software, revenue per restaurant increased an average of about 7%. Restaurants also experienced a 22% drop in theft. Just knowing that someone could be watching can change employee behavior. Send the message that theft won’t be tolerated. From the moment you hire an employee, communicate your core values and set an expectation that you’re not going to put up with fraudulent activity. Another study conducted at Washington University showed that if new restaurant workers are exposed to stealing peers within the first five months of starting their jobs, they also are likely to become habitual thieves. There are certainly other small changes and precautions you can implement to decrease the chances of fraud happening in your organization. But these are simple steps you can take now to save yourself a headache in the future. S STACY SMITH, CPA, is a shareholder with Mize CPAs Inc. – a full-service accounting firm that has provided the Elevanta Accounting & Payroll Solution since 2003.
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ith large amounts of cash, food and other inventory on hand, having weak or no internal controls leaves your organization open to thieves or dishonest employees who are looking for opportunities to make some extra money. From the cash register to the kitchen, there are plenty of vulnerabilities that could lead to fraudulent activity in your business. The good news is there are simple controls you can put in place to deter and prevent fraud. Consider all the areas in your restaurant that provide opportunities for fraudulent behavior. From the back room to the front of the house, think through every touch an employee has with a product or a transaction. Look for odd or irregular patterns that might indicate fraud. Get in the habit of spot-checking register reports to look for anomalies. Instances such as one register having more refunds issued or coupons processed compared to the others, or an increase in voided transactions happening at certain times of the day can be a signal that will require additional investigation. Review your authorization processes. Can employees manage voids on their own or are they required to have a manager approve voided receipts? Who is reviewing and tracking voids and refunds? Consider using more cashless payment options. It’s easy for a restaurant to fall prey to fraud given the large amount of cash that changes hands at the register. Many restaurants have added cashless payment options or made existing ones more convenient due to the risk of spreading germs through cash during the pandemic. Even though you’ll pay fees for credit and debit card usage at your restaurant, the benefits often outweigh the costs. Are you offering as many cashless payment options as you can? Get a handle on your inventory. Don’t let food walk out the restaurant door. Your managers should have tremendous accountability with inventory control. Know what items your staff can freely access and consume and put processes in place to track employee meals. Standardize your processes. Document your house standards and processes and share them with your staff. When do you expect staff to reconcile cash? What is the procedure for closing for the night? Who does it? Do you have checks and balances built into your processes to help reduce fraud? Implement surprise cash counts. Employees who commit fraud often do so when they’ve learned the routine of how your restaurant operates. Just like dropping off bank deposits at random times can throw off a robbery, the same routine disruption works inside your restaurant. If a staff member has been taking cash from customers without entering anything into the register, they’ll probably wait until the end of the night to remove the cash. You can disrupt a potential thief by taking a reading at the register at random times throughout the day. Perform daily deposit verification. If an employee is taking cash out of the daily bank deposit, and no one is comparing the bank account to the POS reports daily, thousands of dollars can disappear before it is caught at the end of the month. Comparing online bank activity to internal sales reports every day can catch a thief before a large amount of cash is lost. Invest in POS fraud software. Technology has improved so many aspects of restaurant operations – leverage it for fraud detection as well. Fraud software, integrated with your POS and accounting systems, can help you stay on top of both real and
What Workplace Changes Can We Expect in the First Year of President Biden? by Douglas H. Duerr
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s this article is being written, we are just over two weeks into a new period of control by the Democrats of two branches of government. In that short time span, President Joe Biden has signed more than two dozen executive orders (EO), some of which address workplace issues, and agencies of the U.S. Department of Labor, including the Occupational Safety and Health Administration (OSHA) and the Wage and Hour Division (WHD), have already taken many actions undoing the impact of the Trump administration. Quite remarkably, although it had been widely assumed there would be no immediate impact on labor unions because the National Labor Relations Board (NLRB) will have mostly President Trump appointees until the end of 2021, President Biden took the unprecedented step of replacing the top two lawyers who decide what cases are brought to the NLRB. These combined actions are causing change in the workplace much more quickly than had been predicted, and in fact occurred, during this same point following President Trump’s inauguration. Will the pace of change continue since the House and Senate are controlled by Democrats? It is Washington, D.C., so probably not, but there is plenty on the horizon that might occur within the next 12 months. Here are a few highlights:
Workplace Safety: On Jan. 21, President Biden signed an “Executive Order Protecting Worker Health and Safety.” The EO is directed at workplace changes relating to protecting workers from COVID-19. Last year, OSHA was subject to criticism for allegedly not holding employers responsible for protecting workers from COVID-19 and for not issuing a new safety standard directly addressing COVID-19. OSHA had released guidance earlier in the pandemic, based on existing safety standards. The EO directed OSHA to issue revised guidance within two weeks, to consider whether an emergency temporary standard (ETS) should be issued and to do so by March 15, review and revise enforcement activity to “better protect workers and ensure equity in enforcement[,]” and take further actions. Within days of the EO, OSHA responded by issuing a “stronger worker safety guidance to help employers and workers implement a coronavirus prevention program and better identify risks which could lead to exposure and contraction.” While the characterization of the guidance as stronger may be subject to debate, unlike the prior guidance, which was, in part, seemingly contradictory to CDC guidance, the new OSHA guidance explicitly tracks and expands upon the current CDC guidelines.
