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AKFCF Spring 2022

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QUARTERLY

Association of Kentucky Fried Chicken Franchisees, Inc.

2022

AKFCF Convention

PLUS: GAC Report | AKFCF Award Winners | Jim Sullivan

Spring 2022


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CONTENTS

AKFCF QUARTERLY SPRING 2022

38 20 48

FEATURES GAC Report: Spring Legislative Update 16  By Amber Peoples Senate and House leadership are currently negotiating several legislative packages that could pass by summer.

20

4

From the Editor

2022 Convention Wrap-Up

6 Outgoing President’s Report

By Kelly Rodenberg and Cory Sekine-Pettite

8 Incoming President’s Report

Unquestionably, part of this year’s Convention success was all its feel-good touchpoints, from a spectacular three-hour welcome reception to a magical private event at Universal, to meeting up with colleagues and suppliers in the Trade Show, to sharing time with family and friends during the networking breakfasts and lunches. AKFCF AWARDS 38  By Cory Sekine-Pettite This year, in addition to the coverage provided in our Convention wrap-up feature, we wanted to give these honorees their own feature in the Quarterly.

48

DEPARTMENTS

C an I Ask You a Question? By Jim Sullivan When faced with big challenges, knowing how to address the core problem by asking the right question is the key to success.

10 NCAC Report 12 In the News 53 Regional Shorts 54 Leadership Development 55 Education Committee Report 57

KFC Foundation

58

RSCS Member Programs

60 Executive Director Update 62 Legal Update By Ron Gardner 64 Remembering Barry Yates

On the Cover: 2022 AKFCF Annual Convention Wrap-Up AKFCF’s 2022 Annual Convention, held March 7–10 at the Gaylord Palms Resort and Convention Center in Orlando, Florida, was just what the KFC family needed at just the right time — a path forward combined with a heavy dose of inspiration and opportunity.

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AKFCF Quarterly Spring 2022


FROM THE EDITOR

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

YOU CAN’T MAKE THIS UP! By Michelle Hunt I was sitting here pondering what to write about in this column, and my calendar was in full view. You see, the next few weeks of our lives will be a little crazy. What I’m about to share happens over the course of four weeks. Our youngest son, Gavin, is graduating high school, and we have his graduation party next weekend. The party is one week before his graduation, and you’ll see why that’s important in a moment. The following Saturday, our oldest son, Davis, graduates with a bachelor’s degree in architecture from Iowa State University (just under three hours from home). He’s accepted an architect position in the Des Moines area, for which we are very thankful. The next day, our youngest son graduates from our local high school. I have a week to recoup from all that before heading to our Spring AKFCF Board meeting in San Antonio, Texas, where I’ll see many of your smiling faces. I return on Memorial Day weekend to ramp up for our oldest son’s wedding week. We will finally be gaining a daughter, Natasha, on June 4th. I like to tell people I’m a party, two graduations, and a wedding away from relaxation. You can’t make this stuff up! In all seriousness, if you know me well, you know I like to stay extra busy. Heck, I would have planned the wedding if they would have let me, but I’ll settle for planning a graduation party. This magazine is one of the many hats I wear, and I have enjoyed working on it for over 20 years. As most of you know, last July, I took on the administrative manager role for AKFCF. I have enjoyed learning even more about the Association, working with some fantastic people, and getting to know our members better. But first and foremost, outside of being a wife and mother, I am my father’s partner in our family’s KFC business that’s been going strong since 1968. I’ve always said I’m a lifer, and it’s true. The biggest blessing has been all the people I’ve met along the way. This issue is truly about the people. We look back at the 2022 AKFCF Convention on page 20, where it was clear that we missed each other and the interaction and fellowship that the Convention provides. Over 1,800 attendees! It was such a powerful opportunity to come back together with fellow franchisees and with our vendor and KFCC partners. We celebrated our AKFCF award winners in a new way this year with their own feature article on page 38. What incredible people we have to celebrate this year! The other two feature articles include our GAC update and words of wisdom from our friend Jim Sullivan. Always great to hear from Jim! We also have two regional shorts and updates from Leadership Development and Education committees. However, there is something I want to draw your attention to on page 64. We took a little space to remember Barry Yates, who was the face of Winston Foodservice for most of us. Winston has been a great partner to the AKFCF and this magazine, but Barry played a significant role in that partnership. I look forward to our continued partnership, but Barry will undoubtedly be missed. We’re already in process on the Summer issue, so I’ll catch you on the other side of my party, two graduations, and a wedding! Warmest Regards,

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AKFCF Quarterly Spring 2022

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

AKFCF EDITORIAL TEAM

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

Keith Cole Michelle Hunt Julie Mantlo Michelle Hunt Kevin Schlutz Kelly Rodenberg Brandon Robertson

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

FRANCHISEE EDITORS:

Michelle Hunt 14812 N Avenue, Columbus Junction, IA 52738 Phone: (319) 728-3282 Fax: (319) 728-2940 michelle.hunt@akfcf.com Julie Mantlo 855 Lovers Lane, Suite 111, Bowling Green, KY 42103 Phone: (270) 783-8880 julie@rogmancorp.com

Zaira Guevara (International Liaison) 7750 NW 46TH Street PTY 1495 Doral, FL 33166 Phone: (305) 384-4242 (U.S.) (011) 506 2208-7828 (Direct) zguevara@caribla.com

Copyright ©2022 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 1071-9873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation.

AKFCF ADVERTISING AND EDITORIAL SUPPORT OFFICE

Send all advertising and editorial submissions for AKFCF Quarterly to:

NEW SOUTH PUBLISHING, INC.

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

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


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FROM THE PRESIDENT

CREATING OPPORTUNITIES & MAKING CONNECTIONS By Brandon Robertson

A

year ago, I was writing this article for the spring edition and wishing I had been able to see you all in person. Thanks to your willingness to put up with me for 21months, I can now say how great it was to see you all in Orlando in person! The Convention Committee put together an amazing show for everyone and you showed up in record numbers. People and opportunity go hand in hand. I am grateful to have been given the opportunity to share my story and build a Convention around both our people and the opportunities they create. The people you surround yourself with determine the opportunities you will have. There is nothing more important in this business than people. We are in the middle of one of the most difficult hiring challenges I have ever seen, and people are hard to come by, but great people are even more difficult to hire. One way to attract the right people is by providing them opportunities. Young people these days are not just looking for a paycheck. They are looking for much more — insurance, retirement, flexible schedules, the ability to grow with a company

— “opportunities” and they don’t create themselves. You must create opportunities to attract and keep great people. As Mike Rayburn said, ask yourself “What if.” Well, what if you were the business owner for whom everyone wanted to work? I saw many new faces in Orlando and many of them were interested in learning how to get involved with the AKFCF. If you know someone new to our family, please reach out to them and get them to attend your regional meetings. It all started in the regions; the Southeast was the first and the others soon followed. We need to try to communicate with new franchisees and get them involved in our associations. As I said in my opening remarks, we have lost almost 20 percent of our franchisees to consolidation, but that only creates opportunities for new people to get involved. Kevin Hochman and the leadership team were awesome! I am excited about the direction the brand is headed, and I cannot wait to see what the marketing team does with Nick Chavez at the helm. Monica Rothgery is working hard to make operations easier for our teams, and we are going

The people you surround yourself with determine the opportunities you will have. There is nothing more important in this business than people.

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AKFCF Quarterly Spring 2022

to have to make some tough decisions to get our brand where we need to be. We have been talking about ops simplification for as long as I can remember, and Monica and the operations team are bringing it to life; I can’t wait. For the first time in over a decade, we had positive new unit growth and Brian Cahoe and the development team have big plans for this year. We are a growing brand again thanks to their hard work. Chris Caldwell and the technology team have moved mountains to get us where we are today with digital, and they have big plans for everything in restaurant and I can’t wait to get our restaurants up to date with technology! We saw many new faces in our vendor show as well, and most we had not seen for two years. I cannot say thank you enough to all our vendor sponsors. We would not be able to throw parties at Universal Studios and have all the other meals and entertainment that goes into a Convention without their support. I hope that you all made some good connections with the people that support us. If you did not make it to a vendor that you wanted to visit with you can look up their contact details in the AKFCF app. The last 21 months have been interesting for sure and it has been said that every president has something happen that they have to deal with during their term. I never dreamed it would be a pandemic, but I enjoyed being president despite COVID. I am grateful that I was given the opportunity to serve at a live Convention. The virtual Convention was interesting for sure and was an experience I will never forget, but it just doesn’t compare to seeing everyone in person. Thank you for the opportunity to be the AFKCF president! n


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INCOMING PRESIDENT

THE LONG ROAD By Keith Cole

I

’m used to being patient and taking my time to get to my destination — at least when it comes to my career. I started at KFC in 1983 and worked every position in the restaurant. Eventually, I was working in multiple restaurants and, after 23 years, became a franchisee in 2006. But it was only five years ago that I bought out my partner, Jim Cocolin and, at the age of 55, found myself 100-percent owner of my business. I now own seven KFCs in Pennsylvania and I’m in the process of developing another. My journey to be president of the AKFCF has taken me the long way around as well. My KFC brothers and sisters from the Northeast Region got me started with the promise that “We will not let you fail,” because we are family. People like Pat Dempsey, Ray Aley, Tony Cameron, Ron Giles, and the late Percy Fennell were my early mentors. I served two terms as Northeast president before joining the AKFCF’s executive committee, first as Finance Chair and then Treasurer. Over that time, I’ve had the privilege of serving on the EC under AKFCF Presidents Dan Yagoda, Terry Rogers, Dale Black, Larue Kohl, Larry Starkey, Joan Bowling, Chris Fowler, Greg Atwell, Eric Overcash, Bryan Robinson, Jim McKenzie, and Brandon Robertson. I’ve learned so much from each president and their different styles of leadership. Now it is my turn to lead. Throughout my first year, I am determined to focus on three important areas: 1. Strengthening the feeling of “family” that separates us from other associations. I believe this is the foundation of what makes this association so great. Of course, we do what we do for our families at home. But when you truly care about the people you

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AKFCF Quarterly Spring 2022

Our greatest strength comes from the problems we resolve as one well-oiled machine, national and regional.

confidence that Matt and his committee will accomplish great things. 3. Maintaining and increasing regional strength! We know our regions are our members and it is vital to the health of our system that we have active, engaged boards. Alignment is certainly not our enemy. Our greatest strength comes from the problems we resolve as one well-oiled machine, national and regional.

work with, you’re also with family while you’re working. We need to continue to help and support each other. This “Foundation Of Family” will be my theme for the year. 2. Focusing on the education and training that are so important to us in our restaurants and our companies. We need to emphasize our need for a successful and robust Education Committee with our corporate partners, now more than ever. Our shared goal should be a World Class Education Committee, second to none! This is why I’ve asked Matt Hansen of KBP to chair our Education Committee in the coming year. I have

I’m happy to say that these goals are part of a shared vision of the executive team. Those who are coming after me are equally committed to the constant, upward movement of our association. We are in good hands as we look to the future with Justin Stewart and Leslie Sharp as first and second VP’s. Top this off with our treasurer, Roger Sparks, our super secretary and resident historian Kevin Schlutz, and our new Finance Committee Chair, Jamie Jackson. We are set up for success. The long way around has been the perfect road for me to take. It brings me here with a love for the KFC brand and a strong appreciation for this big, bad-ass KFC family. That family includes the NCAC, vendors, corporate partners, and the AKFCF staff. This appreciation carries over to my Director of Operations, Michelle Lundy, and all RGM’s and restaurant teams across the country, for the work they do to keep our customers happy and coming back. They give us our purpose…our marching orders. This KFC family, past and present, has carried me down this road and set me down gently in this place, at this time. I’m ready for the challenges. I’m ready for the opportunity. I’m ready to give back to the KFC family that has given me so much. I’m looking forward to helping the system in any way I can. Unless this is all a very elaborate April Fool’s prank being played on me. n


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NCAC REPORT

A BIG YEAR OF CREATIVE AND MEDIA CHANGE By Tom Broome, NCAC Vice Chair

I

t was great to see so many of you at the AKFCF Convention in Orlando. The Convention theme “The Power of Opportunity” could not have been more perfect for this important week. There were plenty of opportunities to reconnect, collaborate, learn, explore, and commit to the continued growth and success of KFC. I truly enjoyed seeing everyone and feel like we got a lot accomplished during our time together. After nearly two years of being apart due to the COVID-19 pandemic, it was not only wonderful to be with our franchise, corporate and vendor partners, it was so important to remind ourselves of the power and strength of the KFC Family. One of the highlights of Convention was the opportunity to recognize several KFC Family leaders with the Colonel’s Hard Way Award.

