Issuu

THE

THE MAGAZINE OF FRANCHISE BUSINESS SERVICES

2 01 9 ISSUE 4

Mike & Lori Mastro

share their BWW journey in the Franchisee Spotlight PAGE 14

Pandemic Consequences Complicate Development Decisions PAGE 20

PROUD TO BE YOUR WINGMAN SINCE 2012

McLane Foodservice offers its sincere gratitude to the BUFFALO WILD WINGS franchisees for their years of partnership and success in growing together.

TABLE OF CONTENTS

2021 Issue 4

FBS Board of Directors Wray Hutchinson Chairman James Bitzonis Vice Chairman Jenny Beaudoin Director Brian Carmody Director Steve Grube Director Roz Mallet Director Bobby Pancake Director

ON THE COVER

Mike and Lori Mastro have been franchisees with Buffalo Wild Wings® since the 1990s. They’ve scaled back locations to focus on making one the best it can be and prepare for future growth. Read more from the Mastros about their BWW® journey in the Franchisee Spotlight on page 14.

COLUMNS 2

Chairman’s Column

DEPARTMENTS 4

FBS Member News

11 One Topic: 10 Facts

Recognitions

13 Look, Listen, Read

Event Calendar

14 Franchisee Spotlight

Larry Podlogar Director

FEATURES

Christy Williams Executive Director

FBS Editorial Board

16 BWW Teams Managing Difficult Supply Chain Challenges by Sean Ireland, FBS director of communications

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

Team Up for Kids Fundraiser Sets Records in October

12 Spotlight on the 117th Congress: Rep. Josh Gottheimer (D-NJ-05)

20 Pandemic Consequences Complicate Development Decisions by Sean Ireland 24 Slips, Trips and Falls: Three Injury Hazard and Prevention Tips by Lockton Affinity 26 Make a Thoughtful Response to Employee Labor Activity by Douglas H. Duerr, Elarbee Thompson Sapp and Wilson LLP 28 Are You Prepared for Year-End Payroll Adjustments? by Stacy Smith, Mize CPAs Inc. 29 Trust is the Critical Element by Dan Coughlin, The Coughlin Co. 30 I Think What You Meant to Say Was ‘Thank You’ by Dennis Snow, Snow & Associates Inc.

Christy Rowan Vendor Sales and Development Manager christyr@myfbsonline.org 678-439-2284

31 As COVID-19 Went, So Went the Nation: The Results of the 2020 American Time Use Survey by Laura Stack, The Productivity Pro®

Design and Layout

DIRECTORIES

Kristen Thomas KT Graphic Design ktgraphicdesign@gmail.com

10 Associate Member Listing 32 Advertisers Guide and Editorial Calendar

Headquarters 1701 Barrett Lakes Blvd. NW Suite 180 Kennesaw, GA 30144 Phone: 678-797-5161 Fax: 678-797-5171

In keeping with our commitment to the environment, this publication is printed on certified, environmentally-friendly recycled paper using eco-friendly inks. Franchise Business Services publishes The SCORE. Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of Franchise Business Services. All Rights Reserved.

Printed in the U.S.A.

www.myfbsonline.org

Celebrate the New Year With Hope and Determination

he turn of the calendar to a new year is often a time of reflection and evaluation. We consider where we stand after another year of challenges, triumphs,

mistakes and accomplishments, and we often make adjustments that we hope will carry us forward toward personal improvement.

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As we take stock of where we stand at the end of 2021, we understand that our businesses have faced another year of unprecedented hurdles. The coronavirus pandemic continues to affect all that we do in ways that were hard to imagine two years ago. While COVID-19 infections continue to ebb and flow, we are also contending with a long-term labor shortage. Finding and keeping our teams at full strength remains an ongoing challenge not only at our Buffalo Wild Wings® sports bars, but also across the restaurant industry and the economy at large. The labor situation is also one contributing factor in the supply chain shortages that our businesses have encountered in the last 12 months. Who would have thought that we would have to worry about our BWW®s facing regular shortages of chicken wings and ranch dressing? The good news is that no matter what the challenge, our teams are stepping up every day to meet them. Sometimes the solutions are not ideal, but they are the best we can do given these unusual circumstances. In fact, in this issue of The

SCORE, you’ll read about how many individual Buffalo Wild Wings teams often work together to overcome commodity and supply shortfalls and make sure that our guests get the best experience we can give them. There’s a great lesson there. Our people are stepping up when needed, adapting to the difficulties and working harder than ever to overcome them. Be sure to take time and thank them for what they are doing in trying times. Imagine what success they can achieve when they apply the lessons learned from the last two years to a better business environment! Taking stock of the past naturally means considering what may be ahead. Obviously, we are not through the pandemic, and in addition to what we’re currently experiencing, there are obstacles yet to come. The first on the horizon is the Occupational Safety and Health Administration (OSHA)’s vaccine mandate for employers with 100 or more employees, which adds yet another layer of regulation that our businesses must manage. Enforcement by OSHA could begin in January and February if the

mandate is upheld by the courts. Even given today’s difficult conditions, as business owners and entrepreneurs, we should be prepared to move forward with enthusiasm and optimism. The road may continue to be difficult in the short term, but I have faith that the combination of a great brand and our steadfast dedication to our businesses will be rewarded with long-term success. As you consider where you stand moving into the new year, celebrate your achievements and plan the adjustments you need to move forward on better footing. Yesterday is over, and today is a new day to make the best of the circumstances we face. Tomorrow is full of possibilities. I wish you all a very prosperous and healthy 2022!

Wray Hutchinson

MEMBER NEWS

Awesome Holdings Location Raises Money with ‘Pie Your Manager’ Night A

wesome Holdings LLC has developed a creative and fun way to raise money for Team Up for Kids while also bringing team members and their families closer together at the company’s Buffalo Wild Wings® locations. At Awesome Holdings’ Nashua, New Hampshire, sports bar, the company hosted a Pie Your Manager night on Oct. 18. The event was developed to benefit the Buffalo Wild Wings Foundation’s Team Up for Kids Fundraiser. Team members donated $10 to throw a whipped cream pie in the face of one of the sports bar’s managers. They could donate $20 to throw one at Regional Manager Ben Lee. “We made this a family affair where our team members brought their kids and significant others for the event,” said Jay Johnston, general manager of the sports bar. “There was pizza and soda offered. This was also a great way to celebrate the holidays with our families together.” About 30 people attended, and 17 cans of whipped cream were used to pie the managers. More importantly, over $400 was raised during the event and was part of a total of $2,500 raised for the foundation at the restaurant during October.

Managers at Awesome Holdings’ Nashua, New Hamphire, location raised more than $400 with a Pie Your Manager event.

This was the Nashua location’s first time to try “Pie Your Manager,” but the Awesome Holdings BWW sports bar in Manchester, New Hampshire, has done it twice. “We were very pleased with the success of this event, and it was great to see the team get so invested in helping the community. It was a great team-building event with an even greater cause,” Johnston said. “We will hold another one of these events in the future because it was such a fun time for us all.”

Buffalo Wild Wings Restaurants Across Delaware Host Local Sports Radio Show F

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ootball season is something that many people look forward to each year. Buffalo Wild Wings® restaurants across the country love hosting these fans, whether they are supporting their local high school, college or professional teams. For High 5 Hospitality, football season was back in full swing this year for several of its restaurants in Delaware. A local sports radio show, “Delaware Live Sports Weekly,” broadcast from several of High 5 Hospitality’s restaurants in September and October, including the Christiana, Middletown, Rehoboth and Dover stores. The locations of the show depended on where the biggest game was each week. Airing each Wednesday at 7 p.m., the show took place live from Buffalo Wild Wings and covered high school sports rankings, recaps, highlights and more. Coaches and players were interviewed during the show, which was always streamed on the Delaware Live YouTube channel. The company saw an increase in guests on Wednesdays for the show. “Everyone loves going out and supporting their local teams, especially if that team was going to be featured on that week’s show,” said Samantha Jenkins, social media specialist for High 5 Hospitality. “Sports fans tend to love wings, so the partnership is a perfect match.” Delaware Live has been partnering with High 5 Hospitality for several years now. High 5 Hospitality is honored to be the restaurant group that brings the Delaware sports community together

The Delaware Live Sports Weekly show took place at High 5 Hospitality BWW restaurants across Delaware this fall.

each year. Shining a spotlight on high school student-athletes was especially important in 2021 because for the past year and a half, it’s been difficult to give them their time to shine. “Seeing the community be able to bond over wings and local sports teams was really special,” said Jenkins. “Our partnership with “Delaware Live Sports Weekly” has been mutually beneficial, and they’re a great organization to work with.”

