AKFCF Summer 2020

QUARTERLY

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CONTENTS

AKFCF QUARTERLY SUMMER 2020

26 30 FEATURES

36

GAC Report: COVID-19 Will Leave Its Mark On The Ballot 20 Box

By Amy Agenbroad This fall, nationwide votes will reflect just how important local elections are since the coronavirus response wasn’t limited to the Federal government.

Yes, There are Bright Spots Post-Pandemic 26

By Jim Sullivan There are some bright spots to uncover and lessons to be learned from this crisis that will make us better, stronger, more resilient.

KFC FOUNDATION: PUTTING PEOPLE FIRST IS THE NAME OF KFC’S 30 GAME

DEPARTMENTS 4 From the Editor 6 Outgoing President’s Report 8 Incoming President’s Report 12 NCAC Report 16 In the News

By Elizabeth Edrington

46 RSCS DES

We help restaurant employees grow and achieve their goals. We support our people when the going gets tough, in every way we can.

48 KFC Foundation

36 By Stefanie Hess

WE ARE KFC STRONG As the COVID-19 situation quickly escalated in the U.S., KFCC was committed to keeping its restaurant teams informed and safe. We also needed to unite as a KFC family and show that, together, we were going to get through this.

50 Partnership Survey Committee Report 51 Regional Shorts 52 Executive Director Update 54 Legal Update By Ron Gardner 56 Looking Back

We Are KFC Strong Like most social media movements, KFC Strong started out slowly. What started as a slow trickle of posts turned into a wonderful flood of the most heartfelt and generous gestures most of us have ever seen captured in one place. KFC Strong had turned into a celebration of the human spirit.

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FROM THE EDITOR

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

WHAT A CRAZY RIDE…

By Michelle Hunt

W

ho knew when we were leaving Nashville what the next few months would look like? I didn’t anticipate my high schooler being on summer break starting in March, nor my college student completing the rest of his coursework online. However, I can say that I’m thankful we live where we live. Not to say that we haven’t had our share of COVID-19. In fact, our humble little southeast Iowa county was on a national hotspot list for a couple of weeks. But I am grateful. Grateful that I was able to go to work every day, grateful for our health, and grateful for our employees’ health. But one thing I am so grateful for is the strength of this great brand and the way our food brings people together. I’m certain no one knew how this national emergency and the varying state-level restrictions would affect the brand. As you will read in this issue, we banded together and led our way through it.

One of the most heartwarming outcomes of the pandemic was the creation of the KFC Strong community on Facebook. From food donations to frontline workers, nursing homes, and other essential workers to celebrating our graduates, this community exploded with love. Thank you to Stefanie Hess, KFCC Field Training Leader, for sharing the evolution of the KFC Strong community on page 36. The KFC Foundation also rallied to expand support for KFC employees. Read about their recent initiatives on page 30 that include Feed the Force: Grocery Assistance Fund, compiling and disseminating available resources, helping employees in crisis, and communicating other Yum! Brand opportunities for our employees. Both of these groups did a phenomenal job and we are so thankful for their support.

Keeping it positive, our friend Jim Sullivan contributed an article on page 26 about some potential bright spots through the pandemic so far and also the lessons learned. We appreciate Jim sharing those insights with us. And our final feature is from the Government Affairs Committee and Polaris Consulting on page 20. In addition to 2020 being a presidential election year, the crisis response from the federal government has taken center stage. This article outlines not only the response, but the role our Government Affairs Committee and Polaris played in protecting the franchisee community.

There is always a changing of the guard of sorts in the summer issue as we include the final column from the outgoing AKFCF president and the first column of the incoming AKFCF president. You will see reiterated throughout this issue that Jim McKenzie was the level-headed leader we needed during this time of many unknowns and we thank him for his positive and strong leadership. Brandon Robertson will take the reins and no doubt continue to elevate our Association and the support we provide to our members. Please join Brandon and the rest of our AKFCF family in Washington, D.C. March 2-5 for the 2021 AKFCF Convention. Yes, that’s right, we’re staying the course and I look forward to seeing you there!

4 AKFCF Quarterly Summer 2020

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

AKFCF EDITORIAL TEAM

AKFCF President

Editor

Assistant Editor AKFCF Administrative

Director Communications Chair

Executive Director

Past President

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

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

FRANCHISEE EDITORS:

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

Copyright ©2020 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 1071-9873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation.

AKFCF ADVERTISING AND EDITORIAL SUPPORT OFFICE

Send all advertising and editorial submissions for AKFCF Quarterly to:

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OUTGOING PRESIDENT

LEADERSHIP IS A TEAM EFFORT

By Jim McKenzie

I

t was in April of 2019 when we selected the Convention theme “Banding Together and Leading the Way.” I could not have possibly imagined how true to life this theme would come to be for us as an Association. We left the Nashville Convention in February, unaware of what was about to hit us all in a month’s time. It was not how I envisioned the last half of my presidency would play out. However, as time passes, I am certain that as individual franchisees, and as an Association, we will be stronger from our experiences.

Effective leaders are at their best during difficult times, drawing on our experience to respond, rather than react. We acknowledge uncertainty and rally our teams to step forward and serve. And we are reminded of how fortunate we are for the expertise,

will, and optimism that characterizes our Association. I am so grateful for the teams around me who have supported me through this unprecedented time: Ron Gardner, the entire GAC and Dan Gans, Kevin Hochman and the entire KFCC team, Todd Imhoff and the RSCS team, the NCAC board and Cynthia Koplos, and the AKFCF Executive committee. The amount of support, wisdom, effort, and dedication to serve our Association and its members has been nothing short of phenomenal!

The skillset we need in a crisis goes beyond any one specific type of knowledge and can be employed regardless of title or setting. All that you are and all that you have learned is harnessed to manage what may, at first glance, seem like insurmountable challenges. With the will of many

While plans are needed, decisions often need to be made in real time and changed quickly as circumstances evolve. We are learning a great deal, yet, we do not have all the answers. And that’s OK, we are doing the best we can — one day at a time.

6 AKFCF Quarterly Summer 2020

franchisees, KFCC, NCAC and RSCS leaders, valued suppliers, staff, and our very own team members, we banded together to bring new ideas, information, questions, and solutions to the table to help us all work through this crisis.

Communication always has been the provenance of leadership. It is how we build trust and transparency, and keep on track to best serve the system. In a crisis, speed is essential to success. While plans are needed, decisions often need to be made in real time and changed quickly as circumstances evolve. We are learning a great deal, yet, we do not have all the answers. And that’s OK, we are doing the best we can — one day at a time. One truth remains: There is no such thing as over-communicating. Transparency, clarity, and consistency are key to being

heard over the fear, concerns, and demands inundating our industry.

These are long days, full of stressful decisions and sometimes woeful outlooks.

Considering how to take care of your team and restaurants is essential. Promoting employee assistance programs, activating safe workspaces, and providing support need to be prioritized. Equally important is providing hope — that together we will persevere and be stronger for it as individuals, as organizations, and as a brand.

Leadership is a team effort. From our very own franchisees to our KFCC, RSCS, and NCAC partners all across the country, we are a strong family like no other. For our part, AKFCF is committed to being your partner in navigating this unprecedented time. You have shared that you need more information to sustain a positive morale among your workforce, to understand how to address operational challenges, and to run your restaurants effectively now and into the new normal.

AKFCF is your voice. We are creating and curating resources, including educational, legal, and governmental updates from our partners related to your issues in managing COVID-19. We may be practicing social distancing where we can, but the AKFCF brings us together and can offer guidance. We’ve heard many stories of our members helping one another and the com-

munities they live in. If you haven’t joined the KFC Strong Facebook page, please do so. Even as AKFCF works to share insights and best practices, I encourage you to reach out to each other to seek or offer support.

We are all in this together.