After nearly two years of being apart due to the COVID-19 pandemic, it was not only wonderful to be with our franchise, corporate and vendor partners, it was so important to remind ourselves of the power and strength of the KFC Family. 10 AKFCF Quarterly Spring 2022

The Colonel’s Hard Way Award has been given out by the Vice Chair of the NCAC for over 20 years to more than 75 people and is intended to celebrate individuals who have contributed to the growth of the brand in a big way and embody a spirit, passion, and commitment to KFC that goes beyond their job description. This year, we recognized Emma Horn, managing director of the KFC Foundation; Bill Byrd, franchise owner of PMTD (People Make the Difference), NCAC member representing the Southeast Region and chair of the NCAC’s Operations Excellence Committee; and Ron Gardner, general counsel of both the AKFCF and the NCAC. All three of these individuals make all of us better and truly would make the Colonel proud. Thank you to Emma, Bill, and Ron for all you do. At Convention, Kevin Hochman presented a clear, strong vision for the future and Nick Chavez, KFCC’s new CMO, shared more about his background, career, and the immediate plans he is implementing to drive meaningful change to our marketing work. Nick has aligned the marketing team and work on an audience-focused approach based on insights and data that drive marketing decisions and actions. He has proven in prior work with Nintendo and Yahoo that it works! We also held our quarterly NCAC meeting following the Convention, and our two newly hired national marketing agencies of record — MullenLowe, our new creative agency, and Spark Foundry, our new media agency — presented the creative and strategic thinking that won them the KFC business and will help take us into the future. They presented their integrated approach to driving our business forward, focusing on bringing our food and those that enjoy our delicious, craveable, and legendary food into focus to promote our iconic brand. I’m excited about how quickly both agencies hit the ground running and


have dug deep to get to know the KFC business. They even attended Convention for the full week, as it was that important to them to immerse themselves in the brand, the people, and what will help us grow sales and profits. In the future, you’ll see creative advertising focused on KFC’s “Confident Cravers” who are unapologetic about their belief that “Fried Chicken is King.” KFC will appear in the places where the audiences we want to reach gather and communicate. You will see an intentional emphasis on “Finger Lickin’ Good” in many spaces and places, showcased as an attitude and setting KFC apart from the competition. MullenLowe’s creative work will hit the air, social, and digital waves with our Sandwiches and Sides Lovers focused window starting April 25. I am excited to see the new, uplifting, memorable, and craveable advertising. We’ll reach our core audience of Baby Boomers and expand to the audiences we need to engage to grow our business — Gen X and teens, Millennials with kids, Millennials without kids, and Gen Z. Our agencies have partnered together with our public

We have opportunities with sauces and sides, along with exciting beverage news, really giving our customers what they want while driving attention, sales, and profits. relations, performance marketing, merchandising and multicultural agencies to tackle our business challenges. This year will be a big year of creative and media change, as we continue focusing all our integrated marketing elements on our sandwiches and we round out the 2022 calendar with highand low-end options that leverage KFC’s marketing plan for growth. We have opportunities with sauces and sides, along with exciting beverage news, really giving our customers what they want while driving attention, sales, and profits. Sales are likely going to be softer this quarter, but 2022 should be another great year for KFC. n

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Spring 2022 AKFCF Quarterly 11


In the NEWS

JACK HARLOW SHARES HIS FAVORITE KFC MENU ITEMS ON KFC’S APP AND WEBSITE

K

entucky native and multiple-GRAMMY nominated rapper Jack Harlow grew up eating KFC. Some might even say Harlow and KFC are “Already Best Friends.” Now, fans can find Harlow’s Kentucky Fried Favorites on the KFC app and KFC.com. Included in Jack’s Kentucky Fried Favorites are the rapper’s go-to menu items — the Spicy KFC Chicken Sandwich, Secret Recipe Fries, Extra Crispy Tenders, a side of Mac & Cheese and of course, KFC’s famous biscuits. Harlow recently returned to his hometown to visit KFC’s headquarters in Louisville, where he met with KFC’s Head Chef, Chris Scott, for a behind-the-scenes look — and taste — at how KFC makes its “finger lickin’ good” fried chicken and fan-favorite sides. He got the whole KFC experience during his visit, from breading and frying chicken with Chef Chris to posing with his portrait in the iconic red and white halls.

“Partnering up with KFC feels like poetic justice. I’ve begun traveling the world and no matter how far I go, KFC is one of the first things people want to bring up when they find out where I’m from,” says Harlow. “I’m excited to align myself with something that started in Kentucky but resonates all over the

globe. I grew up going to the restaurant with my family, here are a few of the menu items I’ve been enjoying since I was a child.” “It goes without saying that our classics will never go out of style, but as Jack’s favorites, a few of them are getting celebrity status,” said KFC U.S. CMO Nick Chavez. “We are excited to make Jack’s favorites available now on the KFC app, and can’t wait to share what’s next with Jack Harlow and KFC. Stay tuned. You won’t want to miss it.” Harlow and KFC first announced their year-long partnership last December and fans can expect more opportunities to celebrate KFC’s partnership with Harlow throughout the year with upcoming campaigns, social media activations, special menu item launches, and exclusive experiences. Source: KFCC

KFC CANADA’S NEW SANDWICH A ‘SCORCHER’

K

FC Canada is adding heat to the “chicken sandwich wars” with a new spicy sandwich called the Kentucky Scorcher. It’s so hot, the company says, it comes with free milk — while supplies last. The sandwich features a thick-cut chicken breast, topped with signature Scorcher sauce, spicy mayo and pickles, all on a toasted bun. The infamous Carolina Reaper gives the Scorcher sauce its signature heat, according to KFC Canada. KFC Canada is offering free milk with every purchase of the sandwich, while supplies last, to help customers tame the heat. “Spicy offerings these days are made for the masses and lack the intensity Canadians are craving, so we set out to create a sandwich that truly delivers on heat,” said Ira Dubinsky, Brand and Innovation director, KFC Canada. “We tested dozens of hot sauces and peppers to ensure a balanced combination of spice and flavor, and the Scorcher sauce brought tears to our eyes. This chicken is not for chickens — we’ve got the milk in case you need it.”

The Kentucky Scorcher is now available at www.kfc.ca, through the KFC App and participating KFC locations across Canada. Source: Meat+Poultry

Condolences: Gary Zancanelli, Jr., of Leawood, Arizona, passed away on Jan. 9, 2022. He was 56 years old. Zancanelli was a native of the San Francisco Bay area. Before founding his Red Door Grill restaurants, he led Zancanelli Management Corp., which owned and operated several chain restaurant franchises, including KFC. Zancanelli was Mike Kulp’s original partner. He and his father both worked for Harman’s originally before becoming franchisees, first in Grand Junction, Colorado. Our deepest condolences to his family.

12 AKFCF Quarterly Spring 2022


‘FINGER-LICKIN’ GOURMET’: KFC IN AUSTRALIA LAUNCHES 11-COURSE FINE DINING MENU

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FC Australia recently launched a dining experience that may surprise some fast food fans. The restaurant opened a short-term tasting menu in Sydney, complete with 11 courses and a wine pairing. For the price of $75 AUD a person (approximately $53.90 USD), Australians enjoyed this tasting menu between April 1 and April 3 at an undisclosed location in Alexandria, a suburb of Sydney. The prix fixe menu included “Supercharged Wings” cooked over a bed of charcoal and “Popcorn Chicken” served with celeriac soup, mushroom gnocchi, and basil topped with an edible floral garnish, according to a press release. The “La Di Da Drumstick” featured the KFC drumstick dusted with quinoa and gold. British chef Nelly Robinson partnered with the restaurant to develop the lavish courses. Robinson owns his own restaurant in Sydney, which offers an eight-course degustation (tasting) menu that changes every 10 weeks. “Finger-lickin’ gourmet,” a TV anchor remarked on 7NEWS in Adelaide after KFC’s new menu was announced. “Didn’t think I’d ever say that together.” Source: Newsweek

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In the NEWS

THE NEXT GENERATION OF KFC IS ALREADY HERE

K

FC is riding eight consecutive years of positive same-store sales growth — a comeback that’s progressed beyond the turnaround stage into something more lasting. Now, it’s time to complement one streak with another, Chief Development Officer Brian Cahoe told QSR recently. KFC opened 55 new U.S. locations in 2021, for a net increase of four stores. Despite pandemic setbacks, delays, and closures, it represented the first time the chain has been net new unit positive in 17 years. And Cahoe says KFC will go back-toback in 2022. “What you’re seeing in the U.S. is a continuation, and even a building, of momentum of all of the strategies we’ve been bringing to life and the foundation that we’ve put in place,” he says. In domestic markets, KFC’s same-store sales climbed 12 percent in Q4 and 13 percent for all of 2021, both on a two-year basis. Beyond coupling sales with unit expansion, KFC’s multi-year effort to reinforce its brand identity is coming into sharper focus as well. This past year, the chain hit a prior goal when it converted 70 percent of its system to the “American Showman” design, recognizable by bright red-andwhite stripes (like a chicken bucket), bucket chandeliers, and graphics that serve as a reminder of the Colonel’s hard-working background. A modern take on KFC’s roots. Cahoe says the brand remodeled “hundreds of assets” over each of the last few years, pandemic conditions or not. However, during the chain’s sales climb,

there’s been underlying innovation at work. KFC’s digital integration, via delivery, pickup, ecommerce, and app, was a development gaining relevance ahead of COVID. But it’s rushed to the surface, just as it has across Yum!’s portfolio and much of the sector. Yum! posted $22 billion in digital sales last year — a company record. KFC’s U.S. digital sales soared 70 percent, year-over-year, driven by its delivery service channel and e-commerce platform that launched nationwide early last year. In Q4, KFC also introduced “Quick Pickup,” where guests walk-in and grab mobile orders out of cubbies. Cahoe says the update, in essence, is rolled out nationally at this point. All of it, though, is fueling where KFC goes next: the rapid introduction of the company’s “Next Generation” asset base, and all the connectivity that comes with it. KFC opened its first Next-Gen restaurant in Berea, Kentucky. First introduced in November 2020 and debuted in Q4 2021,

it boasts a digital-forward and contactless experience, including the company’s first double drive-thru lane. Additional NextGen stores opened in Westfield, Massachusetts, and Detroit. Sitting today, about 25 percent of KFC’s pipeline are Next-Gen builds, Cahoe says. The only reason the mix isn’t higher is because 2022 represents a transitory phase of sorts, due to construction and general growth timelines. “We went from concept design to last year getting those first locations permitted and built out and now open,” Cahoe says. “And we’ll go through that round of learnings and feedback with franchise operators.” n Source: QSR

Condolences: Roy LeRoy Edward Miller, 73, passed away on Feb. 22, 2022, with his wife, three sons, daughter-in-law, and grandson by his side in Mission Viejo, California. At the age of 15, he began working for KFC and at the same time he met the love of his life, Barbara (McMillin) Miller. In 1981, when he was just 32 years old, Miller bought his first KFC store in San Clemente, California. He went on to purchase four more stores in Oceanside, Fallbrook, San Juan Capistrano, and in Costa Mesa, California. He had a way with people and those that were blessed with crossing his path, quickly came to love and admire him. Our deepest condolences to his family.

