AKFCF Spring 2023

QUARTERLY

Association of Kentucky Fried Chicken Franchisees, Inc.

PLUS: GAC Report | AKFCF Awards | Shola Richards

Spring 2023

KFC Oil Management

PROUDLY SUPPLYING KFC

Fryers

Reach-in Coolers & Freezers and KFC Pack Lines

Dual Sided M Pack Line

Single Sided M Pack Line

Walk-in Coolers & Freezers

GBR1P-SH

406P-KFC1

FPPH255

KJ3

Dispensers

Fry Holding Station

SV250

CrispyMax MCG1827NNN

Don Alwood, Director Strategic Accounts | 989.205.6739 | donald.alwood@welbilt.com

welbilt.com

CONTENTS

AKFCF QUARTERLY Spring 2023

42

22

50

FEATURES

DEPARTMENTS

GAC Report: Debt Limit Debate Continues 18

By Amber Peoples

4

Congress and the White House are feeling immense pressure to reach a compromise.

2023 Convention Recap 22

By Kelly Rodenberg Attending the AKFCF Convention in Austin was like attending an annual family reunion. Whether you came from a large franchise family or a single operation, the AKFCF Convention had a reason for you to come home and visit with family.

AKFCF AWARDS 42

By Cory Sekine-Pettite In addition to the coverage provided in our Convention recap feature, we wanted to give these honorees their own feature in the Quarterly.

From the Editor

6 Outgoing President’s Report 8 Incoming President’s Report 10 NCAC Report 14 In the News 54

RSCS Member Programs

56

KFC Foundation

58 Regional Shorts 60 Executive Director Update 62 Legal Update By Ron Gardner 64 Looking Back

BUILDING RESILIENCE 50

By Shola Richards Protecting your mental health to better serve your team members and guests.

On the Cover: 2023 AKFCF Annual Convention Recap Reminisce in all the joy and splendor from the 2023 AKFCF Annual Convention in Austin, Texas. Read about all event details, award winners, and more beginning on page 22.

2

AKFCF Quarterly Spring 2023

FROM THE EDITOR

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

A CHANGING OF THE GUARD

By Michelle Hunt

T

his time last year we had just celebrated two graduations and were preparing for a wedding. I can’t believe it’s been a year! So much has transpired with our family and the Brand in the last year. There are many new faces at the Brand, and we completed the changing of the guard at the AKFCF, welcoming Justin Stewart as the new AKFCF president (read his column on page 8). We also have a new Trade Show Manager, Jennifer Thomas, who is no stranger to the Brand or the AKFCF. I look forward to seeing her flourish in her new role with our AKFCF team. And we’ve had to say goodbye to several family members through retirement or passing.

While she had already retired, Darlene Pfeiffer’s passing has left a legacy that will likely go unmatched. Darlene is the only person to be elected president of the AKFCF more than once. She served her first term in 1988-89 and her second in 1995-96. She was instrumental in protecting the rights of franchisees, the rights we still hold dear today. She was the first editor of the AKFCF Quarterly, which began as a newsletter in 1980 and evolved into a magazine by 1989 with Darlene’s guidance. There have only been three editors of the Quarterly and that fact is never lost on me. Her encouragement and guidance since I joined the Quarterly team in 2000, helped shape my love of this Association and the strong bond of family it creates. We will pay tribute to Darlene in the Summer issue, and I look forward to sharing that with you.

In this issue, we recap Keith Cole’s incredible AKFCF Convention in Austin, Texas.

His final president’s column is on page 6 and you won’t want to miss it. The Foundation of Family theme was felt throughout the event and every detail seemed to go off without a hitch. Congratulations, Keith! The full recap begins on page 22. To further celebrate our AKFCF award recipients there is an entire feature dedicated to them on page 42. The opening keynote speaker Shola Richards contributed an article dedicated to mental health — “Building Resilience: Protecting your mental health to better serve your team members and guests” — to help extend his high-energy keynote from Convention. Go check it out on page 50.

In addition, we have the GAC article, the NCAC update from Vice Chair Tom Broome, an RSCS Member Programs update, the KFC Foundation talks Kentucky Fried Wishes in 2023, Regional Shorts from the Northwest and Southern California regions, Kelly’s executive director column and a legal update from everyone’s favorite franchise attorney, Ron Gardner. The next issue is already in process, and we should be back on schedule for the summer issue to arrive in July.

I look forward to seeing many of you at upcoming AKFCF and regional meetings.

Warmest Regards,

4

AKFCF Quarterly Spring 2023

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

AKFCF EDITORIAL TEAM

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

Justin Stewart Michelle Hunt Julie Mantlo Michelle Hunt Kevin Schlutz Kelly Rodenberg Keith Cole

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

FRANCHISEE EDITORS:

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

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

Copyright ©2023 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 1071-9873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation.

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

Filter Management Systems

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

Cleaner. No loose powder with built-in system.

1

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

5

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

step

minutes

Compact. 30-day packaging. Easy to store and track replacement usage.

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

Gycor International, Ltd. 10216 Werch Drive, Unit 108 Woodridge, IL 60517

(800) 772-0660 FAX (630) 754-8084 www.gycorfilters.com

FROM THE PRESIDENT

BRYAN ROBINSON PUSHED ME DOWN THE STAIRS

By Keith Cole

O

ver the past year, I’ve received good advice from many in the KFC Family.

One person in particular would always ask me questions like, “Are you enjoying this?” and “Are you taking it in?” Whenever you speak to franchisee Jennifer Arsenault, “selfcare” and “personal growth” are sure to raise their heads. I kept her questions in mind as I arrived in Austin for our 2023 AKFCF Convention. I took it in.

The colorful and emotional intro with Steve Martinez as the painter, setting up my message of family and unity. The moments backstage with a supportive Booth Production Group: Tiffany, Mario, Andrea and, of course, Chip Booth. Standing at the curtain ready to go out, with Christina as she reminds me to “take a deep breath … let it out,” and “go out with a smile.” I took it in.

The support I felt as our executive director, Kelly Rodenberg, remained close by to keep steering me in the next direction. Every regional breakout meeting I walked in to, disrupting their flow, to address welcoming faces I’ve come to know better over the last 12 months. I took it in.

The AKFCF Executive Committee greeting me on stage because my immediate family could not attend. Sitting up front as Ron Gardner delivered his legal update and his

heartfelt closing on his appreciation of our Association. I took it in.

Seeing our KFC leadership team up front as I delivered my opening keynote speech.

Then watching them backstage, bursting with excitement and support for each other, as they took turns presenting their vision. I took it in.

Witnessing Bill Ford, Karen Adams, and Justin Patton deliver a stellar workshop on team member engagement. The equity and inclusion breakfast and sitting with my new friend, Morita, at the Women in Leadership breakfast. I took it in.

The vendor showcase, the food trucks, Colonel Joey at the GAC booth, the live music including Andrew Kreitz, who I heard singing at an outdoor venue somewhere between Austin and San Antonio last year. I took it in.

The CARIBLA party with Pablo Girard and I talking restaurant experience and optimism for the future. Seeing the delegation from Mexico again and knowing our bond is stronger than any cultural or language differences. I took it in.

The final night! When my KFC Family gave a bunch of talented 15- to 18-year-old students of the Uptown Music Collective, from my hometown, a whole lot of love. Hugging my old friend, Ray Aley, and his wife, Cheryl, as their exuberance over the week’s

The support I felt as our executive director, Kelly Rodenberg, remained close by to keep steering me in the next direction. Every regional breakout meeting I walked in to, disrupting their flow, to address welcoming faces I’ve come to know better over the last 12 months. I took it in.

6

AKFCF Quarterly Spring 2023

successes were written all over their faces. I took it in.

I took it all in and I am more enamored by and devoted to our brand and our KFC Family than ever before. I am filled with gratitude to everyone who attended. I was truly blessed to have this opportunity.

Upon my return, Justin Stewart and I finished a call to cover my learnings over the last year. In that call, I told him the best thing I could do for him was to get out of his way, because he is going to be a fantastic president and I cannot wait for Convention 2024 in Las Vegas! The AKFCF and its regions will continue to be the voice for KFC franchisees and the glue that unites us all.

Now let’s address the elephant in the room — the title of my article. Yes, it was just printed “click bait.” I was attempting to capture those people who peruse article titles before actually reading them. Who wouldn’t want to know more details about Bryan Robinson pushing me down a flight of stairs?

Did Bryan push me down a flight of stairs?

No. Would he, given the chance? You will have to ask him. Bryan and I have a strange relationship — like two brothers who cannot resist needling each other. Sparring with Bryan over the last year has been a great distraction and a treat for someone who enjoys dark humor, as I do.

I could not resist dragging his name in the mud in my final article. I started with other titles such as “Bryan Robinson Punches Puppies” or “Bryan Robinson Hates the Elderly” or my favorite, “Bryan Robinson Is a Maniacal Sociopath Who Aspires to World Domination … and Smells Like Tomato Soup.” But the readers of the Quarterly are not ready to go that far with me.

Don’t worry, Bryan will NOT be offended. Ever since I taught him to read, he loves seeing his name in print. n

What do you want on your

Here we build franchise loans the way you want them. Specific to your needs.

Work with a dedicated and experienced franchise restaurant financing team.

New Stores Remodels Acquisitions Refinancing & Recapitalization Real Estate Equipment

Let’s Talk.® 402.562.1800 PPBIFranchise.com Member FDIC

INCOMING PRESIDENT

HUMBLE BEGINNINGS

By Justin Stewart

L

et me start out my first column by thanking my predecessor, Keith Cole, for doing such an incredible job over the past year and capping it off with one of the best Conventions in recent memory! If I can accomplish half as much, I will consider it a success!

For those of you who don’t know me, I am a second-generation franchisee, but my path may have been a little different. My father started working for KFCC in the early 70’s at a concept called Kentucky Roast Beef. This was at a time when a sandwich concept called Arby’s had hit the scene and was rapidly expanding. KFCC decided that it wanted to compete in this emerging market and did so by opening several locations in the Las Vegas area. My father started working at one of these locations and quickly moved his way up to manager. It was no surprise that the Kentucky Roast Beef concept didn’t survive, but one good thing came out of it; my father was noticed by corporate leadership. Before his restaurant closed, he was asked to manage a nearby KFC restaurant. He took the job, and quickly became one of the top managers in Las Vegas. Within a few years, he was running the busiest location in the market.

I am going to skip a few years and say that my father eventually came across an opportunity to purchase a KFC franchise in 1980 in the small Oregon town Klamath Falls. The franchisee was so impressed with my dad that

he offered to owner finance the loan, but they had to make a balloon payment of $20,000 after 90 days. This restaurant was only doing $375,000 a year, but my dad and uncle (who became partners) believed in its potential. To meet their balloon payment obligation, they worked the next three months with only one other employee. They set up cots in the back room to sleep on at night! The times sure have changed! Since I am here writing this, you know that they were able to save enough money to pay their loan and the rest is history.

Throughout the years, my older brother Todd and I worked for my dad and uncle as they expanded their business. We worked through high school, and then summers when we came home from college, until we eventually moved on to other careers. Todd went to med school and worked in open heart surgery, and I started a travel agency that brought Japanese tourists over from Japan to Oregon to take them on adventure tours such as snow skiing, snowmobiling, river rafting, etc. After five years in medicine, Todd had had enough of the stress and approached me to open a KFC on our own. At the time, my business was not doing well because Japan was going through a recession. We found a spot on the Oregon coast and it took us the next year-and-a-half to find a piece of property, qualify for a SBA loan, and to get the restaurant built. Our father gave us lots of

advice and help, but in the end, it was all on us to make this happen and put our future on the line like he had done 15 years before. As we were about to find out, sometimes history repeats itself. We planned for this restaurant to do about $20,000 per week, and as luck would have it, it did close to $40,000. We were not prepared for this, and so for the next few months, we worked all day everyday just like our father had done before us, although we had the help of our younger brothers and, of course, dad who came and worked the packline like a pro!

Over the next three years, we built four more restaurants in towns that had previously closed KFC’s. We worked extremely hard, trained a lot of people, and learned more than we ever did at college! Ok, I learned more.

Todd was smart already.

Since our humble beginnings, we have continued to build and acquire restaurants and count ourselves lucky that we get to work with incredible people in a brand with rich history! A history that we learned by volunteering in our region, which got us involved at the national level, which helped us forge lasting friendships and immeasurably helped in our success! If you have held back on getting involved, there is no time like the present! One of my favorite quotes is by Karen Salmansohn: “The best things in life are often waiting for you at the exit ramp of your comfort zone.” n

Since our humble beginnings, we have continued to build and acquire restaurants and count ourselves lucky that we get to work with incredible people in a brand with rich history! A history that we learned by volunteering in our region, which got us involved at the national level, which helped us forge lasting friendships and immeasurably helped in our success!

8

AKFCF Quarterly Spring 2023

Parts Parts Connection

by Poweredby Powered

You Can’t Have Finger Lickin’ Chicken Without the Sides And You Can’t Have Real OEM Parts Without the Innovations Our parts ID tools like PartSPIN®, Smart Manuals and Serial Number Lookup are available 24/7 at partstown.com/rscs and on our industry-leading mobile app. Find the real OEM parts you need any time of day or night!

PartSPIN®

Choose your part with total confidence. Our 360 degree image technology allows you to view a part from every angle.

Smart Manuals

Thousands of our equipment manuals include hyperlinks that lead directly to product detail pages.

Serial Number Lookup

Enter your equipment’s serial number to see the exact list of parts and accessories needed, along with available warranty info.

Make sure to log in every time you shop to see it all for yourself!