Finally, I offer my thanks to each of you for the work you and your teams are undertaking to keep KFC restaurants open. Your optimism and passion to serve reinforces all that differentiates our Association and our brand. I know that together, we will get through this and be stronger, more connected, and more able to fulfill our mission.

We are here for you.

As I look back at this year, I am grateful we accomplished some important objectives.

For example, we have put in place a National Contingency Fund. These funds will be collected through our National Support dues and will be used only in time of specific need. We have brought on a third-party communication vendor, Speaking Socially, to help us with our communication platforms. Our Facebook page has been revamped, we have implemented a text communication platform, and will be redeveloping our AKFCF website. We have continued to support our regional associations through leadership development initiatives and consolidation assistance. Most recently, the Great Lakes and Upper Midwest regions consolidated into the Great Midwest Region.

The NCAC has formed a new Technology Committee that will have three members appointed by the AKFCF. This committee will be instrumental as technology continues to become such an important ingredient to our business success. Lastly, we continue to work at delivering the best National Convention possible. Meaningful content, numerous networking opportunities, time for recognition and celebration, and making the time invested well worth it will continue driving our decisions as we plan for future conventions.

I am so grateful for the opportunity I have had to serve as your president! I have learned and gained so much more than I have given — thank you for that truth.

We have a great Association because we are comprised of great people. We are like-minded, we trust each other, we communicate honestly and with humility. We have each other’s backs! James Dean Hicks sang our KFC song at the 2020 Convention.

One line in particular went like this: “This road hasn’t always been easy, but it’s been well worth the ride. What’s got us here thru all these years is working side by side.”

I am anxious to hand the reigns over to Brandon Robertson as your next president. Brandon is a wealth of knowledge, a committed franchisee, and will provide great leadership as we continue to grow as an Association. n

I am so grateful for the opportunity I have had to serve as your president! I have learned and gained so much more than I have given — thank you for that truth.

Summer 2020 AKFCF Quarterly 7

INCOMING PRESIDENT

POWER OF THE PEOPLE

By Brandon Robertson

I

am honored to serve this great Association. First, I must say thank you to Jim Mckenzie for the amazing year he led our family through. His leadership style is truly best-in-class, and I am blessed to have had the opportunity to serve as his 1st VP. There are many leaders who have gone before me in the KFC system that I could not begin to name them all. However, I have to say thank you to all of them for having made our Association an amazing family of franchisees and associates of franchise organizations.

I want to take this opportunity to tell you a little bit about my family and our journey. First and most importantly, I have been married to my amazing wife, Traci, for 26 years. She made our family her career when our first child was born in 1999 after having earned degrees from College of the Ozarks (CofO) in elementary education and psychology. I would not have been able to do what I have done in my career if she had not made that choice. Our two amazing daughters are both in college today. Kelsey is a senior at Missouri S&T, studying computer science. Kaylea is a sophomore at Pittsburg State in Kansas, studying graphic communications design.

I am a first-generation franchisee, and I started my career back in 1996 as an “IT guy” for franchisee Jerome Talley. I have only ever applied for one job since finishing my accounting degree at CofO. Jack Twitty, who was VP of IT for Pendleton-Talley company, hired me and I began my career the day after my last final exam in December of 1996. Jack had been the GM of Tony Orlando Theater in Branson, Missouri and when he left to go to work for Pend-

8 AKFCF Quarterly Summer 2020

leton-Talley, he told me to give him a call when I graduated.

College of the Ozarks is a unique school in that you are required to work on campus to pay for your tuition. My on-campus job gave me my knowledge of computer networks and the hardware that makes them work, and my coursework gave me a strong background in accounting, business, and computer programming. Jack was a former software engineer and was hired to build an integrated POS/accounting solution for Pendleton-Talley. I continued my career there through several changes in ownership,

If I have learned anything, I know great organizations exist because of the amazing people that make them great.

ultimately working for Mike Treadwell at Treadwell Enterprises as his CFO in 2003.

Treadwell Enterprises at its high point owned 96 restaurant locations in a number of different brands, some quick-service and some full-service. In 2006, an opportunity came around that enabled me to take my shot at becoming a franchisee and well, the rest is history. I will tell you more of that story along with my history in our great franchise organizations in my next article.

I am extremely excited for the 2021 Convention at the Gaylord National in Washington D.C. I have known what I wanted the theme of “my” Convention to be for many years. If I have learned anything, I know great organizations exist because of the amazing people that make them great. Those organizations continue to be great because they pass on knowledge and experience to future generations. Being a first-generation franchisee, I have been the beneficiary of this great organization passing its knowledge on to me for my entire career. As a result, I wanted my Convention to be about the people and our unique ability as a franchise organization to pass it on to the next generation. With that in mind, the Convention Committee and I came up with our theme “Power of the People.”

I thought I would be telling you that I would see you in the fall regional meetings, but this year is proving to be unique in many ways, and our normal meeting and social gathering events have been disrupted. I will tell you this: If your region has a meeting, Traci and I will be there! We are looking forward to meeting new franchisees and getting to know other great operators in KFC. Until next time, stay safe, protect your family, and sell more chicken! n

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NCAC REPORT

THE ‘NEW NORMAL’

By Tom Broome

W

ith all of the changes going on as a result of the pandemic, I thought rather than hearing from me, you’d like to hear from one of our fantastic agency partners. To that end, I asked Wieden+Kennedy Media to share some of the changes that have come about as a result of the pandemic. They have done a great job managing our advertising buys on a weekly (and sometimes daily) basis, helping us achieve maximum viewership and contributing greatly to our record sales growth. It’s an interesting read, and will certainly shape how we plan and purchase media in the “new normal.”

Cuebiq Mobility Index (7-day Rolling Average) 4.0

3.5

3.0

2.5

Media consumption trends in light of COVID-19 The COVID-19 pandemic has not changed basic human needs, like connection or the need to be entertained; it just forced us to adapt.

When meeting face-to-face was not an option, we saw a heavy increase in social media. Streaming services saw a boom like no other. With this major shift in media consumption, it is evident that brands need to have a clear digital presence and strategy in order to stay connected with todays’ consumers.

On March 13, the U.S. government declared the COVID-19 outbreak a national emergency. As society transitioned to quarantine, consumers had to make many changes to their daily lives: grocery shopping required face masks, states had to issue stay-athome orders (except for essential needs), and companies shifted their businesses online. Many people were hunkering down and moving around less frequently outside the range of their home.

We saw this through our use of Cuebiq’s proprietary Mobility Index (see figure 1).

Now the new norm, COVID-19 has not only had a massive economic effect, but it has heavily impacted how people engage with brands, media, and KFC.

Digital dominates consumers’ attention Adjusting to life indoors meant people needed to learn new ways Date to fight boredom; this has translated into consuming a wide range of content, from watching every show on Netflix to learning the Figure 1. Source: Cuebiq choreographed dance routines trending on TikTok. A TV series that would normally take an entire month 29 to get through now barely lasts a week, bringing a new 28.5 meaning to “binge watching.” Media consumption habits have changed 28 drastically across the 27.5 board (see Figures 2&3).

27 While people live in isolation, it makes 26.5 sense they lean on 01/05/2020 01/19/2020 02/02/2020 02/16/2020 03/01/2020 03/15/2020 03/29/2020 04/12/2020 04/26/2020 05/10/2020 05/24/2020 technology for a PERIOD connection to the rest Social - FB, Pinterest, Snap,TikTok, Twitter (US) Current Customer [%Yes] of the world. People 2.5

3/8/20 3/22/20 4/5/20 4/19/20 5/3/20 5/17/20

Figure 2. Source: YouGov 12 AKFCF Quarterly Summer 2020

Figure 3. Source: Tiger King, Netflix

Have you visited any of the following online brands in the past 30 days (through desktop/laptop, tablet or mobile phone)?