14 AKFCF Quarterly Spring 2022


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

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) NMS

National Marketing Subcommittee

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

FA (Or F/A) Franchise Agreement

OEC

Operations Excellence Committee

FIT

Food Innovation Team

PAC

Political Action Committee

FSC

Food Safety Consultation

POP

Point of Purchase

GAC

Government Affairs Committee

POS

Point of Sale

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

Territory Operations Leader

TRP

Targeted Rating Point

VOC Voice of the Customer (formerly CBCC) YUM

Yum! Brands

YRI

Yum! Restaurants International

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GAC Report

16 AKFCF Quarterly Spring 2022


Spring Legislative Update

By Amber Peoples

M

uch of the focus in Washington in the last few months has been on the Ukraine/Russia conflict and its byproducts. The $1.5-trillion FY23 government funding legislation that was signed by President Biden in March included $13.6 billion for humanitarian and lethal aid for Ukraine. This is alongside a comprehensive response from the U.S., NATO, and other allies featuring economic sanctions and a push for decreasing reliance on Russian energy.

Spring 2022 AKFCF Quarterly 17


President Biden visited Europe to meet with leaders to discuss the ongoing strategy to limit the loss of life and to protect Ukrainian sovereignty, but there is no plan for a U.S. military intervention. The White House also announced in March that it is planning to release approximately one million barrels of oil a day from the U.S. Strategic Petroleum Reserve for 180 days in an attempt to combat soaring gas prices and to ease Two bills to compete with China the financial impact on Americans from inflation. by bolstering semiconductor D.C. Circuit Judge Ketanji Brown Jackson completed her manufacturing in the U.S. Supreme Court nomination hearings before the Senate have passed the chambers, Judiciary Committee and was and the process is underway confirmed to serve on the Supreme Court. She will refor a conference committee to place retiring Justice Stephen reconcile differences. Breyer, keeping the court at a 6-3 “conservative” slant.

Senate and House leadership are currently negotiating several legislative packages that could pass by summer. Two bills to compete with China by bolstering semiconductor manufacturing in the U.S. have passed the chambers, and the process is underway for a conference committee to reconcile differences. There is a tentative agreement to pass an additional $10 billion in COVID relief, aimed mostly at the development of therapeutics and studying the effects of “long COVID.” Congressional Democrats also are exploring a new proposal to increase taxes on wealthy Americans, specifically unrealized gains, with the ultimate goal of deficit reduction. While the “Build Back Better” plan remains extinct, Democrats are hoping for some kind of legislative victory they can claim as their own ahead of the midterm elections. David Weil, President Biden’s nominee to lead the Department of Labor Wage and Hour Division, was defeated by the Senate in a 47-53

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 this year 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 Kevin Schlutz James McKenzie Diana Myers Lesley Hottinger Susan Schmidt Joan Bowling Dale Black Vijay Patel Robert Widder Mark Lambos Douglas Smith Christopher Walker James Mayer Nanette Walker Mohamad Ali Khorshad Heather Dexter

18 AKFCF Quarterly Spring 2022

Northeast Ray Aley Cheryl Aley Keith Cole Larry Starkey Frederick Gallant Stacey Dion Tommy Cecconi Tony Cameron David Evans Northwest James Jackson Lilellen Buckner Fred Jackson Todd Stewart Chris Vollenhals Marvin Jorgensen Cindy Jorgensen Ralph Harman

Southeast Doug Knipp Richard (Dick) West Austin Felker William (Bill) West Gurpreet Sandhu Carl VanNostrand Tim Harris Michael Galloway John Brown Vicki Easter Sherry Houston Sandra Felker Eric Felker Gary (Steve) West Leslie Sharp Paul Cantrell Keith Coward Andy Rosen

Dale Moulton Michael Fulenwider II Madison Shoffner Kelly & Jay Shoffner Chip Booth Southern California Shahid Chaudhry Raziel Valiente Lonnie Noble Patricia McBrayer Southwest William (Bill) Ford Kelli Spring Shaheen Ahmed


vote. Democrats Joe Manchin (WV), Kyrsten Sinema (AZ), and Mark Kelly (AZ) voted against Weil’s confirmation in what is considered a win by business groups. Stay Involved, Donate to the AKFCF PAC With the 2022 midterm elections only a few months away, it is critical that franchisees continue to support candidates that represent the best interest of small businesses. Without members in Congress on the right side of our issues, efforts to increase taxes on businesses and on individuals earning over $400,000 per year could resurface alongside other burdensome new business laws and regulations. Please keep fighting for our industry by contributing to our allies and supporters. You may make your 2022 AKFCF PAC donation online by visiting our portal on the AKFCF website in the Government Affairs tab. For more information, please contact your regional GAC representative or Amber Peoples of Polaris Consulting, LLC (apeoples@polariswdc.com). n

Without members in Congress on the right side of our issues, efforts to increase taxes on businesses and on individuals earning over $400,000 per year could resurface alongside other burdensome new business laws and regulations.

Spring 2022 AKFCF Quarterly 19


2022 CONVENTION WRAP-UP

20 AKFCF Quarterly Spring 2022


Inspiration and opportunity defined our first in-person Convention in two years.

By Kelly Rodenberg and Cory Sekine-Pettite

A

KFCF’s 2022 Annual Convention, held March 7–10 at the Gaylord Palms Resort and Convention Center in Orlando, Florida, was just what the KFC family needed at just the right time — a path forward combined with a heavy dose of inspiration and opportunity. Unquestionably, part of this year’s Convention success was all its feelgood touchpoints, from a spectacular three-hour welcome reception to a magical private event at Universal, to meeting up with colleagues and suppliers in the Trade Show, to sharing time with family and friends during the networking breakfasts and lunches. But what was most exciting to us were the numbers; they were surprisingly strong, considering that we just ended a ride on the Omicron wave. The 2022 Convention still managed to attract over 1,800 attendees from all our domestic regions as well as from Mexico and CARIBLA. Safety protocols were in place, including masks and COVID tests for those who wanted them. Leading the way has been our AKFCF President, Brandon Robertson, whose words were a call to action for the Association. “The Power of Opportunity goes beyond a Convention theme, and it lives beyond this week,” he said. “The Power of Opportunity is a way of thinking and a path to greater success. It is having the courage to take risks and believe in yourself. It is taking the initiative and working for something that has a broader impact. It is adapting to new realities and shifting business into the future.”

Spring 2022 AKFCF Quarterly 21


Keynote Speaker Mike Rayburn

G

eneral session opening speaker, Mike Rayburn hit the nail on the head when he asked the group “What if? What if you dared to do more, be more, and reach for more?” That’s going to be the spirit of our business for the next year or more as well — we’re going to be learning more, creating more, and growing more. It’s going to be challenging for all of us, but we’re going to push through, and it is going to get better. And yes, risk-taking is required for our brand, for our industry, but we’re going to be better off than where we were before the pandemic. “It’s time to revive thinking big,” he said, “like writing music you can’t play. …Time eventually breaks everything. Plan for it and innovate. Stay ahead of time before it’s too late.” We think everyone left the Coastal Ballroom on Tuesday inspired to do more and be more to grow their businesses. And perhaps some of have decided to take up the guitar!

KFCC General Session

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n Wednesday, KFC President, Kevin Hochman, and the KFC Leadership team took the stage. Before Kevin and his team ran through their vision for the KFC business, Sabir Sami, the new CEO for the KFC Global Business addressed the audience. Sabir has responsibility for over 27,000 KFCs spanning 149 countries that represents $31 billion of retail sales. He

Sabir Sami

22 AKFCF Quarterly Spring 2022

joined YUM! Brands in 2009. Hochman said he’s already brought fresh perspective on some of our biggest challenges in the U.S. business. Kevin began by referring to a quote from Notre Dame Coach Lou Holtz: Luck is what happens when opportunity meets preparation. And that preparation prepared our KFCs for the opportunity that COVID brought to our business. He said, “There was some luck involved in our past two years of success, but a big part of that luck was the work you and your teams and my team did to get this Brand headed in the right direction.” The KFC Leadership team shared their vision on how we’ll get to be a $10-billion Brand with 5,000 restaurants and $2 million AUV’s. They talked about how we’ll build out the menu and attract younger audiences to KFC, design and build new assets to address new opportunities, accelerate new technology to remove friction for guests and team members, and most importantly they talked about the things we need to do to run and operate $2-million KFCs. The first KFC panel was on the topic of 4-Wall Economics and accelerating growth and prof-

itability. A few statistics that were shared included: • 2021 was the best sales comp growth in over two decades • Over the last two years, topline growth has increased 13 percent • Since 2014, over half of the KFC System restaurants have changed franchisee ownership • Just last year, we did 52 M&A deals, 355 restaurants at over $500 million • And another $1 billion invested in new units and remodels for a total of over $3 billion invested in the brand. • 75 percent of those deals mentioned have been from franchisees outside of our largest franchisees


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• In the past four years, we’ve seen about 10 percent of the system now under ownership by new franchisees • More new built restaurants for the first time in 17 years. Following the panel, John Mays, KFCC director of equity and inclusion, spoke passionately about how we will fix long-term staffing retention and bring the next generation of customers into KFC. Mays also announced the launch of the new Tinsley Inclusive Changemaker Award, named for franchisee George Tinsley, its first recipient. Starting next year, this award will be given out annually at Convention to recognize a franchisee who is breaking barriers, actively leading inclusivity in their community, celebrating diversity inside their organization and out and promoting equitable outcomes for guest and communities we serve. In the next panel, Hochman introduced the new Chief Marketing Officer, Nick Chavez. For the past 21 years, Nick has worked in marketing for two world-famous brands — Yahoo and Nintendo. Nick said, “one of the biggest reasons I joined the company is to tackle the challenge of attracting new and next generations of customers to KFC.” Nick explained two big insights from his career that he thinks applies to KFC right now: 1. Parents aren’t BUYING if young people aren’t asking. Kids are not asking for KFC. 2. Kids aspire to be OLDER kids, OLDER kids aspire to be TEENAGERS, Teenagers aspire to be YOUNG ADULTS. We need to unlock full family demand.

