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QUARTERLY

Association of Kentucky Fried Chicken Franchisees, Inc.

The AKFCF 2021

Winter 2020

Annual Convention

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CONTENTS

AKFCF QUARTERLY WINTER 2020

FEATURES GAC Report: Beyond 270 16 By Amy Agenbroad On Saturday, Nov. 7, 2020, Former Vice President Joe Biden was announced as the projected winner of the 2020 presidential race after arguably the most divided election in U.S. history.

Convention Preview: Going Virtual For 2021 20 By Kelly Rodenberg and Cory Sekine-Pettite An update on planning for the 2021 AKFCF Annual Convention, and a look back at past events. BETTER COMMUNICATION THROUGH IMPROVED DESIGN 30 By Jason Kunz The objective of Speaking Socially was to build a new AKFCF website that better emulates your family values and helps fulfill the mission to AKFCF members. VOLUNTEERS 36 AKFCF By Cory Sekine-Pettite KFC franchisees are nothing if not dedicated stewards of philanthropy and volunteering. Read some of their stories. OF THE PEOPLE 40 POWER By Kelly Rodenberg AKFCF President Brandon Robertson has chosen “Power of the People” as the theme for his presidential term and the 2021 Annual Convention. Read our latest profiles of partners who are working with KFC toward this common goal.

36 DEPARTMENTS 4 From the Editor 6 President’s Report 10 NCAC Report 12 In the News 44 RSCS Member Programs 46 KFC Foundation 48 Regional Short 50 Communications & Beverages Committee Reports 52 Executive Director Update 54 Legal Update By Ron Gardner 56 Looking Back

On the Cover: As the COVID-19 pandemic continues and prevents us from meeting in large groups, we are reminded that things are best when we come together as a KFC family. We unite in the stories, the pictures, and in the memories to celebrate what we all have in common. Read more on p. 20.

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FROM THE EDITOR

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

BE GRATEFUL By Michelle Hunt

n a year where it’s difficult to land on any emotion, I’ve settled on grateful. I am grateful for the brand that saw us through this unprecedented time. I am grateful every single day that we’ve managed to keep a family business alive and thriving for over 50 years. I am grateful that it has provided for me and my family and allowed me to be present in their lives. I am grateful for our employees who take pride in their work and continue the grind day in and day out. I am grateful for technology, because it has kept us connected when we couldn’t be together, and it will bring us together virtually for our 2021 AKFCF Convention. Will I miss seeing everyone in person? Absolutely! I’ve really missed being in the same room with my KFC family this year. Check out the Convention Preview, starting on page 20, where we briefly outline what’s to come, but the most wonderful part of the article is several past presidents sharing memories of Conventions past. One that didn’t arrive before press time, but I want to take the time to mention is the integral role past president Bill Allen played in establishing the AKFCF Conventions. It was during his presidency that the AKFCF took on the annual meeting of KFC franchisees. He continued to assist on-site until just a few years ago. Thank you for your years of dedication to the KFC brand, Colonel Bill! Speaking of technology, our family even relied upon it for holiday gifts, giving our elder family members digital photo frames to keep up with all of us. It probably does take a photo montage to figure out what we’re all up to. From kids in college and high school to weddings, big birthdays, and upcoming graduations, there is a lot to keep straight. This is especially wonderful when we can’t be together; I’m just so grateful we can share our lives this way. The AKFCF family also has taken to technology to share updates. If you haven’t yet joined the AKFCF Facebook page, go do that! Our media partner Speaking Socially worked hard to bring us together on social media, and they fully redesigned the AKFCF website. Jason Kunz, from Speaking Socially, outlines that new website on page 30. This year has sidelined many things, but it has not curtailed the KFC family’s legacy of giving. Check out “Here To Serve And To Give Back” on page 36 for a couple of organizations doing big things during a global pandemic and other natural disasters. And finally, the latest installment of “Power of the People” on page 40 highlights franchisee family members and vendor partners. We all truly appreciate all the Power of the People honorees and the contributions they are making to our great brand. I would love to say see you at the Convention, but I will have to see you virtually at the 2021 AKFCF Convention. Stay tuned for more details on how our Convention Committee will be continuing to add great value in education, business know-how, vendor interaction, and fun — all from your computer screen! Have a wonderful holiday season and God bless. Warmest regards,

4 AKFCF Quarterly Winter 2020

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

AKFCF EDITORIAL TEAM

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

Brandon Robertson Michelle Hunt Julie Mantlo Debbie Newton Kevin Schlutz Kelly Rodenberg Jim McKenzie

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

FRANCHISEE EDITORS:

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

Copyright ©2020 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:

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9040 Roswell Road, Suite 210, Atlanta, GA 30350 Phone: 770.650.1102 President V ice President/Publisher Publishing Editor Art Director Advertising & Production Manager Account Executive Circulation Manager Accounting

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

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FROM THE PRESIDENT

PLANNING A VIRTUAL CONVENTION By Brandon Robertson

ts official: The 2021 AKFCF Annual Convention will — for the first time ever — be virtual. I don’t know about you, but I am getting tired of firsts. Do not get me wrong: I have spent my career challenging the status quo and embracing new challenges, but this is getting ridiculous. Despite the craziness, as I sit here a week before Thanksgiving, I have to say I have a lot more to be thankful for than disappointed about. My family is healthy and my children are doing well in college. Kelsey already has a job lined up and doesn’t graduate until May. My business is healthy. My friends are all healthy, and I get to work every day with the amazing people in the AKFCF to build an awesome virtual Convention! We are hard at work building an agenda and planning the 2021 virtual Convention now. You will be seeing more details soon

6 AKFCF Quarterly Winter 2020

on what a virtual Convention looks like. I can tell you we will make sure you hear from all of the stakeholders as usual, and get a complete update on all that is going on in the brand. KFCC is hard at work on many initiatives for 2021 and beyond, and the NCAC, RSCS and AKFCF are here to support them! Our cooperation with the brand during 2020/COVID-19 has yielded great success for all of us and promises to continue that success into 2021. We also are planning a fundraising event for the KFC Foundation. You will not want to miss it; and please remember that coleslaw changes lives. We should be very proud of the work they do and we should be working hard to make it bigger and better every year. We are planning another first for this Convention — we will be coming to you live from Louisville, Kentucky. It just makes good sense to be there given everything going on, so Traci and I will make the drive over and spend the week in Louisville. I chose “Power of the People” as my theme for the 2021 Convention because I have had so many people mentor and advise me during my time in the AKFCF. I would encourage each of you reading this article to always be looking for that person in your circle of influence that you can mentor in becoming more involved in our Association and brand. Seek out those individuals who are eager to learn and take time to get to know them. As you’re getting

to know them, you will quickly learn what their goals are and be able to coach them on what’s possible within the KFC system. Remember that sometimes the most important and easiest thing you can do for someone is introduce them to people they do not know. I remember being very intimidated when I walked into my first AKFCF board meeting reception and looked around the room to discover I only knew one person. I had only ever spent time around people in my region. By the end of that meeting, I had expanded my circle of KFC friends in ways I did not even realize at the time. We are constantly looking for the next leader to emerge and you can play an important role in giving that person the confidence they need to volunteer. There are so many opportunities for people to get involved in the AKFCF. We always need new people to serve on our regional boards, the RSCS, NCAC or one of its sub-committees, the GAC, and yes, even president of the AKFCF. I believe by the fall of 2021 we will be able to get back to a normal, in-person meeting schedule with our franchisees, corporate partners, and vendors. This will give opportunities to meet new people, and I encourage you to attend the social events at those meetings and identify and bring forward our next generation of leaders at the AKFCF. I remember when I was the new guy, sitting in a Convention audience near the back row thinking, “Wow, that guy is a franchisee like me; how did he get there and why would he want to do that?” The only reason I am serving as your president today is because of the great mentors I had along the way! n

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NCAC REPORT

KEEPING KFC TOP-OF-MIND WITH CONSUMERS

By Tom Broome, NCAC Vice Chair

During this pandemic, we have reduced our TV advertising to very low levels. However, we have been utilizing public relations more and more to communicate all the good things we are doing as a Brand and a franchise system. We asked our PR agency, Edelman, to give you some information about how our NCAC funds are being used to keep KFC top-of-mind, as well as how we see PR playing a role in the coming year. I hope you enjoy this article as much as I did!

s the COVID-19 pandemic surged across the world, it quickly became clear to Edelman that the impact on all industries would be both profound and long-lasting. Across the agency, we pivoted to solving immediate needs that guaranteed both short and long-term success for our clients, while also investing in new data development, intelligence expertise, and approaches that would continuously inform our strategy while reaching audiences in more meaningful, actionable ways. In a world forever changed by COVID-19, we must not only drive sales — we also must increase consumer trust in the companies we support. Edelman President and CEO, Richard Edelman, defines the evolution of PR strategy given this new reality as “Action Communications.” In utilizing Action Communications, our clients and their consumers will trust what we do because actions always speak louder than words. Given that 90 percent of Americans want brands to partner with government to fill

10 AKFCF Quarterly Winter 2020

in the gaps (Source: 2020 Edelman Trust Barometer Special Report: Brands And The Coronavirus, March 2020), and 53 percent believe brands have a responsibility to get involved in at least one social issue that does not directly impact their business (Source: 2019 Edelman Trust Barometer Special Report: In Brands We Trust), it was critical for Edelman and KFC to work together to implement Action Communications for KFC franchisees, consumers, and team members. We can describe Edelman’s theory of Action Communications with four insights: • First, our communications must follow meaningful actions. This means image and persuasion matter less than tangible commitments and accountability. The result is that our success will be measured not only by business impact, but also by societal improvements. • Second, our communications must be inside-out. This means the days of siloed communications for consumers, shareholders, and employees are over. The new way is multi-stakeholder, inside-out communications with employees as the top priority. • Third, our communications must be peer-to-peer and based on listening, not telling. This means we will go beyond communications that are transactional and one-way, moving to relationships that are built on mutuality and trust. For example, controlling the narrative is a futile endeavor. Broad community story development and validation is better — and smarter. • Finally, our communications must

be relatable and honest. Telling only good news is no longer sufficient. We need to offer a full picture based on facts and transparency; side effects included. Moreover, it’s our responsibility to help correct misinformation as a conduit of reliable information attributed to independent sources. There’s a special role for brands in taking on the important issues of the day, setting a higher standard for societal behavior. The Edelman team has utilized Action Communications for KFC since the beginning of the pandemic — and has continued to offer flexible, creative, ideas to align with our new reality. The culmination of this successful shift is a feature role in a Forbes article highlighting brands demonstrating their core values by positively impacting customers and employees during this unprecedented time. Because feeding and caring for its communities is at the core of KFC’s DNA, when the pandemic started and our country was in need, KFC was uniquely poised to make an impact in communities throughout the nation. Edelman helped KFC tell that story. Immediately, the Edelman team mobilized to provide streamlined and readily available communications to all stakeholders, including franchisees, customers, and restaurant team members. Edelman’s priority was to communicate that KFC increased and enhanced safety procedures across all its restaurants, while underscoring that these KFC restaurants remained open and available to serve customers.