MEMBER NEWS Buffalo Wild Wings in Manchester, New Hampshire, Hosts Fundraiser for Injured Fire Captain

Members and supporters of the Manchester Fire Relief Association represented many of the guests who supported the fundraiser at BWW.

Capt. Steve DesRuisseaux of the Manchester Fire Department was released from the hospital three weeks after sustaining serious burns.

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n Nov. 6, the Manchester Fire Department in New Hampshire responded to a serious house fire. Capt. Steve DesRuisseaux was badly burned in the fire while attempting to rescue the residents. He endured second- and third-degree burns to 35-40% of his body and was flown to Massachusetts General Hospital in Boston to receive treatment. Members of the community raised money for his hospital bills at a Buffalo Wild Wings® Eat Wings Raise Funds program the week of Nov. 15 at franchisee Awesome Holdings LLC’s restaurants. Regional Manager Ben Lee met with Lt. Stephen Pearson of the Manchester Fire Department, a regular guest of the sports bar, to brainstorm ways to support DesRuisseaux. The duo came up with the idea to hold the fundraiser for an entire week at three of Awesome Holdings’ locations rather than a one-day fundraiser at one location. This helped ease the pressure on BWW® staff and gave supporters options to dine in or carry out across New Hampshire. From Nov. 15-21, the three restaurants in Manchester, Concord and Nashua brought in almost 500 checks that supported the cause, totaling $3,000 to be donated to DesRuisseaux and his family. For Awesome Holdings’ Lee, the best part of hosting this event was seeing how excited the staff members were to help facilitate a fundraiser for a great cause and seeing how many members of the community showed their support. DesRuisseaux was released from Massachusetts General Hospital on Nov. 29 and was welcomed back to Manchester with a procession by local fire and police. In an interview with Boston CBS Affiliate WBZ, DesRuisseaux said it has been a strange feeling being the one in need of medical attention instead of being the one to help those in distress. “I’m always on the other side of this, so for me, relying on so many people, it’s not normal for me,” he said. “I’m just happy I’ve had such a great support system. I can’t thank everybody enough.” Lee and the rest of the Awesome Holdings team were honored to help DesRuisseaux and his family. “These events are what makes this job so rewarding,” he said. “Being able to help others and see the outpouring of support by the community is a great feeling.”

MEMBER NEWS

High 5 Hospitality Implements Employee Referral Program

High 5 Hospitality team members show off their $100 cash bonuses for referring new job candidates.

n the spring, High 5 Hospitality, operated by franchisee Bobby Pancake, created a new initiative to attract candidates to work at its restaurants. The company operates eight Buffalo Wild Wings® sports bars across Maryland and Delaware, as well as several other restaurant concepts. Candidates are encouraged to fill out an application on www.High5Hospitality.com and to put the name of the person who referred them on their application under the “referral” section. Once the new person has been employed for 100 days at any of High 5 Hospitality’s sports bars, the team member earns $100 cash. “We value team member input when it comes to who they want to work with. There’s no better way to ensure co-workers will enjoy their time at work than by having people refer their friends

or family to the same job,” said Samantha Jenkins, social media specialist for High 5 Hospitality. The company spreads the word about the referral program through emails, social media and word of mouth. The details and physical flyers are sent to general managers, who then distribute the information and flyers to their team members. High 5 Hospitality also posts about the referral bonus on its social media outlets and mentions it in the monthly company newsletter. After the success of the initial program launch, the company decided to expand the program at certain locations until the end of 2021. It is offering an even larger incentive of $1,000 for candidates that get hired and stay on board for one year. Not only does the referring team member get $1,000

throughout the course of the year, but so does the candidate. The company also created a program specific to managers – referring team members will earn $3,000 for any referred management candidate that gets hired as a manager and stays for a year, while the management candidate will receive $2,000 for staying on for a year. Since its creation in April, the program has 197 referrals. It has been a great way for High 5 Hospitality to attract new candidates while also giving a voice to current team members. “When we hire folks, it’s because we see something great in them,” said Jenkins. “There is some truth to the old saying ‘birds of a feather flock together.’ So, if you hire one great team member, there is potential for them to bring along other great team members.”

Four M Franchising Team Member Donates Kidney to Brother

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esnik (Bes) Krasniqi began his career with Four M Franchising at the Buffalo Wild Wings® in Stamford, Connecticut, in 2010 as an hourly employee. He exceled in every department, working his way up to assistant manager of the Milford restaurant before being promoted to general manager at his home store in Stamford. In January of 2020, Krasniqi’s youngest brother, Besim, went to a walk-in health clinic with dizziness, blurred vision and flu-like symptoms. The doctor took his vitals and immediately noticed something wrong. Besim was transported by ambulance to Yale Hospital and spent three weeks in the

Besnik Krasniqi has worked for Four M Franchising for 11 years. He recently donated a kidney to his youngest brother.

intensive care unit. It was determined that his kidneys had failed, and he would need a transplant to survive. Bes immediately started the testing process in hopes that he could donate one of his kidneys to his brother. After

a grueling four months of testing, it was determined that Bes was a match. The lifesaving surgery took place last spring, and both brothers have made a full recovery. “Bes is an incredibly unselfish person. He is always willing to help in any situation,” said Four M Franchising President Jim Bitzonis. “Bes has been with us for over 10 years, and I’ve gotten to know him pretty well. I’m amazed by his generosity, work ethic and commitment to his team, his family and our company. We are very fortunate and grateful to have him.” Krasniqi has been back to work and continues to excel daily.

MEMBER NEWS

Jones Honored for Service as FBS Vice Chairman F

ormer Franchise Business Services (FBS) Vice Chairman Mark Jones was honored by his fellow franchisees at the FBS membership meeting Oct. 27 at the Buffalo Wild Wings® corporate convention. Jones, who had served as FBS vice chairman since 2014, stepped down from the role at the meeting. He was replaced by Jim Bitzonis of Four M Franchising LLC. Jones, an attorney, joined with his brother, Mike, and other partners to become a BWW® franchisee in 2002. Their company operates 36 Buffalo Wild

Wings sports bars and employs nearly 2,000 people. At the meeting, FBS Chairman Wray Hutchinson presented Jones with an award recognizing the time and service he gave to FBS during his terms in office. Jones has been extremely involved in the planning and organization of the annual FBS Summit and helped with outside counsel on the negotiation of several legal contracts with Buffalo Wild Wings. While no longer serving as vice chairman, Jones will remain involved in FBS.

EVENT CALENDAR FBS Summit May 9-11, 2022 Hyatt Regency Coconut Point Bonita Springs, Florida

Former FBS Vice Chairman Mark Jones, left, accepts an award from FBS Chairman Wray Hutchinson during the FBS membership meeting in Las Vegas in October.

Buffalo Wild Wings in Sioux Falls Holds Fundraiser for Team Member in Car Crash T

A three-day event in August raised money to pay medical expenses for Gia Elumbaring.

Washington High School students supported their classmate by supervising the games. Local rock/country cover band Eclipse performed a small outdoor concert, and Big Country 92.5 FM broadcast live on site. About $10,000 was raised. In 2022, LaHaise plans to honor the team members who lost their lives through a scholarship program at Washington High School.

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multiple surgeries and extensive physical therapy while looking forward to her senior year of high school. Meanwhile, her BWW® family planned a three-day fundraiser to help her with medical expenses. The fundraiser occurred in late August. For every boneless wing sold, 25 cents were donated to Gia. Sunday was the main event, with Games Galore providing inflatables for the kids.

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ragedy struck the Sioux Falls, South Dakota, B-Dubs® family on May 8. Three team members were involved in a devastating car crash. Javier Velasquez, 17, and Pascal Niyonkuru, 20, lost their lives on the scene. Gia Elumbaring and her boyfriend at the time sustained life-threatening injuries. Both Buffalo Wild Wings® and the community have rallied to support her recovery. “As a leader, honestly, I had to take a moment. In one ride home, our B-Dubs family had changed. We lost two members and had another sustain serious injury. Right away we needed to take care of the staff and address that this was going to be something huge. I’d worked with Javi and Pascal for two years and Gia for months, and I have two kids at home. Thinking about their lives cut so short and Gia’s changed so drastically, I needed to make sure I could get the staff where they needed to be,” General Manager Randy Peterson said. Franchise owners Todd and Susan LaHaise supported their Sioux Falls team members. They did some immediate things for the victims’ families and planned to do something big for Gia once she began to recover. Gia underwent

Team Up for Kids Fundraiser Sets Records in October D

uring the month of October, sports bars raised $1.38 million to support the Buffalo Wild Wings Foundation mission to “Fuel Champions of the Next Generation.” This is the most raised during the yearly one-month campaign and is a remarkable accomplishment given the current operational challenges. Other firsts for this campaign include two sports bars raising more than $40,000!