Nick emphasized that we need a simpler and more relevant menu and that’s when Chief Operating Officer, Monica Rothgery came to the table. Monica said, “We have to simplify operations, which means two things — we need technology, and we must simplify the menu — for our teams and our customers.” Monica discussed the creation of FRYLAB, and it is now being used in 185 restaurants. Based on the learning, she believes it’s time to take FRYLAB mainstream. Courage is doing hard things when the outcome is not guaranteed, she said. Nick re-iterated that we are not alienating our core 57-year-old customer, but we need to think about expanding the audience. KFC teams are considering every element of the customer experience, trying to make it more attractive, more engaging, and more rewarding at every step of the customer journey. The final panel covered elevating the Guest Experience and Making it easier to run restaurants. Chris Caldwell, KFC CIO shared that we are making great progress, but we are just getting started. He shared the following accomplishments:

Tinsley Inclusive Changemaker Award

24 AKFCF Quarterly Spring 2022

• Finishing the year at 9-percent digital • Brand new KFC.com build and app • App is gaining ground with 2+ million downloads • App review 4.5+ • Quick Pick Up made it real with full national advertising • Apple Pay and Google Pay He would love for the brand to get 100 percent of its orders from digital screens and the journey is to get to $1 billion in digital sales. We must continue to innovate on our digital platform and modernize our drive thru experience to keep our customers engaged, he said. Brian Cahoe addressed the new design builds that will accommodate taking our drive thrus to the next level. The KFC of the future looked pretty cool! And from the looks of the new restaurant designs, the future is just around the corner. Going forward, Monica emphasized that we need to help our teams get back to excellence with friendliness and quality performance. She said there are two ways to simplify: menu and technology. Let’s make hard tasks easier and automate mundane tasks, she said. Let’s provide tools so RGMs can get ahead of the game instead of reacting. She discussed the Mobile Manager and QPM (Quality Production Manager). QPM is currently in eight franchise restaurants and soon will be in 35. She also talked about the new KDS (Kitchen Display System). She told Chris we need a cool, modern system like our sister brand Justin Stewart Taco Bell.


Andy Rosen and Celebration Restaurant Group

Monica closed on the topic of getting back to great customer service and providing a great guest experience every time. She said “deep down, we must accept that we, together, need to do better by our guests. We need to remember why we are here and all of us need to re-commit to service. It’s about the customer.” In addition to the Tinsley Inclusive Changemaker Award, KFCC also handed out the following accolades during their presentations: • Justin Stewart was honored with the Bucket Award

Dave Evans and DE Foods

Clinton Lewis

Jim McKenzie

• The KFCC President’s Award was presented to Jim McKenzie • Dave Evans (DE Foods) and Andy Rosen (Celebration Restaurant Group) each received

the Bold Restaurant Developer of the Year Award • The PETE Award was given to Clinton Lewis for being a strong brand partner.

Spring 2022 AKFCF Quarterly 25


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Workshops

T

he Education Committee developed and presented three workshops during our time in Orlando. As Rob Rianna explains in his column on page 55, “Being in person, allows us to create much more dynamic presentations when compared to the online seminars we had to develop last year.” This year’s workshops included: “Guest Service with a Post Pandemic Mindset,” “Navigating Inflationary Pressures,” and then the closing presentation from Justin Patton on building stronger connections. During the guest service presentation, Jennifer Lett, KFC-US director of guest experience; and Jeff Long, KFC-US director of digital ventures, spoke about how the pandemic shifted consumer behavior and

brought new opportunities to KFC. They explained what customers are looking for today as well as how to prepare for new consumer demands in the near future because the restaurant business has seen fundamental shifts post-COVID. In the inflation workshop, Amber

Closing Keynote Speaker Justin Patton

C

losing out Convention was guest speaker Justin Patton, who some of you may have recognized from RGM Connect. He challenged individuals to use their presence to build stronger trust and connection — both in the workplace and with the people they love the most. He reminded us all how to use what we learned over the week at Convention and apply it to our everyday lives both personally and professionally. “Trust is your biggest competitive advantage,” he said. “You have to work to build trust with your teams and with your customers.” The three steps to building that trust, he said are transparency, tact, and togetherness. Patton also spoke of creating “psychological safety” in our workplaces. Check in regularly with your teams, he said, and encourage idea sharing, feedback, and honesty. “You are paid to have a point of view in a company, so speak up,” he concluded.

28 AKFCF Quarterly Spring 2022

Larimore, KFC-US director of strategic planning; Sean Robertson, KFC-US franchise finance manager; and Diane Simrall, KFC-US director of franchise finance, provided attendees with vital resources to protect 4-Wall Economics, including tools to help analyze and protect restaurant-level profitability during this unprecedented inflationary period. Read more about these programs on page 55 in Rianna’s final column as Education Committee chair. We wish Rob continued success in new adventures outside of the AKFCF Family.


Opening Reception

Spring 2022 AKFCF Quarterly 29


Awards & Recognition AKFCF Awards hroughout the week, during different presentations and sessions, the AKFCF leadership took time to recognize and bring on stage those individuals whose commitment to the brand and the Association is both exceptional and inspirational. We have a larger feature on this year’s award winners beginning on page 36, but here is a glimpse at who was honored. If you’ve yet to do so, please send a note of congratulations to the following franchisees: AKFCF President’s Award – Noah Hommerding. The President’s Award recognizes and honors a member who has consistently worked to support the mission of AKFCF, going above and beyond what anybody would expect. AKFCF John R. Neal Award – Mike Kulp. The AKFCF annually awards the John R. Neal Award to a franchisee who has made exceptional contributions to our system through their service or affiliation with the NCAC. Colonel’s Legacy Award – Kelli Spring. The Colonel’s Legacy Award recognizes a franchisee who embraced the wonderful gift of continuing a family tradition of becoming a franchisee in our great brand! AKFCF Lifetime Achievement Award – Dale Black. The Lifetime Achievement Award recognizes an individual who has given decades of outstanding service and voluntary leadership spanning a career in franchising. An individual who has dedicated him or herself to serving all of us! AKFCF Outstanding Partner Award – Dan Gans. This award recognizes an individual who is not a KFC franchisee, but who has made a substantial contribution to the success of our system.

T

President's Award winner Noah Hommerding

John R. Neal Award winner Mike Kulp

Colonel's Legacy Award winner Kelli Spring

Lifetime Achievement Award winner Dale Black

Outstanding Partner Award winner Dan Gans

Service Awards e all know that our businesses thrive because of the support we receive from our families. For many KFC franchisees, this family connection runs deep — generations deep. To recognize this longevity, KFCC presents its Service Awards and we highlight those franchisees who have served their communities for 40-plus years in the Quarterly. The following franchisees were recognized during a presentation at Convention, and we thank them for their years of service:

W

Harman Management Corp., 70 years James Gyarmathy, 60 years Richard West, 55 years David White, 55 years

30 AKFCF Quarterly Spring 2022

Fred Ruth, 55 years Henry E. Durbin, 45 years Alice Schleicher, 45 years Joseph Cavegn, 45 years

Donna Sturkie, 40 years Thomas Daniel Crow, 40 years Michael Shahbazi, 40 years Kevin Schlutz, 40 years


Hard Way Award very year during the Convention, the NCAC presents its Hard Way Awards to some of the brand’s most dedicated supporters who demonstrate their commitment to the Colonel’s values. According to the Colonel, the Hard Way means “the keeping of promises, the deliverance of value in goods, in services and in deeds, with sound merit and good ethics.” This year, NCAC Vice Chair Tom Broome presented the award to Emma Horn, managing director of KFC Foundation; Bill Byrd, owner

E

of PMTD Restaurants; and Ron Gardner, general counsel for AKFCF and NCAC. “This year, we’re not going to just give it out to one recipient, but rather to three very deserving individuals,” Broome said. “Emma embodies great leadership and is so deserving of this Hard Way Award. …Bill was the leader instrumental in the evolution of ROCC with an ongoing pilot focused reducing total and repeat deviations, improving the pass rate on food safety, and improving the overall perception of the

brand. His partnership with Monica to get this done was huge and greatly appreciated by franchisees (and our RGMs) across the country. …Ron is an engaged and thoughtful partner that really is the absolute best at what he does. I know some of us call him for questions about our own businesses and I know he is instrumental as a valued partner to me, the rest of the NCAC Committee, Karen and the NCAC staff, along with the KFCC legal team.” Congratulations to all our winners!

Emma Horn

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Because of you, the KFC Foundation raised more than $188,000 at Convention! By Elizabeth Edrington We are overwhelmingly grateful for your support of the KFC Foundation during our Colonel's Classic Golf Scramble, Wine & Dine Fundraiser, live auction, and silent auction. We have some big ideas in the pipeline to support and empower KFC restaurant employees and your contributions at Convention will help bring those to fruition! Together, we are changing lives. COLONEL'S CLASSIC GOLF SCRAMBLE It was an absolutely beautiful day of laughing, golfing, and enjoying good company at Celebration Golf Course on Monday, March 7! Thank you to all who attended and made this scramble possible. Todd Stewart, Brian Jones, Ben Johnson, and Glynn Alan won the scramble and will be the first to have their names engraved on the Colonel's Classic Golf Scramble Champion trophy. Our Chipping Contest winner was Andrew Yanoscik, and our Long Drive winner was Travis Wright. Congratulations to all! The KFC Foundation extends a special shout-out to our amazing volunteers. We couldn’t have done it without you! SNAG SOME LIMITEDEDITION COLONEL'S CLASSIC GEAR! Scan the QR code to purchase a striped polo, hat, head cover, or valuables pouch — or all of the above! A huge thank you to the sponsors of the Colonel's Classic: Accuserv, Basic, Braze, Harman’s, KBP Foods, Marcus & Millichap: Hines Group, McLane, People’s United Bank, PepsiCo, Restaurant Supply Chains Solutions,

32 AKFCF Quarterly Spring 2022

and Stewart Restaurant Group. Also many thanks to Dr Pepper and Justin Stewart for donating items for the Raffle. WINE & DINE FUNDRAISER On Wednesday, March 9, we had a blast dancing the night away to the incredibly talented and entertaining Emerald City Band! The filet entree was delicious, Del Dotto wine flowed all night, and the silent and live auction bidding wars were fierce. Thank you to everyone who attended, bid on items, bought Wall of Wine raffle tickets, and donated during the paddle raise. We are incredibly grateful for your generosity. A huge thank you to the sponsors of the Wine & Dine Fundraiser: OnDisplay and Whirley Drinkworks! Many thanks to Kevin Schlutz, Nanette Walker, Jim Olsen, Justin Stewart, and Alpha Omega for donating bottles to our Wall of Wine Raffle. Thank you, thank you, thank you to all who donated items for our silent and live auctions: • AKFCF • Basic • Basic American Foods • Beyond Meat • Booth Production Group • Brian & Christine Cahoe • Brother International • Comcast • Conagra • Del Dotto • Dell • Dr Pepper • Emerald City Band • FLG Chicken • George’s • Henny Penny

• • • • • • • • • • • • • • • • • • •

Joan Bowling Justin Patton KBP Foods Kevin Hochman Kitchen Brains McCormick NCAC Parapet ParTech Pepsi PRP Wine Ron Gardner & Melanie Bootes RoofingSource Sacramento Kings Stewart Restaurant Group Summit Innovations Corp. Ventura Foods ViaTech Westrock


Universal Orlando Resort Tuesday afternoon brought heavy rain to Orlando, but fortunately, it stopped, and a rainbow came out just in time for attendees to make their way over to our private event at Universal Orlando Resort. Guests enjoyed a fun-filled block-party in Citywalk with food, drinks, and live music at each of the venues. Then we headed over to Islands of Adventure for even more excitement. The games, rides, and attractions did not disappoint. The new VelociCoaster was a hit (well for some)! It was a great night for the 1,400+ thrill seekers who attended. We reconnected, learned, and grew in a safe and meaningful way. Thank you for joining us for an incredible program in Orlando!

Spring 2022 AKFCF Quarterly 33


Women's Leadership Breakfast

Many Thanks to Our Convention Committee Brandon Robertson (Chair) Kelly Rodenberg Keith Cole Jennifer Thomas Deb Newton Leslie Sharp Justin Stewart Kevin Schlutz Matt Hansen Roger Sparks Zaira Guevara

Thank You, Sponsors DIAMOND

George’s, Inc.

