AKFCF Spring 2024

QUARTERLY

Association of Kentucky Fried Chicken Franchisees, Inc.

PLUS: GAC Report | AKFCF Awards | Legal Update

Spring 2024

CONTENTS

AKFCF QUARTERLY Spring 2024

18

38

22 FEATURES

DEPARTMENTS

GAC Report: Previewing The DC Fly-In 18

By JoAnna Mueller

4 From the Editor

Members of the AKFKF Government Affairs Committee will be traveling to Washington, D.C., in early June to meet with Members of Congress and to advocate for the issues that are most important to KFC franchisees.

Thank You For Reaching Impossible With Us At The 2024 22 Convention!

By Kelly Rodenberg This year, the AKFCF Convention itself was reaching for impossible. We had a new production company, Convention team, and KFCC LT members with new thought processes and mindsets to make this a best-in-class show.

AKFCF Awards: Working Toward A Common Vision 38

By Cory Sekine-Pettite Each 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.

6 Outgoing President’s Report 8 Incoming President’s Report 10 NCAC Report 14 In the News 46

RSCS Member Programs

48

KFC Foundation

50 Regional Shorts 52 Executive Director Update 54 Legal Update By Ron Gardner 56 Looking Back

On the Cover: AKFCF Convention Recap It was a fantastic week in Las Vegas for the 1,600 KFC family members who attended the Convention. It was filled with laughter, recognition, music, inspirational speakers, costumes, brand strategies, and a whole lot of fun!

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AKFCF Quarterly Spring 2024

BETTER TOGETHER

PEPSI, PEPSI-COLA, the Pepsi Globe, and the Pepsi Pulse Design are trademarks of PepsiCo, Inc. Kentucky Fried Chicken is a registered trademark of the KFC Corporation.

FROM THE EDITOR

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

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

AND JUST LIKE THAT…

By Michelle Hunt Whew, what a Convention! I was so happy to see many of you there. And just like that, we’re already working on the next one. That’s how the magazine works, too.

While waiting for this one to be designed and ready for proofing, I can tell you I’ve been working on the next one since last summer. The next issue is a big one. In case you missed it, 2024 is the 50th anniversary of the AKFCF. To reinforce what the Convention kicked off, the summer issue will be focused entirely on the history of the AKFCF and the history of our partners. The KFC Foundation certainly has something to celebrate with its 25th anniversary. But you’ll also hear from our partners at the RSCS and the NCAC. Before giving too much away, let’s recap the incredible family reunion we just had in Las Vegas.

There were new faces onstage for the Brand, and as you know; that won’t change in Nashville, either, but we appreciate the ability to hear directly from the leadership team during our Convention. However, what was consistent throughout was the Convention theme, “Reaching Impossible.” In this issue, we recap Justin Stewart’s incredible AKFCF Convention. His final President’s column is on page 6; you won’t want to miss it. The Convention recap begins on page 22. To further celebrate our AKFCF award recipients, an entire feature is dedicated to them on page 38. And while recapping Justin’s Convention, we welcome our new AKFCF president, Leslie Sharp.

Don’t miss her first President’s column on page 8.

In addition, we have the GAC article; the NCAC update from Vice Chair Jim McKenzie; an RSCS Member Programs update; the KFC Foundation talks about their new program “Become Your Best Self;” Regional Shorts from the Southeast and Southern California regions; Kelly’s executive director column; and a legal update from everyone’s favorite franchise attorney, Ron Gardner.

The 50th anniversary issue is already in process, and I look forward to sharing that with our franchise family as we look back on the history of this great brand.

Warmest Regards,

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AKFCF Quarterly Spring 2024

AKFCF EDITORIAL TEAM

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

Leslie Sharp Michelle Hunt Julie Mantlo Michelle Hunt Kevin Schlutz Kelly Rodenberg Justin Stewart

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

FRANCHISEE EDITORS:

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

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

Copyright ©2024 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 1071-9873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation.

AKFCF ADVERTISING AND EDITORIAL SUPPORT OFFICE

Send all advertising and editorial submissions for AKFCF Quarterly to:

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

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

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FROM THE PRESIDENT

REACHING IMPOSSIBLE CONTINUED

By Justin Stewart

I

t’s hard to believe that our 2024 Convention is behind us. Most of you know the time and effort that goes into making this a success. I can’t say ‘thank you’ enough to everyone who gave their all and “reached for impossible” with me for this year’s big event — Kelly Rodenberg, Jennifer Thomas, Michelle Hunt, the entire Clarity Production team, along with many more that I unfortunately don’t have the space to mention! We took several programming risks and tried new things, and we’re hoping you liked at least some of them.

We have many traditions at our house at Christmastime. I have three that are written in our Stewart Family Constitution that never can be amended!

1. The day after Thanksgiving, my entire family must watch “The Grinch,” the Jim Carey version, of course!

2. Sometime before Christmas, we all watch “Die Hard.” I don’t care what you say Bruce Willis, it’s a Christmas movie!

3. The last, but most important one, happens on Christmas Day. After opening presents and having breakfast as a family, which consists of feasting on my favorite brown sugar-drenched bacon and French toast, everyone must (I’m sorry, everyone gets the privilege of) watch my favorite holiday movie, “It’s a Wonderful Life,” starring Jimmy Stewart. No relation, at least none that I’ve been able to connect yet…

Anyway, I’m not going to retell the entire story. If you haven’t seen it, watch it tonight.

It will change your life! The premise is, Stewart’s character, George Bailey, gets in a tough financial spot and realizes his life insurance policy would take care of his debts and his family. He contemplates throwing his life away because he never got to do the big, world-changing things of his dreams.

6

AKFCF Quarterly Spring 2024

Then an angel shows him how different this world would be if he hadn’t ever been born.

He soon realizes how big of an impact he has had on everyone around him, and how they were able to achieve their dreams because of his actions. A reaching impossible story!

If you stop and take time to reflect on your life, I’m hoping you see times where you have helped others achieve things that they felt were impossible. If not, it’s time to get busy! The opportunities are all around you! From family, friends, and the people you work with, find ways to inspire and push them to achieve more. At the same time, find ways to push yourself to achieve more. Remember what author Ben Nemtim said, “You can help others as you are helping yourself.”

Some of you may remember John F. Kennedy in 1961 challenging the country to put a man on the moon by the end of that decade. What did we do? We put a man on the moon in 1969. The benefits of this groundbreaking accomplishment are so vast they are almost immeasurable, all because one man inspired others to reach for impossible! Kennedy didn’t do it; he just challenged the country to do it. By the way, Roger Sparks, I’m not going to debate this any longer with you; this wasn’t staged, we did put a man on the moon.

End of story.

Someone else reaching for impossible this year was me. On January 1, I set a goal to lose 45 pounds by Convention and guess what …I didn’t make it! It turns out that goal was impossible. I got a little too excited and forgot one of my wife Kristy’s rules to succeed in life: Don’t be stupid!

She was right! I set myself up to fail because my timeline to accomplish it was too short. I did lose 20 pounds though, and I now have

a new goal to lose the other 25 by the end of August. I’m still going to accomplish it; I just needed to not be stupid!

Are you challenging yourself and your people to reach for impossible? I wanted to share one other RGM who has inspired me because he is reaching for impossible.

Meiko Ponce took over a $1.9 million KT in Roswell, New Mexico, at 19 years old, and over the last four years has taken it to $2.9 million by doing outside ordering, adding TB breakfast, doing catering, doing late night, etc. Ponce has increased his sales by $250,000 a year for the past four years!

I guarantee you, he will pass $3 million this year because of his determination to succeed!

My last challenge to you is: Are you making people’s lives better?

One of my favorite things is when RGM’s share with me how a current or previous team member reached out and thanked them for being a positive role model in their life because of the environment of their restaurant and the support and encouragement that they received there.

I like to think that maybe Todd and I had a little bit to do with that — not a lot, but maybe some of the things we do as leaders inspire people to be better, to be a positive influence in their restaurants and communities, and to create opportunities for their kids and families. Inspiring our people leads to them inspiring theirs, and the positive impact becomes almost immeasurable.

It truly has been a pleasure serving as your AKFCF President and it will be one of the highlights of my KFC career! Thank you for your patience, and of course your encouragement! My wife hates it when I say this to business associates, but I love all of you, and I say that because I consider you all my family!

See you in the restaurants! n

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INCOMING PRESIDENT

SHARING STORIES BUILDS TRUST

By Leslie Sharp

I

want to say ‘Thank you’ for entrusting me with this opportunity to be your AKFCF President. I am excited and inspired to begin this new year in our Association!

Gathering for our annual Convention always reminds me of the magic and true strength of our Association. The vendors/ suppliers, corporate partners, franchisees, everyone reading this column and anyone who shows up each day to protect, foster and grow this great brand and unique franchisee system, you are the people who make the ­AKFCF a powerful organization which is worthy of serving and investing.

Sharing our stories builds trust, which then opens the door for growth, and I think that even after 50 years, we are still growing as an Association, with so much potential in reach. Let’s take the Reaching Impossible inspiration and work together to make this our best year yet!

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AKFCF Quarterly Spring 2024

The AKFCF Board and EC have big plans for this year. We will continue our meetings with KFCC, keeping the communication lines open. We just went through a strategic planning session and have a lot of work to do so that those goals become reality. We have a project called “Iron Mountain,” that I’ll be telling you more about later, and a personal goal of mine this year is to continue to support and strengthen the Regions.

The Regions are the origin story of the AKFCF. I hope to highlight and share as many of your stories as possible over the next year. Storytelling is a powerful way to share knowledge and connect us. It has always been important to my home state of Kentucky, but storytelling played a special role in my household growing up.

My father was a master storyteller; his sharp skills were a product of necessity, not an indulgence. Many of you probably know that he was originally a franchisee who began under the Colonel in 1966 in Vero Beach, Florida, and then went on to become a franchisee for KFCC from 1969 until his death in 2004. What isn’t common knowledge is that my dad had serious literacy challenges, which plagued him his entire life. He was born to a 16-year-old mother in rural Kentucky at the beginning of The Great Depression. His circumstances forced him to quit school around the third grade to work on a tobacco farm. Since my dad had little access to a formal education, his reading and writing skills were poor, but his ability to listen, retain, rationalize and communicate was exceptional. How he went from a poor child from High Bridge, Kentucky, to a man who could hold court with some of the best businessmen in the world is truly a remarkable story. And one that I hope to share more of over the next year.

But the reason I focus so heavily on my “dad’s story” is because he and his perseverance is my origin story. He gave me the world of KFC. Being a franchisee for over 20 years now myself has been more than just a career; it is part of my history and a way of life for me.

As we trade stories over the next year or so, I’m sure you will hear about how I never intended to go into the family business, but having done so, I’ve never regretted my decision. I hope to tell you more about the incredible people who worked for my dad and have continued to work with me all these years.

You will hear me tell stories not only about the Southeast Region, and how it’s been my foundation, but about the love and support I’ve felt from all the Regions as I’ve served on various committees, including the GAC and as the former vendor liaison of the AKFCF. Which reminds me, you’ll hear me talk about my love of the vendor community who supports us, and how I loved one so much that I married him! Well, I didn’t just marry him because he was a vendor and happened to love KFC. I married Paul because he chooses to always be by my side. And finally, if you’re around me more than 30 seconds, you’re probably going to hear a story about my girls, Grace and Hope, and how they are growing into young women of whom I am so proud.