At Edelman, we truly believe that the ways in which KFC has led with empathy, heart, and authenticity through each phase of the pandemic drove elevated levels of trust from customers, communities, and employees. Edelman also kicked off an ongoing goodwill strategy for KFC by announcing the donation of one million pieces of chicken by franchisees across the country — empowering them to provide meals to community organizations of their choice. KFC franchisees worked together quickly to support and celebrate their teams and communities, leveraging their scale to provide relief to frontline workers while also reminding consumers that KFC restaurants are locally owned and operated. This program was so well-received that it was repurposed in August to support the country’s educators — our nation’s new front-line workers as children returned to schools or learned remotely. Lastly, Edelman and KFC reached out to employees — always a critical communicator and driver of KFC messages — to conduct a survey that identified their pain points as the pandemic continued to surge. The results of the survey indicated that employees were most in need of grocery assistance, so KFC activated a Grocery Assistance Fund to directly support team members and honor them for their vital role in keeping America fed. KFC worked quickly and tirelessly to make one of the company’s biggest donations in its history and provide much-needed assistance to team members and franchisees all across the country. From an earned media standpoint, which is where Edelman’s value truly shines through, KFC enjoyed an increase in coverage. This led to

a higher share of voice and spikes in conversation coinciding with specific PR moments, compared to some of KFC’s direct competitors. It also helped sustain strong sales numbers, despite restaurants only providing carry-out, delivery, and drive-thru. According to industry data, KFC also outperformed other QSRs during this time. Edelman’s immediate and action-oriented work with KFC franchisees during the pandemic won an honorable mention in PR Week’s “Purpose” Award — and short-listed KFC for a Webby Award. Theodore Roosevelt, the 26th president of the United States, said, “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” In this context, Edelman will move into the future looking at PR as the communications modality that is ideal for action, not just image and perception. Companies and brands must lean strongly into the world’s problems and challenges. It’s not just about amplification anymore. Instead, it’s what is the problem that needs to be solved? What’s the strategy? What’s

the idea? And ultimately, how do we amplify it? While implementing Action Communications, Edelman and KFC’s future work together also will incorporate a new way to measure and quantify the impact of their communication strategies through Edelman’s new Data X Intelligence model. By utilizing better data and measurement strategies, Edelman will be able to bring to life bigger and more impactful ideas that drive KFC’s core values to the forefront — while connecting with consumers on a more personal level, driving increased trust, and ultimately boosting sales. We call this approach “Data with Empathy,” and we’re confident it results in communications that both move and inspire people. This approach drives real business impact too — from the language and imagery utilized to which influencers and spokespeople best tell your story and beyond. It enables an organization to change which stories to tell and where to tell them, identifying which messages will resonate most powerfully in each moment. At Edelman, we truly believe that the ways in which KFC has led with empathy, heart, and authenticity through each phase of the pandemic drove elevated levels of trust from customers, communities, and employees. This cresting wave of trust represents an unlimited opportunity for KFC to surge confidently forward as we all navigate our challenging and ever-shifting new world together. n

Winter 2020 AKFCF Quarterly 11

In the NEWS

HOW KFC U.S., AND OTHER YUM! RESTAURANTS TURNED SPARE CHANGE INTO MORE THAN $30 MILLION FOR CHARITY

his is a story of how the donation of a few pennies led to millions of dollars in college scholarships, education grants, food for hungry children, gas cards, and even natural disaster relief. It all has to do with scale. A few pennies alone won’t buy much, but when a 20-cent donation is multiplied by thousands of restaurants across the United States, the give-back potential proves enormous — especially when the act, known as “checkout charity,” is executed by the world’s largest restaurant company. It all started in December 2018 when Taco Bell and its foundation launched the Round Up program, asking guests if they’d like to round up their checks to the nearest dollar. The raised funds supported the its Live Más Scholarship and educational programs, and in 2019, the brand raised more than $20 million, in addition to $10 million it raised the previous year through two national, in-restaurant fundraisers. “Round Up was a completely new concept for us, and while we know it was going to impact how we fundraised, we didn’t know the level of support we’d have from our fans,” said Taco Bell Foundation Director Jennifer Bradbury. “It’s amazing to see the number of customers who are willing to donate their change to support youth education, and it has made a huge difference.” With the Round Up program in full effect by early 2020, Taco Bell was poised for a breakthrough fundraising year. Then, the COVID-19 pandemic hit, and quick-service restaurant dining rooms closed around the U.S. Taco Bell and its sibling brands, which were making moves to start Round Up programs of their own, had to act fast to ensure the communities they served were being taken care of during this time of uncertainty. Here’s how KFC did it. Helping the Kentucky Fried family By summer 2020, consumers had acquiesced that the COVID-19 pandemic would stick

12 AKFCF Quarterly Winter 2020

around for the foreseeable future and decided to social distance by staying home and shifting their spending online, which led to a national coin shortage. In turn, KFC U.S. implemented its Round Up program in more than 150 of its drivethrus in July, saving coins and giving back to its franchisees’ preferred charities as well as its frontline workers through the KFC Foundation. To date, Round Up has raised more than $28,000 for the KFC Foundation, which will go toward its KFC Family Fund program to provide financial assistance to team members facing unexpected hardships and crises. Plus, additional funds were raised for other nonprofits that KFC franchisees champion in their local communities. “Almost every restaurant has at least one, if not several, individuals who have benefited from a KFC Foundation program, so team members are really getting excited about asking customers to support their coworkers,” said KFC Foundation Managing Director Emma Horn. “Round Up means a lot.” The differences between its initiative and Taco Bell’s is that KFC’s is completely volun-

tary, so franchisees can opt in or out of the program. Plus, since one of its motivations is to help with the coin shortage, customers can only round up cash payments, not credit cards, although KFC U.S. Operations Associate Manager Clint Stickdorn, who managed the project, said the brand hopes to expand the program to its digital platforms in the future. “The best part is giving back to the employees, especially when you see the impact it’s had so far,” he said. “Our team members are frontline heroes, serving guests during the COVID crisis, and some of them have significant hardships. It’s nice to see how they’ve helped their communities and now their communities are able to give back.” Rounding up on the future With 2021 just around the corner, Yum! Brands is focused on more ways to give back in the future. “While this year has been full of so much uncertainty, we are inspired by our fans, franchise partners and the Taco Bell community as a whole for continuing to rally behind supporting youth education,” said

Tina Nguyen, Taco Bell Foundation executive director. “We are always looking for ways to evolve our Round Up program to make it even better. When giving back is as easy as rounding up your favorite Taco Bell order to the nearest dollar, it’s a win for everyone — especially the current and future scholars who will or are already changing the world with their innovations.” On the heels of its own success, KFC U.S. is examining ways to expand access to its credit/ debit card terminals, kiosks and e-commerce platforms. Meanwhile, The Habit Burger Grill will continue to support its long-term relationship with No Kid Hungry through Round Up and other programs. “Sure, it only seems like a few cents,” Bradbury said. “But we’re the world’s largest restaurant company, so just imagine how the world can change if more than a billion customers donate a few cents each year.” Source: Yum!

Condolences: Chester J. Jewula, 83, a resident of Frankfort, Illinois, passed away on October 8, 2020. He is survived by his loving family; wife Linda (nee Anderson) Jewula; children John (Kathy) Jewula, Karen Jewula, and Betty Burke; step children Lori Cerrato and Kari (Mark) Skorusa; grandchildren Julia and Cassidy Jewula, Nicolas and Anthony Cerrato, and Ashley, Gabriella, and Lily Skorusa; sisterin-laws Josephine Jewula and Suzanne Jewula, and many nieces and nephews. Chester was a KFC franchisee owner for more than 50 years, and a veteran of the U.S. Army where he was a member of the Army band playing the clarinet. Our deepest condolences to his family and friends.

Winter 2020 AKFCF Quarterly 13

In the NEWS

KFCC UNVEILS NEW RESTAURANT DESIGNS FOR GROWING CONTACTLESS ORDERING DEMAND

entucky Fried Chicken is going to look different in the very near future. The fast food chain’s restaurant-wide redesign is meant to limit person-to-person contact and bolster to-go options as the coronavirus pandemic continues. The “modernized” updates will begin in 2021 and be dubbed the “Next Generation Prototype restaurant concept,” according to a press release. Visual mockups show KFC restaurant exteriors with its signature red and white stripes along with Colonel Sanders’s face. Large markers in the parking lot direct cars into a curbside pick-up location for online orders, while a similar system is used with a brightly lit arrow and chicken bucket that direct customers to an on-food pick-up cubby area. The designated areas have been designed to streamline the digital ordering process, so customers, employees, and KFC’s delivery

partners can access food with as little human contact as possible, the press release explains. “KFC U.S. drive-thru sales grew 60 percent in Q3 2020 compared to a year ago, and recently hit a delivery milestone with 80 percent of KFC’s in the U.S. delivering through multiple delivery aggregator partners,” an excerpt from KFC’s release reads. “With the increase in online ordering, delivery and drive-thru, the new design will take the stress out of the ordering process for both KFC restaurant employees and customers.”