Hi, I’m PARTner!

I’m the innovations expert in this Town. You’ll see me around, offering helpful hints about our online tools that make your job easier!

Learn more at partstown.com/rscs/innovations!

NCAC REPORT

EMBRACE THE STRATEGY FOR SALES AND TRANSACTIONS GROWTH!

By Tom Broome, NCAC Vice Chair

W

While innovation is extremely important, we have learned that we cannot forget our core business, and we must continue to provide meaningful offers to the customers who know and love us.

10 AKFCF Quarterly Spring 2023

e are coming off a great AKFCF Convention. It really was one of the best Conventions ever — a big thank you to Keith Cole and the entire AKFCF team that made that fantastic week come to life. It is a huge undertaking, but so worth it! Coming together as a KFC Family is so important and every opportunity to reconnect, partner, learn from each other, and commit to the continued growth and strength of KFC is invaluable.

I’d also like to thank Keith for his leadership as the AKFCF President and for his partnership on the NCAC Committee.

He has been an engaged, thoughtful, and collaborative leader who served on several subcommittees. I am certain he will be taking a much-deserved break. With the passing of the AKFCF President baton, I also want to welcome Justin Stewart to the NCAC Committee. Justin already serves on the Operations Sub, Technology and Beverages Subcommittees, and we all know he is a passionate Chair of the KFC Foundation Board. I look forward to his continued leadership and excitement for KFC on the NCAC. It also was Tarun Lal’s first Convention and hearing him, along with his team, lay out the vision of “Bringing Joy” and the strategy, or “Recipe for Success,” was crucial to our future success as a KFC Family. The plans for getting ahead on our marketing calendar and driving new product news and innovation will require all of us to be nimble and flexible while embracing the strategy. From an NCAC perspective, we are aligned to driving relevant KFC value, growth news, and brand buzz for our customers, border-to-border and coast-to-coast.

Coming off the recent launch of our LTO Kentucky Fried Chicken Wraps,

we have positive momentum and the new product news drove new (and current) customers into our restaurants. Now, with the unveiling of our new Kentucky Fried Chicken Nuggets, we are, again, giving our customers what they want, with the Nuggets giving us permission to be more relevant with moms and kids. From a marketing perspective, we are promoting our Finger Lickin’ Good Nuggets just about everywhere we can. You can expect more Nugget news including flavors, sauces, partnership opportunities, and more in the coming months and years. Sales and transaction growth has started strong, and I look forward to continued momentum as the promotion continues. As I have said before, this product is an absolute winner!

The NCAC’s Test Market Task Force continues to partner with KFCC on a relevant 12- to 18-month testing calendar so we can continue to get ahead on the marketing calendar and profitably grow our sales and transactions. While innovation is extremely important, we have learned that we cannot forget our core business, and we must continue to provide meaningful offers to the customers who know and love us. AND we must get more customers coming in the door every day. Testing, learning, planning, and executing is how we will win.

The digital opportunities for KFC continue to feel like a wide-open space to reach customers, profitably grow sales and transactions, and eventually, target customers with very direct and meaningful offers. The Technology Committee, in partnership with the KFCC IT team, is actively working to elevate our owned channel experience, setting us up for the loyalty program launch later this year.

With the current $10 8-piece COB or Tenders buckets value offer (only on our app and KFC.com) intentionally focused on driving

customers to KFC and encouraging full margin add-ons, we are seeing incremental sales across the system. We will continue to partner with KFCC in the digital and performance marketing space to drive sales and relevancy for the brand.

Coming out of the March Quarterly NCAC Meeting, you will see PR and news around a Spicy Sandwich promotion in partnership with Diablo IV gaming (May 29 – July 2). And as we roll onto summer, more news about a BBQ Sandwich, a $20 Fill Up Box, and a Blackberry Lemonade promotion are sure to remind customers that KFC is a great choice for summertime eating. You also will see us continue to put marketing dollars to work in the recruiting and hiring media program that continues to deliver results in terms of applicants, candidate selection, and staffing of our restaurants. If you have questions about that program, I encourage you to reach out to Karen Adams in KFC HR, karen. adams@yum.com.

The digital opportunities for KFC continue to feel like a wide-open space to reach customers, profitably grow sales and transactions, and eventually, target customers with very direct and meaningful offers. The Technology Committee, in partnership with the KFCC IT team, is actively working to elevate our owned channel experience, setting us up for the loyalty program launch later this year.

I look forward to updating you again in a few months — I’m sure we will have great Nuggets results to share and a peek at the rest of the 2023 calendar and into 2024. Let’s continue to work together to profitably grow this great brand. n

FINANCIAL ADVISORY AND INVESTMENT BANKING

Expert Investment Banking and Financial Advisory Services for KFC Franchisees Since 2004: We’ve raised

$1,366,616,260

in loans and lines of credit

We’ve completed

30 M&A transactions involving 400 restaurants

Find out how we can help you grow your business: (562) 424-2455 Contact Christopher Kelleher, Managing Director: auspexcapital.com

ckelleher@auspexcapital.com

Spring 2023 AKFCF Quarterly 11

PICTURE YOUR SAVINGS Member Programs

Waste & Recycling

Our 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. We’re constantly adding new programs, categories, and vetted suppliers to our service offering, so be sure to join our mailing list to receive updates from RSCS. Our entire list of programs can be found on our website. Using our Member Programs Directory, 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.

Oil Management

Pest Control

CO2 Services

Employee Perks

Employee Perks Employee Perks is a free benefit that our members can offer as a fantastic employee incentive. Visit our website to download printable flyers for your employees so they can start saving money on products and services they may already be using today.

Music & Technology

Office Supplies

Cell Phones & Internet

Member Programs & EMPLOYEE PERKS

Payroll Software

Member Programs

& Employee Perks

Tara Morrison Procurement Manager - Member Programs

tara.morrison@rscs.com memberprograms.rscs.com

In the NEWS

YUM BRANDS’ NEW PACKAGING POLICY HAS THE POTENTIAL TO MAKE A GLOBAL IMPACT

T

he World Bank estimates that 2 billion tons of waste is generated, from both businesses and residences, across the globe each year. As one of those companies, Yum! is looking to change this by leveraging the power of its 55,000 KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill restaurants to be part of the solution by reimagining its iconic packaging like the KFC bucket, Pizza Hut pizza boxes, and Taco Bell sauce packets.

In collaboration with parent company Yum!, each brand is shifting its existing packaging to more sustainable options. This includes transitioning away from plastics, while simultaneously developing packaging solutions — via a new policy — that sets sustainability standards for its restaurants and possibly influencing the industry to make broader change. Yum!’s new policy, led by increased investments in circularity, which is the creation of a product with the intent that it gets recycled and thus goes back into the supply chain, consists of the following measures: the elimination of unnecessary packaging, the shift to more sustainable materials, and the support of better recycling systems and reusable products.

“It’s our responsibility as the world’s largest restaurant company to help solve for the amount of waste that ends up in landfills,” said Jon Hixson, Yum! chief sustainability officer & vice president of global government affairs. “And for years, we’ve been diligently working on this challenge, and it’s now been unified across the 150-plus countries and territories in which we operate, so that’s what’s really exciting.”

While each brand is in a different stage in its sustainable packaging journey, they now have one cohesive blueprint to follow and can lean on each other while striving toward the same three goals. Here’s how they plan to do just that.

Eliminate unnecessary packaging and shifting to sustainable materials Unrecoverable plastics are often found in wrappers, cup lids, cutlery and bags, and are prevalent around the world due to their inexpensive cost and abundance in supply.

14 AKFCF Quarterly Spring 2023

But they can’t be recycled, which makes them a key focus area in Yum!’s new policy.

As companies move away from unrecoverable plastics, which most likely end up in landfills, there’s an opportunity for them to build their reputation as sustainable stewards when it comes to packaging by shifting to more sustainable alternatives.

With 27,000 restaurants across 147 countries, KFC is taking “a mindful approach” when it comes to transitioning to more sustainable materials, according to KFC Global Director of Sustainability & Packaging Susan Miles. Globally, the brand has moved from expanded polystyrene plastic (styrofoam) to more recyclable plastic or fiber-based containers for its side items and has purchased most of its paper-based packaging with fiber from responsibly managed forests and recycled sources.

Also, several KFC markets have eliminated plastic straws, cutlery, and bags. But, Miles said, that’s just the start, and the brand is now looking to adopt additional practices developed in its individual markets, like a widely recyclable, plastic-free bucket in the United Kingdom (U.K.) and Canada’s compostable poutine bucket made of bamboo.

“By using new materials and methods of making buckets, we are able to source a more sustainable alternative while staying true to our iconic bucket, which our customers know and love,” Miles said.

Recycling and reusables Despite Yum!’s best efforts, not everything in each brand’s packaging suite can be eliminated or sustainably sourced. This is where the implementation of recycling programs is making a difference.

In addition to converting consumer-facing packaging to recyclable, compostable or reusable materials, Taco Bell is also adding recycling and/or composting bins in its restaurants where infrastructure permits.

Another important change happened when Taco Bell provided a recycling option for its sauce packets in the U.S., giving customers the ability to mail-in used sauce packets for recycling, thanks to a partnership with Terra-

Cycle, a New Jersey-based company known for recycling hard-to-recycle materials.

“The TerraCycle partnership is one that consumers are enthusiastic about,” said Missy Schaaphok, Taco Bell director of Global Nutrition & Sustainability. “But the big unlock with this program is the fact that we’ve expanded it to include sauce packets of any kind and brand, not just Taco Bell’s. At the same time, we’re also exploring other ways to bring our fans the sauce they love, with less waste.”

What the future holds While Yum! and its four brands remain committed to making a difference, challenges still exist as they must work around fragmented regulations worldwide surrounding packaging and sustainability.

“There has been a lot of progress made, at the global level, in terms of creating a more sustainable ecosystem of products and operational efficiencies throughout our restaurant system. At Yum!, we’re committed to good growth. We can’t do that without a plan to preserve our planet,” Hixson said. “From our packaging initiatives to the work we’re doing on forest stewardship and climate change, we are dedicated to making progress on our Recipe for Good.”

Moving forward, Yum! and each of its distinctive brands have an eye on the future and are working toward their public commitments.

Source: Yum!

KFC AMONG WINNERS OF KANTAR’S CREATIVE EFFECTIVENESS AWARDS

I

n April, Kantar, the world’s leading marketing data and analytics company, revealed the winners of the 2023 Creative Effectiveness Awards, recognizing the most impactful ads of last year. The Creative Effectiveness Awards are unique in being judged by consumers. Throughout 2022, Kantar’s creative testing platform was used to evaluate more than 13,000 digital and social, TV and print, and outdoor ads. The awards celebrate those that were most effective at driving sales and increasing longterm brand equity.

The winning ads also embody the key trends which set apart the most effective ads, acting as a creative beacon for the industry during a time when creativity and effectiveness are ever-more important. New analysis recently co-published by Kantar and WARC found that the most creative and effective ads generate greater than 4X profitability.

Among the winning campaigns, KFC France took top honors for a TV spot which you can view on YouTube here: https://bit.ly/3NiSyPU. Other big winners include Starbucks and Cadbury’s. For the complete list, visit Kantar.com.

“Those who stand out focus on understanding what makes people tick and what helps the brand to be memorable. In a time when financial pressures mount in every corner of the world, it is not surprising that humor and emotive storytelling permeate all award-winning ads,” said Jane Ostler, EVP, Global Thought Leadership, Kantar.

Source: Kantar

KFC HIRES COCA-COLA VETERAN JONATHAN OJANY AS CFO

K

FC U.S. has named Jonathan Ojany as its new chief financial officer, effective May 1. He will report to Tarun Lal, president of KFC U.S., and relocate to the KFC U.S. headquarters in Louisville, Kentucky.

As CFO, Ojany will be responsible for building and executing a strategy for the KFC U.S. business, and overseeing finance plans designed to achieve growth, revenue and profit targets.

He joins KFC from The Coca-Cola Company, where he spent eight years in regional and global strategy and operational leadership roles based in Africa and the U.S. Most recently, he was VP and head of Center Strategy and Operations, where he led a wide range of global initiatives, many in con-

junction with Coca-Cola’s franchise bottling partners. At Coca-Cola, he also held roles as the chief of staff to the global president, and chief operating officer as well as the head of strategy, planning, insights, and analytics for a majority of its Africa business.

Prior to The Coca-Cola Company, Ojany spent two years in the hospitality industry with Intercontinental Hotels Group as director of Global Strategy and Planning.

He also has extensive strategy and management consulting experience, having spent five years at McKinsey and Company, leading teams that effectively advised clients on key strategic, operational, and transformational initiatives.

Source: NRN

Spring 2023 AKFCF Quarterly 15

In the NEWS

Condolences: It is with great sadness that we communicate Mr. Isidro Perera, KFC Costa Rica General Manager and CARIBLA Franchisee Association Past President, passed away late last year. The CARIBLA family would like to express our deepest and heartfelt condolences to Isidro´s family and business partners. Condolences can be sent to his personal email address (currently administered by his son): pererai63@yahoo.com.

Judy Fannin passed away in late December of last year at the age of 83. Judy and her husband, Cecil, were franchisees with 16 restaurants in Kentucky, Ohio, and West Virginia. Judy enjoyed gardening, decorating for all holidays and cooking wonderful meals.