25

20

15 10

5

0 01/05/2020 01/19/2020 02/02/2020 02/16/2020 03/01/2020 03/15/2020 03/29/2020 04/12/2020 04/26/2020 05/10/2020 05/24/2020

Figure 4. Source: CNET, Snap Camera filters

TikTok (US) Current Customer [%Yes]

TikTok (US) Current Customer [%Yes] Age (Core): 18-34

TikTok (US) Current Customer [%Yes] Age (Core): 35-49

TikTok (US) Current Customer [%Yes] Age (Core): 50+

started spending more time on digital platforms: they now account for a 53-percent share of time Figure 5. Source: YouGov spent with media. In fact, 68 percent of adults reported they were spending an additional hour on social media per Overall usage and connection expands beyond just those within day as they turned to these platforms to feel close to others when your social circle, as proven by the spike in popularity for the this was not allowed physically. When people were not FaceTiming newest player in the digital space, TikTok (see Figure 5). The short, or turning themselves into a potato on Zoom calls, they leaned on user-generated video platform encourages viewers to consume Facebook for messaging (+50 percent usage) and video calling (2x and create their own content. Previously a Gen Z-dominant app, usage) to stay in touch with their friends and family. As seen in the spending life inside led Millennials to also flock to the platform. chart above, the current KFC consumer drastically increased their TikTok saw a 43-percent increase in daily active users by week 12 time on social media (see Figure 4). of quarantine! New “challenges” are issued daily that invite everyPGP_AKFCF-Quarterly_HalfPage_Ad_Landscape.pdf

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Summer 2020 AKFCF Quarterly 13

one to participate, providing consumers a space to get creative and escape from a harsh reality.

Entertainment thrives in new lean back environment Even in a pandemic, there is no escape like watching people get married to someone they’ve never seen before (“Love is Blind”) or Close to three in five Netflix users say they’re streaming Netflix more as a result of COVID-19 Does the coronavirus (COVID-19) outbreak impact whether you watch the following services more, less or the same? (% of US adults who said they used each of the following services in the last 12 months) Yes, I watch it more

No, it doesn’t have an impact

Yes, I watch it less

Netflix Hulu AT&T TV Now HBO Now Disney Cable TV Hulu with Live TV Amazon Prime YouTube Premium Premium cable channels (HBO, Showtime, Starz, or Epix) CBS All Access Apple TV YouGov/Variety | April 28-29, 2020

Figure 6. Source: YouGov

a deadly scandal between zookeepers over tigers (“Tiger King”).

Streaming consumption saw an increase in viewership week after week — according to Hulu, binge sessions (3+ episodes in one viewing) have gone up 41 percent, with an additional 18-percent growth in daily viewership. People are consuming more content than ever before, with an average of nine different titles per week on Hulu alone (see Figure 6).

TV remains strong In the first week of quarantine, all TV dayparts increased by 10 percent, showing that people are viewing more content at all hours of the day. Cable has seen great growth from March to mid-April, with adult 18-44 viewership up almost 50 percent year-over-year; there has, however, been a slight decrease each week since this spike, possibly due to the fact that people have been finding more things to do while adjusting to the quarantine life. With the absence of live sports, this is still an impressive growth to see in lieu of the many media options at the consumers’ disposal.

But what are people to do without their sports, festivals, and other events?

This is where more user-generated content platforms came into play. YouTube, Instagram, and Twitch have become the “window to the real world,” connecting people to the events they’re so dearly missing. From music festivals to celebrity interviews to workouts, live-streaming has taken the stage. Instagram alone saw its live stream usage increase by 70 percent during quarantine.

Have you visited any of the following online brands in the past 30 days (through desktop/laptop, tablet or mobile phone)?

66 65 64 63 62 61 60 01/05/2020 01/19/2020 02/02/2020 02/16/2020 03/01/2020 03/15/2020 03/29/2020 04/12/2020 04/26/2020 05/10/2020 05/24/2020 PERIOD Facebook (US) Current Customer [%Yes]

Figure 7. This helps explain why KFC was +26 pts above competitors in April! Source: YouGov

17 16 15 14 13 12 11 10 01/01/2014 01/01/2015 01/01/2016 01/01/2017 01/01/2018 01/01/2019 01/01/2020 PERIOD

Figure 8. The KFC brand index is the highest it has been since 2014 Source: YouGov 14 AKFCF Quarterly Summer 2020

Brands react to media shifts It’s no secret that brands have been hit pretty hard as quick updates had to be made across all media. KFC + W+K weathered the storm better than most because we were quick to react, and set up the business to meet increased demand for the bucket and other family meal options.

Being reactive meant: shifting out of sports commitments, cancelling media, moving weight to Q3, and updating creative with drive thru and delivery messaging. The team closely monitored performance across all media and focused on tried-and-true digital partners to maintain an efficient reach while still driving people to order KFC (see Figure 7).

KFC is doing well because of this reactiveness and the extra steps the brand has taken to ensure customers feel safe (see Figure 8).

While this situation is less than ideal, people are really absorbing their screens, where KFC has fine-tuned its presence in the past couple of months. These changes in media consumption habits were expected, but will provide great learnings for the brand moving forward; in a world where everyone is kept apart, we are now more connected than ever. n

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In the NEWS

IN THE CHICKEN SANDWICH WARS, KFC HAS A MAJOR ADVANTAGE

A

ccording to a recently published column from Adweek’s Richard Collings, as the competition to make the best fast-food chicken sandwich intensifies, KFC has a clear advantage over its rivals because of the number of restaurants.

With more than 4,000 locations in the United States, Collings said KFC’s new chicken sandwich should win out over its chief competitors Popeyes and Chick-fil-A, which each have about 2,500 locations.

If KFC ends up launching its new chicken sandwich nationally, that bodes well for the comparable sales of its restaurants in regions lacking competition, he wrote. KFC has leaned on its vast distribution network in the past to introduce trendy specialties to a nationwide audience, including Nashville-inspired chicken and waffles with hot sauce, as well as a fried chicken and glazed doughnut sandwich, which are offered periodically on a limited basis.

“We want to make certain our menu is distinct with craveable items,” said Andrea

Zahumensky, KFC’s CMO, in an interview with Adweek.

The idea is to bring such offerings to neighborhoods that don’t normally have access to them, she said. Menu innovation at KFC is a matter of keeping an eye on food trends and figuring out how to bring those trends to the masses. “We are constantly looking at our menu,” Zahumensky said, and are “never just satisfied we have what we need.

“When we looked at the chicken sandwich offering, our sandwich was just not the one to beat. That’s how we think of menu innovation in total,” she said.

As the self-proclaimed “fried chicken experts,” it’s important for KFC to have the chicken sandwich eaters prefer.

KFC is trialing the sandwich, as it does all new products, to ensure that it is setting up the brand and restaurants for success, Zahumensky said, not only with an eye on sales results, but also to find out what consumers and employees have to say about the prod-

KFC IS TESTING A NEW CHICKEN SANDWICH EXCLUSIVELY IN ORLANDO

K

FC is testing a larger, “more premium” chicken sandwich in Orlando. The company first delivered the new product to select frontline workers in the area, including teachers, auto mechanics, police officers, and others.

“We wanted a chicken sandwich that really lives up to our legacy as the fried chicken experts and, let’s face it, ours wasn’t the one to beat,” said Andrea Zahumensky, chief marketing officer, KFC U.S. “We knew an upgrade was necessary, so we painstakingly selected each ingredient to create a bigger, better, and more premium sandwich than ever. I think we’ve unlocked a chicken sandwich that won’t just compete — it’ll win with fried chicken lovers everywhere.”

The new sandwich is a 20 percent larger, double-breaded, extra crispy chicken filet on

16 AKFCF Quarterly Summer 2020

a new buttery brioche bun, with “the crispier, thicker pickles,” and “the Colonel’s real mayo” — and it’s offered in classic or spicy.

The KFC Chicken Sandwich is available at restaurants in Orlando, Winter Park, Sanford, Kissimmee, Clermont, Mount Dora, and Poinciana.

