QUARTERLY
Association of Kentucky Fried Chicken Franchisees, Inc.
Fall 2023
What Restaurant Leaders Wish They Knew About TRUST PLUS: GAC Report | Jim Sullivan | Convention Preview
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CONTENTS
AKFCF QUARTERLY Fall 2023
22
26 FEATURES GAC Report: Julie Su and Government Funding Part Two 18 By JoAnna Mueller Julie Su has been acting Labor Secretary since March 11, 2023. However, there is no current plan to bring her nomination to the Senate floor. She has tried to win over holdouts but has been unsuccessful. In fact, in recent weeks, a key vote swung against her.
22 By Jim Sullivan
5 New Rules of Leadership An overview of the key leadership strategies Sullivan has been focusing on in his presentations and workshops.
What Restaurant Leaders Wish They Knew About Trust 26 Earlier In Their Career By Justin Patton Executive Coach Justin Patton dives into insights from veteran restaurant leaders on the value of trust between employers and team members.
FAMILY — GET READY TO REACH! 34 KFC By Kelly Rodenberg
34 DEPARTMENTS 4 From the Editor 6 President’s Report 10 NCAC Report 12 In the News 44
KFC Foundation
47 Leadership Development Committee 48
RSCS Member Programs
50 Regional Shorts 52 Executive Director Update 54 Legal Update By Ron Gardner 56 Looking Back
At the 2024 Annual Convention, you will be challenged to think bigger and bolder about the boundless potential of your restaurants and the future of the KFC brand. On the Cover: What Restaurant Leaders Wish They Knew About Trust Earlier In Their Career Justin Patton, founder of the Trust Architect Group, dives into insights from veteran restaurant leaders regarding what they wished they had known about trust earlier in their careers. 2
AKFCF Quarterly Fall 2023
BETTER TOGETHER
PEPSI, PEPSI-COLA, the Pepsi Globe, and the Pepsi Pulse Design are trademarks of PepsiCo, Inc. Kentucky Fried Chicken is a registered trademark of the KFC Corporation.
FROM THE EDITOR
QUARTERLY Official Publication of the Association of Kentucky Fried Chicken Franchisees AKFCF QUARTERLY MISSION STATEMENT
GET READY TO REACH By Michelle Hunt
I
t’s so exciting to finally unveil the details for the 2024 AKFCF Convention! We’ve already launched early-bird registration (through November 30). The fee will go up on December 1, so make sure you get registered. If you have questions about registration, I can help! For now, though, read through all the details beginning on page 34 and get fired up for Reaching Impossible. As I write this, we are making the final preparations for the Fall Super Regional meeting in Atlanta where five of the six domestic regions will join together for the first time. Jennifer Thomas took the lead on this meeting and did such an amazing job making sure we will walk away with actionable information to better our businesses. From top-notch ARL and Franchisee Workshops to celebrating our vendor partners, joining the Southeast tradition with the Door Prize Breakfast, and gaining time with the KFC LT. It is really going to be a memorable meeting. Speaking of meetings, a familiar face — Justin Patton — will be assisting with workshops at the Convention and presenting at the Super Regional. He also contributed the main feature article in this issue on page 26 all around the topic of trust. Another familiar face, Jim Sullivan, provides some lessons in leadership on page 22. We hope their messages will inspire some reflection and thinking about employees and businesses differently. Additionally, you will not want to miss our columnists, especially AKFCF President Justin Stewart. Further, Jim McKenzie gives an update on the NCAC, Keith Cole talks Leadership Development, Shane Lovato and Kevin Schlutz give us regional reports, Executive Director Kelly Rodenberg outlines the new AKFCF Strategic Plan, and Ron Gardner informs us of recent meetings with KFCC leadership. And as usual, things have been lively in Washington, D.C., so don’t miss the government affairs committee article on page 18. I can’t wait to see many of you at the Super Regional and look forward to joining you at the 2024 AKFCF Convention in Las Vegas where we will be Reaching Impossible. Warm Regards,
4
AKFCF Quarterly Fall 2023
The AKFCF Quarterly is the voice of today’s franchisee family and supports the mission of the Association of Kentucky Fried Chicken Franchisees, Inc.
AKFCF EDITORIAL TEAM
AKFCF President Editor Assistant Editor AKFCF Administrative Manager Communications Chair Executive Director Past President
Justin Stewart Michelle Hunt Julie Mantlo Michelle Hunt Kevin Schlutz Kelly Rodenberg Keith Cole
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.hunt@akfcf.com Julie Mantlo 855 Lovers Lane, Suite 111, Bowling Green, KY 42103 Phone: (270) 783-8880 julie@rogmancorp.com
Zaira Guevara (International Liaison) 7750 NW 46TH Street PTY 1495 Doral, FL 33166 Phone: (305) 384-4242 (U.S.) (011) 506 2208-7828 (Direct) zguevara@caribla.com
Copyright ©2023 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 1071-9873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation.
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Send all advertising and editorial submissions for AKFCF Quarterly to:
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9040 Roswell Road, Suite 210, Atlanta, GA 30350 Phone: 770.650.1102 President Vice President/Publisher Publishing Editor Art Director Advertising & Production Manager Account Executive Circulation Manager Accounting
Larry Lebovitz John Hanna Cory Sekine-Pettite Jack Simonetta Megan Willis Jamie Ryan Amy Fine Marilyn Walker
FROM THE PRESIDENT
WE GAIN STRENGTH BY LEARNING FROM EACH OTHER By Justin Stewart
I
often hear franchisees reminisce about the “good old days” of local ad co-ops and the information sharing that happened at those meetings. I said the same thing to my brother recently, when he replied, “Well why don’t you get off your butt and go visit some other franchisees and learn from them? You don’t know everything!” I told him, I do know everything, and that was a stupid idea, but I’m going to do it anyway. I hate when he’s right! Over the last two months, I’ve had the privilege to visit with some of our top operators. In late August, my leadership team went to learn from the great Larry Starkey, and the current #1 on the KFCC Large Operator scorecard, Dave Evans’ group. At the outset, we had specific questions: How is Larry’s team of seven restaurants consistently achieving 108 seconds or less on their Drive Thru speed? How are Dave’s restaurants achieving such a high Ops score, along with a high digital percentage of sales — something we have struggled to do? I had trepidations regarding the expense of flying my team out to Boston. I thought to myself, maybe I just fly out with my senior director of Ops and then we bring back what we learned. Luckily, I talked myself out of that and brought my entire leadership team of 12. Looking back, I would have no problem if I had spent twice the price for what we learned on our visit.
Each day started with a Best Demonstrated Practices (BDP) sharing session followed by visits at restaurants. I wanted to make sure that our visit wasn’t just one way, with us just taking from them and not giving some of our ideas, so we brought a bunch of our BDP’s to share with them. It turned out that both days our group sessions lasted longer than we planned because of the amount of information that we wanted to share. In mid-September, we also had the opportunity to host Harman Management’s leadership team in our Bakersfield, California market. This visit turned out just as good because they shared some incredible success stories. We have done similar visits with KBP and RBD over the years, and we always learned ways to improve our business! I could now list all the great ideas, routines, and processes we learned, but alas, that would defeat the main reason for this article! Currently, we are working on implementing as many of their routines and processes as we can! We are going to be better at our Drive Thru speed, digital execution, and many other things because of our recent visits. I heard a great analogy from a friend who is a VP in a completely different industry. He said executing successfully at anything in life is like rolling a bowling
KFCC is pushing innovation at all levels with its K2 missions, and your NCAC is initiating Transformation Discussions across all committees to bring the best ideas forward! 6
AKFCF Quarterly Fall 2023
ball on a flat surface. If it’s a great idea and you throw it hard, it will roll for a while but eventually inertia runs out and the ball stops. We either decide to pick up that ball and roll it again, or we get left behind. Every organization — and every person within those organizations — must decide to pick up the ball again, re-innovate, retool, and roll it again! Sometimes, one person doesn’t want to roll again, or even worse, hasn’t been rolling the ball for a while. As a leader, you can’t wait to act in such circumstances. It might be the difference between winning or losing against your competitors! Make no mistake, wherever they go, they will have to pick up a new ball and roll it. Help them understand this if they are worth keeping on your team! A more difficult challenge is when we as a team, an organization, or a brand have coasted on our last roll of the ball. It is with that urgency that I tell you that AKFCF has recently gone through a strategic planning session that is going to set us up for the next three to four years! I would be remiss if I didn’t mention that your KFC Foundation has done the same. KFCC is pushing innovation at all levels with its K2 missions, and your NCAC is initiating Transformation Discussions across all committees to bring the best ideas forward! I truly believe our leaders have recognized that it is time for us all to pick up the ball, re-innovate, and roll it like we have never done before! My challenge to you is to pick up your ball and roll it by sharing your ideas with your AKFCF and NCAC leaders, and then get out there and visit other operators! We don’t win by keeping our great ideas to ourselves! We win or lose together! I want to win! How about you? n
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NCAC REPORT
VALUE FOR OUR CUSTOMERS AND OUR FRANCHISEES By Jim McKenzie, NCAC Vice Chair
W
e just wrapped up our quarterly NCAC meeting that was packed with important discussions and decisions made that impact the entire system. We spent time having candid and thoughtful discussions with our KFC partners about the state of the business, focusing our attention and decision-making efforts on the things that matter most to the KFC Family and to our customers. We must maintain a sense of urgency on profitable sales, transactions, growing our customer base and brand fans for our future while not forgetting or ignoring our core customers that love us. Our Hot & Spicy Wings are a fan favorite, and our customers can get them at an attractive value for a limited time. We are leaning into football with our advertising, and you also can also see our ads during popular primetime shows, including “Dancing with the Stars,” “Amazing Race,” “The Simpsons,” and “Bachelor in Paradise.” Being a bit of a football fan myself, I’m happy to see that Deion Sanders and family love our Hot & Spicy Wings, too. Check out the message that recently went out via email to Colonel’s Club. Deion is hot and all over the news. It’s great to have him continue to share his love for KFC. Continuing to offer our customers value is important. Our $20 Fill Up is one of those ways we will provide meaningful value promoted through media. Many of you have been asking when Wraps are coming back. Well, they’ll be back before you know it with 2 for $5 Wraps with a new, third flavor, Mac & Cheese, starting November 13 and going through January 22. We hope to have news to share with you soon to add buzz and value to the Wrap promotion right after the New Year. As we continue to reach new, younger customers, expanding our relevance in the gaming space will continue to be important. PUBG (PlayerUnknown’s Battleground) is considered one of the most popular online games in the world and in mid-October, KFC U.S. will join other KFC markets around the globe to promote the brand in PUBG. You will receive restaurant window posters, and customers will see social and digital media efforts promoting the in-game KFC restaurant, branded and exclusive items only available to customers who purchase any KFC meal through the KFC app or on KFC.com. Customers can unlock one code per account and we also will benefit from the game developer’s promotion of KFC in PUBG. Our new loyalty program, KFC Rewards is planned to go live nationally in mid-November and the KFC teams are in all-handson-deck mode to get this important program launched. KFC
10 AKFCF Quarterly Fall 2023
Rewards will be focused on customer acquisition and adoption of our owned channels, driving frequency among our current customers, shortening our customers’ purchase cycle, and providing a meaningful tool to engage with customers and promote KFC. We will surprise and delight customers with our points-based program positioned to provide exclusive benefits and experiences through
gamification. I am excited about the launch of this program and what it will mean for all of us as we continue to stay focused on driving profitable sales and transactions. Extensive and ongoing marketing and promotion of KFC Rewards is in development, ensuring that every viable touchpoint in and outside of our restaurants gives customers the opportunity to download the app and sign up for our loyalty program. This should be a game changer for us. Lastly, I wanted to call out the intentional focus on consistent brand assets that showcase serving joy to customers. This is highlighted with the recent launch and inclusion of our mnemonic at the end of our advertising. You can’t say “Finger Lickin’ Good” without someone knowing you’re talking about KFC so why not take advantage of that memorable, ownable, and distinctly KFC set of words and our iconic bucket to anchor our advertising and communications to customers. And you can hear a memorable “It’s Finger Lickin’ Good,” too. You can find all of this in the recent communication KFCC sent to the system that included the new Brand Book and Style Guide featuring our Brand Purpose overview and approved assets along with important details about KFC’s Culture Values. Your NCAC Representatives along with the KFCC teams attending the upcoming October AKFCF Super Regional in Atlanta will have more to share with you as we close out 2023 and look forward to a great 2024! n
Fall 2023 AKFCF Quarterly 11
In the NEWS
STILL HUGE GROWTH POTENTIAL FOR KFC IN CHINA
A
key theme emerging from Yum China’s recent Investor Day event, hosted in Xi’an, was the company’s confidence in the huge growth potential for its brands in China. Significantly, during the event, the company’s leadership announced an ambitious goal of reaching 20,000 stores by 2026. For reference, Yum China shared that it has 13,602 stores at the end of the first half of 2023. While all Yum China’s brands will have an important role to play in making this goal a reality, a significant amount of this expansion will need to be contributed by KFC, which is already deeply embedded in China and a firm favorite among Chinese consumers, having opened its first China store in 1987. Today, KFC operates over 9,500 restaurants in more than 1,900 cities across China, handling more than 1 billion transactions annually. Mean-
while, KFC’s membership program — standing at 410 million registered members and counting — and various digital store formats, are important competitive advantages. Speaking at the Investor Day event, KFC’s General Manager, Warton Wang said, “Considering China’s population size and the large number of cities, we see huge growth potential. KFC’s market share in China’s quick service restaurant (QSR) market is around 5 percent, while the market share of the other top 10 brands combined is less than 10 percent.” In the past five years, KFC has averaged 22-percent annual growth in net additions of new stores. This has been possible in part due to a variety of new store models, which allows KFC to cater to diverse customer preferences, adapt to location constraints,
align with regional preferences, and improve operational efficiency. Concurrently, KFC has continued to optimize its investment in new stores, with the new store opening payback period remaining consistent at around two years. Notably, first-year cash margins of KFC’s smaller store models are about 21 percent, higher than overall new store performance. Flexible store models require lower upfront investments than standard stores, therefore unleashing significant growth potential for KFC. KFC has also been achieving increased efficiency through new technology, such as in-store IoT, automatic cleaning devices, automatic order replenishment systems, and shared labor scheduling systems. Source: valuewalk.com
KFC TESTS NEW SMASH’D POTATO BOWLS IN PITTSBURGH KFC looks to take their Famous Bowls to the next level by testing new Smash’d Potato Bowls at select locations in Pittsburgh, PA.
