AKFCF Fall 2024

QUARTERLY

Association of Kentucky Fried Chicken Franchisees, Inc.

Fall 2024

Turn Inspiration Into Action With

Ben Nemtin

PLUS: 2025 Convention Preview | GAC Report | Legal Update

MAGNESOL® Filter Powder effectively reduces frying oil costs while helping you maintain delicious, fried chicken.

MAGNESOL® is easy to integrate into your daily filtration procedure, extends oil life, and ensures compliance with KFC standards.

12.8 oz Packets

Parts Connection

Powered by

Introducing HVAC Data Plate Scanner BETA

Scan, shop & share!

Using our mobile app, scan the data plate on your HVAC unit to find the specific real OEM parts and manuals needed.

Here’s how to get started:

• Select “Shop by Brand” and choose either Trane or YORK • Tap on “HVAC Data Plate Scanner” • Snap a picture of the data tag on your unit

• You will see any matches for your model plus the related OEM parts and manuals • From there, you can share the model with your team or call us if you have questions

We currently have two great brands available on the HVAC Data Plate Scanner:

500900_JUN24

More brands coming soon!

Download the industry’s #1 mobile app today! partstown.com

hvac@partstown.com

800.438.8898

CONTENTS

AKFCF QUARTERLY Fall 2024

20

30

24

FEATURES

DEPARTMENTS

GAC Report: Looking Ahead To The 2025 Tax Debate 20

By JoAnna Mueller

4 From the Editor

Examining partisan perspectives on the future of the Tax Cuts and Jobs Act.

6 President’s Report 10 NCAC Report

12 In the News What Do You Want To Do Before You Die? 24 2024 AKFCF Annual Convention keynote speaker Ben Nemtin tells us how to 40 RSCS Member Programs turn inspiration into action.

42

KFC Foundation

Convention Preview: What Does ‘Share Your Story’ Mean?

30 44 Education Committee Report

By Kelly Rodenberg Join us at the AKFCF Convention in March of 2025 and get ready to craft, leverage, and expand your story and your business in Nashville!

45 Regional Shorts

48 Executive Director Update 50 Legal Update By Ron Gardner 52 Looking Back

On the Cover: Turn Inspiration Into Action: You can make the world a better place by doing what you love. And when you do, it sets off powerful ripple effects that expand far beyond anything you could have imagined.

2

AKFCF Quarterly Fall 2024

BETTER TOGETHER

PEPSI, PEPSI-COLA, the Pepsi Globe, and the Pepsi Pulse Design are trademarks of PepsiCo, Inc. KFC and related marks are registered trademarks of KFC Corporation. ©2024 KFCC.

FROM THE EDITOR

QUARTERLY Official Publication of the Association of Kentucky Fried Chicken Franchisees AKFCF QUARTERLY MISSION STATEMENT

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

SHARE YOUR STORY

By Michelle Hunt

I

t’s so exciting to unveil the details for the 2025 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 30 and get ready to immerse yourself in the KFC Story in 2025.

It was so great to see many of you at the Franchisee Forum where five of the six domestic regions joined together for the second time. Jennifer Thomas does such a great job leading our steering committee for this meeting and making sure we 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 facetime with the KFCC LT. This format has been a huge success, and we look forward to you joining us next year in Tampa, Florida at the JW Water Street from Sept. 21-24, 2025.

We are delighted that one of the keynote speakers at the 2024 Convention, Ben Nemtin, contributed the main feature article in this issue on page 24. As you may remember, Nemtin is the New York Times bestselling author of, “What Do You Want to Do Before You Die?” In his article, he writes pointedly about turning inspiration into action and chasing those dreams you thought were impossible. As Justin Stewart taught us at the 2024 Convention, Reaching Impossible is possible.

You will not want to miss our columnists, especially AKFCF President Leslie Sharp.

Additionally, Jim McKenzie gives an update on the NCAC, Bill Ford shares what an integral role the Education Committee has on year-round development, Regional Shorts from the Northeast and Northwest, and no one can forget the legal column from our esteemed general counsel, Ron Gardner. Partner columns from the RSCS Member Programs and the KFC Foundation keep us up to date with what’s new. And as usual, things have been lively in Washington, D.C., this election year, so don’t miss the government affairs committee article on page 20.

I look forward to joining you at the 2025 AKFCF Convention in Nashville, Tennessee where the Convention promises to “craft, leverage, and expand our stories and businesses” in Music City.

Warm Regards,

AKFCF EDITORIAL TEAM

AKFCF President Editor Assistant Editor AKFCF Administrative Manager Communications Chair Executive Director Past President

AKFCF Quarterly Fall 2024

Kevin Schlutz Kelly Rodenberg Justin Stewart

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 ©2024 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.

AKFCF ADVERTISING AND EDITORIAL SUPPORT OFFICE

Send all advertising and editorial submissions for AKFCF Quarterly to:

NEW SOUTH PUBLISHING, INC.

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

4

Leslie Sharp Michelle Hunt Julie Mantlo Michelle Hunt

Larry Lebovitz John Hanna Cory Sekine-Pettite Jack Simonetta Megan Willis Jamie Ryan Amy Fine Marilyn Walker

Filter Management Systems

The Gycor Advantage Saves Money. Longer oil life and less oil absorbed into the food means lower costs!

Cleaner. No loose powder with built-in system.

1

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

5

Quick Circulation. Only 5 minutes and it’s ready to cook.

step

minutes

Compact. 30-day packaging.

Easy to store and track replacement usage.

Versatile. Works with all types of oil including Zero Trans Fat Oil

Gycor International 7750 S. Grant Street Burr Ridge, IL 60527

(800) 772-0660 www.gycorfilters.com

FROM THE PRESIDENT

A TIME OF TRANSITION

By Leslie Sharp

I

’m on a plane heading to the Franchisee Forum in Florida as I write this. It’s been a busy summer for all of us, but unfortunately all the hard work we’ve collectively put into this Brand isn’t currently paying off, and we’re still in a slump. My hope is that by the time you’re reading this, OR Tenders will have given us the sales lift needed and times will be better. If not, continue to hang in there.

With the presidential election looming, changes to the ROCC, new OR Tenders, and new faces on the KFCC leadership team, we are once again in a time of transition.

As I write, I’ve noticed that a few of our vendor partners are on the same flight. They are heading down early to play golf in support of the Foundation, and to prepare for some great networking time with our franchisees. I’m always amazed at the amount of support we receive from our vendor partners. They believe in us and they believe in the KFC Brand. They want to provide products and services that will help elevate our restaurants. The AKFCF has a

Our Regions, boards and associations aren’t perfect, and we always strive to evolve and be more efficient, but the fact that we have these institutions in place — along with the franchisee volunteers who support, attend, and foster these institutions — makes for a stronger, healthier business.

6

AKFCF Quarterly Fall 2024

50-year history of providing opportunities to our vendor partners, and this partnership has added tremendous value over the years to our Association and to our businesses. Through the triumphs and struggles, our partners have been by our side, and I never take that for granted.

As I mentioned, it is a time of transition. What is the future for this legacy brand? Which direction do we take first to get this proverbial ‘ox out of the ditch’? And how do we maintain the strength of the Regions and the AKFCF? These are just some of the questions that were asked the past few weeks at the NCAC meeting, and at our Fall AKFCF Board meeting. Very few brands have a franchisee system like ours. Very few have a system of ‘one franchisee, one vote,’ allowing all operators equal footing. Very few brands have something like our NCAC, or our purchasing Co-op.

To sum it up, very few brands have the infrastructure in place and the support needed to have a voice, which is also something that I never take for granted.

Our Regions, boards and associations aren’t perfect, and we always strive to evolve and be more efficient, but the fact that we have these institutions in place — along with the franchisee volunteers who support, attend, and foster these institutions — makes for a stronger, healthier business. I remind you that we are an Association run by volunteer leadership. In good times, it doesn’t much matter “who” is running the show. When there is success, we tend to not worry as much about having a seat at the table and using our voices. But in tough times, times such as these, the franchisee’s voice and standing together is a game changer.

It is important that franchisees and KFCC leadership gather to hash out business. I don’t remember my first meeting, but there are several meetings that are memorable. They are usually the ones where we were at a crossroads and collectively used our voices to make all the difference.

Finally, I want to remind you of our next time together, the Annual AKFCF Convention in Nashville from March 23-26, 2025.

If you haven’t already signed up, now is the time to do it! Let’s take advantage of the opportunity to gather and voice our thoughts and opinions — and hopefully have a little fun while doing so! I appreciate everyone who takes the time to read our Quarterly. I appreciate the time and effort that you put in each day to make our Brand better. And I want you to know that whether you sit on a committee, hold a leadership position, or you’re just one of our faithful members who attends every meeting, you are important to this Association and to the Brand! n

Paying too much in

Bank Fees?

That’s where we can help.

Most franchisees don’t have a lot of time to compare banking services and fees.

Since 1983, the bankers at Pacific Premier Bank have helped thousands of businesses achieve their goals by analyzing and comparing banking services. We’ll help identify any areas where you can reduce fees, automate data delivery, reduce risk, and more.

Contact us to see how we can help save you time and money.

Ranked a Forbes Best Bank for 2024 Let’s Talk.® 402.562.1800 PPBIFranchise.com Member FDIC

© 2024 Forbes Media LLC. Used with permission. Pacific Premier Bank is a wholly owned subsidiary of Pacific Premier Bancorp, Inc.

PUT MONEY

BACK IN YOUR BUCKET Save $$$ each year with RSCS Member Programs.

RSCS Member Programs help operators save on

SHIPPING

WASTE & RECYCLING

BEVERAGE GRADE CO2

MAT RENTAL & CLEANING

EMPLOYEE DISCOUNTS

ENERGY REBATES

OFFICE SUPPLIES

& MORE!

SIGN UP TODAY TO BEGIN SAVING Join Online Now Visit https://memberprograms.rscs.com Login or Register to get started

NCAC REPORT

STAYING FOCUSED, NIMBLE, AND INTENTIONAL ON OUR PATH FORWARD

By Jim McKenzie, NCAC Vice Chair

H

ello KFC Family! I am writing to you after returning from our September NCAC Committee Meeting. We had a slightly different structure than we have had for the past several years. Our subcommittees met virtually leading up to the meeting. Our in-person meeting consisted of the Committee, the KFCC Leadership Team and several additional franchisees who have been critical in the work we have partnered on to transform the brand for the future. At this meeting, we met, spent time with, and heard plans and perspectives from Catherine Tan-Gillespie, KFC’s new Chief Marketing Officer and Chief Development Officer. I look forward to partnering with Catherine and trust her leadership, experience, and commitment to swift and needed change to drive the business forward.

The state of the business required that we get intentional and act with a sense of urgency around four key areas:

Our brand voice and the realities of who we are now and who we want/need to be for the survival of the brand into the future cannot be underscored enough.