The main reason I’m opening up is because I want to hear your story. Sharing our stories builds trust, which then opens the door for growth, and I think that even after 50 years, we are still growing as an Association, with so much potential in reach. Let’s take the Reaching Impossible inspiration and work together to make this our best year yet! We feel the anxiety and uncertainty within our business, but I have complete faith in the strength of our AKFCF family and I believe that better days are ahead. Looking forward to hearing from each of you! n

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NCAC REPORT

DOING WHAT IT TAKES TO ‘REACH IMPOSSIBLE’

By Jim McKenzie, NCAC Vice Chair

H

ello KFC family! It was great to be together at the AKFCF Convention in Las Vegas. As I said during my presentation, coming together for a week with our KFC Family is always a highlight of my year!

The theme of the Convention was “Reaching Impossible” and all presenters, including myself, referenced this important phrase. It’s a mindset and what we all must embrace to move forward, grow, and aggressively take on our competition. We must pull together, collaborate, and partner to make some fundamental change. We must keep pushing ourselves to make the right changes while staying true to what we’re known and loved for, giving our customers the opportunity to stop and think “that’s not the KFC I thought it was” — in a good way! Continuing to grow our core while finding ways to attract more and new customers to love KFC must remain a priority.

The challenges we face are significant and real. Almost every aspect of our business requires our collective attention as we tackle these challenges head on. Resiliency, mutual trust, and respect are imperative, and agility is essential so we can quickly react. Just like the Colonel was, I know we are up to the challenge. We will find a way to thrive and reach the impossible.

It is no secret that 2023 was a tough year for us with sales and transaction declines, increases in costs of goods sold, and the competition in the QSR landscape becoming increasingly

10 AKFCF Quarterly Spring 2024

Your NCAC Committee members welcome your continued questions, feedback, and support — we are listening and working hard on your behalf.

fierce, to say the least. The start of 2024, too, has been rough. We have seen colleagues and friends close their restaurants and the impact on our KFC family has been significant.

Now we must turn our disappointment into action that leads to meaningful change. We must not be reckless in our decision-making.

Our actions must be data-based, thoughtful, smart, and disciplined.

As we heard from KFCC and as I shared with all of you, work is actively being done

to address testing and innovation, meaningful and disruptive value, digital business growth, operations simplification, enhancing the customer experience, and ensuring our assets are properly maintained and inviting to our guests. Your NCAC Committee and Subcommittees remain focused on doing the important work in partnership with KFCC. Over the last several months, a small group of franchisees in partnership with Tarun and members of his leadership team, have met on critical transformation initiatives specifically focused on two, key areas: testing and innovation, and capital expenditures related to remodels and technology. Cashflow management is essential, and monies are tight. Prioritizing what is most important to move us forward is critical, and you have my commitment that this small group will remain laser-focused on the investments that “have to be done” or have a tangible ROI. I know as a KFC family we can remain open to new ideas, be flexible and adapt quickly, while also focusing on what it takes for our business to thrive.

As we continue to fill the marketing calendar to focus on profitable sales and transactions driving win-

dows, we have exciting promotions coming up with Saucy Nuggets and Taste of KFC Value Meals in early April — giving our customers more of what they want from KFC. We have testing plans in place for Toasted Twister, Chickadilla, Tenders, frozen beverages, and more. Building a robust 18- to 24-month product pipeline is essential, and innovation to improve our core products, introduce new products and drive brand buzz through LTOs will be an ongoing and iterative process.

One other Convention highlight worth noting is to recognize our Colonel’s Hard Way Award winners. This year, we had three deserving winners who embody the dedication, hard work, and passion for KFC that is well beyond their role. The awards were given to: • Tony Buford, Division Vice President of Operations with KBP Brands

As we continue to fill the marketing calendar to focus on profitable sales and transactions driving windows, we have exciting promotions coming up with Saucy Nuggets and Taste of KFC Value Meals in early April — giving our customers more of what they want from KFC.

• Sara Fisher, VP of Supply Chain with RSCS • Kirstin Schmidt, Senior Director of Supply Chain with RSCS These leaders represent what the Colonel said when he expressed “the easy way becomes harder and the hard way becomes

easier.” We appreciate them for all they do and their relentless commitment to KFC. Your NCAC Committee members welcome your continued questions, feedback, and support — we are listening and working hard on your behalf. Together we can create a bright future for our KFC business and family. n

Spring 2024 AKFCF Quarterly 11

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In the NEWS

YUM! BRANDS, UNIVERSITY OF LOUISVILLE LAUNCH ‘ACCELERATING GROWTH’ EXECUTIVE EDUCATION PROGRAMS

Y

um! Brands, Inc., and the University of Louisville recently announced the launch of new “Accelerating Growth” executive education programs at the Yum! Center for Global Franchise Excellence.

The new programs will focus on equipping operations leaders to take on senior management roles in franchise organizations, an area identified as a key opportunity by franchisees and leadership at the Yum! Center for Global Franchise Excellence, which has been providing education for aspiring entrepreneurs through the UofL College of Business since 2021.

As part of its $100-million global Unlocking Opportunity Initiative, Yum! is providing more than $800,000 in funding to launch the “Accelerating Growth” programs, which is in addition to the $3.5-million commitment the company made to launch the Yum! Center for Global Franchise Excellence in 2021. The goal of the initiative is to create opportunities for education and entrepreneurship for employees, frontline restaurant teams, and communities around the world.

The two new “Accelerating Growth” education tracks will launch this summer and fall 2024 semesters and will focus on training attendees to upskill their franchising education.

“Yum! Brands is passionate about the franchise business model, and capable franchise leaders are the lifeblood of every successful franchise system. As the franchisor of choice for the industry, we are thrilled to

partner with the University of Louisville and address a need of the industry — training a new generation of leaders to take on senior management roles in franchise businesses,” said Wanda Williams, head, global franchising, Yum! Brands. “Since its launch in 2021 as part of our Unlocking Opportunity Initiative, the Yum! Center for Global Franchise Excellence has helped prepare hundreds of students for successful careers and business ownership opportunities by building knowledge about the franchising industry,” Two new education tracks will be offered as part of the “Accelerating Growth” program, which will develop the skills necessary to run and grow a large franchise business: a six-month Level 1 program designed to train General Managers and Area Coaches for a VP role, and an advanced one-year program customized to prepare VP’s for a role as president of a franchise organization. Both programs include online and experiential education, and the advanced program also includes a final simulation and development of a business plan.

“The ‘Accelerating Growth’ program is an exceptional addition to the multilevel franchise education offered by our center at the University of Louisville and is yet another way we can create opportunities for professionals across the franchising industry. We are incredibly grateful for Yum!’s continued support for the center and this opportunity to expand the center’s programs,” said Kathleen Gosser, director of the Yum! Center for Global Franchise

Excellence and assistant professor in the UofL College of Business.

Since the launch of the Yum! Center for Global Franchise Excellence at the University of Louisville, total enrollment has exceeded 900 students — 423 undergrad, 50 graduate-level, and 500 executive education enrollees.

In addition, The Center launched the annual Yum! Franchise Accelerator Fellowship in 2022, a collaborative effort between the University of Louisville, Howard University, and Yum! Brands, which offers a unique opportunity for four MBA students from the two universities. Participants in the annual program are granted $10,000 scholarships and receive personalized training and mentorship from industry experts during an immersive educational journey centered around the franchise business model. Each accelerator program culminates in a pitch competition featuring a $10,000 cash prize, while establishing winners as top candidates for promising franchising careers. The Yum! Franchise Accelerator Fellowship is open to all eligible students regardless of race, color, national origin, sex, disability, or age.

Source: Yum!

Condolences: John D. Orr, 83, passed away this past January in Florence, South Carolina. Orr was a franchisee in South Carolina. His concern for the welfare of his team lead to him starting an employee retirement plan in the early 1980s. When Orr retired, he sold the company to its employees through an ESOP plan. He is survived by his wife Ann, whom he married in 2018. Orr was predeceased by his first wife, Mills Bonnett Orr. In addition, he is survived by his daughter Annie (Orr) Bloom; his brother and sister-in-law, Larry and Sue Orr; his sister, Paula Wright; and a large, extended family.

14 AKFCF Quarterly Spring 2024

KFC THAILAND MARKS 40TH ANNIVERSARY WITH ITS FIRST NEW BAMBAM BOX APP EXPERIENCE

I

n celebration of their 40th Anniversary, KFC Thailand announces an exclusive partnership with Thai-Korean pop sensation BamBam Kunpimook.

Since 2010, BamBam has been dancing his way into KFC’s heart with his first advertising debut with KFC. And now in 2024, he’s back, but this year he’ll be officially ‘bam-baming’ into his own KFC meal box, as KFC’s first “Friend of KFC Thailand.”

The KFC BamBam Friendship highlights a milestone in KFC Thailand’s history, and is further celebrated by the launch of the new KFC mobile app. As KFC Thailand commemorates four decades of culinary success, BamBam steps into a significant role, bringing his unique flair and charisma to the table, helping to curate a special menu offering dubbed the BamBam Box, while showcasing KFC’s first

mobile app. Designed to delight fans with both taste, ease and exclusive memorabilia, this year’s birthday celebrations are set to be far more than just a bucket-list vibe.

“Joining forces with BamBam for our big 4.0 is our way of showing immense appreciation to our fans. This collaboration is magnanimous, and since it’s all happening exclusively through our new user-friendly KFC

APP, we’re bringing the party straight to your fingertips. Fans can expect a greater sense of joy, convenience, and more value than ever before,” said Suhayl Limbada, chief marketing officer at KFC Thailand.

The BamBam Box, co-designed by BamBam himself, features a yummy assortment of 4 pieces of Wingz Zabb, 1 piece of Fried Chicken, 2 Nuggets, Regular Fries, and a refreshing Pepsi. Priced attractively at 159 THB (about $4.30), this box can be celebrated by all BamBam and KFC fans alike, boasting unique packaging with sleek black hues and, of course, BamBam’s signature logo. Customers can look forward to receiving one of four limited edition BamBam photo cards with each order via the KFC APP — while supplies last.

Source: lbbonline

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Spring 2024 AKFCF Quarterly 15

In the NEWS

KFC TEAMS UP WITH LIFE IS GOOD FOR NEW MERCH LINE

A

pparel and accessories brand Life Is Good Company was founded in 1994 with a mission of sharing a positive message.

KFC adopted its signature “Finger Lickin’ Good” slogan in 1956 to promote its fried chicken.

Now the two companies are providing a sort of mashup of their two slogans, with a new limited-edition capsule collection available on KFCShop.com and lifeisgood. com. The line features t-shirts and hats with the two slogans, as well as a design featuring both, “Life is Finger Lickin’

Good.” There is also a design with Jake, Life is Good’s mascot, and the KFC’s red-andwhite-striped bucket.

“KFC is all about sharing the joy of our Original Recipe with loved ones,” Anna Faktorovich, KFC’s VP of brand management, said in a statement. “Food is such an integral part of connecting with others and making memories, which is why we teamed up with Life is Good, a brand that’s all about enjoying life, for an exclusive ‘Life is Finger Lickin’ Good’ line.”

“Our community loves nothing more than

to share a good meal with friends, and KFC is a great way to gather friends and family for a picnic outside,” Life is Good President, Tom Hassell, said in a statement. “Through this partnership, Life is Good will blend our positive art and message with the KFC brand.”

KFC launched its KFCShop.com site last July, featuring apparel and accessories. It has also included a limited-time collaboration with Kentucky-based sunglass brand Shady Rays, seasonal collections, and more.

Source: NRN

CARLYLE NEARS DEAL TO BUY KFC JAPAN’S SHARES FROM MITSUBISHI CORP

U

.S. fund manager Carlyle Group is close to acquiring KFC Holdings Japan, the operator of the Kentucky Fried Chicken chain in the country.

