AKFCF Quarterly - Spring 2017

SPRING 2017

2017 AKFCF

CON VE N T I ON

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Everything about this year’s Convention was done Texas Style – Big and Bold! Take a look at all of the highlights.

Also Inside: Service Awards • Shining Stars • “Big Chicken” Renovation • GAC Report

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Cover

SPRING 2017

2017 Convention Wrap-Up: Everything about this year’s Convention was done Texas Style—Big and Bold! At the 2017 AKFCF Annual Convention in Austin, we united our voices by sharing a singular vision: To make the Colonel proud and to bring the Kentucky Fried Chicken Brand back to greatness by being number-one in the hearts and minds of our customers. Read the complete wrap-up beginning on page 26.

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2017 AKFCF

CONVENTION

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Everything about this year’s Convention was done Texas Style – Big and Bold! Take a look at all of the highlights beginning on page 26.

Also Inside: Service Awards • Shining Stars • “Big Chicken” Renovation • GAC Report

features 16

departments 4

GAC Report: Renewable Fuel Standard Update

By Dan Gans and Mary Donohue

The AKFCF, along with Yum! and other franchise organizations, are working on Capitol Hill to ensure this harmful mandate is capped to prevent further damage.

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20 KBP Foods Makes A Big Bet On The ‘Big Chicken’

By Michael Kulp

KBP is renovating approximately 250 stores nationwide, and the Big Chicken is one of two hero assets in which it is investing.

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2017 Convention Wrap-Up

By Kelly Rodenberg and Cory Sekine-Pettite

The Convention always has played a key role in strengthening the Association, the KFC Brand and our restaurants, and this year’s Convention was no exception.

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2017 Shining Stars

By K.K. Snyder

While there are many awards and avenues of recognition available within the KFC franchisee community, many recipients say that it’s the Shining Star award that is most humbling.

54 2017 Franchisee Service Awards

From the Editor

By Michelle Hunt

8 President’s Report

By Greg Atwell

10 NCAC Report

By Tom Slater

12 In the News

62 CARIBLA Report

By Zaira Guevara

64 RSCS Member Programs

By Lindsay Krebs

66 Regional Short

By Clinton Lewis and Deborah Ossanlo

68 Executive Director Update

By Kelly Rodenberg

70 Legal Update

By Ron Gardner

72 Looking Back

By Paul Gereffi

Like their iconic founder, KFC franchisees also have proved their staying power. For many franchisees, their business has truly become a family affair, with second and third generations of extended family keeping the business vibrant and thriving.

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One Voice, One Vision Official Publication of the Association of Kentucky Fried Chicken Franchisees

6By Michelle Hunt

What a fantastic convention! It was so nice to see everyone and to feel that great family unity that we share every time we get together. There is really nothing quite like our franchise family and I’m so thankful for that. We are united in our partnerships with one voice, one vision.

I want to congratulate the AKFCF executive and convention committees on the outstanding program they provided for us as well as how they re-imagined the format to freshen up our reunion. Pair that with the great accommodations of the Marriott and the unmistakable atmosphere of Austin, Texas and we had quite an event.

If you were unable to attend the convention, I hope you’ll spend some time with this issue of the Quarterly, which recaps fully all the events and news from Austin starting on page 26. Additionally, I encourage you to speak with your fellow franchisees who were in attendance to learn with they brought back to better their businesses and themselves. Mere words cannot express the important information conveyed and the unity felt among the franchise family.

It never ceases to amaze me how active and involved franchisees are within our organization – not just for themselves, but also for the entire franchisee family and the Brand. Your tireless efforts are what keep us grounded through the good times and what propels us through the hard times. Many of these selfless individuals were honored with awards and accolades over the past year and we have profiled them in this issue.

In the pull-out directory you will find the dates and locations of future regional meetings and AKFCF conventions where you can get involved, gather information, share best practices and discover what the AKFCF and your fellow franchisees can do for you.

You also can access the AKFCF Web site 4

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AKFCF QUARTERLY MISSION STATEMENT

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

– www.akfcf.com – or the AKFCF meetings app for more information on meetings, resources, the AKFCF Quarterly digital magazine, etc. Contact Debbie Newton for access or other question about these resources.

Don’t miss the GAC’s update on the Renewable Fuel Standard on page 16 and coming up in the Summer issue they will provide an extended summary of life since the election as well as what they expect for the future. On page 20 we were fortunate to hear from KBP Foods on their renovation of the Big Chicken in Marietta, GA. The Big Chicken holds a special place for the staff of the AKFCF Quarterly since Marietta is also the home to our publisher, Lionheart Publishing.

Lastly, after this issue we have to say goodbye to an amazing member of our AKFCF Quarterly team. Cory Sekine-Pettite has been our publishing editor at Lionheart for several years and we’ve enjoyed his support and hard work hoping that he’d never move on but knowing a talent like his would likely be noticed. We will miss Cory terribly, but welcome back Brooke Schmidt who has worked with us previously and look forward to our continued partnership.

Best wishes, Cory!

I hope you enjoy this issue and discover new ways to get involved with the AKFCF at the regional and national level through active participation and sharing of information to help you, your fellow franchisees and the Brand. Meanwhile, I’ll try to make it through my oldest son’s high school graduation and college orientation without crying a river and being the most embarrassing mom. Here’s to a happy, safe and prosperous summer!

Warm Regards,

AKFCF EDITORIAL TEAM

AKFCF President Greg Atwell Editor Michelle Hunt

Assistant Editor Julie Mantlo

Editor Emeritus Jeanine Bagshaw Darlene Pfeiffer AKFCF Administrative Director Debbie Newton

Communications Chair Kevin Schlutz

Past President Chris Fowler The AKFCF Quarterly (ISSN 1071-9873) is published by the Association of Kentucky Fried Chicken Franchisees for its members and their friends. AKFCF is the independent Association of Kentucky Fried Chicken Franchisees.

Franchisee Editors: Michelle Hunt 14812 N Avenue, Columbus Junction, IA 52738 Phone: (319) 728-3282 Fax: (319) 728-2940 michelle@centraliowakfc.com Julie Mantlo 855 Lovers Lane, Suite 111, Bowling Green, KY 42103 Phone: (270) 783-8880 julie@rogmancorp.com Zaira Guevara (International Liaison) Pty # 69328, P.O. Box 25207, Miami, FL 33102 Phone: (305) 384-4242 (U.S.) (011) 506 2208-7828 (Direct) zguevara@caribla.com

POSTMASTER: Send address changes to Lionheart Publishing, Inc., 506 Roswell Street, Suite 220, Marietta, GA 30060.

Copyright ©2017 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 10719873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation.

AKFCF ADVERTISING AND EDITORIAL SUPPORT OFFICE

Send all advertising and editorial submissions for AKFCF Quarterly to:

Lionheart Publishing, Inc. 506 Roswell Street, Suite 220, Marietta, GA 30060 USA Toll Free: (888) 303-5639 Phone: (770) 431-0867 • Fax: (770) 432-6969 E-mail: lpi@lionhrtpub.com Web: www.lionheartpub.com

President John Llewellyn, ext. 209 llewellyn@lionhrtpub.com

Publishing Editor Cory Sekine-Pettite, ext. 220 cory@lionhrtpub.com

Art Director Leslie Proctor, ext. 228 leslie@lionhrtpub.com

Advertising Sales Aileen Kronke, 678-293-5201 aileen@lionhrtpub.com

Sharon Baker, 813-852-9942 sharonb@lionhrtpub.com

Reprints Kelly Millwood, ext. 215 kelly@lionhrtpub.com

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P re s i d e n t ’s

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A Time Of Reflection And A Look Forward 6 By Greg Atwell

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As my year as your president comes to an end, I wanted to take a moment and reflect on the time that I served and look briefly into the future of the Brand and your AKFCF. What an honor is has been to be able to represent the franchise community this past year. As I have said many times before, I believe this the highest honor any franchisee could have. The position is much more than just planning the Convention. It is having the year to meet and work with great franchisees across the country and to work in partnership with KFCC, the NCAC and the RSCS, as well as our vendor partners.

As I look back at the year, I believe we have made headway in building our leadership in many of the regions. I am excited about the work they are doing to continue to build membership and the knowledge of their leaders.

On a national level, we have started to build a pipeline of great leaders who all have the desire to be considered for the executive board. Jim McKenzie has agreed to be our incoming 2nd VP for 2017-2018. I am extremely excited to have him step into the role and I know he will do a great job.

We are working with our international franchise associations to ensure the AKFCF is providing the support they need. CARIBLA and Mexico are very active and have been attending the board meetings. While the Canadian franchise association has been inactive

As I look back at the year, I believe we have made headway in building our leadership in many of the regions.

I am excited about the work they are doing to continue to build membership and the knowledge of their leaders.

for many years, they are looking at how to unite and start working with the AKFCF. The relationships between the AFKFC, KFCC, the NCAC, and the RSCS are better than they have been in many years. We all have worked to strengthen communication as we move KFC back to the leading QSR brand in the industry.

By the time you read this, we will have launched Zinger across the country. With the momentum created by the marketing program, this should give a great start to spring followed by the Extra Crispy promotion. Continuing to build sales is critical in our turnaround.

KFCC also has a new president.

Kevin Hochman has taken over for Jason Marker. While many of us will miss Jason, we are in great hands as Kevin

leads his team forward on the Brand turnaround. With the help of Melanie Bootes, Trip Vornholt, Bryan Cahoe, Phil Klezmer, John Kurnick, John Chris Caldwell and the rest of the leadership team, KFCC will continue to drive the business forward.

As I move into the immediate past president’s role, I want to introduce you to our incoming president. Many of you may not know Eric Overcash, but I know once you meet him, you will agree he is the right person for the job. Eric and his wife, Diane, live in Charlotte, N.C. They have been in the business for many years. He has served on the SE board and on the NCAC. Eric will be a great leader for the system, and I look forward to supporting him however I can. Please reach out to Eric and Diane and welcome them. I know they would appreciate that.

Moving into the 1st VP position is Bryan Robinson. He and his wife, Vikki, are excited to be a part of the AKFCF executive committee. Currently, Bryan serves on the OEC and Ops Sub committees and is the president of the Upper Midwest. There is no better person to support Eric, and I cannot wait to see the team in action.

In closing, I want to say thanks again for the opportunity to serve each of you.

I am looking forward to continuing the relationships we have built. See you all soon! We are KFC! United with One Voice, One Vision! w ww. akf c f . c o m

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Guest Recovery is Not an Option 6 By Tom Slater,

NCAC Vice-Chair

It has been widely stated that between 2003 and 2013, KFC lost 30 percent of its transactions. That’s not entirely true. What is true is that KFC lost 30 percent of its GUESTS. Customers. People coming into our restaurants. With the Brand Turnaround programs in place, we’ve gained some of those guests—and new ones—back into our restaurants, but the key learning from that time is that we CANNOT AFFORD TO LOSE EVEN ONE. Getting them back is difficult at best, and definitely expensive.

The NCAC has funded the 1-800 program for many years, and in 2015 moved to having our thenvendor Service Check attempt to satisfy customers by offering up to a $20 voucher when they called with an issue. We did that because we found that only about 30 percent of our customer complaints were resolved—meaning 70 percent WERE NOT. Frankly, we received a lot of feedback from some franchisees about this program—giving away food, customers who cheat the system, etc. Over time, like anything else, that died down.

Let me tell you what was wrong with that program: 1. Guests who reported issues via VOC or kfc.com were sent a $5 voucher automatically—regardless of the issue or how much they had spent with us. Not surprisingly, this sometimes made people even 10

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more mad, so they would call the 1-800 line or take to social media.

2. Social media was not monitored, so when people complained it wasn’t just their FRIENDS who heard about it, but it could be repeated to multiples of “friends,” to the tune of hundreds or thousands of them.

3. It did not matter how much a customer spent—the most they would get was $20. It’s easy to spend $20 in our restaurants, and easy to spend far more than that, especially with catering orders.

In spring of last year, members of the OEC, Bryan Robinson and John Pankratz (also on the NCAC), along with KFCC and our executive director, set out to improve on this program. After reviewing RFPs from five vendors, they recommended to the NCAC—which unanimously approved—moving to Market Force Information, effective Feb. 1, 2017.

The primary reason for this choice was that we would have a dedicated team of agents who would handle all complaints, regardless of source (1800, VOC, web, social media) with an actual agent so that every guest felt that they were listened to.

Change is hard. And we’ve certainly heard concerns from many of you about this new program, in particular around the dollar amount of

some of the vouchers. It’s easy to get upset if a guest brings a $50 voucher into your restaurant. But let’s look at some facts: 1. Most customers are following the traditional contact methods.

2. Most cases are resolved WITHOUT compensation.

3. Average value of vouchers is in line with our check average, and fewer than 2 percent are above $30.

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Based on these four pieces of data, the NCAC feels strongly that we have the right program in place but agree we still have some work to do on the following: 1. Agent Training. The team is working closely with Market Force on training agents to better determine the appropriate voucher value. For instance, when a guest has an issue with the mashed potatoes in a $20 fill-up it may not warrant a $20 voucher, but $5 instead. But remember, the agents are often speaking directly with a guest and can read the emotion of that guest better than anyone can, and we must trust (and train) them to do the right thing.

2. Restaurant Team Education.

We need to do a better job educating the restaurants on what to do when a guest brings in a voucher. They need to recognize

the importance of that guest who had a bad experience making the decision to try us once again, and go overboard to ensure that guest has a great experience. Working with the OEC, KFCC will be developing Training Nuggets along those lines.

3. Franchisee Education. A $20 voucher is not worth $20. The reason we use vouchers in the first place is that it provides a perceived value to the guest, but ultimately costs the restaurant the food cost of what the voucher was redeemed for. So that $20 is maybe $6.40 in cost. Or when looking at our average voucher amount of $13.43, the food cost is actually about $4.30. I don’t know about you, but I throw away that amount of chicken in my restaurants every day. We need to do a better job providing you with

the true financial impact of this program, as well as what it means to the short-term and long-term business by better satisfying our guests.

There are a lot of other things the OEC is working with Market Force on, from making the forms easier to read, making it easier to resolve cases, and making it easier to access the dashboard. But those are things that are relatively easy. The three items listed above are on-going and you will be hearing more about them in our NCAC Newsletter as well as at Regional Association meetings.

In the meantime, the NCAC is asking for your support in ensuring that, first, every guest is satisfied and second, that when they’re not, we do everything we can to get them back to our restaurant for another chance.

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KFC to cut antibiotics from chicken by 2018 KFCC plans to stop using chicken that contains antibiotics in the United States by the end of 2018, becoming the latest fast-food chain to move toward a more natural product.

The chain said it is cutting antibiotics from both its boneless and on-the-bone chicken.

Other quick-service chains, such as Chipotle, McDonald’s, Burger King, Panera and Wendy’s, have made similar pledges to eliminate antibiotics in their chicken. But KFCC said it believes it is on the cutting edge in trying to go without antibiotics when it comes to on-the-bone chicken.