• Who we are — getting more focused and disciplined about our identity and messaging while also being deliberate about the needs we are solving for is required. Our brand voice and the realities of who we are now and who we want/need to be for the survival of the brand into the future cannot

10 AKFCF Quarterly Fall 2024

be underscored enough. KFCC has recently engaged a new creative agency, Highdive, who will develop the creative elements for the launch of Original Recipe Tenders in mid-October. Customers must know it is KFC that is speaking to them, but they also must be drawn to come to KFC for our delicious Original Recipe Tenders, Secret Recipe Fries, and new Comeback Sauce.

• Progress needed today — we got down into the details, with some important fast-follow meetings happening regularly over the coming months, about critical “must haves” to get everyone focused and the business progressing forward. There must be solutions to those things holding us back from making essential and meaningful progress. We discussed important topics, including lifting barriers that inhibit our teams from delivering great service, leading from a place of inspiration and not fear, what CapEx needs and requirements will drive immediate results, and what can we do immediately to deliver short-term sales (while also planning for the long-term). A mutual commitment to doing whatever it takes to get a viable 18-month marketing calendar in place was one outcome of the meeting. With that commitment comes a need for a strong and executable test marketing plan. KFCC has committed to getting multiple (many, not few) merchandising tests in markets quickly. We need to get in and out of test quickly. We either take the learnings and move on or take the learnings and scale for a system launch. We must use data to inform our decisions.

• Becoming relevant and interesting — this is so important, yet often overlooked.

We can’t tell ourselves we’re relevant and

interesting; customers have to tell us, and they do that by coming to KFC or having KFC delivered to them. They do it by talking about KFC and generating brand buzz. We can’t rely solely on what our current customers are telling us; we have to win back customers that have left us or customers that were never willing to try KFC because we didn’t speak to them and didn’t offer them what they want. We must do all of this while remaining true to who we are AND growing for our future. The market tests noted above must be focused on innovation and giving customers what they want.

• Working together — we must be one KFC Family. We can’t work against each other. Ensuring that we remain focused on open, honest, transparent, and frequent communications between KFCC and the NCAC is essential. Decision making must be fast and informed. We must learn from the past, both wins and opportunities, but not dwell on the past. We also must ensure

Decision making must be fast and informed. We must learn from the past, both wins and opportunities, but not dwell on the past.

that the rights of the franchisees are protected and that we are stewarding the use of national advertising contribution dollars wisely and as intended.

I have heard from many of you, and I know my fellow NCAC Committee members have as well, regarding the business being in a critical state. In partnership with KFCC, we must act quickly and purposefully to make some important decisions

Auspex Capital 2024.8_KFC ad 3_ flat print ready copy.pdf 1 9/9/2024 12:50:34 PM

Innovative Ideas

C

M

Y

CM

MY

CY

CMY

K

Comprehensive Analysis

Value Added Solutions

aimed at changing the current trajectory of the business and getting the system to a better place. We are all feeling the urgency to ramp up our relevance and our sales. I ask all of us in the KFC family: franchisees, KFCC, vendor partners, etc., to act with resolve and commitment to rapidly push the business forward.

As always, I appreciate you and your commitment to the KFC Family. All my best to you and your teams. n

Flawless Execution

auspexcapital.com

20 $1.43 Billion

Raised in Loans and Lines of Credit

31 M&A Deals

Completed Involving 402 Restaurants

Find out how we can help you maximize the value of your business: Contact Christopher Kelleher, Managing Director:

(562) 424-2455

ckelleher@auspexcapital.com

Fall 2024 AKFCF Quarterly 11

In the NEWS

IN THE U.K. ‘IT ALL COMES DOWN TO TRUST’: KFC AND MOTHER ON HOW TO CREATE A CULT

T

he key to creating bold and attention-grabbing work “all comes down to trust,” Kate Wall, KFC’s UK and Ireland marketing director, has said.

Speaking at Campaign Live, Wall said: “We’re all in this industry to make amazing work and deliver business results, but it all comes down to trust. Over the last three to four years with Covid, [and] with Zoom, it’s so easy to forget the relationship side, between client and agency.

“We’ve doubled down more than ever to make sure we’re still having those face-toface [meetings], because to get to a bold, great, new positioning and work that’s this fresh, is all down to trust.”

Wall was joined by Neasa McGuinness, head of strategy at KFC’s creative agency Mother; Martin Rose, executive creative director at Mother; Emma Bottomley, business lead at Mother; and Emma Horgan, production director at Mother. All were sporting matching KFC jackets adorned with the word “Believe” on the back.

The panel spoke about the making of KFC’s latest brand platform “Believe in chicken,” which was released in June. It launched with a 110-second film depicting a dystopian world where people have nothing left to believe in besides chicken, causing crowds of people to worship the animal in the form of a Th ­ riller-inspired dance sequence.

KFC and Mother set out on a mission to convert 25.3 million non-customers into KFC believers with this campaign and, according to the creative shop, the best way to do this was creating a cult in seven easy steps.

The right cult members The first step involved having the right cult members to back the idea, including the brand, which Rose described as crazy and a cult of its own. He described a time when he went to the KFC office in Woking and heard “an insane chanting [and] stomping on the floor. It was all a bit Wolf of Wall Street.”

12 AKFCF Quarterly Fall 2024

A founding myth The second step is deciding on a founding myth. In this case, McGuinness said: “When we started this new campaign, we knew we wanted a big step change, and that meant pressing that big, scary reset button.”

Mother asked KFC what they liked about past work and what they were happy to let go of. “We were going to get rid of everything and have a clean slate and say, ‘You know what guys, we’re never going to be able to get to the next stage if we hold really tightly on to what we’ve been doing’,” she said. “So, we had to kill some sacrificial lambs.”

Sharing the idea Bottomley added that this new vision deserved to be shared widely across Mother and KFC before going live to the public. This brought the team to step three, presenting the idea with a “flourish” to the cult.

“We have a new vision, strategy, creative idea, and it was so important that we could bring the wider cross-agency team and the full function of KFC along with us,” Bottomley said. “We were never going to do that just with a presentation on Zoom, or in a stuffy boardroom, or something on a PDF.” The idea was instead presented at Leicester Square cinema to about 400 people.

Dispel doubt Step four was the ability to dispel doubt.

Rose stressed the importance of having a

“wobble hotline,” where people can share their worries and concerns with others involved in the work.

“Wobbles make us stronger,” Rose said.

“It is important you have a tight-knit group, and you can all have honest conversations and wobble as much as you want.”

Rose said earlier in the session that it was also important to tell the client not to be afraid: “Ultimately, because we showed [KFC] a lot of scary stuff, [we told them] don’t be scared.”

Miracles Step five was about working miracles.

Horgan said Mother and KFC had to look for a “profit to deliver [their] message to the masses” and so the creatives landed on Vedran Rupic to direct the ad through Business Club. Rupic was also a Bosnian folk dancer, telling the team that dance was his first passion, which influenced the film’s narrative.

“He was a believer from day one,” Horgan said.

Don’t break the rules Step six focused on the rules. “If you have a cult, you have to have rules, and you have to enforce the rules,” McGuinness said. “We had a lot of franchisees and restaurants getting involved and making their own signs, but you do also have to draw some lines.”

McGuinness went on to explain how the IT department had created their own ban-

ners saying “Believe in IT” and Mother had to put a stop to this, as it distracted from the cult’s overall message of “chicken only.”

Capture the devotion Lastly, step seven was “capture the devotion,” as KFC and Mother asserted a key ingredient of the campaign’s creation (aside from 11 herbs and spices) was the team’s dedica-

tion and the fun they were having during production.

A bonus step from Rose was: “Don’t let the police stop you. We’ve had a lot of police involvement, including pulling over our vans outside Westminster quite regularly.”

Wall added: “Honestly, getting back to just an infectious energy where people, the best talent, will work on the account

and can’t stop working on it because it’s so fun. I think that’s what we really like with this, like the trust amongst us but also just having fun.”

She concluded: “We need to be bolder, because there’s too many bland burger ads out there.”

Source: campaignlive.co.uk

Condolences: Charles Mullins, a former franchisee and former SEKFCFA President, passed away in July 2024 at the age of 84. Mullins served in the U.S. Navy during the Vietnam War before moving to North Carolina and beginning his career with Scottish Food Systems, a franchisee company with KFC and Pizza Inn restaurants in North and South Carolina. He started as restaurant manager and quickly worked his way up to Vice President of Operations, then in 1985 was named President and CEO. Mullins is survived by his loving family, wife, Madora McClure Mullins; his children Matt, Anne, Regina and their spouses, as well as six grandchildren. Our deepest condolences to his family and friends.

SAVE UP TO 15% ON INSURANCE PREMIUMS Protect your business and staff by automating the most dangerous jobs in the kitchen. Automated cooking oil management reduces the risk of burns, slips, and falls.

TA K E C O NTRO L AT WWW.RTI-INC.COM/KFC Fall 2024 AKFCF Quarterly 13

In the NEWS

KFC ZOOMS IN WITH BODACIOUS BUCKET-CAM POVS

E

verything’s a surveillance device these days. Even buckets of KFC extra-crispy.

The camera’s tucked deep inside, capturing happy faces of hungry souls as they grab for that deep-fried chicken-y goodness.

Now, wags might say: That idea’s too simple. Besides, the package/box-cam thing has been done a billion times. True and true. Regardless, Courage’s spots for KFC Canada deliver a greasy, crunchy mix of fab faces and finely detailed fun.

This shouldn’t work nearly as well as it does. We raise a wing to Spy Films director Justin Abernethy for keeping each frame fresh and unexpected. It’s like peering into a wondrous world of fast food. Those are batter-dipped mountains, rising majestically into the sky. We’d live there, if only we could.

The approach impressively translates to print and OOH, too. Abernethy shot those images, with retouching by Allan Davey.

“Let’s face it: the bucket is so iconic that you don’t even need to see it to recognize what it is,” says Courage co-CCO Joel Holtby.

“KFC’s bucket is one of the most distinct

pieces of packaging in the world, and that speaks volumes about the brand and why it’s so universally loved.”

“We shot it by putting a camera rig inside various buckets and positioning real product around the lens,” he tells Muse. “We then worked with an amazing team at Art

Jail to tweak and perfect the visuals.”

The Toronto agency excels at serving up KFC campaigns with pop-culture appeal.

It ticked off that box in July, transforming Colonel Sanders’ tie into a KFC clock.

Source: musebyclios.com

KFC’S COLONEL SANDERS IS AVAILABLE AS A ‘FUNKO FUSION’ CHARACTER

K

FC has teamed up with the new “Funko Fusion” game, which released on Sept. 13, to allow fans of the fast-food chicken chain and those adorable likeness dolls to acquire new outfits that take Colonel Sanders out of his white suit and into a whole new fashionable style when playing “Funko Fusion” online.