Japanese trading house Mitsubishi Corp., which owns approximately 35 percent of KFC Japan, is currently in the final stage of a tender process to select a buyer for the stake. Carlyle is likely to take KFC Japan private after acquiring the shares from Mitsubishi.

KFC Japan is listed on the Standard section of the Tokyo Stock Exchange, and the current market capitalization is approximately 100 billion yen ($639 million). Mitsubishi is expected to finalize the bid winner by the end of May. After buying Mitsubishi’s shareholding, Carlyle is believed to be planning to acquire all the remaining shares through a takeover bid.

After bringing KFC Japan under its umbrella, Carlyle intends to expand KFC Japan’s business by increasing the number of outlets in the country.

KFC Japan was established in 1970 as a joint venture between then U.S.-based KFC Corporation and Mitsubishi. The latter became the

parent company of KFC Japan in 2007. However, the trading house sold part of its shares in KFC Japan in 2015, reducing its ownership to 35 percent. Mitsubishi has been reviewing its assets and businesses to improve capital efficiency, which led to the decision to sell all its shares in KFC Japan.

KFC Japan expects to have increased its net sales by 10 percent from the previous financial year to 110 billion yen and net profit by 53 percent to 3.8 billion yen in its consolidated results for the year that ended in March.

Due to the contract with Yum!, KFC Japan’s business is limited to Japan. The number of outlets at the end of December 2023 was about 1,230, only about 40 percent of the number of fast-food rival McDonald’s in the country, and has increased by only about 5 percent in the last 10 years.

Source: Nikkei Asia

Condolences: Terry Vernon Rogers, age 73, of Bowling Green, Kentucky, passed away on April 13, 2024. He worked in the KFC and Taco Bell business from 1977 until he passed, growing the business up to 18 restaurants in Kentucky and Tennessee. He served on many boards and committees for the AKFCF over his career, including as national president in 2010-11. Rogers considered the AKFCF to be his second family and truly loved the business and people with whom he worked. He also loved his fellow Southeastern KFC Association franchise family. He is survived by his wife of 51 years, Janet Rogers; son Chris (Terri) Rogers, daughter Julie (David) Mantlo; grandchildren Matthew Rogers, Leah Rogers, Tyler Mantlo, Abby Mantlo, Lily Mantlo, and Noah Mantlo; mother Louise Huddleston; and brother Jerry (Diana) Rogers. He was preceded in death by his father, Vernon Rogers, and sister, Susan Turner Henry.

16 AKFCF Quarterly Spring 2024

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

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

QSR

Quick Serve Restaurant

REC Restaurant Economics Committee

KFCC Kentucky Fried Chicken Corporation

RGM

Restaurant General Manager

RMI

Restaurant Margin Improvement

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

AUM

Assistant Unit Manager

BOGO

Buy One Get One

BOH

Back-of-house

BSC

Balanced Scorecard

COB

Chicken on the Bone

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

COGS

Cost of Goods Sold

NMS ational Marketing Subcommittee

SBRA Supplier Business Relationship Agreement

DMA

Designated Marketing Area

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

TOL

Territory Operations Leader

TRP

Targeted Rating Point

OEC Operations Excellence Committee

VOC Voice of the Customer (formerly CBCC)

PAC

Political Action Committee

YUM

Yum! Brands

POP

Point of Purchase

YRI

Yum! Restaurants International

POS

Point of Sale

FA (Or F/A) Franchise Agreement FIT

Food Innovation Team

FSC

Food Safety Consultation

GAC

Government Affairs Committee

RSCS Restaurant Supply Chain Solutions (formerly UFPC)

BUILD LABOR EFFICIENCY.

AUTOMATE OIL MANAGEMENT. Remove one of the dirtiest and most dangerous jobs in the kitchen— managing hot cooking oil. Total Oil Management optimizes oil management by automating the addition of fresh oil and removal of used oil.

TA K E C O NTRO L AT WWW.RTI-INC.COM/KFC Spring 2024 AKFCF Quarterly 17

GAC Report

Previewing The DC Fly-In

By JoAnna Mueller

M

embers of the AKFKF Government Affairs Committee will be traveling to Washington, D.C., in early June to meet with Members of Congress and to advocate for the issues that are

most important to KFC franchisees. Our spring fly-in will be June 4 and 5.

18 AKFCF Quarterly Spring 2024

Spring 2024 AKFCF Quarterly 19

Our goal is for each attendee to meet with their home congressman or senator. …Members of Congress want to hear from constituents speaking on their experiences and offering their expertise.

Polaris Consulting is extremely excited to host the group. We have a packed agenda planned.

We’ll start off with a treat! Those arriving early enough on Monday will be attending a Washington Nationals baseball game. The next day, we will hear from D.C. insiders as we prepare for our Capitol Hill meetings. Members of the Yum! Government Relations team will give an update on their advocacy efforts. We will host leadership of the National Restaurant Association. The International Franchise Association will stop by. Folks from the Stablecoin industry will present potential future opportunities for accepting new means of payment and cutting costs. We also will have Brody Mullins, an author, and Wall Street Journal reporter, as a guest.

He recently wrote the book about just how lobbying works in Washington. He’ll be the perfect introduction to our day of meetings. During mealtimes, Members of Congress will stop by to hear from the GAC and to snack on some KFC! In the evening, we will be the guests of honor at a special reception hosted by Yum! The next day will be very busy! We will host some Members of Congress for breakfast. Then, we will split into groups and head to Capitol Hill. We expect to meet with about 30 congressional offices. Our goal is for each attendee to meet with their home congressman or senator.

This is an incredibly high number of meetings for a group of our size to manage in one day, but the more folks that hear our message, the better! We’ll speak to Members of Congress and their staff about three to five issues. Members of Congress want to hear from constituents speaking on their experiences and offering their expertise. In previous years, time and time again, we have seen Members of Congress light up when they speak to franchisees. We’ll end that day with a reception of our own where, you guessed it … we will meet with even more Members of Congress!

This time of year, donations to the PAC are the most impactful. We use them to make sure our fly-in is a success. In an election year, the importance is doubled. We want to support the Members of Congress who have been helpful to us and who understand the needs of franchisees. Anything and everything you can do to aid our effort is very appreciated.

Following our fly-in, we are planning a GAC webinar that will be open to all AKFCF franchisees. We expect the webinar to be in mid-June. We will review how our fly-in went. Dan Gans will give a policy update. He will speak about what to expect in terms of action on the Hill for the next few months. We’ll do an election update after that. This is shaping up to be one of the craziest elections of our lifetime and Dan will help us decode it all! Finally, we’ll open it up to any and all questions. We want to make sure that there is an open line of communication between the GAC and the larger ­AKFCF membership. Please feel free to reach out at any point with questions. n

20 AKFCF Quarterly Spring 2024

Stay Involved, Donate to the AKFCF PAC

Contributing to the AKFCF Political Action Committee (PAC) is the best way to support the election and re-election committees of pro-business Members of Congress who share the same concerns as franchisees. The money raised in the PAC goes directly to the campaign of those running for Congress, or incumbent members seeking reelection. You may make your 2024 AKFCF PAC donation online by visiting our portal on the AKFCF website in the Government Affairs tab.

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

Spring 2024 AKFCF Quarterly 21

Thank You For Reaching Impossible With Us At The 2024 CONVENTION!

By Kelly Rodenberg

22 AKFCF Quarterly Spring 2024

Spring 2024 AKFCF Quarterly 23

I

t was a fantastic week in Las Vegas for the 1,600 KFC family members who attended the Convention. It was filled with laughter, recognition, music, inspirational speakers, costumes, brand strategies, and a whole lot of fun!

This year, we challenged the franchisees, vendors, KFCC leadership and everyone that is part of the KFC family to reach impossible — to change their mindset about reaching $10 million in sales, to provide the best customer experience for all guests, to build a team that performs second to none, and to be the number-one operating chicken restaurant in the world.

This year, the AKFCF Convention itself was reaching for impossible.

We had a new production company, Convention team, and KFCC LT members with new thought processes and mindsets to make this a best-in-class show. We elevated the experience and energy every day in every ballroom and in every event. The Trade Show took on an open-concept design. Each event was paired with a theme. Music was added to the receptions inside the trade show and in the registration area. Keynote speakers inspired and motivated us each day. We added sponsored lunch-and-learn events and decided that our awards recipients deserved a night of their own. It was non-stop; it was Vegas; it was amazing! Let’s recap the highlights!

If we can accept the fact that change is an inevitable and brilliant part of life, then we can partake in the thrill of progression, and help shape a brand in which the impossible becomes possible.

The world we live and work in is dynamic, flexible, and loaded with untapped potential. If we can accept the fact that change is an inevitable and brilliant part of life, then we can partake in the thrill of progression, and help shape a brand in which the impossible becomes possible.

3rd Annual Colonel Classic Golf Scramble at Bear’s Best Ben Johnson, Matt Hansen, George Birge, and Todd Stewart were crowned the 2024 Colonel Classic winners.

Congratulations to you, and to the following Accuserv hole challenge winners!

• Men’s Closest to the Pin: Ben Johnson • Women’s Closest to the Pin: Ann Theil • Men’s Longest Drive: Aiden Gentile • Women’s Longest Drive: Devyn Gardner Relive the day with photos from the professional photographer — and get some good laughs looking through the MullenLowe 360 camera photos and videos!

Left to right: Ben Johnson, Matt Hansen, George Birge, and Todd Stewart.

Left to right: Ben Johnson, Aiden Gentile, Devyn Gardner, and Ann Theil.

24 AKFCF Quarterly Spring 2024

Thank you to our Workshop Speakers!

• Unlock Employee Potential in the Restaurant with Karen Adams, Brenda Flood and Justin Patton.

• Stop the Shift Show with Scott Greenberg • Reaching Impossibly Great OPS with Bill Ford, Shawn Brady, and Justin Patton

Justin Patton, Brenda Flood and Karen Adams

Scott Greenberg

Bill Ford

Shawn Brady

Spring 2024 AKFCF Quarterly 25

Opening Night We went retro on opening night in the trade show. The welcome reception was a totally legit 80’s-themed glow party. This tubular event featured DJ Will in the custom-made DeLorean DJ booth who played all the favorite hits from that decade. Vendors and franchisees came in their parachute pants, neon, velour track suits, and many other rad looking outfits. It was a fantastic way to start the week!

26 AKFCF Quarterly Spring 2024

Reaching Impossible moments with AKFCF President Justin Stewart’s opening keynote

We bid a fond farewell and a sincere Thank You to Justin as AKFCF President and host of the 2024 Annual Convention. Here are a few, key moments from his opening keynote: “As you may know, Las Vegas has had its ups and downs,” Stewart said. “It started with Mormon settlers building a fort in the late 1800’s, then after gambling was legalized, a mobster named Bugsy Siegal built the first gambling destination here in the desert to persuade people to come here and gamble legally — instead of illegally in the underground world of big U.S. cities — Reaching Impossible moment #1 for Las Vegas.”

Las Vegas had its heyday in the 50’s,60’s and early 70’s with the Rat Pack and Elvis, but it wasn’t until the late 80’s when a guy named Steve Wynn reinvented Las Vegas and influenced investors to remake Vegas into what it is today, he continued. There’s a good chance that we wouldn’t be having our Convention here today if it wasn’t for Steve Wynn. Reaching Impossible moment #2 for Las Vegas.

During this same time, the Colonel developed his 11 herbs and spices and traveled around the country enlisting restaurants to sell his fried chicken recipe. This eventually was named “Kentucky Fried Chicken” by none-other than Pete Harman’s window painter, believe it or not. If the Colonel had never met Pete Harman, none of us would be here today. That was Reaching Impossible moment #1 for KFC. We are where we are right now because someone before us reached for impossible, Stewart exclaimed. “I am standing before you here today because my grandfather came to Las Vegas, and because my father didn’t give up on his dream of owning his own KFC,” he said. “If you spend any time talking with people who have had success in their lives, most will tell you it was because someone reached for the impossible before them.”