She expressed her love by writing and publishing four cookbooks, which she generously gave to family and friends. Judy also was an avid gardener and community volunteer, even representing Kentucky as a Delegate to the Democratic National Convention in San Francisco in 1984. She was preceded in death by her parents, Josiah Jackson Harrison and Nancy Harrison; husband, Cecil Everett Fannin Jr.; and brother, Josiah Jackson Harrison Jr. Dr. Troy Larkin Day, 95, passed away Mar. 22, 2023, in Kannapolis, North Carolina. Troy started Day Enterprises, Inc., which was a KFC/Taco Bell franchise with 27 restaurant locations across North and South Carolina. He operated the business for over 47 years. It

16 AKFCF Quarterly Spring 2023

is now a third-generation family business in operation for more than 57 years. His professional work-related leadership roles included Director & Past Chairman of First Union National Bank Board, Kannapolis, Director & Past President Southeastern Kentucky Fried Chicken Association and National Franchisee Advisory Council of Kentucky Fried Chicken.

Troy is survived by Pauline Smith, his wife of 74 years. He had eight siblings and three children: Diane Overcash (Eric Overcash), Linda Rosenbalm (Dan Rosenbalm), and Sandra Felker (Eric Felker); seven grandchildren, and nine great-grandchildren.

AKFCF Past President Darlene Pfeiffer passed away on Apr. 6, 2023. Known as a generous philanthropist, renowned business leader, and community leader, Darlene started her professional career as a flight attendant with TWA Airlines, but would soon become one of the first female KFC franchisees as well as a twotime president of the AKFCF. She was the recipient of the AKFCF Lifetime Achievement Award in 2016. In addition to expanding the KFC Colonel Sanders Scholarship program, Darlene instituted the Darlene L. Pfeiffer Scholarship program at SUNY Ulster in New York and created a center for entrepreneurial studies and a Technology and Innovation Lab. Some have called her the “Chicken Queen of the Hudson Valley” because she owned and operated her KFC stores for over 50 years

in the area. Her legacy is forever etched in the community.

Patricia S. “Pat” Middleton, age 82, of Elizabethton, Tennessee, passed away on Apr. 6, 2023, after a brief illness. Born and raised in Savannah, Georgia, Pat and her late husband, Charlie, moved to Elizabethton to open their first Kentucky Fried Chicken in 1968 and over the next 47 years they built their business. After deciding to sell the business, Pat enjoyed traveling and spending time with her family, grandchildren, recent new great-grandson, and friends.

In addition to her parents, she was preceded in death by her husband, Charles William Middleton. Those left to cherish her memory are her daughters, Anne Estep and husband Mark, Charlene Ray and husband Keith, and Crystal Slagle and husband Pete, as well her grandchildren, great-grandchildren, extended family, and friends.

Franchisee Joseph A. Campbell, 57, of Galion, Ohio, passed away following a courageous battle with cancer on Apr. 11, 2023. Joe is survived by his wife of 33 years, Linda L. (Curtis) Campbell and their son, Nicholas; daughter, Sarah (Jason) Adolphus; two sisters, Jackie Biederman and Jan (Lloyd) Bilsing; and numerous nieces and nephews. Joe co-owned the Kentucky Fried Chicken franchise in Galion for many years. In addition to feeding his community, he enjoyed remote control cars, working in his woodshop, camping, and spending time with family and friends.

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

Rubicon’s used cooking oil and grease trap services allow restaurants to streamline their waste and recycling services.

Turn organic waste into valuable resources

We help you: • Determine volume and objectives • Procure reliable service providers • Manage setup of all vendor services • Receive, process, and confirm service requests • Consolidate invoice processing • Generate verified reporting For grease traps we can review all manifest for: • FOG Levels • Repairs • Debris Rubicon is a digital marketplace for waste and recycling, and provider of innovative-software based products to businesses worldwide. Contact us today and let us start finding economic value in your waste stream.

Learn more at rubicon.com

Spring 2023 AKFCF Quarterly 17

GAC Report

Debt Limit Debate Continues

18 AKFCF Quarterly Spring 2023

By Amber Peoples

W

ith the risk of a historic government debt default impending, Congress and the White House are feeling immense pressure to reach a compromise.

In January of 2023, United States Treasury Secretary Janet Yellen sent a letter to congressional leadership, detailing the need to increase the country’s statutory debt limit to avoid defaulting on its obligations. The debt limit, which Yellen’s letter explains is “the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations,” has been set at $31.381 trillion since December of 2021. While there is no specific date of expiration, Yellen cautioned that all “cash and extraordinary measures” could be depleted as soon as early June.

Spring 2023 AKFCF Quarterly 19

What will it mean for the United States if an agreement cannot be reached in time? In the case that lawmakers are not able to compromise to raise the country’s spending limit before the government defaults on its financial obligations, the United States would no longer be able to issue new debt

In the case that lawmakers are not able to compromise to raise the country’s spending limit before the government defaults on its financial obligations, the United States would no longer be able to issue new debt and would not be able to pay its bills. and would not be able to pay its bills. For a nation whose economy is already unstable, this could mean a financial crisis, including rampant loss of employment and a devastating economic recession.

Since receiving Yellen’s letter, Speaker Kevin McCarthy and House Republicans were clear on their intention to approach debt negotiations by cutting

20 AKFCF Quarterly Spring 2023

spending elsewhere. “I want to find a reasonable and a responsible way that we can lift the debt ceiling but take control of this runaway spending,” McCarthy told CBS during his January appearance on “Face the Nation.” However, McCarthy faced a difficult battle against his own party to reach the gavel in January of this year, which culminated in a compromise to ease the pathway to removing him from the highest seat in the House. While failing to raise the debt limit soon could spell disaster for the country’s economy, the Speaker also knows that conceding to the President might mean the end of his reign in the House of Representatives.

President Joe Biden has welcomed discussions on fiscal policy with House Republicans but has been outspoken about his refusal to compromise by associating any increases to the debt limit with spending cuts. Biden’s hesitation to negotiate can likely be tied to the missteps of his democratic predecessor during 2011 negotiations, when President Barack Obama made painful concessions in a desperate attempt to reach an agreement with Republicans.

In late April, House Republicans narrowly passed the “Limit, Save, Grow Act” by a vote of 217-215. The bill, which was intended to initiate discussions with President Biden over the

looming debt crisis, would limit federal spending, rescind unused COVID relief money, recall funding provided to the IRS, repeal elements of student loan relief, and expand work requirements for recipients of federal assistance. Additionally, if signed into law, the legislation would suspend the debt limit until March 31, 2024, or by $1.5 trillion, whichever comes first. The White House released a statement on the bill, calling it “a reckless attempt to extract extreme concessions as a condition for the United States simply paying the bills it has already incurred,” and saying that it would be vetoed if brought before the President.

Biden has also stated that any legislation related to the debt ceiling should extend the deadline for longer than one year to avoid difficult negotiations in a presidential election year.

Discussions between Biden and McCarthy, which have been halted since February 1, resumed in the early days of May. According to reports, the two lawmakers and their respective staffs have been working to reach an agreement, with Biden saying of the talks, “I think they are moving along, hard to tell. We haven’t reached the crunch point yet.”

While failing to raise the debt limit soon could spell disaster for the country’s economy, the Speaker also knows that conceding to the President might mean the end of his reign in the House of Representatives.

Stay Involved, Donate to the AKFCF PAC Contributing to the AKFCF Political Action Committee (PAC) is the best way to support the election and re-election committees of pro-business Members of Congress who share the same concerns as franchisees. The money raised in the PAC goes directly to the campaign of those running for Congress, or incumbent members seeking re-election.

You may make your 2023 AKFCF PAC donation online by visiting our portal on the AKFCF website in the Government Affairs tab.

For more information, please contact your regional GAC representative or Amber Peoples of Polaris Consulting, LLC (apeoples@polariswdc.com). n

Celebrates its 35th Anniversary This past January, NDA completed its 35th year of providing KFC franchisees business services in the areas of: SELLING BUYING VALUATIONS FUNDING Business consultation rounds out the general categories above. We at NDA want to extend a big THANK YOU for your support over these years with the hope and expectation of continuing this long-term relationship with the new generations of KFC franchisees going forward.

Each of our client’s goals and objectives are unique to their particular circumstances and NDA recognizes and respects the personal nature of each assignment. So remember…..

NDA is Ready When YOU Are! WWW.NDAINC.NET

Mitch Rue

John Pinar

502-552-6991 johnp@ndainc.net

502-618-4896 mitchr@ndainc.net

Derek Diachenko

502-495-2262 derekd@ndainc.net

Nick Diachenko

502-495-2345 nickd@ndainc.net

Byron Burge

502-618-4895 byronb@ndainc.net

Spring 2023 AKFCF Quarterly 21

22 AKFCF Quarterly Spring 2023

Spring 2023 AKFCF Quarterly 23

A

ttending the AKFCF Convention in Austin was like attending an annual family reunion. Whether you came from a large franchise family or a single operation, the AKFCF Convention had a reason for you to come home and visit with family. But hopefully without all the drama!

The AKFCF Annual Convention is something that people always look forward to because no one is thinking about all the problems or things that they must do; they are there to celebrate and have a fun time with their KFC family, and that we did!

The Convention brought together franchisees who had never met as well as those who have known each other for years. The Convention encouraged open communication among all family members during this week of togetherness. It provided educational opportunities for the various generations to learn the latest information about the brand and pass on historical information. It celebrated the meaning of family by sharing memories and the Colonel’s rituals as well as encouraged a sense of belonging to something greater than your nuclear family. I think we all felt that we belonged to this family while listening to AKFCF President, Keith Cole’s opening keynote.

Sometimes, as an attendee at Convention, you can get overwhelmed with the entirety of it all, but your extended AKFCF Family made this Convention so much fun. They made you remember the party and talk about it forever.

It brought our KFC family closer together. I think we all brought home some wonderful memories.

It was a reunion where long-time friends and family gathered and reconnected. Although we live in a multimode communication (e.g., emails, Facetime, telephone calls, social media, texts) era, there is no substitute for the physical presence and an extended period we all spent together in Austin. The opportunity to engage in conversations that were not time-restricted encouraged deeper communication. Even small activities, like talking over breakfast or meeting in the lobby bar, stimulated friends to reminisce or discuss their opinions and thoughts.

We learned a lot about our KFC family, the brand, and ourselves over four days and made stronger connections with others. The AKFCF Convention was a powerful vehicle for accomplishing this.

24 AKFCF Quarterly Spring 2023

EHT-V DISHMACHINE

VENTLESS HIGH-TEMP WAREWASHING SYSTEM

Fast. Easy.

Automated.

Best results with lowest total cost.

Contact us today to learn how automated procedures improve compliance. ©2019 Ecolab USA Inc. All rights reserved.

800.529.5458

A Foundation of Family

Keith Cole chose “A Foundation of Family” as his theme for the year; and during Convention, he explained why.

First, we brought the KFC Foundation into our final night celebration this year, where it belonged. That was the foundation part. The family part, he explained in detail during his keynote address. Here is a portion of that keynote: “Growing up with seven brothers and sisters in a three-bedroom, one-bathroom house, it seemed as though ‘family’ was the only thing that really mattered. In bad times, it was crowded, noisy, and chaotic. In good times, it was … crowded, noisy, and chaotic. But we had each other’s backs.

That’s what families do.

I once read that ‘Referring to your company co-workers as family, obscures reality and can make a painful process even worse.’ But if you put your trust and time into someone and it doesn’t work out … it’s painful rather you call them team or family.

Just as a family can be the single most important influence in a child’s life, a work family can be the greatest influence in a person’s career.

You grow with their support and encouragement. You excel with their applause and cheers. Then you pass that support on to those who come after you. Together, you grow and protect the nucleus that is that family. That family is our brand!

Stay in the family long enough and the mentor can become the mentee. It’s like parents and children. As parents, we guide and nurture our children and then one, beautiful day, you realize the children are now helping to guide and teach the parents.

We are a blended family that is diverse in backgrounds, of different paths and trajectories, heroic, come in all size organizations, innovative, generous, data-driven, supportive and larger than life personalities.

All this emotional connection is why I chose ‘Family’ as part of my theme. I look around this room and I don’t see a team. I see a Family.”

KFCC General Session

We also met our newest family members from KFCC. KFC President Tarun Lal (pictured far right) introduced his new dream team on stage in Austin and gave an in-depth look at their new strategy for the brand. Pictured L-R are: • Ford Halbardier - Chief Transformation Officer • Agustin Dominguez - VP, Field Operations • Kate Ward - Chief Legal Officer • Doug Cook - Sr. Director, Restaurant Excellence • Vijay Sulumar - Chief Food Innovation Officer • Ben Dubost - Chief Development Officer • Nick Chavez - Chief Marketing Officer • Karen Ancira - Chief People Officer • Sam Ullrich - Interim Chief Financial Officer • Chris Caldwell - Chief Technology Officer

Tarun presented the KFC 2.0 vision, and the six missions they are undertaking on the journey to accelerate growth and become a $10-billion brand in the United States by 2030. That K2 journey begins with a shared purpose which we can all travel together. Following are some of pieces of Tarun’s presentation.

26 AKFCF Quarterly Spring 2023

Tarun Lal

As we look at delivering on our potential, we must always start from our position of strength. And there are many, but he summarized them as: “1. We are a loved brand with a strong brand recognition.

We have the Colonel as our icon … one of the most recognized people in the world. There are only a few brands that have as strong a heritage — Coca-Cola is one — so, we are in the league of the best.

2. You ask anyone what the tag line “Finger Lickin’ Good” stands for and you will get the answer … KFC! We stand for serving the most delicious food on the planet.

3. We have incredible pockets of excellence around this country and in this room. Look at restaurants run by Larry Starkey, or Michael Fulenwider or Dave Evans, or Tom Broome, or the Stewarts …The list could go on. There restaurants are already averaging upwards of $1.8-million … because they execute the fundamentals so well, take care of their teams and customers, serve consistently high-quality craveable food, and so on.