According to ScreenRant, players can find the basic white-suited version of Colonel Sanders through an “in-game quest that is available to all players.” However, the KFC Rewards X Funko Fusion collab is giving members two more exclusive outfits to unlock on Steam and PlayStation 5: Chef Colonel and Mecha Colonel. Chef Colonel is unlockable for free, and Mecha Colonel requires 250 points, which is about $25 worth of purchases at KFC. To unlock the two colonel outfits, users can sign up or sign in to their existing rewards account at kfc.com/login. Then, they can head to the rewards section and click “Redeem” to claim their selected Colonel outfit reward.

Subsequently, an email linked to a user’s KFC Rewards account gives access to a unique code. Finally, they can enter that code at funkofusion.com/redeem and select their gaming platform of choice. A platform code will be generated, and users can unlock the chosen Colonel Sanders outfit in “Funko Fusion” on Steam and PlayStation 5. Instant unlock is coming soon to Xbox Series X|S. 14 AKFCF Quarterly Fall 2024

“Funko Fusion” is a multi-level game where users can express themselves and their love for a particular character with more than 20 fan franchises. Characters inspired by Jurassic World, Back to the Future, JAWS, The Thing, Chucky, Battlestar Galactica, Hot Fuzz, The Umbrella Academy, Masters of the Universe, Invincible, and, of course, Colonel Sanders are available.

Source: RetailWire

PROUDLY SUPPLYING KFC

Microwave & High Speed Ovens

Reach-in Coolers & Freezers

Reach-in Coolers & Freezers and KFC Pack Lines

Fry Holding Station

Fryers

Warewashing

Walk-in Coolers & Freezers

Storage Solutions

Mark Johnsson, Vice President Strategic Accounts | 914.414.5731 | mark.johnsson@welbilt.com

Dispensers

welbilt.com

In the NEWS

YUM! BRANDS CONTINUES TO MAKE PROGRESS ON REDUCING CARBON, IMPROVING PACKAGING AND REMOVING BARRIERS

Y

um! Brands, Inc. has released its annual Global Citizenship & Sustainability Report, detailing its advancements in reducing carbon emissions, improving packaging and removing barriers. The company has a longstanding dedication to responsible business practices, investing strategically in its three priority pillars of People, Food and Planet, which are part of its Good Growth strategy. The strategy is grounded on the idea that the Good priorities and the Growth priorities are closely intertwined and enablers of one another.

“In 2023, we experienced a year of remarkable growth and remained focused on greenhouse gas reduction, sustainable packaging and having a positive community impact,” said Yum! Brands CEO, David Gibbs. “Our Good Growth strategy has propelled our sales and restaurant development, which allows us to invest more in areas like renewable energy, supplier pilot programs, and technical training for at-risk youth in our communities — the Growth advances the Good.”

This report highlights Yum!’s key accomplishments toward building a more sustain-

able and equitable world, which has led to its inclusion in the Dow Jones Sustainability Index North America, recognition as one of TIME Magazine’s Best Companies for Future Leaders and named to the USA Today’s 2023 America’s Climate Leaders list.

“We made significant progress in 2023 across our global citizenship and sustainability agenda, and we’re excited about the opportunities ahead,” said Yum! Brands Chief Government Affairs & Sustainability Officer, Jon Hixson. “We believe in the power of collaboration to make positive change, and we continue to work closely with our stakeholders and partners to develop innovative solutions and share learnings that drive advancements.”

Highlights from Yum!’s new Global Citizenship & Sustainability Report include: People • In 2023, 44% of global corporate leadership roles were held by women, up from the 2018 baseline of 33%.

• In 2023, over 7,100 restaurant general managers and assistant restaurant general

managers on six continents completed Leading With Heart through Heartstyles, Yum!’s signature leadership and personal development program.

• Since 2020, Yum! has reached 204,000 people and utilized and/or committed $71 million of funding for over 30 community impact programs designed to remove barriers through its Unlocking Opportunity Initiative.

Food • In 2023, over 70% of Yum!-approved suppliers achieved Global Food Safety Initiative (GFSI) Certification.

• Sourced over 90% cage-free eggs for the 25,000 restaurants with a 2026 goal.

• Endorsed the Antimicrobial Use Stewardship Principles in Poultry, supporting an initiative that includes over 40% of global poultry meat production.

Planet • On track to achieve Yum!’s 2030 emission reduction goals across both Scopes 1 and 2, as well as Scope 3 as it relates to energy emissions from franchisee-owned restaurants.

• Advanced Yum!’s sustainable supply chain work with KFC Europe committing to source 100% sustainable soy by 2025 and Pizza Hut decreasing emissions by 10% in the milk used for its cheese by improving cattle feed.

• Invested in sustainable packaging and infrastructure with Taco Bell expanding its recycling program with TerraCycle beyond its own sauce packets and Habit Burger & Grill reducing paper usage with new takeout bags.

For more information and to view Yum! Brands’ latest Global Citizenship & Sustainability Report visit yum.com/impact.

Source: Yum!

16 AKFCF Quarterly Fall 2024

KFC NAMES CATHERINE TAN-GILLESPIE CHIEF MARKETING OFFICER AND CHIEF DEVELOPMENT OFFICER in our restaurants to overall brand perception and doubling down on our commitments to getting both right.”

Prior to KFC, Tan-Gillespie served in various marketing roles in food, working for Frito-Lay, Goodman Fielder, and Dairy Farmers, and in entertainment, working for Sony

and Universal Pictures. She holds a bachelor’s degree in business studies from the University of Plymouth in the U.K. and an MBA from the Australian Graduate School of Management, as well as a host of professional accreditations.

Source: KFC

K

FC announced in August that it has named Catherine Tan-Gillespie Chief Marketing Officer and Chief Development Officer for KFC U.S. She will report to Tarun Lal, president of KFC U.S. In this role, Tan-Gillespie will develop and implement innovative marketing strategies to return the business to growth in the U.S. This includes oversight of all integrated marketing, advertising, public relations, media and consumer insights, as well as the brand’s digital initiatives. She will also oversee food innovation and commercialization, aligning new product innovation efforts across the organization, new restaurant development, existing restaurant redevelopment, and asset design for the U.S. Tan-Gillespie joins KFC U.S. from KFC Canada, where she has served as president and general manager since 2022. In less than three years, her team and franchisees have transformed the business and rebuilt the KFC brand by accelerating restaurant upgrades, advancing digital ordering, developing compelling value offers, and creating award-winning brand advertising. She has been with KFC for nine years and previously served as CMO for the South Pacific region and then the KFC Global CMO. “Tan-Gillespie is a seasoned leader with a proven record of building brands and delivering compelling marketing initiatives that deliver measurable bottom-line impact,” said Lal. “By combining marketing and development roles into one, we are acknowledging the importance of the customer experience Fall 2024 AKFCF Quarterly 17

In the NEWS

KFC INDIA LAUNCHES SIGN LANGUAGE KFC PARTNERS TRAINING, INTERACTIVE ISL KIOSKS WITH GIVING a step toward inclusivity, KFC India has launched a comprehensive sign language training KITCHEN for its entire workforce, according to a MediaNews4U report. The initiative, part of Inprogram Photo courtesy of HotelierIndia.com

the company’s Kshamata program, aims to create a more accessible environment for customers with hearing impairments.

The training program, designed in consultation with a sign language expert, covers the basics of Indian sign language, including alphabets, greetings, and common phrases. KFC India’s 17,000-plus employees across 1,200-plus restaurants will be required to complete the training.

“We believe in creating an inclusive environment for all.

By training our employees in Sign Language, we’re taking a significant step towards making our restaurants accessible to the hearing-impaired community,” Moksh Chopra, GM, KFC India and Partner Countries, told the news outlet.

In addition to the training program, KFC India has launched interactive sign language kiosks at select locations, allowing consumers to learn and practice sign language while ordering food.

Source: qsrweb.com

A SWEET ENDING TO ANY MEAL!

16oz. Double Chocolate Bundt

16oz. Lemon Bundt

PROUD PARTNERS FOR OVER

10 YEARS For more information visit cafevalleybakery.com or contact Brian Sanner e. bsanner@cafevalleybakery.com ph.225-772-6511

K

FC has partnered with Giving Kitchen, a nonprofit organization with a goal to create a food service community in which needs are met with compassion and care, to expand the reach of it signature program, The Stability Network. The Stability Network connects food service workers to community resources and curated services, according to a press release.

The partnership between KFC and Giving Kitchen widens The Stability Network’s available resources for food service workers, Giving Kitchen served double the clients in 2024 compared to 2023, with expectations to increase the program’s caseload by nearly 600 percent through the duration of the partnership.

“At KFC, we strive to feed people’s potential and be the secret recipe for good. Giving Kitchen has been doing just that for over 10 years, and we’re honored to partner with them and unlock more resources to help more food service workers across the entire industry,” Catherine Tan-Gillespie, CMO, KFC U.S., said in the press release.

Allison Padilla-Goodman, CEO of Giving Kitchen said the partnership with KFC is a step toward Giving Kitchen’s mission to provide national assistance to food service workers.

“With KFC’s help, we’ll be able to greatly scale the Stability Network and impact even more food service workers around the country,” she said.

KFC operates more than 30,000 restaurants in nearly 150 countries and territories.

Source: qsrweb.com

KFC:CV.indd 1

18 AKFCF Quarterly Fall 2024

9/10/24 3:44 PM

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

ROI

Return on Investment

TRP

RSC

Restaurant Support Center

VOC Voice of the Customer (formerly CBCC)

RSCS Restaurant Supply Chain Solutions (formerly UFPC) SBRA Supplier Business Relationship Agreement TOL

Targeted Rating Point

YUM

Yum! Brands

YRI

Yum! Restaurants International

Territory Operations Leader

FA (Or F/A) Franchise Agreement FIT

Food Innovation Team

FSC

Food Safety Consultation

GAC

Government Affairs Committee

IAYF International Association of Yum Franchisees (formerly known as the IAKFCF, International Association of KFC Franchisees) KFCC Kentucky Fried Chicken Corporation NAC National Advertising Cooperative (merged with NFAC to become NCAC) NCAC National Council and Advertising Cooperative NFAC National Franchisee Advisory Council (merged with NAC to become NCAC) NMS ational Marketing Subcommittee NPC National Purchasing Cooperative (i.e., KFC NPC) OEC Operations Excellence Committee PAC

Political Action Committee

POP

Point of Purchase

POS

Point of Sale

QSR

Quick Serve Restaurant

REC Restaurant Economics Committee RGM

Restaurant General Manager

RMI

Restaurant Margin Improvement

ROCC Restaurant Operations Compliance Check

A Lasting Partnership Built On Success.

We thank all the KFC franchisees for the many years of supporting our products.