K
FC’s Smash’d Potato Bowls are a twist on fan-favorite Famous Bowls, filled to the brim with comfort food favorites like KFC’s Secret Recipe Fries, mashed potatoes with a warm cheese sauce, crispy bacon crumbles and sprinkled with a three-cheese blend. As part of the test, KFC is offering Smash’d Potato Bowls for $3.49 each, with an option to add five hand-breaded Kentucky Fried Chicken Nuggets to your Smash’d Potato Bowl for $5.49. Source: chewboom.com
Condolences: Robert L. Thorstenson, 88, of Bayles Lake, Illinois, passed away on Sept. 30, 2023. After teaching at the high school level, Robert joined the business world in 1964, forming close lifetime friendships with Bill Cofel and John Healey, operating KFC franchises in Illinois, Wisconsin, and Indiana. He was a former chairman of the KFC National Co-op Advertising and enjoyed working with The Colonel. Robert is survived by his wife of 63 years, Diane Thorstenson; one son, Todd (Julie) Thorstenson, and Tanya (Matt) Judy; and six grandchildren. We offer our sincere condolences to the family.
12 AKFCF Quarterly Fall 2023
James (Jay) William Thomas, Jr., 50, husband to AKFCF Trade Show Manager and SE Region’s Executive Director Jennifer Thomas, passed away on Sept. 27, 2023. Jay grew up working with and learning from his “Pop” at Ace Paint & Body Shop. After graduating from Radford University with a bachelor’s in Finance and a short career with State Farm and Philip Morris, he took over ownership and operation of the body shop. He continued a reputation for quality, excellence, and trustworthiness with his customers. Jay is survived by his wife, Jennifer; their sons, Layton, Rafe, and John Hudson; and a large extended family, including Bill and Bonny Shelton. We offer our sincere condolences to Jennifer and her family.
KFC INDIA LAUNCHES SPECIAL SIGN LANGUAGE BUCKET The buckets will feature signs for numbers and sizes to facilitate ordering at the restaurants.
K
FC India has launched a special sign language bucket to raise awareness about Indian Sign Language. According to a report by the Hindu, the new bucket was launched on the International Day of Sign Languages, which occurred on September 23. It will be available across all KFC outlets in the country for one week and will have images of sign language motions for basic terms such as ‘hello,’ ‘please,’ ‘good morning,’ ‘how are you,’ ‘have a good day,’ ‘lol,’ and ‘What’s up?’ In addition to signs of basic terms, the buckets also will feature signs for numbers and sizes to facilitate ordering at the restaurant.
The new initiative is part of the brand’s Kshamata program, which aims to bridge the gender and ability gap to empower women and those who are speech and hearing impaired at their restaurants. The program has also seen the introduction of a special sign language menu at two restaurant outlets in the south Indian city
of Hyderabad. According to the news agency, these KFC venues are operated by speech and hearing-impaired employees. In June 2022, KFC India revealed its new initiative, KFConscious, which aims to set up sustainable restaurants in the country. The move aligns with the brand’s efforts to cut greenhouse gas emissions and support sustainable development in the industry. The first of these sustainable locations has already been set up at Thiyagaraya Nagar (T Nagar) in the South Indian city of Chennai. Source: verdictfoodservice.com
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Fall 2023 AKFCF Quarterly 13
In the NEWS
A FAMOUS NEW ZEALAND JEWELER RELEASES 11 ONEOF-A-KIND KFC NECKLACES
I
t’s not every day that you see a fast-food giant teaming up with a local jeweler, but that’s exactly what KFC has gone and done in its latest merch collab for charity. KFC in New Zealand has joined forces with Kiwi jewelry wiz, Nick Von K, to cook up an 11-piece (see what they did there) bespoke jewelry collection. Yes, you read that right — necklaces inspired by fried chicken. It’s a match made in foodie heaven! Nick hand-crafted 11 beautiful looking necklaces from sterling silver and pearls, each one representing one of KFC’s top-secret ingredients. It’s like wearing a piece of culinary history around your neck, but, you know, minus the crumbs. Apparently, these necklaces are so unique that no two are the same. “Each link is individually cast, and hand finished before being put together to form the chain. It’s time intensive but it’s so worth it for a distinctive look,” Nick said. On his inspiration Nick explained: “There’s no bones in the [Hot & Spicy] chicken so
I took that as inspiration and created an 11-piece collection — one for each of the secret herbs and spices. These are elevated one-off pieces that would suit anyone and their style — from streetwear to couture. I
can see them on an indie kid or the coolest grandma.” So, ‘how much for one of these pearlers?’ I hear you ask! Well, let’s just say they’re worth their weight in chicken gold and will leave a $1,299 sized hole in your wallet. But before you start throwing your wings out of the bucket, the money is promised to a good cause. As per, KFC are supporting Surf Life Saving New Zealand. You might remember the limited-edition merch they released last summer for the same cause. We’re talking Hawaiian shirts, tote bags, and a one-of-akind surfboard! Well, it turns out KFC ended up raising $47k, and are wanting to make an even bigger donation this year! KFC’s Clark Wilson summed it up perfectly: “We’re thrilled to partner with Nick to bring this launch to life.” Chicken, jewelry, and charity — now that’s a combo worth celebrating!” Source: morefm.co.nz
KFC CANADA INTRODUCES CRISPY CHICKEN NUGGETS
N
ugget lovers rejoice — KFC Canada is introducing new Original Recipe Nuggets. Available across Canada for a limited time, KFC’s new nuggets are the real deal, made with locally sourced chicken, freshly hand-breaded in KFC’s iconic secret blend of 11 herbs and spices. The mouthwatering morsels are crispy on the outside and when broken apart, reveal a juicy, 100-percent white meat core. In addition to launching Original Recipe Nuggets, KFC Canada also has released a new special sauce. Whether Canadians dip or dunk their nuggets in sauce, KFC’s sauce is expertly made to complement the savory flavors of 11 herbs and spices Original Recipe Nuggets. The sauce offers a creamy texture to coat the Nuggets’ crunchy exterior. Tangy with a mustard-flavor to boast, the sauce completes the Original Recipe Nugget experience. Now available in restaurant, online at KFC.ca and through the KFC App. But only for a limited time. “As the world’s #1 fried chicken brand, we always want to give Canadians new and different ways to enjoy our chicken,” said Katherine Bond-Debicki, CMO, KFC Canada. “We want consumers to enjoy all the qualities they love about our Original Recipe Chicken, but now as an irresistible bite-sized nugget. We’re so excited about this launch, not only because we know how much Canadians love
14 AKFCF Quarterly Fall 2023
their nuggets, but because we’re offering them a Finger Lickin’ Good option that’s sure to become their go-to.” The launch is supported by a creative campaign that can be seen and heard through high impact Out of Home, TV and OLV, and across KFC Canada’s Instagram, Facebook, TikTok and YouTube channels. Source: KFC Canada
n
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 ARL
Above Restaurant Leader
ASAP American Showman Asset Program AUM
Assistant Unit Manager
BOGO
Buy One Get One
BOH
Back-of-house
BSC
Balanced Scorecard
COB
Chicken on the Bone
COGS
Cost of Goods Sold
DMA
Designated Marketing Area
Franchisees (formerly known as the IAKFCF, International Association of KFC Franchisees) KFCC Kentucky Fried Chicken Corporation
Restaurant General Manager
NAC National Advertising Cooperative (merged with NFAC to become NCAC)
RMI
Restaurant Margin Improvement
NCAC National Council and Advertising Cooperative
ROI
Return on Investment
NFAC National Franchisee Advisory Council (merged with NAC to become NCAC)
RSC
Restaurant Support Center
RSCS Restaurant Supply Chain Solutions (formerly UFPC)
NPC National Purchasing Cooperative (i.e., KFC NPC) OEC Operations Excellence Committee
FIT
Food Innovation Team
FSC
Food Safety Consultation
GAC
Government Affairs Committee
IAYF International Association of Yum
Quick Serve Restaurant
REC Restaurant Economics Committee RGM
NMS ational Marketing Subcommittee
FA (Or F/A) Franchise Agreement
QSR
PAC
Political Action Committee
POP
Point of Purchase
POS
Point of Sale
ROCC Restaurant Operations Compliance Check
SBRA Supplier Business Relationship Agreement TOL
Territory Operations Leader
TRP
Targeted Rating Point
VOC Voice of the Customer (formerly CBCC) YUM
Yum! Brands
YRI
Yum! Restaurants International
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Fall 2023 AKFCF Quarterly 15
PICTURE YOUR SAVINGS Member Programs
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18 AKFCF Quarterly Fall 2023
JULIE SU AND GOVERNMENT FUNDING PART TWO CONGRESS MUST OVERCOME MASSIVE OBSTACLES TO KEEP THE GOVERNMENT FUNDED. By JoAnna Mueller
Fall 2023 AKFCF Quarterly 19
While the Julie Su nomination stalls to a standstill, Congress has a big task ahead of them this fall: keeping the government funded and open.