For the first time ever, franchisees and company field leadership will have the opportunity to nominate local youth-serving organizations to receive these funds.

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Funds raised will directly benefit the local communities in which they were raised. For the first time ever, franchisees and company field leadership will have the opportunity to nominate local youth-serving organizations to receive these funds. They can continue to support their local Boys & Girls Club if desired or select another nonprofit that is doing great work to benefit the youth in their community. The Buffalo Wild Wings Foundation will continue to support Boys & Girls Clubs of America’s ALL STARS program with a $1 million donation.

Thank you to those who participated in the Team Up for Kids fundraiser. Your support will help change the lives of kids. The foundation is excited to see what

organizations you will support in your community and looks forward to sharing stories of how these grants are impacting kids across the country.

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TO LEARN HOW TO SUPPORT YOUR COMMUNITY CONTACT CATHERINE STRANBERG AT THE BUFFALO WILD WINGS FOUNDATION AT CSTRANBERG@INSPIREBRANDS.COM

Support the Vendors COMPANY

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One topic: 10 facts

Robotic Takeover:

Automation in the Restaurant Industry

1 2

The National Restaurant Association recently reported that 4 in 5 operators are understaffed.

This includes 81% of full-service operators and 75% of limited-service operators. Robotics can help ease the staffing challenges and speed up operations.

Forty-seven percent of full-service operators and 37% of quick-service operators feel new technology

is key for their businesses.

Restaurants are also warming up to the idea of using automation technology to fill labor gaps, with 50% of U.S. operators planning to deploy this technology in the next two to three years.

Miso said its Flippy 2 robot can fill a tough role in kitchens — the fry station. The robot can cost up to a month.

The bot, which retails for up to $20,000, has been tested at restaurants including California Pizza Kitchen.

Along with making food in restaurant kitchens, expect to see more robots rolling food out to tables. As of May this year, Keenon Robotics said it had 6,000 of its server robots already working in hotel and restaurant industry locations around the world.

10 20

… its fastest rate of improvement in more than years.

Sources: CNBC, The Spoon, Business Insider, Restaurant Dive

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Economic data suggests that the shift to automation has been underway for months now. Productivity surged 5.4% in the first three months of 2021...

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It’s becoming crucial for restaurants to deploy technological solutions that ease labor pressure. The quit rate among hospitality workers has reached 6.8%, more than double the national average, and full-service restaurants are operating with 6.2 fewer kitchen employees than they were in 2019, according to the Bureau of Labor Statistics.

6$3,000

Spotlight on the 117th Congress:

Rep. Josh Gottheimer (D-NJ-05) Q

What skills or perspectives from your background do you apply as a public official?

During my time working for President Clinton, Sen. Frank Lautenberg and Speaker Thomas Foley, I learned that it’s possible to find a bipartisan path forward without compromising your core values. I firmly believe that it doesn’t matter if an idea comes from the Democratic or Republican side of the aisle – only whether it will help my constituents in New Jersey’s fifth district. My experiences working in the private sector, at Microsoft and Ford, taught me the importance of understanding the needs of the business community. This has been invaluable as I work with my colleagues to support local businesses and ensure our local economies can recover from the pandemic.

Q A

You are co-chair of the bipartisan Problem Solvers Caucus in Congress. How do groups like this benefit the business community and the nation?

The Problem Solvers Caucus, which I’m proud to co-chair with my Republican colleague, Rep. Brian Fitzpatrick (R-PA-01), is focused every day on fixing the most pressing issues facing our country. For instance, in late 2020, when we were negotiating the bipartisan emergency COVID-19 relief package, the Problem Solvers Caucus fought to extend the Paycheck Protection Program (PPP) and invest in COVID-19 vaccine production and distribution. We also helped get bipartisan legislation passed, the Paycheck Protection Program Flexibility Act, to make PPP more accessible for more businesses looking to weather the COVID-19 economic storm.

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Q A

What do you see as the current biggest threat to small-business owners? What challenges have you helped small businesses in your district overcome?

Small businesses are the bedrock of the communities I represent in north Jersey. They’re our job creators and the backbone of our economy. I’m dedicated to working across the aisle to lower taxes, cut outdated and unnecessarily burdensome red tape, improve access to capital, unleash more economic opportunity and create jobs – to continue making my district a great place to live and do business.

Right now, many businesses are facing supply chain issues, shipping delays and rising costs. I’m working in Congress and back at home in New Jersey to do everything I can to resolve our nation’s supply chain crisis – to cut costs for our families to make life more affordable and support our local businesses. Earlier this fall, I convened the Port Authority of New York and New Jersey, the Federal Maritime Commission and shipping stakeholders at the port in Newark, New Jersey, and announced steps to combat supply chain issues, including critical congressional oversight, dedicated federal action from the Federal Maritime Commission and relevant authorities to investigate the practices of major ocean carriers for any collusion or anti-competitive practices, modernization of how the U.S. Department of Homeland Security tracks and clears ship traffic, and passing key bipartisan ocean shipping reform legislation – the Ocean Shipping Reform Act of 2021.

Q A

In what ways are you seeking feedback from small businesses in your state/district and using that information in Washington, D.C.?

I’m always going around my district to meet with business owners and workers to learn from the different industries that make up North Jersey’s local economies and to hear about any issues they may be facing. I take all of what I learn from my constituents back to Washington to inform what I’m doing in Congress, because it’s my job to fight for them.

Q A

How has your role on the House Financial Services Committee allowed you to affect legislation affecting small businesses?

I work with my colleagues on the Financial Services Committee to help cut burdensome regulations for large and small businesses alike, to expand access to capital while protecting consumers and to help make life more affordable in north Jersey. When legislation is moving through the Financial Services Committee and through Congress, I’m focused on ensuring small-business provisions help in the short term, especially as we continue recovering from the pandemic, and help build long-term growth.

LOOK LISTEN READ

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.

Zoho Creator, a low-code app-development platform, helps you build tools to streamline and automate your business’ mundane tasks. It gives you the power to consolidate all your data management, workflow automation and business intelligence needs in one place.

Originally published in 1983, “Guerilla Marketing” is filled with a wealth of real-world tips and tricks small-business owners can use to take their marketing game to the next level. Whereas traditional marketing wisdom used to suggest that big budgets and lots of resources are requisites for success, author Jay Conrad Levinson thinks otherwise: Every time your small business interacts with anyone outside of your company is an opportunity to market your products and services.

Designed to help busy marketers and business owners discover what works in social media marketing, the “Social Media Marketing” podcast runs about an hour as Michael Stelzner interviews social media experts and explores various social media tools. Some of his best business podcasts are those featuring small-business owners sharing how they found success via social media.

“Business Casual” is the new podcast from Morning Brew brought to listeners by host Kinsey Grant. The episodes focus on a range of topics in the news like breaking up big tech and interviewing CEOs and other executives on hot business topics. The podcast is available on Spotify as well as Apple Podcasts, and the newsletter is also free.

With Delivrd, you can access an online-based inventory management application for free. Using Delivrd, you can create a product catalog; count, receive and issue stock; enable stock level alerts and access your inventory transaction history.

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Unifi helps you manage multiple processes, projects and client communications using an intuitive, integrated cloud-based platform.

Dale Carnegie’s “How to Win Friends and Influence People” is a time-tested classic that’s sold more than 30 million copies since it was released in 1936 – making it one of the bestselling books of all time. Once a successful salesman, Carnegie eventually left his sales career and took up public speaking, and the advice from his seminars is compiled into this book. Learn how to get people to like you, how to convince others that your reasoning is the right way of looking at an issue and how to change folks without them hating you for it.

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With the near-constant change occurring in the startup and tech space, it can be tough to keep up. “Product Hunt Radio,” hosted by Ryan Hoover, is your answer to staying current with all things tech through interviews with world-famous investors and entrepreneurs and the reporters covering them. Whether you want to learn about tech that could affect your business, keep up with trends or apply lessons to your enterprise, this small-business podcast will be useful.

Wave is one of the only truly free accounting software systems – allowing you to use its online-based platform, mobile invoicing app and mobile receipts app without paying anything for a subscription. The Wave accounting app is great for small-business owners, and it offers payments and payroll paid add-ons to give you the opportunity to extend your functionality within a single application.

FRANCHISEE SPOTLIGHT

Lori & Michael Mastro The Mastro Development Group LLC

Mike and Lori Mastro stand outside their BWW location in Tiffin, Ohio.

Year Became a BWW® Franchisee: 1999 Total Number of BWW Locations: Was originally three but now one. Total Number of Employees: 74 How did you and your partner(s) meet? My wife, Lori, and I are currently the only partners. What’s it like to work with family in your franchise business? Working with family is truly an adventure. The dinner table is always entertaining, enlightening and informative. While business is discussed often at home, we still must take the time when we are not working to fully engage with family and friends. Time with family and friends is increasingly more valuable today than ever.