Source: Orlando Weekly

uct. The test will also help the chain to figure out how to strengthen its operations for a potential launch, and more importantly, whether to take the next step of rolling out the sandwich nationwide. Before the in-market test, KFC conducted extensive premarket testing, Zahumensky said.

“If I could tell you the number of sandwiches I’ve ate over the last few months,” she said. KFC knew early on that the fillet needed to bigger than its current offering.

But the more complicated element was figuring out the components. It wasn’t just a matter of finding the best bun, the best pickle and the best mayo, but also ensuring those elements complement one another, she said.

Zahumensky claimed the end product is the “best we’ve ever put out there.” While KFC is still waiting on the final results of the test, so far the initial response has been positive. “We’re feeling really confident our fans are really going to love the sandwich.”

Source: Adweek

Condolences: Mike Fulenwider, passed away on March 29 at the age of 72. “Big Mike,” as his employees knew him, owned a total of 108 restaurants in seven states and loved telling the story of how he got started in the KFC business as a fry cook at his father’s KFC in 1965. Mike was the CEO of Fulenwider Enterprises, which operates barbecue, as well as Taco Bell and KFC restaurants.

Our deepest condolences are extended to his wife, Joella; children (and children inlaw) Elle, Michael, Virginia, Eric, Jen, and Bobby; and all his grandkids and extended family.

YUM! BRANDS PLEDGES $3 MILLION TO ADVANCE EQUALITY AND SOCIAL JUSTICE

Y

um! is pledging $3 million to social justice efforts led by the NAACP Legal Defense and Educational Fund, American Civil Liberties Union, and nonprofits fighting for social justice in Louisville, Kentucky, which has been devastated by the deaths of Breonna Taylor and David McAtee.

Of this amount, $1 million will go to community and social justice organizations identified with input from RGMs and franchisees. “The last few weeks have taught us that what we, as individuals and a community, choose to do at this time will define the world in which we live. I’m proud that Yum! can be a force for positive change,” said Yum! CEO David Gibbs.

“But this is only our next step on the long path of change, and our actions will not stop here,” he continued. “We must commit ourselves to make a lasting and positive difference for our employees, frontline restaurant teams and communities. We must also pledge to create a future in which ALL people of every hue can live fully, thrive peacefully and unlock opportunities equally to enjoy their lives.”

Source: Yum!

Condolences: AKFCF Family member Penni Danielle Tinsley, age 43, passed away on April 4, 2020. Her father, George, is a franchisee in Florida. While in her mid-30s, Penni was stricken with a Parkinsonian disease known as Multiple Systems Atrophy. She fought a 13-year battle while maintaining a positive attitude. Even while fighting to recover her health, Penni founded two companies, including P2P – Crafts by Penni. The P2P stood faithfully for “Parkinson’s to Praise.” Our deepest condolences to the entire Tinsley family.

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Summer 2020 AKFCF Quarterly 17

In the NEWS

BEYOND MEAT ADDED TO KFC, TACO BELL, AND PIZZA HUT IN MASSIVE DEAL

Y

um! is partnering with Beyond Meat to put meat substitutes on the menu.

While initially this will be exclusive to the Chinese market, it’s more than likely the positive results there will translate to the U.S. and the rest of the western world, much like the Beyond Meat KFC tests in the United States have done.

“We see great potential for the plant-based meat market in China,” said Joey Wat, CEO of Yum! China. “This latest introduction across KFC, Pizza Hut, and Taco Bell brands is expected to capture valuable consumer feedback across different regions in China.

It will enable us to optimize flavors and processes and help assess the potential for larger-scale rollouts in the future. This exciting development is the latest iteration of our on-going commitment to introduce new and innovative products to Chinese consumers.”

“We are proud to further our partnership with the Yum! family of brands by launching

Beyond Meat offerings at select KFC, Pizza Hut, and Taco Bell locations in mainland China,” said Ethan Brown, Beyond Meat Founder and CEO. “I’m excited about what this launch means in terms of together being of service to the Chinese consumer as they seek out the nutritional and environmental benefits of our delicious plantbased meats. More generally, our partnership with Yum! China and the iconic brands of KFC, Pizza Hut, and Taco Bell is an encouraging and important milestone toward increased accessibility to our plant-based meat globally.”

The KFC Beyond Burger will provide Chinese consumers an exciting and delicious plant-based twist on the iconic beef burger patty. Pizza Hut also is launching its first-ever burger offerings by testing a combo set

that includes both a Beyond Burger and an Australian sirloin steak burger at six stores in Shanghai. Meanwhile, Taco Bell will offer a taco made with the plantbased Beyond Burger patty at three stores in Shanghai.

In April 2020, KFC tested plant-based chicken nuggets at select restaurants in Shanghai, Guangzhou, and Shenzhen, while in December 2019, Taco Bell tested a plant-based pork taco at select locations in Shanghai.

KFC, Pizza Hut, and Taco Bell are among the first Western restaurant brands to introduce a plant-based meat product in China and with this test, they are joining their global counterparts in helping to popularize plant-based meat products.

Source: Vegan News

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

QSR

Quick Serve Restaurant

AKFCF Association of Kentucky Fried Chicken Franchisees

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

REC

Restaurant Economics Committee

ARL

Above Restaurant Leader

RGM

Restaurant General Manager

KFCC

ASAP

American Showman Asset Program

RMI

Restaurant Margin Improvement

AUM

Assistant Unit Manager

ROCC Restaurant Operations Compliance Check

BOGO

Buy One Get One

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

ROI

Return on Investment

RSC

Restaurant Support Center

BOH Back-of-house

Kentucky Fried Chicken Corporation

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

DMA

Designated Marketing Area

FA (Or F/A) Franchise Agreement

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

FIT

Food Innovation Team

OEC

Operations Excellence Committee

FSC

Food Safety Consultation

PAC

Political Action Committee

VOC Voice of the Customer (formerly CBCC)

GAC

Government Affairs Committee

POP

Point of Purchase

YUM

Yum! Brands

POS

Point of Sale

YRI

Yum! Restaurants International

18 AKFCF Quarterly Summer 2020

National Marketing Subcommittee

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

Territory Operations Leader

TRP

Targeted Rating Point

DID YOU KNOW?

Condolences:

Kentucky Fried Chicken was first sold in buckets in 1957.

The Colonel mixed his first batch of special herbs and spices on back porch.

NASCAR legend Dale Earnhardt, Jr. was once featured on KFC buckets for the 2004 Indy 500.

Franchisee Don Edmondson, 84, passed away on April 28 at his home in Forrest City, Arkansas. He opened his first KFC restaurants in the 1970s with partner Wallace Fowler, and would later open a string of Taco Bell locations with Dick Cahill. In addition to being a franchisee, Edmondson was known as philanthropist who championed architecture and cancer research.

Don and his wife, Ellen, who passed away last year, had set up charitable trusts for the University of Arkansas in Fayetteville and the Winthrop P. Rockefeller Cancer Institute.

Our deepest condolences to the Edmondson family and friends.

Proudly supplying KFC

Don Alwood | donald.alwood@welbilt.com | 989-205-6739

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Summer 2020â&#x20AC;&#x192; AKFCF Quarterlyâ&#x20AC;&#x192;19

GAC Report

COVID-19 Will Leave Its Mark On The Ballot Box

20 AKFCF Quarterly Summer 2020

By Amy Agenbroad

L

ess than halfway through the year, 2020 already has brought significant challenges locally, nationally, and globally. The pandemic has unified nations to combat the virus that has created the unprecedented times we are in. Below is a synopsis of how COVID-19 has impacted the U.S. thus far and what this means for the upcoming presidential election.