J
ulie Su has been acting Labor Secretary since Mar. 11, 2023. However, there is no current plan to bring her nomination to the Senate floor. She has tried to win over holdouts but has been unsuccessful. In fact, in recent weeks, a key vote swung against her. Sen. Joe Manchin came out publicly against her confirmation. He said, “while her credentials and qualifications are impressive, I have genuine concerns that Julie Su’s more progressive background prevents her from doing this and for that reason I cannot support her nomination to serve as Secretary of Labor.” Biden was quick to call out Manchin. Within minutes, a White House official said Manchin should reconsider his position. Their frustration with Sen. Manchin is because now the acting Labor Secretary cannot afford to lose another vote in the Senate and there are other Democratic Senators that are not yet committed to her. Groups are now arguing that any rules and regulations issued while Su is acting secretary do not have political legitimacy or constitutional authority. If she remains unconfirmed indefinitely, the Su-led Department of Labor will be more vulnerable to legal action. Yet the Biden White House does not seem likely to shift strategy. While the Julie Su nomination stalls to a standstill, Congress has a big task ahead of them this fall: keeping the government funded and open. Congress managed to avoid the first potential shutdown on September 30 when
20 AKFCF Quarterly Fall 2023
they passed an extension of FY23 funding levels through November 17. They reauthorized the FAA and the national flood insurance program through the end of the year. There’s $16 billion for disaster relief; however, there was no Ukraine or border funding which were major sticking points. McCarthy steered the ship at the risk of drawing a motion to vacate from Matt Gaetz — something that happened in early October when he was ousted as Speaker by a vote of 216-210. All Democrats joined eight Republicans (Andy Biggs, Ken Buck, Tim Burchett, Eli Crane, Matt Gaetz, Bob Good, Nancy Mace, and Matt Rosendale). As of October 13, Patrick McHenry is the temporary speaker and the leadership battle inside of the GOP conference shows no end in sight. This likely puts everything else on hold until it is sorted out. When the next speaker wins their gavel, House Republicans will try to pass FY2024 appropriations bills with spending reductions that have no chance of becoming law. The best leadership can hope for is an open negotiation with the Senate. A shutdown on November 17 becomes more and more likely the longer the fight over who will become the next speaker rages on. While Congress is currently consumed with these two fights, this past summer, Republicans in the House unveiled their tax agenda. One of the bills that is key to this agenda is the Build It in America Act. It was approved by the Ways and Means
Committee by a vote of 24 to 18 along party lines. The legislation, if it becomes law, would retroactively restore business interest deduction limitation under Section 163(j). However, while this bill might pass the House, it would struggle in the Senate. Another bill we are watching closely is the Main Street Tax Certainty Act. The House version of the 199A permanency bill was introduced today by Rep. Smucker (R-PA) with 92 cosponsors. The Senate version of this bill was introduced by Sen. Daines (R-MT) in May of this year and currently has 18 cosponsors. Section 199A, which was adopted as part of the landmark 2017 Tax Cuts and Jobs Act, allows for a 20 percent deduction of qualified income for pass-through businesses. This is key for small businesses like franchisees. It is pro-growth tax policy. A recent study from the S Corporation Association, which represents individual and family-owned businesses, reports that tax parity between small businesses organized as pass-through entities and corporations will end if Section 199A ceases to exist. While we are not optimistic about the Build It In America Act or the Main Street Tax Certainty Act making it into law, with Democrats so opposed, there is a chance that elements of these bills end up in an omnibus in Congress at the end of the year. Stay Involved, Donate to the AKFCF PAC Contributing to the AKFCF Political Action Committee (PAC) is the best way to support the election and re-election committees of pro-business Members of Congress who share the same concerns as franchisees. The money raised in the PAC goes directly to the campaign of those running for Congress, or incumbent members seeking re-election. You may make your 2023 AKFCF PAC donation online by visiting our portal on the AKFCF website in the Government Affairs tab. For more information, please contact your regional GAC representative or Amber Peoples of Polaris Consulting, LLC (apeoples@polariswdc.com). n
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22 AKFCF Quarterly Fall 2023
5 New Rules of Leadership By Jim Sullivan, CEO, Sullivision.com
I
have the pleasure of presenting leadership development keynotes for operators and franchisees around the world. Some of our clients include Coca-Cola, Chipotle, Panera, McDonald’s, Pizza Hut, Disney and of course, KFC. One of the best things about speaking to leaders today is that after three years of COVID, we are focused once again on how to play to win instead of playing not to lose.
Fall 2023 AKFCF Quarterly 23
Here’s an overview of the key leadership strategies I’ve been focusing on in my presentations and workshops. If you’d like to go on a deeper dive on any of these strategies, check out my bestselling book “Multiunit Leadership” or “Fundamentals” at Sullivision.com or Amazon.
tal improvements in accuracy, speed, quality, service, cleanliness, and sales. That way, shift-by-shift, you incrementally attain the larger monthly or quarterly P&L goals. By the inch, it’s a cinch; by the yard, it’s hard.
#1 Strategic Clarity: Create a Leadership GPS
The average hourly turnover rate in the foodservice industry is now 174 percent, which means that your primary staffing strategy is now retention. This churn rate is simply unsustainable and is taking its toll on our hard-working RGMs. Especially when we impose labor targets that results in RGMs having to work hourly positions during peak periods to keep on budget. The truth is that there is no labor crisis; there are only companies who fail to put people first. Keeping employees engaged and happy is the best marketing you can do. Be supportive and grateful for all your team members before, during, and after every shift. Daily recognition, engagement, and encouragement of our team members is like brushing your teeth. You don’t have to do it
Let’s start with the basics: your goal is to teach your KFC managers and hourly team members how to think instead of just telling them what to do. It all starts with identifying and then clarifying the specific strategies you want to deploy in the coming year in your operations and 1) clearly communicating those strategies to the team on a daily basis and 2) making certain that all your managers and team members clearly understand their specific roles in achieving those goals. To that end, strategic clarity is not achieved by a speech, or a poster, but is realized by staging effective daily pre-shift meetings in which you focus on incremen-
24 AKFCF Quarterly Fall 2023
#2 Talent Density: Retention as a Recruiting Strategy
with everyone; just the ones you want to keep. A solid retention strategy doubles as an effective recruiting strategy. Now is the time to ask yourself another big question: Are our current KFC processes for recruiting, onboarding, and training new team members still effective? Or were they created and designed a decade ago to target and develop an employee that no longer exists? Forward-thinking foodservice chains have combined demographic insight with new tech tools that supercharges both the recruiting and shoulder-to-shoulder training processes.
#3 Habitual Consistency
Consistency in operations is the most effective marketing strategy you can deploy. Executing to standards brings back more customers with their family and friends. When we fail, we don’t fail to the level of our goals, we fail to the level of our systems. Assess your systems and processes quarterly and reduce complexity wherever it exists. Be persistent in sticking to the KFC standards that result in consistent throughput, consistent training, and consistent profit-
Forward-thinking foodservice chains have combined demographic insight with new tech tools that supercharges both the recruiting and shoulder-to-shoulder training processes. ability. Make pre-shift meetings mandatory, not optional and focus on consistency as a goal of every shift. Use your smartphone to record the pre-shift meetings that are most effective and share them with all your other managers. Persistency gets you there. Consistency keeps you there.
#4 Relentless Repeatability: No Train, No Gain
The key to consistency in operations — no matter who is managing each shift — is consistent, daily engagement, training, and focusing on established standards around accuracy, cleanliness, quality, teamwork, service, and selling. Don’t expect 100-percent productivity from team members when you only give them 10-percent training. We can’t
hold teams responsible for not doing what we never showed them how to do. Here is where pre-shift meetings deliver yet another benefit — a daily platform for teaching and learning. If your RGMs are inconsistent in their pre-shift meetings, then make those meetings part of their bonus criteria. What you reinforce is what you get. What you don’t reinforce is what you lose.
#5 Fierce Resolve: Improve One Thing Daily
The will to win is not enough. The will to prepare to win is what separates success from mediocrity. This means getting brilliant at the basics and never being bored with the basics. The restaurant business will not get easier. We must get better at it. n
Jim Sullivan is the CEO of Sullivision.com a global consultancy whose clients include KFC, Starbucks, Chipotle, Texas Roadhouse, Domino’s, Chick-fil-A, Disney and Panera. He’s the author of the bestseller “Multiunit Leadership,” and “Fundamentals,” available at Amazon in print, audio, ebook and Spanish versions. You can reach him at jim@sullivision.com and follow him daily on LinkedIn.
Fall 2023 AKFCF Quarterly 25
26 AKFCF Quarterly Fall 2023
What Restaurant Leaders Wish They Knew About Trust Earlier In Their Career By Justin Patton, Founder of the Trust Architect Group
I
n the hustle and bustle of the quick-service restaurant industry, it’s easy to focus on the tangible aspects: staffing, the perfect chicken, Restaurant Operations Compliance Check (ROCC), and well-maintained facilities. However, there’s a secret recipe beyond the 11 herbs and spices, an invisible thread weaving everything together in our KFC Family: trust. In this article, we’ll dive into insights from veteran restaurant leaders. They’ll each share what they wished they had known about trust earlier in their careers, and I’ll expand on each point. So, whether you’re a seasoned restaurant manager or a new team leader, this is an opportunity to explore trust from a fresh perspective. By the end of this, you’ll have a new understanding of trust’s impact and how you can leverage it to enrich your leadership style and your KFC restaurants’ success. Let’s dive in.
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By the end of this, you’ll have a new understanding of trust’s impact and how you can leverage it to enrich your leadership style and your KFC restaurants’ success. Justin Patton
Trust is your superpower Suzanne Egan Bohle, EVP at the Council of State Restaurant Associations, said, “When you have a well-constructed team working together, trust is inherent. Trust is a superpower.” Every superhero has a superpower. Spiderman had agility. Wonder Woman had superhuman strength, and Storm from X-Men could control the weather. At KFC, our superpower is trust. Trust sets us apart as a force to be reckoned with. We won’t always be able to compete with every organization on pay or flexibility. We can, however, compete with them on how inclusive our restaurants are, how committed we are to investing in our people, and how we create spaces where people feel they belong. When you can accept that trust is your superpower, you realize you don’t have to be the smartest person in the room. That’s not where the value is. You stop putting results over people because you realize that when you take care of people, you take care of results. And established trust is what gives us a second chance when we don’t live up to someone’s expectations. Trust is a superpower for every restaurant leader. Trust is your biggest competitive advantage Steven Abigail, brand president at Tasty Restaurant Group, once said, “Trust is the most important currency in today’s marketplace.” Trust is your biggest competitive advantage because it’s the one thing that keeps people coming back again and again. From my early days at McDonald’s to my years working at Yum! Brands, I’ve always heard leaders say the classic line, “Time is money.” Is there some truth to that? Sure, but we do our team members, our guests, and ourselves a disservice when that is our philosophy. The bigger conversation we should have is that “trust is money.” We can all meet time requirements while still eroding trust with others in the process. It’s never worth it. I remember attending the AKFCF Convention in 2022 when I heard Monica Rothgery, KFCC’s former COO, say, “It’s better to be slower and make it right than be fast and wrong.” YES! YES! It’s the connection, not the transaction we create during the experience, that allows us to start to build trust slowly and, in time, repeat customers.