4. And finally, there are not many parts of the world where we have such a dedicated and engaged group of franchise partners … as we have in the U.S. And I salute all of you for your loyalty and commitment to the brand.

Now, despite all these strengths, we are losing relevance with our customers, Tarun continued. And we are losing relevance not only with our customers, but also with our franchise partners. Some of the key reasons for this are: 1. Our lack of customer centricity … the Colonel was a strong believer in service … for some reason we have lost our way. We rank in the bottom quartile on customer experience. What is interesting is the feedback from some of our own employees when I ask them what your one wish for the brand is. Guess what they say … they want their family and neighbors to stop complaining about their experience at KFC and instead compliment them for the exceptional experience they had. Do you know we recover about 15 percent of customers who complain, and it takes us 30 days to

EMPOWERING THROUGH EDUCATION GED Achievement Program

100% Tuition Coverage at WGU Up to $20,000 in Scholarships

kfcfoundation.org *Franchisee must participate in the KFC Foundation’s Annual Donation Program for employees to be eligible ©2023 Kentucky Fried Chicken Foundation, Inc. The Kentucky Fried Chicken Foundation is a non-profit, 501(c)3 organization.

Employees must meet eligibility criteria for each program.

Spring 2023 AKFCF Quarterly 27

3. There should be better partnership between franchise partners and corporate.

4. We need to build smaller and cheaper assets.

5. We must deliver better team member experience.

6. And so on…

KFCC P.E.T.E Award Winner Raziel Valiente

recover them? We all know that our customers vote with what is most important — their wallet — and we have a very small share of that … about only 1.7 percent …McDonalds has about 20 percent.

2. Second, our customer habits have evolved. Many of them prefer boneless and they prefer to engage with our brand digitally. We have made limited progress in both these areas.

3. From our franchise partners’ perspective, there is a huge mismatch between the investment required to open/operate a KFC and the returns from it. There is currently no logical reason to invest your money into new store openings.

4. And finally … internally … we have become a big bulky system with bureaucracy and slow decision making.

And we know what happens to organizations that become irrelevant … they disappear very quickly. They become complacent and big, and do not see and evolve with the trends.

But we are not like them. We know there is a gap between what our customers want and what we have to offer … and we will do what it takes to become relevant again with our customers. So, we started with the easy part and set ourselves a bold goal: Our ambition is to deliver $2-million AUV’s, open 1,000 more NNU, and deliver system sales of $10 billion. Now, it’s easy to define an ambitious goal — or where you wish to get to — it’s far more difficult to land the right strategy to get there.

So, we again took the easy route and went to our franchise partners, to you … to seek your knowhow and combined expertise on what direction to take. This is what we heard from them: 1. We need to deliver a better app and website experience.

2. We must consistently deliver hot and fresh food.

28 AKFCF Quarterly Spring 2023

What we heard from you and with the help of our friends from Bain consulting …We have come up with a new project plan. We are calling it K2. K2 stands for many things.

1. It’s the second-highest mountain range in the world … and requires a lot of hard work for climbers to get to the peak.

2. It stands for the 2nd set for KFC … so K2.

3. And finally, it reflects our ambition of every KFC store hitting $2 million in sales.

But before we get deeper into our strategy, I want to begin with the importance of a relentless focus on customers. Without this mindset shift, nothing will be possible. Look at the top companies today. If you listen to their CEOs on their formula for success, they will attribute it to a customer first mindset.

• Amazon: Jeff Bezos in every interview says the key strategy behind Amazon’s success is their relentless focus on customers.

• Starbucks: Has shown us the power of personalization and loyalty.

• Apple: has shown how design focused on customers’ needs have driven ease and loyalty for their product.

By the way, one of the world’s best founders and CEOs also believed in the same philosophy … our very own Colonel Sanders said, “Service is the best thing you can give to your customers.” With a customer-first mindset, we have developed a strategic

KFCC Developer of the Year Michael Fulenwider

roadmap of six key missions and over 20 projects that sit under these missions: 1. We must build the best brand and have a heartled, high-performing culture. More importantly, we need to come up with a brand purpose which becomes a rallying cry across the KFC ecosystem.

2. We must elevate our TM experience and then demand they elevate our customer experience.

3. To be relevant, we have to offer more compelling value and create a menu that resonates with our customers and drives growth for our business.

4. We must WIN on digital; this is how the new generation will access us in the future …We must be on top of our game.

5. We must deliver much stronger restaurant economics. We recognize that our partners invest their hard-earned money into our brand, and they deserve attractive returns.

6. And finally, if our store returns are solid, our franchisees and our shareholders will invest in new builds.

As highlighted before, we need a unified brand purpose that becomes a rallying cry for the entire

KFCC Franchisee of the Year Award Justin and Todd Stewart

business. Importantly, we must become an agile, nimble organization with a high-performance culture and a GROWTH mindset, Tarun continued.

Mission 2 is about elevating our TM experience, so they can deliver better guest experience. Look at the delta between the bottom-performing and top-performing restaurants on guest metrics … it’s

Availability & Waste The levers of your brand promise come through the middle of house.

Obtaining MoH intelligence to comprehend availability and waste engenders this as high value.

Increase Availability & Freshness Score.

KorrectProduction Formerly QPM

Middle of House Intelligence by

Spring 2023 AKFCF Quarterly 29

10-percent sales. We can drive SSSG of 10 percent by improving our operations. It’s about making sure that we always deliver finger lickin’ good food with speed and accuracy to our customers. Finally, if our customers do have a poor experience, we must have relentless focus on winning them back. We can’t afford to lose our customers.

Our third mission is about building a menu that’s relevant for our customers … and one that will unlock growth for us in the short- and long-term.

We must play bigger in the boneless category, and it must be an offensive strategy vs defensive. We cannot have substandard ops procedures — like over holding products. We are competing with the best and we need to have standards that can help us beat them.

We must be conscious of the role value plays in making the brand more accessible. We will need a HE and LE strategy always. That will mean partnering with RSCS to have more effective negotiations with our suppliers.

Our 4th pillar is winning on digital. Our customers are consuming differently. In addition to digital making us more contemporary and providing our customers additional access points, digital is also accretive to our margins. Look at our check average from our digital business. We can grow our SSSG by 10 percent a year simply by increasing our digital mix.

Remember that, at an average, traditional companies grow by 3-5 percent. Digital companies, on the other hand, grow by 30-40 percent a year. Can you imagine if 30 percent of our business starts growing at 30-40 percent every year?

Nick Chavez

30 AKFCF Quarterly Spring 2023

Big ask … lets go all in with digital!

Our 5th pillar is improving our 4 walls economics. I know the system has been under tremendous pressure.

Our way out of this hole is managing costs in partnership with RSCS, but also to drive sales. The key, as you all know, in the QSR business is to drive sales to mitigate the impact of higher fixed costs. Our commitment to you is that we will work tirelessly to get our margins back to 15 percent.

And finally, our last pillar … we must sharpen our asset strategy so that we can start building new stores again. Our store counts have been falling for over 15 years now; we must reverse that. What does that mean?

We need to use technology to find better sites, we need to build smaller, cheaper, more digital-focused stores and we need to have more contemporary designs to attract our dine-in customers.

Now, we all know it’s easy to put a strategy deck on paper, but execution eats strategy for breakfast.

Disciplined execution of each one of these missions will be critical as we transform our business. To enable this, we have broken the missions into specific projects, created cross-functional teams to bring these to life, introduced a new transformation office to support the timely execution of these projects and very importantly, have taken the support of some of the more experienced franchise leaders to guide and support our teams.

Now, let’s get to our fly wheel: If we execute well, we should deliver 5-percent transactions growth a year, which help deliver 15 percent store-level EBITDA’s and improve the returns on investment of our stores. That will unlock new stores, more marketing dollars, higher sales and the fly wheel will continue to move faster, propelling our business into a growth trajectory.”

Tarun concluded by saying his commitment was that his team will tirelessly work on bringing these missions to life and to supporting franchisee and restaurant teams better. He only asks that each of us commit to the following: • We can’t do this on our own; we need partnership.

Together, we will be much stronger.

• KFC stands for great tasting food. Please work with your restaurant teams to bring our customer promise of finger lickin’ good food to life — every day, every shift, every transaction.

• And finally, let’s bring joy to our customers. Let’s make sure we put them front and center of everything we do through our relentless focus on delivering a great experience to them.

CMO Nick Chavez presented the brand purpose, the reason why we exist. It’s a statement intended to guide and unify our teams, our leaders, and the entirety of our organization. And critically, it’s what

KFC does and what our products do FOR OTHERS, not for ourselves. In short, it’s NOT WHAT we do. It is WHY we do what we do.

Our brand purpose is to serve everyone joy with our original recipe. Nick explained the purpose in detail during his presentation: “Let’s break that down because we’ve been very intentional about each word.

1. To serve — we prioritize service and hospitality, we’re friendly, not rude. Just like the Colonel, we greet every guest, treat them well, and do their chicken right. This applies to our team members too — we serve and support them!

2. Everyone — we welcome every guest, every day of the week. Again, as Colonel Sanders said, “KFC is a place where a millionaire and a truck driver can eat side by side.” WE WELCOME ALL. In our

restaurants and on our teams, everyone has a seat at the table.

3. Joy — our goal is to leave our guests full of food and full of joy.

4. Original Recipe — we are the original fried chicken experts, and we are ALWAYS ORIGINAL in everything we do.

Joy is an incredible emotion, originality an incredible aspiration. People should experience both and feel them every time they see and visit KFC. This is not a pipe dream. We do this currently, in big ways and small ways, every day. Serving every guest and team member Joy in every touch point, ad, experience, and interaction will ensure we grow the best brand in our category and continue to grow the biggest and best restaurant brand in the world,” Nick concluded.

Opening Keynote Speaker – Shola Richards Shola set the tone for the Convention by sharing the power of the Ubuntu mindset with us all.

What if our global mindset was refocused on the transcendent concept of Ubuntu — the African philosophy that represents the power of human connectedness, kindness, and compassion? In his vulnerable and thought-provoking talk, Shola Richards addressed that important question, while showing how Ubuntu can be used to transform how we work, live, and lead.

By encouraging collaboration, open communication, and positivity, organizations can foster a supportive environment that promotes engagement, motivation, productivity, and job satisfaction.

Closing Keynote Speaker – Justin Patton Justin closed out the 2023 Convention with positive energy and left us all feeling inspired.

We learned how to build lasting trust with our teams, customers and loved ones. Success is just not about achieving results, but also about bringing people along with you on the journey.

Spring 2023 AKFCF Quarterly 31

Backyard BBQ Bash

It was a beautiful night under the stars at Stubb’s BBQ as more than 1,100 members of our KFC family enjoyed a night of mouthwatering BBQ, cold beer, and some of the best live music you will ever hear from a group of very talented students called The Uptown Music Collective. In keeping with our theme, A Foundation of Family, this event combined the two again. The Uptown Music Collective has been a part of Keith’s family experience for years with both of his daughters participating in the group. The UMC wowed the audience with every song and left us wanting more. The KFC Foundation sold tickets to the VIP room for a more intimate experience at Stubb’s and held a live auction to raise money for KFC employees.

Thank you for your support of the KFC Foundation during Convention!

The KFC Foundation team had a blast reconnecting with everyone at Convention.

Congratulations to the winners of the 2023 Colonel Classic golf scramble: Rich Watson, Patrick Forbes, Paul Cantrell, and Thomas Brooks. They will be the second team to have their names engraved on the Colonel Classic Golf Scramble Champion trophy.

Huge thanks to all who participated in our Colonel Classic Golf Scramble (as a sponsor, golfer, or volunteer), silent auction, and live auction; gave a monetary gift; donated items for our auctions and raffles; purchased tickets to our VIP Area at Stubb’s; bought t-shirts and hats; and stopped by to say hello during the trade show.

We’re excited to share that, because of you, the Foundation raised more than $200,000 during Convention! This money will go right back into programs and resources that support and empower KFC restaurant employees.

Thank you, thank you, thank you. Together, we are changing lives.

32 AKFCF Quarterly Spring 2023

AKFCF AWARD WINNERS AKFCF President’s Award Winner – Jim McKenzie Jim McKenzie is an exceptional leader in our system. He is a partner and advisor to many, and selflessly gives his time and talent to all within the KFC family. A strategic business leader and industry advocate, he is regarded as an executive who is a champion for others. He has developed, coached, and created rich careers not only for those who work directly with him, but also for those who have worked alongside him in volunteer roles. He gives 110 percent of himself to any task, is always engaged, and greets everyone with a smile. His personal involvement in numerous committees and boards of AKFCF, the Greater Midwest, NCAC and KFC has helped to shape the brand we know today. He is a strong team player who is also highly personable, visible, approachable, upbeat, and inclusive. His personal team motto is “Together Everyone Achieves More!” Not only is he committed to the KFC business, his 22 restaurants and community, he is even more so to his family which expanded again last year with another grand baby.

VRF

R E A D Y T O O R D E R READY TO ORDER READY TO ORDER READY TO O R DE R ORDER LENNOX VRF TODAY! Outdoor Units Available in 6 to 40 tons

Spring 2023 AKFCF Quarterly 33

AKFCF AWARD WINNERS AKFCF Outstanding Partner Award – Emma Horn As a brand, we are blessed to have Emma exist to serve and invest in the future of our KFC employees.

The KFC Foundation provides education and hardship assistance to resilient restaurant employees in an inclusive environment. As

has been stated many times, we are ALL part of the KFC Family, and we would not have the success that we have without our awesome partners.