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What drew you to the brand? We originally got drawn to the brand in the late 1990s when Buffalo Wild Wings® had a small but very successful group of franchise operators. In the 1980s, we had visited the original BWW at Ohio State University in Columbus, Ohio, on the corner of Woodruff Avenue and High Street. There may have been only three to five sauces at that time, but the product tasted great, and the food cost was low. Additionally, the labor cost was low as customers ordered and picked up their orders at the counter. Low food cost and low labor cost was obviously a perfect combination because our other operations (Perkins and Michaels Steakhouses) had one or the other, but neither had both, and BWW provided the win-win that we sought. While the service model has changed, we still get a great deal of business profitability and personal satisfaction from the BWW brand due to the incredible sales volumes we experience, the team member relationships we have developed and customer loyalty that all of us as franchisees enjoy. What is your favorite thing about the brand? 1. BWW is simply a fun place to work, a fun place to manage, a fun place to eat and a fun place to call our own. 2. The relationships we have made with fellow franchisees and BWW corporate.

The management team at the Buffalo Wild Wings in Tiffin, Ohio, includes, from left, Jeremy Weaver, Jessica Sell, Mike Mastro, Lori Mastro, Rachel Feick and Codie Ray.

What other concepts do you own? We currently own and operate several entities: • Perkins Family Restaurant & Bakery in Marion, Ohio • SEAL Team 6 LLC – F1 firearms dealer, real estate development • Mastro Development Group – real estate development • TLM Limited – real estate development • TLM Management – accounting, payroll processing, tax compliance • A&M Mastro Trust – real estate development and management with kidney dialysis leasing, urgent care leasing and Mexican restaurant concept leasing What are your current top three business goals? • Provide staff and managers with a decent reliable place to earn a living. • Share the good fortune we receive with members of our communities who are less fortunate. • Make decisions that provide for the common good for all who enter the doors at BWW.

Describe your best recent business decision: The decision to scale down operations and concentrate on making a single unit in a small but highly engaged Midwest town operate at the very highest level possible regarding brand standards, team member coaching and management mentoring. Without a doubt, this combination absolutely ensures customer satisfaction, loyalty, top-of-mind awareness and, ultimately, great profitability. It also gives us an excellent launching pad for what may come: BWW Go Units, other concepts, more real estate deals, who knows? What is the best business advice you have received? My mother and father always told me: • Stick to the basics. Keep it simple and don’t overcomplicate. • Respect your team, and they will respect your customers. We also had an old friend who was very successful in business who said: “In business, if you sell to the classes, you’ll live with the masses. But if you sell to the masses, you’ll live with the classes.” Describe the biggest industry change since you started: • Since we started with BWW, one thing that has changed immensely is the move toward more debit and credit card payments for our products. Cash deposits are smaller today than ever, and the cost of clearing electronic payments has risen sharply simply due to the increased volume of those payments. • On another recent note, the supply chain problems and the resulting cost increases we have experienced in the past few months have been daunting. Not sure where all this will end. Describe your current biggest challenge as a franchisee: • Marketing: It is so difficult today to get your message noticed and then acted upon. Marketing return-on-investment numbers are often lower than expected. Due to the proliferation of cell phones, traditional forms of marketing (TV, radio, print) simply do not get the return one would expect. The huge popularity, the unpredictability and the often negativity of social media can be a double-edged sword. One mistake can kill an entire concept. • That being said, the cost of being in business today is vigilance. We eat well, but we don’t always sleep well. What is your favorite BWW wing sauce? • Mike: Mild • Lori: Honey Barbecue If I weren’t a franchisee, I would be … • Mike: Rock drummer/keyboard player/concert promoter/ music business • Lori: Stay-at-home mother. I love being a mom more than anything. 15 SCORE | 2021 Issue 4

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A special table has been dedicated at the Mastros’ Buffalo Wild Wings for the last two years to honor POWs/MIAs and all service members, particularly those who have been lost in service to the nation. No one is allowed to sit at the table, and it is considered a sacred space that customers are not allowed to alter.

BWW Teams Managing

DIFFICULT Supply Chain Challenges

by Sean Ireland

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ou are a server at a Buffalo Wild Wings® sports bar in any of the brand’s locations throughout the U.S. New guests have just been seated at one of your tables. You approach the group with a friendly smile, a warm welcome and … a list of the things on the menu that won’t be available for them to order. That’s a rough way to start a visit at any restaurant, but for guests and teams at BWW®s – a brand renowned for its menu full of snacking, party and comfort food favorites – it’s a particularly unhappy scenario. Unfortunately, over the last six to 12 months, it’s also been a far-too-frequently occurring one. Managers in the Buffalo Wild Wings system are not alone as

they have struggled with getting their food, packaging and equipment orders filled in a timely manner. There are issues affecting supply chains across the country, for all manner of products and equipment. For BWW particularly, these snags are slowing deliveries, depleting menu staples and supplies, and injecting a heap of uncertainty into the ordering and management processes used to keep operations running smoothly and guests satisfied. Restaurant teams are feeling the strain as managers spend precious time tracking replacement items and arranging for new

deliveries of supplies or even driving to pick them up personally. Front-of-house staff – already filling the breach caused by the labor shortage – get the added stress of making do with short supplies and guests unhappy that the sports bar is out of their favorite menu item. While some managers say that the months-long problems have eased in recent weeks, it’s expected that things won’t return to normal until well into 2022. “We have seen shortages in pretty much every item at one time or another,” said Leah Collins, a district manager for franchise company World Wide Wings, which operates 66 BWW sports bars in seven states. “Most issues we can work through. I think the worst part is not knowing. Most of the time we don’t know that we will be shorted an item or receive less than we ordered until the product arrives.” “Supply chain issues over the past year have been a constant challenge. We have had to spend a lot of time robbing from one store to feed the next to keep supply on hand for our consumers,” said Jeff Carmody, a district manager with JK&T Wings, which runs 92 Buffalo Wild Wings locations. “There weren’t too many trucks in quarters one to three where we got the full order. We have had to use secondary suppliers, even on branded items, to complete orders and needs. This put a lot of stress on our operations teams, and we had to increase communications on needs from store to store. Things seem to have improved in October. Let’s hope this stays that way.” Improvement is welcomed after the difficulties BWW teams have experienced for most of 2021. Reports of deliveries delayed 24-48 hours or longer were common as labor woes – the same ones affecting the restaurant industry throughout the year

– meant a shortage of truck drivers needed to move goods. The trucking industry has struggled in recent years to replace its aging workforce. Combined with other factors, including the increased demand for shipping from consumers buying goods online, the closure of driving schools due to the pandemic and others, shipping companies are short on the personnel they need to fulfill orders, leading to delays up and down the supply chain getting goods to their final destinations.

“The challenges [the supply chain problems] have brought upon operations are that most locations are short staffed due to the environment, and this just adds another layer of stress and time most stores don’t have to chase around product.” – Jeff Carmody

JK&T Wings District Manager Continued on page 18

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Supply Chain

Continued from page 17 Of course, the nation – and the world – are also still struggling to catch up after production was interrupted in 2020 and 2021 by pandemic-related shutdowns. Add it all up, and there are a lot of snags slowing the flow of materials to individual restaurant locations. “The challenges [the supply chain problems] have brought upon operations are that most locations are short staffed due to the environment, and this just adds another layer of stress and time most stores don’t have to chase around product,” Carmody said. The biggest problem, of course, is with food. Running out of staple menu items such as chicken wings and condiments like ranch dressing is the most difficult challenge to overcome. “Running out of the core items that our guests come in to order specifically from us creates frustration,” said JK&T Wings District Manager Tim Wolken. “We can work through not having mac and cheese and brisket because it doesn’t matter to most of our guests,” Collins said. “But you tell a guest that we are out of ranch, and you would think that we just crushed all their dreams. “The absolute worst is when we have supply issues with new items that are put on the menus. Everyone wants to try the new item, and it’s hard when we have to tell the guests that we are out time after time.” “Running out of traditional wings was a first in my B-Dubs® career,” added World Wide Wings District Manager Timothy Eaker. “The guests were quite understanding, which was good to see.”

“Running out of traditional wings was a first in my B-Dubs® career. The guests were quite understanding, which was good to see.” – Timothy Eaker

World Wide Wings District Manager

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Materials such as paper goods, to-go cups and containers have been a problem as well as items like silverware. “It seems like [it’s] constantly backordered,” Collins said. “This frustrates both guests and servers with us resorting to plastic silverware or washing two sets at a time to give to the next table and hoping that someone finishes eating so we can get their silverware washed before the food goes out for the next table.” Equipment shortages are also problematic. JK&T Wings District Manager Jason Garrity noted that a toaster he ordered in October has a ship date of March, and Eaker reported a six-month wait on cold-storage units. “It’s difficult to keep the teams motivated when they are lacking the tools to perform correctly,” he said.