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“You only get one chance to make a first impression, but as a leader, you will have many chances to build up trust, one interaction at a time, that can help change lives forever.” – Tony Buford, division vice president at KBP Brands
Research shows that as trust increases, so do safety, candor, loyalty, engagement, and opportunity. There’s no denying the tangible benefits trust has on money. We’ll see it as the most valuable currency when we buy into the belief that “trust is money” and the most strategic way to create long-term success. Trust is built or lost in every interaction “I have come to realize in the last ten years of my career, that trust matters more than anything else in our business,” said Tony Buford, division vice president at KBP Brands. “Whether trust is given, or earned, it is built or lost in every single interaction that occurs. They all matter … every conversation, every email, every phone call, every meeting, and every visit. You only get one chance to make a first impression, but as a leader, you will have many chances to build up trust, one interaction at a time, that can help change lives forever.” Tony reminds us that trust is not built in just one big gesture like an annual awards celebration, one shoutout a quarter, or a high-five inside the restaurant. Those
things are meaningful and a good start, but trust requires consistency. Our brains are constantly scanning the environment for cues of safety, belonging, and trust. The best restaurant leaders are intentional about providing those cues. They understand that trust is built in the small, everyday moments of how we show up and treat each other. It’s the tone in our emails. It’s the way we celebrate and recognize others during meetings. It’s calling someone up and asking for their insight or opinion. It’s our ability to give someone a task, get out of their way, and let them take the lead. It’s in picking up trash in the parking lot with one of our team members and asking about their family. And it’s even in our ability to give honest, constructive feedback because trust requires you to love people enough to tell the truth. Pat Summitt, legendary University of Tennessee Lady Vols basketball coach, once said, “You can’t pick and choose the days that you feel like being responsible. It’s not something that disappears when you’re tired.” The best leaders are highly intentional about managing the glimpses people get of them and taking responsibility for their energy and the downstream impact it creates. Trust doesn’t get an off day! That doesn’t mean we’ll always get it right, but we must get it right more often than we get it wrong. Our teams are counting on us. Trust must be given and earned Alicia Bylinowski, director of operations at First Watch, is known for saying, “I’ve learned that trust is a two-way street and must be both given out and earned.” Trust must be given and deserved. We don’t have the luxury of only focusing on one of those factors. So many leaders I coach nationwide expect others to earn their trust first. In fact, 68 percent of U.S. employees and leaders say trust must be earned, according to a 2020 Workforce Institute at UKG report. I think that’s generally the philosophy when you’ve been hurt, and someone turned around and used your trust against you. However, you’re not that person anymore, and that mindset holds all leaders back from leading great teams where trust is present. If everyone is standing around the restaurant waiting for others to “earn” their trust first, then no one is giving it. And
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trust can’t even begin to happen when everyone is waiting for someone else to start. Giving trust is vulnerable because you’re not sure what the other person will do with it. However, the best leaders give some trust and then pay attention to what others do with it. That information informs their actions moving forward. Trust is not built in the wishing for, praying for, hoping for, or thinking about. Trust is built in the doing. The deliberate giving and earning of trust in a relationship allows trust to be built over time. There’s a great quote in the movie “Greenbook”: “The world is full of people afraid to make the first move.” Trust others enough to make the first move. Trust yourself enough to know you can handle whatever comes your way. Trust yourself “I wish I had trusted in my own abilities a little more. It would have saved me a lot of sleepless nights,” said AKFCF Past President Keith Cole. Being yourself is your most significant act of trust. I’ve often shared, “There is nothing more important in this world than your belief in yourself. What you believe or don’t believe about yourself becomes the filter for how you show up in the world, how you make decisions, and how you treat yourself and others.” When we lack self-confidence, we often use our teams for our validation, and we either bully them out of insecurity or befriend them to the point that we don’t hold them accountable. Everyone loses when this happens. Developing self-trust happens when we put the need of liking ourselves over the need to be liked by others. It is not being egocentric without any care of what other people think. Confident people do care about others, and they value what others think. They do not, however, wear those thoughts and feedback on their soul as signs of their worthiness. Self-trust is a clear and unwavering commitment to having your own back, not because other people aren’t there for you, but because you understand where your power comes from. Self-trust isn’t about always being right or proving yourself; it’s about having the courage to let yourself be seen, the willingness to be wrong, and the resilience to correct course once you have additional information.
If leaders are committed to developing authentically confident talent, they must help them recognize the value they bring into every space and create opportunities for those individuals to be seen. Our voice is directly connected to our confidence, so we must provide people a safe space to share their thoughts, feelings, and ideas. Trust increases speed “I would say that I wish I had known the speed at which you can accomplish things
when there is trust through all levels of a team,” says Justin Stewart, AKFCF President and COO at Stewart Restaurant Group. “When a team trusts its leader, and when a leader trusts their team, there is nothing it can’t accomplish. When trust is lost, it slows everything down, up to possibly stopping all progress permanently.” Trust is the secret sauce that fuels the speed and success of any team. As an executive leadership coach, I’ve encountered numerous restaurant leaders who were con-
A Lasting Partnership Built On Success. We thank all the KFC franchisees for the many years of supporting our products. KochFoods.com Fall 2023 AKFCF Quarterly 31
critical point. They found that authoritative leadership behaviors, which may create a temporary sense of fear and urgency, are detrimental to psychological safety. Fear can spur immediate action, but it is not a sustainable model for fostering high-performing teams and cultivating a culture of belonging. Tactful communication is the key to fostering safety. It doesn’t water down the truth; it simply removes its sting. By taking responsibility for our delivery, we ensure our message is heard. When we prioritize intensity and personal safety over understanding, progress slows down. In essence, trust is the linchpin that propels a team forward. When team members feel safe and trust their leader, they are empowered to communicate openly, address issues promptly, and believe in each other’s intentions.
Just as an anchor keeps a ship grounded, great leaders stay firmly rooted in their values and commitment to building trust.
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sistently blindsided by team breakdowns. These leaders, frustrated by their team’s failure to communicate early on, often wondered why their team didn’t confide in them sooner. The answer is simple: a lack of trust. Everything slows down without trust, and genuine trust cannot exist without a safety foundation. In 2012, Google embarked on a groundbreaking research initiative called “Project Aristotle.” This extensive, two-year project involved studying more than 180 teams within Google to identify the key factors behind high-performing teams. They discovered that psychological safety, above all else, drove the success of these teams. Fast forward to 2021, and McKinsey & Company’s article on “Psychological Safety and the Critical Role of Leadership Development” further emphasizes this
Trust tests your character “Trust is easy when everything is going well, but how a leader shows up when time is tough is the true measuring stick of trusted leaders,” says Eric Phernambucq, senior director of innovation at Jack in the Box. Elizabeth Gilbert once said, “The most interesting moment of a person’s life is what happens to them when all their certainties go away. Then who do you become?” It’s easy to show up our best when we’re hitting our numbers, when team members are showing up and performing at high levels, and when we feel the franchise values the time and effort we put into our role. However, who do we become the moment the franchise makes a decision with which we disagree? Who do we become when a team member walks into the restaurant for the third time not wearing the proper uniform? And who do we become when our family tells us we treat our work family better than our family? Can we still make intentional choices that lead to trust in those difficult moments? The best leaders are the anchor in difficult moments. They use their presence to earn others’ confidence and trust. They provide stability and support to their team, open communication, and a vision for how we will get out of the storm. Just as an anchor keeps a ship grounded, great leaders stay firmly rooted in their values and commitment to building trust.
Empathy is seeing beyond ourselves to acknowledge someone else’s feelings and why they feel that way. Empathy does not require agreement or endorsement of someone else’s actions and choices. Empathy leads to trust “I wish I had known the value of listening and empathy, and cultivating those skills to drive trust. Both take an intentional focus but make all the difference in establishing trust,” said Kathy Gosser, director of the Yum! Center for Global Franchise Excellence. “It’s not the entire package for trust, but those two skills are fundamental.” To create a culture where people feel they belong, we must show up for people and help them feel less alone. Empathy is the key to making that happen. Empathy is seeing beyond ourselves to acknowledge someone else’s feelings and why they feel that way. Empathy does not require agreement or endorsement of someone else’s actions and choices. It’s meeting them right where they are and letting them know they’re not crazy for feeling how they feel. This builds instant trust in the moment. Imagine a moment when a team member or guest walks into our KFC restaurant, their emotions running high and intensity filling the air. In those crucial moments, it is paramount that we set aside our own opinions and advice. This is the time for empathy, a time when we must put into practice the guiding principle of “empathy before information.” By offering genuine empathy, we make individuals feel seen and acknowledged and help them find solace and regain emotional balance. With empathy as part of our secret recipe, we can create an extraordinary KFC environment where every team member and guest feels valued, heard, and embraced. Now that’s some finger-licking goodness! Final thought Trust is not a soft skill but a concrete way of communicating that drives tangible results and propels businesses toward long-term success. As restaurant leaders, you are trust architects who build communities. Embrace the impact you make daily, and let trust be our promise to each other, our brand, and our guests. With trust as our foundation, we can create a restaurant experience that keeps customers coming back for more. Remember, KFC is not just a restaurant business, and you are more than restaurant leaders — you are the architects of trust, making a meaningful and purposeful impact in the lives of others. Never forget the difference you make. n
Tuition 100% covered for KFC restaurant employees at WGU 60+ degrees to choose from Flexible online courses that can be completed anytime, anywhere Eligible to apply starting day one on the job
kfcfoundation.org/wgu *Franchisee must participate in the KFC Foundation’s Annual Donation Program for employees to be eligible ©2023 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.
Fall 2023 AKFCF Quarterly 33
y l i m a F C F K
— Get Ready to Reach!
34 AKFCF Quarterly Fall 2023
By Kelly Rodenberg
A
t the 2024 Annual Convention, you will be challenged to think bigger and bolder about the boundless potential of your restaurants and the future of the KFC brand. When people say something is impossible, what they really mean is, “I can’t imagine how it could be possible.” But with more knowledge and experience, they’d begin to realize that anything is possible; it just takes a change in mindset. Because “impossible” is what we get when we haven’t trained our minds and our hearts to see past the systems that currently exist to ones that don’t yet exist. This year, we are challenging all of you to reach impossible. To change your mind set about reaching $10 billion in sales, to provide the best customer experience to all guests, to build a team that performs second to none, and to be the number-one operating chicken restaurant in the world. If we can find the patience to see the world for what it is — dynamic, flexible, and loaded with untapped potential — and if we can accept the fact that change is an inevitable and brilliant part of life, then we can partake in the thrill of progression and help shape a brand in which the impossible becomes possible.
And this year, the AKFCF Convention is reaching impossible. We have a new production company, new AKFCF Convention team, new KFCC LT members with new thought processes and mindsets to make this a best-in-class show. We are elevating the experience and energy every day in every ballroom and in every event. AKFCF’s Annual Convention is the leading forum for the KFC Family to discuss their challenges and successes. We continue to promote best practices for restaurant management and delivery, and our highly anticipated event in Las Vegas promises engaging and compelling content, networking opportunities, inspiring keynote presentations, and peer-to-peer learning. Get ready to experience AKFCF’s and Las Vegas’ energy and captivating inspirations. Whether you come a little early, stay a little late, or carve out some time in between the Convention, discover all that this vibrant Convention and city has to offer. Your adventure begins when you register. Whether this is your first or fifteenth visit to Las Vegas, get ready for some new thrills. AKFCF is excited to be back in Las Vegas for the 2024 Annual Convention, and we’re ready to offer you the adventure of a lifetime.