Treating farm animals with antibiotics can cause resistant bacteria to grow and if people are infected

from improper handling or cooking, they run the risk of serious illness or death, according to the Centers for Disease Control, “We share the public’s concern about...antimicrobial resistance,” said Kevin Hochman, president of KFC U.S. According to KFCC, the move won’t result in higher prices for consumers because the cost increase is small enough that the company can absorb it. But it won’t be easy. Hochman says growers will have to raise more chickens in order to meet KFC’s size demands without the antibiotics. On the plus side, the move could result in generally healthier birds, since farms will be less crowded.

KFCC worked with more than 2,000 farms, most of them familyowned and managed, in a dozen states to implement the new policy.

“To extend our commitment beyond our boneless menu items to all of our chicken required detailed and thoughtful planning over the past year, including utilizing the USDA’s Process Verified program to ensure our suppliers can meet our requirements,” said Vijay Sukumar, chief food innovation officer for KFC U.S. The move is part of the chain’s attempt to get back to its roots, an image overhaul the company calls “re-Colonelization”—a reference to its iconic founder Colonel Sanders.

KFCC also recently pledged to eliminate artificial colors and flavors from all of its core products by the end of 2018 and to have 100 percent of the menu, except for drinks and third-party products, free of food dyes by the end of this year.

Source: USA Today

Know Your Acronyms

In our business, there is a great deal of terminology and jargon. As more processes and systems are added, the acronyms continue to pile up. Thus, AKFCF Quarterly decided it is time for us all to brush up on the many acronyms you will hear in your daily lives and read about in this magazine. Be sure to pass this along to your employees, or post a copy in your offices.

76(5P) – 1976(5P) KFC Franchise Agreement AKFCF – Association of Kentucky Fried Chicken Franchisees ABR – Achieving Breakthrough Results ARL – Above Restaurant Leader ASAP – American Showman Asset Program AUM – Assistant Unit Manager BDP – Best Demonstrated Practices BOGO – Buy One Get One BOH – Back-of-house BSC – Balanced Scorecard COB – Chicken on the Bone COGS – Cost of Goods Sold CREST – Consumer Reports on Eating Share Trends CSTM – Customer Service Team Member DMA – Designated Marketing Area FA (Or F/A) – Franchise Agreement FIT – Food Innovation Team FSC – Food Safety Consultation FSTM – Food Service Team Member FTF – Freezer to Fryer GAC – Government Affairs Committee HFFU – Heavy Fast Food Users IAYF – International Association of Yum Franchisees (formerly known as the IAKFCF, International Association of KFC Franchisees) KFCC – Kentucky Fried Chicken Corporation LAC – Local Advertising Council LOR – Loss of Revenue NAC – National Advertising Cooperative (merged with NFAC to become NCAC) NCAC – National Council and Advertising Cooperative

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

Yum! Brands recognized on Fortune’s ‘World’s Most Admired Companies’ list Yum! Brands has once again been recognized on Fortune magazine’s 2017 list of the “World’s Most Admired Companies” in the food services industry. The list is one of the most respected indicators of corporate performance and reputation.

Since 1997, Fortune has partnered with Korn Ferry Hay Group, a global management consulting firm, to compile the World’s Most Admired Companies based on the investment value, quality of management, and social responsibility.

To view complete listgo to fortune.com.

Source: Yum.com

years ago. With his leadership, KFC U.S. has grown same-store sales and transactions for 10 consecutive quarters, bringing millions of customers back into the Brand and fostering tighter collaboration with franchisees across the U.S. He previously worked in a number of brand management and marketing leadership roles at Procter & Gamble, including many of the company’s iconic brands in

deodorant, shave, and personal cleaning categories.

“Kevin Hochman is an exceptional brand builder and marketing innovation leader with an extremely strong track record of success,” said Greg Creed, CEO, Yum! Brands. “He has led KFC’s incredible brand re-launch and brought back the greatest chicken salesman in the world, Colonel Sanders, to pop culture. He’s the perfect

Kevin Hochman promoted to president and chief concept officer of KFC U.S.

Yum! Brands announced on March 21, 2017 that it promoted Kevin Hochman to president and chief concept officer of KFC U.S., reporting to Roger Eaton, CEO of KFC Global. Hochman, 43, will assume responsibility for driving overall KFC Brand strategy and performance of the business in the U.S., with a continued focus on customers, franchisees, innovation, and operational efficiency.

Hochman joined KFC U.S. as chief marketing officer over three

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person to continue to grow and elevate KFC U.S. into a distinctive, relevant brand that people trust and champion. Kevin’s promotion is evidence that the power of Yum! Brands is our unrivaled culture and talent which gives us the advantage of drawing from a strong bench of executives when bigger leadership opportunities like this one arise.”

Hochman replaces Jason Marker, who had served as KFC U.S. president for the past three years and has made the personal decision to resign from the company to pursue other opportunities.

“Kevin is a talented leader and brilliant marketer who cares deeply about the KFC U.S. business, his team, and the success of our franchisees,” said Eaton. “He has played a key role in the Re-Colonelization effort — driving structural thinking, collaborative franchise relationships, great brand positioning, and excellent advertising — which has contributed to the Brand’s turnaround in the U.S. Kevin and his team are well positioned to ensure a seamless transition and focused on successfully executing KFC’s long-term growth strategy with our franchise partners in the U.S.” Eaton added, “I want to thank Jason Marker for his strong leadership and the many contributions he has made to Yum! Brands and KFC U.S. over the years and wish him continued success. As we look ahead, I couldn’t be more excited about the strength, growth, and future of the KFC Brand in the U.S. for our customers, employees and franchisees.”

Source: Yum.com

KFC, Pizza Hut customers give Yum China ‘unprecedented insight’ into their eating habits More than 80 million people have signed up during the past year for KFC and Pizza Hut loyalty programs in China, giving Yum China 14

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A KFC in Shihezi, China.

Photo: Wikimedia Commons,

Holdings “unprecedented insight into consumer behavior,” said Yum China CEO Micky Pant.

In early 2016, the loyalty programs had roughly 10 million members, but by the end of March, membership had ballooned to more than 90 million, Yum China executives said during an April conference call with analysts.

Through the programs, customers get coupons and other special benefits. For example, Yum China is driving sales up at KFC on Tuesdays, a typically slower business day, by calling it Members Day and offering weekly incentives.

Yum China has gotten an “encouraging response” from the promotion, said Joey Wat, the new company’s president and chief operating officer.

In honor of the opening of the first KFC in China 30 years ago, KFC also sent out coupons to loyalty program members offering Original Recipe chicken and mashed potatoes with gravy at the original 1987 price.

According to Yum China executives, the promotion generated a lot of chatter on social media, including 70 million views on Weibo, a prominent chinese social site similar to Twitter.

“This was a great way to make a nostalgic connection with visitors across China, many of whom cherish their first visit to a KFC,” Pant said.

In return for membership, Yum China has access to millions of data points about its customers, including what locations they eat at, what they buy, and how much they’re spending.

“This feedback is providing rich information on how to improve our products and service,” Pant said.

Currently, loyalty program members account for 25 percent of Yum China’s business, but executives will look to mine the data for ways to increase the number of times a customer visits KFC or Pizza Hut in a month or year.

Yum China reported positive numbers during the first quarter of 2017, its first full quarter as its own company separate from Louisville-based Yum! Brands. Net income rose 21 percent, to $175 million during the quarter, and diluted earnings per share went up 12 percent, to $0.44, the company reported.

Same-store sales at KFC China rose 1 percent compared to the same quarter in 2016, which may seem low, but Pant pointed out that w ww. akf c f . c o m

KFC was lapping “daunting numbers” — a 12-percent increase in same-store sales (stores open for at least a year) from the first quarter of 2016.

Pizza Hut had a 2-percent increase in same-store sales compared to the same period a year ago. It was the chain’s first increase in 10 quarters, Wat noted, adding that Yum China will look to lift Pizza Hut sales by combining its casual dining and delivery concepts as delivery and digital ordering are a fast-growing sector of the restaurant industry in China.

The China market is known for its volatility, which is part of the reason Yum! Brands spun it off. And if the relationship between China and the United States worsens, it could sour sales at KFC, which to the Chinese is synonymous with America.

Source: insiderlouisville.com

KFC and NZ Post Office partner in home deliveries It may be a small test program, but it could be a sign of much bigger things to come.

In the northern city of Tauranga, New Zealand, KFC is delivering meals via the NZ Post Office. The partnership could be finger-lickin’ good for both entities as KFC can rely on NZ Post’s logistics to make home deliveries and the post office can increase much needed revenue. Not to mention the convenience — and loyalty — that is a byproduct of home delivery.

“NZ Post has an extensive delivery distribution network around New Zealand, and KFC is available in most towns nationwide. With the support of NZ Post, we hope to service the home delivery needs of many more KFC customers throughout New Zealand,” says Ian Letele, CEO of Restaurant Brands, which operates KFC in New Zealand.

KFC offers home delivery in certain locations across the United States, as well as other parts of the world.

Back in New Zealand, up to one-half of KFC restaurants will be involved in the pilot program, according to the New Zealand Herald.

Source: chiefmarketer.com

CONDOLENCES Abagail Ann “Abby” Moran Robinson, of Worthington, Ohio, passed away Wednesday Jan. 25, 2017 after a brief illness. She was the first woman president of Great Lakes KFC Franchisee Association. She married the love of her life, Donald Lawrence (Larry) Robinson on Oct. 12, 1968 and she is survived by Donald and their two sons, Drew (Karah) of Newport Beach, Calif., and Neal Robinson of Norfolk, Va.; and her sister, Rosa Frey (Peg Mangan) of Atlanta, Ga.

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F I N A N C I A L A D V I S O RY

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Photo Courtesy of 123rf.com | Brandon Bourdages

G AC R E P O RT

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Renewable Fuel Standard UPDATE

By Dan Gans and Mary Donohue

T

he

Renewable

Fuel

Standard

(RFS),

is

a

federal

mandate that impacts the price of corn, makes food costs volatile, and harms the environment. Since the

inception of the RFS in 2005 and its update in 2007, the price of corn has fluctuated dramatically. Franchisees have seen a rise in food and commodity prices due to this misguided program. The AKFCF, along with Yum! and other franchise organizations, are working on Capitol Hill to ensure this harmful mandate is capped to prevent further damage.

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G AC R E P O RT

Background

Capitol Hill Update

Corn is a foundational ingredient in the American food supply and is used not only as a value-added product in many of the foods we buy, it also is the primary feed and grain in animal agriculture. Volatility in corn prices causes volatility for every food in the supply, from baked goods to meat products.

Before the RFS was enacted, corn prices were stable, but the RFS has introduced tremendous instability into food commodity markets, resulting in wildly inconsistent prices for corn and animal proteins. The rising prices from the RFS have far outpaced the rate of inflation. Since 2005, the Consumer Price Index (CPI) for food has risen 30 percent compared with a 22-percent increase in core inflation during that same time.

The RFS affects every restaurant’s bottom line. The mandate has increased prices on vegetables, meats, dairy products and grains, which has increased food costs up to 10 percent overall for many of America’s small business owners, including KFC franchisees. This price volatility makes it harder for individual restaurants to continue to offer affordable options to their customers.

The RFS adds $3.2 billion annually in costs for restaurants, which is money that could be spent on creating value for consumers, job creation, or investment in local communities.

The RFS has been a point of contention on Capitol Hill for Republicans for many years. Those in support of the mandate believe it is good for the economy and for job creation. Those in opposition believe it is harmful to food and commodity prices, as well as fuel tanks. Many Democrats are opposed to the mandate because it has harmful impacts to the environment and increases costs for some farmers.

Recently, President Trump sent a message of support to the ethanol industry saying he will ensure that the EPA’s renewable fuel program stays intact. The administration values “the importance of renewable fuels to America’s economy and to our energy independence,” President Trump said in a letter addressing those attending the annual National Ethanol Conference. He continued to say, “As I emphasized throughout my campaign, renewable fuels are essential to America’s energy strategy.”

Interestingly, President Trump’s EPA Administrator, Scott Pruitt, has been a vocal opponent of the RFS. Pruitt has railed against the RFS in the past and argued in a 2013 Supreme Court brief that the EPA ignored the risks that gasoline with more than 10 percent ethanol poses to vehicle fuel systems, as well as the mandate’s effect on food prices. The high court declined to take up the case.

To add further uncertainty to where Republicans stand on this issue, the new Chairman of the Energy & Commerce Committee, Greg Walden, is not as supportive of the RFS as his predecessor.

The Energy & Commerce Committee, which has jurisdiction over the RFS in Congress, will play a vital role in passing legislation in the 115th Congress.

Bill Introduction

Photo Courtesy of 123rf.com | siraphol.

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In March of 2017, House Judiciary Committee Chairman Bob Goodlatte announced the reintroduction of the RFS Reform Act (H.R. 1315) and the RFS Elimination Act (H.R. 1314) that he and others have introduced in previous congresses. In the past, the AKFCF and many other organizations have signed onto letters supporting both bills.

The letter brings together different organizations by stating that although the groups each have different reasons for supporting RFS reform, they agree that the RFS is a fundamentally broken policy that handicaps everyday Americans. After years of growing evidence that the RFS is failing to achieve its stated goals, and in many instances works against them, now is the time for the bipartisan reform the proposed legislation embodies.

If you have further questions or concerns, please contact Mary Donohue at Polaris Consulting, LLC (mdonohue@polariswdc.com). w ww. akf c f . c o m

AKFCF – P o l i t i ca l A c t i o n C o m m i t t e e (PAC) The AKFCF created a Political Action Committee (PAC) to make sure our voices are heard in Washington, D.C. The AKFCF Government Affairs Committee and the AKFCF PAC Board of Directors would like to thank the franchisees listed below for their contributions to the AKFCF PAC. Each quarter, we list the names of the franchisees who have supported the PAC at time of print as a token of our appreciation. This list is all the contributions, broken down by region. We encourage you to please join your fellow franchisees and support your AKFCF PAC. For information on how you can become involved, or if you don’t see your name and should, please contact Ray Aley, treasurer of AKFCF GAC/PAC at (802) 318-4705, or via e-mail at KFCRay@aol.com.

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

James McKenzie Diana Myers Marvin Payne Jordan Anne Phillips Dana Rudoni Shirley Vangeloff Scott Vorrath Rodney Walker Brian Wheeler Chad Wheeler Larry Wheeler Robert Widder Northeast Ray Aley III Diane Burns Tony Cameron Robert Carlucci Gary Cocolin Keith Cole David Evans Joe Farley Frederick Gallant

Michael Houston Don Lopes Dale Moulton Robert Rianna Alex Rosenblum David Rudnick Theodore Silver Eugene Skowronski Larry Starkey Matthew Thurston James Waters Northwest Frederick Baker Robert Carle Ralph Harman Brett Harris James Jackson Lisa Kern Jim Olsen Sam Sibert Donald Steinke Todd Stewart Ken & Jane Wall

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

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

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REMODELING

KBP Foods Makes A

BIG BET On The

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‘BIG CHICKEN’

By Michael Kulp, President & CEO, KBP Foods

Franchisee invests $2.2M into the remodel of iconic restaurant in Marietta, Ga. Editors Note: The Big Chicken re-opened on May 11th.

Above: Updated drive thru and menu board (Image courtesy of FRCH Design Worldwide.)