Whether OSHA will issue an enforceable ETS by March 15 is an open question as I write this at the end of January. OSHA is not known for issuing safety standards quickly, even for significant hazards. That said, the calls for an ETS have been coming for many months, and California’s equivalent of OSHA has issued such a standard that could serve as a starting point for a federal regulation. (In fact, the new guidance adopts elements of that temporary standard.) Thus, there is reason to suspect that OSHA may issue an ETS, if not by that deadline, by the summer; however, as we have seen with new, major regulations, we can also expect there will be challenges to an ETS in court once issued. While there are promises of increased enforcement by OSHA, the reality is that funding for OSHA has been cut for years and that it takes a while to train new investigators. Thus, while increased enforcement is likely, it may take a while before that is directly felt in the workplace.
Wage and Hour: In the closing months of the Trump administration, the WHD, which enforces the federal Fair Labor Standards Act (FLSA), issued guidance on the thorny issue of who is an independent contractor as opposed to an employee and issued employer friendly opinions on the legality of certain compensation schemes under the FLSA. Not surprisingly, within days of the incoming administration, that guidance and several opinion letters were withdrawn in addition to termination of a program allowing employers to self-report violations in return for avoidance of penalties. With these actions and the simultaneous change in wording of public statements to “protecting workers,” we can expect the WHD to reorient from an emphasis on educating and providing guidance to employers to an emphasis on enforcement. In addition to this change in tone, as demonstrated by the inclusion in President Biden’s proposed COVID-19 relief legislation of an increase in the federal minimum wage to $15 per hour and his EO requiring steps to increase the minimum wage for federal employees to $15 per hour, there will be renewed, and more likely successful, efforts to increase the minimum wage as well as further increase the minimum salary for managers and other white-collar employees to be considered exempt. Paid Leave: Even prior to the pandemic, there had been calls by now-President Biden and the Democratic Party for a federal mandate for paid leave. While his proposed COVID-19-relief legislation provides for an extension and expansion of paid leave for absences due to COVID-19 through the continued use of tax credits, if that effort is successful, which seems likely, we can expect an effort later this year to expand paid leave to other types of absences. Discrimination Based on Sexual Orientation and Gender Identity: Prior to assuming office, President Biden stated that a
sudden removal of the top two lawyers of the NLRB, which is responsible for enforcing the National Labor Relations Act’s protections for employees who act collectively on the terms and conditions of employment, little change in the employer friendly decisions of the NLRB had been expected until at least the end of the year. While the new Secretary of Labor (currently anticipated to be Marty Walsh but almost certainly a pro-union supporter whoever is approved) can take actions supportive of organized labor, it is the NLRB that has the greatest impact. While the NLRB is controlled by Trump appointees, it is the NLRB’s general counsel that can select which cases come before the NLRB as well as whether it will continue to prosecute cases awaiting a decision. As such, while President Biden will have a majority of his appointees on the NLRB by the end of the year, we can expect an almost immediate impact in the workplace toward a union friendly enforcement stance. While it has become increasingly difficult to make predictions about what is to come with the stark partisan divide in Washington, there is little question that with Democrats controlling two branches of government, employers will have a federal environment that is pro-employee and pro-union at the expense of employers. This will present challenges in the years ahead, but if you remain focused on the fundamentals covered in my columns in prior issues of the magazine, you will be well ahead of the game. S
DOUGLAS H. DUERR is a partner at Elarbee Thompson, a national labor and employment law firm with an industry practice area focused on franchisees. Learn more at www.elarbeethompson.com.