Over the past three and a half years, Emma Horn’s leadership has resulted in incredible initiatives that have made a tremendous impact on your restaurant employees and their communities, including: • Re-envisioning and re-launching Kentucky Fried Wishes as a community non-profit wish-granting program, which provided a total of $500,000 in impact to 50 organizations across the country in 2021.

• Working cross-functionally across the KFC system to launch Round Up in restaurants, which raised $1.5 million in the first campaign, nearly doubling the Foundation’s annual operating

budget for that year. Since Round Up first launched in Fall 2021, your teams have raised more than $4.5 million over three campaigns.

• Rolling out a partnership with Crisis Text Line to provide 24/7 text-based mental health support for your employees.

• And of course, bringing tuition-free college to your employees, which launched at the beginning of February!

Throughout it all, Emma has worked collaboratively and effectively with the AKFCF and KFC’s many franchisees, building strong relationships, listening to, and implementing our feedback, ideas and more. It is undeniable that our KFC Family is better because of Emma and the impactful work she and her team are doing to support and empower KFC restaurant employees!

AKFCF Colonel’s Legacy Award – Austin Felker As franchisees, we want the height of our career to be the floor of the next generation’s. In 2016, this third-generation franchisee joined the family’s KFC franchise business and is now vice president, overseeing finance, operations, marketing, technology, food safety and innovation, real estate development, equipment, regulation, and compliance.

Austin followed his love for public policy and

politics by becoming involved as a franchisee leader in AKFCF and the Southeast Region’s Government Affairs Committees. During his GAC roles, he has participated in multiple fly-ins to Washington, D.C., to meet with members of Congress to educate (lobby) members for support of numerous legislative regulations and proposed bills.

He has worked in concert with franchisees, AKFCF Committee members, Yum! Government Affairs, and our AKFCF Legislative Affairs Lobbyist, Dan Gans, on various legislative issues such as: • (PPP) Payback Protection Program • (QIP) Qualified Improvement Property and Bonus Depreciation Legislation • Commodity Pricing and regulations • Department of Labor and other Local, State and National Legislative Regulations • Election cycle education for franchisees.

Austin has taken the role of GAC Chair by the horns, and we couldn’t be happier with the job this young man is doing. His involvement is solely for the betterment and enhancement of the KFC brand and its franchisees’ long-term financial and operational health.

34 AKFCF Quarterly Spring 2023

Fresh Savings, Hot Out of the Fryer Nearly 2,000 KFC restaurants are already simplifying their cooking oil handling with Total Oil Management, the all-in-one solution for delivery, filtration, and recycling.

They’re saving money, too. Join them & combat rising oil prices with a special pricing program we cooked up with RSCS, exclusively for KFC kitchens.

em that t s y s a ’s “ It lf over e s it r o f pays again.” and over ansen, - Matt H rands BP B C OO of K

Start Saving Now!

AKFCF AWARD WINNERS AKFCF John R. Neal Award – Joan Bowling Many of us have had the opportunity to watch Joan grow as she climbed up the AKFCF, NCAC, and KFC ladders. Over the years, she has

played an important role in many of our careers. She is a kind-hearted person, exceptional leader, and an inspiring partner who is not afraid to consider new thoughts and ideas, no matter where they come from.

She started her KFC career at age 16 as a cashier and now is the owner of nine restaurants.

She played an integral part in the passing of the historic Acceleration Agreement, signing that agreement on behalf of the AKFCF. She has been a true leader by serving the franchisee family as president of the AKFCF and the Greater Midwest Region. She was the only female franchisee board member

AKFCF Lifetime Achievement Award – John Marsella John Marsella was born and grew up in South Philadelphia, raised by first-generation Italian American parents along with his brother and sister. He married Janet while serving in the Marine Corps, where he continued to serve after Vietnam and until after their first child was born.

He was hired as an assistant manager at Gino’s, receiving several promotions including general manager and special project manager. Eventually, he reported

36 AKFCF Quarterly Spring 2023

directly to Mike Phillips, the Vice President of Gino’s. John and Mike remained close after Gino’s dissolved, and they teamed up in 1980 to start their KFC franchise company, Philmar Mid-Atlantic.

Philmar Mid-Atlantic thrived over the years, and John received numerous awards from KFCC, including White Glove, Sales Growth, Operations Excellence, Development Franchisee of the Year, and Franchisee of the Year. In 1990, John became the Operating Partner of Summerwood Corporation alongside Jim Natsui, whom he had met when Summerwood opened their first KFC in Wrightstown, New Jersey.

John continued to run excellent operations, was a champion of the KFC brand, always working to improve and influence. For example, he created the Colonel’s Rotisserie Gold Chicken in 1993, and in 1995 he began to lead the charge of Multi-Branding. Once again, he garnered many awards, this time with Summerwood,

on the NCAC for several years, and is committed to mentoring and championing women in the KFC system. She sits on the executive committee and the National Marketing Committee, is a representative for RSCS, and sits on the board of the KFC Foundation.

We value her partnership and her willingness to share her knowledge to help grow the brand, as well as her commitment to doing the right thing and to moving forward. When Joan is not working in her restaurants or for the KFC brand, she is the proud mom of three children and three grandchildren.

including the P.E.T.E. award in 2005.

Throughout the years, John was president of the AKFCF, NCAC, the Northeast Association (twice!) and served on every board to which he was asked to contribute his knowledge and leadership.

Jim Natsui may have said it best: “John is a Marine. If there is someone you want in the foxhole with you, it’s him.” Many people he has worked with reflect on John’s courage, empathy, and intentionality. He has mentored countless people from all walks of life. He is just as comfortable shaking hands with legendary industry leaders at Convention as he is with his hand on the shoulder of the newest cook at one of his restaurants.

Under John’s leadership, Summerwood grew to 185 restaurants and is a major operator in Yum! John remains on the Summerwood Board of Directors, continuing his servant leadership and mentoring of future leaders.

NCAC HARDWAY AWARD WINNERS Karen Adams is an important partner to our franchisees, especially in the Southeast but more recently to the entire system. Karen has been with the KFC Family for more than 13 years in various roles focusing on our people — the most important part of KFC. She is a problem solver focused on a key challenge we have all faced — staffing of our restaurants as she worked tirelessly to develop and launch the national recruiting campaign supported by media. Karen’s love of our people can be seen in how she brings programs to life in our restaurants. She has been instrumental in driving programs such as: Hiring parties, Now Hiring POP materials, Our Welcome to the Coop new hire program, Managing the Best of the Best program, and the list goes on.

She sits on the KFC Foundation board and

her passion for KFC and our people is contagious.

Holly Winkel is a “lifer” in the KFC Family having been in her role for nearly 28 years. With a focus on doing what’s right, stewarding the franchisee’s dollars, and partnership with franchisees, KFCC and marketing vendors, she exemplifies what the Hard Way Award is all about. Holly is oftentimes the answer when someone says, “Who would know what we did for a certain promotion in 2000,” or “What were we promoting on TV in the summer of 2008”? She’s a great partner to the rest of the NCAC team and we always hear about how Holly’s knowledge, leadership, and partnership is unmatched.

Holly sits on the KFC Foundation Board and she is an integral part of the KFC Family. continued on next page

Spring 2023 AKFCF Quarterly 37

NCAC HARDWAY AWARD WINNERS continued Jeff Baker is a second-generation leader and has recently taken on even more leadership on the NCAC by taking on the chair role of the National Marketing Subcommittee. He is known for his commitment to his family and doing what is right for his customers and his team. He is one that increases the “cool factor” on the NCAC! Jeff has taken on an increasing leadership role over the last two years in all things

related to marketing. He has spent a lot of time with Pete Wasilevich (former NMS chair) and fellow franchisees along with the KFC Marketing team and agency partners to help grow this great brand.

Jeff is known for a continued focus on our core and not forgetting our high-end customer and business while also pushing for relevance with a younger consumer. He has been actively involved in the Bain project and served on the Steering Committee along with the projects that have come out of the strategic planning work. He gives a lot of his time and talent and he has stepped in and up to lead the National Marketing Subcommittee.

KFCC Award Winners

The KFCC Franchisee of the Year Award (formerly known as the President’s Award) went to Justin and Todd Stewart of Stewart Restaurant Group.

The KFCC P.E.T.E Award Winner for 2023 is Raziel Valiente. Raziel is CEO of RBD California Restaurants Limited.

The KFCC Developer of the Year is Michael Fulenwider.

KFCC Service Award Winners

Congratulations to these franchisees who have been in the business for 35 years or more.

Rocky Rasmussen...............................................65 Robert Kremer....................................................40 Shirley Vangeloff.................................................60 Peter Wasilevich.................................................40 William Morrow.................................................45 Anthony Lovato..................................................35 John Arsenault....................................................45 William Bunch....................................................35 John Sims.............................................................40 David Evans........................................................35

38 AKFCF Quarterly Spring 2023

Thank You!

Thank you to a very important part of the KFC Family, our vendors and sponsors! Without them, this Convention would not be possible. We at the AKFCF want you to know how thankful we are, and we value your loyalty and partnership to this convention and the KFC brand. Thank you to all our sponsors for everything you have done for us in the past, everything you still do and will continue to do!

A special thank you to all our sponsors!

BRONZE SPONSORS CONTINUED

AKFCF PARTNERS KFCC NCAC RSCS

City National Bank Claxton Poultry Conagra Brands Custom Seating General Mills George’s Golden State Foods

DIAMOND Pepsico PLATINUM

Graphic Packaging International Griffith Foods Grubhub Gycor International Harris Tea Foodservice Henny Penny Corporation Idaho Pacific Holdings InfoSync Services

continued on next page

Pilgrim’s GOLD Ecolab HourWork Keurig Dr. Pepper McLane Welbilt SILVER Anchor Packaging Barco Brakebush Brothers, Inc. Comcast Business Envysion Fortinet Genpak Gold Creek Foods Huhtamaki, Inc. Koch Foods Magnesol-The Dallas Group McCormick OK Foods Parapet Studios Restaurant Technologies Restaurant 365 Revenue Management Solutions, LLC Testo North America Tyson Foods BRONZE Accuserv Lighting and Equipment, LLC ACTuate Facility Technologies Alconox Inc. AmerCareRoyal Auspex Capital, LLC Auxilior Capital Partners Awningtec USA Inc. BrandPoint Services Budderfly Café Valley Capitol Light Case Farms Champion Industries Spring 2023 AKFCF Quarterly 39

J.R. Simplot Company Kinetico Pro Kitchen Brains Kraft Heinz Middleby Netspend On Display Otter P&G Professional Samsung Electronics of America Security Source Solink SRS Real Estate Summit Innovations Corp The Bama Companies, Inc. Trinity Capital/Citizens Bank Wells Fargo WestRock Whirley/Easy Go! Drinkware Winston Industries 2023 AKFCF CONVENTION EXHIBITORS Accuserv Lighting and Equipment, LLC ACTuate Facility Technologies ADP AKFCF Government Affairs Alconox Inc. AllPoints* AmerCareRoyal Anchor Packaging Armor Security Atlas Sign & Awning Atmosphere Auspex Capital, LLC Auxilior Capital Partners Aviko B.V. * Awningtec USA Inc AyrKing Bank of America Barco Barnett & Associates Basic American Foods BMO Harris Bank Brakebush Brothers, Inc BrandPoint Services Brother International Budderfly Bunge Loders Croklaan C H Guenther & Son Cadence Bank Cafe Valley Capitol Light Case Farms Champion Industries City National Bank

40 AKFCF Quarterly Spring 2023

Claxton Poultry CMI Comcast Business Conagra Brands Copesan - Specialists in Pest Solutions Craig Specialty Advertising CrossFirst Bank Cummings Resources LLC Custom Seating DailyPay Decisely Delaget Delfield/Frymaster/Merco/Welbilt DiFranco Innovations, LLC Diversey* DoorDash Eagle Eye Networks Ecolab Elevanta Envysion Essity Professional Hygiene Everbrite LLC Everidge - ICS/Thermalrite Facility Concepts Inc. Farm Frites* Flowers Foods Fortinet Franke Foodservice Systems* Future Energy Solutions General Mills Genpak George’s, Inc. GLMV Architecture Gold Creek Foods Golden State Foods Graphic Packaging International Griffith Foods Grubhub GSE LLC Gycor International Harris Tea Foodservice Henny Penny Corporation HourWork Huhtamaki Inc. Human Interest Hyginix, LLC Idaho Pacific Holdings Imagine Chicago Indeed InfoSync Services Insight InSite Real Estate Integrate Solar InterMetro Industries International Food Group, a Sysco Company*

Intrepid Direct Insurance ITW J. R. Simplot Company Keurig Dr Pepper KFCC KFC Foundation KFC Harvest Kinetico Incorporated Kitchen Brains Koch Foods Kraft Heinz Lamb Weston Lennox Loomis M&T Bank Franchise Finance Magnesol-The Dallas Group Manitowoc Ice Maximus McCain Calatin* McCormick McLane Middleby NCCO NDA Inc. Netspend OK Foods On Display One More Time Oracle Food and Beverage* Orkin Otter P&G Professional Pacific Premier Bank Franchise Capital Panifresh* PAR Technology Paradox Parapet Studios Partstown* Paychex Paycor PepsiCo PepsiCo, Inc. * Performance Food Service Pilgrim’s PrepWizard Restaurant Technologies Restaurant365 Revenue Management Solutions, LLC RF Technologies RJP Consulting Group RoofingSource Royalty Roofing RSCS Connection Partners RSCS Member Programs RSCS Restaurant Development & Customer Support

Rubicon Samsung Electronics of America Security Source Sharp Electronics Silikal America Skechers Solink SRS Real Estate Strategic Tax Planning, LLC Summit Innovations, Corp Summit Properties & Development Tapcheck Testo North America The Bama Companies, Inc. The Coca-Cola Company* Trane TredSafe / Walmart Trinity Capital/Citizens Bank Tyson Foods, Inc. Unbridled Capital Unified Brands Vericast ViaTech Publishing Wells Fargo Western Alliance Bank WestRock Whirley/ Easy Go! Drinkware Winston Industries Wintrust Franchise Finance WizeHire WM Workstream Zutek *Denotes a CARIBLA exhibitor

Many thanks to the 2023 Convention Committee!