Inside the revamped restaurants, KFCC intends to install contactless self-service kiosks for quicker service and personalized order options. A video tour of the 3D mockups on YouTube shows an interior view with two sneeze guard-lined kiosks a short distance from the cashier counter and indoor seating area. Through the window, chairs and tables can be seen for outdoor dining. “Prior to the pandemic, consumer behavior was already shifting towards a digital experience/preference and since March, the trend has accelerated proving a need for a modernized design,” KFC’s release noted. Despite the presence of the coronavirus, KFC reports that 60 percent of its restaurants feature an “American Showman” design, which surpassed the 50-percent update goal the chain announced last year. Source: Fox Business

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

FA (Or F/A) Franchise Agreement FIT

Food Innovation Team

FSC

Food Safety Consultation

GAC

Government Affairs Committee

14 AKFCF Quarterly Winter 2020

IAYF International Association of Yum Franchisees (formerly known as the IAKFCF, International Association of KFC Franchisees)

QSR

Quick Serve Restaurant

REC

Restaurant Economics Committee

RGM

Restaurant General Manager

KFCC

RMI

Restaurant Margin Improvement

Kentucky Fried Chicken Corporation

NAC National Advertising Cooperative (merged with NFAC to become NCAC)

ROCC Restaurant Operations Compliance Check

NCAC National Council and Advertising Cooperative

ROI

Return on Investment

RSC

Restaurant Support Center

NFAC National Franchisee Advisory Council (merged with NAC to become NCAC)

RSCS Restaurant Supply Chain Solutions (formerly UFPC)

NMS

SBRA Supplier Business Relationship Agreement

National Marketing Subcommittee

NPC National Purchasing Cooperative (i.e., KFC NPC)

TOL

Territory Operations Leader

OEC

Operations Excellence Committee

TRP

Targeted Rating Point

PAC

Political Action Committee

VOC

Voice of the Customer (formerly CBCC)

POP

Point of Purchase

YUM

Yum! Brands

POS

Point of Sale

YRI Yum! Restaurants International

YUM! BRANDS NAMED TO DOW JONES SUSTAINABILITY INDEX NORTH AMERICA FOR FOURTH YEAR IN A ROW

um! Brands was once again named to the Dow Jones Sustainability Index (DJSI) North America for its continued commitment to responsible and sustainable business practices. This is the fourth year in a row the company has been named to DJSI, regarded as one of the leading sustainability benchmarks among both businesses and investors. Yum!’s Global Citizenship & Sustainability Strategy, called its Recipe for Good, is the company’s roadmap for socially responsible growth, risk management, and sustainable stewardship around its three priority areas of people, food, and planet. In January 2020, Yum! integrated its Recipe for Growth, the guiding principles of its business strategy, with its Recipe for Good. “As the world’s largest restaurant company, Yum! is committed to socially respon-

and

sible, sustainable, and purposeful stewardship of our people, food, and planet,” said Jerilan Greene, Yum! chief communications and public affairs officer, and chairman and CEO of Yum! Brands Foundation. “We’re pleased to have earned another year of recognition by the Dow Jones Sustainability Index North America, which is a testament to the strength of our ongoing progress on our Recipe for Good journey.” In June 2020, Yum! announced a new social purpose to unlock opportunity in frontline restaurant teams and communities, supported by a $100 million investment over five years. Additionally, Yum! expanded efforts to offer customers globally more balanced choices, including plantbased and vegetarian menu items, and continued its climate change journey by

increasing efficiencies in its restaurants and corporate offices and making progress on key deforestation commitments related to paper, palm oil, beef, and soy. “In a year filled with unprecedented challenges due to COVID-19, we’re proud of the significant progress Yum! has made when it comes to further integrating responsible and sustainable practices across our business,” said Jon Hixson, Yum! chief sustainability officer and vice president of global government affairs. Since launching in 1999, DJSI has become a leading global index that tracks the sustainability strategies and work of publicly listed companies. Each year, the index assesses and ranks selected companies for their performance with environmental, social, and governance criteria. Source: Yum!

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Winter 2020 AKFCF Quarterly 15

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16 AKFCF Quarterly Winter 2020

Beyond 270 By Amy Agenbroad

n Saturday, Nov. 7, 2020, after arguably the most divided election in U.S. history, Joe Biden was announced as the projected winner of the 2020 presidential race. Biden is estimated to have received 306 of the overall 538 electoral votes as of press time. Not going down without a fight, President Donald Trump has indicated he will do all he can to not give up his reign at the White House. Biden is scheduled to take the oath of office on Jan. 20, 2021 on the West Front of the U.S. Capitol Building for the traditional presidential inauguration as the 46th president to lead the American people. Sen. Kamala Harris also will take the oath as vice president. Born in Scranton, Pennsylvania, Biden served in the United States Senate for the state of Delaware from 1973 to 2009. He was elected as one of the youngest members to serve and was re-elected six times as a member of the Democratic party. Entering as a presidential candidate into the 2008 election, Biden failed to receive 1 percent of Iowa’s votes and dropped out of the race, only later to be chosen by then-candidate Sen. Barack Obama as his running mate. Together, they served two terms in the White House. The stakes were set high this election cycle considering the ongoing global pandemic, civil unrest, and economic volatility. So, what could the 2020 election mean for restaurants and restaurant owners? Labor Labor and labor laws are a vital element to the success of a business, regardless of size. Biden has garnered support from key labor unions. He has pledged to encourage unionization and collective bargaining, as well as extend employee benefits during the ongoing pandemic by requiring employers to permanently provide up to seven days of paid leave for family, safety, and illness. Additionally, he is in support of raising the federal minimum wage to $15/hour. The National Restaurant Association has

lobbied against this effort as harmful to job creation, small business owners, and their employees. Biden also supports expanded overtime pay previously implemented during the Obama Administration. Biden has shown support for “fair and flexible” scheduling, which would require restaurants to provide predictable schedules for their employees. Healthcare A key issue and cost-driving factor, healthcare reform is as a top priority for Biden. He plans to support and expand the Affordable Care Act, which was signed into law during his time as vice president. This would allow Americans to choose between private health coverage or a public option such as Medicaid. Taxes Biden plans to increase taxes for corporations and high-income earners. According to the Tax Foundation, Biden’s plan would raise tax revenue by an estimated $3.3 trillion over 10 years, but only $2.8 trillion when taking into consideration macroeconomic effects. His plan would do this by repealing components of the Tax Cuts and Jobs Act enacted under the Trump Administration, imposing a 12.4-percent Social Security payroll tax for wages above $400,000, increasing the corporate tax rate to 28 percent (from 21percent), and establishing a corporate minimum tax on book income, among other policies. COVID-19 Laid out by Biden, he plans to help provide economic relief and help working families by: • Providing state, local, and tribal governments help to ensure educators, firefighters, and essential workers keep their jobs. • Extending enhanced COVID unemployment insurance and enacting permanent reforms to short-time compensation arrangements. • Providing a relief package for “Main Street” businesses.

Winter 2020 AKFCF Quarterly 17

Additional Biden/Harris campaign issues • Produce critical supply chains in America. • Build modern infrastructure and clean energy. • Implement plans to ease the burden of childcare and ensure better access to home care. • Advance racial equity. Because of the ongoing pandemic, civil unrest and economic volatility, the 2020 election was predicted to be nothing short of

historic. Biden’s plans as president will largely depend on the composition of Congress and which parties control the House and Senate. Republicans retaining the Senate could make many of the goals stated above more difficult to enact through legislation. Stay involved, donate to the AKFCF PAC The AKFCF PAC needs your help now more than ever. Contributing to the AKFCF 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 campaigns of those running for Congress, or incumbent members seeking re-election. You may make your 2020 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 Amy Agenbroad of Polaris Consulting, LLC (aagenbroad@polariswdc.com). n

AKFCF – Political Action Committee (PAC)

The AKFCF created a PAC to make sure our voices are heard in Washington, D.C. The AKFCF Government Affairs Committee and the AKFCF PAC Board of Directors would like to thank the franchisees listed below for their contributions to the AKFCF PAC. Each quarter, we list the names of the franchisees who have supported the PAC at time of print as a token of our appreciation. This list is all the latest contributions, broken down by region. We encourage you to please join your fellow franchisees and support your AKFCF PAC. For information on how you can become involved, or if you don’t see your name and should, please contact Leslie Sharp, treasurer of AKFCF GAC/PAC at lcsharp4133@icloud.com. Greater Midwest Dale Black Joan Bowling Anthony Buford Alessio DiFranco Matthew Druten Timothy Fitzpatrick Glen Flewelling Greg Flynn Nancy Fox Anthony Gianino Anne McKenzie Goodnight Noah Hommerding Lesley Hottinger John Jefferis Michael Kulp Stephanie Kulp Mark Lambos Craig Lee Ladonna Lewis Afzal Lokhandwala Kirstin Mana Lynn Mayer James McKenzie James Mikula Diana Myers Kaushik Patel Alan Salts Steven Saunders Kevin Schlutz Sally Shane Douglas Smith Justin Stewart Amanda Urquhart Shelly Vorrath Scott Vorrath Nanette Walker Chris Walker Peter Wasilevich Robert Widder Adam Wright

18 AKFCF Quarterly Winter 2020

Northeast Ray Aley Cheryl Aley Jennifer Arsenault Bryan Barrett J. Michael Barrett Jeff Bower Tony Cameron Tommy Cecconi Thomas Cocolin Keith Cole Barry Dubin David Evans Frederick Gallant Fred Gallant Sherry Houston Michael Houston Syed-Nadeem Kirmani Donald Lopes Pushpak Patel Robert Rianna Alex Rosenblum Eugene Skowronski Larry Starkey Northwest Rita Basra Lilellen Buckner Robert Carle Manuel Galhandro Ralph Harman Jeannie Harman Brett Harris Fred Jackson Jamie Jackson Marvin Jorgensen Cindy Jorgensen Lisa Kern Craig Langel Anne Mehl Steve Prendiville Greg Schons

Samuel Sibert Don Steinke Todd Stewart Barry Thiriot Amin Vakil Calvin White Southeast Barbara Brigance Bill Byrd Charles Clark Keith Coward Eric Felker Sandra Felker Austin Felker Kim Fowler Chris Fowler Charles Michael Fulenwider II James Fulmer Michael Galloway Kirk Gillam Gregory Hamer Matthew Hansen Tim Harris L. Inman Hodges J. Michael Hubbard Ben Johnson Howard Killgo Doris Lewis Jade Ogden James Ogle Angela Ogle Johnny Outlaw Eric Overcash Larry Peak Vic Peeples Jake Rasor Terry Rogers Andy Rosen Dan Rosenbalm Linda Rosenbalm David Ross

Fred Ruth Leslie Sharp Bill & Bonny Shelton Marcus Shelton Kelly Shoffner Jay Shoffner Mallory Shoffner Quintero John (Jack) Sims Jeff Wallace Kent Weir Charles (Tim) West Richard (Dick) West William (Bill) West Gary (Steve) West Daniel Yagoda Southern California Frederic Baker Amjad Chaudhry Shahid Chaudhry Piyarali Hashim Zubair Kazi Russell May Patricia McBrayer Lonnie Noble Stan Singh Raziel Valiente Southwest Robert Alred Debra Ashmore Sheila Boespflug Edward Boyer Krystal Burge Andie Cremer Scott Duke Rajeev Jain John Moroney Rajesh Patel Mark Peterson Doyle Sanders Kelli Spring

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20 AKFCF Quarterly Winter 2020

An update on planning for the 2021 AKFCF Annual Convention, and a look back at past events

By Kelly Rodenberg and Cory Sekine-Pettite

s the COVID-19 pandemic continues and prevents us from meeting in large groups, we are reminded that things are best when we come together as a KFC family. We unite in the stories, the pictures, and in the memories to celebrate what we all have in common. Our images may be different, our versions may not sound the same, but we all have the same love for the brand and the people. The fact that we are still dealing with so much uncertainty is disheartening. We have had to make hard decisions now for an event that is less than three months out, with no obvious path or clear answers in sight. We know it is crucial and beneficial to put on a Convention — even if a virtual one — and like you, we will miss the thrill of an in-person event. We are working together to be flexible as we all find our way through this maze of new realities. With a significant spike in confirmed U.S. coronavirus cases over the last few weeks, it seems clear the pandemic is likely to remain a concern for the country, and certainly the live-event industry, well into mid2021. But it’s through creative solutions, like the rise of innovative virtual meetings, that the AKFCF Convention Committee can help AKFCF members remain informed, connected, and mobilized. The challenge of virtual events will always be trying

to recapture the excitement and energy of a live, in-person conference. To truly engage audiences in this new highly competitive, digital landscape, we will need to deliver a top-notch, virtual event experience that offers superior production and educational value to our KFC family. The key to getting through this is working together and being adaptable. Everyone is ready to get back to it, but recognizes that the packed meeting spaces we are used to aren’t an option for us in 2021 and most likely won’t be until late spring. We know you are itching to gather with your KFC family and friends, and even though we can’t all be together in person, we still need to get our important messages out. We are working on inventive ideas to make the 2021 virtual Convention attendee experience overwhelmingly positive and unique. With the pandemic not coming to an end in time for our annual Convention, it’s important that we hold on to that golden glow of when we could shake hands, embrace with a hug, share a laugh over a drink, sit in a workshop, congratulate an award winner, hear some great music, and network with our vendors in the trade show. We hope this photo retrospective of past Convention celebrations — and recollections from AKFCF past presidents — about unity and coming together inspire you until we can meet again — and we will.