Fortunately, most guests have some level of sympathy and understanding about the problems, particularly once the staff has made some effort to make them aware of an out-of-stock product as soon as possible. “We have done our best to explain to our guests the headwinds we are facing,” said Krystle Tomaszewski, another JK&T Wings district manager. “We explain verbally as well as have signage up explaining the national shortage in hopes they understand.”

“We have done our best to explain to our guests the headwinds we are facing. We explain verbally as well as have signage up explaining the national shortage in hopes they understand.” – Krystle Tomaszewski

JK&T Wings District Manager

Still there are some guests who take out their frustration on the sports bar team, which boosts the stress they already feel because of the long-term COVID-19-related labor shortages that affect operations. “Managers are dealing with guests who are overly upset about the product being out. While most are understanding, this has created some very tense situations for our teams,” Garrity said. “You can feel the tension in the team,” Collins added. “Servers don’t like pulling out the list of items that we are out of to read to the guests. And sales suffer. I don’t know how many times guests have cancelled their orders after learning that we don’t have ranch [dressing] to go with it.” So how do they cope? Teamwork and communication are key for the short term. Many of these managers shuttle supplies between locations to make up for shortfalls. When one sports bar is out of an item, in many cases it relies on another in its area as a backup supplier. “When a truck delivery is running late, we are all shifting product between locations to stay afloat,” Eaker said. “I have made it a point to call before I travel to a location to see if there are any items required that I can bring. Keeping the teams on track with positivity during these times is a high priority.” “The teams know where to turn now. Thankfully my sports bars are close to each other. They source a lot from each other when they can,” Collins said. “They know where to get substitute items to make it through for nonfood items. When trucks are late, they pull together to transfer items to the sports bar that wouldn’t be able to make it through the day otherwise. We have to be a team and communicate. It’s the only way to get through it.” In the longer term, some of the BWW teams are changing

their supply strategies. They are seeking alternative sources for products and leaning more on secondary providers. They are focusing more on forecasting for future needs and the supply chain issues that could lead to shortages in those areas and adjusting orders to compensate. “We have tried to order up in hopes we won’t be shorted too much, and we also share between the region and others as much as possible,” Tomaszewski said. “We have had to buy products from other sources as well, such as portion cups.” “The teams have ordered heavier than their average pars to plan for expected delivery delays,” Wolken said. “We will continue to order heavier on our core items that will not spoil.” “In the past we have always wanted to keep inventory as tight as possible,” Garrity said. “However now, we almost want to prepare for a 48-hour delay in the trucks. We were forced to make some tough choices when orders were capped: Should we order the brisket or order that extra case of hamburgers? We really needed to dig into our items sold and be that much more critical of every item we ordered. Make sure you keep enough of your critical products on hand and find an outside source for items such as gloves, Solo cups and napkins, etc.” This will be the reality of BWW operations until the hitches in the nation’s supply chain can be smoothed. When that happens is still an open question. In late October, Federal Reserve Chair Jerome Powell warned that the crisis could remain throughout 2022. Financial services reporting firm Moody’s Analytics reports that things could worsen at the end of 2021 before supply starts to catch up with demand in the months to come. Until then, it’s likely going to remain a case of making the

“We communicate the challenges and share our wins often. But at the end of the day, we can only do our best, and it’s important to let our teams know that.” – Leah Collins

World Wide Wings District Manager

best of things, cooperating with partners and fellow operators to shift supplies where they are needed most, and maintaining a positive attitude. “I have found that it’s important to keep your teams calm. We can only control so much. It’s no use having everyone stress out about things they can’t control,” World Wide Wings’ Collins said. “We communicate the challenges and share our wins often. But at the end of the day, we can only do our best, and it’s important to let our teams know that.” SEAN IRELAND is the FBS director of communications. You may reach Ireland at 678-797-5165 or seani@myfbsonline.org.

Regaining guest confidence together. Advancing cleaner, safer practices TM

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Pandemic Consequences Complicate Development Decisions by Sean Ireland

ntrepreneurs are perceived to be risk-takers at their core – people willing to step forward where others fear to tread and gamble on themselves and their plans for new ventures. There’s some truth to that.

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Entrepreneurs don’t fear mistakes or failure, and they don’t back away from the road less travelled. They will take risks, but not foolish ones. Most are very well versed in their fields, take what they do seriously and learn as much as they can about the journeys they are taking to be prepared for the twists and turns of the road ahead. Few jump into a venture without first

understanding not only where they want it to go, but also where it could go wrong. That’s what makes the current environment such a tricky one for entrepreneurs, including Buffalo Wild Wings® franchisees. The coronavirus pandemic, now stretching toward completion of its second year, injected a great deal of uncertainty into the environment. The pandemic is a root cause of the ongoing labor shortage and supply chain crisis that continue to roil the economic waters and make planning for existing restaurant operations and development difficult. Continued on page 22

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Development Plans Continued from page 20

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Today, many franchisees and their managers find their time and attention focused on the day-to-day challenges of operating their existing sports bars. From trying to hire and retain employees to looking for secondary sources for products and supplies when they run short, doing the things necessary to ensure that guests have a good experience at every BWW® location has been especially challenging throughout 2020 and 2021. Though many entrepreneurs still want to grow their businesses through expansion or acquisition, those daily hurdles are also leading to long-term economic uncertainty, making the projections on future growth plans more difficult. “The COVID-19 recovery issues are causing obvious challenges and frustrations not only for current operations, but also for decisions on timing for remodels and potential new store growth,” said Roz Mallet, owner and CEO of PhaseNext Hospitality, which has four Buffalo Wild Wings locations. “Inflated costs and availability issues with people, materials and equipment have caused many of us to delay investing capital at this time.” Mallet is also a former board member and chair of the National Restaurant Association, the largest food-service trade association in the world. As well as anyone, she understands what hurdles to development there are as 2022 looms. “Accurately projecting return on capital investments is virtually impossible,” she said. “Effectively staffing at all levels is a daily challenge. Re-establishing an updated status quo/baseline for revenue, cash flow and profit margin is a necessary first step to growing again.” As Mallet noted, clearer financial projections and a more stable labor outlook are only the first steps toward business development in this environment. Franchisees will also need to make calculations about which sales channels and formats will be most important to success for any new growth and make the appropriate choices. A survey by Restaurant Development + Design (rd+d), an online resource for restaurant professionals charged with building new locations and remodeling existing units, indicates there is a variety of opinion in the restaurant industry

about development opportunities. Nearly 45% responding to an October installment of an ongoing 2021 survey said that nontraditional locations, with a mix of on- and off-premise dining, will drive new development in 2022. But 32% indicated traditional restaurant occasions will be the focus of growth. Twenty percent answered that off-premises dining establishments, including takeout-only units, ghost kitchens and virtual brands, will be the biggest source of growth. Whatever shape it takes, any new construction will be affected by price, supply and labor challenges. The same rd+d survey found that 87% of those building new units in 2021 found that construction and materials costs were somewhat or substantially higher than before. Meanwhile, some BWW owners have found that kitchen equipment must be ordered months in advance, and finding enough workers is just as much a problem in the construction industry as it is in hospitality, leading to longer build times. It’s even taking longer to get building permits and plans approved – 62% of those surveyed in June indicated that it was an issue. For those who are ready to take on the challenges, Mallet noted that the current financial health of the restaurants already in operation: sales, EBITDA and profit margin trends also must be considered. Additionally the health of the brand, the relationship between BWW owner Inspire Brands and franchisees, and Inspire Brands’ business and marketing strategies for Buffalo Wild Wings in the next one to three years are important factors. For the entrepreneurs who find that the numbers add up and that they are ready for growth in the current unsettled environment, there’s an additional consideration: how to maintain the culture that is the foundation of an organization’s success and opportunity to expand. As organizations grow, particularly across separate physical locations, it can be difficult to maintain the focus and foundational values that led to success. Keeping those in place to establish and sustain them in new places requires constant communication and training. “Every shift, every leader, every team member has to have an awareness of their impact on each other and the guest,” Mallet said. “Regular conversations at all levels about what the desired culture

"Our business vision is 'Exceptional people delivering exceptional brands.'" – Roz Mallet,

owner and CEO of PhaseNext Hospitality

is, and what it looks and sounds like, are more critical today than ever. Our business vision is ‘Exceptional people delivering exceptional brands.’” As Mallet suggests, communicating what your company’s mission and vision are about to everyone – from managers to team members – is critically important, and teaching those messages takes concerted effort and emphasis over the long term. It should be demonstrated from the top down, explained to every new hire, and recognized and rewarded when it is put into action by someone on the team. The unsettled economic environment makes decisions on business growth more difficult but may also mean that there is opportunity for those who are prepared with the right numbers, planning and processes in place. While some may need to wait until they’re more opportunely situated, in the short term, that presents more opportunity for those who are ready. SEAN IRELAND is the FBS director of communications. You may reach Ireland at 678-797-5165 or seani@myfbsonline.org.