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(subject to change)
2024 Schedule at-a Glance
Monday, March 18 6:30 a.m. – 3:00 p.m. 3:00 p.m. – 8:00 p.m. 4:00 p.m. – 6:00 p.m.
Golf – KFC Foundation Exhibitor Registration & Move- In Regional Secretaries Meeting
Tuesday, March 19 11:00 a.m. – 6:00 p.m. 12:30 p.m. – 4:30 p.m.
5:00 p.m. – 8:00 p.m.
Attendee Registration Workshops (3) • Two KFCC workshops for 75 minutes each with 15 breaks • One AKFCF Session with Scott Greenberg – 60 minutes Welcome Reception/Trade Show 80s theme/DJ/Glow Party
Wednesday, March 20 8:00 a.m. – 9:00 a a.m. 9:00 a.m. – 10:15 a.m. 10:15 a.m. – 10:30 a.m. 10:30 a.m. – 11:00 a.m. 11:00 a.m. – 12:00 p.m. 12:15 p.m. – 2:00 p.m.
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Networking Breakfast AKFCF Opening/Ben Nemtin Opening Video/Justin Keynote Break Sabir Sami – KFC CEO Keynote Ken Muench – Yum! CMO Keynote Lunch
2:15 p.m. – 3:15 p.m. 3:15 p.m. – 3:45 p.m. 5:30 p.m. – 8:30 p.m.
Scott Greenberg Keynote NCAC/RSCS Updates Vegas Goes Country/Trade Show
Thursday, March 21 7:30 a.m. – 8:30 a.m. 8:30 a.m. – 10:30 a.m. 10:30 a.m. – 10:45 a.m. 10:45 a.m. – 12:30 p.m. 12:30 p.m. – 2:00 p.m. 2:15 p.m. – 5:15 p.m. 6:30 p.m. – 8:30 p.m. 8:30 p.m. – 10:15 p.m. 10:15 p.m. – 12:00 a.m.
Grab and Go Breakfast KFCC Presentations Break KFCC Presentations Lunch in Trade Show Regional Meetings Awards Dinner – Black Tie Entertainment/Foundation Auction Dueling Piano Speakeasy
Friday, March 22 8:00 a.m. – 9:00 a.m. 9:00 a.m. – 10:15 a.m. 10:15 am – 11:15 am 11:30 am – 1:00 pm 1:30 pm – 3:00 pm
Grab and Go Breakfast Greg Creed keynote GAC Update Legal Update Board Meeting
MONDAY, MARCH 18
Photo courtesy of invitedclubs.com
COLONEL CLASSIC GOLF SCRAMBLE Bear’s Best Las Vegas Are you ready for the 3rd Annual Colonel Classic Golf Scramble? Join the KFC Foundation on Monday for the 3rd Annual Colonel Classic Golf Scramble held at the incredible Bear’s Best Las Vegas. With Bear’s Best Las Vegas, Jack Nicklaus selected 18 holes from his 270 course designs worldwide and put them into one truly extraordinary round of golf. The Colonel Classic Golf Scramble benefits your KFC Foundation, which has provided $31 million to support, empower, and serve joy to more than 9,300 KFC restaurant employees and our communities. Only 144 people can play this top-rated course during the 2024 Colonel Classic. Secure your spot now — go to kfcfoundation.org/golf or scan the QR code. Good news: There are no Convention workshops on Monday afternoon, which means you get to enjoy the scramble to the fullest!
Fall 2023 AKFCF Quarterly 37
TUESDAY, MARCH 19
WORKSHOPS (Each workshop will be presented once) Join us for three workshops focused on team members and customer experience. We’ll explore how to deliver an exceptional, service-focused guest experience and how great guest service is made possible when our Team Members are welcomed and supported in a people-first, inclusive culture. GROWING SALES THROUGH EXCEPTIONAL GUEST SATISFACTION (SHAWN BRADY AND BILL FORD) The fastest way to grow your restaurant’s same-store sales is by increasing the frequency of guest visits. In this workshop, we will share proven shift planning tools to help each shift run smoothly and ensure guest and Team Member satisfaction. We will discuss our guests’ expectations and share ways to engage our team members in delivering exceptional “come back” service. We will explore proven guest loyalty practices that will correct mistakes we make when serving our guests and create pride within our Team Members and loyalty from our guests. 1:1S THAT COUNT: MYPLAN FOR TEAM MEMBER ENGAGEMENT & RETENTION (KFCC P&C) Our team members tell us, “I don’t feel like I have a career with KFC” and that “frequent 1:1s with my RGM would keep me engaged, and I’d stay longer.” We know that if we can retain team members for at least 90 days, they will likely stay with us for a year or longer. We will introduce a new tool that will tackle both of those issues. MyPlan is a fun and interactive online program
WELCOME RECEPTION IN THE TRADE SHOW We’re going retro on opening night in the exhibit hall crib! Tuesday night’s Trade Show will be a Totally Legit 80s themed Glow Party! This tubular event will feature a FLY DJ who will spin a killer playlist, designated “black light” moments, dope glow décor and games, bodacious KFC Foundation t-shirts that will luminate, righteous prize drawings, and more! More than 175 vendors will be in attendance with exhibit spaces that are redesigned to be more engaging and interactive. And of course, plenty of rad food and beverages will be on hand. The Trade Show is the optimal place to conduct business with key suppliers, learn about new products and services to enhance your operation, network with your peers, and discover ways to run your business more profitably. Break out your 80’s apparel — parachute pants, acid wash jeans, bomber jackets, Ray Bans, leg warmers, and neon headbands to keep that Aquanet hair or mullet intact. You’ll be doing the Moonwalk down the aisles!
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that helps team members set short- and long-term goals (inside and outside KFC). It is an opportunity for managers to better connect with their team members, understand what motivates them through 1:1s, and assist RGMs and team members on what they can do at work to achieve their goals. STOP THE SHIFT SHOW: TURN YOUR STRUGGLING HOURLY WORKERS INTO A TOP-PERFORMING TEAM (SCOTT GREENBERG) Hourly workers are different than salary workers and managing them can be tough. So can finding and keeping them. And while bosses have always complained about “kids these days,” today’s employees seem more mysterious than ever. But some workplaces have cracked the code. They’ve transformed their hourly workforce into a powerhouse of superstar employees. They enjoy the highest team performance without relying on the highest wages. This presentation will explain how these great managers think and what they do to recruit the best talent, retain them, and lead them toward greatness – and how you can, too.
WEDNESDAY, MARCH 20
OPENING KEYNOTE SPEAKER BEN NEMTIN Ben Nemtin is the #1 New York Times bestselling author of “What Do You Want to Do Before You Die?” and a star of MTV’s highest rated show ever on iTunes and Amazon called “The Buried Life.” As the co-founder of The Buried Life movement, Ben’s message of radical possibility has been featured on The Today Show, The Oprah Winfrey Show, CNN, FOX, and NBC News. An acclaimed keynote speaker, Ben has headlined business conferences and Fortune 100 leadership teams around the world. In his first year of university, Ben was unexpectedly hit with a depression that forced him to drop out. To feel more alive, he created the world’s greatest bucket list with his three best friends. They borrowed an old RV and crisscrossed North America, achieving the unthinkable. And most importantly, every time they accomplished a dream, they helped a stranger cross something off their bucket list. From playing basketball with President Obama to having a beer with Prince Harry,
from reuniting a father and son after 17 years to surprising a young girl with a much-needed bionic arm — Ben’s bucket list quest has inspired millions to thrive personally and professionally. In this personal keynote, Ben weaves the remarkable story of how The Buried Life grew from 100 impossible dreams into a global movement and connects his lessons to the fabric of our daily lives. GUEST SPEAKER – SABIR SAMI, KFC CHIEF EXECUTIVE OFFICER Sabir Sami has global responsibility for driving the brand strategy and performance of KFC. He previously served in a dual role as KFC Division Chief Operating Officer and Managing Director of KFC Asia, a role in which he led the global operations team and drove the KFC global operations agenda while overseeing Thailand, India, Asia Central, and Greater Asia. Sabir will speak on connecting the brand’s messages and vision for moving forward in 2024.
Ben Nemtin
Sabir Sami
Proud Packaging Partner for Over 25 Years!
Fall 2023 AKFCF Quarterly 39
WEDNESDAY, MARCH 20
GUEST SPEAKER – KEN MUENCH, YUM! CHIEF MARKETING OFFICER Ken Muench is the CMO for Yum! Brands and co-founder of Collider Lab. In his role at Yum!, Ken acts as a consultant to the brands and master aggregator of marketing discoveries for the entire company, and he creates repeatable models to implement in Yum! Brand markets around the world. He has 25 years of marketing and strategy experience. Ken will share how Yum! is taking marketing trends and insights to the next level. LUNCH AND LEARN — NEW THIS YEAR! Get up to speed on new technologies, best practices, and more during fast-paced, 20-minute presentations by suppliers and topic experts. With several sessions on various small stages, you’ll have numerous opportunities to expand your knowledge base. The Supplier Side Stages are designed to delve into hot topics facing the industry and offer inspiring presentations to expand your thinking and advance your business. Food stations will be set up throughout the ballroom for you to grab lunch quickly and take it into the next session. AFTERNOON KEYNOTE SPEAKER – SCOTT GREENBERG The Resilient Leader: How to Bounce, Change, & Thrive When Faced with Adversity Meet Scott Greenberg: one-part business game-changer, one-part motivational leader. Fueled with more than 10 years’ experience as a multi-unit, award-winning franchise owner, Scott has written two books on what it takes to transform businesses from average to extraordinary. We’re often told during tough times to “make lemonade.” But sometimes there’s value in the lemon itself. Scott learned this firsthand. While a graduate film student at NYU, he was diagnosed with cancer. Inspired by his grandmother, a “Schindler’s List” Holocaust survivor, he beat the disease and went on to run a marathon; perform stand-up comedy; run multiple, award-winning franchises; write books; and beat cancer again. These accomplishments weren’t despite his challenges — they were a result of them. Scott will teach us the three factors that determine the outcome in any business situation. He’ll outline the difference between problem-solving and resiliency and share tools for living and working with more strength and courage. Because ultimately, it’s less about the climb, and more about the bounce.
Ken Muench
Scott Greenberg
VEGAS GOES COUNTRY TRADE SHOW The Vegas lights have nothing on this Country night! The excitement continues in the exhibit hall with another themed party — Vegas Goes Country! Hear up-and-coming country artists perform live on the Pepsi Stage, participate in cowboy themed attractions, prize drawings, and more! Come join us in the Trade Show for more time with our valued vendor partners, themed cocktails, and great food. Don’t forget to pack your denim, flannel, boots, hats, belts, and jewelry to complete the look and feel of this party.
40 AKFCF Quarterly Fall 2023
THURSDAY, MARCH 21
KFCC PRESENTATIONS Join KFCC President Tarun Lal and the KFC leadership team as they provide an update on brand results and more details on how we will continue to modernize KFC and accelerate our vision to become a $10-billion brand. The team will continue to offer perspectives on industry trends, challenges, and opportunities, with a forward look at what is going to drive brand strategy and execution into the future. TRADE SHOW LUNCH Grab a delicious lunch and then hit the booths! A visit to the Trade Show provides your best opportunity to find the products, partners, and solutions that will help you solve today’s challenges and evolve your business. From on-trend food and beverage options to equipment and sanitation products to streamline operations, you’ll find a full range of products across numerous categories from leading suppliers at the Trade Show. Plus, you will have the opportunity to thank and talk with your long-time KFC suppliers who attend to show their support.