CraftMark Bakery

McCormick & Company, Inc.

PepsiCo

Henny Penny Corp.

Cummings Resources LLC

Middleby

PLATINUM

Kitchen Brains

Custom Seating Inc.

Pacific Premier Bank

Koch Foods, Inc.

Delphi Display Systems

PAR

Procter & Gamble Professional

Dupont

Parapet Studios LLC PrepWizard

Ecolab

Revenue Management Solutions, LLC

Essity Professional Hygiene Facility Concepts Inc.

Quail Digital

Genpak LLC

Simplot

Flowers Foods

RJP Consulting Group

Keurig Dr Pepper

Tyson Foods, Inc.

General Mills

Rubicon

McLane

BRONZE

Graphic Packaging International

Simmons Prepared Foods

OK Foods, Inc.

3M

Griffith Foods

Restaurant Technologies

Alconox Inc.

Grubhub

STRATACACHE

Welbilt Inc

Aspire Bakeries

Gycor International

SILVER

AT&T

Harris Tea Foodservice

Anchor Packaging

Auspex Capital, LLC

Heartstyles – Yum! Brands

Atmosphere

Awningtec USA Inc.

Huhtamaki Inc.

Barco Uniforms

Bank of America

Idaho Pacific Holdings

Brakebush Brothers, Inc.

BMO Harris Bank

InfoSync Services

Bunge North America

BrandPoint

InSite Real Estate

Comcast Business

Café Valley Bakery

Dallas Group - Magnesol

Capitol Light

KineticoPRO Total Water Care

Envysion

Case Farms

Pilgrim’s GOLD Beyond Meat

34 AKFCF Quarterly Spring 2022

Kraft Heinz

Skechers Summit Innovations Corp. Testo North America The Bama Companies, Inc. TRANSACT TECHNOLOGIES Trinity Capital/Citizens Unified Brands Western Alliance Bank Westrock Whirley Drinkworks! Winston Foodservice Workstream


Vendor Partner Trade Show

Spring 2022 AKFCF Quarterly 35


2022 AKFCF Convention Exhibitors 3M

CS&A Insurance

KFC Foundation

RSCS Member Programs

Accuserv

Cummings Resources LLC

KFC Harvest

Rubicon

Acrelec

Custom Seating

KFCC

Scot Young Research

ADP

DailyPay

KineticoPRO Total Water Care

ServSafe

ADT Commercial

Dal-Tile Corp.

Kitchen Brains

Sharp Electronics Corporation

Air Care Experts

Dallas Group of America

Koch Foods, Inc.

Shoes For Crews

AKFCF Government Affairs

Delaget

Kraft Heinz

Silikal America

Alconox, Inc.

Delphi Display Systems

Lamb Weston Sales

Simmons Prepared Foods

Algonomy

Dupont

Lennox International

Simplot

AmerCareRoyal

Eagle Eye Networks

Loomis

Skechers

Anchor Packaging

Ecolab

Solink

ARCVISION

Electro-Matic Visual

LP Network dba Security Source

Armor Security

Envysion

Aspire Bakeries

Essity Professional Hygiene

AT&T

Everbrite, LLC

Atlas Sign & Awning Company

Facility Concepts

Atmosphere

Farm Frites

Auspex Capital

Flowers Foods

Auxilior Capital Partners, Inc.

FranBiz Network

Awningtec USA, Inc.

Franke Foodservice Systems

AyrKing Corporation

General Mills

Bank of America

Genpak

BARCO Uniforms

George’s Inc.

Barnett & Associates Basic American Foods Berry AI Beyond Meat BMO Harris Bank Brakebush Brothers, Inc BrandPoint Brother International Corp. Bunge North America Cadence Bank Café Valley Capitol Light Careismmatic Case Farms CH Guenther City National Bank Claxton Poultry CMI Comcast Business Conagra Brands Copesan CraftMark Bakery Craig Specialty Advertising 36 AKFCF Quarterly Spring 2022

McCormick

Spellbound Development Group

McLane

Sprokets.ai

Middleby Corporation

SRS Real Estate

Mood Media

STRATACACHE

National Franchise Sales

Summit Innovations, Corp

NCCO Foodservice Solutions

Summit Properties

NDA, Inc.

Sunstone Credit

Netspend

Synovus

OK Foods

Sysco IFG

On Display

T&S Brass and Bronze Works

Oracle Food and Beverage

Tapcheck

GLMV Architecture

Pacific Premier Bank

Taylor Company

Graphic Packaging International

Panifresh

Testo North America

PAR

The Bama Companies, Inc.

Griffith Foods

Parapet Studios LLC

The Coca-Cola Company

Grubhub

Paychex

GSE LLC

Paycor

The Imagine Group, GFX International

Gycor International, Ltd.

People’s United Bank

Harris Tea Foodservice

PepsiCo International

Heartstyles – Yum! Brands

PepsiCo

Henny Penny

Performance Food Group

HME

Pilgrims

Hourwork

PrepWizard

Huhtamaki

Procter & Gamble Professional

Hyginix

Quail Digital

ICS/Thermalrite

R.F. Technologies, Inc.

Idaho Pacific Holdings

Realty Income Corp.

InfoSync Services

Restaurant Technologies, Inc

Wells Fargo

Insight/Dell

Revenue Management Solutions

Western Alliance Bank WestRock

RJP Consulting Group

Whirley Drinkworks!

RoofingSource

Winston Foodservice

RSCS Connection Partners

Workstream

InSite Real Estate Integrate Solar InterMetro Industries ITW Keurig Dr Pepper

RSCS Development & Equipment Solutions

Trane Transact Technologies TREDSAFE / Wal-Mart Trinity Capital LLC Tyson Foods Inc. Unbridled Capital Unified Brands Vericast ViaTech Publishing Welbilt Inc


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Going Above & Beyond

38 AKFCF Quarterly Spring 2022


AKFCF honors five family members for their exceptional service.

By Cory Sekine-Pettite

E

ach spring during the AKFCF Annual Convention, the association takes great pleasure in recognizing and acknowledging the incredible work and dedicated service of members who go above and beyond, not only in their community service as KFC franchisees but in their volunteer work with AKFCF as well. The hours that they put in with regional and national committees benefits all of us, so our annual awards program is one way of showing our appreciation. This year, in addition to the coverage provided in our Convention wrap-up feature, we wanted to give these honorees their own feature in the Quarterly. Continue reading to learn a little more about each winner and what their award means to them.

AKFCF Award Winners AKFCF President’s Award – Noah Hommerding AKFCF John R. Neal Award – Mike Kulp Colonel’s Legacy Award – Kelli Spring AKFCF Lifetime Achievement Award – Dale Black AKFCF Outstanding Partner Award – Dan Gans

Spring 2022 AKFCF Quarterly 39


Going Above & Beyond

AKFCF President’s Award – Noah Hommerding

“From AKFCF to NCAC to OEC, he has made a difference in the lives of franchisees by giving his time and talents to make things better” Brandon Robertson

40 AKFCF Quarterly Spring 2022

The President’s Award honors members of the AKFCF who have made substantial contributions to the development of the Association and the KFC brand. Individuals adhere to high standards of professionalism, decency, and collegiality. It is awarded to franchisees who have consistently worked to support the AKFCF’s mission statement and have performed “over and above” what has been required. This award is presented each year at the president’s discretion and is approved by the executive committee. No one is more deserving of this honor this year than Noah Hommerding. In his 20-plus years with the AKFCF family, he has volunteered with OEC and UMW (now GMW). He has served as that region’s president twice, and served on the OEC, Operations Sub Committee, Buffet Task Forces, POP Subcommittee, the KFC NPC board, Partner-

ship Survey Committee, and was treasurer of the Greater Midwest. Hommerding currently works as senior director of marketing and development at Stewart Restaurant Group, helping to oversee 120 restaurant locations in 15 states — primarily west of the Mississippi River. “I’m honored to receive the President’s Award, especially coming from someone like Brandon,” he said. “I’m certainly appreciative of the recognition, but also have realized the work I do throughout the various aspects of the AKFCF is part of how I find purpose in life — continue learning as a person and creating lifelong friends. For that, I’m very grateful.” “Every AKFCF President has the privilege of honoring a special individual who exemplifies all that is important and truly valued by the Association,” Brandon Robertson said of Hommerding during the awards presentation at Convention. “Over the years, Noah has played a key role in many


of our careers and friendships. I feel fortunate to have him by my side as a colleague, and a close friend.” “From AKFCF to NCAC to OEC, he has made a difference in the lives of franchisees by giving his time and talents to make things better. He has served the system in so many ways it’s hard to count, but I believe he holds the record for number of times he has served as acting president of a region,” Robertson continued.

“For two decades, Mike Kulp’s passion for creating a wonderful place to work, a wonderful place to eat, and a wonderful place to own has created a unique culture at KBP Foods.” Brandon Robertson

AKFCF John R. Neal Award – Mike Kulp

This award recognizes substantial contributions made to the AKFCF through service to the NCAC. It is the strong relationship between these two franchisee-centric organizations that have made the AKFCF franchisees the important voice in the franchise system that they are today. No other national franchise organization reveres its franchisees or values their opinion as much as KFCC — in significant part because of the work and partnership done, in good times and in bad, by the AKFCF and the NCAC, working together. Kulp, whose KBP Foods operates 998 restaurants in 31 states, is known as being completely dedicated to improving the brand in ways that benefit us all. Whether it be through negotiating tough terms on franchisee matters with our partners at KFCC, testing numerous new

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Going Above & Beyond

product initiatives, assisting in the development of new restaurant processes and procedures, or being actively involved in multiple committees within the system, including the NCAC, Brand Committee, Ops Sub Chair, NMS, RSCS Chair, REC, KFCPC, Global Franchise Council YUM, and 3 concept Council YUM. There are many franchisees and partners who have worked with him behind the scenes and have experienced first-hand his commitment to the betterment of each and every franchisee in the system over the past 22 years. “For two decades, Mike Kulp’s passion for creating a wonderful place to work, a wonderful place to eat, and a wonderful place to own has created a unique culture at KBP Foods,” Robertson said at Convention. I chose Mike for many reasons, but most importantly because he is always willing to step in when he is needed no matter

42 AKFCF Quarterly Spring 2022

what the problem and, in some cases, even when it doesn’t benefit him and his organization.” Kulp says he is humbled by each and every accolade bestowed upon him, including the John R. Neal Award, adding “It makes me very proud of what our team has accomplished.”

Colonel’s Legacy Award – Kelli Spring

The Colonel’s Legacy Award is awarded to second-, third-, or even fourth-generation franchisees who have made a significant impact within their region or nationally. This honor recognizes individuals for their noteworthy contributions, innovative thinking, and volunteerism. The award is presented each year at the president’s discretion and is approved by the Executive Committee. This year’s honor goes to Kelli Spring. Spring is a third-generation KFC franchisee. Her grandmother, Mercedes Hill, started the business in


“I am very honored that my fellow KFC franchisees awarded me this great honor. I strive daily to maintain the highest standards in my personal life as well as our business.” Kelli Spring March of 1969 and worked hard to build the franchise on the Navajo Reservation in Shiprock, New Mexico. As a child, Spring would sit on the counter and help to make mashed potatoes & gravy, coleslaw, and potato salad from scratch. After working in the banking industry, she returned to the family business. Spring helped to bring KFC-Shiprock into the digital age by getting their computers up to date and moving financial procedures to digital instead of handwritten. She has significantly improved the restaurant. Spring started working as the RGM in 2011, and took over the business when her mother, Sheila Boespflug, retired in 2014. In addition, she has served as a state director for the Southwest KFC Franchise Association, as well as serving as the Southwest Association’s secretary for four years. “I am very honored that my fellow KFC franchisees awarded me this great honor. I strive daily to maintain the highest standards in my personal life as well as our business,” Spring said. “I am also honored because this reflects on the family — my grandmother who started the business, my mother who has worked in it since it was opened, and the wonderful managers I have and crew. They have all taught me and

Spring 2022 AKFCF Quarterly 43


Going Above & Beyond

supported me through their actions and guidance, and their willingness to support me while I am out of the office working to make AKFC stronger and better.”