Winter 2020 AKFCF Quarterly 21

CONVENTION MEMORIES: AKFCF Past President, Bryan Robinson (2018-2019) Hands down, my fondest memories of planning the AKFCF Convention for 2019 revolve around the amazing staff and franchisees I was blessed to work with. I will always be amazed at the quality of talent and commitment of that entire group of people. Some of my fondest memories [of attending Convention] are sitting back and listening to the stories from our franchisee legends about how the AKFCF has grown and overcome so many obstacles … so inspiring … so humbling! Las Vegas is always a favorite [Convention location], especially when the hotel does their part! Orlando is a great place to take the family, and I really enjoyed Austin!

22 AKFCF Quarterly Winter 2020

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CONVENTION MEMORIES: AKFCF Past President, Kevin Schlutz (1997-1998) Having been involved in planning many of our AKFCF Conventions, my best memories are of site visits to new venues we hadn’t ever been to before and exploring the hotels and surrounding areas, and visualizing how it would all work. Most people don’t realize all that it takes to plan a meeting that large with all the different activities and entities involved. A favorite memory for me was checking out the Dallas Cowboys Golf Club with Kris Stage. Also, having a Convention planning meeting before my Convention is still a favorite. Some of my favorite trips were the site visit to Hawaii for David Neal’s Convention and Opryland before my Convention. Those were the “good old days,” where the Convention Committee actually made most of the decisions. Deborah Callahan was our guide back then and it always turned out great. It’s all about the people, and what I mean is it’s not just seeing

24 AKFCF Quarterly Winter 2020

our fellow franchisees, but long-term vendor partners and corporate partners, and also the travel staff. Working with so many of them over the years, it is always a great feeling to see them again. Also, the excitement of that opening day and the proud moment of each successive president giving their opening speech. Also seeing the award winners and congratulating them afterwards, sometimes knowing who it was and excited that they didn’t know until it was announced. Greeting people at registration as they got there was always a great memory, especially back when they came to their own region to check in. I have to say Opryland [is my favorite Convention location] because it was where my Convention was. Some of my other favorites are the Gaylord Texan and Rosen Shingle Creek. The Venetian was wonderful as well. [For the 2021 Convention], my worry is that even if we are able to do all the presentations that we normally do, the off-times of just spending time together is what I will miss the most.

CONVENTION MEMORIES: AKFCF Past President, Dale Black (2011-2012) My fondest recollection came when the Greater Midwest had a recent, long conference call with our representatives. The discussion was led by Ron Gardner, who shared how an agreement between the brand, franchisees, and the new RSCS now permitted full visibility to the supply chain. I flashed back to the challenge of my time in leadership of over 200+ operating POS systems, the travel to all the regions sharing a vision of a supply chain that we now have today, and how Inman Hodges and I shared that vision as we drafted the first technology agreement with Tom Romano, not getting all we hoped for our fellow franchisees but enough that the shared value to the system became evident to all.

Winter 2020â€ƒ AKFCF Quarterlyâ€ƒ25

CONVENTION MEMORIES: AKFCF Past President, Keith Chambers (2006-2007) My fondest memories of planning the Convention are the wonderful cooperation and creative input that the responsible parties of the NCAC, RSCS, KFCC, and the AKFCF Convention Planning Committee gave and worked to assure successful conventions. Because I had sat on or helped lead those other franchisee committees in the past, I had special long-term relationships with so many of them, that we were able to click well with a high degree of empathy and respect for each of our responsibilities and missions. I was so blessed to be able to serve on the Executive and Convention Committees with Kevin Schlutz, Chuck Weaver, Tom Slater, Pat Dempsey, Dan Yagoda, Joe Oleinik, Terry Rogers, and Andy Selden — all of whom were engaged and compelled to positively “ramp up” the quality [of our Conventions]. … One of our goals to increase the quality and attendance at our Convention was to strive for top-shelf entertainment and speakers. When negotiating to secure Brooks & Dunn — who at that time were one of the top music acts in the world — we “invested” in a fee amount that certainly broke our record up to that time. But in all fairness, it was still far below the “going rate” of Brooks & Dunn. It took some fancy talking, an agreement of fee confidentiality, and also the position that if B&D were to be offered a better fee and gig for the Convention date, they could back out

26 AKFCF Quarterly Winter 2020

up to 45 days prior to the Convention. Of course, many of us were holding our breath and keeping fingers crossed until we knew for sure we had secured Brooks & Dunn as our entertainment. We had also secured Mitch Albom, ESPN analyst and author of many books including “Tuesdays with Morrie.” One of Albom’s chief take-away lessons was/is “Giving is Living, Living is Giving.” Albom gave his speech right before Darlene Pfeiffer got on stage and introduced the KFC Scholarship Program (the predecessor of the REACH Program) with Darlene requesting further franchisee funding, with very successful results. There are so many great memories from attending Convention. Perhaps it was when I was the last chair of the previous National Advertising Co-op, then becoming the first vice-chair of the NCAC. And we as a newly forming NCAC were inspired by the Colonels’ Hard Way documents that Bill Allen had found and gave to me. The NCAC embarked on setting a “Recognition Example” for the KFC system and thought the “Colonel’s Hard Way” perfectly fit the recognition “brand” that we wished to initiate. I was so honored to be able to recognize on a Convention stage in front of thousands, to award the first NCAC Hard Way Award to John R. Neal who was the unanimous choice from all franchisee, KFCC, NCAC committee members. John, who was known to be jovial but also professionally stern, instead showed his human side as he emotionally accepted the first Hard Way Award.

CONVENTION MEMORIES: AKFCF Past President, Jim McKenzie (2019-2020) Planning for the 2020 Convention was the highlight of my term as the AKFCF president. The Convention is the “crown jewel” of all the services and benefits the Association offers its members. The Convention is where and when all KFC teams gather to celebrate, learn, explore, share, discuss and plan for our great brand. Helping deliver a Convention experience that meets all of those needs (and more) is such a rewarding experience. Who knew that our 2020 Convention theme of “Banding Together and Leading the Way” would be so appropriate for the immediate days and months following? As I look back over the Conventions I have attended, the experiences I remember the most, and the experiences I have had that influenced me the most, are the opening sessions. Regardless of where we have been as a brand, the energy and opening remarks have always been delivered to put us on, or keep us on, a positive path for growth. The opening day has always served to unite us franchisees, as a brand, and as a team working toward common goals. All of us are there: franchisees, KFCC, RSCS, and our vendors and partners. You can’t help but leave that first day energized and excited to keep our brand and businesses moving in the right direction. I have attended around 15 Conventions over the past 20 years. I’ve been to Las Vegas and Orlando many times, and always have a great time. I have to say, though, that Nashville has been my favorite destination. To me, it offers a little bit of everything — great venues to conduct our Convention business, great entertainment, dining and exploration options in abundance, and a location that most of our franchisees and partners can easily get to. At the end of the day, our experiences with each other and the interactions we have are the most important part of any Convention. These can happen anywhere! As I look to the 2021 Convention, and the reality that it will be a virtual Convention, I am anxious to experience our “interactions” virtually. I am convinced the content, training, vendor information, etc., will be just as good — if not better — than past years. What will be a new experience for all of us is the interaction amongst us all. I know Brandon and our entire Convention team are working very hard to deliver the best Convention and experience possible. I also know they are creating unique ways to allow for these interactions between all of us to occur. While the 2021 Convention will not be what any of us imagined as we left Nashville, there is no doubt in my mind that it will be a great one and remembered for the conversations, questions, and social interactions we all had with each other!

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CONVENTION MEMORIES: AKFCF Past President, Larry Starkey (2013-2014) I don’t have a lot of “fond” memories of planning the Convention, but I do have great memories of what all we accomplished that year. We had a lot of changes that year with a new production company, a new executive director of the AKFCF, new legal counsel, and it was the final year for the person whose company was charged with the logistics of our Convention. I wanted to take the Convention in a new direction to illustrate the possibilities we had in working cooperatively with our franchisor partner. That definitely was not the chosen path of least resistance. The fondest memory was the outcome of the event we planned, “KFC’s Got Taste and Talent.” We had no budget to do this talent contest, but with the help of Northeast franchisees (Keith Cole, Ray Aley, Rob Rianna), and a whole host of volunteers as judges and contestants, we were able to put together a most memorable evening. KFCC provided the food for free, catered by six neighboring KFC restaurants in the Orlando area. The final cost for the event was close to $10.00 for each person in attendance (mostly for the hotel to do the clean-up). Attending Conventions each year has provided me the opportunity to see lots of people that I have gotten to know and appreciate over several decades. I look forward to our times of gathering to laugh hysterically over shared experiences. I think I have attended every national Convention since 1982. The locations that surface to the top of my list include Austin, Texas; Orlando, Florida; San Antonio, Texas; and New Orleans.