KochFoods.com Fall 2024 AKFCF Quarterly 19

GAC Report

20 AKFCF Quarterly Fall 2024

Looking Ahead To The 2025 Tax Debate Examining partisan perspectives on the future of the Tax Cuts and Jobs Act

By JoAnna Mueller

Fall 2024 AKFCF Quarterly 21

T

ax Policy will likely be the single biggest issue of focus for our organization this coming year. It is important to get a handle on the prevailing perspectives involved in federal negotiations. Consensus will come only after much debate. In fact, right now even, each party is still grabbling with large questions and won’t have their views fully fleshed out for a few more months.

The Tax Cuts and Jobs Act was a cornerstone of the Trump legislative agenda during his term. It was also crafted by leaders, including Speaker Paul Ryan, who were more traditional Republicans.

Thus, it appeals to those two wings of the Republican Party. Generally, Congressional Republicans agree that the Tax Cuts and Jobs Act boosted the economy. In fact, if anything, they are frustrated that, because President Trump was its champion, the legislation didn’t get the credit it deserved.

Republicans believe that most, if not all, of the Tax Cuts and Jobs Act should be extended.

Republicans are debating elements of what that would look like.

Should the Tax Cuts and Jobs Act be partly or fully paid for? Debt hawks are incredibly concerned with our ballooning national deficit. If Congress is paying for an extension of the Tax Cuts and Jobs Act, how should it do so? And finally, should policymakers pursue a simple extension of the Tax Cuts and Jobs Act or examine more broad tax reform?

The Democrats in Congress view the Tax Cuts and Jobs Act differently. They believe it was skewed to almost primarily benefit higher income taxpayers and large corporations. They say that extensions should focus on those making less than $400,000 a year. They also believe that the Tax Cuts and Jobs Act added too much to the deficit.

Democrats say we need additional revenue from higher-income taxpayers and large corporations to offset the deficit.

The Democrats are debating elements of their position as well. They are internally discussing how much of the Tax Cuts and Jobs Act should be extended. Many have made the promise that they won’t support legislation that raises taxes on those making less than $400,000 a year. However, does that pledge apply to each provision separately or to an overall tax package? And finally, how much energy should be poured into expanding the Child

Where do we think the two parties will land as they collaborate on upcoming legislation? We can see them agreeing on a few items. Others will remain points of contention. That is where our advocacy and the advocacy of all kinds of interest groups will move the needle and often be a deciding factor.

22 AKFCF Quarterly Fall 2024

Tax Credit versus focusing on a wider variety of potential expansions to the social safety net?

The Tax Relief for American Families and Workers Act of 2024 (H.R. 7024), a bipartisan deal between Chairman Smith and Chairman Wyden passed the House 357-70 and accomplishes several priorities for AKFCF: • Section 179: Increases the maximum expensing for depreciable business assets for qualified property from $1.16M to $1.29M and increases the phaseout threshold amount to $3.22M • Section 163(j): reinstates EBITDA deductibility of interest on expenses (currently 30-percent EBIT) • Section 203: Restores 100-percent bonus depreciation for qualified properties.

It is currently stalled in the Senate, but it is a good sign of what to expect in future legislation.

We advocated for its passage in the House and during our fly-in, we thanked the congressmen who voted for it and urged senators to support it should it come up for a vote.

Where do we think the two parties will land as they collaborate on upcoming legislation? We can see them agreeing on a few items. Others will remain points of contention. That is where our advocacy and the advocacy of all kinds of interest groups will move the needle and often be a deciding factor.

Likely, Congress will extend a few measures with little disagreement. We expect them to extend lower rates for people making less than $400,000. They will probably extend the doubled standard deduction. Congress will also extend the $2,000 per child tax credit. Finally, we foresee them addressing R&D amortization this year.

Where will advocacy mean the most? The future of the 20-percent pass-through deduction will be discussed a lot this year. SALT, MID, and other itemized deductions are highly debated.

Something that is important to many of our franchisees is the size of the AMT and estate tax base. Two more items under deliberation are the corporate rate and offsets/pay-fors.

We have already been advocating for years on our tax positions and priorities. A key tenet of our advocacy efforts is consistency. Our goal is always to maintain and build on our relationships with key House members and senators. Thus, they recognize us and many of our GAC franchisees when we walk in the door during fly-ins, and they have a nuanced and historied understanding of our views. But, of course, we will need all franchisees to stay involved.

This will be a year of hard work! n

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 reelection. You may make your 2024 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).

Recipient of the

2023 KFC Star Award

“Preferred Vendor”

KFC Red Décor Package

DESIGN+BUILD CUSTOMER DRIVEN OUR BUSINESS IS CUSTOMER SERVICE, WE JUST HAPPEN TO MANUFACTURE GOODS.

PEOPLE FIRST SAFETY AND MUTUAL RESPECT ARE PARAMOUNT TO US.

INTEGRITY

WE UPHOLD HONESTY AND INTEGRITY; OUR WORD IS OUR BOND.

QUALITY MATTERS WE CONSTANTLY IMPROVE, BUILDING PRODUCTS WE PROUDLY STAND BEHIND.

TEAMWORK

COLLABORATION FOSTERS OUR HIGHEST LEVELS OF TEAMWORK.

918-682-4400 • CUSTOMSEATING.COM Fall 2024 AKFCF Quarterly 23

24 AKFCF Quarterly Fall 2024

What Do You Want To Do Before You Die? Turning inspiration into action

By Ben Nemtin

In 2006, I was oblivious to the power of asking myself that question. It was my first year of college and I was preoccupied, consumed by pressuring myself to succeed academically and athletically.

Fall 2024 AKFCF Quarterly 25

Turning inspiration into action

W

hile training for the U-19 Rugby World Cup in France, I began feeling anxiety about making my field goals. Worry crept into my mind at night. “What if I miss an easy kick right in front of the goal posts?” Soon, losing sleep was routine. Before I knew what was happening, I had slid into a debilitating depression and became crippled by anxiety.

It just blindsided me. This was nothing I had ever experienced before. I had always been “me,” a happy-go-lucky guy with a terrific group of high-energy friends. All of a sudden, I found it too daunting to get myself to school and rugby practice — and then I was dropped from both the university and the team. I became a shut-in in my parents’ house, unable to leave. In the black of night, I felt so deeply terrified of the emptiness getting worse that I would turn on the light. I felt, in a word, buried.

I endured these feelings for months before a few friends insisted that I join them to live and work for the summer in Banff, Alberta. Finally, slowly, I started to emerge from my fog. I landed a job. I started talking about how I was really feeling. And I met inspiring, young people — one who was starting his own business, others who were traveling the world. As the summer wound down, I made a decision. I was going to try to only surround myself with people who inspired

A dream has a funny way of staying a dream, but a project has manageable steps toward a specific end.

Writing down your dream is the first step in your project.

26 AKFCF Quarterly Fall 2024

me. Little did I know then, this one small decision would completely change my life.

While actively pursuing relationships with people who inspired me, I found three friends — Jonnie, Duncan, and Dave — who were also grappling with the same sense of feeling buried.

We reckoned the quickest way to unbury our true selves was to ask the question, “What do you want to do before you die?” Our collective answers to this question resulted in the world’s most insane bucket list — 100 things we wanted to do before we died. Some of the items on the list were simple (#14: Grow a Mustache or #34: Pay for Someone’s Groceries), and others were downright nuts (#100: Go to Space or #96: Have a Beer with Prince Harry or #08: Play Basketball with the President). Our list turned into a mission. We would take a two-week road trip and check off as many things on the list as we could. But that was not all. We pledged that for every item we crossed off, we had to help a total stranger do something they wanted to do before they died.

At first, we did not tell our other friends what we were doing because we didn’t know how to explain our unusual mission. The four of us had bonded over what amounted to a shared feeling — we were fed up with feeling dulled and wanted something unfamiliar. But we had no way of articulating what it was that we were after.

Our “plan” was a mess. On the eve of the road trip, a mechanic told us that the RV we had borrowed was not going to make it home. I had fabricated a wedding to get time off of work. And we had to pretend to own a production company to raise money for a camera and gas for the RV. What could go wrong, right? But we were not thinking about that. This was about our list. The only thing we knew for sure was that we had two weeks to cross off as many items we had written down as possible and help some people along the way.

Ultimately, we discovered a name for the project after Jonnie was assigned a poem in English 102 called “The Buried Life.” Even though it had been written 150 years earlier, it spoke to the feeling we all were experiencing: the desire to unbury our lives and do the things that were genuinely important to us rather than what was expected of us. Four lines stood out from the rest: But often, in the world’s most crowded streets, But often, in the din of strife, There rises an unspeakable desire After the knowledge of our buried life.

Over the past decade, I have witnessed firsthand the “unburying” of dozens of my own dreams — and thousands of others.’ The more items I crossed off my list, the more I became convinced that anyone can do anything. What started as one list, grew and in just a few short years, into an international movement known as The Buried Life. Thirty million people watched “The Buried Life” on MTV, and it remains the network’s highest-rated show on iTunes, Amazon, and IMDB. “What Do You Want to Do Before You Die?,” our illustrated collection of bucket list dreams that our community sent us after becoming inspired by our list, became a #1 New York Times bestseller.

But all of that is only the beginning of the story. There is an underrated advantage to being young and naive and energetic enough to hit the road in a beat-up RV with a list of dreams, but there is a great deal of wisdom that does not surface until a little time passes. In 2015, I was invited to speak at a TEDx event. I had barely

Fall 2024 AKFCF Quarterly 27

Turning inspiration into action done any public speaking — certainly nothing as high-profile as for the TED brand. But I accepted and started figuring out what to include in my talk. I came up with six steps for crossing something off your bucket list and wove in some of the lessons that continued to apply to my own life. I was nervous when I stepped onto that stage, but I believed in what I had to say. I had lived it.

When I saw how the message landed with the audience, I knew I had to keep sharing it. What I had thought had been the peak of this movement — the success of “The Buried Life” MTV show — had actually only been a catalyst for more.

As I started to test the waters with more speaking engagements, every time I spoke it seemed to lead to another speaking gig, and then another.

Anyone can rewrite their core beliefs about what is possible, just like I did.

You can make the world a better place by doing what you love. And when you do, it sets off powerful ripple effects that expand far beyond anything you could have imagined.

28 AKFCF Quarterly Fall 2024

I saw on the faces of people in the crowd, and in their comments afterward, that there is an intrinsic desire for turning inspiration into action. This message is contagious.

Every success that flowed out of The Buried Life movement originated with one simple act: Writing down a list of things we wanted to do before we died. It’s what got us out on the road in the first place. It’s what held us accountable and made us keep going.

When you write down your dream, you turn an idea into a project. You take something intangible to tangible. This gives your dreams their first real “breath” of life. The act of writing a list also forces you to slow down enough to really think about what’s important to you — not what’s important to your friends or family, or anyone else. What excites you? What gives you butterflies in your stomach just imagining it? What inspires curiosity? Key off of those feelings and keep writing down the things that stand out. Your list is your map, a North Star that you can return to when you stray from what you truly value. A dream has a funny way of staying a dream, but a project has manageable steps toward a specific end. Writing down your dream is the first step in your project.