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legislative priority in his first 100 days was passage of the Support Equality Act (SEA). The bill passed the House in 2019, stalling in the Senate. While the workplace impact of passing SEA may be limited following the U.S. Supreme Court’s ruling in July that current civil rights laws prohibited workplace discrimination based on sexual orientation and gender identity, we can expect increased enforcement efforts to prevent workplace discrimination of LGBTQ individuals regardless of whether the SEA is passed.
Labor Unions: As noted previously, until President Biden’s
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s we get into the meat of 2021, would you like a way to engage (or reengage) your people in creating loyalty-driving customer experiences? A proven way to accomplish this is to reconnect your employees to the purpose of what they do. Employees who understand the true purpose or bigger picture of their jobs will always perform better than those who see their role as simply completing a series of tasks. What I’m talking about is creating a purpose statement for your organization (or refining the one you already have). I’m fully aware that when I talk about things like purpose statements, some folks roll their eyes because they see creating things like purpose statements as meaningless, consultant-driven exercises. And it can be a meaningless exercise if the purpose statement is created as just an exercise. But when created and used strategically, an effective purpose statement can mobilize people to do things they never thought possible. To focus on something beyond themselves. President John F. Kennedy verbalized a powerful, motivating purpose statement when he said in 1961, “I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to Earth.” Not a lot of words in that statement, but it’s pretty clear what the purpose was. And tens of thousands of workers focused
themselves on that purpose, and they succeeded spectacularly. From a business perspective, I must share the power that The Walt Disney Co.’s purpose statement had on me. The statement was simply this: “We create happiness by providing the finest in entertainment for people of all ages, everywhere.” This simple statement provided a context for why I was loading people on rides, answering the same question for the thousandth time, helping guests find a particular attraction or picking up a stray piece of trash off the ground. I was creating happiness, and that was a pretty special job to have. An effective purpose statement answers two questions: What do we create? How do we create it? Pretty simple, huh? I think any organization can get its arms around these two straightforward questions. The problem comes when an organization overcomplicates the process, creating a statement two pages long that no one in the organization can even recite. The secret is to keep it simple. Here are a few examples of effective purpose statements from my experience:
the Walt Disney Co. As I mentioned earlier, the company’s purpose statement is, “We create happiness by providing the finest in entertainment for people of all ages, everywhere.” What does Disney create? Happiness. How does it create it? By providing the finest in entertainment for people of all ages, everywhere.
“We create happiness by providing the finest in entertainment for people of all ages, everywhere.” – The Walt Disney Co. purpose statement
First Citizens bank “We build life-enhancing relationships by helping our customers identify and achieve their financial goals.” What does First Citizens Bank create? Life-enhancing relationships. How does it create it? By helping customers identify and achieve their financial goals.
Cool Cuts 4 Kids (hair salon for kids) “We create excitement by engaging our customers in a fun, friendly, family experience.” What does Cool Cuts 4 Kids create? Excitement. How does it create it? By engaging customers in a fun, friendly, family experience. Again, pretty simple. But powerful when used as a tool to align the performance of your team. These statements are easy to explain, train and coach. They’re easy to keep top of mind. I’m not saying that such statements are magic in themselves; they’re not. They must become embedded in the organization’s culture. They must become second nature. But when they do become second nature, they come close to being magic.
organization. You might decide to do it yourself. You might decide to put together a small team to create it. Or, if appropriate, you might decide to engage everyone in the organization in creating it. Just don’t let the statement evolve into “committee-speak.” Keep it simple and just answer as concisely as possible, “What do we create, and how do we create it?” I know that you might not be responsible for the entire organization. You can do this at the department level as well. What does your department create? How do you create it? You can do this regardless of your sphere of influence. You could even do it just for yourself if you’re not in a leadership position. That’s not a bad idea if you want to create real value for your organization by creating real value for customers. As I mentioned earlier, a purpose statement isn’t magic. It must be communicated relentlessly and built into new-hire onboarding and ongoing training. It must be coached and celebrated at every opportunity. But when done with a clear purpose and embedded in the culture, an effective purpose statement can be a game changer. So, here’s something to think about: What does your organization create, and how do you create it? S DENNIS SNOW is the president of Snow & Associates Inc. Dennis worked with The Walt Disney Co. for 20 years and now consults with organizations around the world, helping them achieve their customer service goals. He is the author of “Unleashing Excellence: The Complete Guide to Ultimate Customer Service” and “Lessons From the Mouse: A Guide for Applying Disney World’s Secrets of Success to Your Organization, Your Career, and Your Life.” You can reach Snow at 407-294-1855 or visit his website at www.snowassociates.com.