Tarun Lal
AWARDS DINNER AND CELEBRATION Join AKFCF for this flagship event as we honor exceptional individuals for their significant contributions to AKFCF and KFC. This premier recognition event will take you back to the rat pack days of vintage Vegas, from the red-carpet reception to the awards show and after-party is the ultimate place to see and be seen. Celebrating 50 years, the AKFCF will honor those who have made this Association what it is today. Put on your finest attire to enjoy an elegant sit-down meal with delicious food and drink, and unique entertainment throughout the night. We encourage black tie, but any formal cocktail attire is acceptable. continued on next page
IAQ
With Lennox’ IAQ System, you can enjoy cleaner, fresher, and healthier indoor air, creating a more pleasant and productive environment for all occupants!
Building Better Air Fall 2023 AKFCF Quarterly 41
After the dinner celebration, the room will transform into a Vegas night club when Tyler Hubbard takes the stage. Twenty-one No.1 singles on country radio, countless awards, and sold-out tours,
Tyler Hubbard
Tyler Hubbard has already had a remarkable career as a songwriter and as one half of multi-platinum duo Florida Georgia Line. Hubbard has now stepped out on his own and Billboard claims “Hubbard’s solo career keeps building,” with the release of his self-titled debut solo album. The album, released earlier this year, features Hubbard’s hit debut solo single “5 Foot 9,” which hit No. 1 at radio, was certified Platinum by the RIAA, and has 550 million global streams. During the celebration, you will be able to help raise money for the KFC Foundation by bidding on live auction items. TYLER HUBBARD AFTER HOURS PARTY This is a limited ticket event — so get yours early. Shift from the sounds of a country night club to a speakeasy with dueling pianos, open bar, and late-night snacks to calm your food cravings. And just maybe, Tyler Hubbard will make time for one last song!
Lemon & Double Chocolate Chip Mini Bundt & 16oz Bundt Available
Great for a MINI MEAL DEAL! Call Andrew Boyer 479.721.3133 cell aboyer@cafevalley.com www.cafevalley.com
42 AKFCF Quarterly Fall 2023
FRIDAY, MARCH 22
CLOSING KEYNOTE SPEAKER GREG CREED, CHAIRMAN EMERITUS, COLLIDER, AND RETIRED CEO, YUM! BRANDS, INC.
Greg Creed
Greg Creed was the CEO of Yum! from January 2015 to December 2019 and served as a Director of the Board from November 2014 to May 2020. Greg retired after a successful 25-year career with the company. He has more than 40 years of extensive global experience in marketing and operations with leading packaged goods and restaurant brands. Since retiring from Yum!, he has started a small unconsulting company called Creed UnCo focused on helping companies with brand building, franchising, culture, and leadership. Greg will share his unique perspectives on leadership and culture, and how to obtain the best results in your restaurants. AKFCF GOVERNMENT AFFAIRS COMMITTEE UPDATE Join us for the Government Affairs Committee update to hear from Dan Gans, Principal & Founder at Polaris Consulting in Washington, D.C. Dan will be discussing the current political landscape, including key policy initiatives, the upcoming 2024 election, and potential impacts on franchisees. The GAC and our partners at Polaris tirelessly advocate for legislative outcomes in the interest of AKFCF membership. This will be an important and timely update you won’t want to miss.
FRIDAY, MARCH 22
ANNUAL LEGAL UPDATE – RON GARDNER *Red Badges Only Through a tumultuous year of transition and big swings in sales performance, lots of things have been achieved and are in progress! Come listen to Ron tell you about the intricacies of where we are on our journey to bring technology into your restaurants at an affordable price, how your franchisee leaders are working to make remodels and new builds more affordable, and how the legal landscape is changing thanks to changes in governmental regulations surrounding franchising. This and a whole lot more await you in the highly anticipated Annual Legal Update.
• Are you considering selling? • Do you want to expand your holdings?
HOTEL INFORMATION: ARIA Resort and Casino 3730 S Las Vegas Blvd. Las Vegas, NV 89158 www.aria.mgmresorts.com *AKFCF group room rates vary during the week. Starting at $139 - $289 per night, plus a $40 resort fee and 13.38% tax rate. TO REGISTER FOR THE CONVENTION AND ITS EVENTS, GO TO WWW.AKFCF. COM.
Early Bird Rate — $249 Register by November 30th
Resort Fee includes Property-wide high speed wireless internet access, unlimited local and toll-free calls, airline boarding pass printing, and fitness center access. To Reserve Online: https://book.passkey.com/go/ SKFC0324AR
Regular Rate — $399 Register by February 23rd
The deadline for hotel reservations at the group rate is Feb. 24, 2024, at 5:00 p.m. pacific time.
2024 On-Site Rate — $499
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Fall 2023 AKFCF Quarterly 43
KFC FOUNDATION
$1 MILLION IN KENTUCKY FRIED WISHES CAME TRUE — THANKS TO YOU! By Liz Gulick, KFC Foundation Communication Manager
I
n June, we asked you and your restaurant teams to refer local non-profits to apply for a $10,000 grant from the KFC Foundation. Originally, we planned to award 50 non-profits with a Kentucky Fried Wishes grant. After receiving more than 1,000 grant applications (10x more than last year!) and as your teams continued their incredible fundraising efforts through Round Up, we doubled the number of Kentucky Fried Wishes granted, totaling $1 million awarded to 100 community-based non-profits! Thirty-five winning non-profits were referred directly by a KFC restaurant, and more than 80 non-profits were surprised and celebrated by a local KFC team. Serving joy, at its finest! The Kentucky Fried Wishes program funds tangible development projects for non-profits. The organizations must apply during the application period to be considered. The intention is that these are local, grassroots non-profits that could do a LOT of good with a $10,000 grant. Since 2021, the KFC Foundation’s Kentucky Fried Wishes program has invested more than $1.6 million to support more than 160 local non-profit organizations. In 2024, the KFC Foundation is planning to
make Kentucky Fried Wishes come true throughout the year. Stay tuned for more information, and start thinking about which local non-profits you and your teams want to refer! This year’s grant recipients span more than 35 states and support a variety of causes and communities, including: Anson County Partnership for Children Wadesboro, NC Referred and celebrated by: Scottish Food Systems | Team J970044 What They Do: Make the county a better place for local youth by raising the quality of early care and education, supporting families, advancing child health, and expanding literacy. KFC Connection: Several people from Team J970044 have volunteered their time helping Anson County Partnership for Children with events and programming. Their Wish: The grant will help the organization purchase and stock a book vending machine for one year in the waiting room of the local health department. Girl Scouts of North East Ohio (GSNEO) Macedonia, OH Referred and celebrated by: Travel Centers of America | Team I881001 What They Do: Build courage, confidence, and character in young girls. KFC Connection: KFC Franchisee and previous Girl Scout, Sandra Rapp, serves on the GSNEO STEM Advisory and STEM Center Capital Campaign Committees and referred the organization to the Kentucky Fried Wishes program.
Anson County Partnership for Children 44 AKFCF Quarterly Fall 2023
Since 2021, the KFC Foundation’s Kentucky Fried Wishes program has invested more than $1.6 million to support more than 160 local non-profit organizations. Their Wish: The grant will help the non-profit build an ADA-accessible StarLab Dome to provide STEM-oriented educational experiences to girls and boys across its 18-county GSNEO region. Peer 1 on 1 Cypress, CA Referred and celebrated by: Kentucky Fried Chicken of Polly’s | Team K710003 What They Do: Create a supportive and inclusive community that empowers youth and teens on the autism spectrum through personalized, one-on-one interactions to enhance their social and communication skills.
Girl Scouts of North East Ohio
KFC Connection: Team K710003 generously offers meals to the children to support Peer 1 on 1’s activities, and the RGM Elvira introduced the organization to the grant program. Their Wish: The grant will provide funding for the organization’s “quiet space,” a construction project that will create a stress-relieving environment, aiding in faster relaxation and increased focus and productivity. Runway to Hope Orlando, FL Referred and celebrated by: KFCC | Team Y300020
Peer 1 on 1
What They Do: Provide direct support and aid to families fighting pediatric cancer. KFC Connection: Jessica Phillips, KFCC Field People & Culture Business Partner, referred the non-profit to the Kentucky Fried Wishes program because Runway to Hope provided Phillips’ family with direct emergency financial assistance in 2018 & 2019. Their Wish: The grant will help fund toiletry kits prepared for pediatric cancer families to make patients as comfortable as possible while receiving treatment. continued on next page
Runway to Hope
Fall 2023 AKFCF Quarterly 45
Congratulations to the 100 Kentucky Fried Wishes recipients! ALABAMA Birmingham Education Foundation Birmingham ALASKA Catholic Social Services - Anchorage Family Promise Mat-Su - Wasilla ARIZONA Angel Heart Pajama Project - Tucson Arizona Autism United - Phoenix Donkey Dreams - Littlefield CALIFORNIA ABC Hopes - Corona Life Learning Academy - San Francisco LMWS, Inc. (dba: Pacific Lifeline) - Upland Peer 1 on 1 - Cypress Riverside Area Rape Crisis Center - Riverside Special Needs Network, Inc. - Los Angeles StreetCode Academy - East Palo Alto COLORADO Housing Resources of Western Colorado Grand Junction StableStrides - Elbert CONNECTICUT Connecticut Institute for the Blind (dba: Oak Hill) - Hartford FLORIDA Arc Broward - Plantation Friends of Manatee Lagoon - West Palm Beach Grand Avenue Economic Community Development Corp - Orlando New Life Mission - Melbourne Resilient Retreat, Inc. - Sarasota Runway to Hope - Orlando Save Our Seabirds, Inc. - Sarasota Seniors on a Mission, Inc. - Jacksonville St. Francis Society - Tampa The Arc of Volusia County - Daytona Beach The McKenzie Project, Inc. - Miami The NASCAR Foundation - Daytona Beach GEORGIA Called to Care, Inc. - Tifton Southwest Christian Care - Union City IDAHO Bingham Health Care Foundation - Blackfoot RISE, Inc. - Boise Sleep in Heavenly Peace - Twin Falls ILLINOIS United Way of Central Illinois - Springfield INDIANA Genesis House - Corydon Indiana Canine Assistant Network Inc. Zionsville Southeastern Church of Christ - Indianapolis
46 AKFCF Quarterly Fall 2023
KENTUCKY Hardin County Schools - Elizabethtown Hazel Green Elementary School - East Bernstadt Inspire 1 - Louisville Louisville Ballet - Louisville Miniature Buddies, Inc. - Walton Pennyroyal Mental Health/Trace Industries Hopkinsville LOUISIANA Lowlander Center - Many