AKFCF Lifetime Achievement Award – Dale Black

No, he isn’t retiring, but Dale Black certainly has earned the AKFCF Lifetime Achievement Award. This award recognizes an individual who has given decades of outstanding service and voluntary leadership spanning a career in franchising. It is presented each year at the AKFCF president’s discretion and is approved by the Executive Committee. The award recognizes individual accomplishments and contributions to the Association community and is a call for continued service within the system. Award winners serve as role models and mentors for individuals who are interested in making a commitment to a career as a KFC franchisee.

44 AKFCF Quarterly Spring 2022

Black, who has been a KFC franchisee in Nebraska for 39 years, has worked tirelessly for the AKFCF family at both the regional and national levels. He is a man of action rather than words, and is quiet when asked to share his accomplishments, so we’ll do the bragging for him. Black began his career in KFC while a college student attending the University of Nebraska. He started like many young people do today — he needed a job to help pay for his books and rent. He took a job at the local KFC and was quickly promoted, becoming an Area Coach by the time he graduated. Four years later, Black put together a buyout plan and became a franchisee in 1983. Today, he owns four restaurants. He represented the old UMW in various national and regional committees, including the regional executive committee and serving as UMW president (1994-95). Black brought the Milward Brown pricing tool to the system. He was a member of the


“I undertook various assignments because leadership asked and I fulfilled those tasks to the best of my abilities.” Dale Black

but I could see the benefits to the KFC franchisees and brand.” “I am grateful for the recognition, but my message to my fellow franchisees is when asked to serve, [believe that] you and your business will benefit,” he continued.

AKFCF Outstanding Partner Award – Dan Gans

Econometrics study (actually, the primary architect of this key initiative), Merit Contract Committee, and the UFPC cross concept small bird committee, just to name a few. Black also served as AKFCF President from 2011-2012. “Dale’s contributions to our system are varied and immense,” said AKFCF President Brandon Robertson during the awards presentation at Convention. “Indeed, there may be no one individual who has done more to help secure a focus on unit profitability in the last 20 years than Dale Black.” “I undertook various assignments because leadership asked and I fulfilled those tasks to the best of my abilities,” Black said. “Not to gain notoriety,

The AKFCF Outstanding Partner Award recognizes an individual who is not a KFC franchisee, but has made a substantial contribution to the success of our system. This award honors those who have provided us with best-in-class product, support or service, or one who has made an exceptional impact across the system. Who better exemplifies this partnership than Dan Gans, founder and managing principal of Polaris Consulting, LLC? Gans is a veteran of Capitol Hill, having worked for congressmen and for a top 20 lobbying firm before founding Polaris. He has worked with AKFCF for more than 17 years and regards the Association as his first client. Gans continues to work tirelessly with members on Capitol Hill and key reg-

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“Dan Gans has protected our interests as franchisees and is always looking out for the next bill that will impact our business.” Brandon Robertson

ulatory authorities around Washington D.C. to support the small business community and the restaurant industry. “We are a full-service consulting firm that manages government relations for many companies, trade associations, and coalitions across the country,” Gans said. “For AKFCF, we work closely with the Government Affairs Committee and the Yum! Brands government team to advance the legislative priorities of franchisees with federal regulatory agencies in Washington D.C.” Gans has been honored by the Association before. Just two years ago, he received the Brand Contribution Award and the Government Affairs Freedom Award. Speaking about his most recent honor, he said: “It was incredibly unexpected, but I’ve often looked at AKFCF as close to family as any client that I have. I’ve always appreciated that when I started my firm, they were among the first to sign up. We have had a truly spectacular partnership ever since. I consider it an honor and a privilege to represent such a great group of people and to be recognized. I hope the partnership continues for many more years to come.” “I was fortunate to serve on the GAC and walk the halls of Congress with Dan Gans. The number of people who would greet him in the halls or ask for his help was mind-blowing to me,” Robertson said at Convention. “We could not have had a better partner to carry our voice to Washington. From regulation to taxes to PPP loans, Dan Gans has protected our interests as franchisees and is always looking out for the next bill that will impact our business.” n

Grateful to the KFC Franchisees for their continued support and partnership.

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46 AKFCF Quarterly Spring 2022


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Can I Ask You a Question? By Jim Sullivan

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s a result of all the challenges we faced in the global pandemic over the last two years, many operators are cautiously optimistic about success in the near-term and long-term. The imprudent ones are putting their hopes on “normal” returning. Wiser operators are not grasping for normal, but instead reaching for better. And the smartest owners of all know they don’t have all the answers. But they’ve learned to start asking the right questions.

48 AKFCF Quarterly Spring 2022


Spring 2022 AKFCF Quarterly 49


Knowing what to ask and how to ask it can both clarify the real issues and expose hidden opportunities and obstacles. When faced with big challenges, knowing how to address the core problem by asking the right question is the key to success. Take Marty Cooper for instance. Way back in 1972, the 45-year-old Motorola engineer was sitting in a concept meeting

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with a team tasked with developing the first commercially viable mobile phone. His colleagues were focused on creating a “portable” phone that was still tethered to a base receiver linked to the copper telephone hard line in the wall. (To be fair, in 1972, the very notion of a portable phone tethered to a landline base was considered radical.) However, Cooper brought the discussion to a dead halt by asking a question that changed the face and course of modern technology and communications: “When we make a phone call, why do we have to call a place?” he asked. “People want to talk to other people, not a house, or an office or a car.” This query propelled the team to think in a completely different direction — a truly mobile phone — which led to the now-infamous DynaTac “brick” phone prototype that weighed a whopping 30 ounces, required a companion briefcase battery, and cost $3,500 when it became commercially available in 1983. Today, the smartphone you hold in your hand is living testament to how powerful the right question can be. Over 60 years ago, Dick and Maurice “Mac” McDonald were struggling with the design for their new restaurant, trying to fit the optimal number of dining room tables and chairs into their limited space and budget. The story goes that they drew and re-drew design options with chalk on a tennis court until Mac asked his brother a simple question: “What if we got rid of the dining room and just had a walk-up window for ordering?” Then some 20 years later, one of Ray Kroc’s McDonald’s franchisees reportedly asked another good question: “What if the customer didn’t have to get out of their car at all?” And so, the drive-thru window was born. And of course, the Colonel asked: “What if I could lease my chicken recipe instead of opening all those restaurants on my own?” Knowing what to ask and how to ask it can both clarify the real issues and expose hidden opportunities and obstacles. Asking questions allows operators to improve their people, performance, and profitability by leveraging the team’s insight and feedback. None of us are as smart as all of us. For instance, you could tell your managers: “We


The skill of artful questioning is critical in a post-pandemic digital world that is drowning in information and starving for knowledge. want to raise sales 10 percent in the next quarter,” or instead you could ask them “What are the three things we can do each shift that would raise our sales 10 percent in the next quarter?” Which sentence is likely to garner the better buy-in and results? The skill of artful questioning is critical in a post-pandemic digital world that is drowning in information and starving for knowledge. To be honest, the skill of the artful question is harder to pick up than a watermelon seed on a linoleum floor. Smart questioning requires patience, thoughtfulness, and reflection, three skills in short supply in this faster-harder-smarter-more world we live

and work in. And it starts by learning to ask the right question not just “a” question. To spur better questioning skills in you and your team, consider the following smart questions to ask, by topic:

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Smart questioning requires patience, thoughtfulness, and reflection, three skills in short supply in this faster-hardersmarter-more world we live and work in. Repeat business. Most systems and process experts agree that the critical metric for gauging customer satisfaction starts with a question: “Will you come back and would you recommend our restaurant to your friends?” The customer’s response to this question is all that matters in the long

run. You either did or didn’t create a valuable experience that generates repeat visits. Performance and execution. Don’t ask “How can we get better?” Instead ask, “If every other part of our business remained at its current level of performance, what’s the one area where improvement or change would have the greatest impact?” Hiring. Don’t ask “What position do we have open?” Aim higher and redefine new hire expectations by asking instead: “How well do I want the job done?” The answer provides clarity on who should be hired based on personality, experience, or current talent or training gaps. Process. Improving systems can be achieved via three questions: “If our restaurant was ideal, what would it look like? How would we know when we got there? What kind of specific training, talent or leadership exactly is necessary to get us to that ideal?” Goals. Always clarify and verify next steps after setting performance goals with your managers. Ask: “What exactly has to be done? What obstacles will you likely encounter? Where do you need more help from me? Where do you need less help from me? How can we best help our team succeed?” Asking the right question usually results in uncovering the right answer or answers, but that’s just the first step. Knowing what to do must be paired with how to get it done. Progress is measured by execution. “How can we break this goal down into daily application each shift?” Learning to ask the right questions enhances today’s work and tomorrow’s future for everyone on your team. Am I right? n Jim Sullivan is a popular keynote speaker at leadership conferences worldwide. He’s the author of “Multiunit Leadership” and “Fundamentals.” You can learn more at Sullivision.com or MultiunitLeadership.com. For daily inspiration, join his 400,000 social media followers on LinkedIn.

52 AKFCF Quarterly Spring 2022


REGIONAL SHORTS

NORTHEAST REPORT By Michael Houston

T

he Northeast has always been home to higher utility and labor costs, but with today’s inflation everyone is getting a taste of higher costs. Fuel prices will begin to effect sales, but it will be hard to measure with running over the huge sales increases last spring. Labor shortages continue in pockets, but not like the shortages in lower cost of living areas of the country. With the higher cost of living in the Northeast, folks still must work, in addition to government assistance, to make ends meet. We are excited about holding our spring RGM meeting at Caesars Palace in Atlantic City from May 10-12. This will be our first

in-person Northeast meeting in over two years. Our meeting will be special this year as we honor our RGM’s who have worked hard keeping our restaurants open during the pandemic. Every RGM, nominated by their franchisee, will receive a medal and citation that states “For service in keeping our communities fed as an essential worker during the pandemic.” This will be something they can keep forever to show the work they did mattered. We call the ceremony “RGM Heroes.” People seem exited to get back to regular, in-person meetings. RGM’s always enjoy getting together and having a good time. We will be providing four workshops: Infla-

tion, You’re the President, Mobile Manager, and Maintenance. Our “You’re the President” workshop gives RGM’s a chance to give input on product development, marketing, and operations. What would they do if they were president of KFC to improve the brand? Our maintenance class will provide hands-on experience in simple, easy-to-do maintenance to lower costs in their stores. For fall meetings, we look forward to participating with other associations to share costs and revenues. These in-person meetings are critical in making new, lasting relationships as well as continuing old ones. Nothing can replace in-person contact.