It’s hard to believe but exactly four years ago this week, the world was dealing with COVID, he continued. As you all remember KFC wasn’t closed but we were down 30 percent and we were all terri-

fied this was going to be the end of the world. It was during this same time, your KFC Foundation board set a goal to go from raising $2 million to $10 million a year by the end of 2024. Impossible right? “Thanks to everyone in this room that continues to support us with donations and having your teams round up, we are currently projecting to hit $9.4 million this year,” Stewart announced.

He then went on to ask the audience: “Are you challenging yourself and your people to reach for impossible? Here’s a challenge for everyone in this room. After this Convention, have a meeting with your people and set a goal with them that feels impossible. Maybe it’s increasing sales in your restaurant by 200k by the end of this year, maybe it’s selling 1,000 fryers, or putting a Prep Wizard label machine in every KFC. Maybe it’s selling 100-percent more ounces of soda or getting a frozen drink program going.

“Maybe it’s having zero mis-picks and 100-percent on time deliveries across every single distribution center in the country,” Stewart continued. “I’m pushing for all of these!”

How can we Reach for Impossible in our restaurants, he asked?

The answer is the right leadership and giving them the right incentives to encourage exceptionalism! Come up with an incentive that will make them go for it and give them the tools to do it, he said.

Stewart said many of us have heard of the sales incentives offered to our RGM’s. In a nutshell, at Stewart Restaurant Group if an RGM hits $2.1 million in sales, it started out at $2 million, but with all the inflation we had to adjust it last year, but if they hit $2.1 million, they get a $20,000 bonus. This is outside of all the other bonuses we do, and for every $300,000 more than that, they get an additional $10,000. “Sounds pretty good right,” Stewart asked. “Well, when we instituted this program in 2013, we had zero locations making $2 million a year in sales. In 2014, we had our first RGM hit $2 million, the 4-minute mile for our company was achieved, and now everyone saw it could be done!”

It’s time for all of us at KFC to reach for impossible, he continued. Former UK Prime Minister Tony Blair once said, “The best thing in life is waking up with a sense of purpose!” Ask yourself,

Spring 2024 AKFCF Quarterly 27

what is my sense of purpose, Stewart proposed. “Mine is I want my people to be the most compensated and most recognized in this industry. Don’t ever underestimate the power you have on others!

You have the power to change lives!”

So, are you making people’s lives better? One of Stewart’s favorite things, he said, is when his RGM’s share how a current or previous team member reached out and thanked them for being a positive role model in their life because of the environment of their restaurant and the support that they received there.

“I like to think that maybe Todd and I had a little bit to do with that, not a lot, but maybe just maybe, some of the things we do as leaders inspire people to be a positive influence in their restaurants and communities and create opportunities for their kids and families,” he said.

In the end, all that matters are the people, Stewart concluded.

The people that raised us — back to his family’s rancher days, he said — those people taught us the value of hard work. They took

a leap of faith for themselves and those around them. “Now it’s on us to give our people opportunities to reach for impossible and change their lives. If you do, I promise you, they will exceed your expectations,” he said.

Don’t just live the life you went to bed with, Stewart continued.

Choose it every day! “I’m choosing to Reach for Impossible! Just like my grandfathers did when choosing to settle in Las Vegas when it was just a fort in a desert; like my father did when he talked an old franchisee into carrying the loan for him to buy his first KFC; like the Colonel and Pete Harman did; like Steve Wynn did to modernize this city were in.

“Let’s Reach for Impossible like all those franchisees that came before us did, and all our people who are doing it now,” he added.

“We owe it to them, our families, and to everyone in the world that hasn’t tasted our incredible food and experienced the culture of our KFC family! Who is with me?”

Well, I think we are all with Justin. Let’s keep reaching!

General Sessions Ben Nemtin

Our general sessions are always entertaining, stimulating, and inspiring. This year did not disappoint. Kicking off the opening session was Ben Nemtin. At the lowest point in his life, bestselling author, keynote speaker, and influencer Nemtin made the decision to only surround himself “with people that would inspire me.” That one small decision completely changed his life.

After creating The Buried Life for MTV — with the realization that so many of the things that Ben and his friends truly wanted to do in their lives were essentially buried by work, by school, and by life, he was able to create the most epic bucket list of all time. And that mission took on a life of its own, gaining raving fans along the way. Items checked off that list included writing a New York Times bestseller, having a conversation with Oprah, playing basketball with President Obama at The White House, and having a beer with Prince Harry. The most powerful piece of this bucket list project however was Ben’s desire to give back to those who couldn’t fulfill their own bucket lists. THIS is the world you want to create.

As Ben shares: “When you take this next journey, whatever you do, just know that there will be ups and there will be downs.

28 AKFCF Quarterly Spring 2024

There will be times when you will struggle.

We are told to be strong, get through it on our own, and not be someone’s problem. But the truth is — from someone who has been there — this is backwards.

We are all human beings. And when you hit that struggle, know this: you are not alone. More importantly, asking for help in that time of need comes with no shame.

Because whoever you go to for help will one day return the favor and come to you in their time of need. This is the world we want to create. A world of connectedness and compassion.”

Nemtin shares that as you ponder your next moves in life, know that the goal you have — even if it seems impossible — is possible. But you need to take the reins and do it. And you need to stop and think about what is important to you. It’s easy to put those dreams on hold and get buried by the everyday grind. Shoot for the moon with big dreams and be persistent. Success depends on consistency of effort.

Scott Greenberg

Here are the three key takeaways from The Wealthy Franchisee that resonated and will level up your life whether you’re an aspiring franchisee or not: Mind your mindset. Throughout the presentation, Greenberg returned repeatedly to this theme — your mindset matters and may be the single greatest determining factor in any franchisee’s success. Specifically, he identified five areas of distinction that separate a wealthy franchisee from everybody else; he called it The Quintuple-Double C. • Clarity & Calm • Controlling Your Critic • Cool Confidence • Combating Complacency • Constructive Comparison

Maintaining a focus on self-awareness and self-improvement with the intention of supporting a more positive mindset can make anybody better at what they aspire to be on a daily basis.

Relationships matter. In the case of the wealthy franchisee, it all starts with the relationship you have with your franchisor and the relationships you have with your team, vendors, fellow franchisees, and the franchise community at large. Giving time and attention to nurturing healthy relationships will enable you to operate more effectively and efficiently than those who are constantly battling through frustrations with a franchisor or store managers they don’t trust. Who among us couldn’t benefit from building great relationships in both our personal and professional lives? It doesn’t matter what you do related to the franchise industry, it’s all about relationships. With your team, with clients, with brands, with your competitors, with other vendors — so much of what happens in franchising and what catapults people to

success is a robust network of healthy relationships. Give those relationships the time, attention, and patience they deserve.

The buck stops with you. Wealthy franchisees maintain a high degree of personal responsibility for the success of their business. Of course, they rely on the foundational systems and processes that are the

core of the brand they operate, but they take personal responsibility for building a culture that aligns with the brand’s values, providing exceptional customer service, and top-notch operations to build and grow their customer base, execute local marketing strategies even when times are tough, and on and on. One of the greatest misconceptions in franchising is that all a franchisee must do is sign the agreement and show up to unlock the door and turn on the lights to have a smashingly successful business. Not so. The franchise model will give you the foundation, but it’s up to the franchisee to build the business.

We all need this reminder from time to time — we are all ultimately responsible for our own destiny. It’s easy to point fingers at our bosses, our teams, the economy, or other outside forces when trying to understand why we aren’t as successful as we’d like to be. Often, the simplest answer is the correct answer — taking personal responsibility for your own success frees you from the limiting factors that surround you and puts the power to succeed squarely in your hands.

Spring 2024 AKFCF Quarterly 29

Vegas Goes Country Night The excitement continued in the trade show with another themed party. Vendors and attendees did bring the style to the floor with their country western looks. New artists out of Nashville provided attendees with a live jam session on the Pepsi stage. And yes, there were many brave cowboys/cowgirls who took a ride on the mechanical bull!

30 AKFCF Quarterly Spring 2024

KFCC Presentations

On the second day of general sessions, KFC President Tarun Lal and the leadership team covered three key areas: their read on the business, their confidence in the opportunity, and their action plan to address the opportunity and transform the KFC business.

Over the last 18 months of visiting restaurants, they came back with one universal insight from each of these visits. Our field teams are the best in the world! They are committed to making a difference and we continue to inspire them with our passion and commitment for the KFC brand.

Now … our sales results have been sobering. We did see a strong lift with the launch of wraps and nuggets in the first half of the last fiscal year, but the second half was truly disappointing. And this was not due to lack of effort or commitment. Our nuggets, which are undoubtedly the best in the market, did not deliver on expectations. Our delicious, freshly prepared spicy wings did not drive sales volume, and then the second hit of wraps produced average volumes. However, they do believe that they now have a better understanding of some of the key reasons for our sobering sales results.

The first and most important insight is that our core is in decline. A couple of reasons for this. The COB category is declining in the U.S. Our younger consumers want boneless products, and we think that, as we worked on this insight, we went too far promoting boneless and ignored our core COB customers. Secondly, given the extraordinary inflationary environment, especially in the COB category, we took excessive pricing and turned away our loyal core customers.

Our frequency numbers highlight this.

And thirdly, as we all know the U.S. is an extremely competitive market and concepts like Cane’s, Chick-fil-A and Wingstop continue to take shares away from us.

Over the course of the day, Tarun and the KFCC leadership shared their action plans around these learnings. As we think about our business results, it’s important to highlight that we entered 2023 with a clear transformation strategy under a project named K2. We all felt good about our plans and put tremendous energy behind executing the strategy. And while the sales results were not up to our expectations, we did deliver several green shoots.

• We closed the year at +2% SSSG vs the -1 in 2022.

• We launched a new customer feedback program in partnership with Qualtrics.

Our boneless mix grew to 26% of the business.

• We installed over 1,000 kiosks and launched a rewards program, which in a month has more than 1 million members signed up.

Tarun Lal, President KFC U.S.

Spring 2024 AKFCF Quarterly 31

• We also introduced the bridge incentive…a transformative Net New Units program aimed at reigniting a NNU pipeline ... AND worked on capital reduction initiatives, together with all of you and with the RSCS. What we did in 2023 was really invest in the foundation for a strong business. There is no looking back and we have confidence that we will reach our goal. Now what gives

32 AKFCF Quarterly Spring 2024

us this confidence? A few things: The U.S. QSR category is massive, and it continues to grow. We just need to make sure we grab our share and some bits of share from our key competitors. The second fact that gives us confidence is that within the QSR category, the chicken QSR category is growing much faster — both in sales and number of new units. Once again, we need to make sure that we capture our share of this growth, at the very least. The third fact that gives us

confidence is that KFC continues to dominate the chicken QSR category globally. We now have over 30,000 restaurants — and there is a new unit opening somewhere in the world every three hours. Did you know that, over the past five years, we have added over 8,000 restaurants globally…adding $8 billion to our overall revenues.

The fourth fact: What gives us confidence is that we have a clear, aligned ambition which this entire system is working towards — $10 billion is sales with each restaurant delivering $2 million AUVs. Finally, the fifth fact is that KFC U.S. today has the best leadership ever. This year, five new members joined the leadership team: • Thuhuka, the new COO who comes from South Africa and was part of the Africa business; • Jonathan, the new CFO who comes from Kenya and who was previously at Coke; • Christophe, who comes from France and was the last CMO for PH global;

• Pradeep who comes from India and was the last CDIO for our India business; • and finally, Paul Tuscano who comes from Canada and was last at Marriott hotels.