OREGON Chintimini Wildlife Center - Corvallis Circle of Friends - Eugene Evans Creek Retreat - Stayton PENNSYLVANIA Community Action Lehigh Valley Bethlehem Crime Victim Center of Erie County Inc. - Erie Joyful Readers - Philadelphia Pittsburgh Zoo - Pittsburgh The Salvation Army - Lock Haven WPSU - Penn State - University Park
MAINE Maine Discovery Museum - Bangor
RHODE ISLAND Jonnycake Center of Westerly - Westerly
MASSACHUSETTS Boys and Girls Club of Greater New Bedford - New Bedford
SOUTH CAROLINA Dickerson Children’s Advocacy Center Lexington Dorchester Paws - Summerville North Myrtle Beach Rescue - North Myrtle Beach Project Cool Breeze - Charleston The Children’s Museum of the Upstate Greenville Walt’s Waltz - Greenville
MICHIGAN Flint STRIVE - Flint Life Remodeled - Detroit Pegasus Springs TRC - National City SLD Read - Grand Rapids Yad Ezra - Berkley MISSISSIPPI Mississippians Against Human Trafficking Jackson Stewpot Community Services, Inc. - Jackson We Will Go - Jackson MONTANA Wild Souls Wildlife Rescue and Rehabilitation - Blue Springs NEVADA CARE Chest - Las Vegas NEW YORK Adaptive Sports Foundation - Windham Catholic Charities of Herkimer Domestic Violence Program of Herkimer County - Ilion Girls Inc. of New York City - New York Latina Sisters Support - Commack Massena Fire Department - Massena NORTH CAROLINA Anson County Partnership for Children Wadesboro Irene Wortham Center - Asheville Simply Girls, Inc. - Dunn Unbroken Spirit - Arden NORTH DAKOTA Abused Adult Resource Center - Bismarck OHIO Family Violence Prevention Center - Xenia Girl Scouts of North East Ohio - Macedonia Lutheran Community Services Bellefontaine RTC Services - Bellefontaine
SOUTH DAKOTA Children’s Care Hospital & School dba LifeScape - Sioux Falls TENNESSEE Boys & Girls Clubs of the Tennessee Valley Knoxville KELCURT Foundation - Soddy-Daisy Samaritan House Family Ministries of Carson-Newman - Jefferson City TEXAS Children’s Museum of Brownsville Brownsville Mesita PTA - El Paso UTAH The Christmas Box International - Salt Lake City VIRGINIA Beyond Boundaries - Richmond La Cocina VA DBA Kitchen of Purpose Arlington The Heart Leaf Center - Fairfax VERMONT Bennington County Coalition for the Homeless - Bennington WEST VIRGINIA Jeremiah Tree Foundation - Ona Youth Services System, Inc. - Wheeling WISCONSIN The Milwaukee LGBT Community Center Milwaukee
LEADERSHIP DEVELOPMENT COMMITTEE
LEADERSHIP DEVELOPMENT LEARNING MODULES By Keith Cole
A
s chair of the Leadership Development Committee this year, I have made it a priority to continue to develop our regional leaders, as well as incoming national leaders. After all, our attorney, Ron Gardner, is always reminding us “the regions are the strength of the AKFCF.” My goal is to present six Leadership Development Learning Modules until I hand off the committee to current AKFCF President, Justin Stewart. Thus far, we have presented “The History of the AKFCF” by Ron Gardner on May 2, 2023. The second module was presented on July 6, 2023, by Kevin Schlutz, titled “The Roles of the Executive Committee and the Squad Committee.” The latest module was presented again by Ron Gardner, “The NCAC” on September 13. The change that was made on the latest module is, we included not just the regional presidents but the regional first VP’s. Another example of the AKFCF supporting the regions in developing great leaders of today and tomorrow. I have sat through Ron’s presentation of “The History of the AKFCF” at least three times, maybe four. Each time, I find myself picking out a fact I was either unaware of, or more than likely, had forgotten. These modules not only are great for new leaders but are a fantastic refresher for someone who already is involved in leadership on the national level. I have received nothing but tremendously positive feedback on these learning modules. The positive feedback serves as more motivation to accomplish something the committee has yet to accomplish, six modules presented in one year. So, with the help of some key people in our system, I hope to have presented “The RSCS” in November, “The 76-5P contract” in January of 2024, and “Government Affairs” in March of next year. The other responsibility of the Leadership Committee is assisting in the development of incoming EC members. We are committed to the mentorship program. This is challenging due to
the different personalities and responsibilities of volunteers, both the mentors and the mentees. But it is such an important part of growth for any leader to have that someone to turn to with questions or to share experiences as you move through your new position.
The positive feedback serves as more motivation to accomplish something the committee has yet to accomplish, six modules presented in one year.
We assign a mentor to the incoming shadow of the AKFCF and the 2nd VP. Again, in a perfect world, this would be a flawless process but instead it is the one area we really do struggle in. My hope is, if we stay committed to the mentorship program, it will become easier in time. Until that happens, all we can do is continue to encourage mentors and mentees to schedule regular communications with each other to develop that relationship. The program is there, we just need to use it. n
Fall 2023 AKFCF Quarterly 47
RSCS MEMBER PROGRAMS
PICTURE YOUR SAVINGS WITH RSCS MEMBER PROGRAMS & EMPLOYEE PERKS By Tara Morrison
O
ur goal at Restaurant Supply Chain Solutions is to provide a competitive advantage to our members. Through RSCS Member Programs, we offer discounts on products and services used to run your business, and we don’t stop at waste & recycling, pest control, and CO2 services. We have new programs with Armor Security and Paycor Payroll & HR Services, as well as renegotiated terms and pricing with Restaurant Technologies for your oil management needs. Member Programs Spotlight: Paycor Paycor builds HR & Payroll software for leaders. Their platform modernizes every aspect of people management, from recruiting and onboarding to career development and retention. For more than 30 years, they have partnered with business leaders, so they know what you need: a unified HR platform, easy integration with third-party apps, powerful analytics, and custom technology and support for specific industry needs. That’s why we trust Paycor to pay nearly 40,000 of our members’ employees across 2,000 locations. RSCS perks for partnering with Paycor • Special discounted pricing, up to 50 percent off list price on Paycor product bundles • Top-tier implementation experience with extended support and training • Dedicated brand manager with RSCS and Yum! Brands experience. How can Paycor help your franchise? To help drive efficiencies, cost savings, and value through your franchise, they deliver an integrated HR & Payroll platform customized to your needs, including: • Compliant Payroll, ACA, and Taxes • On-Demand Pay / Paycards • Easy Employee Recruiting and Onboarding • HR & Benefits Administration • A Robust, User-Friendly Mobile App • Learning Management, Surveys, Expense Management • Talent & Compensation Management • Time & Attendance, Scheduling, and Accrual Calculations • Reporting & Analytics • Tax Credits.
48 AKFCF Quarterly Fall 2023
Paycor Testimonial “We have been very pleased with our move to Paycor. The solution has allowed our management group access to the solution for analysis of key performance indicators such as turnover metrics. Paycor’s solution is extremely easy and intuitive to use, and we have reduced the amount of data entry significantly from our stores. This reduction allows our managers to focus more on the floor and serving the customers.” –Erskine White, chief people officer, Fulenwider Enterprises To learn more about the benefits of partnering with Paycor, call Chris Bradford at 248.561.7150, or email at cbradford@paycor.com. Visit memberprograms.rscs.com for more information, or to view Paycor’s personalized demo. In addition to Paycor, we have renegotiated our rates with UPS, saving you up to 80 percent on NDA letters and 25 percent on ground shipping, so double-check to be sure your account is linked to our RSCS rates by emailing us at memberprograms@rscs.com. Other Member Programs include: • Cleaning services with Cintas & UniFirst • Energy management with Choice Energy • Security systems with Armor Security • Oil management with Restaurant Technologies • In-store music with Mood Media • Slip-resistant shoe payroll deduction programs: - Shoes for Crews - Skechers - SR Max - Careismatic
Be sure to check out our new website at memberprograms.rscs.com to learn how you can save THOUSANDS on services for your restaurants. You can access our complete list of programs at memberprograms.rscs.com. Utilizing our Member Programs Directory, you will find comprehensive details about each program we offer, including available discounts and contact information. This ensures that you can take advantage of the discounted rates provided by RSCS. We recommend consulting your designated account manager (listed on our Vendor Contacts page) to ensure you receive the most favorable rates through RSCS. Employee Perks: Save on vehicles, electronics, vacations, and more! To help with retention, we proudly offer our KFC Employee Perks program through Abenity. Team members can save on a wide range of products and services from popular retailers, rental cars, movie tickets, oil changes, hotel rooms, theme parks, electronics, mortgage services, and so much more! Visit memberprograms.rscs.com > Employee Perks to download our latest flyers. n
YOU CAN
DISCOUNTS ON
SAVE
Cellphone plans, electronics & everyday essentials
with KFC EMPLOYEE PERKS Find weekly coupons & Win exclusive giveaways!
SCAN & SAVE today!
STEPS STEPS TO TO SAVINGS SAVINGS
11 Scan the QR code 22 Create an account Browse thousands of 33 discounts & coupons! rscs.hrdiscounts.com/GO
A Yum! Brands Co-Op
$1,856 Estimated annual savings per store 1
Weekly Service Fees
STORE
$ -2002
10
STORES
$ -20,020
New lower weekly fees and shorter renewal terms! No capital investment Lower insurance premiums (up to $1100/yr/store) Remote oil monitoring ensures delivery before you run too low Safer, easier work environment (no heavy lifting of JIBs) Cleaner, more efficient kitchens More sustainable, less waste (reduced waste pickups) Improved food quality and consistency Web-based oil management tools & reporting
Used Cooking Oil Credit **
$ 2,415 $ 1,443
$ 24,150 $ 14,430
Total estimated savings per year
$ 1,856
$ 18,560
Fresh Oil Savings Yr. *
* Due to packaging and delivery method, bulk delivered oil is less expensive. Estimates based on forecasted 2023 forecasted oil pricing. ** Used Cooking Oil Credit estimates are based on the Q2 2022 actual credits. Estimates provided are based on an average fresh oil usage of 387 lbs/wk and UCO of 85 lbs/wk.
Fall 2023 AKFCF Quarterly 49
REGIONAL SHORT
SOUTHWEST UPDATE: CAN WE SIMPLIFY? By Shane Lovato
I
n today’s rapidly evolving business landscape, effective communication is pivotal for the success of any organization. This holds true for franchises operating in the Southwest region, where maintaining a seamless and efficient connection with
Artificial Intelligence (AI) has emerged as a game-changer in enhancing communication between all franchisees, offering innovative tools and solutions that can revolutionize the way information is shared and relationships are nurtured.