Arguably the most exciting election year yet Without a doubt, COVID-19 will leave its mark on the ballot box this coming November. The pandemic has disrupted polls nationwide by changing voters’ status quo. This fall, nationwide votes will reflect just how important local elections are, as the coronavirus response wasn’t limited to the Federal government. Although incumbents traditionally have had an advantage over their competitors, it remains to be seen how voter perception will be shaped by COVID-19 amid more dire economic conditions such as a drastically sharp increase in unemployment claims, slower GDP growth, and business and consumer downfalls. In response, incumbents have forged a dramatic economic response that pumps up investments into industries across their local communities, but the

Summer 2020 AKFCF Quarterly 21

question will be whether this election is offset by state shutdowns to slow the spread of COVID-19.

The presidential election already has been filled with ups, downs, and everything in between. After the depletion of a large and diverse Democratic field, former VP Joe Biden has emerged as the candidate. By April 15, he already had been endorsed by every major 2020 Democratic primary candidate, as well as former President Barack Obama and former Secretary of State of Hillary Clinton.

Presidential election years already come with immense challenges, but how will an economic recession affect the process?

Economic recessions are notorious for ending members’ reign at state, federal, and presidential levels. Past Presidents Bush Sr., Hoover, Carter, Taft, and Ford all ran for re-election during a recession that ended their presidencies in defeat. Throughout a 10-day span in April, voters’ faith in Trump to handle the economy dropped 3 percent whereas Biden’s increased by 15 percent.

However, as an incumbent, Trump has an advantage in resources.

In the House, Cook Political Report forecasts 22 toss-up races. House races to watch are Kendra Horn (OK-5), Joe Cunningham (SC-01), Max Rose (NY-11), Anthony Brindisi (NY-22), Ben McAdams (UT-04), Andy Kim (NY-03), Xochitl Torres Small (NM-02), Jared Golden (ME-02), Antonio Delgado (NY-19), and Lucy McBath (GA-06). The Senate has five toss-up races: Sens. Martha McSally (R-AZ), Susan Collins (R-ME), Cory Gardner (R-CO), Thom Tillis (R-NC), and Steve Daines (R-MT). November’s election may shape up to be a tight race

Throughout a 10-day span in April, voters’ faith in Trump to handle the economy dropped 3 percent whereas Biden’s increased by 15 percent.

However, as an incumbent member, Trump has an advantage in resources. for control of the Senate with Republicans currently holding a six-seat majority and as many as five races considered toss-ups.

How has COVID-19 affected ‘US’ On January 21, the first case of COVID-19 was confirmed in the United States. Ten short days later, a public health emergency was declared, and on March 13 a national emergency was declared by the President.

By March 26, the United States became the most infected nation with 2,000 more cases than China. On April 2, there were more than one million cases confirmed worldwide and by April 11, America had

the highest death count. In response to the spread, local government started imposing stay-at-home orders and shutting down various businesses to slow the spread. Four days later, U.S. citizens started protesting stay-at-home-orders, and the White House issued reopening guidance on April 16 with some states following its lead on April 20.

Then on April 24, Georgia was the first to reopen some businesses, including gyms, tattoo parlors, hair salons, and others.

Not limited to a responsibility of the Federal government, states took early action to stop the spread of COVID-19, and California Gov. Gavin Newsom was the first to

Not only has the coronavirus caused a national emergency, but it has triggered chaos within the 2020 national election process. Due to COVID-19, 17 primary contests have been delayed throughout the country, and 16 states have active lawsuits regarding voting laws.

22 AKFCF Quarterly Summer 2020

issue a shelter-in-place order. Forty five of 50 U.S. states put in place a full or partial stay-at-home order and some states are now in the early phases of reopening. The restaurant industry has suffered the most significant sales and job losses since the outbreak. As of June, more than 8 million restaurant industry employees have been furloughed or laid off, and $120 billion in restaurant sales were lost. Across industries, unemployment claims suddenly spiked, but have been slowed in recent weeks. As of May 14, more than 36.5 million people have filed for unemployment in the prior eight weeks. The United States is predicted to lead the global decline in gross domestic product by accounting for 31 percent of the world’s economic contraction. The International Monetary Fund (IMF) predicts the global economy will contract by 3 percent in 2020, the most in almost a century.

Before the outbreak began, the IMF estimated a 3.3-percent global growth in 2020.

The U.S. GDP contracted by 4.8 percent annualized in the first quarter alone and many economists expect the second quarter contraction to be even more severe.

Not only has the coronavirus caused a national emergency, but it has triggered chaos within the 2020 national election process. Due to COVID-19, 17 primary contests have been delayed throughout the country, and 16 states have active lawsuits regarding voting laws. There is a push for voting by mail and the campaign process remains unknown.

funding for federal agencies such as the CDC, FDA, NIH, SBA, and USAID, as well as funding for additional COVID-19 tests and loan subsidies for small business. Phase II, negotiated by Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi was signed into law by President Trump and primarily included free COVID-19 testing, two weeks of paid sick and family leave, increased federal funds for Medicaid and food security programs, and increased unemployment benefits.

Phase III, provided the largest amount of relief with the release of nearly $2 trillion in economic aid. The AKFCF Government Affairs team, along with our partners at Yum! Brands and others worked diligently to ensure franchisees were supported in the bill. Below are items included in phase III that benefit franchisees as laid out by the International Franchise Association (IFA).

Paycheck Protection Loans: Small businesses, including franchises, can apply for a

Congress returns to the ‘new normal’ On Monday, May 4, the Senate returned to Capitol Hill and back to the “new normal.”

With health and safety remaining a top priority, the first-ever social distancing hearings began on May 6. The Senate Banking Committee rearranged their hearing room to abide by the current social distancing guidelines, which currently are set at six feet apart. The hearing was a hybrid of Senators who wore masks and attended in person as well as via videoconference. It is likely this will be hearing protocol for the foreseeable future.

In response to COVID-19, the Trump Administration and Congress enacted three phases to aid in nationwide economical relief. Phase I primarily provided increased

Summer 2020 AKFCF Quarterly 23

new 7(a) loan program that is 100-percent guaranteed and waives collateral requirements, which will speed up processing by lenders. Loans may be forgiven if the borrower maintains the average number of full-time equivalent employees. Updated guidance can be found at www.treasury.gov.

Employee Retention Tax Credit: You may be eligible for a refundable payroll tax credit for 50 percent of wages paid by employers to employees during the COVID-19 crisis. The credit is available to employers whose (1) operations were fully or partially suspended due to a COVID-19 related shut-down order, or (2) gross receipts declined by more than 50 percent when compared to the same quarter in the prior year.

Economic Injury Disaster Loans: This provision expanded eligibility for access to SBA’s Economic Injury Disaster Loans (EIDLs). The SBA will waive any personal guarantee on advances and loans below $200,000 on these loans made in response to COVID-19 before Dec. 31, 2020.

Advanced Tax Credits for Paid Leave: The bill allows employers to receive an advance tax credit for Required Paid Sick Leave (under the Families First Coronavirus Response Act) from Treasury instead of having to be reimbursed on the back end.

Delay of Payments of Employer Payroll Taxes: The provision allows employers and self-employed individuals to defer payment of the employer share of the Social Security tax they otherwise are responsible for pay-

ing to the federal government with respect to their employees.

Qualified Improvement Property: The provision enables businesses to write off immediately costs associated with improving facilities instead of having to depreciate those improvements over the 39-year life of the building. The provision, which corrects an error in the Tax Cuts and Jobs Act, not only increases companies’ access to cash flow by allowing them to amend a prior year return, but also incentivizes them to continue to invest in improvements as the country recovers from the COVID-19 emergency.

Net Operating Loss Modifications: The provision relaxes the limitations on a company’s use of losses. Net operating losses (NOL) are currently subject to a

AKFCF – Political Action Committee (PAC)

The AKFCF created a PAC to make sure our voices are heard in Washington, D.C. The AKFCF Government Affairs Committee and the AKFCF PAC Board of Directors would like to thank the franchisees listed below for their contributions to the AKFCF PAC. Each quarter, we list the names of the franchisees who have supported the PAC at time of print as a token of our appreciation. This list is all the latest contributions, broken down by region. We encourage you to please join your fellow franchisees and support your AKFCF PAC. For information on how you can become involved, or if you don’t see your name and should, please contact Leslie Sharp, treasurer of AKFCF GAC/PAC at Lcsharp4133@gmail.com.