This is an exceptional team, from diverse backgrounds and independent thoughts ... and they all are here to serve the brand and this community. Tarun claimed this team has a different culture and mindset. This is a team that is committed to winning, a small, but important change from a heart-led, high-performing team. As we lead with this confidence that we will transform this business, we must be deeply conscious of disruptive forces out there.

The good news is that we are one of those companies that know how important it is to reinvent ourselves. We will not meet the fate of the brands that are today found only in history books. What is fascinating is that we don’t have to look very far for inspiration. The Colonel was a master on reinvention, having had several careers before becoming one of the most successful restaurant entrepreneurs the world has

seen. And we all know, he was ahead of his times in so many ways.

To summarize, we have a strong strategy. We had a tough year but feel that we are building a solid foundation for growth. We recognize the importance of reinvention. So, what does this mean for us going forward? For purpose of clarity and simplicity, let’s focus on rationalizing our K2 strategic framework and distilling this into four, core areas of focus: 1. Building brand love 2. Driving brand relevance 3. Providing greater brand access and finally underlying all these is...

4. Heightened focus on franchise profitability.

For each of these strategic focus areas, the team dived deeper into specific initiatives. No plans are complete without having clear metrics. Tarun prioritized the top five that will demonstrate success for us: TMTO, SOS, Taste, weekly transactions, and store-level EBITDA’s. In the spirit of Justin’s challenge to go for breakthrough — or what

he refers to as Reaching Impossible — Tarun put bolder numbers as a super stretch target.

He recognized franchise partners who are already delivering these numbers, such as Larry Starkey, Tom Broome, the Stewart group, and the Fulenwider group, all of them are hitting some — or most — of these stretch numbers. You know them, reach out to them for learning and inspiration. These are numbers that you should challenge your teams with.

Finally, he left us with asks: 1. Let’s show our guests that “we care” and that we will go out of our way to deliver an outstanding experience. And there will be times when we make a mistake, we will go the extra mile to win you back.

2. Let’s focus on excellence. This is not a random act; excellence is a mindset. It should become a habit. And this challenge is as much for you as it is for me and the KFCC teams.

3. And finally, let’s continue to build on the partnership. Let’s trust each other even more, this will help us collaborate and move with agility.

Recipient of the

2023 KFC Star Award

“Preferred Vendor”

KFC Red Décor Package

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

PEOPLE FIRST SAFETY AND MUTUAL RESPECT ARE PARAMOUNT TO US.

INTEGRITY

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

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

TEAMWORK

COLLABORATION FOSTERS OUR HIGHEST LEVELS OF TEAMWORK.

918-682-4400 • CUSTOMSEATING.COM Spring 2024 AKFCF Quarterly 33

AKFCF Done OSCAR Style The AKFCF Awards Dinner and Ceremony took on the look, feel and sound of Bellagio’s vintage Mayfair Supper Club and some of KFC’s biggest names walked the red carpet. We saw AKFCF Past Presidents, KFCC leaders, and supporting vendors dressed in the season’s most fashionable evening wear, as well as other past award winners including Jim Olson, Joan Bowling, and Larry Starkey. Ben Johnson took on hosting duties for the first time and provided a well-rounded mix of love, laughter, and Kansas City Chiefs blows. The night included musical performances from the LV Jazz Band and finished with a performance from country music artist Tyler Hubbard. AKFCF’s Keith Cole and KFCC’s Kate Ward were on the red carpet to cover every single moment live before guests went into the dinner.

2024 Winners • The AKFCF Presidents award was presented to Bryan Robinson by two of his so-called “best friends”, Justin Stewart, and Keith Cole.

• AKFCF Blues Brothers Noah Hommerding and Kevin Schlutz presented Nanette Walker with the Colonel’s Legacy Award.

• David Sparks and the second-best looking guy in the room, Jeff Baker, awarded Tom Broome with the John R. Neal Award.

• The AKFCF Outstanding Partner Award was presented to Zaira Guevara by Leslie Sharp.

• And Pete Wasilevich, was honored with the AKFCF Lifetime Achievement Award. Mike Kulp and Jim Olson presented the award to Pete’s daughter Jill Vitkus in his absence.

• This year there were three deserving leaders for the NCAC Hard Way Award. Jim McKenzie and Karen Sherman recognized Tony Buford, Sara Fisher, and Kirsten Schmidt.

• Tarun Lal presented The KFC Franchisee of the Year award to Michel Fulenwider.

• The P.E.T.E Award was presented to Dan Whitney by Karen Ancira and Thuthuka Nxumalo.

• Bill Byrd was awarded the Outstanding Guest Experience Award from Nick Chavez and Paul Tuscano.

• KFCC’s newest award, the Transformation Champion Award was presented to Sam Chand by Jonathan Ojany and Ben Dubost.

• And completing the evening, the KFC Foundation Award was given to Debbie Rollins and Justin Stewart by Emma Horn and Mark Everett.

You raised $270,000+ for the KFC Foundation during the AKFCF Convention! Every dollar raised advances our mission of supporting, empowering, and serving joy to KFC restaurant employees and our communities. Together, we are the Secret Recipe for Good. *Look for more information on our award winners beginning on page 38!

Bryan Robinson

Tom Broome

Pete Wasilevich (daughter)

Nanette Walker

Zaira Guevara

Tony Buford

34 AKFCF Quarterly Spring 2024

Sara Fisher and Kirsten Schmidt

Michel Fulenwider

Dan Whitney

Bill Byrd

Sam Chand

Debbie Rollins

Justin Stewart

A Lasting Partnership Built On Success.

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

KochFoods.com Spring 2024 AKFCF Quarterly 35

Final Day Greg Creed

Government Affairs and Legal Updates GAC Update Thank you to Dan Gans, our AKFCF lobbyist for providing an update on the current political landscape in Washington, DC. Dan highlighted key policy initiatives, the upcoming 2024 election and potential impacts to franchisees.

Legal Update Ron Gardner, AKFCF legal counsel closed out the convention with his annual legal update.

It was a terrific week of celebration among the KFC family.

And many thanks to Justin Stewart and all involved who helped bring his vision and the 2024 Convention to life.

The AKFCF website will have links to all the convention photos, and we will post Ben Nemtin, Scott Greenberg, and Greg Creeds keynotes in the members only section for viewing.

On the final day, Greg Creed, retired CEO, Yum! Brands, Inc., spoke on how culture fuels results. He placed great emphasis on the importance of balancing culture, strategy, and structure. We can all do the following, he said: • Champion bold ideas • Hold others accountable • Empower courageous decisions • Be vulnerable • Remain open & understanding • Connect business strategies to companies values But what matters most is the ability to inspire. And why inspire?

• It differentiates and drives performance • Employees stay because of it • It looks different than you would expect In summary, Greg focused on the following key points: • Set a clear vision (share the why) • Communicate powerfully (make your message stick) • Collaborate authentically (choose your mindset for mutual gain) • Foster innovation (be the catalyst for new ideas) • Develop people (challenge them with work that matters) • Your beliefs, emotions and behaviors are contagious.

So, go out and inspire!

36 AKFCF Quarterly Spring 2024

KFC’s “Original Recipe” Runway On the final day in the Trade Show, KFC COOKED’ UP more than just finger-lickin’ good chicken; they reinvented our restaurant style with a sizzling new uniform collection! Unveiling this season’s chic and unique restaurant fashion, where comfort meets couture, and every piece would make the Colonel proud! Here’s what was on the menu: • T-Shirts: Our TM’s asked and we delivered!!These T-shirts sizzle with style, boasting bold KFC branding and a chic, comfortable fit.

• Hats and Visor: The hat makes the outfit! We revealed new head-turning hats and a visor. A true blend of iconic style and practicality, perfect for the fast-paced KFC restaurant life.

• Manager Polos: Our managers will elevate their leadership look with our Manager Polos. Featuring sophisticated KFC branding, a sharp collar, and a tailored fit that commands respect — these polos mean business with a side of style.

• Chef Coat and Apron: Our cooks will turn up the heat AND turn heads in the new Chef Coat and Apron. Their sizzling style just may be the 12th ingredient.

• Hoodies: Wrap up in comfort with our KFC hoodies. Soft, warm, and versatile, they’re designed for those chilly days and are the epitome of cool comfort fashion.

• Eisenhower Jacket: A fusion of timeless cool and modern utility, the Eisenhower Jacket, a KFC collection highlight, offers structure and style with a mandarin collar twist. This will take our restaurant fashion to the next level!

• Sleeveless Vest: Layer like a boss with the KFC Sleeveless Vest. Aimed at providing extra warmth and functionality, the vests feature quilted insulation, pockets, and are both practical and stylish!

• Socks: Don’t underestimate the power of a popping pair of socks — these cozy socks complete any outfit with a sprinkle of KFC charm. Featuring our famous “11” logo pattern, they’re sure to put a spring in your step.

2025 Annual Convention We will see you in Nashville for the 2025 Annual Convention.

March 23 – 26, 2025 Gaylord Opryland Resort and Convention Center Nashville, TN

Spring 2024 AKFCF Quarterly 37

Working Toward A Common Vision Honoring AKFCF 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 Bryan Robinson AKFCF John R. Neal Award Tom Broome Colonel’s Legacy Award Nanette Walker AKFCF Lifetime Achievement Award Pete Wasilevich AKFCF Outstanding Partner Award Zaira Guevara

38 AKFCF Quarterly Spring 2024

AKFCF President’s Award – Bryan Robinson

The President’s Award honors members of the AKFCF who have made substantial contributions to the development of the Association and the KFC brand. Individuals adhere to high standards of professionalism, decency, and collegiality. It is awarded to franchisees who have consistently worked to support the AKFCF’s mission statement and have performed “over and above” what has been required. This award is presented each year at the president’s discretion and is approved by the Executive Committee.

This year’s honor goes to AKFCF Past President (2018-19), Bryan Robinson.

Bryan Robinson Among the AKFCF family, Bryan is considered extremely organized with stout common sense and a passion to serve his fellow franchisees. He is president and CEO of Second Gen, Inc., based in Northwest Indiana. He started working for his father’s franchise, T.R. Robinson, Inc. in 1991 and has spent his entire career with the KFC brand.

In addition to owning two restaurants, Bryan also oversees the day-to-day operations of eight restaurants owned by his father’s company. Bryan was president of the Upper Midwest 2015-2017 and chair of the NCAC’s OEC in 2016-2017, and served on the NCAC’s OEC and Ops Subcommittees, as well as on the Chicago Advertising Co-op.

When he took over the reigns as president in 2018, Bryan told AKFCF Quarterly that he loves the KFC business because every day brings something different. “Just when you think you’ve seen it all, something new comes along to keep you on your toes,” he said.

“I also really love my team; it’s a privilege to work with such a great group of hardworking, honest, committed, folks.”

Interacting with the amazing group of leaders within the AKFCF is the single biggest thing franchisees can do to improve their own businesses, Bryan added. “Involvement starts in the regions. If we take the time to sit down with the younger franchisees and explain

Tom Broome

what the opportunities are, how it’s going to help them and the brand, then we can help them better understand the benefits. …

This isn’t an association you just work in; it’s an association whose strength and progress depends on the contributions of everyone who is privileged to be part of it.”

AKFCF John R. Neal Award – Tom Broome

This award recognizes substantial contributions made to the AKFCF through service to the NCAC. It is the strong relationship between these two franchisee-centric organizations that have made the AKFCF franchisees the important voice in the franchise system that they are today. No other national franchise organization reveres its franchisees or values their opinion as much as KFCC — in significant part because of the work and partnership done, in good times and in bad, by the AKFCF and the NCAC, working together.