Left: The front of the house is approximately 2,440 square feet with seating for 98 guests. (Image courtesy of FRCH Design Worldwide.)

Inset: The new Big Chicken logo, designed by Wieden+Kennedy.

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REMODELING

I

’ve been working in the KFC system for 16 years, and I can honestly say that I’m more excited than ever about the future of the Brand. We have world-class leadership, a renewed focus on quality and excellence, and a value proposition that is stronger than ever. All of these factors combined are driving incredible results, including positive sales and transaction growth. It’s a great time to be part of the KFC family, and KBP Foods is committed to helping the Brand realize its full potential. Part of how we do that is by investing in and remodeling our restaurants, particularly “hero” assets, like what we’re doing with the “Big Chicken.”

The new design is an elevated expression of the American Showman concept.

Windows across the front of the building are 8 feet, allowing for lots of natural light in the dining area. (Image courtesy of FRCH Design Worldwide.)

The new design features a 575-square-foot, screened-in back porch that can seat 48 guests. (Image courtesy of FRCH Design Worldwide.)

The Big Chicken marquee is being updated to include an image of the Colonel. (Image courtesy of FRCH Design Worldwide.)

History of the Big Chicken KBP Foods took ownership of the so-called Big Chicken KFC restaurant in Marietta, Ga., as part of a deal to acquire 53 locations in the Atlanta area in 2011. Before visiting the store, I had heard it was a unique asset, but it really is one of a kind.

The 56-foot-tall steel structure at the front of the building is shaped like the head of a chicken (complete with a moving beak and eyes), and sits in the heart of Marietta. Trust me, you can’t miss it.

The Big Chicken is a big deal in Marietta. It’s hard to fully grasp the magnitude of the restaurant if you don’t live there, but it’s a local landmark. Designed by Hubert Puckett, an architectural student at Georgia Tech, the Big Chicken was erected in 1963 by Stanley R. “Tubby” Davis. It was originally built for Johnny Reb’s Chick, Chuck and Shake restaurant, but KFC took ownership of the building in 1974. For more than 50 years, the Big Chicken has been part of this community— other local businesses play off the Big Chicken brand (including Big Chicken Pawn next door), the Marietta Museum of History sells Big Chicken collectables, and there’s even a Big Chicken New Year’s Eve ball drop. After a storm in 1993 damaged the tower, KFC briefly considered tearing it down, but a huge public outcry forced KFC to reconsider. Yes, Marietta loves their Big Chicken.

KBP has a lot of pride in this building. We know what it means to the community and our employees. We also know that it takes a certain level of investment to keep our stores operating at their best. It has been nearly 20 years since the Big Chicken had any meaningful renovations, so we made the decision to begin a complete remodel in January 2017.

A Fresh New Look

Enhanced curb appeal for the exterior of the building and the drive thru (Image courtesy of FRCH Design Worldwide.)

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The $2.2-million renovation project is part of our commitment to KFC’s American Showman Acceleration Program (ASAP). KBP is renovating approximately 250 stores nationwide, and the Big Chicken is one of two hero assets we’re investing in (the other is a KFC/Taco Bell location in Overland Park, Kan., where KBP Foods is headquartered).

Our goal for this remodel is to pay homage to the history of the Big Chicken (and by extension, the KFC Brand), while preserving it for future generations to enjoy. We wanted to uphold and maintain the integrity of the iconic restaurant, while giving it a fresh new look. To help us get it right, we partnered with FRCH Design Worldwide, an award-winning w ww. akf c f . c o m

architectural firm; and Wieden+Kennedy, media agency of record for KFC; to create a unique, one-off expression of the American Showman concept.

When people ask me, “What will be different about this restaurant from all other KFC’s?” my response is, “Basically everything.” The new look is based on the American Showman design aesthetic (bold color blocking, authentic/barnlike materials, and heritage accents), but it has been elevated and customized specifically for the Big Chicken. We’ve reimagined everything for this location from the staff uniforms to the flooring and signage—it’s all custom. It’s a completely different experience than any other KFC in the country, or even the world.

Guests will get a glimpse into the kitchen where KFC’s trained cooks hand-prepare the Colonel’s famous fried chicken fresh all day, every day. (Image courtesy of FRCH Design Worldwide.)

Creating an Environment for Southern Hospitality Return customers will immediately notice a few enhancements to the Big Chicken structure, which is getting a facelift with a new facade and new signage (including an iconic image of the Colonel). We’ve also added a front , side , and back porch to the exterior of the building. The front and side porches are open, and add a combined 610 square feet and 46 seats to the dining area. The back porch is a 575-squarefoot screened-in area that can seat 48 guests. For guest privacy we’ve added landscaping around the screened in porch..

The patios are a really nice addition to the Big Chicken and have allowed us to double the size of our previous dining room, adding a total of 1,185 square feet and an additional 94 seats, providing more room for large groups and encouraging guests to stay longer.

Inside, we’ve created a welcoming environment with a focus on Southern hospitality. The front of the house is approximately 2,440 square feet with seating for 98 guests (previously

The dining room will feature a new Colonel statue where guests can take selfies. (Image courtesy of FRCH Design Worldwide.)

The dining room will include a wall dedicated to the “Original Celebrity Chef.” (Image courtesy of FRCH Design Worldwide.)

KBP Foods engaged FRCH Design Worldwide, an award-winning architectural firm, to bring their vision to life. (Rendering courtesy of FRCH Design Worldwide.)

The Big Chicken was originally built for Johnny Reb’s Chick, Chuck and Shake restaurant in 1963.

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REMODELING we were able to seat 94 guests total, with no outside seating areas). The new design includes a variety of different seating arrangements designed to bring energy to the new space. We’ve also increased the prevalence and size of windows across the front of the building, allowing for lots of natural light, and making the space appear more open and inviting.

When guests walk in, they will see cooks preparing the Colonel’s famous fried chicken through a “food theater,” putting our real cooks in real kitchens on display. This real-time view into the kitchen is my favorite new feature because it creates transparency and emphasizes our focus on fresh, quality ingredients. Our menu will include some unique offerings, including specialized dessert items and an exclusive beverage line-up. In fact, the Big Chicken will feature the most comprehensive beverage offerings of any KFC in the U.S., including Stubborn Soda, PepsiCo’s craft soda line, which puts an unexpected twist on traditional sodas and pours like draught beer. We also will have a Siberian Chill frozen beverage machine with unique flavors. Both of these are exclusive to the Big Chicken and aren’t offered at any other KFC location in the U.S. The dining room will include several artistic focal points and conversation starters, including a chandelier featuring a large bucket sprinkled with smaller buckets and glass pendants; artwork that is unique to the location, including AKFCF.Ad.2017.HALF PG SPREAD.OL.pdf

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a hand-painted mural of the state of Georgia with the Big Chicken shape in the middle; and a new Colonel statue where guests can take selfies. We’re also going to have fun with the signage, with signatures of the Colonel’s humor throughout the restaurant. These seemingly small details come together to create a one-of-a-kind experience for our guests. The dining room also will feature Wi-Fi and TVs, creating an environment that invites customers to hang out and enjoy spending time with family and friends.

We are particularly excited for a new retail area where guests can purchase souvenirs to commemorate their visit to the Big Chicken. We’ve come up with some really fun and creative items, leaning into the goofiness of it all. There will be something for everyone—from t-shirts, postcards and baby bibs, to Big Chicken speedos and bikinis. This is a really great addition to this asset, helping elevate brand awareness of the iconic Big Chicken, while driving incremental revenue.

Of course, we have some fun advertising planned for the opening. For instance, the Big Chicken—whose beak has been moving for 50 years—will speak for the first time. The Big Chicken also will make its presence known in a unique way on Twitter. And, best of all, we’ll release a short animated film tapping into Marietta’s connection with the Big Chicken, which we hope to show teasers of in theaters throughout the greater Atlanta area.

4:25 PM

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Growing and Elevating the Brand into the Future The Big Chicken has been an incredibly fun, exciting renovation project for our team. When it re-opens, the new Big Chicken will be one of the greatest KFC’s in the world, with design and guest experience features you won’t be able to find anywhere else. We’re confident it will lead to increased revenue, but it also gives us even more pride in this location.

For us, the decision to remodel the Big Chicken was an easy one. We view this as both an investment in the local community of Marietta and in the KFC Brand. The new American Showman branding is breathing new life into the physical restaurant locations, and KBP is proud to be part of that process. We strongly believe that participating in ASAP and investing in hero assets, like the Big Chicken, will help further elevate the Brand and realize our potential. It’s my hope that what we’re doing will inspire others to do the same. And, if you haven’t been to the Big Chicken, you should go sometime. I promise, it will change your life.

Timeline of the Big Chicken. In 1993, the Big Chicken was damaged during a windstorm. KFC considered tearing the structure down, but Marietta residents persuaded the company to rebuild instead.

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2017 CONVENTION WRAP-UP

2017

Convention Wrap-Up

By Kelly Rodenberg and Cory Sekine-Pettite 26

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Everything’s Bigger in Texas

Editor’s note: For a recap of the 2017 CARIBLA Convention, see Zaira Guevara’s column on page 62.

E

verything about this year’s Convention was done Texas Style—Big and Bold!

At the 2017 AKFCF Annual Convention in Austin, we united our voices by sharing a singular vision: To make the Colonel proud and to bring the Kentucky Fried Chicken brand back to greatness by being number-one in the hearts

and minds of our customers. The Convention has always played a key role in strengthening the Association, the KFC Brand and our restaurants, and this year’s Convention was no exception. It was a spectacular week in Austin for franchisees, their teams, and family members. Let’s take a look at the highlights.

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2017 CONVENTION WRAP-UP

Sunday, February 26 Upon arrival into Austin, attendees were presented with an afternoon of four interactive workshops sponsored by KFCC.

3. The Road to #1 on Taste 1. Building the Brand with New Assets: Incentives, People and Technology

2. Protecting Our KFC Brand in Today’s Social Media World

4. Unrivaled Talent: Empowering RGMS to Attract and Engage

On Sunday evening, attendees made their way from the JW Marriott over to the Convention Center for the Welcome Reception and Vendor Showcase. More than 200 exhibitors filled the hall with this year’s showcase of cuttingedge products and services. The hall was chockfull of Austin’s best food truck cuisine, beverages, and live music by local artists.

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2017 CONVENTION WRAP-UP

Monday, February 27 General Session – United With One Voice, One Vision Isabella Cole opened the general session by singing a powerful rendition of our national anthem to really bring home the meaning of this year’s theme: “United with One Voice, One Vision.”

AKFCF President Greg Atwell addressed the opportunities and challenges faced by the system in his keynote speech.

“One of our biggest challenges right now is that we continue to close restaurants,” he said. “There is no question that we have made a considerable improvement in our operations, and our internal scores show our successes. Additionally, external trackers are showing that the Brand is moving in the right direction. But we need to keep building restaurants. To be the number-one brand, we must have the restaurants in place to provide the Colonel’s recipe to our customers.”

Along with the need to keep building, another challenge is to continue to simplify operations and upgrade our restaurants so that teams can deliver on the Colonel’s promise of providing great tasting food, served quickly and accurately, in a clean and comfortable environment. As a Brand, we are focused on being number-one in taste. As we continue to simplify operations and streamline our service model, we will continue to move forward on achieving this goal.

Atwell mentioned that there is a lot of frustration as the system works to get through the upgrading of our assets. We are on an aggressive timeline and progress has not happened Below: Isabella Cole, daughter of AKFCF Treasurer, Keith Cole.

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as quickly as any of us had planned. He assured us that we are working closely with the asset team to make sure the process continues to get streamlined so that all of us can be where we want to be. “We cannot let being frustrated at the challenge make us lose sight of the bigger picture—the opportunity to be one of the top QSR brands in our market,” Atwell said.

Our patience with this process will be well rewarded. In the restaurants where the enhancements have been made, customers love the new image and sales are up across the board. Along with patience, we need focus. Individually and collectively, we need to consistently execute our process with precision and hard work. Whether it’s training employees, simplifying operations, upgrading our restaurants, enhancing the Brand, or engaging with our regions and the AKFCF, when we are focused we hit the target every time.

Since we were in cowboy country, Greg brought out someone who knew exactly what it means to be precise and focus on a goal.

Loop Rawlins, one of the most versatile Western performers in the world, showcased his unique act of trick roping, whip cracking, and fancy gun spinning. He was a quarterfinalist on the hit television show, “America’s Got Talent.”

So in spite of Above: Loop some challenges, our Rawlins. opportunities for growth are ripe and the data proves it.

We’ve had 10 consecutive quarters of same-store sales growth. Our actual costs are down and profitability is up.

Our new integrated packlines, along with KFCC’s strong food innovation, will be the keystones to sales growth in 2017. The current advertising campaign has been highly effective. The ads are resonating with millennials and centennials alike. We are successfully tapping into a younger demographic that wasn’t even coming into KFC a year ago.

We also are successfully tapping into the collective power of our Association and the corporation. The relationship between the AKFCF and KFCC is as healthy as it has been in many years. w ww. akf c f . c o m

We’ve broken through a lot of barriers over the last few years, with everyone committed to being better partners. The Association has been able to help KFCC understand the importance and purpose of our existence, and KFCC has responded with initiatives such as the re-Colonelization of the Brand and the Zinger rallies.

It takes all of us to bring the vision to life.

This includes making sure our teams are trained, our restaurants are updated, and that we are taking advantage of the programs offered. It’s time we all come along for the ride!

If you don’t keep up as a business owner, you will fall behind on where we are all headed: to a world where KFC is number-one in taste and number-one in the chicken industry.

KFCC Presentations Later that morning, we heard from KFCC president Jason Marker and other members of the KFCC Leadership Team with updates on key Brand results and insights into strategic plans.

The Winning Combination for Superior Drive-Thru Management Whether you’re identifying bottlenecks at the store level or comparing the performance of multiple stores, our Drive-Thru Optimization System™ (DTOS) provides your crew, managers, and owners the information needed to improve service speed, drive sales and increase Above: Then-KFCC President Jason Marker.

Jason Marker opened with an energetic statement: “KFC is BACK! KFC is back in the conversation. KFC is back in Pop Culture. KFC is back with sales results, and KFC is back to having fun.”

Marker emphasized that leadership is key and that we can make a difference together.

Determinants of our ongoing success are sticking to strategy and great partnership.

Determined people working together can do anything. Key points included:

profitability. Optimize your drive-thru operation with DTOS and make every second count.

Optimize Your Drive-Thru for a More Profitable QSR Operation 800-848-4468 | www.hme.com/timers © 2017 HM Electronics, Inc. The HME logo and product names are registered trademarks of HM Electronics, Inc. All rights reserved. PA17-01

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Learn from each other Do the right thing Share expectations Achieve great goals Kevin Hochman, KFC chief marketing officer, focused on the past 10 consecutive quarters of sales growth.