Something remarkable emerged recently as the most tangible and impactful outcome of The Buried Life philosophy. I think of it as “the ripple effect.” Ripple effects, actually, because this phenomenon is not a single, static event that can be isolated; it is the flashes of inspiration we get from others that change the course of our lives, which then allow us to still inspire others. Each of us can trace these influential connections across our experiences. Our lives are full of big and small turning points, and other people play a crucial role in all of them, whether by inspiring us, opening new doors to opportunity, or just stepping in to help us get over a bump.

When I was struggling with depression, I had a friend who decided to start his own clothing line in college. Seeing him fearlessly take on that challenge opened my eyes. “If he did that, what can I do,” I thought. Without realizing it at the time, he had sent out a ripple, one that soon empowered me to create the first version of our bucket list, which snowballed chaotically into that first road trip that launched The Buried Life. Soon, achieving our goals and helping people along the way sent out ripples that inspired others to unbury life-changing aspects of their own lives, and in

doing so trigger positive turning points for the people in their lives.

And so, on and on.

This unstoppable force can at first seem invisible, but it ultimately reveals itself in the real-life transformations of everyone it touches. It has emerged as the most profound consequence of The Buried Life, one that I could never have imagined when I took the first simple step of making my list. Now, more than a decade later, it is the cornerstone lesson that makes all of this meaningful. Put simply: The list you write down is the what; the ripple effect is the why. It is the ultimate win-win: Do what you love and help others kick-start their dream.

Signs of this ripple effect began to emerge everywhere. It was not an outcome we anticipated, but it turned out to be an inevitable reaction each time we helped someone cross something off their list.

Giving is not a one-to-one relationship, it’s one to many. Each wave you create by giving stirs ripples that impact countless others. The ripple effect compounds as it spreads, because when you inspire someone, you do not just help that one person, you help the people around them: their friends, their family, and their community. The relationship is not one to one, it is one to many, and that generosity creates tangible, exponential ripple effects. The ripple effect is a prevalent, if often unseen, characteristic of all of our social interactions. We all have influence over those around us, and the way we operate in our day-to-day lives has measurable impact on those we don’t even intend to impact. It all starts with a wave, an inciting event that causes profound change in someone’s life. That’s the thing about the ripple effect: For every wave you create, the ripples don’t stop. They continue rolling through the ocean of humanity until they’ve traveled well over the horizon and lap up on beaches that you never even knew existed.

As I size up the last decade, I like to think that there is something unique about me and my friends that made us able to do so much, but the truth is the opposite. The more I speak around the world, the more I see firsthand the appetite for this message. It is easy to get buried. Depression, addiction, work, bad relationships, the stress of day-to-day life — so many things have the power to overwhelm us and tug us under. The lessons I have gained are straightforward. And anyone can apply them to their lives at any age. Anyone can rewrite their core beliefs about what is possible, just like I did. You can make the world a better place by doing what you love. And when you do, it sets off powerful ripple effects that expand far beyond anything you could have imagined. n About the author: 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, including the 2024 AKFCF Annual Convention, and Fortune 100 leadership teams around the world. Learn more at bennemtin.com.

2.5 MILLION $

in scholarships available

From trade school to grad school, help your team soar!

Application Window: Jan. 10 – Feb. 17, 2025 kfcfoundation.org/scholarships *Franchisee must participate in the KFC Foundation’s Annual Donation Program for employees to be eligible ©2024 Kentucky Fried Chicken Foundation, Inc. The Kentucky Fried Chicken Foundation is a non-profit, 501(c)3 organization.

Fall 2024 AKFCF Quarterly 29

30 AKFCF Quarterly Fall 2024

What Does

‘Share Your Story’ Mean?

Join us at the AKFCF Convention in March of 2025 and get ready to craft, leverage, and expand your story and your business in Nashville!

Fall 2024 AKFCF Quarterly 31

By Kelly Rodenberg

W

e all have a story to tell, and your story is a unique thread in the fabric of the story of KFC. Since the beginning, franchisees have had a hand in writing one of greatest restaurant success stories of all time…The KFC Story. The Colonel, our original author, had the dream and ambition of creating and serving his world-famous chicken recipe to his guests. However, without the franchisees of this unique system, the Colonel’s dream never would have been realized, and the KFC story would have ended long ago.

Storytelling is a powerful way for successful people to share knowledge and connect. Stories outshine statistics, and create a vehicle in which we can persuade, influence, and inspire one another. By sharing our stories — the triumphs and the struggles — we build trust, which then opens the door for growth. And growth is what we are all striving for.

Storytelling is an art, but you don’t have to be an artist to tell a great story.

Just like the Colonel, you just need heart, authenticity, and the willingness to share. Everyone associated with our Brand, including you, has added chapters to this story over time, making Kentucky Fried Chicken what it is today, and we’re not done yet.

What better place for us to gather than Nashville, a city known for music, neon lights, fried chicken, and great stories! Join us at the AKFCF Convention in March of 2025 and get ready to craft, leverage, and expand your story and your business in Nashville!

32 AKFCF Quarterly Fall 2024

Streamline Production Management Get the KMS Accelerator Package for Only $4,200

UNLOCK THE

Middle-of-House

™

with KorrectProduction (QPM)

• Connect your fryers and ovens with IoT • Automate the projection process with real-time depletions and forecast calculations • Monitor and track product availability, freshness, and waste • Track product hold times and provide discard notifications • Improve product quality and consistency • Deployed in 1600+ locations globally over 10 years

KMS Accelerator Package Only $4,200 Save up to $7,000 per site.

License and subscription fees through EOY 2027 KitchenBrains hardware, VC210s, upgrade kits, and bezels Kitchen Advisor and Gateway hardware Dedicated support every step of the way Limited time offer.

www.KitchenBrains.com | 800.243.9271 | 203.377.4414

‘Share Your Story’ Schedule At-A-Glance Sunday, March 23 11:00 a.m. – 6:00 p.m.

Attendee Registration 1:00 – 5:00 p.m.

Workshops (3) 5:00 – 7:00 p.m. Welcome Reception in Trade Show – Country Icons Monday, March 24 7:00 a.m.– 8:30 a.m.

Breakfast 9:00 a.m. – 12:30 p.m.

AKFCF General Session at the Grand Ole Opry 1:00 p.m. – 2:30 p.m. Lunch and Colonel’s Kitchen Clash with Celebrity Chef Edward Lee 2:45 p.m. – 4:00 p.m.

General Session 4:00 p.m. – 6:00 p.m. KFChic Reception in Trade Show Free Night 8:30 p.m. – 11:00 p.m.

KFC Foundation Event – Pins Mechanical

Tuesday, March 25 8:00 a.m.– 9:00 a.m.

9:00 a.m. – 12:00 p.m.

12:00 p.m. – 2:00 p.m.

2:30 p.m. – 4:30 p.m.

6:30 p.m. – 10:15 p.m.

Breakfast KFC General Session Lunch in Trade Show General Session Final Night Celebration at Category 10

Wednesday, March 26 7:30 a.m.– 8:30 a.m.

8:30 a.m. – 3:00 p.m.

8:30 a.m. – 8:45 a.m.

8:45 a.m.– 10:15 a.m.

10:30 a.m. – 1:30 p.m.

1:30 p.m. – 3:00 p.m.

Breakfast AKFCF Franchisees Only Day AKFCF President Closing Remarks Legal Update Regional Meetings AKFCF Board Meeting

CONVENTION HIGHLIGHTS OPENING SESSION Experience the best of storytelling with AKFCF President Leslie Sharp at the Grand Ole Opry, country music’s biggest stage! With a mix of legendary icons and rising stars, our lineup promises an unforgettable session filled with exciting performances and celebrations. Join us for a morning of music and memories at the iconic Opry House.

WORKSHOPS Join us for three workshops focused on Restaurant Leadership. We can’t tell our story as business owners without the people whose stories define our business every day. We’ll explore how to consistently improve your KFC Operations to deliver exceptional results with emphasis on our leaders, both the Restaurant Manager and The Above Store Leader.

LUNCH EVENT: COLONEL’S KITCHEN CLASH WITH CELEBRITY CHEF EDWARD LEE Experience the thrill of high stakes cooking competition with this iconic showdown between talented teams of cooks under the watchful eye and critical analysis of Chef Edward Lee. Watch as contenders race against the clock to create culinary masterpieces using secret ingredients, all while battling nerves and outdoing their rivals. Root for your favorite culinary duo and marvel at their sheer ingenuity in the kitchen. Prepare for edge-of-your-seat tension as contestants face off in a battle against the clock and mind-bending mystery ingredients. Featuring a diverse group of talented contestants, this challenge tests their grit with grueling challenges and surprise twists. With high stakes and a dash of drama, you won’t want to miss a moment.

34 AKFCF Quarterly Fall 2024

TRADE SHOW DAY 1 - WELCOME RECEPTION IN THE TRADE SHOW-COUNTRY ICONS SUNDAY, MARCH 23, 5:00 – 7:00 P.M. You’re a Country Icon! Step right up to the most iconic cocktail and appetizer reception of the year, where the spirit of country legends comes alive! Imagine sipping on a ‘Johnny Cash Smash’ or a ‘Dolly Parton Sparkler’ while nibbling on delectable bites that sing the flavors of the South. As you mingle the exhibits with our valued vendor partners and fellow trade show attendees, the twang of guitars and the soulful melodies of country classics will play in the background (not too loud, we promise!). Don’t miss this chance to don your cowboy boots, flaunt your rhinestones, and embody your favorite country icon. This isn’t just a reception; it’s a journey through the heart of country music, a tribute to the stars who’ve made us tap our feet and sing our hearts out. So, mark your calendars, pick out your best country attire, and get ready to toast to the legends that echo through the halls of music history!

DAY 2-KFCHIC RECEPTION IN THE TRADE SHOW MONDAY, MARCH 24, 4:00 PM – 6:00 PM It’s KFChic! This is the most finger-lickin’ happy hour this side of the trade show!

Get ready to strut your stuff in red, white, or black, and embrace the “KFC Chic” theme that’s as bold and classic as the flavors we adore. Join us for an evening where the clink of glasses harmonizes with lively chatter, and the air is as spicy as our secret blend of herbs and spices. Whether you’re a drumstick diva or a wingman extraordinaire, this is your chance to mingle with industry leaders and innovators and indulge in the spirit of good company and great times. This is not just a reception; it’s a celebration of heritage, taste, and style. Don’t miss out on the happiest hour where business meets pleasure, and fashion meets flavor. Dress to impress, and let’s make this party the talk of the trade show!