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28 AKFCF Quarterly Winter 2020

CONVENTION MEMORIES: AKFCF Past President, Dan Yagoda (2009-2010) My first Convention was in New Orleans and the Colonel’s daughters were both there — 1980, I think. They took a special liking to Cyndi, and it was quite overwhelming for first-timers. I have been to all but one Convention since then. I have many fond memories of planning Conventions. So many great people … many laughs and some tears. On planning in my year, I wanted a big, uplifting opening in Las Vegas. I decided I wanted to hire the Jersey Boys show to do it. The show was in the hotel. Deborah Callahan was dead against it, of course. Well, I found new sponsors to pay for it and had a connection to the producer who arranged it. The day before, Deborah and I were alone watching them rehearse the opening they had planned. Halfway through she looked at me and said, “OK, you were right!” Now, Deborah ran great Conventions for us for many years and supported every president, especially during Convention week, but not that many could say that they got that kind of admission from Deborah Callahan. My other most memorable moment was surprising Dick Cahill with the president’s award and surprising him with his whole family there to enjoy it with him. Las Vegas remains my favorite location for Conventions. As for 2021, I will try to support the AKFCF and Brandon any way I can.

CONVENTION MEMORIES: AKFCF Past President, Terry Rogers (2010-2011) In 2010, we had a great planning meeting in San Diego at the Manchester Grand Hyatt Hotel with the full planning committee, along with the KFCC members and Larry Light and Joan Kiddon. It was at this meeting that a national business publication quoted a KFC franchisee saying something very unflattering about KFCC leadership. No one allowed this to interrupt the reason why we were there, and we went on to have a nice dinner and end our meeting as pleasantly as possible. It just goes to show that when we align on business essentials, we can all move the brand forward even in difficult times. I have so many fond memories … having my family present at so many Conventions is certainly special. Janet and I count so many franchisees as our best friends, and we look forward to the next Convention the same as we would a family reunion. Giving David Sparks the President’s Award in 2011 was a special memory because he had to work so very hard under very difficult circumstances to earn it. n

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30 AKFCF Quarterly Winter 2020

Better Communication Through Improved Design Developing the AKFCF’s new website

By Jason Kunz, Founder of Speaking Socially Media Management

our website is the center of your digital experience. Like a brick-and-mortar location, the experience matters once a customer enters, just as much as the perception they have of you before they visit. Our objective at Speaking Socially was to build a new AKFCF website that better emulates your family values and helps fulfill the mission to AKFCF members.

Winter 2020 AKFCF Quarterly 31

When we were first approached about this project, we were thrilled to be able to create a new, innovative design that was both user-friendly and incorporated AKFCF’s new branding elements. Generating a website that is easy to use was our main goal. While your Association always has had a great deal of information to share with members, 2020 has shown just how important a cohesive and clean communication system is. Since we’ve played an integral part of the communication within AKFCF, we knew from the get-go that communication would play an important role in the updated website. The new AKFCF website now features an

updated members area where members are able to browse for upcoming events, as well as connect with other franchisee members. Within the members-only area, there are several different resources of which you take advantage, including training videos. One of the biggest updates to akfcf.com is that it is now mobile-friendly. With more than 80 percent of Americans owning a smartphone, almost three quarters of internet users access the web solely via their mobile devices, proving the need for this feature. The site still possesses a clean, uncluttered design on mobile devices, and still allows you to easily sign into the member’s area with a simple tap. The AKFCF Annual

One of the biggest updates to akfcf.com is that it is now mobilefriendly. With more than 80 percent of Americans owning a smartphone, almost three quarters of internet users access the web solely via their mobile devices, proving the need for this feature. 32 AKFCF Quarterly Winter 2020

Convention is one of your organization’s biggest events and is another item that we made a point to highlight on the new website. During Convention times, we will be updating the website to adjust the focus on the Convention, to provide relevant information, as well as to help direct people to download the Convention app. From day one of the new site’s development, your AKFCF communicated with us what they were looking for in a new website while giving us the creative freedom to adapt what they mentioned into the new design. Throughout the entire process, we worked hand-in-hand with Administrative Director Debbie Newton and Executive Director Kelly Rodenberg. With their feedback, we adapted the visuals and the verbiage used on each page of the site. Our web designer, Victor Fulcher, said the following, “My favorite part of working on the site was being able to collaborate

with some amazing people and having the chance to design a modernized site that will see use across the nation.” This goes to show how welcoming and helpful the AKFCF community truly is. Every aspect of this site was meticulously planned for from a member’s perspective. We wanted to ensure that we were thinking in the mindset of a new visitor to the site. This was our process as we built out each page of the website — Build. Visit. Assess. Rework. Revisit. Reassess. Repeat. When first visiting the website, you’re greeted with a welcome area linking off to the member’s area, as well as a link to pay membership dues. With just one click, you’re able to link off to valuable information. The general information page provides a breakdown of the various regional associations that represent the U.S. franchisees. This page also yields contact information for each of the regional secretaries. With meetings being a key part of the planning process for franchisee members, we wanted to ensure that there was a place to easily access important meeting dates. Under the general information page, all of the meeting dates are organized in a chart with location, date, and participants. Due to COVID-19, many of these meetings have been adapted to virtual meetings; however, this area provides franchisee members a reliable way to stay updated on changes in order to plan accordingly. Another huge part of the AKFCF organization is its Government Affairs Committee (GAC) and Political Action Committee (PAC). Several different members have explained in detail why PACs are an incredibly important part of the restaurant industry. Knowing that the PACs Winter 2020 AKFCF Quarterly 33

From day one of the new site’s development, your AKFCF communicated with us what they were looking for in a new website while giving us the creative freedom to adapt what they mentioned into the new design. are working to enhance legislation and are consistently working in opposition of legislation that is deemed harmful to your business, we thought it was important to highlight government affairs and explain how the committee works. If you have ever wondered what the PAC has done or is currently working on, be sure to check out this part of the website. Lastly, we know what an integral part the AKFCF Quarterly is to the franchisee community. Like the website, the Quarterly is ever-evolving and ever-growing. It’s another crucial tool in order to better communicate with franchisee members and share in the joys and triumphs of franchisee life. When starting this business in 2012, I never would have dreamt of working with a multi-million-dollar franchise community on redesigning their website. I am humbled to be living the “American Dream” right in my hometown of Great Falls, Montana. As a collective, the Speaking Socially team has thoroughly enjoyed working with each and every individual that makes up the AKFCF family. We are looking forward to continuing our relationship with the Association and helping in any capacity that we can. We truly appreciate the opportunity to provide tools to assist your teams in the best possible methods of communication, and we are thrilled to be involved with AKFCF. n

34 AKFCF Quarterly Winter 2020

Here To Serve And To Give Back KFC franchisees continue the Colonel’s legacy By Cory Sekine-Pettite

s we were putting the finishing touches on this issue of the magazine, thousands of people around the country were giving of their time and money for GivingTuesday, which was created in 2012 by the 92nd Street Y and its Belfer Center for Innovation & Social Impact in New York City as a way to encourage people to do good — in any way that they can. GivingTuesday is now an independent nonprofit and a global movement that inspires hundreds of millions of people to give, collaborate, and celebrate generosity.

Of course, the AKFCF Family is no stranger to generosity. Your stories of kindness and charity are inspiring, which is why this publication features them every year. And the Colonel’s legendary, altruistic spirit is a hallmark of the KFC brand, which KFC franchisees everywhere have proudly taken on the mantle of continuing. Here, we look at two thriving franchisees and the impressive work they have done — and continue to do — in their own local communities. Their endeavors undoubtedly would have delighted the man behind the brand.

Winter 2020 AKFCF Quarterly 35

Shawn Shariff CEO, Crave Concepts, Inc. Northridge, California Shariff and his company, Crave Concepts, are dedicated proponents of helping the less fortunate. For years, he has been involved with providing food to shelters for homeless people in the San Fernando Valley region of California. And when Shariff brings food to a shelter, it is considerably more than a few buckets of chicken. “We provide food that serves approximately 200 people, and we have been

“Giving back to the community is an integral part of my life. I believe the blessings I have today are because of my grandfather and great-grandfather and their volunteer work. I believe that I should pay it forward.” — Shawn Shariff

36 AKFCF Quarterly Winter 2020

doing this for the past five years,” he said. “Around the holiday time, we make it as a family event and my family helps out with serving the food at the shelter.” For the Shariffs, both the restaurant business and taking care of others are longtime family traditions. As a child, Shawn says he often watched his father and grandfather feed the under-privileged in their community. “My grandfather always said the satisfaction one get from giving is priceless,” he recalls. “Giving back to the community is an integral part of my life,” Shariff continues. “I believe the blessings I have today are because of my grandfather and great-grandfather and their volunteer work. I believe that I should pay it forward.” In addition to feeding the poor, Shariff has given back in so many other ways throughout his life. As a young man, he was an avid Boy Scout and spent much time with his troop on various community improvement projects. He also has volunteered with his church for most of his life, and he currently serves as a safety volunteer there. To put it simply, “It’s really an amazing feeling to serve and give back,” Shariff says.

Kris Stuebner Executive VP, JEM Restaurant Management Corp. Fresno, California It certainly has been a rough year all around. For most of us, these circumstances have tried our patience, tested our faith, and weighed heavily on our minds. But for some, like Kris Stuebner and his team at JEM Restaurant Management, the events of 2020 have fed a need to just do more. On September 4, the so-called Creek Fire

“We prepared well over 1,000 meals, sometimes twice a day, for three weeks. My team never blinked an eye; they just did it because it was the right thing to do, to share our blessings.” — Kris Stuebner

started near Shaver Lake, California, about 30 to 45 minutes from JEM’s headquarters in Fresno. The Creek Fire is one of the largest wildfire in California’s history, burning approximately 380,000 acres and destroying more than 850 structures. Actually, 2020 in general was a disastrous year for wildfires

in California. According to the California Department of Forestry and Fire Protection, more than 4 million acres were burned, more than 10,000 structures destroyed, and 31 people died from a record 9,279 incidents. So when the Creek Fire began raging, the Fresno County Sheriff ’s office reached out Continued on page 38

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Winter 2020 AKFCF Quarterly 37

to Stuebner for help. “I stopped [the sheriff] there and said, ‘when, where, and how many,’” recalls Stuebner. “We prepared well over 1,000 meals, sometimes twice a day, for three weeks. My team never blinked an eye; they just did it because it was the right thing to do, to share our blessings.” Such generosity is the pledge of the company that Joe Desmond founded more than 60 years ago. Desmond often was a silent giver to the community and today’s leadership at JEM continues its founder’s benevolence without ever looking for publicity. “We brought the values of Mr. Desmond back to the front of our company in taking care of people first, which not only includes our team members, but our guests and community,” Stuebner says. In addition to feeding first respond-

ers, the JEM team gives back to schools, churches, youth groups, senior groups, and other organizations. The company also has instituted a First Responder/Military/Senior discount program in honor of Desmond, who served in the Marines. The goal simply was to help their community,