This year’s honor belongs to former NCAC Vice Chair, Tom Broome. Tom has been a franchisee for 17 years and previously was named an AKFCF Shining Star. He was director for the SEKFCFA for four years and served on the NCAC representing Region 4 since 2012. In 1980, he started his restaurant career with Scottish Food Systems as an Area Supervisor. His career with KFC started in 1994, first as a multi-unit manager, and then working his way up to region director and vice president. In 2007, Tom became president of Scottish Food Systems, Inc. “I had so much respect for John R. When I first got into the KFC business, he was always the one leader I looked forward to hearing speak at our SEKFCF meetings,” Tom said. “John R. was a trained lawyer and a great public speaker. He was important in the negotiations for our current franchise disclosure document. He was respected by so many, and he built a KFC business that was better and more suc-

Spring 2024 AKFCF Quarterly 39

Nanette Walker

cessful than most. That business is still be run by his family today.

I feel privileged to receive this award that honors John R. and his contributions to the KFC family.”

Colonel’s Legacy Award – Nanette Walker

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

Nanette was born into the KFC business — literally. Her family’s first restaurant in Ohio was opened the same day she was born!

Nanette says she grew up attending meetings and conventions where the other franchisees treated her like she was one of their own children. The AKFCF always has been a franchise family, she said.

Nanette and her husband, Chris, have been in the KFC business for more than 30 years! The couple have two sons, Zac and Peyton, whom Nanette hopes will continue the family tradition and become KFC franchisees. As a former Shining Star winner, Nanette is setting a great example by getting involved in committees and showing her family just how rewarding an experience it can be. She is President of the Greater Midwest Region, and serves on the AKFCF’s Education and Partnership Survey Committees. Nanette is indeed creating a proud legacy.

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 2024, this high honor goes to Pete Wasilevich. Few people within the Association have garnered as much admiration and appreciation as Pete. He was honored with a John R. Neal Award in 2020 and has received numerous other accolades.

Pete started in the KFC business more than 50 years ago when he was hired as a cook by franchisee Ken Monroe at the age of 15 in Kenosha, Wisconsin. From 1971 to 1983, Pete worked as a cook, AUM, RGM, market coach and general manager for his franchisee. He acquired his first KFC in 1983 and began a long and impactful career as a KFC franchisee. By 1999, between new builds and acquisitions, Pete and his then-partner Terry Robinson grew their business to a total of 41 restaurants.

It was at about the same time that Pete began devoting almost as much time to the NCAC as he did to his own business.

Pete has been a member of the NCAC for over 20 years. He has served on every permanent committee that has ever existed on NCAC, including terms on the Operations Committee, the Operations Excellence Committee, the Brand Committee, and the Audit Committee, as well as serving terms as the chairman of the Contracts and Facilities Committee and the National Marketing Subcommittee. There is no one on the planet who knows more about the marketing strategy behind selling the Colonel’s chicken than Pete Wasilevich.

He is a founding member of the KFC Foundation, and served as one of the “three amigos” in negotiating the agreement that turned the brand around — the Acceleration Agreement. Every franchisee owes a debt of gratitude to the amount of time and effort Pete has spent negotiating, planning, and taking care of the business of KFC with a focus on the profitability of each and every one of us.

AKFCF Lifetime Achievement Award – Pete Wasilevich

This award recognizes an individual who has given decades of outstanding service and volunteer leadership spanning a career in franchising. It is presented each year at the AKFCF president’s discretion and is approved by the Executive Committee. The award recognizes individual accomplishments and contributions to the Association

40 AKFCF Quarterly Spring 2024

Pete Wasilevich (daughter)

Zaira Guevara

AKFCF Outstanding Partner Award – Zaira Guevara

The AKFCF Outstanding Partner Award recognizes an individual who is not a KFC franchisee, but has made a substantial contribution to the success of our system. This award honors those who have provided us with best-in-class product, support or service, or one who has made an exceptional impact across the system. Who better exemplifies this partnership than Zaira Guevara?

Zaira is CARIBLA’s marketing and administrative manager. She says the award was a pleasant surprise. “I am honored to receive the Outstanding Partner Award by AKFCF and been recognized for my work with the KFC franchisee family. I am glad that my contributions have been positive to the franchisee community and that I can continue to add value to the KFC franchisees in the U.S. and internationally. I am thankful to the AKFCF President and Executive Committee for this recognition.

It meant a lot to me to accept this award while my son was present in the meeting room during the CARIBLA General Session.”

Incoming AKFCF President, Leslie Sharp, who presented the honor to Zaira, said “I can say with confidence that this award was well deserved. Zaira has been a constant within CARIBLA. She is their main point of contact and she represents CARIBLA with great professionalism. She is dedicated and talented, always willing to learn and share her talents with others. Her loyalty and dedication to the Association has made them a stronger Association.” n

Spring 2024 AKFCF Quarterly 41

AKFCF Shining Stars

Leading by example

E

ach year, the AKFCF acknowledges individuals who exceed expectations in the volunteer work they do for our KFC franchisee family. We honor these people with a Shining Star Award. There isn’t a definitive checklist of tasks or acts of kindness that Association leadership can turn to when seeking to recognize someone’s contributions to our family; we just know outstanding work when we see it. The recipients of this year’s awards proved that their tireless, unselfish commitment to the AKFCF goes above and beyond the norm. May you be inspired by their leadership, knowledge, and talents — and the many ways they support the franchisee community.

42 AKFCF Quarterly Spring 2024

2023-2024 Shining Stars Austin Felker Dan Whitney Chris Basinger Tony Lambos Shawn Shariff Roger Sparks Michael Fulenwider

Austin Felker

Austin is a third-generation franchisee whose family has been involved with KFC for more than 60 years. His grandfather, Troy Day, began his entrepreneurial journey opening his first KFC location in North Carolina in 1966.

Through his leadership the company grew to around 30 locations successfully operating across the Carolinas. Over the years, almost every member of the family has worked for, or has been impacted by, the business in some capacity.

“My grandfather, who is a true hero of mine, sadly passed away last year at the age of 95. One of the many things I admired about him was his innate passion for service above self,” Austin said. “Among his many accomplishments, he applied this philosophy of service to civic, philanthropic, and professional leadership.”

Day served in many positions during his time with the brand, including as director and president of the Southeastern KFC Franchisee Association (SEKFCFA) and National Franchisee Advisory Council before it became the NCAC. Austin said this group of early leaders played a crucial role in establishing both regional and national associations during the formative years, emerging as true pioneers of franchisee rights and representation. “My grandfather’s legacy of service has left a profound impact on many members of my family. Following in his footsteps, my uncle, Eric Overcash, has served in numerous capacities including as president of the SEKFCFA and

Austin Felker

the AKFCF. Continuing this tradition, my father, Eric Felker, is the incoming President of the SEKFCFA.” Austin became part of the system in 2016 and has since served in multiple volunteer roles, including on the GAC as the Southeastern representative, secretary, vice chair, and chairman. Additionally, he served on

the Finance Committee as its chairman.

“Through chairing different committees within the Association, I’ve had the extraordinary opportunity to engage with and present to members of the AKFCF Board and Executive Committee,” he said. “I’m committed to upholding the tradition of service to the franchisee community within

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

©2022 Tyson Foods, Inc.

Spring 2024 AKFCF Quarterly 43

my family, and I aim to continue this legacy in my own journey.”

Austin is a past recipient of the Colonel’s Legacy Award (2023). Upon receiving his Shining Star Award, Austin said he considers Outgoing AKFCF President Justin Stewart a role model and mentor so he was grateful to be recognized by him. “The award even had an extra layer enhanced by Justin as he personally included a special bottle of wine that my wife and I are saving to open on a special occasion.

“Being recognized for my efforts and dedication to the AKFCF in receiving the Shining Star Award is an incredible honor,” Austin continued. “I hope to be an ambassador for the brand and the Association by upholding the values and missions in any role I serve. This recognition also reflects the mentors and outstanding individuals I’ve had the privilege to work alongside on the various committees — each person contributing their unique talents and commitment to our shared goals.”

Chris Basinger

Chris Basinger

Chris started his KFC career in Portland, Oregon, in 1995, working with KFCC. In 1998, Portland and Seattle area locations were sold to Samuel Sibert and Northwest Restaurants Inc. So, Chris joined Sibert and

his team, holding many positions within the organization including area coach, director of operations, and senior director of operations.

Currently, he is vice president of Northwest Restaurants Inc. Chris served on the RSCS committee for the NW Region for six years, ending in 2023.

He now serves on the AKFCF as a Large Franchisee Representative and the NCAC Tech Sub-committee. He says he was quite surprised to be recognized for these efforts with a Shining Star.

“It’s an honor for me to receive this award.

For me, this award really affirms that how we treat people inside and around our organization — along with our commitment to internal people development and recognition culture — are the right way to run an organization,” he said.

It is easy to tell when speaking with Chris that his dedication to KFC runs deep. This may be the first such honor for Chris from the Association, but it certainly won’t be the last.

Roger Sparks

Roger’s story may seem familiar to many of you. He began working at KFC as a teenager (14), following his older brother, David, as an employee at his local restaurant (Socorro, New Mexico). Shortly after, David moved into management at another KFC restaurant and soon took the bold step of ownership at that location at just 19 years old. During the

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44 AKFCF Quarterly Spring 2024

Roger Sparks

summer months and other breaks while in college, Roger would work for his brother, gaining valuable experience and earning money for school.

“After a couple years of this, David decided he wanted to grow so he invited me to come to work with him full time,” Roger recalled, “so, I put my college career on hold and started to work for him. After a few years, I resumed my college education and completed my degree with a dual major in marketing and travel and tourism.”

Roger then took a brief detour and left KFC for two years, moving to California for a new job. While there, he met my wife, Trang, and got a lot of experience in an industry outside of KFC and quick service restaurants. But David soon would call with an offer to join him as a partner to grow the family’s KFC’s and Taco Bell’s in New Mexico.

“In my career with KFC, I have been blessed to see and do many things as well as meet some amazing people within the KFC system,” Roger said. “Currently, I am the president of our New Mexico local Advertising Co-op, and I am also a past president of the Southwest KFC Franchise Association (SWKFCFA). While I was running the chairs of the SWKFCFA, I became a board member of the AKFCF.” While on the Board, Roger served on the Finance Committee, and was eventually appointed its Chair. Then, when Keith Cole, who had been AKFCF Treasurer, began his journey “running the chairs” (which is what the Association calls the levels running up to the Presidency of the AKFCF), Roger was voted in as the AKFCF Treasurer.

“As this issue comes out, I will have just finished my time in the combined roll as the Treasurer and 2nd VP of the AKFCF and I am now the 1st VP of the AKFCF,” he said. “In each of those roles, I have been fortunate to have had the opportunity to work with amazingly talented people and to be on a multitude of committees and workgroups all with hopes of making New Mexico, our SW Region, the AKFCF, and our franchisee system stronger and more successful and to build our KFC brand that has given so much to me and my family.”

Roger learned of his Shining Star honor while attending the 2023 Super Regional in Atlanta, but this isn’t his first time receiving this award. He won his first Shining Star in 2016 as well as an AKFCF Rock Star award

my voice and effort to the group to help to make us all more successful and better for it.

When I received the Shining Star Award at the Super Regional, I was very surprised and very humbled to know that others thought enough about me and what I have contributed to our franchise system to honor me with the Shining Star.”

Tony Lambos

Tony Lambos

from then-President Keith Cole. “I have never participated in any of the groups for recognition, nor have I ever expected to receive it,” Roger said. “I participate to hopefully add

Tony’s family has been in the KFC business since 1960 when his grandfather met Colonel Sanders. Today, Tony runs the family business alongside Mark Lambos. They have 21 KFC restaurants in northeast and central Ohio.