DAY 3-LUNCH IN THE TRADE SHOW TUESDAY, MARCH 25, 12:30 P.M. – 2:30 P.M. Seize the final chance to mingle with our exhibitors at the trade show’s concluding luncheon! This is your golden opportunity to connect with leading vendors, explore groundbreaking products, and forge valuable partnerships. As you savor a sumptuous meal, let the vibrant atmosphere enhance your networking experience. Don’t miss out on this unique blend of culinary delights and professional engagement — it’s the perfect recipe for success! Join us for an unforgettable afternoon of connections and cuisine at the trade show’s grand finale.

Fall 2024 AKFCF Quarterly 35

‘Share Your Story’ PAST PRESIDENTS SHARE THEIR STORIES DAVID NEAL (1996-1997) Why did you get involved in the AKFCF? I got involved in AKFCF because of my “basic training” having served on different committees within the SEKFCFA, including different executive committees as well as the KFC Purchasing Co-op, and the NFAC. And finally, AKFCF … you know, 2nd VP, 1st VP, then President…wahoo!

What has it meant to you as a business owner to have the Association’s support and involvement? I have had the support of all KFC franchisees, including Kevin Schlutz, for many years following my AKFCF Presidency. And honestly, I have been very proud to include the AKFCF in my business communications and various community business meetings. What an honor to share the Colonel’s Hard Way of doing business and his success routines by simply shaking hands, keeping promises, care and recognition for all team members, participating in community activities, and also his promise to exceed every customers expectations!

What is your viewpoint of the current/future of the Association? Like our life cycle, the AKFCF will continue to evolve and change to serve the interests of all KFC franchisees, including protecting our 1976 franchisee agreement and including single-store franchisees and the multi-unit structured franchisees and support our franchisor. Today, it happens to be Yum! But tomorrow?

It is important for the AKFCF to share their voice for all franchisees to hear and understand what the challenges are today and tomorrow, and “yes” we hear your voice too! How can we better serve you?

36 AKFCF Quarterly Fall 2024

KEVIN SCHLUTZ (1997-1998) Why did you get involved in the AKFCF? I was invited to join the Upper Midwest Board of Directors in 1986 and offered the opportunity to be a regional representative to the then QSC Committee, which later became the OEC. My father had been involved for some time and so I jumped at the chance to become more involved.

What has it meant to you as a business owner to have the Association’s support and involvement? The AKFCF has meant enough for me to volunteer many hours of my time over the last 38 years on many different boards and committees to protect and defend the KFC Family and our own family’s business.

What is your viewpoint of the current/future of the Association? During the good relationships with KFCC and the bad, the AKFCF has been critical to maintaining our rights and financial wellbeing. I believe in the current environment, when so many of the LT members are not familiar with the domestic markets, the AKFCF’s involvement in every facet of our business is as crucial as it’s ever been, working side by side with the NCAC and the KFC NPC. Many uninvolved franchisees have no idea the hardships and issues that have been avoided through the advocacy of the AKFCF and our legal counsel.

LARRY STARKEY (2013-2014) Why did you get involved in the AKFCF? I originally got involved as a result of my work with the Northeast Region. I really enjoyed serving my fellow franchisees, and the AKFCF gave me the

opportunity to extend that reach. I will never forget my year as president and how it stretched me in ways I never could have imagined.

effectiveness of the AKFCF is an outcome of the collective people, and their varying experiences, who serve. The benefits of serving multiply the longer I have stayed involved.

What has it meant to you as a business owner to have the Association’s support and involvement?

I’m not sure I would be in this business if it wasn’t for the connections I have within the AKFCF. The support, the companionship, and the counsel is invaluable to me.

What has it meant to you as a business owner to have the Association’s support and involvement? In many ways, the support and involvement of the Association in my business has given me invaluable access to knowledge, experience, encouragement, and honest feedback. It has given me confidence and courage in running my business.

What is your viewpoint of the current/future of the Association? The AKFCF will always be a valuable place for franchisees.

JIM MCKENZIE (2019-2020) Why did you get involved in the AKFCF? A basic belief for me is “You always get back the amount you invest.” This has proven true for my decision to serve/get involved with the AKFCF. I have received significantly more than I have given. The power and

E SELL-SID Y R ADVISO

What is your viewpoint of the current/future of the Association?

While we stand on the shoulders of many great people who have served in this Association, our continued effectiveness, strength, and benefits will only continue if we continue serving collectively. Our strength comes from the collective diversity of our individual and unique backgrounds, experiences, and perspectives. We need to continue developing the next era of leaders within the Association.

Do you have a plan for the future of your business?

BUY-SIDE ADVISOR Y

It is common to have a financial advisor/planner. However, many business owners do not have a plan for the future of (possibly) their largest asset.

• Succession Planning • Buying New Assets • Divesting Current Holdings

• NDA can help you plan the future of your business!

CAPITAL RAISES

• NDA understands the baseline value of your KFC business assets.

• NDA can help you plan for what’s next:

WWW.NDAINC.NET

Derek Diachenko

502-495-2262 derekd@ndainc.net

• NDA is ready when you are to bring the future of your business into an objective focus!

Mitch Rue

502-618-4896 mitchr@ndainc.net

John Pinar

502-552-6991 johnp@ndainc.net

ACCURAT E VALUATIO NS

Nick Diachenko

502-495-2345 nickd@ndainc.net

Fall 2024 AKFCF Quarterly 37

‘Share Your Story’ SEE MUSIC CITY!

Nashville is one of our favorite destinations. For country fans, outdoor enthusiasts, and foodies alike, a trip to Nashville is the ultimate pilgrimage. Since the 1920s, the city has been attracting musicians who have taken the country genre from the “hillbilly music” of the early 20th century to the slick “Nashville Sound” of the 1960s, the punk-tinged alt-country of the 1990s, and the heartfelt indie troubadours of today. In addition to the Opry, Nashville’s musical attractions range from the Country Music Hall of Fame to recording artist and producer Jack White’s niche record label.

The Hall of Fame in downtown Nashville traces the history of the genre, whereas museums dedicated to Johnny Cash, George Jones, and Willie Nelson delve into their personal stories.

Of course, the music scene is as vibrant as ever. Every day, the neon lights of Lower Broadway draw crowds of grinning music lovers into its rumbling honkytonks, while just to the south the vast, undulating roof of Music City Center imprints a giant guitar shape onto the skyline.

Another reason Nashville is hot: a half-dozen flourishing neighborhoods packed with unique shops, indie coffeehouses, innovative bakeries, new breweries and distilleries, and a surprising number of bright murals ready to provide a backdrop for your selfie. East

38 AKFCF Quarterly Fall 2024

Nashville is home to the city’s artisan scene, while 12th Ave S brings the shoppers with its stylish boutiques, vintage collections, and gift shops. A sophisticated array of restaurants fills the Gulch, and people-watchers pack out patios in Hillsboro Village. Each neighborhood has a distinct personality, but they’re linked by a common commitment to Southern hospitality.

If you need a break from the Broadway shenanigans, step outside for natural distractions aplenty. An ever-growing network of pedestrian and bike-friendly greenways links Nashville’s city parks, which unfurl over rolling hills and lush landscapes.

B-Cycle bike-rental stations are conveniently placed at greenway trailheads. Nature and outdoor centers inside the larger parks offer kid-friendly activities and nature walks. In total, the city’s park system sprawls across more than 12,000 acres in 108 parks, with 19 greenways. Kayaking and canoeing trips on the gentle Harpeth River are also well-suited to families.

Or just stay on-site at the Gaylord Opryland, which offers numerous bars and restaurants, a water park, and more (visit www. gaylordopryland.com for more details). Whatever you choose to do, we know you will find it to be spectacular. Come on y’all; take a ride with us to Nashville! Go to www.akfcf.com to register for the 2025 Convention. n

REGISTRATION

You can register online at www.akfcf.com. Register on or before November 30 to receive the early bird discount.

The Convention will take place at the Gaylord Opryland Resort and Convention Center. The group room rate is $239 plus a $20 resort fee and taxes. The housing deadline is February 27, 2025.

In an era when everyone is tired of being talked at and sold to, people crave more genuine connections with brands. They want to know what brands care about, how they do business, who is behind the brand, and more. They want authenticity, honesty, and transparency — the core ingredients of a strong relationship. But how can we communicate these things? By telling your story, the KFC story, and our story.

HOTEL INFORMATION: Gaylord Opryland Resort and Convention Center 2800 Opryland Drive, Nashville, TN 37214 You know it; you love it. The Gaylord Opryland Resort and Convention Center features amenities galore for the entire family, from a water park and pools, to a spa and 18 great restaurants. Plus, you are just steps away from the historic Grand Ole Opry and the Opry Mills Shopping Center.

The group room rate is $239 plus a $20 resort fee and taxes. The housing deadline is February 27, 2025.

Fall 2024 AKFCF Quarterly 39

RSCS MEMBER PROGRAMS

BUCKETS OF BENEFITS WITH ADP

By Mark Chrisman

I

n this column, we are serving you the numerous ways ADP is committed to supporting your success. As your trusted partner, ADP offers a comprehensive suite of solutions designed to meet your unique needs, from payroll management to full employee benefits and beyond.

• Renegotiated pricing models • Dedicated teams built for your success: – Implementation team – Client success executive Client services and product teams

Managing payroll can be complex, but with ADP, it doesn’t have to be. ADP has payroll solutions designed to ensure accuracy and compliance, giving you peace of mind.

• Easy integration with third-party technology like: – Delaget – DailyPay • Unrivaled scalable suite of solutions • ADP’s Marketplace gives you access to HR solutions that simply and securely connect and share data with your ADP platform • Industry-recognized security safeguards help protect data and information from loss, misuse, unauthorized access, and alteration.

The value ADP brings Managing payroll can be complex, but with ADP, it doesn’t have to be. ADP has payroll solutions designed to ensure accuracy and compliance, giving you peace of mind.

40 AKFCF Quarterly Fall 2024

Additionally, there is a range of employee benefits that help you attract and retain top talent, ensuring your team remains motivated and productive. Below are just some of our menu options:

Be ready for the next anything with ADP Assist Discover the power of ADP Assist, our advanced AI offering that streamlines HR processes, improves efficiency, and enhances decision-making. With ADP Assist, you can focus more on your business and less on administrative tasks. ADP Assist helps you with the following: • Save time and make informed decisions by delivering the right information.

• Power the right data, right when you need it.

• Ensure employees are paid accurately and on time with personalized nudges at key moments.

• Receive insights and answer questions about missing tax registrations.

Why scale matters Our solutions are tailored to grow with you, providing the same level of excellence and reliability no matter the size of your operation.

Whether you’re a small franchise or part of a large enterprise, ADP has the scale and flexibility to support your business.

Our solutions are tailored to grow with

you, providing the same level of excellence and reliability no matter the size of your operation.