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“We create excitement by engaging our customers in a fun, friendly, family experience.” – Cool Cuts 4 Kids purpose statement
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An effective purpose statement focuses your team on what you are really selling beyond the physical product or service. It focuses your team on the WHY behind that product or service. Remember the old sales expression: The customer doesn’t need a half-inch drill bit, the customer needs a half-inch hole. Focusing on the why takes things to a whole new level. Lots of ways exist to create a purpose statement for your
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Measure Progress and Consider Adjustments by Dan Coughlin
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here are fine but very important lines between different types of groups. Brainstorming/Mastermind Group – the purpose is for the members to share ideas and build on each other’s ideas. It’s up to the members as to what they do with the ideas they hear. Department Head Meeting – the purpose is for each person to learn what the various departments are working on and to offer each other information that might help to improve the performance of the departments. Happy Hour Gathering – the purpose is to give people an outlet to share emotions and stories to allow them to vent and laugh and reenergize. A team – the purpose is for the members to support one another to collectively fulfill a meaningful purpose and achieve important outcomes. Teams should be measuring progress toward achieving desired outcomes (tangible) and fulfilling their meaningful purpose (intangible). If the team is making no progress in terms of improving outcomes, then the team is being ineffective. The only way to determine if the team is being effective is to measure its progress.
The Purpose of Measuring Progress Is to Learn
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Go back to your high school days. You received grades on tests and quizzes, and you received grades on your report card. There are two things you could do with those grades. First, you could compare your grades to other people, and the effect could be a raising or lowering of your self-esteem. Second, you could use your grades as indicators of what you do well and what you need to learn to improve future performances. Here is my advice to high school students: don’t use grades as an indicator of your self-worth. It’s a game that you will eventually lose regardless of your grades and the grades of other people. Instead use grades as indicators of your performance in terms of what you are doing well and what you are not doing well and use those grades as guideposts for leveraging what you
are good at and determining what you can do to improve future performance. As an adult, I am giving you the same advice. If your sales team numbers are better or worse than your competition, don’t base your self-esteem or your team’s worth on this comparison. Instead use the comparison as a means for learning what the team is doing well and what the team can do to improve in certain areas. Making Adjustments Is an Ongoing Process of Learning, Tweaking and Applying What Has Been Learned
As you measure the team’s progress in terms of fulfilling its meaningful purpose, the actual grade or number is just the tip of the iceberg. The key is to dig under the result and find out what generated it. What actions occurred that led to the result? What decisions were made that caused those actions? What was the strategy behind those decisions? Who were the people that developed the strategy, and what did they do that was effective or ineffective? Who were the people that executed the decisions, and what did they do that was effective or ineffective? Where were the team members effective in supporting one another to improve results, and where were the team members not effective in supporting one another to improve results? Conclusion
The result is what it is. Don’t base your self-esteem or your team’s worth on the result. Instead use the result as a starting point to dig deeper into understanding the performance that generated the result and to dig deeper into understanding how to improve a future performance. Then make the necessary adjustments to improve the team’s performance. In doing so, you will be guiding the team to continually become more effective in the future. S
DAN COUGHLIN provides both individual executive coaching and group coaching programs on management, leadership and teamwork. To visit his free Business Performance Idea Center, go to www.thecoughlincompany.com.