Our breakthrough advertising campaign has been extended. It is provocative and shareable; it tells our food story, and it goes beyond traditional media. Using Above: The Extra Crispy Colonel. “real colonels,” channeling the Colonel and Colonel products, we had the public identifying and talking about KFC.

and our Brand is more relevant. Innovation is key. Just look at the following examples: • Value—Everyday value exist for different group sizes • $5 Fill Ups continue to drive incremental business and profit • We are adjusting to the new reality for group meal business • 70 percent of women in the workforce, 71 percent of households don’t have any children at home, and only 45 percent still regularly eat at dining room table • Flavor is our key focus • Georgia Gold reviews are very strong • Next flavor—Colonel’s BBQ Sweet and Smoky • Sandwiches are the next target food item • Lunch is a $98-billion opportunity, of which KFC only has a 2-percent share • Sandwiches account for 41 percent of all chicken servings • Big 3 burger restaurants serve 1.7 billion chicken sandwiches a year • The Zinger Sandwich launched April 24 • “Space Colonel” revealed—Best Sandwich in the Universe Phil Klezmer, KFC chief operating officer, explained that our bold goal newly unrivaled trust and consistency in our operations. Through engaging rallies, deployment of packlines and balanced scorecard, we have achieved massive accomplishments. By improving our guest experience and elevating our system capability, we’re building the foundation to be the best on block.

Above: The Gold Colonel.

Below: The sunscreen promo.

Above: Kevin Hochman discussing the Zinger launch.

KFC is playing offense with our food story by noting that our product is U.S. farm fresh chicken, without added hormones or steroids, USDA inspected and freshly prepared chicken. And we are telling it in a way people will listen. Re-Colonelization has shifted the public’s perception of our quality.

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Save the Date for 2018

2018 ANNUAL AKFCF CONVENTION February 21-24, 2018 The Anaheim Marriott Anaheim, Calif. w ww. akf c f . c o m www.

AKFCF Workshops Legal Update— A lot has changed since last year’s Convention. Franchisees have been asked to sign construction agreements and finance agreements. Your Contracts and Facilities Committee has been reengaged by KFCC on a number of issues and initiatives. And whether you have realized it or not, KFCC is no longer your franchisor; your franchisor is a new company known as KFC US LLC. AKFCF General Counsel Ron Gardner spoke about all of these changes, sharing his wit and wisdom about what has happened— and what is happening—in the KFC world in which we all live.

1-800 Program…Not Just a New Partner— Your guest recovery program has changed more than just vendors! In this workshop, attendees learned how

Above: AKFCF General Counsel Ron Gardner

Market Force is enabling us to recover even more guests than ever before and what we can do to rebuild trust with our guests.

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2017 CONVENTION WRAP-UP

of our old patterns of thinking so we can lead and communicate with stronger impact and credibility. His high energy kept attendees entertained and his personal stories of both struggle and failure challenged us to think different about how we lead, work, and love.

Below: Justin Patton

Above: NCAC Executive Director Cynthia Koplos.

Leadership Workshop with Justin Patton— How do you need to disrupt your life today so you can achieve all that you are capable of tomorrow? Justin Patton is an international speaker and communication skills coach who taught us the necessary skills and tools that force us out

Texas Shindig at Austin City Limits We did something a little different this year by having our big night celebration on the kick-off day of the Convention.

We left the hotel ballroom for the iconic Austin City Limits.

It is not only an award-winning concert venue; it’s also the home of the longest running music series in American television history. Attendees were treated to a private concert event featuring the Grammy-award winning country artists, Little Big Town! The crowd came decked out in their best jeans, boots and hats!

Giving back is very important to our KFC family. This year we teamed up with Shriners Hospitals for Children. As attendees all arrived to Convention, we asked that you help “Stack the Shelves for Shriners” by bringing a book, activity or small game to donate to their local facilities in Texas, and once again you did not disappoint with your donations. We sent 15 large boxes of items to two local Shriners Hospitals in Texas.

At the Texas Shindig, we were blessed to share a personal story on how Shriners helped one of our very own. Isabella Cole, daughter of franchisee Keith Cole, was treated at Shriners Hospital when she was younger and is now a success story! We welcomed her to the stage once again for another powerful performance—this time it was Sia’s “Titanium.”

Prior to Little Big Town’s performance, we auctioned off a variety of items from Little Big Town, Mike Singletary, Pepsi, and Dr Pepper. Half of the proceeds we raised benefited Shriners and the other half went to support our AKFCF Government Affairs Committee. With the auction items and cash donations, a total of $62,221 was raised!

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Above: Little Big Town Right: Franchisees enjoying the party and the auction.

Perfect Finish!

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Lemon & Double Chocolate Chip Mini Bundt & 16oz Bundt Available

Above: Isabella Cole.

Below: Karen Faber of Shriners Hospital for Children.

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Tuesday, February 28 The day started with the AKFCF Regional meetings, allowing each region to share new business and ask questions of the AKFCF and KFCC leadership.

The afternoon’s general session included the NCAC report; award presentations; and keynote address by Chicago Bears two-time defensive player of the year, Super Bowl Champion and NFL Hall of Famer, Mike Singletary. Mike’s message was about the “LION” within all of us.

L is for Love—Think about what you love in life and let that be the force to guide you through. He focused on how important it is for all of us to have a vision and that Love will take you to your vision— that vision will take you to your destiny.

I is for Imagination— See beyond what is in front of you. No matter how tough things get, imagination will help you put your vision on wheels. Find the tools Right: Mike Singletary

that can feed and fuel your mind. Sharpen your skills and develop your focus. See yourself being successful. Your mind and imagination should be vast. When you have a vision, you look up and beyond to a destiny.

O is for Opportunity— Take advantage of all opportunities; they come to us in all different forms and times. Take the opportunity to learn from your mentors. Take the tools they give you, Above:Tom Slater but make them your own, make them better.

Customize their words and skills and turn them into your personal investment.

Leaders need three types of people in their lives.

1. Someone who will tell you the truth 2. Someone that “fills your tank”—your biggest fan 3. Someone to be your accountability partner— someone who truly cares about you and wants you to succeed, but wants nothing from you in return N is for Never Give Up—Never quit. It’s never too late to become who you were meant to be.

Wednesday, March 1 Wednesday morning was the perfect chance for all to share their voice by participating in our annual town hall meeting. The panel included members from the GAC, RSCS, OEC, REC, NCAC, Partnership Survey Committee, and our own AKFCF leadership. The day continued with three more intuitive workshops on Loss Prevention, Establishing a Personal Board of Directors, and a Leadership Footprint for ARLs. More than 100 attendees decided to take the afternoon off and enjoy the Austin hill country by playing golf at the Omni Barton Creek Resort.

Wednesday evening brought the Annual Convention to a close with a final night celebration at Speakeasy.

Attendees enjoyed an evening of BBQ, cold beer, and great music by the Matt Wilson Band, Jackie Venson, and Suzanna Choffel. It was a great evening to connect, 36

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Above:Town Hall meeting.

relax, and celebrate at one of Austin’s premiere blues venues.

Connecting with each other at this Convention is so important to each of our businesses and to the Brand. w ww. akf c f . c o m

Service Awards The AKFCF congratulates the following franchisees who have devoted 40-plus years of service to the KFC Family. Read more in our feature, beginning on page 54.

55+ Years James Gyarmathy Jack Marshall Jim Olson/Harman Management

50 Years Milton Dahlene Estate of Bobby Hannon

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Above and right: Guests enjoying the closing celebration at Speakeasy.

When Colonel Sanders first started, he didn’t have the training resources we have today. He’d train someone and then that person and their restaurant would help train and support as other people came into the Brand. The foundation of our Brand has been built on recognizing that if we help our neighbors be successful, we will be successful too. Thank you to all who attended this year’s Convention to keep this important tradition alive.

Shining Star Awards This year’s recipients are individuals who once again have given their time and dedication to the entire franchise association. In doing so, they not only reach out to support fellow franchisees, but they also uphold a longstanding tradition as one of the world’s strongest brands. This year’s honorees are:

Jim Waters Ed Thomas Leslie Sharp Jim McKenzie Roger Sparks Jason Zakaras Brett Harris Zaira Guevara For more on these winners, see the feature article beginning on page 46.

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Shriners Hospitals for Children

because she knew that she had already won. …She knows she’s out there running for herself and not anybody else. …

She would not be running cross-country today if it were not for Shriner’s.”

“If I lived ten lives, I could not pay Shriners back for what they did for me and my family,” Keith said. “…Pittsburgh’s hospital and Danville’s hospital saved my daughter, but Shriners made her a human being again.”

For more information on Shriners Hospitals for Children, visit https://www.shrinershospitalsforchildren.org where you can read about more children like Isabella, learn about the hospitals’ research programs, and make donations.

If you attended the Texas shindig at Austin City Limits, in which the AKFCF teamed up with Shriners Hospitals for Children, then you heard just how vital that organization can be for children and families with urgent medical needs. Through a video presented prior to the scheduled concert, franchise Keith Cole shared the harrowing story of his daughter’s illness as a toddler and how Shriners helped to not only save her life, but to give her a normal life. Keith graciously offered to share this story again for those who were not in attendance that night.

At the tender age of just two years old, Isabella Cole was diagnosed with necrotizing facetious (flesh eating infection). To this day, the family still does not know how she contracted this infection. Regardless, Isabella’s physician at the time in Danville, Pa., told the Coles their little girl needed surgery to remove infected muscle, skin and tissue right away or she would die. The family also was told that even with a successful operation, young Isabella could lose her right leg.

They immediately sought treatment in Pittsburgh. “It was pretty much a two-month nightmare,” Keith said of Isabella’s initial surgery and treatment.

Your National Lighting Source “By the time we had gotten to the point where we knew Isabella was going to surIn business since 1926, we are here for vive, …[doctors] told us we had to find a place that could cover the wounds and could all of your commercial lighting needs! give her the proper rehabilitation that she needed,” Keith explained. “…Even though my daughter wasn’t burned, she needed to be treated like a burn victim. …Shriners CONTACT US TODAY Hospital in Cincinnati was very impactful Tim at 860.670.3270 Tim.Kossbiel@CapitolLight.com for my family.”

Kevin at 860.670.4595 Kevin.Polley@CapitolLight.com When Isabella arrived at Shriners, she had open wounds on her legs and back. Keith recalls that within 10 days, she was walking again for the first time in three months. The LIGHTING DESIGN SUPPLY LAMP REPLACEMENT rehabilitation was difficult on everyone, but LIGHTING & ELECTRICAL MAINTENANCE the family knew it was for the best.

Now, as many of you witnessed at ConUTILITY REBATE SERVICES vention, Isabella is all grown up. Of course, COMPLETE LIGHTING TURNKEY SOLUTION we all know how well she can sing, but did you know she is an athlete as well? Keith www.capitollight.com recalls watching her first cross-country race last year: “I watched her at the end of the race; she was last, but she didn’t care Spring 2 017

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In Recognition of their Service AKFCF President’s Award Presented to Larry Starkey

Alessio DiFranco Honored with Colonel’s Legacy Award

This year, the President’s Award—the AKFCF’s highest honor—was presented to AKFCF Past President Larry Starkey. Starkey was honored in appreciation for his service to the AKFCF family and for proving himself invaluable to the Association. “This award isn’t just about accomplishments,” AKFCF President Greg Atwell said. “Larry is one of those people who is never afraid to get his hands dirty. If it will improve the brand or his personal business, he leads by example.”

The Colonel’s Legacy Award is presented to a second- or third-generation franchisee, whose leadership and service conveys our strength to succeeding generations. This year, the honor went to Alessio DiFranco.

“We should all be thankful that the same passion and energy he has for his family and his sports teams—the Cavs’s and Indians—exists in everything he does for our Brand,” said Greg Atwell.

“As I am thinking about what this honor means to me, I am filled with many different emotions from receiving the Colonel’s Legacy Award,” DiFranco said. “I feel truly blessed that the hard work and dedication not only to our business, but the GLKFCFA, AKFCF and the Brand was noticed. I feel a sense of pride as it is an accomplishment that must be short lived, for now the pressure and motivation is on to push forward to new heights and to develop even further.”

Michael Fulenwider Honored with KFCC President’s Award The KFCC President’s Award is presented each year to an outstanding franchisee who shows an outstanding commitment to the Brand. This year, the award was presented to Michael Fulenwider, a franchisee with restaurants in North Carolina and Tennessee. Fulenwider has “a desire to maintain a big family feel” in his restaurants, KFC President Jason Marker said.

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Hard Way Awards Every year during the Convention, the NCAC presents its Hard Way Award to some of the Brand’s most dedicated supporters who demonstrate their commitment to the Colonel’s values. According to the Colonel, the Hard Way means “the keeping of promises, the deliverance of value in goods, in services and w ww. akf c f . c o m

in deeds, with sound merit and good ethics.”

This year’s recipients were Bryan Robinson, Brian Goldstein, and Chris Fowler.

PETE Award

Available to KFC® Restaurant employees personally impacted by a hardship, crisis or natural disaster.

This year’s PETE Award winners (People Encouraging Talent & Excellence), presented by KFCC, are Dick and Tim West of Laurel, Miss., who developed the idea for the $5 Fill Up. The PETE Award is named for KFC’s first franchisee, Pete Harman.

Lifetime Achievement Award Presented to Ben Edwards

To apply, visit TeamKFC and search “foundation.”

Long-serving franchisee Ben Edwards of Lubbock, Texas, was honored at Convention with the Lifetime Achievement Award. AKFCF created the award to recognize franchisees who have made a significant contribution over an extended period of time to fellow franchisees and to our Association. Ben is known throughout the system as the guy who brought the crispy strip to KFC.

©2017 Kentucky Fried Chicken Foundation, Inc. The Kentucky Fried Chicken Foundation is a non-profit, 501(c)3 organization.

Employees must meet eligibility criteria for each program.

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AKFCF 2016 Convention Sponsors SILVER

DIAMOND

PLATINUM

GOLD

BRONZE Accuserv Bama Companies, Inc. Bunge Oils Cafe Valley Bakery Capitol Light Case Farms City National Bank Claxton Poultry Dart Container Corporation Delaget Delphi Display Domino Facility Concepts FSV Payment Systems Genpak 42

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Global Cash Card Griffith Laboratories Gycor International Henny Penny Corporation Hot Schedules Hughes Huhtamaki Idaho Pacific Corp InfoSync Services InterMetro International Paper Kagome Kraft Mar Jac Poultry Marmon Foodservice Solutions

McCormick & Co., Inc. Multisite LED PAR Parapet Studios Payless ShoeSource – safeTstep Pomeroy PlotWatt Servsafe Shamrock Farms Dairy Simmons Foods Smithfield Taylor Enterprises of KY The Hershey Company TransAct Technologies WestRock Company w ww. akf c f . c o m

Convention Committee Thanks Each year, the AKFCF Convention Committee works diligently to plan and prepare the Association’s annual gathering. In recognition of their hard work and dedication, we’d like to thank them for their efforts:

Greg Atwell President

Chris Fowler Immediate Past President

Eric Overcash 1st Vice President

Bryan Robinson 2nd Vice President

Keith Cole Treasurer

Kevin Schlutz Secretary

Debbie Newton Administrative Director

Leslie Sharp Vendor Liaison

Zaira Guevara Marketing and Administrative Coordinator for the CARIBLA Franchisee Association

Justin Stewart Education Committee Chair

Kris Stage Meetings Director

Kelly Rodenberg Executive Director

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AKFCF Convention Exhibitors 3M A.C. Furniture Company, Inc. Accuserv ACP, Inc. ADP (Automatic Data Processing) Airgas National Carbonation AKFCF Government Affairs Alconox American Security Products Anchor Packaging ARYZTA AT&T Atlas Sign & Awning Company Auspex Capital AyrKing Corporation Bama Bank of America Merchant Services Barco Uniforms Basic American Foods Bettcher Industries, Inc. Beverage Builders Brink’s Inc. Buccaneer Container Corp.