• +40,000 Franchisees trust ADP • Insight from 40 million workers in 140 countries • HR Industry’s largest workforce dataset • Dedicated Implementation and Service Model for QSRs For more information, you can reach out to: Josh Fow, ADP Franchise Director, at 502.890.8916, Josh.Fow@adp.com, or Ron Hooker, ADP Sales Executive, at 412.397.9414, or Ron.Hooker@adp.com. n

Our solutions are tailored to grow with you, providing the same level of excellence and reliability no matter the size of your operation.

Fall 2024 AKFCF Quarterly 41

KFC FOUNDATION

FIGHT HUNGER IN YOUR COMMUNITY THROUGH THE HARVEST PROGRAM

By Liz Gulick, KFC Foundation Communication Manager

M

ore than 34 million people in the United States, including 9 million children, are food insecure. Harvest is KFC’s collective effort to reduce food waste and eliminate hunger in our communities. KFC restaurants team up with local hunger relief organizations to safely donate unsold, surplus food, such as chicken, biscuits, and hot sides, to help feed those in need.

With minimal effort from restaurants, participation in Harvest can result in local recognition for your assistance and higher team morale for giving back to the community. As a bonus, these food donations provide an average of $1,000 in income tax savings per restaurant to KFCC and eligible franchisees and licensees.

Since 1999, KFC and its participating franchisees have donated 90 million meals to

42 AKFCF Quarterly Fall 2024

4,100+ hunger relief non-profits across the United States!

25 years | 90 million meals | 4,100 non-profit partners | $42 million in tax savings Joan Bowling has been a KFC franchisee with Dunn & Bowling since 2009. Her restaurants were early adopters of the Harvest program, and the organization has used it to give back to their communities for the last 15+ years — donating more than 90,000 pounds of food to local hunger relief organizations.

“Partnering with Harvest has so many benefits,” says Bowling. “One of the main things that made me think about getting our franchise involved came from a discussion at my church where they talked about how restaurants regularly throw away good, edible food nightly. This opened my eyes tremendously, and I wanted to ensure our restaurants did better for our community.”

The benefits go beyond the community.

Restaurant culture and dynamics have changed over the years, according to Bowling. While the main responsibilities of the program fall on the restaurant managers, team members get engaged through the food donation process. Dunn & Bowling has even connected with some of their food recipient partners due to connections and recommendations from their restaurant employees. They are now able to support organizations that the employees are directly attached to, and the team members feel good knowing that they are providing good quality food to those who really need it.

When asked what advice she would give to those who haven’t signed up for Harvest or just getting started, Bowling says, “Become familiar with the organizations who receive donations. It enhances the

experience not only for the community but also for the restaurant team. The process of donating food is easy, and if you incorporate it into your nightly routine, it becomes a part of the culture of the restaurant. It feels so rewarding to provide someone with a quality meal instead of throwing it away!”

Jeff Bower’s restaurants began their partnership with the Harvest program a few years ago, stating that while attending the AKFCF Annual Convention, he heard other franchisees speak about the ease of donating and the benefits, which compelled him to start his food donation journey.

“Signing up the restaurants for Harvest has been fantastic,” says Bower. “Initially, I decided to have one of my restaurants join the Harvest program because, from a business aspect, it helped with different product-related costs and the procedures set up made it easy to gather the food for the organizations. What I didn’t know was the benefit it would have within the community, which prompted me to get my other locations involved as well.”

According to Bower, the benefits of helping provide aid to the community are clear, and while participating requires a few extra steps at opening and closing, everything became second nature to his restaurant teams and the

benefits far outweigh any extra steps. When asked what advice he would give to those who haven’t signed up for Harvest, Bower responded with two simple words, “Why not?”

He added, “Every night we would throw food away — from biscuits to our sides and chicken. Someone could benefit from these meals.

Is your dumpster really that hungry? Working with the Harvest program has been seamless, making giving back to our community more than just something we should do, but what we want and need to do.”

Start donating food through Harvest Right now, about 45 percent of KFC restaurants participate in Harvest — which means 55 percent of restaurants are throwing away safe, unsold food daily instead of donating it to people in need. Contact the Harvest Support Center (HSC) at 800.831.8161, or email KFC’s Harvest representative, John Pacitti, at john.pacitti@foodtodonate.com to get started with Harvest today. John will work with you to identify and qualify the appropriate local, non-profit charitable agency to pick up food donations from your restaurant.

Reduce food waste. Fight hunger.

Increase community involvement. Build brand loyalty. Save on taxes. Harvest is a win-win for everyone! n

Since 1999, KFC and its participating franchisees have donated 90 million meals to 4,100+ hunger relief nonprofits across the United States!

Fall 2024 AKFCF Quarterly 43

EDUCATION COMMITTEE REPORT

FINDING AND FILLING THE GAPS IN TRAINING

By William Ford

I

wanted to take this opportunity to tell you about your AKFCF Education Committee. We are made up of several members that represent franchisees from across the country with nearly every AKFCF region represented. We have single-store operators, large operators, and a good mix of HR and training backgrounds. All of us are volunteers and work within my budget of one candy bar each on an annual basis. It’s a lot of work, and I can’t express how thankful I am to each of them for their time, effort, and commitment.

Throughout the year, we meet virtually to discuss resources to train and develop you, our fellow AKFCF members. Often, we can simply guide members to existing tools through Team KFC, Learning Zone, or Learning Nuggets. We also can recommend other members for their expertise.

Many franchisees have amazing processes that work and they are always willing to share their best practices.

Where we find gaps in training or existing tools, we work together to create them. An assigned team leader will solicit partners to include great operators for their subject matter expertise. We bring in KFCC functional experts as well. This “sub team” will meet routinely to develop content that addresses the current knowledge gaps. The process is collaborative and the end goal is to develop content that can be presented in an engaging format that aids in retention, keeps it simple, and is repeatable.

Using this same process, we tackle our biggest annual activity, developing workshops for the Annual Convention and regional events. We begin looking at the next year just a few weeks after Convention ends. We would start sooner but usually need at least a few weeks to recover!

44 AKFCF Quarterly Fall 2024

Over the past two years, we have worked hard to continually improve the content in the AKFCF Annual Convention.

Over the past two years, we have worked hard to continually improve the content in the AKFCF Annual Convention. We strive to ensure it is timely, addresses systemic needs, and is collaborative with KFCC and franchisees. A lot of work goes into developing the content. Heavy focus is placed on practicality and reality in the field. Additionally, we are selecting and preparing speakers who are both engaging and comfortable speaking in front of large groups. We appreciate constructive feedback regarding what we did well, where we can improve, and we want to hear the great ideas you have for future content.

Please keep in mind, the “one candy bar” salary when you provide your feedback. All the work has been donated time from the volunteers who are serving you in addition to their normal roles of running great restaurants.

This year, we are preparing some great content around our Above Restaurant Leaders. All of us either are an ARL or employ an ARL. As a single-store operator, you are everything including your own ARL. Once you move to multi-unit, you

will grow to needing levels of leadership above the restaurant level to support your in-store operators. Either way, the role and duties of an ARL are different than the day-to-day role of an RGM. We know there are gaps in the consistency of tools and processes that help these people thrive in their duties.

Join us in workshops that will address simple daily/weekly/monthly planning concepts. We will share the systems, processes, and tools best aligned for every ARL to maximize their efficiency and time management. Basically, which tool to use, how often to use it, and the simple process of calendaring these events to keep your operation at peak performance. We also are excited to welcome our special guest speaker, former KFCC COO, Monica Rothgery.

Monica will tell her story with her “Lessons From The Drive-Thru” and highlight the leadership skills and traits she gained as she progressed in her career.

I again would like to thank the team that supports me to best support you. I am including their name and email contact below so you know who they are. Please reach out to any of us if you have great content you would like to share, ideas you would like us to pursue, or just to thank them for the work they do behind the scenes to keep us learning together. n • Ben Benson – bbenson@tastykfc.com • Shawn Brady – shawnb@harmans.com • Brenda Flood – bflood@kbpbrands.com • Bill Ford – Wford@srgmgmt.com • Kristin Cole Orton – korton@celebrationrg.com • Nanette Walker – chicky21@netmgmt.net • Dan Whitney – dwhitney@defoods.com

REGIONAL SHORT

THE NORTHEAST IS ‘MOVING FORWARD TOGETHER’

By Tony Cameron

H

ello franchisees and greetings from the Northeast. It has been a long-standing practice of the Northeast Franchisee Association to add a motto to our logo. For the past 18 years, we used “Leading the Way,” inspired by the New England Minutemen of the Revolutionary War. As the KFCNEFA, we always took pride in being at the forefront of all things new and bold at KFC. From boldly having the first African American Franchisee in the system, Don Lopes, to leading the KFC system with more than 100 KFC/TB units in our region. Without a doubt the most challenging restaurants to run, the Northeast franchisees took on the challenge and won. Every year in May, we challenge our franchisees to invest in their RGM’s and ASL’s by participating in our Spring RGM meetings. We are “Leading the Way” and challenging the other regions to follow our lead.

As the Greek Philosopher Heraclitus said, “The only constant in life is change.”

With that, I am pleased to announce that the new motto for the KFC Northeast Region is (drum roll please), “Moving Forward Together.” The motto was coined at the Northeast planning meeting in January of 2023 and inspired by Northeast Immediate Past President Carl Coulter. He challenged us to get outside of our four walls and talk to each other again. In doing so, we will be able to share best demonstrated practices as well as evaluate what we have tried that does not work. As our franchisees in the region grow older and retire or sell their restaurants, it is incumbent on those franchisees who are left to lean on each other more now than ever.

There has never been a time that it was more critical that franchisees move forward together as one collective voice.

As the great founding father Benjamin Franklin said, “We must all hang together, or most assuredly we shall all hang separately.” There has never been a time that it was more critical that franchisees move forward together as one collective voice.

Current Northeast President Eric Cromwell boldly stated that he wanted to continue the motto during his presidency, and I have a feeling First Vice President Dan Whitney feels the same way. As we go forward into this uncertain future, one thing is for certain: the KFC Northeast Franchisee Association will be “Moving Forward Together.” n

Fall 2024 AKFCF Quarterly 45

REGIONAL SHORT

NORTHWEST UPDATE

By Shannon Prendiville

T

he NW KFC Franchisee Association covers a large geographic area of Northern California, Oregon, Washington, Alaska, Idaho, Montana, Utah, Nevada, and Wyoming. There are many challenges specific to each area, but one thing seems to run throughout: Whatever starts in California will eventually ripple out to other areas and the nation. The last year has brought a tremendous challenge to our California franchisees with the passage of California AB-1228 bringing a mandatory, $20 minimum hourly wage to fast food restaurants.

Our NW President, Jeremy Dimick of Harman Management, outlines below what California restaurants are up against and how KFC franchisees are trying to minimize the negative outcomes on their businesses. First, what is CA AB-1228 all about?

Coverage and Exemptions under AB 1228 AB-1228 applies to national fast-food chains that meet specific criteria: 1. Operate over 60 establishments nationally under a unified brand.