Great Midwest Joan Bowling Alessio DiFranco Timothy Fitzpatrick Glen Flewelling Anne McKenzie Goodnight Noah Hommerding Lesley Hottinger Mark Lambos Craig Lee Ladonna Lewis Afzal Lokhandwala Kirstin Mana Lynn Mayer James McKenzie James Mikula Diana Myers Kaushik Patel Alan Salts Steven Saunders Kevin Schlutz Sally Shane Douglas Smith Justin Stewart Amanda Urquhart Shelly Vorrath Scott Vorrath Nanette Walker Peter Wasilevich

24 AKFCF Quarterly Summer 2020

Robert Widder Adam Wright Northeast Ray Aley Cheryl Aley Bryan Barrett J. Michael Barrett Tony Cameron Tommy Cecconi Keith Cole Frederick Gallant Sherry Houston Michael Houston Syed-Nadeem Kirmani Donald Lopes Robert Rianna Alex Rosenblum Eugene Skowronski Larry Starkey Northwest Rita Basra Lilellen Buckner Robert Carle Manuel Galhandro Ralph Harman Jeannie Harman Brett Harris Fred Jackson

Jamie Jackson Marvin and Cindy Jorgensen Anne Mehl Steve Prendiville Todd Stewart Amin Vakil Calvin White Southeast Bill Byrd Charles Clark Keith Coward Eric and Sandra Felker Austin Felker Kim Fowler Chris Fowler Michael Galloway Tim Harris Howard Killgo Doris Lewis James and Angela Ogle Eric Overcash Vic Peeples Terry Rogers Andy Rosen Dan Rosenbalm Linda Rosenbalm David Ross Leslie Sharp Marcus Shelton

Bill and Bonny Shelton Kelly and Jay Shoffner Mallory Shoffner Quintero John (Jack) Sims Jeff Wallace Charles (Tim) West Gary (Steve) West Richard (Dick) West William (Bill) West Daniel Yagoda Southern California Frederic Baker Amjad Chaudhry Shahid Chaudhry Piyarali Hashim Russell May Patricia McBrayer Lonnie Noble Raziel Valiente Southwest Robert Alred Debra Ashmore Sheila Boespflug Andie Cremer Rajeev Jain Rajesh Patel Doyle Sanders Kelli Spring

taxable-income limitation, and they cannot be carried back to reduce income in a prior tax year. The provision also temporarily removes the taxable income limitation to allow an NOL to fully offset income. These changes will allow companies to utilize losses and amend prior year returns, which will provide critical cash flow and liquidity during the COVID-19 emergency.

Retirement Accounts: Individuals may take penalty-free distributions up to $100,000 from qualified retirement accounts for coronavirus-related relief. Additionally, income attributable to such distributions would be subject to tax over three years, and the taxpayer may recontribute the funds to an eligible retirement plan within three years without regard to that year’s cap on contributions. Existing SBA borrowers in 7a, 504 or other programs may delay loan payments for six months to provide relief to small businesses negatively impacted by COVID-19.

Treasury Fund for Larger Businesses: The bill authorizes $454 billion for loans,

loan guarantees, and investments in support of facilities established by the Federal Reserve to support lending to eligible businesses, states, or municipalities. Via the Federal Reserve, the $454 billion could be leveraged significantly, potentially providing up to $4 trillion in financial support.

The bill defines “United States businesses” as businesses “that are created or organized in the United States or under the laws of the United States and that have significant operations in and a majority of its employees based in the United States.”

Thank you!

Thank you to the all those who have donated to the 2020 AKFCF PAC. Your donation allowed AKFCF to speak loudly to the administration and congress during the negotiations of all three phases of the stimulus relief packages. The support you provided helped advance the issues of franchisees, especially during these hard times.

We encourage you to support AKFCF PAC

if you haven’t already to help continue our strong voice throughout the administration and congress.

Stay involved, donate to the AKFCF PAC 2020 is a landmark election year and the time to act is now. The AKFCF PAC needs your help raising funds for the campaigns of the 116th Congress.

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

You may make your 2020 donation online by visiting our portal on the AKFCF website in the Government Affairs tab.

For more information, please contact your regional GAC representative or Amy Agenbroad of Polaris Consulting, LLC (aagenbroad@polariswdc.com). n

Summer 2020 AKFCF Quarterly 25

Yes, There are Bright Spots Post-Pandemic

By Jim Sullivan, CEO Sullivision.com

T

he economic devastation and health crisis that the COVID-19 pandemic has tendered on our nation will be long-felt by its citizens, government, and industries. At this early stage, there’s no way to foretell exactly what the future holds for our industry, but

what’s for sure is that the other side of this pandemic will look very different.

However, there are some bright spots to uncover and lessons to be learned from this crisis that will make us better, stronger, more resilient. We’ve fought great odds before. Here are several opportunities that COVID-19 exposed; we can leverage them to make our KFC’s stronger, better, and brighter.

26 AKFCF Quarterly Summer 2020

Summer 2020 AKFCF Quarterly 27

Revealing a new critical metric

We now have an incredible opportunity to create a better version of KFC; a bolder, more agile and resilient organization that will be stronger than the previous version.

Every single foodservice operator in the United States is now dealing exclusively in a consumer confidence metric called TRUST. It supersedes the importance of your menu, brand, design, and culture. Now, more than ever, customers will scrutinize sanitation and the cleanliness of our KFC’s and our people from the drive-thru window to the tabletop to the bathroom door handle. If customers lose trust, we lose customers. Let your customers know (and see) the daily steps you’ve taken to insure their health and safety — like temperature checks of all team members (if you are conducting them), masks, gloves, routine sanitizing, constant inspection, and training.

Coalescing customer communities

The pandemic really demonstrated the advantage that operators with robust customer communication strategies and active customer loyalty programs had over companies whose attempts at gathering customer data was haphazard and scattered. Operators with vigorous loyalty programs were able to communicate quickly, clearly, and consistently with their customers through the crisis. This allowed them to inform, excite, and energize their customer base directly around the availability of drive-thru, for instance. Operators lacking this kind of data and connection were left with two options: handwritten signs on their doors or scattershot social media posts.

Talent pool expansion

A huge silver lining of the pandemic is the expansion of a talented labor pool. There are now many more talented hourly team members and gifted manager and multiunit managers available industry-wide due to operator furloughs or failures. This might be the best time in a decade to seek out and hire fresh talent and experienced people seeking new opportunities.

Question and improve everything

Volume hides a multitude of operational sins. But now we have a rare reset opportunity to assess and improve all the inefficiencies (and missed opportunities) of scale, process, and people development that were antiquated and previously hardwired into our brand and systems. Most importantly, we have a rare opportunity to rethink and reset the ways we treat our most-appreciating assets: our team members. This pause will hopefully spur leadership teams to treat team members with more dignity, care, respect, empathy, and equity. And that goes double for our exhausted unit managers. High employee turnover is not the result of enlightened leadership and engaged teams.

Train for crises

If you try to manage a crisis without a strategy in place, you’ll constantly be in defensive mode — exactly where you don’t want to be. COVID-19’s onset has taught us that we must now continually train for crises, and do it the way airline pilots do at Flight School: Consider every future possibility and develop response scenarios for the worst that can happen. Create checklists of actions to take (review and assess your actions from March 15 to now).

28 AKFCF Quarterly Summer 2020

Bet on speed and ease

Not to put a smiley face on a bad situation, but you have to be impressed by how quickly so many foodservice operators adapted to the crisis — pivoting, innovating, and sometimes creating brand new businesses. They thought big, tried small, adjusted on what they learned, and got going. The operators who stalled in place suffered from paralysis by analysis. Victory may not always go to the swift, but that’s the way to bet. And finally, if you’re struggling to define exactly how customer behavior will change in the long run post-virus, consider this truism: People will always choose whatever behavior is easiest. End of story. Make a detailed list of all the things customers might do and then choose which behavior(s) would be easiest for them to do. Bet your future strategies on that one.