AV over IP is the easiest technology to use for large scale deployments. Compared to fixed port options on the market, WyreStorm’s NetworkHD solution is completely modular. This means that no matter how many sources or displays you have on your system, you’ll have no issues in getting content where it needs to go. Got a video wall where you show the big game, or show multiple games on the same screen? No problem. NetworkHD can do both. The NetworkHD Series has video wall and multiview processing built in, so there is no need to buy additional processing equipment to make sure your customers never miss out. Systems that are difficult to control result in a bad experience for you and your customers. We re-thought how a system should operate. The NetworkHD Touch control apps are the easiest and most intuitive way of controlling your system. There’s no need for complicated configuration. Open the app on your device, whether you have Android or iOS, phone or tablet

the day, save time by turning off all your displays using a single button on the Touch App.

To view our La Porte, Indiana and Morganville, New Jersey Buffalo Wild Wings case studies, visit wyrestorm.com/case-studies

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SLIPS, TRIPS & FALLS: Three Injury Hazard and Prevention Tips

lips, trips and falls are a leading cause of injury for both workers and customers, resulting in thousands of workers’ compensation and general liability claims for businesses every year. Studies show such injury claims can be expensive. Workers’ compensation claims for a slip, trip or fall cost an average of more than $45,000 to settle, while general liability claims can total $20,000. Every slip, trip or fall has the potential to result in a serious injury or even death, making the stakes too high to ignore. Thankfully, most slip, trip and fall accidents can be prevented with proper awareness of the hazards and the right safety precautions. With these tips, protecting your business from slips, trips and falls is as easy as one-two-three.

1. Watch out for slip, trip and fall hazards.

When it comes to restaurants like yours, slip, trip and fall hazards are everywhere, from the parking lot into the dining room and kitchen, along the floor and even up off the ground. While some hazards are obvious, others can easily be overlooked. Make sure to watch out for these hazards:

Slip hazards

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• • • • • •

Spilled beverages Floor dirt and grime Cleaners and wax Water condensation Clogged floor drains Rain, snow and ice

Trip hazards • • • • • •

Mats and carpets Damaged floor tiles Uneven concrete Wires and cords Damaged stairs Entryway doorstops

Other hazards • • • • • • • •

Floor signage Walkway clutter Left-open drawers Holiday decor Potted plants Damaged handrails Poor lighting Broken seating

2. Take action to prevent slips, trips and falls.

Serious injuries can follow when these hazards are present, so it’s important to take action to prevent slips, trips and falls and protect your workers as well as your customers. Be sure to: Keep floors clean, dry and tidy. Always clean up spills and wet spots promptly, display wet floor signs as needed, remove excess clutter, create clear paths for walking, and clear away snow, ice and debris from parking lots and walkways. Improve lighting and visibility. Ensure good lighting inside and out; add task lighting for work areas; illuminate parking lots, paths and walkways; replace burned-out bulbs promptly; and ensure good floor and walkway visibility throughout. Invest in safety features. Replace damaged and missing handrails, add grab bars in restrooms, repair damaged flooring and pavement, and install non-slip rubber mats or rugs around sinks, beverage stations and other accident-prone areas. Manage employee risks. Require slip-resistant footwear, stipulate frequent breaks from repetitive tasks, divide up repetitive tasks such as food prep among several workers and encourage a culture of safety in the workplace.

3. Protect your business from slip, trip and fall claims.

If a slip, trip or fall accident occurs at your business, you could be held liable and face a claim for damages. Make sure you protect yourself by securing the right insurance coverage. Along with slip, trip and fall risk management tips, Lockton Affinity and Elevanta offer franchisees customized insurance

policies to protect against the costs associated with slip, trip and fall accidents. The most common policies needed to protect your business from these claims are workers’ compensation insurance and general liability. Elevanta and Lockton Affinity also offer the following products to fully protect Elevanta franchisees: • Property • Commercial Auto • Cyber Liability • Employment Practices Liability • Professional Liability • Alcohol Liability • Umbrella

Additional benefits of Lockton Affinity and Elevanta

Along with comprehensive coverage, members will have access to: • Complimentary policy reviews – Concerned you don’t have the right protection for your franchise? Email Lockton Affinity at elevanta@locktonaffinity.com with your current insurance policies, and we will review them for free to ensure your business has the right policies and limits in place. • Risk management tools – We offer risk management tools like loss prevention plans, risk management articles and newsletters, and webinars to help you mitigate risk – and lower your insurance premiums – over time. • Efficient interactions – Apply for coverage with a quick application. In the event of an incident, we work to settle claims fast so that you can get back to business.

About Lockton Affinity

Lockton Affinity is the co-broker of the Elevanta Insurance Program. Since 1987, Lockton Affinity has met the dynamic, specialized insurance needs of small to mid-sized businesses, affinity groups, nonprofits, associations and franchises. Today, Lockton Affinity is one of the nation’s leading program administrators, focused on providing comprehensive coverage and best-in-class customer service. Learn more at elevanta.locktonaffinity.com. Questions? Contact the Lockton Affinity team at elevanta@locktonaffinity.com or (844) 403-4947.

The Elevanta Insurance Program is administered by Lockton Affinity, LLC d/b/a Lockton Affinity Insurance Brokers LLC in California #0795478. Coverage is subject to actual policy terms and conditions. Policy benefits are the sole responsibility of the issuing insurance company. Coverage may be provided by an excess/surplus lines insurer which is not licensed by or subject to the supervision of the insurance department of your state of residence. Policy coverage forms and rates may not be subject to regulation by the insurance department of your state of residence. Excess/Surplus lines insurers do not generally participate in state guaranty funds and therefore insureds are not protected by such funds in the event of the insurer’s insolvency. Elevanta will receive a royalty fee for the licensing of its name and trademarks as part of the insurance program offered to the extent permitted by applicable law.

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Make a Thoughtful Response to Employee Labor Activity by Douglas H. Duerr

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he ongoing worker shortage, with little to no end in sight as of the end of 2021, is fueling a wave of employee and labor union activism. Indeed, the month of October 2021 has been labeled “Striketober” by many, with strikes continuing into December as union members reject contracts proposed by their leaders. Labor unions are relishing the moment and the potential for an increase in membership and power, with one labor leader commenting that his union (the Teamsters) expects that more strikes are likely. If you are a smaller operation and (as a reader of this magazine) not in transportation or logistics, you might think you have nothing to fear from this increased activism, but in December, Starbucks, for the first time in its 50-year history, lost a union election at one of its locations. Unfortunately, it is not only employees and unions that are becoming more active. The federal government, in response to President Biden’s campaign promise to be the “most pro-union president ever,” has gotten into the game as well. In a throwback to the Obama administration, not only are we seeing more pro-union initiatives, but there is also a forthcoming and coordinated, multiagency effort to enhance the rights of whistleblowers.

While most (shouldn’t that be everyone?) would agree that whistleblowers bringing forward legitimate concerns regarding legal compliance should be protected from unlawful retaliation, this means that you as a business owner and/or manager need to be extra vigilant in recognizing when an employee is a whistleblower and when an employment action (or inaction) might be considered retaliation. In this context, although the focus of the messaging is on “whistleblowers,” in fact, the federal government’s efforts are directed at all employees who engage in federally protected activity. Thus, while you might think of a whistleblower as someone who complains about workplace safety or issues of food safety, federally protected rights also include things such as complaining about the failure to pay correct wages or about inappropriate jokes of a sexual or other nature, advocating for higher wages (when done with others or on behalf of others) or advocating for collective bargaining rights. It is not all that long ago that employees of franchise businesses, such as BURGER KING and McDonald’s, were