Keith Cole Kelly Rodenberg Deb Newton Justin Stewart Leslie Sharp Roger Sparks Kevin Schlutz Zaira Guevara Michelle Hunt Matt Hansen

Save the Date!

2024 Annual AKFCF Convention March 19–22, 2024 The ARIA Resort and Casino, Las Vegas, NV

Spring 2023 AKFCF Quarterly 41

42 AKFCF Quarterly Spring 2023

Working Toward A Common Vision AKFCF honors five family members for their dedication.

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. Continue reading to learn a little more about each winner and what their award means to them.

AKFCF Award Winners AKFCF President’s Award – Jim McKenzie AKFCF John R. Neal Award – Joan Bowling AKFCF Colonel’s Legacy Award – Austin Felker AKFCF Outstanding Partner Award – Emma Horn AKFCF Lifetime Achievement Award – John Marsella

Spring 2023 AKFCF Quarterly 43

AKFCF President’s Award – Jim McKenzie

T

he 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.

This year’s honor went to AKFCF Past President, Jim McKenzie. Jim is a third-generation franchisee who took over his mother’s operations in 2008. Today, McKenzie Foods owns and operates 22 restaurants, all in Indiana, with more than 400 team members.

“Receiving the President’s Award from Keith Cole was a complete surprise,” Jim said. “Our Association only exists because we all contribute our time and knowhow to each other. Being recognized is not the motivation for me, but it is a good feeling to know that I am helping make a positive impact for all of us. I use a personal recognition award title: T.E.A.M. It stands for ‘Together Everyone Achieves More.’ I truly believe that!”

Jim started his AKFCF journey in the Great Lakes region, where he served on many committees and as Region President. He then served the AKFCF as Finance Committee chair, and through the Executive Committee, serving as President in 2020. Currently, Jim serves as Past President and is on the Squad committee. He also

volunteers as a board member on the NCAC, chairing the Technology Committee, and he is a member of the NMS Committee and Contract and Facilities Committee. Additionally, he was recently elected to serve on the Brand Committee for the NCAC. Jim was previously honored by the AKFCF in 2018 with a Shining Star Award. Of that award, Jim says, “Being recognized by my peers is always a very humbling honor. There are so many franchisees that contribute to our Association. That fact alone makes us who we are — a collective group of like-minded people dedicated to making our businesses and brand great!”

Jim McKenzie

44 AKFCF Quarterly Spring 2023

AKFCF John R. Neal Award – Joan Bowling

T

his 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.

This year’s honor belongs to AKFCF Past President, Joan Bowling. She is president of Dunn & Bowling LLC and operates eight KFC Joan Bowling restaurants in Ohio with her daughter, Heather Bowling. Joan has served as president of the Great Lakes Region and as president of the AKFCF (2014-15). As president, she partnered with KFCC to bring the Acceleration Agreement to franchisees during Convention. She also chaired the Leadership Development Committee and the Partnership Survey Committee. Additional honors Joan has received during her service with the Association include the Rising Star Award and the President’s Award.

“What a tremendous honor to be recognized by my fellow franchisees,” Joan said. “Getting this award only happened because other franchisees took the time to help me along the way. It is humbling to be included among a group of other franchisees that have received the John R. Neal Award! I am blessed to have a family that supports and allows me to serve alongside many great leaders.”

Spring 2023 AKFCF Quarterly 45

AKFCF Colonel’s Legacy Award – Austin Felker

T

he 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 Austin Felker.

Austin is a 2013 graduate of the University of North Carolina at Chapel Hill Business School, graduating with a major in finance and a minor in public policy. He was formerly employed by the Bank of America in Charlotte, North Carolina, where he successfully served in several financial related positions. In 2016, this third-generation franchisee joined the family’s business and is now vice president.

His organization, Felker Day, Inc., currently owns and operates seven KFC restaurants located west of Charlotte, North Carolina. “As Vice President of the company, I oversee all business aspects including finances, operations, marketing, technology, food safety and innovation, development, equipment, regulation, and compliance,” Austin said. “My goal is to help our teams deliver quality food and service to our customers resulting in measurable restaurant excellence.”

Austin’s dedication extends beyond his own family business. He has taken leadership roles in the AKFCF and the Southeast Region’s Government Affairs Committees and has worked diligently on behalf of all KFC franchisees. “In 2017, I Austin Felker

46 AKFCF Quarterly Spring 2023

began serving on the Government Affairs Committee. Since then, I’ve served the GAC in various capacities including Southeast Regional Representative, Secretary, Vice Chair and Chair,” he said.

“I was recently selected to serve as the incoming AKFCF Finance Committee Chair. It’s tremendously beneficial to volunteer and contribute to the Association. The AKFCF does an excellent job protecting, promoting, and supporting its members.”

Regarding the Colonel’s Legacy Award, Austin says, “The award means a great deal to me because my grandfather, Troy Day, is my hero. He achieved many successes professionally and dedicated his life to his family and service. The Colonel’s Legacy Award represents carrying on that same tradition in our family and I hope to make him proud.”

AKFCF Outstanding Partner Award – Emma Horn

T

he 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 Emma Horn?

Emma is managing director of the KFC Foundation. She says The KFC Foundation exists to take care of KFC restaurant employees so that they feel supported and empowered to be their best selves. “We have provided over $25 million to more than 9,000 KFC restaurant employees, students, and community non-profits across the U.S.,” Emma said. “Our charitable programs include GED achievement, college scholarships, tuition-free college, community giving, savings matching, and financial hardship assistance. All our programs are possible because of the generosity of the KFC franchisees, KFC Corporation, our amazing vendor partners, and KFC customers.”

She has served on the Convention Planning Committee for the last two years, which has allowed the KFC Foundation to

truly be a part of Convention. Last year, she received the Hard Way Award from Tom Broome and the NCAC. “I am grateful for this recognition because it means that the work of the Foundation is important and makes a real difference to our KFC family,”.

Emma said.

“The Outstanding Partner Award is recognition for the incredible work of the entire Foundation team that I am lucky enough to work with every day,”

she continued. “I am grateful for the deep and meaningful partnership we have with our KFC franchisees. We could not serve our mission of taking care of restaurant employees without our franchise organizations. They are our voice into restaurants to make sure that every employee knows they have this support available. We see ourselves as one team working together and this award shows that we are working toward a common vision.”

Your National Lighting Source

DID YOU KNOW WE SELL EV CHARGING STATIONS? JUST ONE OF THE MANY ITEMS THAT WE CAN SUPPLY IN ADDITION TO ALL OF YOUR LIGHTING: •INTERIOR (INCLUDING GERMICIDAL LIGHTING FOR YOUR KITCHEN), •EXTERIOR & SITE LIGHTING •LIGHTING CONTROLS & SWITCHGEAR! Call Tim Kossbiel at 860.670.3270 Tim.Kossbiel@CapitolLight.com LIGHTING DESIGN SUPPLY LAMP REPLACEMENT LIGHTING & ELECTRICAL MAINTENANCE UTILITY REBATE SERVICES SHARED ENERGY SAVINGS PLAN FOR REMODELS WITH NO UPFRONT COST AND MAINTENANCE INCLUDED! See if you Qualify!

Emma Horn

www.capitollight.com Spring 2023 AKFCF Quarterly 47

AKFCF Lifetime Achievement Award – John Marsella

John Marsella

T

his 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 Com-

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

©2022 Tyson Foods, Inc.

48 AKFCF Quarterly Spring 2023

mittee. 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.

For 2023, this high honor goes to John Marsella. John is a native of Philadelphia, a Marine Corps veteran who served in Vietnam, and a long-time restaurant industry executive who began his career in the 1970s as an assistant manager at Gino’s. By 1980, he and business partner Mike Phillips started their KFC franchise company, Philmar Mid-Atlantic.

Philmar Mid-Atlantic thrived over the years, opening 15 restaurants and John received numerous awards from KFCC including White Glove, Sales Growth, Operations Excellence, Development Franchisee of the Year, and Franchisee of the Year. In 1990, John became the Operating Partner of Summerwood Corporation alongside Jim Natsui, whom he had met when Summerwood opened their first KFC in Wrightstown, New Jersey. John continued to run excellent operations, was a champion of the KFC brand, always working to improve and influence. For example, he created the Colonel’s Rotisserie Gold Chicken in 1993, and in 1995 he began to lead the charge of Multi-Branding. Once again, he garnered many awards, this time with Summerwood, including the P.E.T.E. Award in 2005.

John’s volunteer work with the Asso-

John received his award prior to Convention.

ciation has included serving as president of the AKFCF, NCAC, the Northeast Association (twice!), and serving on every board to which he was asked to contribute his knowledge and leadership. His professional accomplishments are many, and yet these are not the only reasons he received this award. John has contributed his time,

experience, knowledge, and effort not for his own glory, but for one reason only: His commitment to servant leadership.

John learned servant leadership in the Marine Corps and preaches it to everyone he meets. In fact, he became an ordained minister to preach it even more.

Today, Summerwood’s operation consists

of an astounding 185 restaurants and is a major operator in Yum! John remains on the Summerwood Board of Directors, continuing his servant leadership and mentoring of future leaders.

A longtime colleague from the Gino’s days shared this about John: “Because of John’s drive, leadership, kind heart, strong standards, and vision, he has built an incredible organization. Just think of all the people he has touched and the opportunities that have been provided to so many.

Think about all the employees who became managers, and the managers who became Area Managers, and the Area Managers who became Directors, VPs and more.

Each person is better off both professionally and personally because of John Marsella.”

In addition to the KFC family that means so much to him, his own family is truly the most important aspect of his life. He and Jan have been married for 53 years with three wonderful children and a fabulous grandchild. n

PRIMARY LOGO HORIZONTAL

Happy employees make happy customers.

HourWork helps you engage and retain your crew - automatically.

Increase in retention

Stay personal, at scale

Double your applicants

The future of hourly work is here. Join us.

HOURWORK.COM Spring 2023 AKFCF Quarterly 49

50 AKFCF Quarterly Spring 2023

Building Resilience Protecting your mental health to better serve your team members and guests

By Shola Richards

T

he responsibility of leading a KFC franchise can be a daunting challenge at times. To succeed and gain market share from the competition, franchisees need to be creative, flexible, persistent, and one additional trait that stands above them all — resilient.

Resilience often is defined as the ability to withstand, or recover quickly from, difficult circumstances. However, after emerging from the life-altering experience of living through a global pandemic, navigating the depressing news cycles, and dealing with a heightened level of divisiveness in this country, it has been harder than ever for many people to tap into that skill consistently.

While true, there is something that is 100-percent within our control that can make a significant difference in the quality of our mental state and resilience, so that we can best serve our guests and team members. We need to guard the door.

What does that mean, specifically? It means that we need to be ruthless about what we mentally consume. To protect our mental health and build resilience, our number-one priority is to be steadfast about guarding that figurative door to our minds.

Spring 2023 AKFCF Quarterly 51

You’ll be shocked at how little news (if any, really) you need to consume to stay informed. If you’re unwilling to give it up completely, a best practice is to select a specific time where you’ll get your news update and then move on.

52 AKFCF Quarterly Spring 2023

This is especially true during times of high-stress and anxiety. You know … kind of like the times we’re living through right now. Here are the two things that I’m doing to enhance my resilience that will hopefully be useful for you too as you continue to serve your KFC Family: 1. Limit My News Intake This should go without saying, but if you have cable news playing in the background for hours while you’re at home, or if you’re running around town with “Breaking News” alerts pinging your smartphone multiple times an hour, that is the antithesis of guarding the door. They call cable news “anger-tainment” for a reason, right?

The biggest pushback that I get from people when I make this suggestion, is that they don’t want to be uninformed about what’s going on in the world. I get that.

But what sense does it make to load our thoughts with a steady diet of wars, mass shootings, and ceaseless political melodrama in the hopes of “staying informed?” Doing this consistently will cause anxiety overload (or outrage overload) and could have a devastating effect on your mental health and overall resilience. Not to mention, it will negatively affect your ability to lead effectively, to build meaningful connections with others, and to maintain your belief in the goodness of humanity.

To be clear, this isn’t about sticking our heads in the sand and trying to ignore reality. You’ll be shocked at how little news (if any, really) you need to consume to stay informed. If you’re unwilling to give it up completely, a best practice is to select a specific time where you’ll get your news update (Pro tip, try scanning headlines from a trusted source, instead of watching the news.), and then move on. The key is to be consciously aware about what you let in the door (in this case, the news), instead of leaving the door wide-open and allowing yourself to unconsciously marinate in it for hours on end.

If the news is making you feel great (Admittedly, I have no idea how that could be the case right now.), then, keep watching. But if you’re like me and the news is having the opposite effect, then there has never been a better time to pull back and consume news content more intentionally.

Please continue to reflect on other ways that you can ‘guard the door’ in the benefit of your resilience, your relationships, and your overall mental health.