Bunge Oils BUNN-O-MATIC Cadence Bank Cafe Valley Bakery Cambro Mfg. Company Capitol Light Case Farms CH Guenther & Son Charter House Holdings Citizens Bank - Restaurant Finance City National Bank Claxton Poultry Commercial Electronics Communications Technology Associates, Inc. Cornelius Inc. Craig Specialty Advertising Cummings Resources LLC Custom Seating, Inc. Dart Container Corporation Delaget Delphi Display Systems Domino Foods Dr Pepper DTT Duro-Last Roofing, Inc. 44

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Eagle Eye Networks East Balt Bakeries Ecolab Envysion Epson America, Inc. Everbrite, LLC Facility Concepts, Inc. FBD Partnership, LP FCC Commercial Furniture Flowers Bakeries Franchise Insurance Agency Inc. Frontline International Frymaster FSV Payment Systems Genpak Georges Inc. Georgia-Pacific GLMV Architecture Global Cash Card GOJO Industries Inc. Golden State Foods Granite Telecom Griffith Foods Gycor International Henny Penny Corporation Heritage Parts HME HotSchedules Hughes Huhtamaki Huntington Bank Hyginix LLC Idaho Pacific Corp IndoorMedia InfoSync Services InterMetro International Cold Storage International Paper ITW FEG – Hobart & Traulsen Kagome Inc. Kentucky Fried Chicken Foundation KFC Development KFCC ASAP/LendLease KFCC HR KFCC Information Technology Kitchen Brains Koch Foods, Inc. Kraft Foods w ww. akf c f . c o m

LDI Mfg. Co. Inc. Leavitt Ins Serv of So Ca Magnesol / Dallas Group Mar Jac Poultry Marcus & Millichap Market Force Information Marlin Franchise Finance Group Marlite Marmon Foodservice Technologies McCormick and Company McLane MegaPath MFS: Delfield, Kolpak, Ice, Servend, Frymaster Middleby Corporation Multisite LED, LLC NDA, Inc. Neon O.K. Foods, Inc. On Display OneDataSource Orkin, LLC Pacific Premier Franchise Capital PAR Parapet Studios LLC Paychex, Inc. Paycor Inc. Payless ShoeSource – safeTstep Peco Foods, Inc PepsiCo Performance Foodservice Pilgrim’s Pinnacle Commercial Capital Pinnacle Foods Group LLC Pomeroy Procter & Gamble ProGroup Contracting, a licensee of CertaPro Painters R.F. Technologies, Inc. Rational USA Raypak – DS Smith Realty Income Regions Insurance Restaurant Supply Chain Solutions Sales & Services Restaurant Supply Chain Solutions Connection Partners Restaurant Supply Chain Solutions Member Programs Restaurant Technologies, Inc. Revenue Management Solutions, LLC S. Thomas & Associates SCA Tissue North America Security Source Selecto Inc.

Service Management Group Servsafe – National Restaurant Association Shamrock Farms Dairy Sharp Electronics Corporation Shoes For Crews Simmons Prepared Foods Smithfield Snagajob SPG International, LLC Squar Milner, LLP Staples Advantage Sterlling Talent Solutions SYR T&S Brass and Bronze Works talentReef Taylor Enterprises of KY Tetley Harris Food Group Trane Co. Transact Technologies Tredsafe / Wal-Mart Trendco Tyco Integrated Security Tyson Foods, Inc. Unbridled Capital Ventura Foods LLC Verizon Viatech Walker’s Food Products Wells Fargo Equipment Finance WestRock Company Winston Industries York International Zenput CARIBLA Aviko BV Cavendish Farms Coca-Cola Franke Foodservice Supply McCain Calatin Middleby Corporation NCR Corporation Oracle Hospitality PepsiCo International Sysco International Spring 2 017

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S H I N I N G S TA R S

Photo Courtesy of 123rf.com | senoldo.

2017

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S hining S tars

By K.K. Snyder

F

or some people, being in the spotlight is an uncomfortable position. Whether they’re inherently humble or just shy away from the attention, award recipients don’t always have the same attitude about their moment in the sun. Whether they can enjoy praise easily or truly have to work at accepting the accolades, this year’s Shining Stars are as deserving as ever.

While there are many awards and avenues of recognition available within the KFC franchisee community, many recipients say that it’s the Shining Star award that is most humbling. To be recognized for a job well done and dedication to the AKFCF Family—not by customers or employees but by fellow franchisees—can indeed be a humbling experience.

These annual awards signify the best of the best in the tradition of servant leadership. And is so often the case throughout the KFC family, these outstanding franchisees have not only excelled at operating their own businesses, but also have given of their time and talents to help others in the Association succeed as well.

For the past 20 years, a select group of franchisees—or individuals who serve the KFC franchisee community—have been selected each year by the presiding AKFCF President in recognition of their exemplary diligence and loyalty to the KFC franchisee tradition. Those deserving individuals are acknowledged with a Shining Star award, presented each fall or at Convention. Here we introduce you to the latest group of recipients, each with their own unique story of what brought them into the KFC family—and what keeps them there.

Jim Waters Ed Thomas Leslie Sharp Jim McKenzie Roger Sparks Jason Zakaras Brett Harris Zaira Guevara Spring Sprin g 2 017

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BRETT HARRIS Brett Harris joined the KFC business as a parttime cook on Mother’s Day in 1974, back then the busiest day of the year. Today, the Montana businessman serves in a unique position as KFC Montana is a franchisor of KFC. “We’re a standalone corporation…but we go way out of our way to make sure we follow all the procedures. It’s a unique position, which allows us to do some things others can’t,” says Harris.

For instance, Harris and his partners started the cobrand KFC/A&W, opening the very first such restaurant in 1998 in Missoula, Mont. Today, he oversees nine stores around Montana, but has operated about 30 at his busiest point. Impressively, with a total state population of just one million people, Harris has four locations that are milliondollar restaurants.

It’s his newest KFC, located in Lewistown, Mont., that is drawing attention these days. Not only is the restaurant housed in the first modular building ever designed for a KFC/A&W, Harris is the designer and believes others will take advantage of the design. The lower cost allows franchisees to operate profitably in smaller towns.

Harris’ wife and his oldest daughter both work parttime in the office. No stranger to receiving awards, Harris already is a three-time recipient of the Shining Star award.

He served as a six-year representative on the NCAC for the Northwest, two terms on the RSCS board, nine years on the marketing committee for the NCAC, and four years as chairman of the media committee for the NCAC. He currently serves on the GAC for the AKFCF in the Northwest.

Harris has been around long enough that children of employees are now working for him. When asked if he had any thoughts of retiring in the near future, Harris said: “It keeps popping into my head every now and then. But realistically? Hell no! What would I do? I’ve worked 60 to 80 hours a week all these years. To not work anymore? I honestly don’t know what I’d do.”

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JIM MCKENZIE A third-generation franchisee, Jim McKenzie has been at the helm of his family’s KFC franchise since 2008. His grandfather, Jim Price, purchased a franchise in Lafayette, Ind., in 1967 and Price’s daughter, Anne McKenzie Goodnight, took over a number of years later.

Now operating 12 restaurants sprinkled around the state of Indiana, McKenzie is joined by his mother Anne who continues to be involved in the business, as is McKenzie’s brother, though not on a day-to-day basis.

The KFC franchise business has been successful for his family for a number of reasons. “One, we’re very much hands-on. It’s a business we’re actively engaged in,” McKenzie said.

Second, the family sees their most valuable asset as their employees. “We have some [who] have been with us for a long time.

I think it’s because they feel like they’re part of our family,” McKenzie added.

Some of the longest-serving of his company’s 250 employees are Area Coach, Maureen Hubrich, who joined the franchise in 1990; and two store managers, Steve Davis and Unsil Webb, who have worked for the family for more than three decades.

“Lastly, we just like making people happy. KFC is such a great product that if we do a good job of preparing it and serving it, people love it and they love coming back. We believe in that,” McKenzie said.

They believe in serving the AKFCF Family as well. McKenzie is the former president of the Great Lakes Association and is currently on the OEC, and was recently electted as the next 2nd Vice President of the finance committee for the AKFCF. He’s optimistic about the future of KFC and his franchise.

“Vendors, corporate, franchisees—are all playing together to win together. It feels good, like we’re all on the same team, which is how it should be,” he says. In addition, he says KFC leadership is doing a good job keeping the company relevant among younger customers with regard to advertising, product development, social media, and social awareness.

Also important is being recognized by other franchisees for the work you do. “It’s frosting on the cake,” McKenzie says. “The w ww. akf c f . c o m

cake to me is all the stuff I get back from other franchisees who are helping each other out. …It’s a two way street—you get back as much as you give, or more.”

LESLIE SHARP Having grown up in the business as her father’s sidekick, Leslie Sharp was not only the daughter of Larry Sharp Jr., but also his best friend. Having started the franchise in 1966, Larry was 44 and well established by the time Leslie was born. Her father, a close friend of the Colonel’s family, brought her in at age 15 to work one of his restaurants and she fell in love with it.

During Leslie’s junior year of college, she was floundering some with business and accounting coursework. Her father sat her down and told her to study whatever it was she thought

she might want to do, but that he’d also teach her the KFC business when she was ready.

Sharp graduated from journalism school at the University of Kentucky, but by that point had made her decision to go to work with her father. Today, with 15 years as a franchisee, she operates three restaurants in central Kentucky, one of which has been selling KFC recipe chicken for 55 years.

“Basically I was born into it. We have many pictures of me sitting on the Colonel’s knee. I have many memories of attending his birthday parties and the early conventions, watching my parents get ready for the final night gala,” she recalls. “Growing up like that, it’s hard not to love the Brand, you know?”

Brand recognition has been challenging at times, since then, Sharp believes. “There was a time years ago when my own children could not make the connection between Colonel Sanders and Kentucky Fried Chicken,” she says. “But now, having brought the Colonel back to the advertising, getting back to our roots, telling our story, and being more authentic, I think we’re on the right path for the younger generation.”

Sharp is the AKFCF Vendor Liaison, working closely with the vendor community, which includes her husband, Paul Cantrell. She formerly served as a board member and president of the Southeast Region and as co-chair of the Political Action Committee of the GAC.

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ROGER SPARKS As a kid growing up in the small New Mexico town of Socorro, Roger Sparks watched from the school playground in the early 1980s as a strip mall was constructed nearby—a KFC restaurant among the impending occupants. In fact, Roger’s older brother David (whom many of you know) was offered at job at the new quick-service restaurant. At age 19, David purchased his first store.

When Roger turned 13, he began working at the same location where his brother got his start and later worked for his brother during college breaks. After a hiatus that took him to California, where he met his wife, Roger returned to work with his brother. Today, they operate five KFCs and two Taco Bells in New Mexico.

The business has afforded Roger the opportunity to know not only his employees and customers in New Mexico. “It’s an interesting phenomenon to all of a sudden meet someone you think you’re meeting for the first time and then they tell you they used to work for you as a kid…or to have people come to work for me whose parents worked for me, and maybe I held them as a baby,” says Roger, who adds that getting to know customers is also a pleasure.

“It’s great to have that sense of community in town and know people so well. Some people walk in the door and maybe you’ve already made what they wanted because they come in here all the time,” he says.

The relationships with individuals in the business also are invaluable. “It’s having those relationships in the franchise association that are open and honest, with people willing to share anything with you…food costs, sales, ideas,” he says.

Flexibility and the drive to remain relevant are key for future success of the franchise, says Roger, noting that reintroduction of current products to individuals not familiar with the Brand is important. “I think we still have a ways to go, but I don’t think it’s a hill we can’t climb.”

Roger currently serves as the first vice president of the Southwest Region and as vice president of the local New Mexico DMA co-op.

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ED THOMAS Hired in 1969 as an assistant manager for KFCC in San Diego, Ed Thomas worked his way up through all the positions there. In 1981, he shifted to VP of operations for a franchisee in the Los Angeles area, and in 1997 had the opportunity to buy all 15 of that franchisee’s restaurants, forming Thomas Management. “It was basically the ultimate, no money down deal,” he said. “It was bankrupt—technically, but not legally.”

Thomas said he did a lot of praying on his way to work in those early days, vowing if God helped him through the situation then he, in return, would help others. They both held up their end of the deal.

Today, though the management group has bought some restaurants and sold others, Thomas currently operates 15 locations once again. His wife, Wendy, is in the business, as are a number of long-standing employees, including Laura Duran “who probably knows every single one of our employees.” In addition, Bob Seybert and Efren Jaimez, both area coaches, also are valuable assets to Thomas Management.

Success through the years is due in part not only to good food, Thomas believes, but because it’s easy to be a cheerleader for the Brand.

“It’s not rocket science, it’s really pretty simple: give them good, hot, fresh food. Give it to them quick and try to beat their expectations. When we screw up, make it right twice.

“It’s easy to mess up and say sorry and give them a gift certificate or something like that,” Thomas continued. “But when you’ve messed up someone’s meal, you’ve really inconvenienced them. I like to replace a meal with a few meals, go over the top and give them something positive to say about us.”

The former recipient of several previous Shining Star awards, Thomas currently serves on the Southern California Region’s advertising board. He has served as president of the Region as well, and has served in several sub-committee chair positions, including a seat on the board of directors of the RSCS. w ww. akf c f . c o m

JIM WATERS A single-store operator in New Jersey, Jim Waters entered the KFC restaurant business 28 years ago as a cook at Roy Rogers in the D.C. area. He and his wife, Charlotte, a 29-year veteran of the KFC business, purchased the restaurant about five years ago.

Attributing much of his success to the KFCC leadership team, Waters is inspired by stories such as those of Brian Goldstein, former director of operations for KFCC, who recently left the position to become a franchisee.

“It’s encouraging for us as franchisees to see someone who is that much into the business and who knows that much about it and wants to invest in it himself,” says Waters, who names John Brockriede, the franchisee Waters purchased his restaurant from, as a personal mentor.

Among the things KFC really gets right is the dual strategy of price points and limited-time offers, such as the $5/$10/$20 offers on top of the Georgia Gold, Nashville Hot and the rollout of the new Zinger sandwich. “I think the combination of the two will get us to our goal of $1.5 million per restaurant average,” Waters says, noting the success of KFC is due to its recognizable “Brand that’s ingrained into people’s minds right now. It’s established and well-proven.”

One of the funniest experiences Waters has had in the business came last year when he participated in a golf tournament to benefit the KFC Foundation, his first golfing experience ever. Unfortunately, during the planning process organizers forgot to take into account the time change to daylight savings that would take place by the time the tournament rolled around.