walking off the job and picketing for $15-an-hour wages. A significant number of business owners learned the hard way that some responses to that activity (e.g., terminating employment, warning against such disruptive conduct or prohibiting off-duty employees from soliciting customers to join their effort to improve wages) can result in significant monetary liability (as well as an order to reinstate employees to their former positions). Thus, because of increased union activism and renewed focus by the federal government on the rights of whistleblowers, here are a few common points of potential exposure: 1. If employees are circulating a petition to change the conditions of the workplace, such as wages, standby/on call, permissible attire and so forth, that is a form of protected, concerted activity. That means you should not act against the instigators (or signers) of the petition and should tread carefully in the types of things you say or ask those employees so that you do not accidentally create liability. 2. If instead of a petition, employees communicate with customers about their workplace grievances (e.g., low pay, unfair work hours, etc.), whether that communication is by picketing outside your business or directly speaking with them, this too can be protected activity, although not always. Make sure your supervisors and managers know when they can intervene and when they cannot. 3. If an employee raises a workplace safety complaint, whether internally or to a governmental agency, even if the employee is wrong, the conduct is likely protected. Thus, be cautious before taking an adverse employment action against an employee for raising such concerns, and, if you are contacted by a governmental agency about an anonymous safety complaint,

resist the temptation to figure out who the complainant is. 4. Complaints\questions about whether work time has been correctly recorded and paid, pay checks are on time and the like are also generally protected from retaliation. 5. Complaints of sexual (or other unlawful) harassment, whether by co-workers or customers, can often result in anger against the complainant, particularly from the supervisor or co-worker accused of the conduct. Most everyone should know that retaliation is unlawful in this situation, but, sometimes, the alleged harasser will approach the complainant, apologize and then tell the complainant that s/he should have come to them first on the issue. Is that retaliation? It certainly can be as the complainant is essentially being chastised for having utilized the complaint procedure. While I could continue with other obvious and perhaps less obvious instances when employee conduct could give rise to a right to protection against adverse consequences from their employer, use these examples of when employers have responded unlawfully to employee action to serve as a helpful guide. You should make sure that your supervisors and managers are sensitive to this issue. If confronted with protected activity, they should take a moment to reflect on whether the conduct might be protected and seek guidance on how best to respond before taking an action that could result in liability.

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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Are You Prepared for Year-End Payroll Adjustments? by Stacy Smith

ach year, the Internal Revenue Service (IRS) and the Social Security Administration announce the changes to limits, benefits and taxes for the upcoming year. It’s important to be aware of these changes and share them with your accounting, human resources and payroll staff.

Changes to Social Security Benefits

Perhaps the most significant change heading into 2022 is the increase in Social Security benefits that will be paid to recipients. The Social Security Administration evaluates the Consumer Price Index annually to ensure that the purchasing power of benefits is not eroded by inflation, modifying the cost-of-living adjustment (COLA) as needed. For 2022, the COLA will be 5.9%. To give some perspective, the COLA for 2021 was 1.3% and for 2020, it was 1.6%. The chart below shows the estimated average monthly Social Security Benefits for 2022.

• 2.35% Medicare tax (regular 1.45% Medicare tax plus 0.9% additional Medicare tax) on all wages exceeding $200,000 ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return). For 2022, the self-employment tax imposed on self-employed taxpayers is: • 12.4% OASDI on the first $147,000 of self-employment income (maximum tax of $18,228); plus • 2.9% Medicare tax on the first $200,000 of self-employment income ($250,000 of combined self-employment income on a joint return, $125,000 on a return of a married individual filing separately), plus • 3.8% (2.9% regular Medicare tax plus 0.9% additional Medicare tax) on all self-employment income exceeding $200,000 ($250,000 of combined self-employment income on a joint return, $125,000 for married taxpayers filing a separate return). If an employee works for your business and has a second job, each employer must withhold Social Security taxes from the individual’s wages. Unfortunately, the employee cannot ask one employer to stop withholding Social Security tax once he or she reaches the wage base threshold for his or her combined income. The good news is the employee will get a credit on his or her tax return for any excess withheld.

Other adjustments for 2022 The Social Security Wage Base Will Also Increase

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The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees and self-employed workers – one for hospital insurance, which is commonly known as the Medicare tax, and the other for Old Age, Survivors and Disability Insurance (OASDI), commonly known as the Social Security tax. There’s a maximum amount of compensation subject to the Social Security tax, but no maximum for Medicare tax. In 2021, the first $142,800 of wages was taxed at 6.2% for Social Security, capping the tax at $8,854. Starting in 2022, the wage base increases to $147,000, equating to a maximum tax of $9,114. For 2022, an employee will pay: • 6.2% Social Security tax on the first $147,000 of wages (equating to a maximum tax of $9,114), plus • 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return), plus

401(k) Contribution

401 (k) Catch-up Contribution

Increases to $20,500

Remains at $6,500

IRA – Roth & Traditional

IRA Catch-up

Remains at $6,000

Remains at $1,000

Simple IRA

Simple IRA Catch-up

Increases to $14,000

Remains at $3,000

Health Savings Account (HSA)

HSA Catch-up

- Increases to $3,650 for self coverage under HDHP Remains at $1,000 - Increases to $7,300 for family coverage under HDHP Flex Spending Account (FSA)

Highly Compensated Employee

- Remains at $2,750 for self coverage - Remains at $5,000 for family coverage

Increases to $305,000

Talk with your accountant if you have questions about these amounts or your payroll tax filings or payments. They can help ensure you stay in compliance. STACY SMITH, CPA, is a shareholder of Mize CPAs Inc. – a full-service accounting firm that has provided the Elevanta Accounting & Payroll Solution for FBS members since 2003.

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Critical Element by Dan Coughlin

o sustain a personal relationship, team or organization, the most crucial element is trust.

WHAT IS TRUST? Trust means that I know you will be honest with me, and you know I will be honest with you. Trust means I know you won’t say one thing to my face and say or do the opposite thing behind my back, and you know I won’t say one thing to your face and then say or do the opposite thing behind your back. Trust means I know and you know that we won’t operate in secret to undermine each other or to get our own way. Trust doesn’t mean we are always going to agree on everything. Trust doesn’t mean we won’t ever argue opposing points of view. It just means that our disagreements are out in the open, and if we are both working to support different objectives that we do so in a way that we all know what is happening. THREE WAYS TO RUIN TRUST The three most effective ways to ruin trust that I know of are: 1. Tell lies about a person. 2. Lie to a person or a group of people. 3. Operate in secrecy. LYING ABOUT A PERSON If you really want to ruin a personal or work relationship with an individual or group, make up lies about the person and tell those lies to other people. This is an amazingly effective way to destroy long-term relationships. There’s an old saying about the one thing all people who cheat in a marriage have in common: They always get caught. The same is true when people lie about another person or a group of people. Eventually, they get caught. And then the person who is being lied to loses all trust in the liar. Once a relationship goes through this devastating impact it is very, very, very difficult to ever regain that trust.

DAN COUGHLIN provides both individual and executive coaching and group coaching programs on management, leadership and teamwork. To visit his free Business Performance Idea Center, go to www.thecoughlincompany.com.

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CONCLUSION Work to build trust every day. Build trust by being honest and upfront, even if you disagree with the other person. Avoid lying about people, lying to people and operating in secret. You can have some real disagreements and arguments and still have a strong relationship. But if you ruin trust, you likely have lost your opportunity to be effective with that individual or group.

THE

LYING TO A PERSON Another super effective way to ruin trust is to lie to a person. You can choose almost any topic (travel expenses, your résumé, your meeting with a client, your conversation with the other person’s boss or employees, etc.), and then you can damage the relationship greatly by lying about it. It really doesn’t matter if it’s a big lie or a little lie, whatever the heck that means. Once you lie to the other person, then the other person will always wonder if you are telling the truth in every subsequent conversation. Just one lie. It seems so small in the moment. It seems that it’s hardly even worth being bothered by. It seems that it could never inflict any real damage. And yet it lingers. It stays in the other person’s mind, and that other person now always wonders if you are telling the truth.

OPERATE IN SECRECY When people in a team or in an organization start having secret gatherings, it’s almost like creating a devastating, invisible virus that sucks the life out of an organization. When people within a team or within an organization have secret meetings where it is not shared who is in the group or what they are talking about, other people start to wonder. They wonder why certain people are in the group, and other people are not. They wonder what is being discussed and what is being decided. They wonder why this is all being kept secret. Just like lies are always eventually heard, secret gatherings are always discovered. And when people find out that other people they work with have been meeting in secret, the trust disappears. It doesn’t matter if there are no deceitful acts within the secret group. When one group tries to keep their organized discussions secret from other groups, then the trust between the groups is dissolved. It’s one thing to say, “Our group is meeting in private, and we will let you know what we’ve come up with.” People understand that other people need to have private conversations to discuss topics and then decide what to do. That’s understandable. What’s not understandable is when groups have secret meetings to drive their agenda forward and never share with anyone else that they are having the meetings or what they have decided to do. When other people find this out, they stop trusting that a conversation with people in this secret group won’t be used in some way that they don’t know about. Groups of people can disagree with other groups in an organization. The different groups can have their own meetings in private. That happens all the time. When other people find out about these kinds of meetings, then they stop trusting those people. Once trust is gone, the personal relationship, the team and the organization are effectively done. People might stay, but the trust and the effectiveness of the relationship are very likely over.