2. Take Control of Our Social Media I’ll share with you a simple rule that I shared with both of my daughters when they were in kindergarten: If someone consistently makes you feel bad, then that person is not your friend. This advice is equally as valid for us as adults, particularly in the case of social media.

Unsurprisingly, social media usage has been on the rise for most people since the pandemic began in the spring of 2020.

Personally speaking, one of the positives about the past three-plus years is that it has inspired me to reconnect with my former high school and college buddies via social media whom I haven’t connected with in years.

However, during the same time, I’ve also noticed that there was a (thankfully) small group of people in my network who consistently posted hateful, mean-spirited content constantly. In other words, I didn’t guard the door.

I removed them quickly, and now I’m way more thoughtful about the people with whom I interact in my social media circles.

To be clear, this doesn’t mean that you need to delete/block everyone with whom who you disagree. But seriously, if seeing a certain person in your social media feed is consistently causing you to feel anxious, angry or depressed, then it’s safe to say that you should limit your time around that person if you care about your resilience and mental health.

Making these two relatively minor adjustments to “guard the door” has improved my well-being immensely, and I sincerely hope that they’re helpful for you as well. I’m also going to challenge you not to stop here.

Please continue to reflect on other ways that you can guard the door in the benefit of your resilience, your relationships, and your overall mental health.

Most importantly, I’m deeply grateful for the time we spent together at the 2023 AKFCF Convention in Austin, Texas. Spend-

ing time with so many dynamic leaders was a wonderful experience, and I’m grateful for your steadfast willingness to lead your KFC Family and your communities with excellence.

Here’s to a resilient and successful future in 2023, and beyond! UBUNTU! n About Shola: Shola Richards is a dynamic keynote speaker, author of “Making Work Work,” an award-winning director of training, and a positivity writer with a passionate worldwide following. His articles have been read by readers in more than 160 countries. Learn more at sholarichards.com.

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

Great for a MINI MEAL DEAL! Call Andrew Boyer 479.721.3133 cell aboyer@cafevalley.com www.cafevalley.com

Spring 2023 AKFCF Quarterly 53

RSCS MEMBER PROGRAMS

PICTURE YOUR SAVINGS WITH RSCS MEMBER PROGRAMS & EMPLOYEE PERKS

By Tara Morrison

B

e sure to check out our new website at memberprograms.rscs.com to start saving THOUSANDS on services for your restaurants.

Our goal at Restaurant Supply Chain Solutions is to provide a competitive advantage to our members. Through RSCS Member Programs, we offer discounts on products and services used to run your business, and we don’t stop at waste & recycling, pest control, and CO2 services. We have new programs with Armor Security and Paycor HR & Payroll, as well as renegotiated terms and pricing with Restaurant Technologies.

Our UPS program alone can save you up to 80 percent on NDA letters and 25 percent on ground shipping, so double-check to be sure your account is linked to our RSCS rates. In addition, we have negotiated discounted rates for the following: • Parcel & shipping with UPS & FedEx • Cleaning services with Cintas & UniFirst • Security systems with Armor Security & SimpliSafe • Energy Management with Choice Energy • In-store music with Mood Media • Oil management with Restaurant Technologies • Slip-resistant shoe payroll deduction programs: - Shoes for Crews - Skechers - SR Max - Careismatic Our entire list of programs can be found at memberprograms.rscs.com. Using our Member Programs Directory, you can find detailed information on each of the programs we offer, the discounts available,

54 AKFCF Quarterly Spring 2023

and contact information, so you can be sure to receive the RSCS discounted rates. Be sure to check with your designated account manager (listed on our Vendor Contacts page) to ensure you’re getting the best rates through RSCS. Our email newsletter is where we highlight our various programs throughout the year, alert you of any special promos, and provide quick access to our most recent Employee Perks flyers. Let us know if you or your team needs to be added to our mailing list by emailing us at memberprograms@rscs.com.

Employee Perks: Save on Vehicles, Electronics, Vacations, and MORE! Make sure your employees are getting the most out of being a KFC Crew Member by utilizing Employee Perks. Our Employee Perks program offers millions of discounts on products and services from a multitude of popular retailers, but one of our most

requested discounts is on rental cars. We have offer discounts at Avis, Budget, National, and Enterprise, helping you save 10 percent to 50 percent on rental cars for your business and leisure trips.

There also are deals on movie tickets, oil changes, hotel rooms, theme parks, electronics, mortgage services, and so much more!

Visit memberprograms.rscs.com > Employee Perks to download our latest flyers.

Member Program Spotlight: Restaurant Technologies You may be familiar with Restaurant Technologies, our preferred vendor for oil management. If you’re not utilizing Restaurant Technologies’ Total Oil Management, 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, a shorter renewal term of 1-year, and potential reductions in insurance premiums ($1,100/yr per store average). These new terms, along with an aggressive used cooking oil rebate that helps offset the rising cost of soybean oil, saves you upwards of $1,856 annually per restaurant.

The Total Oil Management solution automates the entire process of handling cooking oil. Restaurant Technologies installs two oil tanks in the back of the restaurant — one for fresh oil and the other for waste oil. The fresh oil feeds directly into deep fryers at the push of a button.

When cooking oil is no longer fresh enough to create the quality fried foods operators and diners expect, a button is pressed and the oil is seamlessly changed out and transferred to the waste tank. Team members never have to lift large jugs of oil or handle hot oil that could cause burns.

There are no upfront capital costs and no surprise service charges.

Restaurant Technologies offers a fully automated, closed-loop system for managing new and used cooking oil. They deliver and pick up oil via a lockable outdoor box and use web-based management reporting so that oil usage is always monitored. In addition, after your initial term with RT, you can expect a shorter 1-year renewal, as opposed to the original 5-year renewal term.

You can find more information on how to get started with Restaurant Technologies on the Member Programs Website at memberprograms.rscs.com or by emailing us at memberprograms @rscs.com. n

Our Employee Perks program offers millions of discounts on products and services from a multitude of popular retailers, but one of our most requested discounts is on rental cars. We have offer discounts at Avis, Budget, National, and Enterprise, helping you save 10 percent to 50 percent on rental cars for your business and leisure trips.

$1,856 Estimated annual savings per store 1

STORE

$ -2002

Weekly Service Fees

10

STORES

$ -20,020

New lower weekly fees and shorter renewal terms!

No capital investment Lower insurance premiums (up to $1100/yr/store) Remote oil monitoring ensures delivery before you run too low Safer, easier work environment (no heavy lifting of JIBs) Cleaner, more efficient kitchens More sustainable, less waste (reduced waste pickups) Improved food quality and consistency Web-based oil management tools & reporting

Used Cooking Oil Credit **

$ 2,415 $ 1,443

$ 24,150 $ 14,430

Total estimated savings per year

$ 1,856

$ 18,560

Fresh Oil Savings Yr. *

* Due to packaging and delivery method, bulk delivered oil is less expensive. Estimates based on forecasted 2023 forecasted oil pricing. ** Used Cooking Oil Credit estimates are based on the Q2 2022 actual credits.

Estimates provided are based on an average fresh oil usage of 387 lbs/wk and UCO of 85 lbs/wk.

Spring 2023 AKFCF Quarterly 55

KFC FOUNDATION

KENTUCKY FRIED WISHES: MAKING A DIFFERENCE IN YOUR NEIGHBORHOOD

By Emma Horn, KFC Foundation Executive Director

L

ast year, 50 KFC restaurants across the country had the experience of a lifetime — they granted a $10,000 Kentucky Fried Wish to a life-changing non-profit organization in their community. In total, $500,000 in Kentucky Fried Wishes were granted, making the communities where your employees live and work better and brighter.

In 2023, we plan to award another 50 Wishes in your communities — and we need your help!

Based on your feedback, we’ve made the entire process quicker and easier. Non-profit organizations can apply directly for a Kentucky Fried Wishes grant without a nomination from a restaurant.

This is where you come in. We need you to help us recruit community organizations to apply for a Wish!

The Diablo POP kit arriving the week of May 22 includes a handful of referral cards which encourage your restaurant teams to tell a local organization they care about to apply for a Kentucky Fried Wishes grant. The card directs the charity to the application site, informs them of the deadline (June 30), and leaves space for your restaurant to write in their restaurant ID and address to be listed as a referral on the grant application (and so they can be part of the surprise check celebration!). Non-profits will complete the application online by June 30, and the review and selection process will begin.

This is a great initiative for your restaurants’ KFC Foundation Ambassadors to lead. New in 2023, we’ve taken our campaign-specific Round Up Ambassador role and turned that into a full-year opportunity that allows team members to be an advocate and leader for the KFC Foundation in their restaurant — educating their coworkers about the programs available, encouraging the team to reach their Round Up fundraising milestones, and more! To see who from your organization has signed up as a KFC Foundation Ambassador, go to TeamKFC and search “Ambassadors.”

We’re sending quarterly newsletters to Ambassadors and hosting quarterly calls to keep them in the loop about relevant KFC Foundation news and updates. The May Ambassador call focused on Kentucky Fried Wishes and Round Up! Your teams continue to rock the Round Up, and that is allowing us to dream and go even bigger on the programs we offer. For Kentucky Fried Wishes, that looks like: 1. Giving TWOsday — The Tuesday after Thanksgiving is known as Giving Tuesday. This year on Giving Tuesday, we plan to honor two of our 2023 Kentucky Fried Wishes grantees with an additional $20,000 grant on what we’re calling Giving TWOs-

56 AKFCF Quarterly Spring 2023

“Our store granted a $10,000 wish to a local organization here in my hometown that’s special to me personally. It’s an organization that helps young mothers get things ready for a baby — anything from car seats, clothes, advice, food, etc. Since high school, I haven’t really had an opportunity to do things in my community. I’m excited to be a KFC Foundation Ambassador and be part of that.”

–Victoria, KFC Foundation Ambassador and shift supervisor at D446008 (Franchisee: Five Star, Limited Partnership) day. Our vision is that, during a designated period in the fall, restaurant employees and customers will be able to vote daily for their favorite non-profit from a smaller group of our 50 winners.

Then, on Giving Tuesday (November 28), we’ll announce the two lucky charities!

2. Quarterly Wishes in 2024 — We plan to increase the amount and frequency of Kentucky Fried Wishes awarded each year. In 2024, we’re aiming to make Kentucky Fried Wishes a quarterly community giving program so that your restaurant teams can support charities they love all year long.

Speaking of Round Up …Wow, your restaurant teams are rock stars! We are currently testing Round Up Flex, an option for a more flexible Round Up fundraising option this year where the Round Up key is always available and can be pulsed when it works best for your organization. A huge thank you to the franchisees participating in this flex pilot!

As we looked at Round Up Flex, we knew we wanted to recognize restaurant teams for their hard work and dedication. Restaurant teams receive fun and exciting recognition prize boxes as they reach each fundraising milestone over the course of the calendar year. There are seven different milestones, which means each team could potentially receive seven unique recognition boxes throughout the year.

Restaurants that achieve the impressive goal of raising $25,000 for the KFC Foundation will get to grant a Kentucky Fried Wish in their local community! This, paired with moving to quarterly Kentucky Fried Wishes in 2024, will make it even easier for restaurant teams to make a big difference in their neighborhoods.

Most of the system is participating in our traditional Round Up campaign windows this year, which are May 29-July 2 and October 2-November 12. We moved up the winter campaign to not interfere with the holiday season, which we know can be a stressful time of the year in your restaurants — thank you for the feedback!

We also heard from many of you that leaving the donation option on KFC.com and KFC mobile app year-round was a great way to raise money without asking more of the restaurant teams. We’re testing this throughout 2023. We love hearing what works (or what doesn’t!), so please send any ideas our way.

Everything we do, every life we’re able to positively impact, is possible thanks to the generosity of you and your restaurant teams. We are so thankful for their incredible fundraising efforts and for your encouragement and support as we take care of KFC restaurant employees and their communities.

Go to kfcfoundation.org/wishes to learn more and spread the word! n

KEY DATES

Week of May 22: POP kit arrives in restaurants, which includes: • Kentucky Fried Wishes Non-Profit Referral Cards -E ncourage your teams to take these cards to their favorite local charities and encourage them to apply for a Kentucky Fried Wishes grant • Round Up x Kentucky Fried Wishes POP June 1-30: Kentucky Fried Wishes non-profit application period • Your team members will be asking guests to Round Up for the KFC Foundation during this time. Kentucky Fried Wishes is a great example to share with customers of the impact their Round Up donation is making!

Late August/Early September: Wish celebrations take place October: Employee and Customer Voting Month November 28: Giving TWOsday — We’ll grant two non-profits an additional $20,000 in wishes!

Spring 2023 AKFCF Quarterly 57

REGIONAL SHORT

NORTHWEST UPDATE

By Shannon Prendiville, Executive Secretary, NWKFC Franchisee Association

T

he Northwest KFC Franchisee Association recently completed a successful return to Hawaii for our Fall Meeting 2022.

We were joined by the Southern California Region for an incredible meeting at the Marriott Waikoloa Beach Resort on the Big Island. It was at this beautiful locale where we had a productive event filled with discussions, informative presentations, and fun times.

We had a great turnout for our Fall event in October 2022. There were 200 total at-

AKFCF Shining Star recipient, Fred Jackson with Keith Cole.

tendees with about 30 vendor partner companies represented. During our meetings, we covered various topics. We received updates from our regional committee representatives. Tarun Lal, KFCC President, and his leadership team arrived via Zoom and presented their vision going forward to our region. Our beverage partners, Pepsi and Dr Pepper, presented to the group and seminars from Dan Gans and Brian Wise provided information about GAC activities and state legislative issues. Ron Gardner provided the Legal Update. In addition, we had a NW favorite, the Franchisee Roundtable. Members can discuss various topics of their choice and present best practices.