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Stuebner says, but Fresno has taken notice, resulting in increased sales and soaring profits, even in the midst of a pandemic. “Our company was blessed with pick up windows, and a great team of caring individuals who showed up every day to serve our guests quality food at great prices,” Stuebner says. “So again, [we] stepped up to help those in need by sharing our blessing and feeding those in need, including teachers, homeless shelters, first responders, and shut-ins.” Stuebner added that sharing this story brought tears to his eyes as he thought of Desmond, as well as how proud he is of his entire team for what they do each and every day. “My task now is to lead by example and teach the values of people first so the next generation of leaders won’t forget our humble beginnings and what is important,” he concluded. n

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Catching up with the KFC Foundation By Elizabeth Edrington #GivingTuesday 2020 Fundraiser Recap The KFC Foundation participated in #GivingTuesday, a global day of generosity, on Dec. 1, 2020 to raise additional funds for the KFC Family Fund. We’ve supported a record number of KFC team members in 2020 as they experienced a hardship or crisis, and we wanted to ensure we could help a few more this winter. We are so grateful to everyone who shared our Facebook fundraiser and donated! We raised more than $2,000 in a single day, which will help one or two more team

members make it through an unexpected crisis — and we couldn’t have done it without you! Pro tip: The KFC Foundation is a verified charitable organization on Facebook, which means you can create a fundraiser to support us anytime you’d like (e.g. ask for donations through a Facebook fundraiser on your next birthday!). We are proud to say that 96 percent of all funds given to the Foundation go directly toward life-changing programs for KFC restaurant employees — that’s 96 cents from every dollar! Truly, every contribution makes a difference. Thank you to our 2021 participating franchisees! We’d like to express our sincerest gratitude and appreciation to all of you who opted in to the KFC Foundation’s Cole Slaw Donation Program for 2021. Once again, we are seeing high participation, with 96 percent of restaurants and 94 percent of franchisees in the program. This means 96 percent of KFC restaurant employees will be able to access and benefit from the Foundation’s scholarship, GED completion, hardship assistance, personal finance, wish-granting programs, and more! Your generosity means the world to us and to your restaurant teams. Thank you for continually choosing

to invest in our mission and in your people! #coleslawchangeslives #sellmorecoleslaw Kentucky Fried Wishes returns in 2021… with a twist! We’re thrilled to bring this wish-granting program back in 2021, but with an exciting new angle. Our vision is that KFC restaurant teams will be able to nominate one organization in their community to receive a grant to make their wish come true. Perhaps it’s the local chapter of the Boys & Girls Club who needs help building a library for the kids they serve. Or maybe it’s a donation to Meals on Wheels to help them with food expenses — and then your team could help deliver the meals to homebound seniors. The idea is for it to be a cause that your entire restaurant team can get behind, champion, and feel good about

supporting. More to come on this exciting new opportunity for restaurant employees to give back to the community organizations they care most about!

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Winter 2020 AKFCF Quarterly 39

POWER OF THE PEOPLE Individuals making a difference for the KFC system By Kelly Rodenberg

his has been a year filled with unusual and strange interruptions for all of us in the KFC system. It’s hard to stay focused, to make positive change, and to look for the opportunities rather than the challenges created by this pandemic. To help combat our fatique and keep our focus, AKFCF President Brandon Robertson has chosen “Power of the People” as the theme for his presidential term and the 2021 Annual Convention. The strength of the AKFCF is in the combined wisdom and will of all of its members and partners working together toward a common goal. Over the next year, we want to share with you some stories of people who inspire and who are making a difference — in both large or small ways — across the system and especially during the COVID pandemic. We salute them and say “Thank You” for stepping up in ways we all can benefit. In this second installment, please meet three more unique people who contribute their time and efforts to the marketing side of our brand.

40 AKFCF Quarterly Winter 2020

POWER OF THE PEOPLE

Doug Cook

Sr. Director Restaurant Strategies, KFC U.S. Years with the KFC system: 24

Generating a difference: It sounds cliché, but doing the right thing even if it’s hard and always keeping the restaurants and teams in mind, and the impact it has on them when designing a process or equipment. Coping with change: Realizing that change is inevitable, and we can choose how we react to and embrace change, making the best out of the situation. Imagining differently: I often challenge myself and my team to think about problems differently to see if there is a creative solution that hasn’t been considered. I also like to get a perspective from someone that isn’t close to a project to see what a “fresh set of eyes” may consider. Role model: My parents — they taught me hard work and work ethic through their examples. Inspiration: I get excited and inspired working with various teams to create solutions for complex problems. Seeing a solution come to life for an issue facing our teams is exciting. Key advice received: Always do the best you can, then you’ll never have to wonder what if. Besides KFC work, what do you do for fun or in your free time: I enjoy spending time with my family, playing basketball, and running.

"I OFTEN CHALLENGE MYSELF AND MY TEAM TO THINK ABOUT PROBLEMS DIFFERENTLY TO SEE IF THERE IS A CREATIVE SOLUTION THAT HASN’T BEEN CONSIDERED."

Winter 2020 AKFCF Quarterly 41

POWER OF THE PEOPLE

Clinton Lewis

Director of Operations, Kedis Enterprises Years with the KFC system: 26

Generating a difference: Showing I care in each interaction with each employee. Our team members are the backbone of everything we do, and especially during the challenges of this year, they have been terrific. They show up every day trying to do their best to serve our customers. I continuously try to ensure them that they are appreciated, and I try to be responsive to their needs. We can only succeed together. Looking ahead: I believe KFC is on a good path. We are excited about the new sandwiches and other initiatives, and we are seeing the benefits of nearing completion of our ASAP remodels. Coping with change: Change is inevitable. Our customers evolve so we all must be ready to deal with and respond, whether absorbing new technology or changing of our menu mix. Imagining differently: I believe in people, and the constant is that most team members will invariably rise up to exceed expectations. Role model: Denise Springer Inspiration: Percy Fennell Key advice received: Take a breath when things seem challenging and get all sides of the story before taking any action. Things always look better in the morning. Besides KFC work, what do you do for fun or in your free time: Spending time with my family, my wife of 19 years, Shereka; my three sons, Brian, Jayden, & Sabastian; and my daughter, Madison. Watching my children grow up and take on their own personalities is an amazing feeling. I’m truly blessed.

42 AKFCF Quarterly Winter 2020

POWER OF THE PEOPLE

Barry Yates

Global Accounts Manager, Winston Foodservice Years with the KFC system: 30

Generating a difference: Being present and available 24/7 and 365, just like the franchisees have to be as restaurant operators. I understand their business, because I was a chef and restaurant operator. Winston (Shelton) and I committed years ago to keeping them operating every hour that they’re open. No matter what. Because if you can’t fry chicken, you can’t make money. Looking ahead: I’m very optimistic. I think the KFC brand is positioned well for the challenges that the pandemic has created for us. It appears that KFC’s business is booming, and that means that Winston’s business is successful, too. We’ve always viewed our business relationship with KFC as a partnership. Because that’s how our business started, as a partnership between the Colonel and our founder, Winston Shelton. Coping with change: Both the Colonel and Winston taught us about coping and dealing with changes. You work the hard way. You don’t look for shortcuts. You’re consistent; you do it day in and day out. And that’s what’s made both our companies successful. Imagining differently: Again, I think this involves being ever-present and involved in the business. Because that gives you insights into what could make a difference, both for the customers and the KFC operators. Then you try to bring those differences to light. You try to lead to solutions that bring those differences to reality. The more time you spend in the field with your operators and franchisees, the more in tune you are with their needs. An example of this is our fryer baskets. Operators shared with me their challenges with our clamshell baskets. After working in their restaurants, I could see that their concerns were valid. I worked with Winston Shelton to come up with the quarter rack basket system. I think it’s a good example of being present with the operators, and working with them to create a solution.

Role model: My parents. They started a family at a very young age. They were still kids themselves. They weren’t experienced enough to know that they couldn’t do what they were doing. They were committed to themselves and our family. They put one another through high school and college while taking care of my brother and me. Inspiration: My parents’ perseverance and non-stop effort to better the lives of our family has been a huge inspiration to me. Key advice received: My parents’ best advice was to remain humble, and never think you’ve arrived. You can always do better, be better, if that’s what you aspire to. Besides KFC work, what do you do for fun or in your free time: I love to cook, and spend time with my kids and grandkids. I try to stay involved in sustainable food systems. I used to enjoy pig farming, but no longer operate the farm. It brought me lots of pleasure though. n

Winter 2020 AKFCF Quarterly 43

RSCS MEMBER PROGRAMS

RSCS MEMBER PROGRAMS & EMPLOYEE PERKS: THE YUM! COMPETITIVE ADVANTAGE By Tricia Fike

t Restaurant Supply Chain Solutions, our goal is to provide value to our members. Member Programs provides value to our franchisee partners by offering discounts on products and services used to run your businesses. You may have heard about our Waste Services program, which could save you up to $1,000 a month, but Member Programs has many additional offerings that can help you save money on products and services you may already use today. We have negotiated discounted rates for: • Cleaning services • Cell phone plans • Fire suppression • Office supplies • Oil management

• Shipping services • Pest control • Slip-resistant shoes and more! Our entire list of programs can be found on our Digital Directory page located at the following link: https://apps.rscs.com/ MemberPrograms/Login.aspx. The Directory is where you can find detailed information on each of the programs we offer, the discounts available, as well as directions on how to sign up and who to contact for more information. The Directory also is where you can sign up to receive our monthly email newsletters. The Member Programs E-newsletters highlight various vendor offers that are a part of Member Programs. Also included in the E-newsletter is valuable Employee Perks information. Employee Perks is a free benefit for all members and their employees that offers discounts on products and services from a multitude of retailers you may already be using today. We have discounts on cell phone plans, movie tickets, electronics, and more! The E-newsletter has printable flyers that you can distribute to your employees, letting them know how to sign up for their free Employee Perks discounts. Our goal is to provide the most value to our operators with these programs and we appreciate your feedback. If there is a product or service that you think would be a great addition to Member Programs, please email us at memberprograms@rscs.com. Program Spotlight: Waste Program & Employee Perks Save up to $1,000 per store! With RSCS Waste Services program, you can stop throwing your money in the trash (and reduce your costs up to 30 percent)! RSCS had completed

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a multi-stage RFP, leveraging the volume of the entire Yum! brands system with some of the largest national waste vendors and waste brokers to ensure the BEST rates are made available to all restaurant locations. By leveraging this large volume, RSCS has established deals in place with five different vendors that are available to our members. While some locations are locked-in to using a city’s services (called a closed market), most areas have open competition, which means the waste vendors are competing for your business! To get started, simply send your current waste invoices to the RSCS mailbox WasteQuotes@rscs.com and we will retrieve bids from all five of our waste partners. This is a completely free process and you have nothing to lose — except for dollars off your waste bill. We will make the submitted bids available to you and if you are interested in one of the offers, provide you with a pre-negotiated Operator Agreement that

you can simply sign and begin service with the new waste vendor at the reduced cost. Employee Perks: Help Employees Save On Nearly EVERYTHING! Make sure your employees are getting the most out of being a KFC Crew Member by utilizing Employee Perks. Our Employee Perks program offers discounts on products and services from a multitude of popular retailers that can help your team Save on Life! One of our most requested discounts is on cell phone plans. We offer discounts at AT&T, Verizon, and Sprint. You and your employees could be saving up to 23 percent on your data plans just by being a