Making the Right Choices: Five Observations About Intuitive Vs. Analytical Decision-Making
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aking solid decisions is key to effective and productive work at all levels – individual, team, division or corporate. Most of us make a remarkable number of decisions daily; some researchers claim we make thousands, if we include every little choice, like what to eat and which task to do next. In the case of routines, most represent decisions made in advance or enforced by deliberately limited choice, so we spend time more efficiently. Most decisions are personal and have limited impact on others. But the decisions you make during work hours can impact thousands or even more, depending on your position – not just in your business, but also among your customers. For example, whoever decided that annoying paperclip that haunted Microsoft Office until 2001 was a good idea affected the lives of millions. There’s always been some conflict about whether instinctual, intuitive snap decisions or more analytical, deep-thought decision-making works best. Here are some thoughts about both types, and how each can work for you, separately and together.
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We’re naturally intuitive. Most decisions are snap decisions; we’re biologically programmed to use intuition first, for good reason. When you see a snake strike at you from the corner of your eye, you can’t debate what to do; you jump away. When you decide to replace that glitchy old printer/copier, frustration may drive you, but in the back of your mind you also know it’s 10 years old, the manufacturer no longer supports it and it lacks a smartphone interface. Computers can evaluate every possible option and its most likely result; we can’t. Sometimes you just pick whatever seems best, based on pattern recognition, subconscious needs and knowledge borne from experience. Just because a decision is sudden or instinctive doesn’t mean it’s bad. Few instincts are hard-wired; most develop based on experience.
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Modern business often praises the intuitive over the analytical. Point No. 1 may be a reason why my research for this story was biased toward intuitive decision-making. Businesspeople and their observers have come to respect intuition as a highly valuable business tool. Psychologist Gerd Gigerzer calls it “fast and frugal thinking.” Modern processes like lean manufacturing and just-in-time services often require quick thinking and snap decisions. So do startups.
They needn’t be mutually exclusive. Often, what we think of as intuition or instinct is like the muscle memory triggered by an activity requiring repetitive, fast response. In time, your muscles automatically react to what you see coming, whether you’re fencing, playing baseball, operating a machine or typing. In the case of decision-making, you’ve picked up and internalized cues and responses from years of work in your field. So, even if a decision somehow seems instinctual, if it isn’t impacted by bias, it’s likely because you’re thinking analytically at a subconscious level based on your knowledge and experience.
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Even when working a plan, intuition is valuable. There was a time when businesses followed five-year and three-year plans. The business world is no longer stable enough for that. With the rise of complex telephony and the World Wide Web, even one-year plans aren’t tenable. We all know that, as in warfare, no plan survives contact with reality. Working with a plan is fine if you remain flexible, willing to divert from the plan whenever productive and profitable. That’s where intuitive decision-making comes in handy. Decisions Come, Decisions Go The continuing debate about instinctive versus analytical decision-making is helpful, because both types of decision-making have their good points. Teams or institutions can benefit from taking the time to work out the decision-making process that works best for them. We value leaders who can merge both types, so that experience and new knowledge from analysis can yield the biggest, best ideas. So do your homework and take new trends and business realities into account; however, don’t undervalue intuition while making decisions. S
LAURA STACK, MBA, CSP, CPAE, is an award-winning keynote speaker, bestselling author and noted authority on employee and team productivity. She is the president of The Productivity Pro Inc., a company dedicated to helping leaders increase workplace performance in high-stress environments. Stack has authored eight books, including “Faster Together: Accelerating Your Team’s Productivity.” She is a past president of the National Speakers Association, and a member of its exclusive Speaker Hall of Fame. To have Laura Stack speak at an upcoming meeting or event, visit www.TheProductivityPro.com.
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Collective corporate decision-making tends to be via committee and focus groups, which some consider a case of too many cooks in the kitchen. This analytical approach does, however, accomplish several things. It allows decision-makers to hear all aspects of an argument, identifies points that may not have occurred to the group and refines decisions once made. That’s why many organizations and individuals swear on the analytic process of decision-making. Doing your due diligence and homework is required for the more important decisions.
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Issue 2 is due out July 2021. As always, we want to highlight any news or events associated with our members. If you have ideas for potential stories, please submit online at www.myfbsonline.org, email communications@myfbsonline.org or call 678-797-5160 by June 7. Our editorial staff can assist in writing the article.
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Supporting you through the good times and the bad Some years are better than others, and 2020 was certainly a challenge for most. With all the change and uncertainty, there is no better time to ensure you have the right business insurance in place. Like always, co-brokers Lockton Affinity and Elevanta are here to support you—whatever 2021 looks like for your business. In addition to servicing your insurance needs, we offer complimentary policy reviews and risk management tools.
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