It is hoped that these discussions allow franchisees to gain new perspectives or find solutions to issues that individual franchisee groups may be experiencing.

There were several awards presented to our group. Most notably was the Shining Star Award presented by Keith Cole, AKFCF President. This year’s recipient for the NW was Fred Jackson, Northwest President. In addition, the NW region presented our Vendor of the Year Award to Curt Morford of Restaurant Technologies (RTI). In addition, the NW awarded the Evergreen Award to Marvin Jorgenson of Harman Fairbanks for his dedication to the Association over his

Vendor of the Year Award recipient, Curt Morford, Restaurant Technologies NW (right).

Evergreen Award recipient, Marvin Jorgensen (center) and family.

58 AKFCF Quarterly Spring 2023

Golf tournament winners, Ken Wise, Daniel Jackson, Noah Hommerding, Blaine Jackson.

multi-decade career. Congratulations!

We did allow time for fun. Our Golf Tournament was at the beautiful Waikoloa Beach Resort Golf Course. Emma Horn and the KFC Foundation team were at the start and golfers were able to support the KFC Foundation by purchasing “a mulligan.” Congratulations to our Golf Tournament Winners: Noah Hommerding, Daniel Jackson, Blaine Jackson and Ken Wise. Our evenings were full of fun supporting our vendor partners at Vendor Appreciation Night and the Vendor Exhibit Reception.

During the Vendor Exhibits, we had help from the next KFC generation. Fred Jackson’s grandkids called and presented prizes to the raffle winners. On the final night, we enjoyed a private Luau on the hotel grounds. The outdoor venue was beautiful and the entertainment was amazing! It’s hard not to like a Fall Meeting in Hawaii!

We hope to go back again soon.

The most recent event for the NW region was our Spring Meeting 2023. This year’s event was a virtual one. It was held on Wednesday, April 26. We provided updates from all of our committees and held a roundtable for our franchisees to discuss the topics of the day.

The most exciting news for 2023 is the NW region will be participating in the Extra Super Fall Regional Event, October 22-25.

For the first time, the NW region will join up with the SE, SW, NE, and Great Midwest regions. We’ll be in Atlanta at the Loews Atlanta Hotel. It’s going to be a sort of mini-convention. Details are being worked out and plans are being made. Event Information and Registration Links will be coming in the next few months. The NW can’t wait to be a part of this special event!

Please visit our website at nwkfc.com for meeting information and registration links. n

REGIONAL SHORT

SoCal UPDATE

By Deborah Ossanlo, Administrative Secretary, Southern California KFC Franchisee Association

T

he Southern California Region attended the 2023 AKFCF Convention in Austin with a record attendance by franchisees!

A Foundation of Family was the theme, led by Keith Cole, and what a warm and bonding experience the Convention created for all franchisees across the nation — a collection of individuals with a vast array of similarities and differences with a common goal and belief in the KFC brand. Our own region’s franchisees, Israel Diaz and his brother Jose Diaz, were recognized during Keith’s opening speech. He commented on their journey working their way up to owning seven KFC restaurants. Additionally, AKFCF President’s Award was given to Jim McKenzie who is such as warm and friendly franchisee!

We enjoyed the informative sessions and two workshops, with Justin Patton and his words of wisdom on helping leaders become better leaders of themselves. Another motivational speaker, Shola Richards, was exceptionally received with his wit and stories about his experiences encouraging us all to pay attention to our stress and mental health in order to make better and more productive life and work environments.

Over the past three years of the pandemic, the need for practicing self-kindness and self-care with resilience is key. It was eye-opening to hear that 75 percent of Americans believe that incivility has reached crisis levels in America, but 94 percent of Americans believe that they are always polite and respectful to others. Food for thought!

We shared many laughs during Darrell Hammond’s presentation and enjoyed the actor/comedian’s impressions! The vendor trade show was awesome and seeing so many old and new vendor

partners was truly exceptional! SoCal had an opportunity to invite many vendors to our own regional meeting in August this year!

The final night gala was exciting and energizing at Stubbs BBQ! The music from the youth group, Uptown Music Collective, was amazing and got us all on our feet and dancing to country songs and 80’s and 90’s tunes. These kids are something else and talented beyond belief! Stubbs BBQ was delicious as expected, and we all left the party with big smiles!

Thank you AKFCF for this marvelous Convention! n

The final night gala was exciting and energizing at Stubbs BBQ! The music from the youth group, Uptown Music Collective, was amazing and got us all on our feet and dancing to country songs and 80’s and 90’s tunes. These kids are something else and talented beyond belief!

Spring 2023 AKFCF Quarterly 59

EXECUTIVE DIRECTOR UPDATE

SPRING IS IN THE AIR

By Kelly Rodenberg

T

his time of year is always bittersweet.

After 12 months of emails, phone calls, texts and in person meetings, the AKFCF President is often the one person with whom I communicate more than my own partner. At the end of those 12 months, it’s “Next Man Up” as Keith Cole would say. That doesn’t mean I won’t’ miss Keith’s partnership and all that he has taught me during his term, because I will. But it’s now time for me to take that knowledge and transition into working with the next president, Justin Stewart.

Effective leaders understand that successful change and transition requires more than just coping with change — and that the goal is not to “get by.” We accept that change is happening; we hone strategies for dealing with the unknown; and we shift our

behavior to accommodate new situations and challenges. And I know, Justin has a whole lot of change that he is excited to share with us all.

Change is defined as the situations and occurrences that impact organizations and individuals. Change creates the need to move from the way things used to be to the way they are now, such as a new committee, a move to a different style of technology, or a shift in policy. Adapting to change requires flexibility.

Transition is the internal psychological process of adapting to a new situation. Transition can happen quickly or slowly. It’s the process of moving successfully from the old to the new. Some presidents take their time and slowly transition from A to B. Others hit the ground running with no looking back.

Change and transition are inevitable in life and business and are vitally important to growth.

Without change, we remain stuck and unable to reach our goals.

60 AKFCF Quarterly Spring 2023

2024 is going to be a big year of change; I can feel it in the air, just like when spring arrives. It will also be the 50th Anniversary of the AKFCF. As an association, we have a lot to celebrate. We have a vibrant history that we look forward to sharing with new members and reminiscing with those who have been along for the memorable ride.

I look forward to honoring many of you by showcasing your essential roles while building a legacy over the half century.

As well as inspiring the new members to give back and invest in the AKFCF, an association that is here to be your voice. In writing this, I just learned of the passing of Darlene Pfeiffer. When I first started with AKFCF, she would always stop me and ask how things are going and then share with me her stories about being a woman in this business. I loved hearing those short stories each time we saw each other. So, listen to those stories when someone is willing to tell them.

And we will cast our vision for the future by launching new initiatives and outlining why the best is still yet to come.

Change and transition are inevitable in life and business and are vitally important to growth. Without change, we remain stuck and unable to reach our goals. That being said, change is sometimes unexpected, sometimes unwanted, and frequently uncomfortable. That’s why it’s so important that we understand how to handle change — and that’s exactly what I do each year, with each president, each Convention, each committee, each board meeting. It’s most certainly a process that I understand in this role as your Executive Director. And again, thank you for allowing me the opportunity to keep changing and transitioning alongside you. 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

CONVENTION TAKE-AWAYS

By Ron Gardner

B

y far, my favorite week of the year is the AKFCF Convention week. There is so much energy when the family gets together! And while lots of serious business gets done, deep learning and understanding is established, and I learn of issues I did not even know existed. I always walk away with a smile, having been renewed and refreshed by being with people I truly care for and

know care about me. Thank you all for the opportunity to continue to be of service to the KFC family.

While I am involved in many, many parts of the Convention that people do not see (all the vendor contracts, the speaker contracts, the insurance agreements, etc., come across my desk throughout the year), my most public involvement with Convention,

I always walk away with a smile, having been renewed and refreshed by being with people I truly care for and know care about me. Thank you all for the opportunity to continue to be of service to the KFC family.

Pictured L-R: Kelly Rodenberg, Darrell Hammond, and Ron Gardner.

62 AKFCF Quarterly Spring 2023

of course, is the Legal Update. I immensely enjoy the hour-and-a-half I get every year to share with you all of the things that have been happening in KFC system, and otherwise hopefully bring some significant value to you and your business as you continue to plan and look forward.

However, because I know not everyone gets to see the Legal Update, I do want to spend a few minutes in these pages touching on a few of the bigger points that I talked about from the stage.

At the top of my list right now is the development and finalization of what we are calling the Restaurant Technology Agreement. This is the second part to the Asset and Advertising Deferral Agreement that we entered into last fall — and the part that will bring new technology to your restaurants.

As it stands now, this agreement will bring new POS and KDS systems to your restaurants, system-wide use of Mobile Manager, and an EDGE computing system that will allow the technology platform to be modified and added at a much more rapid and efficient pace as we move into the future.

What is not expressly included (although will likely be an optional add-on for those of you who are interested) is required kiosks.

Of course, with new technology comes new costs. Frankly, what has slowed down our agreement was finding a way to do this as economically as possible. When we first started talking about this upgrade, the monthly per-restaurant cost, over and above what you currently pay for your Merit fees, was almost $500. We deemed that to be unacceptable and have been working hard at massaging the requirements and the necessary equipment to bring that cost down.

I immensely enjoy the hour-and-a-half I get every year to share with you all of the things that have been happening in KFC system, and otherwise hopefully bring some significant value to you and your business as you continue to plan and look forward.

As it stands, and we are not quite there yet — although this is probably pretty close to final — once these new pieces of equipment are added in your restaurant, your monthly Merit fee will gradually increase from $195 per month to something in the range of $370-$375 per month over the next two years. Fortunately, much of that increase is recaptured in increased efficiency, particularly with the new KDS and Mobile Manager systems. There is obviously more to come on this, but as we get the agreements finished, I will be sharing more information with you and likely hosting a Town Hall call at some point to discuss the exact terms of the Restaurant Technology Agreement.

Speaking of technology, there is a lurking danger out there about which I need to make sure that everyone is aware. I have written to you before about the risks of using biometric indicators (like fingerprints) in your restaurants. An increasing number of states are requiring employers to get consent from their employees prior to using these mechanisms — and the penalties for failing to comply with these notification and consent requirements are resulting in judgments against QSR employers in the millions of dollars. I certainly hope you are paying attention to the messages that we are sending about this issue. NOTE: If you use biometrics in your restaurants, please check with your local lawyer about the status of privacy laws in your state, and what you need to do to comply with those laws.

I reported at Convention that Mastercard/Visa settlement had yet to be approved, and that I would keep folks apprised. I am now able to tell you that since Convention, the settlement has

been approved, but the court has yet to announce how people go about making a claim. I have my eyes focused on this and will make a System announcement as soon as I am able.

Finally, I want to say a word about our out-going AKFCF President, Keith Cole.

Keith and I have been on the Executive Committee together for a decade (as he was previously our Finance Chair and Treasurer, a position that does not turn over frequently). Over that time, I have watched Keith grow into a phenomenal leader — I might even go so far as to say visionary. He is an operator’s operator who understands the concerns of the franchisees, and has done everything in his power to improve the position you are all in. It has been an incredible pleasure serving alongside Keith.

I am glad we have another year to go before his Immediate Past Presidency is over.

But more importantly, I want to let you know what a great guy Keith is. While we have had our ups and downs at times (we both were not great at communicating with each other at every step of the way), I think I have found a lifetime friend and someone who shares many of the same values I do — even though we see the world very differently at times. My heartfelt thanks to my friend, Keith Cole, for a job very well done and to a continued lifetime of friendship. n This column is for the general information of members of the AKFCF and should not be relied upon as legal advice. Please see your own attorney or professional advisor for questions concerning your franchise agreement. Ronald K. Gardner is General Counsel of both the AKFCF and the NCAC.

Ad index 11

Auspex Capital

41

Bama Companies

53

Café Valley Bakery

47

Capitol Light

52

Case Farms

C3

Dr. Pepper Snapple Group

25

Ecolab Kay Chemical Company

45

Genpak

5

Gycor International

49

Hour Work

27

KFC Foundation

29

Kitchen Brains

39

Koch Foods

33

Lennox Commercial

C2

Magnesol

21

NDA, Inc.

7

Pacific Premier Franchise Corporation

9

Partstown

3

PepsiCo

37

Pilgrim’s

12, 13, 55

Restaurant Supply Chain Solutions

35

Restaurant Technologies

17

Rubicon Technologies, LLC

48

Tyson Food, Inc.

1

Welbilt

C4

Winston Industries

Spring 2023 AKFCF Quarterly 63

Photo Courtesy of GlobalKFC.com

LOOKING BACK

64 AKFCF Quarterly Spring 2023

2022 Vendor of the Year

Patent Pending Magnetic Hinges Won’t wear out.

Southwest KFC Franchisee Association Flip Up Doors Stay in place for easy refilling and packing.

(Optional on full-size.)

Transparent Door

Pass Through

Check inventory at a glance

For easy access.

Designed for Plug & Play Fits perfectly in existing KFC stores

Thank You for

CVap HOV7-14SP Holding Cabinet.

Includes Auto Water Fill

CVap HOV7-05SP Holding Cabinet.

Includes Auto Water Fill

Visiting Us In

Austin Texas

Full pack line now available!

You have another choice!

F662 Shortening Filter

Donald Schaper dschaper@winstonind.com 502.541.6038 KFCFryers.com

Collectramatic PF56 Pressure Fryer