KFC employee! We also offer discounts on movie tickets, oil changes, hotel, car rental, security systems, theme parks, electronics, and so much more. To start saving, follow these two steps: 1. Connect via www.rscs.hrdiscounts.com 2. Create an account using the registration code “SAVENOW” Be on the lookout for a new Employee Perks poster being sent for you to hang up in store to remind your employees to sign up and start saving. We also have printable flyers available now for you to distribute to your team, just email memberprograms@rscs.com and we will send you the printer-ready flyers. n

Winter 2020 AKFCF Quarterly 45

KFC FOUNDATION

‘WHAT KFC HAS DONE FOR OUR FAMILY WON’T EVER BE FORGOTTEN’ By Elizabeth Edrington, KFC Foundation Communication Coordinator

hink about a difficult time in your life — one where you felt overwhelmed or hopeless. I’m sure that memory also includes the people who were there for you in those moments; the people who brought hope, peace, and help. I’m sure you can still feel the impact that had on you. The people who are there for us in our most dismal of times are unforgettable, and we should all feel honored and proud that the KFC Family Fund has been there for 620+ team members and disbursed more than $870,000 to help make their burden a little bit lighter during an unfortunate situation. Your involvement is paramount in making this difference in the lives of so many KFC restaurant employees — your generosity through the Cole Slaw Donation Program makes this financially possible, and we wouldn’t have anyone to help if you weren’t telling your team members about the KFC Family Fund that is available to them. Since this program started in December 2015, the number of people we’ve been able to assist has continued to grow. When awareness grows, our impact grows. Strengthens company culture Offering assistance programs, such as the KFC Family Fund through the Foundation, lets employees know you care about

46 AKFCF Quarterly Winter 2020

them, which strengthens your team dynamic and morale. In a recent survey, we asked KFC Family Fund recipients to respond to “How does it make you feel that this program was there for you in a time of need?” Here are a few of their answers: • Very important • That I matter to KFC • Like they cared no matter what. Love working for this company. • Valued as a team member. It took away a lot of stress because we were struggling already with the virus. • It made me feel very appreciated that the company I work for can help out in my family’s time of need.

• KFC pride • Like someone’s there for you and has your back when you need it the most. • It makes me feel good inside that I work for a company that has something like this in place for when events like this happen to us. • Really, really good. I have told friends and family all about it; they too are in awe of what a kind thing KFC has done for me. Improves employee retention High employee morale creates loyal employees who want to continue working for the brand! Team members who receive assistance from the KFC Family Fund have an average annual retention rate of 62 percent. Enhances customer perception According to Edelman’s “Trust Barometer Special Report: Brand Trust and the Coronavirus Pandemic,” 90 percent of consumers want brands to do everything they can to protect the well-being and financial security of their employees. And 71 percent of consumers agree that if they perceive a brand is putting profit over people, they will lose trust in that brand forever. Increases employee productivity When employees are less stressed about external finan-

cial problems, they are able to focus more at work. A Federal Reserve study found that employee financial stress costs employers an average of $5,000 per employee, per year, in lost productivity. According to the Aspen Institute’s “Illuminating a Hidden Safety Net: Lessons from Research into Employee Hardship Funds” report, 64 percent of people who received assistance from their company’s employee assistance fund felt that the aid enabled them to be less distracted at work. What situations qualify for assistance from the KFC Family Fund? In order for an employee to be eligible for the KFC Family Fund, they must meet the

“Our son is in college and our budget has gotten smaller. When mom died, it was a challenge to pay for the funeral. KFC was there for us. Made me feel valued. Like part of a family more than charity. On the busy days when work is hard, I know & my family knows we are appreciated.

following requirements: • They must be employed at a KFC restaurant participating in the current year’s Cole Slaw Donation Program. • An unexpected event must have occurred that created a financial hardship for the employee. • The event must have been outside of the employee’s control. • The event must have happened within 90 days of their application. • They must be able to provide documentation supporting the event and the financial hardship it created. Examples of qualifying events include: • Death of a loved one

“This means the world to me. God bless all you guys. My family is so grateful. Thanks to you, I’ll be able to afford my grandma’s last wish.” – Team member Jay Serrano (KBP Foods)

We are more than satisfied. We are touched. Thankful and overwhelmed. The Foundation replied quickly. It helped our family during a difficult time. What KFC has done for our family won’t ever be forgotten.” – RGM Kyle Pugh (JRN)

“We are so grateful for your help during this time. A thousand thank yous would still not feel like enough. Such a great program you have set up for KFC. The Colonel would be proud.”

• Natural disaster that damaged their home or car • House fire • Medical emergency • Car accident (they must not be at fault) • Victim of a crime • Domestic violence • Substance abuse treatment While money can’t eliminate the sorrow, it can hopefully eliminate some of the added stress that often accompanies it. To learn more and to access the KFC Family Fund application, go to kfcfoundation.org. Have questions? Email us at foundation@kfc.com. n

“I cry all the time knowing that everyone is completely taken care of now, but they’re tears of joy. I can’t thank this program and my job enough. Words can never express how I feel and how grateful I am.” – Shift supervisor Erica Young (Dwight Fraser)

RGM Jana’s 20-year-old son Luis was shot in the leg while walking home from his landscaping job. The case is still under investigation and it is believed that Luis was not the intended target of the drive-by shooting. Luis had to have surgery on his leg and be off work for three to four months to recover through physical therapy. Jana, a single mother and caregiver to her elderly mother, had to take some unpaid time off during Luis’ recovery. Without Luis’ salary to help cover the household bills, it was difficult for Jana to keep up financially. The KFC Family Fund was able to assist with Jana’s mortgage payments to alleviate some of her financial stress. “This is so amazing. I can’t thank you enough. Harman’s is an amazing company to work for!!!” – RGM Jana Wey (Harman Management Corp.)

– RGM Callie Gorder re: the assistance shift supervisor Jason Comet received (Lonnie Noble) Together, we’re giving a hand to team members when unexpected hardships and crises knock them down.

Winter 2020 AKFCF Quarterly 47

REGIONAL SHORT

SOUTHWEST REGION UPDATE By Shane Lovato

daptability is the Southwest’s biggest superpower. During this unprecedented time, we have become a stronger community by sharing one common enemy, COVID-19. However, adopting new standards and regulations has stretched our teams far beyond their normal job roles. Yet, they still are performing their duties to the highest standards and holding our region together. Fully understanding the impact of state-mandated lockdowns and curfews has been challenging to say the least. For instance, the Navajo Nation has some of the strictest guidelines throughout the country, while we also have places like Texas and Colorado that have little to no restrictions. It’s concerning when you see cases rising, and you don’t know what your local government is going to do. Unfortunately, we

48 AKFCF Quarterly Winter 2020

Being able to serve our guests during this time has instilled a new sense of pride into our company. have not been able to hold any meetings this year, and our region is feeling the impact of not being able to see each other face to face. We hope to hold a spring meeting, but even that chance dwindles by the day. Many franchisees have told me that this experience is “learn as you go.” To that I say, we already have been educated; now is the time to act. Here are the facts: We know that KFC has some of the highest standards for cleaning. We know that KFC is dependable when it comes to feeding families. We know that our restaurant culture is the best on block, and we know that COVID-19 is not going away any time soon. The only new thing that we have learned is that KFC still has an impact in our communities. Being able to serve our guests during this time has instilled a new sense of pride into our company — a sense of pride that we have not felt in a while. Our region is lucky enough to have many dedicated and impactful franchisee leaders who are willing to be part of a collaborative effort outside of their own company. Through them, we have been able to stay up-to-date on matters concerning KFCC, NCAC, and AKFCF. By having a strong Board and dedicated franchisee members, I believe that the new future that this pandemic has created is not something to be discouraged by, but something to look forward to. As always, the Southwest Region is here to help you. Please reach out to any of our board members with any questions or concerns. 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.

BEVERAGE & COMMUNICATIONS REPORT

BEVERAGE TESTING AND TWO-WAY COMMUNICATION NEEDS By Kevin Schlutz

Beverage Bucket

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everages aren’t just about those rebate checks you get every spring. And, oh, by the way, those checks are not going to be as big next year and that’s something you need to be planning for ahead of time. The pandemic, which caused our business to shift mostly to drive-thru and online has put a serious dent in our beverage volume, since eat-in orders almost always included a drink while drive-thru orders typically have a much lower drink incidence. As of the P10 reporting, beverage volume for the year is down 16.5 percent, and in P10 volume was down 20.4 percent! So far this year, the average restaurant has used 230 less gallons of syrup compared to 2019 and it hasn’t started rebounding yet! The beverage task force has been working on a solution to our lack of drink sales with our family meals. They have been testing the Beverage Bucket, which is a more attractive and versatile alternative to the half-gallon jug that we have been using for family drinks of tea or lemonade. However, the Beverage Bucket can be used for carbonated drinks as well and takes up much less storage space than the jugs! This opens opportunities for your customers who demand more variety than just iced tea or lemonade. The NCAC has approved this new package to replace the plastic jugs next spring, and Pepsi and the Beverage Task Force are going to supply the first few cases to each restaurant to get them started. We’re hoping to have the Beverage Bucket featured in an advertised bundle sometime next year. Meanwhile, another project the Beverage Task Force is working to-

ward is more standardized brands across the system. This becomes much more important as more and more of our business is online. We need to be able to advertise not 40 brands, which is what is out there, but the 12-15 brands plus Aquafina that sell the best across the country. This uniformity will help improve the experience with our online orders and save mistakes. It also will help prevent out-of-date product during this time of lower volume. Please work with your NASMs to switch to a more uniform brand lineup. Another test that is ongoing is the frozen beverage test currently happening in both Mississippi and Michigan. If successful, we are hoping to expand this test in 2021. Beverages are our most profitable item and a focus on selling more beverages and bringing the best beverage selection to our customers is much more important than just rebates. Another very important aspect of beverages is being competitively priced. When was the last time you checked the prices of all your competitors to ensure that your prices were competitive? Since beverages are so profitable, it’s more important to sell more units than to make more profit per unit. Many customers consider the beverage to be optional. Raising our drink incidence through variety, quality, and convenience is the best way we can increase beverage profits in our restaurants. Every year, we set aside funds to refresh older equipment. When you do your remodel to American Showman or when your equipment reaches 10 years old, you can order an equipment refresh. New equipment serves a higher quality drink and requires less maintenance, so it’s a win-win. If you are in one of those situations, contact your NASM to order your refresh. If your volume is over 1,800 Pepsi gallons, you could also qualify for an ice maker. Again, what is most important is selling more beverages. Take advantage of the different beverage programs. Bundle drinks with as many items