SOUTHERN CALIFORNIA UPDATE By Deborah Ossanlo

O

ur regional Spring Manager’s Meeting 2022 in May will be met with enthusiasm since it is our first in-person meeting since the pandemic began! Vendors are excited to exhibit and meet franchisees, and we expect a great turn out. Our Fall Meeting 2022 is scheduled for October with our region and the Northwest combining efforts again for a spectacular in-person meeting. The AKFCF Convention in Florida was

attended by many of our franchisees. The two keynote speakers were informative and much appreciated! KFCC presented new marketing plans and visions that also were taken in a very positive way. New CMO Nick Chavez was clear in his vision. Most of the franchisees who were in the SoCal breakout meeting appreciated the information (heads up) given by the GAC when they came to talk to us about the issues that are on the legislative table regard-

ing new laws that potentially could pass for California if we don’t do anything about them, and that will ultimately damage our business if they pass. Some franchisees showed a lot of interest in going to the state capital for the hearings. Most franchisees also appreciated the legal update from Ron Gardner — as always. All in all, we look forward to getting back to some normalcy in regional meetings and to continued growth within the brand! n

Spring 2022 AKFCF Quarterly 53


LEADERSHIP DEVELOPMENT REPORT

TRAINING OUR FUTURE LEADERS By Jim McKenzie

T

he Leadership Development Committee finished the year with an awesome presentation by Kelly Rodenberg and Deb Newton! Kelly and Deb took the committee through the process of planning our AKFCF Annual Convention. From site selection, Convention theme choice, meeting and vendor space planning, sponsorship negotiations, to the main entertainment selection, the list of planning, decisions, and activities goes on and on! The preparation for our Convention starts almost immediately after the preceding Convention ends! The committee members gained a much better appreciation of the work that goes into planning and hosting the crown jewel event of our association. The training modules we have covered

The committee members gained a much better appreciation of the work that goes into planning and hosting the crown jewel event of our association.

54 AKFCF Quarterly Spring 2022

over the course of this year are shown below: • History of the AKFCF — Completed • NCAC — Completed • 76 5P • RSCS — Completed • Public Speaking — San Antonio Fall 2022 • Roles of the Executive Committee • Government Affairs Committee — Completed • Convention Planning — Completed • Duties of the AKFCF Staff We have tentatively planned to have Booth Production Group (BPG) conduct Public Speaking training at our 2022 Fall Board Meeting in San Antonio. This training

is led by Chip Booth and his crew. Most past presidents of the AKFCF have shared that this training is invaluable as they prepare for and serve their term as president. The Leadership Development Committee will be chaired by Brandon Robertson for the upcoming term. He and Kelly will determine which module is presented this summer. Lastly, as we begin a new term for the AKFCF Board and officers, the mentoring of Justin Stewart as incoming 1st VP, and Leslie Sharp as incoming 2nd VP, has been completed. Leslie will continue in a mentoring relationship with Brandon Robertson starting this term. The newly nominated AKFCF Shadow will begin a mentoring program once the new slate of officers is approved by the Board. n


EDUCATION COMMITTEE REPORT

TAKEAWAYS FROM CONVENTION WORKSHOPS By Rob Rianna

H

ello AKFCF Family. Every spring, I am provided the opportunity to update our members about what is going on with the AKFCF Education Committee. This year, the committee worked hard at work preparing workshops for our AKFCF National Convention in Orlando, Florida. Each spring, we start the process of working with the AKFCF President, the Convention Committee and KFCC to decide what workshops would best suit the needs of our members. After looking at various topics, the Education Committee decided to present three workshops at this year’s Convention. We are delighted that this year we were able to present our workshops in person again. Being in person allows us to create much more dynamic presentations when compared to the online seminars we had to develop last year. Evaluating the current needs of the KFC business, the Education Committee decided to present a guest service workshop titled “Guest Service with a Post Pandemic Mindset.” With the staffing challenges and the effects of COVID, we all believed it was crucial to emphasize how important it is to take care of our guests when they chose to visit our restaurants. When looking at all the outside data, it shows us that we have slipped a bit in some of the external customer matrixes. We also have opportunities with our digital platforms to really impact our guests’ experiences when they choose to order from us digitally. We hope that this workshop left you inspired and excited about the future of the guest experience at KFC. Next, we knew that inflation was rising exponentially in 2022, so we decided to present “Navigating Inflationary Pressures.” Although there are no real easy ways to combat inflation without always looking at pricing, the committee along with the KFCC Finance team, decided to share some ideas on how to continue to funnel money to the bottom line even though our restaurants are facing pressures on every front. We all know that to combat these rising

costs we either have to grow topline sales or reduce costs. Neither of these options can be easy, but the KFCC Finance team is now offering a benchmarking solution to help franchisees compare similar volume banded restaurants with their own financial data. By taking part in the iLumen program, franchisees can easily make these comparisons to financial data if they agree to confidentially share their own data with iLumen. This can help identify opportunities for improvement based upon other restaurants’ successes in a similar volume band. Finally, we all know that when we attend our

Justin Patton

annual Convention we receive so much information it can be hard to focus on what we should bring back and implement with our restaurant teams. Why not have a dynamic speaker like Justin Patton help us bring all this together? Justin shared with us some of his newest studies in relation to trust. The big takeaways were the three factors of building trust with others; he discussed how to repair trust once its

Spring 2022 AKFCF Quarterly 55


The Education Committee hopes that you found these workshops beneficial to your businesses. I would like to thank all the members of the Committee — Bob Widder, Justin Stewart, Shawn Brady, Nanette Walker, Joe Kendall, Bill Ford, and Scott Duke — for dedicating so much time to the workshop planning process. broken and explained why healthy relationships all are built on “yes.” It was so wonderful to have Justin back on the main stage to help us close the Convention with a powerful session. The Education Committee hopes that you found these workshops beneficial to your businesses. I would like to thank all the members of the Committee — Bob Widder, Justin Stewart, Shawn Brady, Nanette Walker, Joe Kendall, Bill Ford, and Scott Duke — for dedicating so much time to the workshop planning process. I would also like to thank

56 AKFCF Quarterly Spring 2022

our KFCC partners for all their time and resources bringing these workshops to the franchise system at the Convention. As for me, this will be the last article for the AKFCF Quarterly. As many of you know, my family and I have made the difficult decision to exit the KFC System. I consider myself very fortunate to have been able to attend my last AKFCF Convention. When I left Orlando, I was surprised how emotional it was for me to say goodbye to so many people who have helped me along the way as I served both KFC and the AKFCF committees over the years. I would like to thank all of the members of the AKFCF who have helped me become a better leader over my family’s 50-year history with the KFC brand. My father and I have had the pleasure to serve on so many different committees during our tenure and we thoroughly enjoyed every minute of serving the system and giving back. The Colonel has been very good to our family and we can only hope that KFC continues to thrive for all of you. Thank you all for allowing me to serve the brand and the KFC Family that I love so much! Best wishes to you all! n


KFC FOUNDATION

A $1 FOR $1 SAVINGS MATCH CHALLENGE? YES PLEASE! By Elizabeth Edrington, KFC Foundation Communication Coordinator

D

id you know that your restaurant employees* could get their savings matched $1 for $1 during a six-month challenge, empowering them to boost their savings accounts by $500? It’s true! And the next Savings Match Challenge is right around the corner. Direct your employees to sign up for MyChange at kfcfoundation.org by May 31. We’ll conduct employment and income verification** in June and the challenge will start July 1. As an added bonus, we’re hosting weekly raffle drawings from April 18-May 31 where restaurant employees could win fun prizes just for signing up for MyChange! More details about the raffles will be announced via TeamKFC and KFC Strong. How does the Savings Match Challenge work? Twice a year, the KFC Foundation offers six-month Savings Match Challenges, where participants could earn up to $260 in extra money. Once accepted into the challenge, participants will need to link their savings account to their SaverLife profile (we promise, it’s very secure and confidential). Then, they just grow their savings account balance each month by at least $10 and the KFC Foundation will match their savings $1 for $1, up You to $40 per month***. Plus, they’ll get a $20 bonus just for being accepted into the challenge! In just six months, they could build a $500 shortterm emergency fund, or boost their current emergency fund by $500! Note: You can only participate $240 in the MyChange Savings

Match Challenge once. If you have previously been accepted into the Savings Match Challenge, you are not eligible to participate again. See for yourself the impact this program can make! In the first national MyChange Savings Match Challenge last year, 213 participants boosted their savings by a collective $42,538 over the six-month period (total includes money they saved on their own, plus Match Rewards and $20 sign-up bonuses). “I signed up to learn about different ways to save and improve my financial habits. I also never had a savings account before, so this was the perfect sign to get started. They make saving fun. For example, I learned about finances when reading the daily articles while also getting points that could turn into scratch

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offs for a chance to win money. I learned that I should save anything that I can whether it’s $5 or $50. It will all slowly add up and will make a difference in the end.” —MyChange Challenge participant, Jocelyn “It honestly changed the way I was spending money. Me putting money away little by little motivated me to start saving even more and made me realize that it’s not that hard saving money. It was a challenge at first, but once you get used to it it’ll get easier. Even now, I’m still saving money after the challenge is over” —MyChange Challenge participant, Veronica “I paid down a lot of debt off my credit report, which I learned from this program. I also learned just how important it is to save money for emergency situations and other issues. So, I set goals and plan to reach them.” —MyChange Challenge participant, Heather Now is the time to tell your restaurant teams about this opportunity to get extra money and build a habit of saving money in the process! Don’t let them leave money sitting on the table. Questions? Email foundation@kfc.com. n *For your restaurant employees to be eligible for any of the KFC Foundation’s programs, your franchise organization must be participating in the KFC Foundation’s Annual Donation Program. **Eligibility requirements apply. ***The Match Rewards will be available to claim Total at the end of the six-month period. Savers must still be employed at a participating KFC restaurant at the end of the six-month challenge to $500 claim their match money.

Spring 2022 AKFCF Quarterly 57


RSCS MEMBER PROGRAMS

PICTURE YOUR SAVINGS WITH RSCS MEMBER PROGRAMS & EMPLOYEE PERKS By Tara Morrison

O

ur goal at Restaurant Supply Chain Solutions is to provide a competitive advantage to our members. Through RSCS Member Programs, we offer discounts on products and services used to run your business, from waste services and pest control to in-store music and security systems. We’re constantly adding new programs, categories, and vetted suppliers to our service offering. Our waste and recycling program alone could save you up to $1,000 a month, but RSCS has many additional programs that can help you save money on products and services you already use today. We have negotiated discounted rates for the following: • Cleaning services with Cintas and UniFirst • Cell phone plans with AT&T and Verizon • Prefabricated building services with Fullerton Building Systems • Security systems with SimpliSafe • Office supplies with Office Depot and Staples • Oil management with Restaurant Technologies • Slip-resistant shoes with Shoes for Crews, Skechers, SR Max, and Careismatic • AND SO MUCH MORE! Our entire list of programs can be found on the *NEW* Member Programs website at memberprograms.rscs.com. Using our Member Programs Dashboard, you can find detailed information on each of the programs we offer, the discounts available, as well as how to sign up through each supplier. You also can sign up for our email newsletter to receive Member Programs highlights of our various programs, special promos

58 AKFCF Quarterly Spring 2022

throughout the year, and up-to-date Employee Perks flyers to hang in your restaurants. Our service offering is ever evolving, so join our mailing list by visiting the website or emailing memberprograms@rscs.com. Employee Perks is a free benefit for our members to offer as a fantastic employee incentive in this current labor market. Using the simple mobile app and registration process, your team members can start saving money on products and services from a multitude of retailers they may already be using today. There are discounts on cell phone plans, movie tickets, electronics, and more! The newsletter and website both have printable flyers that you can download and distribute to your team members, which includes a QR code so they can quickly register and start saving through Employee Perks! 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. Member Program Spotlight: *NEW* Re-negotiated Automated Oil Management Program with Restaurant Technologies You may already be familiar with Restaurant Technologies, as our preferred vendor for KFC oil management, but our new contract terms and an increase in used cooking oil credits make this program worth re-evaluating for your restaurants. The new KFC National Pricing Program features a 37-percent lower weekly program fee, saving you over $1,000 per year per restaurant for oil disposal. In addition, due to rising costs of soybean oil, the credit for used cooking oil is up 150 percent over the 2019 market. This rebate on your invoice makes the net oil cost a potential savings for your restaurants. The dedicated KFC team at Restaurant Technologies will ensure that your team is fully trained when the Total Oil Management system is installed


and offers ongoing support and additional training when needed. Sixty percent of Workers’ Compensation claims in kitchens are related to cooking oil, whether through burns, slips and falls, or soft tissue injuries from handling heavy jugs and waste shuttles. This Total Oil Management program with Restaurant Technologies automates the entire cooking oil process, increasing efficiency and reducing risks that are involved with manually changing out hot fryer oil. With these reductions in risk, KFC restaurants are seeing insurance premium reductions of up to $1,000 per month per store. There are no upfront capital costs and no unexpected service charges. Restaurant Technologies offers a closed-loop, fully automated system for managing new and used frying

oil. They deliver and pick up oil via a lockable outdoor box while also using web-based management reporting so that oil usage is always being monitored. In addition, after your initial term with RT, you can expect a shorter one-year renewal, as opposed to the original five-year renewal term.