I Think What You Meant to Say Was

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‘Thank You’

s a customer service consultant, I am constantly stressing the importance of the little things to my clients. I believe that people and organizations that focus on the details (big or small) are ultimately the ones that stand out from other businesses. That’s why I am a big believer in the importance of saying, “Thank you.” People appreciate being thanked for their actions. It doesn’t matter if it was for purchasing something, holding a door open for somebody, going above and beyond at work, etc. That small “thank you” (or lack thereof ) from a customer, a random stranger or a boss can go a long way in determining how you behave moving forward. Obviously, saying “thank you” to someone that is paying you for a product or service is just good business (though it gets missed a lot more often than it should). This also applies to people who hold a door open for you or let you in while driving. Maybe saying “thank you” from the car isn’t practical, but a wave of thanks should be common practice. (Though it’s not, and it drives me crazy.) I also believe that thanking your employees for a job well done, or for demonstrating the right behaviors, is something that management should always be doing. Retaining excellent employees is a strong concern for all organizations in today’s workplace. Many studies have confirmed that an employee’s direct boss has the greatest impact on retention. Connected to this is the abundance of employee exit interviews that indicate a lack of recognition or appreciation as one of the top reasons for quitting a company. Therefore, it makes sense that the most effective recognition comes from the employee’s direct manager.

The Importance of Saying ‘Thank You’ Organizations are always on the lookout for the reward/recognition program that will maximize employee performance. While these programs can be effective, it’s important to know that a program can never take the place of a sincere “thank you” from the boss. If you want employees to exceed the expectations of your customers, it’s vital that you recognize them when they perform in a manner that exceeds expectations. If you want employees to perform in a manner consistent with your service standards, it’s vital that you notice when they do so and recognize their performance. Employee Communication Strategies Communication with our teams is always important, but in today’s environment, effective communication is essential. There are several communication strategies that any leader can implement. As we continue to deal with COVID-19 and the impact it has on our daily lives, leaders should be on the lookout to recognize those employee behaviors they desire. Something as small as expressing gratitude for the employee that goes the extra mile can go a long way toward job satisfaction and even building your employees’ self-esteem. There is a very real phenomenon called “extinction.” This occurs when we ignore performance of a desired behavior. If you desire responsiveness from employees, yet ignore them when they demonstrate excellent responsiveness, the behavior will eventually become extinct, and performance will revert to previous levels (not necessarily bad, but not at the desired, higher level). Other studies have demonstrated that recognition has its greatest impact when it takes place immediately after the behavior. When an employee does something special for a customer (external or internal), his or her emotions are elevated because they know they did something good. If the leader recognizes

by Dennis Snow

the employee while the emotion is still high, it dramatically increases the likelihood that the behavior will be repeated. The more time that passes, the less impact the recognition will have (although it may still be appreciated). The point is, don’t lose the magic of the moment when it comes to recognizing performance. I’ve always enjoyed this quote by Gertrude Stein: “Silent gratitude isn’t of much use to anyone.” If someone does something good, tell them and reinforce the behavior. The Importance of Storytelling Another important aspect of recognition is storytelling. Effective storytelling “locks in” recognition. As a leader, if you have recognized an individual for excellent performance, tell the story at the next staff meeting. And really tell the story. Let everyone know what the person did and the impact it had. Better yet, depending on the situation, let the employee tell the story. This not only makes the employee feel good, but it also allows his/her co-workers to join in the celebration. This type of storytelling helps perpetuate a commitment to service excellence. The word “recognition,” in fact, comes from the Latin “to know again.” Effective recognition allows the employee to know again the feeling of performing at a high level or reaching a significant milestone. 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.

As COVID-19 Went, So Went the Nation: The Results of the 2020 American Time Use Survey by Laura Stack

ince 2003, the Bureau of Labor Statistics (BLS) has released the results of the previous year’s American Time Use Study (ATUS) during the following June or July. Not surprisingly, the COVID-19 pandemic was time’s greatest thief in 2020. In addition to stealing time from American workers, the pandemic affected ATUS interviews all year long. None took place from March 19 to mid-May. As a result, the 2020 ATUS is missing data for two months … but that doesn’t mean the data collected were useless. Far from it.

Homework

We all know what we did with our leisure time in 2020: We stayed home. Still, home-based leisure activities were up only slightly. We spent about 32 minutes

LAURA STACK, MBA, CSP, CPAE, is an awardwinning 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 (with fewer than 175 members worldwide). Stack’s clients include Cisco Systems, Walmart and Bank of America, and she has been featured on the CBS Early Show and CNN and in The New York Times. To have her speak at an upcoming meeting or event, visit www.TheProductivityPro.com.

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Taking It Easy

more per day on leisure activities in 2020 than we did in 2019, likely reflecting the 26 minutes per day no longer spent commuting to work, the decrease in daily worktime and the fact that leisure activities are easier to access at home. Most of us preferred to watch TV and play computer games. Many of us had no choice but to increase our leisure-time activities, due to the COVID-19 lockdowns and, in many cases, lack of work. While some trades enjoyed more work, and many made the transition to home-based work, some could not, as they required work outside the home (for example, retail stores and construction). The stats that show us working less last year while playing a bit more result entirely from the pandemic and the measures taken to slow it. I suspect most workers would much rather have been working than staying home, trying to find things to do.

THE

The most obvious difference this year isn’t any real surprise. The number of people working at home nearly doubled in 2020, as COVID-19 forced employers to either shut down or allow their workers to telework using technology and methodologies they had previously avoided or underutilized. New technology and increased familiarity with Zoom, Skype and other programs made “homework” a greater success than ever before. Sometimes, when there’s no other choice, Americans step up and not just make something work, but excel at it. This was one of those times. In the 10 months surveyed in 2020, during the height of the COVID-19 pandemic, the number of people working from home on days they worked shot up from 22% to 42%. Men spent an average of 36% of worktime working from home, up from 20% in 2019, while women pulled off a whopping 49%, rising from 26% in 2019. Meanwhile, commuting and other travel time (store visits, vacations, etc.) dropped significantly across all demographic groups, including both workers and non-workers. As a reminder – or if you’ve never reviewed ATUS data – ATUS samples all demographic groups aged 15 and above. This includes full-time

students, most of whom don’t work, as well as the retired, the homeless and those who choose not to work, including homemakers and full-time parents. That said, millions of citizens were also out of work due to the risk of contagion and the need to maintain social distancing. An average of 39% of the population worked in 2020, as opposed to 43% in 2019. This sharp increase in the jobless rate resulted in the average time spent at work on workdays dropping by about 17 minutes, from 7.7 hours in 2019 to 7.6 hours in 2020. Some might find it odd that these numbers don’t quite reach the standard eight hours per day but keep this in mind: “employed persons” includes both full-time workers and part-time workers. Some individuals worked more than eight hours on most days, some less. Average time worked at home per day rose from 3.6 hours in 2019 to 5.8 hours a day in 2020. Part of the disparity in the numbers between those previously recorded was that the 7.6 hours were for the average workday, while the 5.8 hours were for all days, whether workdays or not, including weekends and holidays. Those Americans able to work in 2020 worked as hard as ever, though their numbers were down significantly. The number of full-time workers was 130,087,000 in 2019; in 2020, the number fell to 120,949,000, a drop of 9,138,000 workers. Over 9 million willing full-time workers were unemployed during the pandemic. The number of part-time workers decreased by 2,034,000, from 36,823,000 to 34,789,000. Therefore, at least 11,172,000 workers were out of work in 2020.

ADVERTISERS GUIDE 2022 FBS Summit

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Comcast Business 5 608-347-6926 Brian_Klinger@comcast.com Ecolab 19 612-750-0759 www.ecolab.com/sciencecertified Elevanta Health 3 678-797-5160 elevantahealth.com/fbs G&G Closed Circuit Events 25 1-888-756-5601 www.ggccevents.com Heineken USA 27 770-377-6959 www.heinekenusa.com

2022 EDITORIAL CALENDAR ISSUE

McLane Foodservice Inc. IF 303-204-9092 lynn.modisette@mclanefs.com PepsiCo BC 732-618-8578 www.pepsico.com

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PUBLICATION DATE

Jan. 24

March

May 27

July

Aug. 19

October

Oct. 18

December

Lockton Affinity IB 844-403-4947 Elevanta.LocktonAffinity.com LSA Security 17 866-550-4388 TVInstallation.com

AD RESERVATION DEADLINE

CALL FOR FRANCHISEE NEWS Issue 1 is due out March 2022. 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 Jan. 31. Our editorial staff can assist in writing the article.

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Happy Holidays?

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