Raising our drink incidence through variety, quality, and convenience is the best way we can increase beverage profits in our restaurants. as you can and make beverages a priority for your teams through incentives like contests to build a culture of selling beverages. Communications Committee The mission of the AKFCF Communications Committee is to provide multiple channels of relevant, two-way information to unite and advance the interests of its members. Communications are critical to a fast-paced and quickly changing business environment. There are so many sources of information today that almost everyone has their favorites. Remember the days of newspapers, three network TV channels, and hard-wired telephones? Today, those choices have exploded exponentially, and it would be hard to find two people who get their news the same way because there are so many different choices available. Your Communications Committee is always looking for new and better ways to communicate, and especially to get feedback from our members, while maintaining the old standards that some still use. Here is a list of current forms of communication that are available to you: 1. The AKFCF Quarterly magazine and the e-Newsletter 2. Regional and AKFCF websites 3. Email distribution 4. Social media – AKFCF Facebook page 5. Text distribution 6. Conference calls, Zoom calls, webinars 7. Surveys, meetings and Convention, calendars, apps, workshops, and mailings. Of course, this year we haven’t been able to have any meetings since Convention, so virtual communications have become crucial. All of the regions have had virtual calls to keep members informed. We just unveiled the new AKFCF website, which was updated by our communications partner, Speaking Socially. If you haven’t been to the site yet, you will need to re-apply for membership to access certain parts of the site. Some

of the regions also are going to incorporate their sites into the new AKFCF site to make things less complicated for their members. One of our biggest concerns is that communication seems to be mostly one way. We would welcome your feedback on any of these initiatives. It is important to keep everyone informed, but it’s also equally important for your elected leaders and representatives to hear back from each of you with your constructive thoughts, questions, and ideas. As was once said about coming to meetings, we are only as good as the combined knowledge of all those in attendance. That also holds true with answering surveys and asking questions, making sure you completely understand how things will affect you and your restaurants. That’s why on each of the e-Newsletters there is a link to ask a question or give a comment to the leadership. They want and need your feedback. So, if you have any ideas for new or better ways to communicate, or especially how to get feedback from our members, please talk to your regional secretary, Debbie, Kelly, Michelle, or myself. As a regional secretary, I send a lot of information to our members, but rarely hear back from them. It’s always good when someone asks a question or requests some information. That’s the two-way communication we need. n

Winter 2020 AKFCF Quarterly 51

EXECUTIVE DIRECTOR UPDATE

A FEW WORDS ABOUT COVID-19 By Kelly Rodenberg

rom social distancing to self-isolation, the coronavirus pandemic has led to an explosion of new words and phrases in our vocabulary. Even COVID-19 is a simple acronym to describe an incredibly complex virus known officially as Coronavirus Disease 2019 (or SARS-CoV-2). As we attempt to adjust to the so-called new or next normal, such terms and phrases as pandemic, quarantine, essential, flattening the curve, and self-isolation have readily slipped into everyday conversation, and new buzzwords are being devised quicker than ever. However, if I hear “un-precedented” one more time, I may lose it. As COVID-19 rages on, we can now learn and laugh at the things being said about “Rona.” Below are a few fun terms I have heard or seen. These include “covidiot” (someone ignoring public health advice), “covideo party” (online parties via Zoom or other video meetings), and “covexit” (the strategy for exiting lockdown).

52 AKFCF Quarterly Winter 2020

Since the most common consequence of the spread of COVID-19 is quarantine, puns on that word are predictably abundant.

Other terms deal with the material changes in our everyday lives, from “Blursday” (an unspecified day because of lockdown’s disorientating effect on time), to “Zoom bombing” (hijacking a Zoom video call). “WFH” (working from home)

and “quaranteams” (online teams created during lockdown) are helping people deal with changing work circumstances. Since the most common consequence of the spread of COVID-19 is quarantine, puns on that word are predictably abundant. From “quarantech” (apps and gadgets that help pass away time indoors) and “quarantrends” (fashion, food and lifestyle “quarantips” for those at home) to “quarantees” (promises by governments and companies to tide over “quarantough” times). A few more of my favorites: • BCV (Before COVID) • F2F (Face-to-face meetings) • COVID 15 (the 15 lbs. we have all gained while being in quarantine) • “Quarantini” (the drink of choice each night) • “Maskne” (acne from wearing a mask) The big question, of course, that arises is what this next generation will be called. The obvious one is “Coronials” — if not “Covidials.” In a mere eight months, coronavirus has fundamentally changed our ways of living. It has closed businesses and schools, and transformed our working patterns. This new vocabulary has come to be a practical shorthand for talking about coronavirus-related issues — from the impact the virus has had on our working and personal lives, to the influence of the lockdown procedures — or even just a way to poke fun and laugh at the world around us. I just laughed at myself, because kids today would not even know what “shorthand” means. I think we are all in need of some light humor these days. So stay safe, laugh often, be kind, and remember that this crazy world will continue to spin. n

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Winter 2020 AKFCF Quarterly 53

LEGAL UPDATE

THE END OF AN ODD YEAR By Ron Gardner

s I look out my window on a snowy day two days before Thanksgiving, I am struck by what a long and strangely winding road 2020 has been for all of us. From the highs of really unexpected growth to the lows of losing friends, colleagues, and loved ones to the virus, 2020 will be remembered as one of the strangest years of our lives. And yet, it is not over. While the calendar may turn over shortly, the effects of the time in which we live march on. So this quarter, I want to share with you a few of the things that I am thinking about and that we will all be dealing with in the next few coming months. Continuing Evolution of PPP The Payroll Protection Program (PPP) that Congress passed in March was a lifeline to many businesses, including many KFC owners. While it turned out that the effect of the pandemic on KFC was not as draconian as we initially feared, the sense of calm that it gave people when it came, and the backstop that it provided against the economic uncertainty that existed from March through July, is unmistakable. Unfortunately, questions remain and guidance continues to evolve. For instance, just last week, the IRS affirmed the lack of deductibility of any business expenses that were paid with PPP funds. This will mean that businesses that spent all of their PPP money, will now have to come up with money to pay taxes on income that would have otherwise been offset. That is likely unexpected. The GAC is working with other orga-

54 AKFCF Quarterly Winter 2020

nizations in an attempt to get Congress to reverse this ruling, so we wait and see whether or not the IRS guidance is final. Likewise, for larger operators, the SBA and Treasury’s issuance of Form 3509 has caused a great amount of concern. This is a form being sent to those borrowers who are seeking forgiveness of more than $2 million for themselves and their “affiliates,” as that term is used in the PPP. This document is part of the SBA’s effort to mitigate fraud in the PPP and

pries deeply into the need of funds, as well as the use of funds. Finally, for those of you who have applied for forgiveness, I have been made aware that the SBA has begun forgiving loans, bringing to a close the uncertainty for many. (If you have a question about PPP, or forgiveness, I am always here to answer your questions. Please feel free to give me a call.) NCAC Shifts Throughout 2020, the NCAC remained tremendously nimble in its approach to business. Meetings were shifted from quarterly in-person meetings to monthly virtual calls, with committees meeting every month as well. However, as 2021 approaches, and things have begun to be more consistent (I almost said “normalized,” but there is nothing normal about what we are doing here), the Executive Committee of the NCAC recently decided to move meetings to every other month. The system seems to be working well, and while we all miss both the comradery, as well as the real ability to do detailed business in-person, the virtual scenario has been a workable (but not ideal), substitute. Currently, the NCAC is planning tentatively to resume in-person meetings in September 2021. But that, like everything else in the last year, is fluid. AKFCF Convention As you have no doubt read in the preceding pages of this magazine, the AKFCF has made the decision to

We all certainly have negatives in our lives that we could dwell on — but as 2020 comes to a close, give thanks for those good things in your life. Together, we will endure. move our Convention this year to a virtual platform. For the longest time, we had hoped that the pandemic would ebb and our ability to get together would increase, if even to the point where we might be able to have at least a hybrid Convention, with some limited in-person attendance. Unfortunately, that was not in the cards. I am pleased to let you know that the Convention Planning Committee foresaw this potential outcome and have been planning for this eventuality for some time. I am excited about the work that is being done to bring meaningful content to you, the AKFCF members, as well as the opportunities that we are looking at for social interaction. The part of the pandemic that is the hardest to take is the inability to be with family when desired; that includes our AKFCF family. Having a virtual Convention that allows us to at least capture some of that “vibe” is important to all of us, and will be at the forefront of our continued planning over the next few months as we get ready for this one-of-a-kind event. Giving Thanks Finally, as I mentioned at the outset, it is two days before Thanksgiving as I write this message, and the idea of being thankful is top of mind. And I am thankful for so much. I am thankful for my inclusion in this extraordinary group of people. My affiliation with the AKFCF/NCAC/KFC family has brought meaning and purpose to my career that was sorely lacking before I began working with you. I get up each and every day committed to doing my very best for you as my clients — but really far more important to

me personally, you as my friends. I want to thank all of you for the continued opportunity to be of service, and I hope that what I do for you makes a difference in your lives and in your businesses. I want to thank the AKFCF Executive Committee, and most importantly, Brandon Robertson, for the opportunity to continue to be a valued counselor during his presidency. Brandon and I have “found our rhythm” in working with one another, and I believe that we have made great strides in bringing critical information to the process of making key decisions that affect you and your Association. Likewise, I want to thank the NCAC, and Cynthia Koplos in particular, for their support and friendship. This year would have been unbearable without the expanded personal relationships I made with Cynthia and many others on the NCAC. Thanks also to Melanie Bootes, Kate Ward, Sarah Osbourne Hill, and the KFC Legal Department. While our interests are not always aligned, our commitment to productive and constructive problem solving have allowed us all to focus on getting to you, the KFC franchisees, workable solutions to problems we never could have foreseen. I also am thankful to the KFCC leadership team who has welcomed me into any meeting that I wanted to attend. Their commitment to transparency, and faith in the collaborative culture that we have built, are unwavering. And finally, I want to give a heartfelt shout out to my family, and especially my wife, Becky. Her love and support, day in and day out, sustains me. I could not do what I do for you if she did not do what she does for me every single day. As this odd year comes to an end, I encourage you to spend some time thinking about what you are grateful for. We all certainly have negatives in our lives that we could dwell on — but as 2020 comes to a close, give thanks for those good things in your life. Together, we will endure. n 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.

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Winter 2020 AKFCF Quarterly 55

Photo Courtesy of KFC Global

LOOKING BACK

56 AKFCF Quarterly Winter 2020