Currently, Tony says they are in the process of building their 22nd restaurant.

“I’m currently on the GAC and I did my first fly-in to Washington in 2023,” Tony said. “It was a really nice learning experience for me! I found out about the award at the fall meeting, and it’s the first award like this I’ve gotten. It means a lot to me because I have been involved with the AKFCF for a long time.” n

Spring 2024 AKFCF Quarterly 45

RSCS MEMBER PROGRAMS

PICTURE YOUR SAVINGS WITH RSCS MEMBER PROGRAMS & EMPLOYEE PERKS Be sure to check out our new website at memberprograms.rscs.com to learn how you can save THOUSANDS on services for your restaurants.

By Mark Chrisman

O

ur goal at Restaurant Supply Chain Solutions is to provide a competitive advantage to our members. Through RSCS Member Programs, we offer discounts on products and services used to run your business, and we don’t stop at waste & recycling, pest control, and CO2 services.

We have an exciting new program with Avion Energy to compliment the full suite of programs.

Member Programs Spotlight: Avion Energy Avion Energy is excited to join RSCS’s Member Services Program to help Yum! Brands franchisees manage the expense of energy used to run your businesses. We save you money in two ways: • Maintaining lowest pricing for electricity & natural gas supply in ‘deregulated’ states.

• Promoting energy efficiency measures to reduce the amount of these commodities you use.

Avion Energy simplifies the process of energy procurement, providing franchisees with the best price on natural gas and electricity. Their platform is easy to use, robust, and award-winning! www.energybusinessreview. com/avion-energy-group

• Warehousing your key documents • Auditing your first billing statement to ensure the correct rate is billed • 90 days before contract expiration, we start the process again for the next contract cycle.

The process: You: Send us recent electricity & natural gas bill copies; and any current supplier contract status.

You: Sign/return permission docs for us to represent you with the utility companies and energy suppliers.

Avion: Prepares a bid request and submits the information to energy suppliers licensed to operate in your respective states via our automated system.

• As supplier bids are submitted, they’re normalized for an apples-to-apples comparison, making sure there are no hidden pass-through charges buried deep in a contract.

• You then receive an email with a link to a private web page presentation — an easy-to-read grid format with multiple supplier names and prices for, typically, 12, 24, 36, & 48 months.

• Our platform of competition ensures that every energy supplier and their prices are presented simultaneously with their competitors’ so that the best price is revealed.

Avion Energy brings many affordable options to help restaurant operators consume less energy and reduce power bills. Our OEM and strategic partnerships enable us to advise you on many proven energy-saving technologies and ultimately join you in supporting a greener future.

You: Select the energy supplier best suited to your needs, and Avion Energy helps prepare all the documents for approval. Our services include: • Management of the contract process • Keeping you informed regarding when the energy supplier accepts the signed agreement

46 AKFCF Quarterly Spring 2024

To learn more about the significant savings opportunities for KFC franchisees: Martin O’Keeffe martin@avionenergy.com memberprograms.rscs.com 678.607.6852 In addition to Avion, we have newly negotiated rates with UPS, saving you up to 80 percent on NDA letters and 25 percent on ground shipping, so double-check to be sure your account is linked to our RSCS rates by emailing us at memberprograms@rscs.com.

Other Member Programs include: • Cleaning Services with Cintas • In-Store Music with Mood Media • Payroll Services with Paycor • Slip-Resistant Shoe Payroll Deduction Programs: • Shoes for Crews • Skechers • SR Max • Careismatic

You can access our complete list of programs at memberprograms. rscs.com. Utilizing our Member Programs Directory, you will find comprehensive details about each program we offer, including available discounts and contact information. This ensures that you can take advantage of the discounted rates provided by RSCS. We recommend consulting your designated account manager (listed on our Vendor Contacts page) to ensure you receive the most favorable rates through RSCS. Employee Perks: Save on Vehicles, Electronics, Vacations, and MORE! To help with retention, we proudly offer our KFC Employee Perks program through Abenity. Team members can save on a wide range of products and services from popular retailers, rental cars, movie tickets, oil changes, hotel rooms, theme parks, electronics, mortgage services, and so much more! Visit memberprograms.rscs.com > Employee Perks to download our latest flyers. n

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

Spring 2024 AKFCF Quarterly 47

KFC FOUNDATION

HELP YOUR EMPLOYEES BECOME THEIR BEST SELF

By Debbie Rollins, KFC Foundation Program Director

T

he KFC Foundation is committed to supporting, empowering, and serving joy to KFC restaurant employees and your communities. Our newest program, Become Your Best Self, is focused on unlocking the potential of every KFC restaurant employee through personal growth and professional development.

How It Started Our GED Program Partner, Vanessa, knows how passionate I am about KFC restaurant employees, especially when it comes to their development, education, and future. She shared that a couple of former GED Testing Service employees branched out on their own and created Julius to help companies build better learner experiences and career pathways for their employees. She asked if I would consider meeting with them. You know what my answer was… “YES!” We met with Julius for over a year to discuss all they had to offer, what we would want from a program like this, how to format

it for KFC restaurant employees, etc. I had a gut feeling from our first meeting that this program was like no other — like no program we had or any other QSR had — and, if done right, could be a game changer for your restaurant employees.

Once we had the finished product, we presented it to the KFC Foundation Board and at AKFCF regional meetings to collect thoughts and feedback before moving forward with a pilot. It was well-received! Everyone loved the easy, mobile-friendly user experience, the breadth of content covered in bite-sized videos, and that one could complete the full course in a couple of hours if they wanted to.

We had the green light to launch!

How It Helps To attract and retain talent, investing in your employees’ careers with the right upskilling and pathway solutions is essential. Nine out of 10 younger workers view career path progression as a top priority when choosing a job.

And the #1 reason employees leave their jobs

is lack of career development, not pay.

Become Your Best Self addresses two, key needs for restaurant employees: 1) Career mapping within KFC and beyond • The Become Your Best Self program provides a customized KFC restaurant employee career navigation map. It shows what skills are needed to be a team member, shift supervisor, assistant manager, and RGM — to help encourage personal and professional growth through the ranks of a KFC restaurant.

• The career navigation map also shows other jobs they may be qualified for with the skills they currently have or will have at different levels within the restaurant. For employees who are furthering their education, this map shows them the benefit of staying with KFC while in post-secondary school — to gain and develop important skills while working at KFC. 2) Enhancing personal skills and development • Restaurant employees are trained to operate and run their restaurants. They are not always provided the tools and knowledge to communicate effectively, to develop self-awareness, motivation, empathy, and accountability, to give and receive feedback, to keep their cool in difficult situations, and more. All skills that are needed for them to be successful and for a restaurant to be successful. Successful employees = successful restaurants.

Become Your Best Self is so simple and quick to complete, yet its impact on those who complete it is HUGE. I believe that completing Become Your Best

48 AKFCF Quarterly Spring 2024

Self results in greater self-confidence, a bigger sense of importance and purpose, a more positive outlook, and increased desire and determination to be the best employee, leader, and human they can be.

This program provides a toolkit that restaurant employees haven’t consistently had access to before — to help them practice empathy, give or receive feedback, deal with angry guests and team members, and more.

To attract and retain talent, investing in your employees’ careers with the right upskilling and pathway solutions is essential.

How It’s Going Here’s what KFC employees are saying about the program: “I like how I can go back to the courses and take the exams over and over, until it’s implemented in my brain.” – Team member “This program has opened my eyes and made me more self-aware of my actions and how I come across to my team. Thanks for the opportunity!” – ARL “This is a great program! The biggest thing I learned was how to help others control their anger in certain situations.” – Assistant manager “There are a lot of different techniques to help you become more confident and a successful leader.” – Shift supervisor

Scan this code to get started.

One assistant manager shared that she believes Become Your Best Self has been a factor in her employees staying longer.

Someone who works in the field told me she wishes we had this program when she started with KFC. She has witnessed team members walk out on shift because they did not know how to handle their anger or anger from a guest. If she had this program to reference and the short video to share at THAT moment, she’s confident those team members would all still be working at KFC today.

Franchisees have shared that they like how short and quick the lessons are. It makes it easy to pull an employee aside to address an issue in the moment, give them a 5-minute video to watch, have a quick discussion, and then they are back to work.

I would love nothing more than to see Become Your Best Self incorporated into all restaurant employee onboarding and used as a promotion aid for those who are looking to (or ready to) move to the next level in the restaurant. I would also love this to become a career navigation map for RGMs and Area Coaches, showing the direction they could

continue into the above restaurant level side of the business.

The top three takeaways I want to leave you with: 1. Become Your Best Self provides career navigation and upskilling solutions that are essential to attracting and retaining talent.

2. This program will make a positive impact — not only on your employees, but on the success of your restaurants. Being a champion for this program will be a WIN for you and your organization.

3. The best time to tell your employees about this program is NOW! Also consider incorporating it into in-the-moment coaching conversations, new hire onboarding, and performance reviews.

Restaurant employees can learn more about this program and sign up at ­kfcfoundation.org/growyourskills.

n

*For your employees to be eligible for this program, they must work at a restaurant participating in the KFC Foundation’s Annual Donation Program.

Spring 2024 AKFCF Quarterly 49

REGIONAL SHORT

SOCAL REPORT

By Deborah Lundie

L

ooking at the structure of regional meetings and the changes over the past few years, Southern California decided to venture out on our own instead of joining the other regions for the Super Regional in 2023. We did something different last year, by combining our usual Spring Managers Meeting and Fall Franchisee Regional Meeting.

Our Summer Regional Meeting had a day for franchisees to conduct business meetings as well as meet with vendors, and a most productive zoom video chat with KFCC. For the second day of the meeting, we welcomed all the managers and recognized those that excelled in

operations and sales. The mangers also met with the vendors that day and had fun with a card game and clues for each vendor!

SoCal looks forward to the remainder of the year.

Our SoCal region continues to discuss the government changes to employee wages that started in April. We are being proactive with talks between corporate and our franchisees. We hope for some positive solutions to the imperative impact facing all stores.

This year will be challenging with the election coming up and local government changes. Be positive and optimistic we say! n

Let us be “THE BRIDGE” from where you are to where you want to be!

It was GREAT seeing everyone at the Annual KFC Convention in Las Vegas! NDA has been represented at this gathering since our inception in 1988.

NDA remains “Ready When You Are” to:

SELL, BUY, VALUE, FINANCE …Your KFC restaurant holdings.

Derek Diachenko

WWW.NDAINC.NET

50 AKFCF Quarterly Spring 2024

502-495-2262 derekd@ndainc.net

Mitch Rue

502-618-4896 mitchr@ndainc.net

John Pinar

502-552-6991 johnp@ndainc.net

Nick Diachenko

502-495-2345 nickd@ndainc.net

REGIONAL SHORT

SPRINGTIME IN THE SOUTH

By Jenn Thomas, Executive Director of the SEKFCFA

I

t’s about this time of year every year that I begin to believe that I will make it through another winter! The Daffodils, Bradford Pear trees, and Cherry trees began blooming a few weeks ago, a sure sign that we will make it to spring. In Virginia and most parts of the Southeast, there are no “major” snow accumulations, no sub-zero temperatures, and no six-month-long winters. In fact, weather like that seen by our northern neighbors would completely cripple us. The mere threat of a couple of inches of snow here would create a frenzy at the grocery store for milk and bread (Even by people who don’t consume them!). My boys got a day off from school this past winter for what turned Marriott Sawgrass in Ponte Vedra, Florida out to be rain and wind (picture me shaking my head as I write this). In short, we are a soft bunch when it comes to cold weather. But that’s why we live where we don’t have to deal with it…too much anyway.