Without having to worry about fryer oil, you can get back to what matters most, Finger Lickin’ Good Chicken that Colonel Sanders would be proud to serve. You can find more information on how to get started with Restaurant Technologies on the Member Programs website. n

Spring 2022 AKFCF Quarterly 59


EXECUTIVE DIRECTOR UPDATE

BEING AMBITIOUS & INNOVATIVE IN OUR EVENT STRATEGY By Kelly Rodenberg

T

his year’s opening keynote speaker Mike Rayburn’s presentation focused on two questions: “What if?” and “Why Not?” He said when you ask the question “What if?,” you open up the possibilities and solutions. And when you ask, “Why not?,” you get at the obstacles and problems which are usually our fears. For the last two years, we asked these two questions repeatedly during the creation, planning, managing, and implementation of the 2021 Virtual Convention and the 2022 Convention in Orlando. What made this all work was the combination of goals, focused intentions, positive actions, a few “crazy” people who thought outside-thebox, and lots of perseverance! AKFCF President, Brandon Robertson’s themes “Power of the People” and “Power of Opportunity” were immensely powerful words when we were creating every aspect

Mike Rayburn

60 AKFCF Quarterly Spring 2022

Whether someone is happy where they are or thinking about the next opportunity, one of the biggest reasons people love attending events is to network. The more networking opportunities we can offer, the better. of these two conventions. We had to be mindful of how the pandemic changed our businesses and the people in them. Mike Rayburn used a quote from Peter Drucker who said it best: “Managing change is not

only stupid; it’s dangerous. The only way to manage change is to create change.” This is where the collaboration of abilities and experiences of our production teams, committees, and leadership came into play at record speed. In a few weeks, we will again be on a Zoom call asking, “What if we do this?” or “Why not make this happen?” or “What if we tried this in a session?” We know that some of the traditional structures of the Convention are no longer sustainable, and we need to keep moving forward to create positive change. Today, we know you crave purpose alongside engagement. You want to feel like you are part of something special and bigger than yourselves, and this is true throughout the year — not just at the Convention or regional meetings. Whether someone is happy where they are or thinking about the next opportunity, one of the biggest reasons people love attending events is to network. The more networking opportunities we can offer, the better. We can’t be afraid to bring something new into existence — whether a new session type, approach to engagement, supplier involvement, event fee structures, or something else entirely. We need to be ambitious and innovative but be thoughtful and intentional about our event strategy. In the end, we can only hope that what we create will be an experience that you find informative, joyful, and worthwhile. We hope that you have just as much fun attending our events as we have when planning them. There are so many people behind the scenes and on the front lines who make these Conventions come to life. I am so grateful for my tribe! And I can’t wait to do it all again in Austin. n


The Hard Way It is comparatively easy to prosper by trickery, the violation of confidence, oppression of the weak … sharp practices, cutting corners — all of those methods that we are so prone to palliate and do as “business shrewdness.” It is difficult to prosper by the keeping of promises, the deliverance of value in goods, in services and in deeds — and in the meeting of so-called “shrewdness” with sound merit and good ethics. The easy way is efficacious and speedy — the hard way arduous and long. But, as the clock ticks, the easy way becomes harder and the hard way becomes easier. And as the calendar records the years, it becomes increasingly evident that the easy way rests haphazardly upon shifting sands, whereas the hard way builds solidly a foundation of confidence that cannot be swept away.

Thus We Builded

®

*Dictionary: Present participle and verbal noun. To fashion or frame according to a systematic plan or by a definite process, to create, to BUILD reputation. Reprinted by permission of Colonel Sanders, November 1964. Copyrighted by Harland Sanders, 1973.


LEGAL UPDATE

THERE’S GOOD NEWS TOO! By Ron Gardner

I

f you are like me, you spend most of your waking hours mired in the day-to-day struggle of your work. Dealing with customers (or clients, as the case may be), bills, regulations, the need to continually find new ways to compete, keep your employees happy, and otherwise battling to be the best you can be at what you do. When you get home, typically the news is not any better. With inflation hitting all of us at the gas pump and grocery store, along with the war in Europe (and the nuclear threat recently made — the first time I have even thought of such a threat since I was under my desk in elementary school during the Cold War), and, not to mention, the continuous drone of the culture war which

62 AKFCF Quarterly Spring 2022

is all around us, it can get overwhelming. But inexplicably, as I’m writing to you on this spring day, with an overcast sky and a temperature here in Minnesota somewhere in the 20s, I find myself optimistic about our future. If I stop to think about what it is that makes me jubilant on a day like today, I must think no further than the first part of March, and my time spent with the KFC family. There is so much we have to celebrate! First, and not surprising, the ability to hug, smile, laugh with, and just be with so many of you together, was extremely uplifting. While my work had required me to travel some over the past year, it wasn’t really until this meeting that I felt like the family was all back together. I felt a kinship

I had not realized that I had missed and was reminded of why it was that this brand, and the people making up this system, are so extraordinary. Much like attending a family reunion (in fact it was a family reunion — right?), I was eager every day to stroll the walkways of the Gaylord Palms to see who I might discover and reconnect with. It was, in a word, fabulous! But my reasons for being in a good mood didn’t end there. There are so many great things going on in the KFC system. Despite the difficulties we are all facing with labor and supply shortages, inflation, and the day-to-day grind, we are working hard and making real progress taking the next step in the evolution of what used to be called the


Ad index 41

AmerCareRoyal

7

AT&T Business

11

Auspex Capital

50

Café Valley Bakery

31

Capitol Light

52

Case Farms

C3

Dr Pepper Snapple Group

extremely intelligent, insightful, thoughtful, and well-spoken leader. I came away convinced that he will, in fact, do wonders for this brand. He understands the challenges we have faced and is approaching potential solutions in a methodical and thoughtful manner. My hat is off to KFC, Kevin Hochman, and everyone else involved in recruiting Nick to be part of our family. I also have been extremely involved in the work taking place to bring our two new advertising agencies MullenLowe (creative) and Spark Foundry (media) into the fold. The material they have shown us so far is fresh, new, and exciting. They understand our need to continue to cultivate and bring back our core customers, while, at the same time, embracing Nick’s vision of expanding the core to a much broader audience. It is all very exciting, and I am certain that when you start seeing their work, you also will be uplifted. While we are not as far along on the tech acceleration front as I would like us to be, I also see reason for optimism there — I hope to share more with you in the coming weeks. And, finally, it is spring! I hope you have an opportunity to get out to enjoy it and to take some time to look around and to be thankful for all the good things happening in your life — which include the many good things happening within the KFC system! n

23

Ecolab Kay Chemical Company

51

FranBizNetwork

43

Genpak

9

Gycor International

29

KFC Foundation

33

Koch Foods

45

Lennox Commercial

C2

Magnesol

19

NDA, Inc.

1

Pacific Premier Franchise Corporation

47

Partstown

3

PepsiCo

35

Pilgrim’s

13

Procter & Gamble Distributing

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.

While my work had required me to travel some over the past year, it wasn’t really until this meeting that I felt like the family was all back together. “brand turnaround.” It seems we are a long way from turning around and much further along the road to returning to iconic status. Among other things, I had the extraordinarily good fortune of being paired with new KFC Chief Marketing Officer Nick Chavez during the KFC Foundation Golf Tournament. While Nick certainly drew the golf partner short straw, we spent a wonderful five hours getting to know each other, understanding each other, and otherwise building a relationship that I am certain will benefit all of us. Nick is an

26, 27, Restaurant Supply Chain 59 Solutions 15

Restaurant Technologies

56

Rubicon Technologies, LLC

37

SYR Clean

46

Tyson Food, Inc.

5

Welbilt

C4

Winston Industries

25

Workstream

Spring 2022 AKFCF Quarterly 63


Remembering Barry Yates

B

arry Yates passed away on Mar. 29, 2022, at the age of 59, after a long battle with pulmonary illnesses. Yates was the global accounts manager at Winston Foodservice and longtime partner of the AKFCF. He developed a love for cooking and food at a young age while helping his mother make family dinners. This love for food and caring for people would be cornerstones of his life. He left behind three children; Jesse, Christopher (Mariyah), and Tyler (Nick); dad, Roger; brother, Marvin (Jenny); three grandchildren; three nephews, and countless dear friends. “While Barry’s professional success was certainly substantial, it was who he was as a human being that left a tremendous legacy,” recalls Winston CEO Shaun Tanner. “It was his smile, compassion, intense loyalty, and the ability to befriend anyone. He loved humanity and believed that people were just people. For those that considered him a dear friend, we’d also add that he was a master of storytelling, an architect of creative mathematics, a horrible bluffer at Texas-Hold’em, and was perhaps the most optimistic person you’d ever meet.” “Barry was one of a kind! He put his heart and soul into everything he did, and we at KFC were the benefactors of his passion,” says AKFCF Board Member and 1st VP Justin Stewart. “I had the privilege of working with Barry on many projects over the years and I can’t say enough about how he treated people he worked with and everyone around him. He absolutely loved the KFC brand and its franchisees! I am just one of the many who will miss seeing Barry at our Convention, but consider myself blessed that I had the time I did with him.” “The world loved Barry, and the world loves Winston products because of Barry,” says Larry Rooney, partner/director of KBP Brands. “…Barry has been an amazing ambassador, coach, became my partner, friend, and mentor. The world lost an iconic foodservice warrior. I am so thankful and appreciative and will miss ‘The Chef ’ dearly.” *Editor’s note: We at the Quarterly, deeply mourn the loss of Barry and are forever thankful for his strong support of the AKFCF and this magazine. For this and many other reasons, Barry was recognized with the AKFCF’s Outstanding Partner Award in 2021.

64 AKFCF Quarterly Spring 2022


For Barry

“While Barry’s professional success was certainly substantial, it was who he was as a human being that left a tremendous legacy. It was his smile, compassion, intense loyalty, and the ability to befriend anyone. He loved humanity and believed that people were just people. For those that considered him a dear friend, we’d also add that he was a master of storytelling, an architect of creative mathematics, a horrible bluffer at Texas-Hold’em, and was perhaps the most optimistic person you’d ever meet. He impacted the lives and touched so many not only at Winston but around the world.” - Shaun Tanner, CEO, Winston Industries

Donald Schaper dschaper@winstonind.com 502.541.6038 KFCFryers.com


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