50 AKFCF Quarterly Fall 2023
franchisees can lead to increased collaboration, improved performance, and ultimately, greater success. Artificial Intelligence (AI) has emerged as a game-changer in enhancing communication between all franchisees, offering innovative tools and solutions that can revolutionize the way information is shared and relationships are nurtured. In the dynamic landscape of franchising, effective communication stands as a linchpin for success, especially in the Southwest region. Harnessing the power of AI can revolutionize how we connect with our franchisees. AI streamlines communication channels by automating message delivery and real-time updates, ensuring that critical information reaches franchisees promptly and uniformly. This level of automation not only saves time but also guarantees consistent dissemination of operational changes, marketing strategies, and policy updates. AI’s personalized engagement is another cornerstone for improved communication. Machine learning algorithms analyze franchisee preferences and historical interactions, enabling tailored messaging that provides relevant content and support. Predictive insights driven by AI provide franchisees with data-driven foresight, helping them address potential issues before they escalate, ensuring smoother operations. Additionally, AI-powered virtual assistants and chatbots offer round-the-clock support, addressing queries, offering operational guidance, and bridging language barriers in the culturally diverse Southwest region. We are currently using AI to write articles such as this. Just one way we are testing AI to see how we can leverage its ability to make our work easier. n
REGIONAL SHORT
GREATER MIDWEST UPDATE: MANAGING A LARGER REGION By Kevin Schlutz
T
he Board of the Greater Midwest region had their summer board call via Zoom on August 9 with 18 members on the call. President Nanette Walker welcomed everyone to the call and congratulated Jim McKenzie on being elected vice chair of the NCAC. AKFCF President Justin Stewart gave an update on the KFC Foundation. Due to the success of the Round Up program, they are doing 100-$10,000 Kentucky Fried Wishes grants this year. I informed the board that 97 percent of the restaurants in the region were members this year, and we are down to 77 operators in the region. I suggested that for 2024 dues that we just charge the $175 per operator that we did for 2023. That motion was passed unanimously. Further, I proposed that we continue to give a rebate for each organization that attends the Super Regional as an incentive. This helps cover some of their expenses. That motion also passed unanimously. This will be the first year that the Super Regional includes five of the six domestic regions; registration has been strong. Working with the Southeast region has been wonderful, and the new, larger meeting should go seamlessly. So far, the Greater Midwest is showing 54 attendees, but with all the multi-region operators, it’s hard to nail down who is from where. We already have contracted for next year at the Sawgrass Marriott near Jacksonville Florida, from September 28 through October 2. We carried through with our leadership development plan to have Nanette attend two NCAC meetings this year, and Vijay Patel
will be attending two as well in preparation for his term as President. Nanette said as our officers’ terms end on April 1 of next year, we will need a new 2nd VP. Anyone interested should contact her. Because of the term change, we will need to conduct the elections at the Convention instead of the fall meeting as we have done before. Justin encourages the board members to consider becoming an officer. He remembers when he was asked to become an officer of this region. It has been extremely beneficial for him, and now to be AKFCF President is a great honor. Justin gave an update on the upcoming Convention at Aria in Las Vegas, March 18-22. A tremendous amount of planning goes into each Convention. The theme will be “Reaching Impossible.” All the details are available beginning on page 34. It should be exciting, informative, and great to be in Vegas again.
The Board had a long discussion about restarting our spring RGM meetings. We all believe that the meetings are important, but there are several issues we will have to solve. First, there is the size of the region after the merger; there is no central spot that would be a good fit for our meetings. We are considering rotating locations east and then west to make it drivable for everyone at least every other year. Another issue is that a large percentage of the restaurants in the region are owned by just five organizations, and we’re only sure of one of those that would participate in the meeting. We need more involvement from the others to make the meetings feasible. We had further presentations about the NCAC, RSCS, OEC and other committees before ending the meeting. I am looking forward to seeing everyone in person in Atlanta. n
Fall 2023 AKFCF Quarterly 51
EXECUTIVE DIRECTOR UPDATE
UPDATING AKFCF’S STRATEGIC PLAN By Kelly Rodenberg
T
he AKFCF Board of Directors is charged with reviewing the strategic plan every three to five years to ensure they are addressing the most important goals and objectives of the Association. At the fall board meeting in Banff, Alberta, Canada, the board began developing their strategic plan for the next few years. Prior to this meeting, they met via Zoom for a preliminary planning session to identify the key drivers/topics for this session with facilitators from consulting group Tecker International, LLC. The below working goals were drafted from that preliminary meeting: Working Draft Goals • Enhance partnership — both with KFCC and the franchisee family
Thank you to all the board members, past presidents, committee chairs, regional secretaries, and staff for their valuable contributions to the plan.
52 AKFCF Quarterly Fall 2023
• Enhance Convention — increase take-home value for all sizes of operators • Governance — evaluate how the AKFCF and regions function • Technology — improve technology use by both AKFCF and its members • Competition — work with KFCC to identify where competition is beating us and close the gaps • Consolidation — assess the impact of consolidation on the Association and its members. On-site, the board was divided into six, small working groups. Each group was assigned a goal. To build the plan, each group had to identify conditions that currently exist — relative to the goal — that they thought were unsatisfactory. In other words, things they wanted to see change. Each group then had to vet those conditions using three criteria: impact, consequence, and immediacy. Then they had to draft three to five objectives for their assigned goal. They had to describe what they wanted to have happen with an issue. What would constitute success or in observable or measurable terms. Based on those objectives, they then developed strategies. This included describing how the Association will commit its resources to accomplishing the goals and its companion objectives. These objectives serve as our link from long-term planning to annual planning. These set our strategic priorities for the EC, board, committees, and staff. With strategies proposed, the groups then vetted the potential approaches using the criteria of necessity, feasibility, appropriateness, and sufficiency to assess whether they should be used. At the end, each group shared their assessments with the full board. It was a lively and productive session. The facilitators are summarizing all the goals, objectives, and strategies and will come back to the AKFCF with a plan. The Board of Directors then will continue its work with this plan via Zoom calls to determine the final strategies, timelines, and accountability for each. Thank you to all the board members, past presidents, committee chairs, regional secretaries, and staff for their valuable contributions to the plan. n
The Hard Way It is comparatively easy to prosper by trickery, the violation of confidence, oppression of the weak … sharp practices, cutting corners — all of those methods that we are so prone to palliate and do as “business shrewdness.” It is difficult to prosper by the keeping of promises, the deliverance of value in goods, in services and in deeds — and in the meeting of so-called “shrewdness” with sound merit and good ethics. The easy way is efficacious and speedy — the hard way arduous and long. But, as the clock ticks, the easy way becomes harder and the hard way becomes easier. And as the calendar records the years, it becomes increasingly evident that the easy way rests haphazardly upon shifting sands, whereas the hard way builds solidly a foundation of confidence that cannot be swept away.
Thus We Builded
®
*Dictionary: Present participle and verbal noun. To fashion or frame according to a systematic plan or by a definite process, to create, to BUILD reputation. Reprinted by permission of Colonel Sanders, November 1964. Copyrighted by Harland Sanders, 1973.
LEGAL UPDATE
AN EXPANDING RELATIONSHIP By Ron Gardner
R
ecently, I had the opportunity to attend a meeting between the AKFCF Leadership Team and the KFCC Leadership Team. In my tenure working with the AKFCF, this was the first time any such meeting has ever taken place. The genesis of the meeting was two-fold. First, our President, Justin Stewart, in visiting with KFCC’s President, Tarun Lal, began to explain all the ways AKFCF is important to the functioning of the KFC system. As it turns out, Tarun is a curious type of leader, and wanted to know more — and thought it important that his team understood our function as well. Second, one of the things the AKFCF has done going back some fifteen to twenty years, is the mentoring of potential national leaders through a Leadership Development Committee. Apologies if I have the history of this wrong, but this
Committee, at least in its current iteration, began under the leadership of Pat Dempsey around 2008, and has existed in some form since then. And in the last few years, the program has been really re-energized by our Immediate Past-President, Keith Cole. Potential future leaders are invited to join the group, and in short workshops throughout the year, the Committee learns about the history of the AKFCF, the important provisions of the 76(5p) Franchise Agreement, the role of the NCAC, public speaking, and other topics that national AKFCF leaders need to know and understand. So, knowing we had a program about the history of the AKFCF, it made sense that we could share that with KFCC, making the introduction easy. KFCC came to the meeting ready to learn. Joining us were Tarun, along with CMO Nick
…Fostering the collaborative relationship we have built has made us a stronger system, all rowing in the same direction.
54 AKFCF Quarterly Fall 2023
Chavez, CFO Jonathan Ojany, CLO Kate Ward, along with Operations head Doug Cook, CPO Karen Ancira, CTO Chris Caldwell, and CDO Ben DuBost. And your entire AKFCF Leadership attended as well (President Justin Stewart, 1st Vice President Leslie Sharp, 2nd VP/Treasurer Roger Sparks, Secretary Kevin Schlutz, our 2nd VP shadow Raziel Valiente, Finance Chair Austin Felker, Executive Director Kelly Rodenberg, and myself. During our three hours together, both teams were engaged with each other. KFCC asked a lot of questions about how our Regions work, how we can use the AKFCF communications mechanism to make sure that franchisees get the best information they can about what is happening in Louisville and in the system. We educated them about the “bad times” and how their predecessors partnered with franchisees in turning the relationship around for the benefit of all of us, and how fostering the collaborative relationship we have built has made us a stronger system, all rowing in the same direction. I came away from the meeting very pleased with the outcome. Both sides understood our relationship more clearly, and KFCC clearly had a better understanding of who and what we are and what we do. And in an encouraging sign, KFCC invited us to do it again next year — and before then, to make the presentation to a much broader audience at KFC. I’ll keep you posted! A Correction I want to take a moment to update you on the new build incentive that I explained in my last column. In a rare miscommunication, your franchisee leadership misunderstood precisely what KFCC set out as the new incentive, and I mis-reported how the program was going to work. Let me clear this up. As I told you, the program allows builders to “tier-up,” earning a bigger incentive based on the number of restaurants you build. The miscommunication is how long the opportunity to “tier-up” was to last. While restaurants that are in the program are eligible so long as they are open by 2026, the “tier-up” opportunity will be determined by the number of new restaurants opened by the end of 2024. So, for instance, to be “Gold” throughout the life of the program, you’d need to have three
restaurants open by the end of 2024 — and then the “Gold” incentive would be paid for any additional restaurants open by the end of 2026. I apologize for any confusion this may have caused up to this point. A Heartfelt Thanks In the last few months, it seems like a higher-than-normal number people have asked me how long I have worked for the KFC franchisees — something I haven’t focused on at all. To my surprise, it’s now been 10 years. It’s a decade that has been the most rewarding of my career, all because I was allowed to become a member of this amazing family. I am deeply thankful for the leaders who had faith in me and allowed me to start working to represent the AKFCF; legends like Terry Rogers, Dale Black, Keith Chambers, Larue Kohl and Dan Yagoda. I am thankful for the AKFCF leadership of years gone by who entrusted me with the opportunity to make a difference in my early relationship with the AKFCF, including Larry Starkey, Joan Bowling and Chris Fowler. And I am thankful for all the AKFCF leaders who have come since: Greg Atwell, Eric Overcash, Bryan Robinson, Jim McKenzie, and Brandon Robertson. They, along with Keith Cole and Kevin Schlutz (who have both been on the EC in some capacity since I joined the organization), have all not only been my clients, but become some of my closest friends along the way. And I feel the same way about the members of our current EC as well. How lucky I am indeed. Finally, to the literally hundreds of KFC franchisees who have let me into their lives, it is, and continues to be my deepest honor to get up every day working to find a way to make your life easier, better and more successful—something I hope to be able to continue to do for many more years. You have given me a gift far beyond my wildest expectations—and I am deeply grateful to all of you. It has been, and continues to be, a truly remarkable ride! 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 both the AKFCF and the NCAC.
Ad index 15
Auspex Capital
24
Bama Companies
42
Café Valley Bakery
28
Case Farms
C3
Dr. Pepper Snapple Group
29
Ecolab Kay Chemical Company
8, 9
General Mills Foodservice
39
Genpak
21
Gycor International
25
Hour Work
33
KFC Foundation
11
Kitchen Brains
31
Koch Foods
41
Lennox Commercial
C2
Magnesol
43
NDA, Inc.
5
Partstown
3
PepsiCo
36
Pilgrim’s
16, 17, 49
Restaurant Supply Chain Solutions
7
Restaurant Technologies
13
Rubicon Technologies, LLC
1
Welbilt
C4
Winston Industries
37
Workstream
Fall 2023 AKFCF Quarterly 55
Photo Courtesy of GlobalKFC.com
LOOKING BACK
56 AKFCF Quarterly Fall 2023
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