We now have an incredible opportunity to create a better version of KFC; a bolder, more agile and resilient organization that will be stronger than the previous version. The best place to start — as it always has been — is by developing and deploying a creative and smarter customer care program and team member talent strategy now. n Jim Sullivan is the CEO of Sullivision.com and author of the bestselling books Fundamentals and Multiunit Leadership (Amazon), and the Amazon bestselling audiobook of Multiunit Leadership at Audible.com. Companies using Sullivision’s programs, products or services include The Walt Disney Company, Panera, Texas Roadhouse, Starbucks, Marriott, Walmart, and KFC. Join the daily conversation with Jim’s 400,000 social media followers at LinkedIn, Twitter, and YouTube. He’s available for Virtual Meetings with your leadership team or conference.

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Helping franchisees successfully navigate every opportunity and challenge To find out how we can help you with your business, visit auspexcapital.com or call Christopher Kelleher at (562) 424-2455

Summer 2020 AKFCF Quarterly 29

Putting People First Is The Name of KFC’s Game

By Elizabeth Edrington, KFC Foundation Communication Coordinator

The time to show our huge heart as a KFC family is now.

W

e are a caring, heart-led, people-first brand. We do the right things, the right way. We recognize and celebrate all people. We provide opportunities for team members to be their best selves, to make a difference, and to have fun. We help restaurant employees grow and achieve their goals. We support our people when the going gets tough, in every way we can.

And it matters. It matters to our team members, of course, but it also matters to your customers — and that’s become even more apparent during the pandemic.

30 AKFCF Quarterly Summer 2020

Summer 2020 AKFCF Quarterly 31

According to the 2020 Edelman Trust Barometer: Brands and the Coronavirus, “A stunning 90 percent of our survey respondents want companies and brands to do everything they can to protect the well-being and financial security of their employees and suppliers. ...The penalty for companies that put profit ahead of people is severe, with 71 percent of people saying that this will erode their trust in a business forever.”

The KFC Foundation’s mission is to care for restaurant employees, and we knew we needed Continuing to support your team members during the to show up for them now COVID-19 pandemic Ever since the onset of the COVID-19 more than ever during pandemic, KFC Foundation board members and staff have been continualthis crisis. ly thinking of ways to support KFC team

members in relevant and meaningful ways (in addition to our four, ongoing charitable assistance programs). The KFC Foundation’s mission is to care for restaurant employees, and we knew we needed to show up for them now more than ever during this crisis.

Resources for restaurant employees Our first course of action was to compile a list of existing resources that could be

32 AKFCF Quarterly Summer 2020

helpful for restaurant employees, with the goal of franchisees, ARLs, RGMs and fellow KFC employees sharing this with any team members in need of some assistance. We housed dozens of links to mental health resources, applications for financial aid, information on food banks, and more on kfcfoundation.org, so help could easily be found and accessed by anyone in need.

Feed the Force: Grocery Assistance Fund Thanks to the generosity of franchisees through a $250,000 donation from the NCAC, paired with a matching $250,000 donation from the Yum! Foundation, we were able to make a big impact across the KFC system through Feed the Force: KFC Foundation Grocery Assistance Fund — granting $100 Visa eCards to 5,000 restaurant employees across the U.S. to help with grocery expenses and to make their lives a little easier.

Here are a few of the restaurant employees we were able to help through the KFC Foundation Grocery Assistance Fund: Anthony is a young adult who has been thrown into the role of breadwinner and caretaker to his family when his mother con-

1 MILLION+ AWARDED

$

to KFC team members in REACH Grants so far this year,

AND WE’RE NOT FINISHED YET. Thanks to the generosity of franchisees through a $250,000 donation from the NCAC, paired with a matching $250,000 donation from the Yum! Foundation, we were able to make a big impact across the KFC system through Feed the Force: KFC Foundation Grocery Assistance Fund

tracted COVID-19. He worries daily about the health and well-being of his mother while also keeping his siblings fed, from afar, since he also can’t be around any of them while working.

Mistie works as shift lead for the restaurant. She has many health issues, which limits the number of hours she can work. Her husband was laid off from his manufacturing job at the beginning of March and was disqualified from drawing unemployment. Mistie’s is the only income the family currently has. She and her husband have two children who have been home from school since the beginning of March as well. She has related to me that they are struggling to keep food on the table. She is a loyal employee and is valuable to the team.

Next REACH application opens Aug. 3

KFCFoundation.org ©2020 Kentucky Fried Chicken Foundation, Inc. The Kentucky Fried Chicken Foundation is a non-profit, 501(c)3 organization.

Employees must meet eligibility criteria for each program.

Summer 2020 AKFCF Quarterly 33

Feed the Force recipients

I am recommending Pedro because in his family of eight, he is the only one working, and he is giving all his checks to feed his family and help with rent. He is a great employee and I really think this will help with food for his family, put a smile on all of his brothers and sisters’ faces, and make his parents even more proud of him. Thank you for all your blessings, KFC Foundation.

Thank you to…

Lori Eberenz and Staci Rawls for leading the effort to secure the funds and gain alignment on the grocery assistance fund as a way to help deserving team members in need of some financial assistance during this time.

Huey Lam, principal IAM architect for Yum! Brands, and his team for their creativity and development skills in creating a

database and review dashboard where we could verify, review, and approve recommendations and grant the eCards. We truly would not have been able to do this without Huey and his daily assistance.

All of the ARLs and FBCs who helped us get the word out and drive recommendations in a week’s time, confirm employment, fix email address issues and more. You know who you are!

Our amazing group of 16 volunteers from the RSC who spent hours on hours working in the database to help us verify employment, review recommendations to ensure legitimacy, and individually send 5,000 eCards to selected recipients.

All of YOU for your big hearts, support, and donation through the NCAC which made this grocery assistance fund possible!

We truly are a KFC family.

KFC Family Fund COVID-19 has unfortunately brought devastating deaths into the KFC family. In these tragic situations, the KFC Family Fund has been able to step in and assist with funeral expenses. The money certainly doesn’t take away the pain from these losses, but we are sure it helps alleviate some of the financial stress for the grieving families.

Yum! Brands Foundation Global Employee Medical Relief Fund

Feed the Force recipient

34 AKFCF Quarterly Summer 2020

We’ve worked hand-in-hand with the Yum! Foundation to get the word out about the Global Employee Medical Relief Fund, refer affected employees to the fund, and verify employment for the team members who applied for the one-time relief grant.

REACH Educational Grant Program With so many individuals and families across the country experiencing financial strains due to the COVID-19 pandemic, we realized we had an opportunity to help even more restaurant employees with their college tuition expenses for the fall semester. The KFC Foundation Board agreed to expand our REACH Grant budget to award more grants than originally planned, providing 539 team members with nearly $1.2 million in college tuition assistance. Check out the full list of recipients from the spring application period on TeamKFC and in the next issue of the AKFCF Quarterly. And don’t forget, there’s a second chance for eligible KFC restaurant employees

to apply for the REACH Grant this year — the fall application period opens August 3.

Rise with GEDWorks and MyChange Our two other ongoing charitable assistance programs — Rise with GEDWorks and MyChange — have continued full speed ahead. We’re excited to share some updates we’ve made to our Rise with

GEDWorks program in our other article in this issue, on page 48. Stay tuned later this year to hear how we’re planning to take our personal finance program to the next level!

We are so appreciative to all of the KFC Franchisees who participate in our Cole Slaw Donation Program and allow us to continue caring for their restaurant teams. Thank you for your continued support. Reach out to us anytime via foundation@kfc.com. n

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Summer 2020 AKFCF Quarterly 35

WE ARE

KFC Strong Finding Strength in the COVID-19 Storm, How KFC Strong Came to Be

By Stefanie Hess, Field Training Leader, KFC HR In this time of unrest, when people may be feeling alone, you can be certain of one thing: Across our great nation, we are KFC Strong!