2. Primarily serve food and beverages for immediate consumption.

3. Offer minimal or no table service.

Whatever starts in California will eventually ripple out to other areas and the nation. The last year has brought a tremendous challenge to our California franchisees with the passage of California AB-1228 bringing a mandatory, $20 minimum hourly wage to fast food restaurants.

46 AKFCF Quarterly Fall 2024

4. Typically require customers to order and pay before eating.

Exemptions are outlined for: 1. Restaurants with a bakery selling bread as a main item.

2. Restaurants within grocery establishments.

3. Restaurants in airports, hotels, event centers, theme parks, museums, and select other venues.

The law, effective since Apr. 1, 2024, has businesses in California fighting to keep their doors open. Unfortunately, our KFC Franchisee Family isn’t immune to the negative impacts of this legislation.

Impacts experienced so far: • Increase of roughly 2-percent employee labor.

• Increased P&L costs due to vendors passing on costs to merchants.

• Value-oriented menu becomes a “must” as households struggle to balance additional expenses due to wage inflation.

• As a result, restaurant check average is down an estimated $2 versus prior year.

• Potential for an additional wage increase of 3.5 percent annually, or the rate of change in consumer price index.

Second, what have CA KFC franchisees done to try and mitigate the impacts?

In October 2023, a minimum wage task force was formed with 11 KFCC representatives and a group of eight franchisees from Southern and Northern California. We meet every other Friday for an hour and a half. We follow up that call in the afternoon with a franchisee-only call to communicate changes and updates to franchisees.

Some of the things we have done in the past year include packaging changes, menu reconstruct, new product sourcing, creative advertising, labor saving initiatives, labor light equipment testing,

Advertise in the AKFCF Quarterly eNews!

Four-time advertisers can reach franchisees with more frequency with your promotions and deals via the monthly AKFCF eNewsletter.

meal break attestation implementation. We also are preparing to test a handful of new products.

At this time, Jeremy would like to thank everyone who has put in their time to serve this council and worked hard on behalf of all our Franchisee Family in California: Jeff Baker, Jamie Jackson, Shamez Jivraj, Justin Stewart, Shawn Shariff, and Raziel Valiente.

There are too many KFCC partners to mention, but I want to give a special shout out to Jonathan Ojany for leading the call and Mike Wesley for being our marketing “go to” for everything and everywhere. Also, Brittany Buzick for all the legal support and Pradeep Ramakrishnan for IT/Digital support. Lastly, our great friends and partners at the RSCS: Sara Fisher and Kirstin Schmidt.

Hope to see you at our NW meeting this coming year!

2025 Spring Seminar at the Horseshoe Casino & Hotel in Las ­Vegas, from April 28-29, 2025. Please visit our website at nwkfc. com for meeting information and registration links.

n

NW Meetings 2024 Spring Seminar-Last May the NW & SW regions combined efforts and met in Las Vegas for our 2024 Spring Seminar. Over this two-day event at the Flamingo Hotel, we recognized our teams, attended workshops, met with our vendor partners, and generally had a great time. Here’s the proof!

To learn more about advertising opportunities, contact Jamie Ryan at jamie@newsouthpublishing.net, 770.500.5112.

Fall 2024 AKFCF Quarterly 47

EXECUTIVE DIRECTOR UPDATE

TOP-TO-TOP MEETING UPDATE

By Kelly Rodenberg

O

ne of the AKFCF Strategic Plan’s critical priorities is to maintain a healthy relationship with the KFCC leadership team. Each year, the AKFCF Executive Committee and the KFCC LT have committed to an in-person meeting. This year, we met in early August, and we extended the invitation to the regional presidents.

Since the KFCC LT is constantly changing, Ron Gardner started the meeting with a brief history of the AKFCF and the benefits we provide as an Association. Each regional president then provided reports that included the following:

Many thanks to Tarun and his team for participating in the Top-to-Top meeting. We gained valuable insight and want to continue building a robust partnership.

• Name and background (how long in system, how long on regional board, 1st, 2nd, or 3rd generation history; how many units, etc.).

• The history and geography of the region (what year they started and what states they cover).

• The number of franchisees and the number of restaurants each has in their region.

• How often they meet as a region (including convention and super-regional meetings, as well as any separate RGM or Board meetings).

• How many members are on their board (including state reps if they use them).

• How each region communicates with its members.

• What, if anything, does the region do for RGM support.

• Who the region has elected to the RSCS Board.

• Who represents the region on the NCAC (and what other members participate on NCAC subcommittees).

• Brief narrative on what makes their region unique and their goals for their presidency.

Many thanks to Tarun and his team for participating in the Top-to-Top meeting. We gained valuable insight and want to continue building a robust part-

48 AKFCF Quarterly Fall 2024

nership. Below are a few specific asks to Tarun and his team that we felt came out of the meeting which would affect our membership in a positive way.

1. We believe that getting both the AKFCF President and KFCC President on the Town Hall calls to do a joint kick-off would go a long way with visibility and building engagement.

2. We spoke about getting an email chain started with the regional presidents, which we think is a promising idea. Going forward, ‘who’ should be the Regions’ point of contact when asking about things like joining them for meetings, etc.

3. Joint emails and communication from AKFCF and KFCC. We could assist with emails and texts going out to the franchisees and include important messages in our monthly eNews and AKFCF Quarterly magazine.

4. There is a consensus that franchisees are not getting the support they need from OPs leaders. Lots of emails are sent out, but when franchisees come back with specific questions, those questions can’t be answered. We feel like it would strengthen the brand and the system if we had more Ops support. There are several ways to do this, but one idea was to have a quarterly meeting or call every two months in which the Ops leaders lead the call about initiatives.

And we think this would be best served going through the regions so that it will get filtered down to the right people.

We look forward to working with Tarun and the leadership team on these prominent issues and will keep doing our best to bring the concerns of the AKFCF membership forward. 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

BANDING TOGETHER

By Ronald K. Gardner, Esq.

W

ith luck, you’ve seen our new edgier ad campaign in which KFC declares that the chicken tender wars have begun!

For those of you who haven’t seen it, the ad depicts an army of KFC warriors armed and ready to take on the competition. In my mind, this ad is emblematic of the approach that we are trying to take together to combat the difficult issues that we are all facing in today’s marketplace.

At last month’s NCAC meeting, we focused a significant amount of time not only on the “what” of those things that need to be done, but the “how.”

As far as the how is concerned, we all recognized the critical importance that everyone plays in this “team” of warriors that we are as a KFC system — the importance of corporate leadership and vision; the importance of vendor partners there who

50 AKFCF Quarterly Fall 2024

help make it possible for the vision to be effectively and profitably executed upon; and the franchisees, both in their input (through the NCAC and otherwise), and through the direct leadership each of you provide to the members of your teams, our “boots on the ground” charged with the operational execution of the vision that is created. Your contribution is critical — both through the way you run your own business and through the way your teams deliver on our promise to the customers at the store level.

This is a multifaceted struggle with many fronts. Those fronts include battles that we have to fight both externally and internally.

Externally, we need to do a better job as a system in paying attention to consumer trends and being amenable to learning the lessons that those trends are teaching us.

Indeed, these trends have shifted a signifi-

cant amount of our marketing dollars this year to boneless products, including saucy nuggets and, of course now, Original Recipe tenders. Those trends are also what are driving KFCC to test different menu mixes, sauces, and beverages. While we have just started to explore the tip of the iceberg with respect to these trends, it is critical that we keep our foot on the gas, and, in fact, even accelerate these efforts as we head into the future.

We also are all mindful of the perception that exists in the minds of today’s consumers about KFC. We must find ways to continue to remain relevant, top of mind, and, at times, even a little bit edgy. Only then will the perception of our brand become as robust as it once was.

Internally, we also have many battles to fight.

The good news is that both KFCC and your franchisee leaders are committed to improving sales and all parts of the business, including our relationship with one another.

At the store level, every individual who touches the system needs to be focused on making those operations as flawless and efficient as possible. We need to remain focused on ways to accelerate ops simplification, to make the jobs of the RGM and team managers easier, all while avoiding compromise in providing a spectacular guest experience.

But people need to come in the door to have a good guest experience and that is where the marketing challenges lie. By developing a more robust testing and innovation pipeline, we hope to increase the number of transactions occurring at the store level, thereby increasing everyone’s sales and profitability. And to do this, we know our decision-making needs to be nimble, with both franchisees and corporate partners working together to make faster “yes or no” decisions based on predetermined success metrics.

Complete transparency on both sides of the franchise relationship is what will allow us to continue to trust one another as we move into this new world.

The good news is that both KFCC and your franchisee leaders are committed to improving sales and all parts of the business, including our relationship with one another. Earlier in this publication you read about our top-to-top meeting between the KFC LT and the AKFCF Executive Committee and Regional Presidents. On the NCAC side, we have made a mutual commitment to each other to remain laser focused on decisions that will make an

immediate difference in your business.

That includes the rapid development of a marketing calendar that stretches out between one and two years, allowing for robust testing, fulsome conversations about the pros and cons of different options, and a sequencing that should help us increase trans and profitability.

But to make this happen, we need everyone rowing the proverbial boat in the same direction. Neither the corporation nor franchisee leadership can do this alone.

Every franchisee, ARL, RGM, and team member who is reading this article needs to be committed to ensuring that every guest is treated properly and getting a hot, fresh meal every time they come in, irrespective of what it is that they order. Franchisees need to ensure that their teams are trained, motivated, and well recognized for making the Colonel and all the rest of us proud.

There is no way any one of us can do this alone. Indeed, it is my view that we cannot even do it in small segments. It is one for all, and all for one at this point. It is my hope that you view it the same way, and that you will join us in this epic battle to win. n

Ad index 11

Auspex Capital

39

Bama Companies

18

Café Valley Bakery

23

Custom Seating, Inc.

C3

Dr. Pepper Snapple Group

5

Gycor International

33

KitchenBrains

29

KFC Foundation

19

Koch Foods

C2

Magnesol

35

Mulligan Funding, LLC

37

NDA, Inc.

7

Pacific Premier Franchise Corporation

1

Partstown

3

PepsiCo

27

Pilgrim’s

8,9, 41

Restaurant Supply Chain Solutions

13

Restaurant Technologies

15

Welbilt

17

Western Governors University

C4

Winston Industries

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.

Fall 2024 AKFCF Quarterly 51

LOOKING BACK

52 AKFCF Quarterly Fall 2024

Cluckin’ Great Chicken!

Better Chicken Boosts Your ROI!

CVap® HOV7-14SP Holding Cabinet

CVap HOV7-05SP Holding Cabinet

KFCFryers.com

Collectramatic® PF56 Pressure Fryer

Collectramatic PF56 Pressure Fryer

Steve Wildrick swildrick@winstonind.com 502.762.7122

Winston F662T Shortening Filter