“It was pretty much dark by the last two holes. Our team stopped playing best ball and started playing ‘whoever can find your ball,’” he laughs.

As the teams finished up and were waiting around for the awards ceremony to begin, they realized a fourman team was missing in action. Soon a call came in. Turns out, it was so dark they’d made a wrong turn and ended up finishing holes on a completely different golf course. They were waiting alone at the wrong clubhouse, wondering when everyone else was going to finish playing.

All joking aside, one thing Waters takes seriously is recognition by his peers. “It’s nice when customers come in to your restaurant and say they had great service. But when you’re recognized among your peers for doing a good job, it’s kind of special.”

Waters is a former recipient of the the Minuteman Award from the Northeast Region. “I was taken aback. To win one is one thing and to win both in different years is really something. But to win both in the same year, that was an honor,” he said.

Waters is immediate past president for the Northeast Region, he serves on the GAC for the Northeast, and is on the National Nominating Committee.

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S H I N I N G S TA R S

JASON ZAKARAS Many likely wonder when Nebraska-based, second-generation KFC franchisee Jason Zakaras has time to sleep. Between assuming leadership of his family’s franchise business—29 restaurants across four states—and welcoming twins into the world last fall, he is a man on the go.

“My father kind of paved the way for our family…started in the business in the mid ‘70s with a Pizza Hut and worked in that business until the mid- to late-1990s when he had an opportunity to purchase a [KFC] restaurant in Nebraska City,” to which he added four additional full-brand KFC/ Taco Bell sites, recalls Zakaras.

“I’ve worked in the business since I was old enough to work, and probably earlier than that,” he says, adding that he cooked chicken through high school and continued to work part time while in college, after which he was on track to open his own breakfast/lunch concept business. At the eleventh hour, however, he had the opportunity to partner with his dad and become a part owner in 2008. He never looked back.

By 2014, they began expanding into freestanding Taco Bells and last November closed a deal on an additional 23 restaurants throughout Illinois, Iowa, and Wisconsin.

“It’s a dream come true for our family. We were always looking to find something that was in our wheelhouse and this clearly was,” Zakaras said. “We had long-term relationships already built in with a lot of the leaders within that organization that we acquired; we’re familiar with the territory and the brands that they serve.

“It’s a lot of rural, Midwest trade areas, which fits really nicely within our growth pattern and what we’re comfortable with from an operation complexity level,” he continued. “It’s obviously a lot of work and a lot of dynamics that are different, going from a six-store operator to a twentysix store operator, but our core values and mission and vision of our organization shine through, and we’ve already made a big impact with some significant changes to the business.”

Zakaras points out the amazing culture within the KFC franchise community that has enabled him to thrive. “Everyone is there to share best practices and support one another,” he says. “There’s a willingness to share and compliment one another so we’re all successful, and I think it’s unique to KFC. …It’s really humbling to be in this group of leaders that has so much to share.”

Zakaras is currently second VP for the Upper Midwest Region and has served on the Operations Subcommittee.

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ZAIRA GUEVARA At Convention, Zaira Guevara was honored with a Shining Star by AKFCF President Greg Atwell. Guevara is the CARIBLA Franchisee Association marketing and administrative manager. She is a regular contributor to this publication, and a member of the AKFCF and CARIBLA Convention Committees. Guevara has been dedicated to the missions of CARIBLA and the AKFCF for nearly 11 years. She is a tireless worker with a sharp business focus.

“I am very honored to receive the AKFCF Shining Star Award,” she says. “It was an unexpected recognition. This is my first award from AKFCF. I have dedicated many years to strengthen the links between CARIBLA, AKFCF and the international franchisee community, and I feel very honored to be recognized for these efforts.

“I am thankful to the AKFCF Executive Committee and the franchisees that have supported the CARIBLA franchisees, and personally have been supportive of my job and spent time coaching me and training me all of these years,” Guevara continued.

During her 10-plus years as part of the KFC family, Guevara says she saw many great people receive Shining Stars for the leadership and dedication to the franchisee family. “I feel honored to join this group of people in being recognized by AKFCF,” she says.

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Photo Courtesy of 123rf.com | Aleksandrs Bondars.

S E RV I C E AWA R D S

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SERVICE AWARD HONOREES

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o restaurant brand has consistently stayed true to its roots more than Kentucky Fried Chicken. Since its very inception, Colonel Harland Sanders has been the literal face of the Brand and that remains so today the world over.

Like their iconic founder, KFC franchisees also have proved their staying power. For many franchisees, their business has truly become a family affair, with second and third generations of extended family keeping the business vibrant and thriving.

Moving forward, many long-time franchisees are experiencing a renewed energy and are optimistic about the future of the Brand and their business. The celebration of their history with KFC continues, and as they embrace their storied past they also look forward to a bright future.

55+ YEARS JIM OLSON/HARMAN MANAGEMENT The success and longevity of Harman Management is based on loyalty to the business and family values that Pete Harman established. In the 65 years that began when the first Kentucky Fried Chicken opened in Salt Lake City in 1952, Harman Management only has had three leaders, Pete Harman, Jackie Trujillo, and Jim Olson.

Jim’s career in the restaurant business had humble beginnings. In his own words, he started as an hourly-paid chicken cook in 1967 at a KFC restaurant in the Harman Management system in Sunnyvale, Calif.

“That was back when Harman’s had about 20 restaurants and Kentucky Fried Chicken was a bright and shiny new object,” Olson says.

Olson worked through high school and college, and then became a restaurant manager—not a popular choice at the time as others chose different careers. But Olson didn’t see it that way. “I’ve been lucky to do something I enjoy,” he says.

Today, 50 years later, Olson is chairman of the board of Harman Management Corporation, which operates more than 300 restaurants.

Olson credits much of his success to his mentor, Pete Harman, whose entry into the KFC business started in 1952. It started when his friend, Colonel Harland Sanders, prepared a fried chicken dinner for Harman and his wife, Arline. Harman liked it so much he decided to add the chicken entree to his existing restaurant’s menu. That seemingly small decision is now recognized as the birth of Kentucky Fried Chicken.

Harman was known throughout the KFC system as an innovator. His vision of “to go” meals revolutionized the restaurant industry when he packed 14 pieces of chicken, five biscuits, and a pint of mashed potatoes and gravy into a bucket for busy families to take home. The bucket became an icon of the KFC concept and was unique among the restaurant industry.

For those in the Harman system, it went a lot deeper than what was on the menu.

Pete believed that those working for him were more than employees; they were his partners and owners. Further, his philosophy about thrift, honor, integrity, and charity were values and principles that he conveyed to everyone with whom he worked.

Working in the Harman system, says Olson, is based on Pete’s values of being good to other people and to help them develop personally and professionally. Further, Pete was charitable with his money and his time.

55+ YEARS James Gyarmathy Jack Marshall Jim Olson/Harman Management

50 YEARS Milton Dahlene Estate of Bobby Hannon Darlene Pfeiffer Fred Ruth Sr. David White

45 YEARS Loren Ahlstrand James D. Houck Fred Thurston Don True

40 YEARS Joe Cavegn Henry Durbin John Kovach Anne McKenzie Goodnight Alice & Richard Schleicher Larry Wheeler Spring 2 017

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S E RV I C E AWA R D S

JACK MARSHALL FOODS

Jim and Donna Olson.

“I’ve never had to make a business decision that went against my personal values,” Olson says. “Pete’s goal was to have a system where if a young person worked hard, lived conservatively and consistently invested, they could live well and retire when they chose at a comfortable level.”

Harman Management provides a path for success for employees and a chance to advance up the corporate ladder by creating a sense of family and community.

Jack Marshall and his wife, Barbara, owned a music store while living in Memphis, Tenn. They first became aware of Colonel Sanders and his chicken when they noticed a local restaurant always had a line around the building. In those days, franchises were not what they are today; a restaurant owner could sell the Colonel’s chicken under their own business name. The Marshall’s wondered what made it so special that people would stand in line. After visiting the restaurant, the Marshall’s agreed that the chicken was indeed delicious and that’s why there were lines.

A fellow church member named Lee Cummings just happened to be the Colonel’s nephew. After conversing with Lee, they decided to venture into the restaurant business. They opened their first restaurant in Tuscaloosa, Ala., affording the Marshall’s parents the opportunity to manage the business. It was named Jack Marshall’s Take Home, specializing in Colonel Sanders Kentucky Fried Chicken. It was a small building with a revolving KFC bucket on a signpost, and also a bucket on top of the building.

“We also sold shrimp breaded in biscuit crumbs,” Barbara says, “We also sold barbecue, so the bucket on the building had chicken on one side and barbecue on the other.”

Jack’s mother made homemade biscuits and gravy. The Colonel was paid a royalty on each piece of chicken sold; and, true to form, it was on the honor system. The day of their grand opening, the Colonel and Lee Cummings came and cooked chicken for the Marshall’s.

Teal Marshall (Jack’s sister-in-law) Jack Marshall, the Colonel, and Jobe Marshall (Jack’s brother).

Jim and Donna Olson with the Colonel 1974.

As the business evolves and leadership transitions to the future, Olson is enthusiastic about the future of the Brand. Keeping consistent to the core values is the key to future success for both KFC and Harman’s. After 65 years, Harman Management is looking to the future driven by a great leadership team. Olson has 50 years in the system, and Jamie Jackson, CEO; and Jim Beglin, president of operations each have more than 30 years with Harman Management. “We all look to continue the tradition,” Olson says.

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With a 15-piece bucket retailing for $3.50, and a 21-piece bucket for $4.75 with all the trimmings and a snack pack for 45 cents, the restaurant was in full swing. Things were different back then, says Barbara. Unfortunately, the original restaurant was destroyed in a tornado on April 27, 2011. The Marshall’s business office and warehouse also were destroyed.

The Marshall’s have fond memories of the early days and the Colonel’s status as a celebrity. Barbara remembers the time he strolled from their music store in Memphis to a nearby drug store. Instantly recognizable, the Colonel in his white suit, black tie, and cane caused a traffic jam as passers-by stopped to say hello. He caused almost as much commotion as if he were Elvis Presley, Barbara recalls.

After several years, the music business was sold and Tuscaloosa became home. Today, Jack Marshall Foods consists of 18 restaurants in four states. w ww. akf c f . c o m

50 YEARS DARLENE PFEIFFER

Darlene Pfeiffer got her start in the business world as a flight attendant for TWA, one of the great historical U.S. airlines.

During a visit to Ohio, she found herself craving one of her favorite foods, KFC. When she called the corporate office to find the nearest location, she met Dave Thomas, the eventual founder of Wendy’s, who was a KFC franchisee at the time.

Thomas convinced Darlene that the KFC business was for her, and she readily agreed.

She opened her first restaurant in Kingston, N.Y., in 1967.

And with a partner she opened five restaurants in a short span of time, becoming the first woman in New York to become a KFC franchisee. Eventually, she and her husband opened nine restaurants. It was during this time that a great influence changed her life. Colonel Sanders encouraged Darlene to fulfill her charitable desires, and he remained a friend throughout his long life.

Through her business as a franchisee, Darlene became the first woman to serve as President of the Kentucky Fried Chicken National Franchisee Association (the precursor to the AKFCF), and is the only person to have served in that capacity twice. Darlene served on several national boards, including

the National Advertising Cooperative (NAC), overseeing a $200 million budget; and The National Franchisee Advisory Council (NFAC); and the Association of KFC Franchisees (AKFCF). In this capacity as a well-respected businesswoman in a male-dominated field, Darlene stood toe-to-toe with the franchisor and protected the franchiDarlene and the Colonel. sees’ rights.

Her involvement with KFC also included a 10-year stint founding and serving as editor of the communications for the Association, the very first editor of the AKFCF Quarterly. In addition, Darlene established the Kentucky Fried Chicken Scholarship Presented by Darlene Pfeiffer in 2005 with the Ulster (NY) Community College Foundation, Inc., which she supports with personal contributions.

Further, Darlene received the AKFCF Lifetime Achievement award in 2016, and she also received the Northeast Franchisee Association Lifetime Achievement Award in 2015.

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S E RV I C E AWA R D S Today, she still owns two restaurants, the original one in Kingston and another in Poughkeepsie, N.Y. Darlene says she considers her employees as part of her extended family. She especially enjoys meeting former employees who tell her of their great memories working at KFC when they were entering the workforce. It is then that she realizes that she is not just in the chicken business, but that she also is in the “people business,” she says. Darlene continues to advocate for and about women who change lives.

“I basically believe that the reward of success is one’s ability to serve others,” Darlene says. It’s obvious that she certainly follows through on that philosophy.

BOBBY G. HANNON

Bobby G. Hannon was inspired to become a KFC franchisee because of his brother, John L. Hannon. Bobby was working for DuPont Corp., when he visited his brother’s KFC restaurant in Jackson, Miss. When Bobby realized that his brother was making more money than him, he asked about becoming a KFC franchisee. John contacted KFCC to find Bobby a town to open up a KFC. He eventually opened a restaurant in Vicksburg, Miss., in 1966. Bobby figured he needed to make a certain amount per week to survive. In the first week, he made almost six times as much. The rest, as they say, is history.

“From that day on, I didn’t have any cash problems,” Bobby used to say. He became active in the Association, holding several different positions. Bobby’s favorite saying was, “KFC chicken has to have that [Come Back Flavor] in order for us to be better than the rest.” He firmly believed that and that is why KFCC is pushing for TASTE in our restaurants. Our future depends on it, he would say.

In his early days as a franchisee, operators sometimes developed their own products and menu items to keep customers coming back. Bobby added a hot-and-spicy product to compete with the newly arrived competition. He also created a sandwich when the competition began offering chicken sandwiches.

Bobby had fond memories of his meetings with Colonel Sanders. One time, he picked up the Colonel at the airport for a speaking engagement. He said that by the time the Colonel got through signing autographs and greeting people, they were an hour late for the Colonel’s appointment.

Bobby G. Hannon passed away on Sept. 2, 2014. Robert and Barbara Hannon Rials and Cindy Hannon, along with Miller Rials, currently operate the Estate of Bobby Hannon.

FRED RUTH, SR.

Fred Ruth was working for International Harvester in 1966 when he mustered the courage to open his own business. So, he sold the family farm and joined with a friend he had known since first grade. He opened his first KFC restaurant in Grenada, Miss., which is halfway between Memphis, and Jackson, Miss. Fred eventually opened six restaurants. He sold five of them in 1982, but still kept the original one in Grenada.

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Fred’s KFC restaurant is a true family operation. His wife (Betty), son (Larry), daughter (Donna) and her husband (Jay Ackman) all pitch in to help run the restaurant. In addition, Donna and Jay’s daughter, Anna Lauren, also helps, along with her husband Randall Winkler. The restaurant is open from 6 a.m. to 10 p.m.

Fred jokes that he is “too old to sift flour and Fred Ruth and the Colonel. bread chicken” so he relies on his great family to keep the business going. “I mostly sit around and watch,” he says.

Fred says he probably knows most of his customers by their first name, as his restaurant has been operating longer than any other in town. Longevity reflects the attitude of the operator, and by that measure he is a great success. Someone from the Ruth family is on-site during all hours of operation.

“We do the best job we can possibly do each day,” Fred says. “I don’t hide from my customers.