The Southeast is full of sunny destinations, which is one reason we will host the Super Regional again. For 2024, the Southeast, Northeast, Greater Midwest, Southwest, and Northwest regions will come together again at the Marriott Sawgrass in Ponte Vedra, Florida. The dates of this meeting are Sept. 29 through Oct. 2, 2024. I just returned from a site visit there and I’m so excited for this location and venue.

Ponte Vedra is a golfer’s paradise with two TPC courses connected to our host hotel. It’s also a beach-goers paradise with a short shuttle ride to the Florida coastline and a very private beach with all the amenities. Board of the RSCS. I’m sure his leadership will continue, but he is The hotel itself is newly renovated with a “just right” size convention officially “off the hook” for both responsibilities as of June 1st. area that will be perfect for our 500+ attendees. It is located just across • Mike West for serving as President for the current year. He will the street from a packed shopping center area with tons of restaurants, transition to Immediate Past President in the next term (So he’s not bars, and shops. There’s plenty of recreation and fun to get into for getting away just yet!). But thanks are in order for serving in this franchisees, exhibitor/sponsors, and guests. So, mark your calendars important role. and plan to join us!

• Austin Felker, our outgoing GAC representative. Austin has Also in the spring, the Southeast votes on its slate of incoming accepted additional responsibility at the national level and will be officers and directors. This will occur during the SEKFCFA Region- mentoring Dale Moulton as our new GAC representative (Thank you, al Business Meeting at the Convention. I want to take this time to Dale, for stepping up!). thank all those who have served on behalf of our Association on • Last but not least, Tom (Tab) Broome for his leadership and serthe AKFCF Board, the SEKFCFA Board, the RSCS, the NCAC, the vice as one of the SE representatives to the NCAC. Tom will be retiring GAC, and the RSCS/NCAC Intern positions. I would especially from this role shortly and he will not be easily replaced. As a represenlike to thank and give special recognition to the following exceptative and former Vice Chair of the NCAC, Tab truly gave his time and tional individuals: talents to improve the business for Southeast franchisees.

• Joe Kendall, our Immediate Past President, for his long-standing service to the Southeast franchisees on the SEKFCFA Board. Joe also has served his limit of terms as the SE representative to the NPC

Next up is the SEKFCFA Summer Board meeting at the Hyatt Baha Mar, Bahamas from July 22-25, 2024. Details will be coming out soon. n

Spring 2024 AKFCF Quarterly 51

EXECUTIVE DIRECTOR UPDATE

WHAT’S ON YOUR BUCKET LIST?

By Kelly Rodenberg

B

en Nemtin was the opening keynote speaker at the 2024 Convention. His keynote connected with the audience and many of the speakers who followed him on the main stage. I know it did because we heard KFCC CEO, Sabir Sami, KFCC President Tarun Lal, and others open their presentations with thoughts on Ben’s message. We all stopped to reflect and think not only during his presentation but for days after.

Ben’s question to himself and to his audiences is, what do you want to do before you die? When he started this journey with three friends, it was kind of an odd question for 19-, 20-year-olds to ask themselves, but for them, the thought of death made them think about life, and so when they asked this question, there were many answers. And they started to write down answers to the question, which ultimately grew into a list — the bucket list.

It started when one of the friends was a freshman in English class, and he got assigned this poem called “The Buried Life.” It’s a 150-yearold poem by Matthew Arnold, and its about unfulfilled goals. We all have moments when we’re inspired, but they get buried by the day-today. So, we need to unbury our dreams, these things that are hidden deep inside us.

Ben and his friends wrote this bucket list together and they pretended they could do anything. They pretended they had all the money in the world and could fulfill their wildest dreams. They wrote this audacious bucket list and thought, let’s go after this list and let’s also help other people accomplish their bucket list. They went on a road trip, and they asked strangers what’s on their list, and they helped them. And they would accomplish, or at least try to accomplish, their bucket list. A bucket list of one hundred things. Over the past decade, Ben and his friends have accomplished 98 of those goals.

AKFCF President Justin Stewart’s theme “Reaching Impossible” was the very message that Ben expanded on.

We need to convince ourselves that anything is possible, that the impossiBen Nemtin

52 AKFCF Quarterly Spring 2024

ble is possible, by virtue of continuing to charge toward those dreams and through the help of other people.

The journey is unexpected. It can be sparked by a decision to surround ourselves with people who inspire us. Sometimes, one decision can completely change the path of life. Along the way, we learn a lot about why we continually feel buried by the day-to-day. This is not a new feeling. It’s been happening for hundreds of years. And most people continue to push their personal goals until they realize they’re out of time. Ben noted that 76 percent of people on their deathbed don’t regret the things they did. They regret the things they didn’t do.

He encouraged us to look at those things that are important and helped us to understand it’s not selfish to have personal goals. When you do the things that you love, you’re more alive. You can serve others better. So, it’s important for our wellbeing. It’s important for organizations to support their people to have personal dreams and goals, and to go after them. That allows the organization to thrive.

What’s going to bring you joy and happiness? There are no right or wrong answers. The only rule is that it’s important to you. We need to give ourselves permission to look at what we need to be the best version of ourselves, and then try to build some structures of accountability around those so that we don’t forget about those things.

So, how can we create some accountability around these personal goals to drive us forward? Ben stressed that a bucket list is different for everyone. But that’s OK, and the important thing is that we take time to think about what those things are, and then we create some sort of structure of accountability and create inspiration through action so that we don’t regret not doing those things because we know that they’re important to us.

I started my bucket list. I love live music and concerts. Going to a concert at Red Rocks Amphitheater in Colorado has been on my list for a while. So, my tickets are booked to see Santana and Counting Crows there in July. Check-Check! 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

SUCCESSES, CONCERNS, AND OTHER MATTERS!

By Ron Gardner

I

am writing this article just 10 days after the close of our annual AKFCF Convention — my favorite time of the year! It’s always so great to get together as a family, get caught up, and do the hard work of keeping this brand moving forward.

While my job requires a lot of work leading up to the Convention, and behind the scenes while we are there, what I enjoy most is my most public-facing duty of providing the franchisees with a legal update on system happenings and giving some realistic context to how we are doing overall.

Due in significant part to your contributions to the digital fee, and the hard work of both the KFCC and franchisee members of the technology committee and teams, digital sales continue to grow by more than double digits year over year.

This brings me to the topic of this edition of my column — where are we? While we are certainly dealing with some concerns (more on that below), I want to begin by noting some of the many successes that we have achieved together in the past several months.

High among our successes is the launch of our loyalty program and the continued

54 AKFCF Quarterly Spring 2024

growth of our digital presence as a part driver of your business. Due in significant part to your contributions to the digital fee, and the hard work of both the KFCC and franchisee members of the technology committee and teams, digital sales continue to grow by more than double digits year over year. Even better news, the share of our digital transactions that are going through our “own channels” (KFC.com and our app) is up to 31 percent and projected to grow to 38 percent by the end of 2024.

These are, by far, the most profitable sales that you can make through digital channels because you are not required to pay any aggregator fees in making these sales.

Driving sales to these channels is one of our primary goals. One way we do that is to get our loyalty program really rolling. With loyalty finally launched in the first quarter of this year, I am happy to report that we already have more than 1.3 million subscribers and redemptions have already begun.

In short, this loyalty program will drive increased transactions from our heaviest users — our most profitable customer segment. I couldn’t be more pleased with the way this program finally seems to be moving.

One big concern that many people have had about our digital ecosystem is the ability of fraudsters to rip off franchisees.

To that end, your digital fee began funding a program run by Fiserv earlier this year that has already shown immense promise in ridding us of (or at least significantly decreasing) this fraud. Literally hundreds of fraudsters and thousands of potentially fraudulent transactions have already been blocked, and the machine learning that this system does to ferret out and block fraudulent transactions is in full swing. Again, this is another success that should help increase your profitability.

Business cycles swing. What I find refreshing and dynamic about the KFC system is the way we band together to weather the storms.

Speaking of profitability, we also announced at Convention that we are migrating from our current pricing partner, RMS, to a new partner in Deloitte. In our tests, we discovered that the Deloitte system was more customizable and more localized when you fully utilize their program and the one-on-one consultants who are available to you. While RMS will continue to take any pricing analysis questions that folks have through the end of June, we will be switching to Deloitte full time beginning on July 1. Because the NCAC will pay for up to two rounds of pricing analysis for you from July 1 to the end of the year, I strongly urge you to give Deloitte a look and have them run at least one analysis for you to be sure that your prices are being set in a way that make you the most competitive and most profitable.

Finally, while we’re listing successes, I want to thank KFCC General Counsel, Kate Ward, and KFC Franchise Counsel, Sarah Hill, for helping us to ensure that those of you with the 5 percent franchise agreement (i.e., the 5/15 Agreement) are fully capable of having one 10-year renewal.

(Your current agreement says that it has no renewal rights, and while we had previously agreed that 5/15s would get one 10-year renewal, there was some ambiguity about who that applied to. We have eliminated that ambiguity, and all 5/15 holders are now entitled to one 10-year renewal.) If you need a copy of the agreement that Kate and I reached, please let me know and I will get that to you.

High on the list of concerns is the continued loss of transactions being experienced

by KFC franchisees. While this phenomenon is not unique to KFC, we should be doing everything we can to stabilize and reverse this trend. To that end, I can report that your NCAC, along with the KFC marketing department, has been laser-focused on developing an everyday value opportunity (“the Taste of KFC”) to help juice those transactional opportunities, particularly with lower-income customers. As these

programs roll out, we will eagerly await the results and make any necessary changes to them as swiftly as possible to continue to drive the system forward.

As we endeavor to right the ship, we also remain concerned about the cost of remodel obligations. While the company has done a tremendous job squeezing costs out of the current remodel requirements, for some that cost may still make meeting the requirements a daunting task. Your Contracts and Facilities Committee continues to work with the company to attempt to resolve this issue, while recognizing that there does need to be an improvement to the general state of KFC assets out there to continue to drive customers to a relevant and dynamic brand. Finding the right balance is indeed a challenge.

Finally, I received more questions about the Visa/Mastercard settlement than any other at Convention, and since then. As I noted in my legal update, anyone wanting to make a claim (which should be all of you so long as you were taking Visa and Mastercard through 2019) needs to have that claim filed no later than May 31, 2024. If you have not been contacted by the claims administrator, please reach out to them directly as soon as possible. You can reach them by phone at 1.800.625.6440, or email at info@paymentcardsettlement.com.

Business cycles swing. What I find refreshing and dynamic about the KFC system is the way we band together to weather the storms. Given the numerous successes we have achieved in the past several months, I continue to be bullish on the future of this brand and the profitability that you can all achieve.

Thanks again for the opportunity to represent you in these important matters. 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 15

Auspex Capital

11

Bama Companies

32

Berry AI

44

Café Valley Bakery

45

Case Farms

33

Custom Seating, Inc.

37

Decisely

C3

Dr. Pepper Snapple Group

7

Gycor International

25

KFC Foundation

35

Koch Foods

C2

Magnesol

41

Mulligan Funding, LLC

50

NDA, Inc.

1

Partstown

3

PepsiCo

21

Pilgrim’s

9

Restaurant 365

12,13, 47

Restaurant Supply Chain Solutions

17

Restaurant Technologies

43

Tyson Foods, Inc.

5

Welbilt

31

Western Governors University

C4

Winston Industries

29

Workstream

Spring 2024 AKFCF Quarterly 55

Photo Courtesy of global.kfc.com

LOOKING BACK

56 AKFCF Quarterly Spring 2024

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