DAVID AND MARY CAROL WHITE David met Mary Carol May while working at Cedar Point amusement park, in Sandusky, Ohio in the summer of 1965. Soon after they were married, they signed on with the Colonel to become KFC franchisees.

The couple moved to Clinton, N.Y., and opened their first KFC at Oneida Square on Jan. 2, 1967. David’s restaurants grew along with the Brand and eventually they had built 32 KFC’s. He developed several other fullservice concepts and added additional franchises that didn’t directly compete with their KFC endeavors.

In addition to developing northern New York, the White’s expanded their KFC holdings throughout Delaware and southern New Jersey. In 1992, those units were sold to KFCC. Today, the White’s operate four KFC restaurants, two of which are co-branded. They also continue to operate several full-service restaurants.

The White’s have been married for 51 years. Their three children, Cheryl, Candice, and Brian all have worked in the business, as does son-in-law Ray Aley.

They also have four grandchildren.

The White’s remain very active and enjoy taking vacations with their extended family, including bicycletouring, snow skiing, and water skiing at Lake George, N.Y. The secret to their success, according to David, is getting good people, allowing them to run the operation as if they owned it, and rewarding and recognizing their success. w ww. akf c f . c o m

45 YEARS JAMES D. HOUCK

James D. Houck is a second-generation KFC franchisee. His father, James H. Houck, started as a KFC operator when James was 10 years old. Young James’ first job was to make breakfast and feed the family, at the restaurant, before they started preparing delicious KFC chicken.

Unfortunately, James’ father passed away in March 2014. James greatly misses the guidance and love that always was available from his father, who had almost 55 years of experience cooking “finger lickin’ good” Kentucky Fried chicken.

Like many initial KFC franchisees, James’ father served the Colonel’s recipe chicken in his own restaurant in Orlando, Fla., before the concept became a brand. James started in the restaurant business sweeping floors and washing dishes. The family business grew along with the KFC Brand, with restaurants throughout Central Florida. The Houck family knew that if the Brand worked, their family would be able to support themselves. Franchisees considered themselves a family, says James, and all helped each other and marched forward arm-in-arm building this great business.

After his service, James returned to Florida to help his father run the restaurants. He discovered that the Brand had grown, and also changed in some ways since he left. New menu items, modern equipment, and other changes “caught my fancy,” says James, so he worked his way back into the job.

He says his desire to be involved drove him to expand beyond just running restaurants. He took a seat on the NFAC during some tumultuous times. He also worked with the committee to create the NCAC. James and others negotiated the original contract with Pepsico. Eventually, he served as a board member and also as president of the SEKFCFA. James said he was very honored to have been elected to lead such a fine organization; one his father also had served as president.

James D. Houck (left) is previous Service Award honoree.

James started managing his first restaurant at the age of 16 in Sanford, Fla. Since he was very involved with high school athletics, he undertook tasks that wouldn’t interfere with that, such as driving distribution trucks to the restaurants at all hours or working weekends. After graduating high school, James attended The Citadel in Charleston, S.C., and thought that his days of running a restaurant would be just a fond memory. He enlisted in the Air Force as a second lieutenant pilot and saw service in Southeast Asia and later as a flight instructor.

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S E RV I C E AWA R D S The KFC business has provided James and his wife, Tina, with a good life. They have two daughters, Ashley and Alyssa. Alyssa and her husband, Bo, are involved in the family business. Bo recently was elected to serve on the board of directors of the SEKFCFA. Naturally, their son has designs on becoming a fourth-generation franchisee.

James and Tina enjoy living in Deland, Fla., with Alyssa, Bo, and their two children; Ashley, her husband Matt, and their two daughters.

40 YEARS ANNE MCKENZIE GOODNIGHT

Anne McKenzie Goodnight became a KFC franchisee in 1976, but her involvement began long before that. In 1967, her family got involved with KFC for the simple reason that her father, Jim Price, tasted the Colonel’s chicken and liked it. Jim and his family operated two restaurants in Lafayette, Ind., until 1974 when Jim, unfortunately, passed away. The family continued to run the restaurants and Anne eventually became the franchisee in 1976.

The McKenzie family.

A business manager ran the company until 1983, when Anne took over the operation. Anne also had been active in the Indianapolis Advertising Coop as Treasurer. She soon joined the Great Lakes KFC Franchisee Association and served on their board for several terms.

Tyson_AKCFC_Ad_Square.pdf 2 12/18/14 11:45 AM In 2008, Anne’s sons Jim and John McKenzie joined and helped grow the business.

Jim switched roles with Anne and became the president, and today McKenzie Foods operates 12 restaurants in Indiana. The family also is active in the construction business, and Jim built three of the restaurants.

“I was so pleased my family wanted to keep and grow our business,” Anne says. “I take such pride in watching Jim enjoying the KFC business and contributing to the KFC family.”

Anne, a business major in college, especially enjoys being active in a business that is small, yet connected to a larger entity, the corporate parent, and is happy with the recent changes at the corporate level, so the future looks bright.

“I’ve had some wonderful general managers through the years, and I truly believe they are a huge part of our team,” Anne says.

“We have had loyal employees, and I was proud to hand over the leadership of our franchise to Jim.” Anne says it’s especially important that the communities they serve value their business and products. She also enjoys teaching new employees and breaking them into the business. Anne shows no signs of wanting to slow down.

“Jim and I have a great working relationship,” Anne says. “When he asks my advice, ©2014 Tyson Foods, Inc. Trademarks and registered trademarks are owned by Tyson Foods, Inc. or its subsidiaries.

I give it, but I trust his judgment. In the end, I like keeping up with KFC.

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SCHLEICHER FAMILY The Schleicher family started in the KFC business in 1977 in Sellersburg, Ind. Rick Schleicher, son of Richard and Alice, worked at a KFCC restaurant, and when the company decided to sell it, Rick approached his parents about purchasing the restaurant.

Richard was working for the Army Corps of Engineers at the time, and the Schleicher family was living on a farm that has been in the family for over a century. The company accepted the offer from the Schleicher’s and their venture into the restaurant business began on July 1.

“It was a mixed message to find out we were the highest bidder and may have gotten it for less,” Richard jokes. “But the rest is history.”

Alice and family had met Colonel Sanders in 1978 when he stopped by to visit the Hamburg restaurant on a Saturday morning. He wanted to see the products and taste the gravy. On that visit, the Colonel told Alice to focus on quality, service, and cleanliness from open to close every day.

Alice says she will never forget her first meeting with the Colonel, and she uses his words as the foundation of their company.

graduated from law school and began working again in the family business in 2000 to learn operations from Alice and to oversee the HR department. Richard says that his engineering experience helps him manage the business side with the accountants and attorneys, while he contends that Alice is the real momentum behind the success of the business. “Alice is really the face of our organization—she is AJS,” Richard says. “She is the one that has interacted with our team on a daily basis for almost 40 years now and everyone loves Alice.”

Moving forward, the Schleicher family is looking for continued success. “We continue to be optimistic and believe we are moving in a positive direction under the current leadership team,” Richard says. “We believe in KFCC and are truly appreciative of the partnership over the years. It has been a wonderful journey thus far, but we haven’t yet reached our destination.”.

匀䔀䌀唀刀䤀吀夀⸀ 吀䔀䌀䠀一伀䰀伀䜀夀⸀ 刀䔀䰀䤀䄀䈀䤀䰀䤀吀夀

匀愀瘀攀 吀椀洀攀 愀渀搀 䴀漀渀攀礀

Alice Schleicher accepting the Hard Way Award from John R. Neal.

It was only the beginning. They doubled their presence in the KFC business in 1980 when they added a store in Madison, Ind. Then, in 1983, the family expanded into the Huntsville, Ala., market at the suggestion of Bill Evans of KFCC. Alice contends that there are two guiding principles that she operates from daily. “Put God first and remember that your greatest asset is your people.

I have always lived by the golden rule that you treat people the way you want to be treated and always treat them with respect.”

When the Birmingham market was purchased in 1987, Rick moved to Birmingham shortly thereafter to help oversee the operations of the newest market. The market continued to develop under Alice and Rick’s leadership to 13 units by 2010. Companywide, they grew to 62 restaurants. In 2010, they sold the Alabama restaurants and currently own 26 restaurants in Indiana.

Richard retired from the Army Corps of Engineers in 1992 and began to work exclusively in the restaurant business. Their daughter, Kimra,

刀攀搀甀挀攀猀 琀椀洀攀 猀瀀攀渀琀 漀渀 挀愀猀栀 爀攀挀漀渀挀椀氀椀愀琀椀漀渀 愀渀搀 戀愀渀欀 搀攀瀀漀猀椀琀猀 䔀渀栀愀渀挀攀猀 挀愀猀栀 愀挀挀漀甀渀琀愀戀椀氀椀琀礀 愀渀搀 漀瀀琀椀洀椀稀攀猀 氀愀戀漀爀 䴀漀渀椀琀漀爀 搀愀椀氀礀 椀渀昀漀爀洀愀琀椀漀渀 爀攀洀漀琀攀氀礀Ⰰ 猀愀瘀椀渀最 琀椀洀攀 愀渀搀 椀渀挀爀攀愀猀椀渀最 攀昀昀椀挀椀攀渀挀礀 䘀漀爀 洀漀爀攀 椀渀昀漀爀洀愀琀椀漀渀Ⰰ 䌀愀氀氀 䐀漀渀渀礀 䴀挀䬀愀礀 愀琀㨀 㤀㔀㄀ⴀ㔀㌀㌀ⴀ㜀㔀㠀㘀 漀爀 瘀椀猀椀琀㨀 愀洀猀攀挀甀猀愀⸀挀漀洀⼀挀愀猀栀ⴀ眀椀稀愀爀搀

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CARIBLA Report

2017 Austin CARIBLA Convention 6 By Zaira Guevara

Once again, the CARIBLA Franchisee Association had a successful annual convention in conjunction with the AKFCF Convention in Austin.

From Feb. 26 to Mar. 1, 2017, the CARIBLA franchisees, team members, LA&C, RSCS, and vendors met in Austin for a productive week of meetings, exhibits, and social events. The CARIBLA convention had the participation of 130 attendees with representation from 22 KFC Latin America and Caribbean KFC markets.

The week started with an engaging Regional Marketing Fund Meeting (RMF) lead by the KFC LA&C marketing team and KFC LA&C General Manager, Javier Benito. The RMF allows for regional alignment for the implementation of

the 2017 marketing initiatives as well as a platform for sharing best marketing practices.

Relevant topics were addressed at the 2017 CARIBLA General Session, including an annual RSCS Program Management update for the region. Since 2010, RSCS provides regional supply chain management services for CARIBLA. This partnership has proved to be successful.

Currently, the RSCS support includes brand calendar execution for key regional windows, support for the 2017 innovation pipeline, regional french fry negotiation, Brazil poultry coordination, and uninterrupted U.S. supply to our region.

Additionally, RSCS is working on regional sourcing initiatives, which are critical since more than 65 percent of the market’s spend is local or regional. During the convention, KFC COSTA RICA was recognized with the RSCS “Deliver the Goods Award” for their participation and contributions to the

regional sourcing project.

Guest speaker Steve Gililland, a member of the Speaker Hall of Fame, presented “ENJOY THE RIDE.” During his hilarious presentation, sponsored by Coca-Cola, he encouraged the CARIBLA attendees to examine who they are personally and professionally, and to rediscover an enthusiasm for work and personal life.

In the Digital Media Workshop, delivered by LA&C and Mindshare, the attendees learned about the role of paid media across online platforms and how to strategically leverage the media investment to help build a more powerful and stronger brand in our region.

The CARIBLA Convention is the only annual event that provides multiple opportunities for the markets and vendors to network. The CARIBLA events are planned to encourage and promote this valuable interaction, including the

Left: Austin CARIBLA booth row.

Above: Interactive soccer section at the CARIBLA Pepsi booth.

Right: Coca-Cola both at the CARIBLA booth row.

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CARIBLA Reception sponsored by Pepsi—held at 3TEN—and the CARIBLA lunch sponsored by Sysco.

The strategically located CARIBLA booth row in the exhibit hall was well attended. The Austin CARIBLA booth row had the participation of exhibitors with primary interest in the Latin America & Caribbean region such as Aviko, Cavendish Farms, Coca-Cola, Franke Foodservice Supply, McCain Calatin, Middleby Corporation, Microenvases, NCR Corporation, Oracle, PepsiCo, and Sysco International Food Group.

The annual CARIBLA Convention could not be possible if not for the continued support from our Diamond Sponsor partner PepsiCo, Platinum Sponsor Coca-Cola, Gold Sponsor Sysco International Food Group, and Bronze Sponsors Welbit (formerly Manitowoc) and JFP. Save the date for the 2018 CARIBLA Convention in Anaheim, Calif., Feb. 21-24, 2018.

Left: Sysco booth at the CARIBLA booth row Above: CARIBLA reception sponsored by Pepsi at 3TEN. BELOW: Pepsi booth at the CARIBLA booth row.

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R S C S

Member

Programs

Exciting Program Update: Beverage Grade CO2, Pest, Oil Management 6 By Lindsay Krebs

Your RSCS Member Programs team is focused on providing national operator programs, as well as an employee discount program for the entire Yum! Brands system. These are programs that provide unique value through specially negotiated pricing, as well as favorable contract terms and conditions.

Our operators are leveraging excellent savings on such programs as waste, energy rebates, in-store music, parcel shipping, office supplies, floor/floor mat cleaning, linens, and payroll. You can view all of the operator programs via our secure Digital Directory: www.rscs. com/memberprograms.

And our RSCS members should be sure to look for your annual Operator Savings Report in the envelope with your RSCS annual patronage dividend. This report will show your estimated savings from the key programs that you are

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already participating in, as well as savings that you could be missing out on from other programs.

To assist our operators in building employee loyalty, we also provide an employee discount program with unprecedented cell phone discounts, along with great savings for safety shoes, childcare, movie tickets, retail outlets, and more. You and your above-store and in-store employees can conveniently access the discounts through our mobile app or website (use code SAVENOW).

Please reach out to us any time with questions or your feedback at memberprograms@rscs.com.

Beverage Grade CO2: Airgas and NUCO2 The RSCS Beverage Grade CO2 program has brought special pricing and terms to our members for a number of years. We are excited to add Airgas as a new

supplier option, in addition to our long-time supplier NUCO2.

Airgas and NUCO2 are proven leaders in beverage-grade gases, both of whom who can provide quality installation, delivery, and service across the nation and at the volumes needed by RSCS members.

Along with excellent discount pricing and favorable contract terms, here are some of the benefits of the RSCS program helping you drive quality, reliability, convenience, and safety that these vendors provided: • Carbonation produced to beverage-grade specifications • Uninterrupted carbonation means the perfect drink every time • Accurate monitoring of carbonation • Proactive 24/7 call service • Regular deliveries for worryfree carbonation

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• Filling occurs from the outside of the building • CO2 monitors available to constantly sample the atmosphere for safe operation For more details, including how to start saving, visit the Digital Directory (RSCS ID and Password required): https://apps.rscs.com/ MemberPrograms. You also can contact Cindy Dahl with questions at cindy.dahl@rscs.com.

Pest: Current Brand Approved Suppliers

Oil Management: New Lower Pricing from RTI We are pleased to announce that all current and future users of the RSCS oil management program will now get even lower pricing!

The reduced pricing is reflective of the success and partnership between Restaurant Technologies, RSCS, and the many Yum! operators who are now signed up under the RSCS program. With more than 1,500 locations experiencing

the benefits of the Restaurant Technologies Total Oil Management System, pricing is lower than ever and will continue to get better as more stores are added to the program. Current users should have seen the lower pricing reflected on their February bill.

For questions or to find out how Restaurant Technologies can help you impact cleanliness, safety, quality, and sustainability, contact Dana Slagle at dslagle@rti-inc.com.

The master contracts for the national pest control program providers expired in February 2017. RSCS conducted an RFP— with the alignment of KFC, Taco Bell, and Pizza Hut—to ensure that each approved pest management professional (“PMP”) operates under the same specifications, escalation process, and contract, while providing competitive pricing consistently to all operators.

The four national PMPs that have been approved by each of the brands are again: Copesan, Ecolab, Orkin, and Rentokil Steritech. Local and regional PMPs are approved by each brand individually.

Existing operator agreements will remain in effect until expiration or termination. Please note that some PMPs are no longer approved for various reasons, including failing to comply with certain service requirements or not participating in the RFP process. If your PMP is no longer approved, it is your responsibility to provide notice of termination to your PMP in accordance with your contractual right to terminate, so you can transition to an approved PMP as soon as possible.

For a list of approved PMPs and associated pricing, visit the Digital Directory (RSCS ID and Password required): https://apps.rscs.com/ MemberPrograms. You also can contact Cindy Dahl with questions at cindy.dahl@rscs.com.

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Regional Short

Northeast: Staffing Challenges In Our Restaurants 6 By Clinton Lewis

As president of the KFC Northeast Franchisee Association and senior VP of operations of 35 KFC/KT/KL based in New York, Connecticut and Michigan, I’ve been privileged to hear from a lot of our region’s franchisees and their operators.

Most of the complaints I’ve heard lately concern the loss of RGMs. RGM’s cite

tight operating costs and the operational complexity of our restaurants as reasons for their departure. Additionally, many of our more capable current employees do not want to move up to management positions because they see the same issues.

Now why is it that our people—good people—are getting frustrated?

Clinton Lewis (author) with former KFCC COO, Brian Goldstein upon presentation of Brian’s Cool Operator Award.

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I believe this challenge in keeping good managers is due to a number of factors: onerous challenges of staffing our restaurants; ineffective onboarding/training; language barriers; perceived pay imbalances; and scheduling execution issues. Let’s examine each of these issues: • Getting People—The hiring environment is becoming more and more challenging at the same time that getting customer-focused employees has never been more important.

• Onboarding/Training—Ensuring a new employee receives a proper orientation and goes through the complete training modules BEFORE they are put on the line is essential to employee retention and effective employee deployment.

• Language—A challenge with management/employee communication as well as customer communication.

• Pay—Minimum wage going up/ pressure on existing “above min” employee wage structure.

• Scheduling—Getting “aces in their places” harder to achieve due to variable product demand and the large number of individual products.

As we review each of these obstacles to RGM retention, you’ll note that there isn’t a mention of the difficulty of achieving food cost targets or making a labor plan. That’s because these factors are the nature of business. Fortunately, KFCC/NCAC efforts to focus on the overall food cost impact of promotions and the favorable commodity costs w ww. akf c f . c o m

Regional Short

have helped food cost, and labor cost inflation must be offset by pricing that can be more strategically managed by utilizing the recommendations from RMS. So we must come up for solutions to the factors affecting RGM retention. Some thoughts on how to address these issues: • Recruiting—It is absolutely essential that a disciplined, strategic recruiting process be utilized. It’s often easy to bypass some steps and “hire easily,” but use of multiple interviews, reference checks, job explanations/previews, etc., will ensure one meets the goal to “hire the right people.”

• Onboarding/Training—All too frequently, a new hire fills out initial paperwork and is put directly into a labor position within the store. If we take the time to orient them properly and fully train new employees before throwing them into the complexity of our operations, it is costlier initially but we get a more effective restaurant long term. And, more importantly, new employees blend into the workforce better and realize more job satisfaction. Lastly, proper standards are met more often because we are continuously reviewing them as we train new people.

• Language—The diversity of our workforce is a reality in today’s QSR workplace. Hence, it’s essential to ensure that store management is staffed with the appropriate, multilingual individuals to communicate with team members.

This involves the hiring process, recognition of individual language skills when assigning shift supervisors and RGM’s, and may even apply to above store leaders.

• Pay—As more and more states raise the minimum wage, there is increasing pressure on managing overhead costs.

This issue isn’t going away, but actually is gaining momentum; there is a need to stay ahead of it to ensure “fairness” among employees and adjustments to offset costs.

Annual performance reviews and appropriate pay rate adjustments are even more essential than in the past.

• Scheduling—Preparing an effective schedule for each shift is an art that supervisors must constantly work to perfect. The challenge is eased by ensuring that the recruiting and training issues discussed above are followed.

Additionally, the proper use of forecasting/projections helps ensure employees are optimally deployed. If a team works together and the operation runs smoothly, all employees feel better about their environment and, naturally, the leader (RGM) will feel rewarded.

None of the tactics to address issues affecting RGM retention are new or surprising; in fact, they have all been around in KFC training programs for years. That said, each area requires continuous revisiting to ensure we aren’t letting our guard down and that we are taking care to keep the long-term picture in view. Our most valuable asset is a good RGM. They lead the majority of people in our organization and, if we help them implement and maintain processes to address these retention issues, they will stay with us. This is a happy outcome for everyone involved.

Southern California: Shining Star Ed Thomas 6 By Deborah Ossanlo

The Southern California KFC Franchisee Association recently awarded the Shining Star Award to Ed Thomas of Thomas Management, Inc. This was awarded at our fall meeting in Palm Desert, Calif., which was a combined meeting with the Northwest Region. Our spring meeting will be a manager’s training and recognition meeting on May 16 at Hilton Universal City, and we expect a good turnout! Our fall meeting in 2017 will be held in September in San Diego, and will again be a combined meeting with the Northwest. We are happy to partner with them for our fall meetings and hope to continue the relationship. At these meetings, we always donate to a charitable organization, and this fall we will be choosing a charity local to that area to attend the meeting and be presented with our donation. It’s a heart-warming experience that we cherish and look forward to every year!

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Executive Director U p d a t e

Teamwork Makes the ‘Dreamwork’ 6 By Kelly Rodenberg

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“

As much as your work is integral to the success of your team, the success of your team is integral to your success.

“

The above was the slogan for my daughter’s cheer squad two years ago, and as a parent of a cheerleader, I was asked to wear my squad shirt proudly at every game and competition.

After I left Austin, this slogan resonated with me again.

During the last few years, I had to make some hard decisions on letting team members go and hiring new ones who I thought would be better assets for making my dream come true for building a better Convention for the AKFCF. Those decisions have proved to be some of the best I have ever made after watching this team shine in Austin.

At times, it was easy to put my personal goals ahead of those of the people around me. It’s natural and not necessarily a bad thing; however, it was crucial for me to learn to be a team player. Acting as a part of a team builds character, teaches compassion, and ultimately achieves goals. All of these things, in turn, are integral to personal success.

Unless you are personally involved, most will never know how important the right team is to the success of our national Convention. The most impressive feats are accomplished by groups of people, not individuals. If you’re part of a team, you have to prove your merit not only to yourself, but also to

everyone with whom you’re working. When something is expected of you, there are no excuses. You either succeed or you fail. If you do fail, it’s much harder to rationalize your actions to a team you let down than it is to yourself. Even if your team understands, it’s difficult to swallow the realization that you let down more than just yourself.

Our President, Greg Atwell, had a vision for the 2017 Convention.

He pushed us all to re-think the traditional and explore the possibilities of change. He put his own spin on things and I think we all saw

that come through in Austin. If you did not know Greg before Austin, you definitely got to know him at Convention.

It took a dedicated team to bring Greg’s vision to life. I can’t mention everyone in this column, but you know who you are, and we say “thank you.”

When we do well, we set a standard that others will want to meet.

By pushing ourselves, we help push the people on our team. Of course, this works both ways. When we see someone we’re working with do something better than us, more often than not, we’ll push ourselves to meet that standard.

We are still working on ways to streamline and build a better Convention team. Our bar is now higher for 2018 and we are looking forward to another great challenge with Eric Overcash at the helm.

People respect the ability to work well with others more than anything. Our individual actions have an impact, but if we’re reluctant to do something to help our team, it’ll be evident and our contribution will be less appreciated. Having a genuine interest in your team helps you, as well as those with whom you’re working. As much as your work is integral to the success of your team, the success of your team is integral to your success. w ww. akf c f . c o m

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

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Contact your ad representative today for more information or to receive your copy of the 2017 Media Kit! Advertising Contacts: (A-K) Aileen Kronke 678.293.5201 aileen@lionhrtpub.com

2017 RESOUR

CE GUID

E

A COMP

REH

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

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

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Legal Update

Expanding The Brand (While Protecting Your Rights) 6By Ron Gardner

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“

I also want to let you know that we have done a lot of work in the last several months to update the documents that you will be receiving as part of any renewals.

“

As I write this in mid-March, I am still feeling the warm glow of what was, by all accounts, one of the best AKFCF Conventions in years. While we are facing challenges for sure, the sense of commitment and togetherness that the franchisees share with the franchisor partner has never been greater. The mutual resolve to continue the Brand turnaround, despite lots of current opportunities to snipe at one another, is illustrative of the dramatic ways in which our relationship with KFCC has matured in the last few years. Everyone remains committed to the ideal that we will rise and fall together, as mutual beneficiaries of the KFC Brand.

To that end, KFC and the franchisees have agreed on a New Build Incentive program that has the potential of having a huge impact on the stabilization and turnaround of the falling number of restaurants that the System has endured over the past decade.

Working together, KFCC and your franchisee leadership at both the AKFCF and NCAC have committed to an incentive program that allows franchisees to build new restaurants and potentially receive as much as $300,000 back in the first 30 months of operation through rebates of royalties and ad fees. This commitment makes the prospect of building a new KFC much more likely (and lucrative) than new restaurants built without such an incentive. If you have had an inkling to expand your operation, but have been hesitant because of the economics of such a process, this program is worth a serious look.

Of course, while we all believe that new locations are essential to the Brand turnaround, it does no one any good if we are trading new restaurants for old ones. Therefore, as part of the New Build Incentive, KFCC and franchisee leadership have negotiated an Impact Policy aimed at protecting existing restaurants from an overbearing impact from any new restaurants yet to be constructed or from the reopening of old locations.

Based on an impact policy that was originally negotiated between KFCC and the NCAC in 1999, when a new store is proposed to be built, franchisees with

Section 19 rights will automatically receive the opportunity to: (a) negotiate to open the location themselves (pursuant to Section 19 of your Franchise Agreement); (b) ask for an impact study in order to learn whether a new store would cause a material adverse impact to an existing location; or (c) both of the above.

Under the Impact Policy, if the study reveals that a new location would reduce the level of sales at an existing location by 15 percent or more, the new restaurant will not be allowed to proceed forward.

The assumption is that if the existing store is affected by 10 percent or less, that new restaurant will likely be approved (although, KFCC has reserved the right to disapprove even those locations when certain factors exist, e.g., impact on lowvolume restaurant, cumulative owner impact, cumulative same restaurant impact, cross owner impact, etc.). For those restaurants where the impact study reveals an impact of between 10 to 15 percent, the parties have agreed that further study and analysis will be done to determine whether or not the new store would imperil the original restaurant. And if that is likely, the new store will not be allowed. Again, this is about store growth, and not trading new ones for old ones.

Additionally, and of significant value to you, franchisees who do not have Section 19 rights (i.e., those that are second closest), may also, under certain circumstances, have the right to seek an impact study. This is in recognition of the fact that there may be instances when not only the closest restaurant will be impacted, but one that may not technically w ww. akf c f . c o m

be the closest, but shares a market with the proposed new location, might also be affected.

For more specifics, please feel free to contact me, or your NCAC representative, and get a copy of the Impact Policy as it currently exists.

Renewals I also want to let you know that we have done a lot of work in the last several months to update the documents that you will be receiving as part of any renewals. Since you received your initial Franchise Agreement, and any renewals of those agreements, a lot of things have changed. We have negotiated many systemwide agreements that affect the Franchise Agreement, including the Merit Agreement and the Acceleration Agreement, and those changes needed to be brought into the renewal documents that are being prepared as the system moves into the next 20-year phase of its existence.

Because different agreements are affected in different ways (e.g., 76[5p] franchise holders have some different rights than 5/15 franchise holders), the documents are not all identical, and you have to make sure that you are looking at the right document compared to your situation. We are in the process of finalizing those documents; it is our intention to put them all on the AKFCF website in the members-only section. So when you get those documents, you can compare what you received to the documents that have been approved for use in the system. Of course, if you have any concerns about your legal rights when it comes to renewal, I would welcome a call from you, or, you are always welcome to work with your own counsel to make sure that you are comfortable with the legal documents that you are signing.

Finally, and related to these renewals, I want to end this column giving credit where credit is due to our KFC partners.

Under your Franchise Agreement, KFCC has the right to increase the amount of fees it is entitled to when it comes to renewal, minimum royalties, etc. Those fees have not been increased since 2006—despite KFCC’s right to do it every year.

Late last year, KFCC indicated that they believed it was time to increase fees. This is something that is completely within their right to ask. However, on behalf of your AKFCF and NCAC, Ben Johnson and I asked the KFC LT to reconsider this decision in light of the spirit of cooperation we are having in the face of the current Brand turnaround challenges. KFCC heard us, and agreed to forebear on a fee increase at that time. They also subsequently agreed to not increase the fees unless they have given us at least six months’ notice of their intention to do so. This is an extraordinary good faith gesture that we all greatly appreciate.

I wanted to let you know what good partners KFCC are being when it comes to your money in these times that we are all working to reinvest in the Brand.

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

advertiser INDEX

Page ADVERTISER

61 American Security Products

15 Auspex Capital

35 Café Valley Bakery

39 Capitol Light

69 Commercial Site Design

C2 The Dallas Group of America Inc.

53 DelaGet

C3 Dr Pepper Snapple Group

37 DuroLast Roofing

24, 25 Ecolab Kay Chemical Company

11 Envysion

69 FSV Payment Systems

51 Genpak

9 Gycor International

31 HME

41 KFC Foundation

59 Koch Foods

49 NDA Inc.

19 OneDataSource.com

5 Pacific Premier Franchise Corporation

43 Paychex Inc.

1 Pepsi Cola

57 Pilgrim’s Pride 3 Procter & Gamble Distributing

33 R.F. Technologies

13 RATIONAL USA

6, 7 RSCS

38 Sprint Wireless

60 Tyson Foods Inc.

63 Welbilt

C4 Winston Industries

69 Worcester Industrial Products

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L o o k i n g

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the

FLEXIBILITY

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

2