To all our teams, in all our towns, this page is dedicated to you.

In this place, we will share our heartfelt gratitude and deepest thanks. Please join us in showing our appreciation and submit photos and messages to share.

A

s the COVID-19 situation quickly escalated in the U.S., KFCC was committed to keeping its restaurant teams informed and safe. We also needed to unite as a KFC family and show that, together, we were going to get through this.

I’m Stefanie Hess, a founder of the Facebook group, and I’m here to tell you a little about the journey of bringing KFC Strong to life.

Summer 2020 AKFCF Quarterly 37

First, let’s talk about the timeline.

For a brand our size, any new initiative takes time. There’s a standard process to follow and several people who need to come together to make it happen. COVID-19 changed that. We all collaborated around the clock and within four days, we had gone from concept to launch! The group was mapped out, members were invited, and we spread the word throughout our communication channels. KFC Strong was live!

Hero donation How on Earth did all of this happen so quickly? This was possible due to a quick-acting group of cross-functional collaborators and strong support from our leadership team. Special thanks to Monica Rothgery, KFC COO; Karen Adams, KFC director, Field HR; Brittany Buzick, KFC attorney; Madalyn Klika, internal communications an-

In the beginning, the intent of this page was truly to bring people together. The world was in crisis mode and we wanted a place where every member of our KFC family — from team member to franchisee — could turn for the bright spots. We knew our franchise community would answer the crisis of COVID-19 much like most of us do when met with stress and loss — with food!

38 AKFCF Quarterly Summer 2020

alyst; Michelle Lovan, senior manager, Internal Communication; Roberto Felix, senior analyst, Multimedia; and Kasey Ryan, manager, Public Relations — all were instrumental in supporting and creating this group with me.

In the beginning, the intent of this page was truly to bring people together. The world was in crisis mode and we wanted a place where every member of our KFC family — from team member to franchisee — could turn for the bright spots. We knew our franchise community would answer the crisis of COVID-19 much like most of us do when met with stress and loss — with food! We wanted a platform where organizations from all over the United States could show how they were feeding their community, a place to show our huge heart for people.

Like most social media movements, KFC Strong started out slowly. Two things are essential for social survival, followers/ members and content. To tackle membership, I got a jumpstart on adding group members in a bit of a grassroots way and went through my friends list inviting every member of the KFC family I was connected to. I sent out emails, texted the link, anything I could do virtually to spread the word myself and then we went full force with advertising on TeamKFC, in TeamKFC News, and in What’s Important Now. The Friday after the official launch just happened to be my birthday, and I knew exactly what I wanted! I posted a big ask for a special gift — 1,000 group members

by Monday. It was a big ask because, at the time, we only had a few hundred members, but boy did they deliver and, by Monday March 30, we had more than 1,000 members strong!

After hitting our membership milestone, it was time to focus on content. Even before the announcement of the One Million

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Pieces of Chicken Giveaway, organizations were donating to their local hospitals, elderly care facilities, and to first responders. The content of these donations was out there, but it was being posted by individual organizations on their pages.

Every morning, I woke up data mining pages of organizations I followed and started following several new pages in search of donation posts. After a couple of weeks, several shares from franchise pages, and more publicity on TeamKFC, people began submitting posts!

What started as a slow trickle of posts turned into a wonderful flood of the most heartfelt and generous gestures most of us have ever seen captured in one place. KFC Strong had turned into a celebration of the human spirit. Every day there were posts of

deliveries to doctors and nurses, firefighters, and police officers. There was a focus on providing meals to essential workers such as mail carriers, vets’ offices, construction workers, and other restaurant employees.

Organizations were even inspired to start entire giving initiatives. KBP kicked things off with their “KBP Days of Giving,” Whitefords Inc. focused on free kids’ meals with their “30 Days of Giving,” and in support of one of the hardest-hit areas of the country, Nadeem Kirmani set his sights on supporting New York City hospitals. The help you were giving to your communities was weaving a tapestry of hope in newsfeeds across the country. From team members in Texas, to managers in Maryland, AKFCF President Jim McKenzie in Indiana, to KFCC President Kevin Hochman in Kentucky, people were seeing it all.

In the thick of the big donation posts

What started as a slow trickle of posts turned into a wonderful flood of the most heartfelt and generous gestures most of us have ever seen captured in one place. KFC Strong had turned into a celebration of the human spirit.

Every day there were posts of deliveries to doctors and nurses, firefighters, and police officers. There was a focus on providing meals to essential workers such as mail carriers, vets’ offices, construction workers, and other restaurant employees.

40 AKFCF Quarterly Summer 2020

JRN shoe donation

rolling in, the small gestures and one-off moments were making big impacts as well. Team members started nationwide trends by writing notes of encouragement to guests on to-go bags and thank you messages on the inside of catering boxes.

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Some took those notes to an even bigger level and made posters to accompany their donations. We saw team members reaching out with curbside delivery to truck drivers who couldn’t use the drive thru. Guests were making masks for teams and those receiving donations were sending in thank you notes. We saw restaurants attempting to brighten spirits daily with things like spirit days, but nothing brought the fun quite like the TikTok challenges.

While everyone was clearly focused on the communities outside their four walls, we also got to see just how strong our teams

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Summer 2020 AKFCF Quarterly 41

While it started out as a way to bring us together in a time of crisis, KFC Strong’s goal today is simply to bring us together. We’ve shifted from showcasing acts of good to showcasing Mother’s Day sales milestones, 2020 graduates, and recognition with the weekly posting of the KFC Strong Award. were in their restaurants. KFC Strong showcased our families supporting each other in incredibly moving ways. We saw managers bringing in household essentials like canned goods, toilet paper, and cleaning products for their teams to take as needed. Organizations were providing dinner to their employees by sending home family meals with their workers. Groups brought in items for kids and made gift bags for parents to take home to their little ones. As the global crisis continued, we saw leaders lending financial support with organizations like Graja, Inc., and Larry Starkey who provided gift cards to each employee, JRN gave each team member new work shoes, and JRS gave all of their team members a $2/hour raise.

People began direct-messaging me, texting me, and sending me emails expressing their appreciation for the existence of KFC Strong. The group was bringing people joy during a time when joy was in short supply.

Celebrating a sales record in Texas

42 AKFCF Quarterly Summer 2020

KFCC’s leadership team was viewing this page daily and eagerly recorded messages of thanks to share with their KFC family.

Posts were providing smiles, tears, and sometimes both. I think it’s safe to say there were some posts that made such an impact, we still think about them to this day.

For me, the very first spark of KFC joy, the first moment I thought to myself, we’re going to be OK was April 1 when I read Jacob Eastman’s words, “When your team beats last year’s sales with only drive-thru and open three less hours a day …”

I’ll never forget reading the post from Sophie Young, area coach in Norfolk, Virginia, where an RGM heard about a single mother losing her job and offered to hire her!

If you’d ask me what my biggest surprise in all of this has been, it’s what KFC Strong has grown into. Two small words and one Facebook group has inspired thousands, caused the creation of an entire line of merchandise (in partnership with Barco, where $1 from each sale goes to the KFC Foundation), moved KFCC to create multiple videos of thanks, and has our leadership team highlighting posts at the beginning of every call. Kevin Hochman features his favorite posts at the start of every Town Hall, Monica Rothgery does “shout outs” to posts at the start of her RGM calls, KFC Strong was even featured on Yum! global calls with David Gibbs … twice! KFC was the first Yum! brand to successfully roll out a Facebook group and

Hero donation

had both Taco Bell and Pizza Hut calling to learn from us!

While it started out as a way to bring us together in a time of crisis, KFC Strong’s goal today is simply to bring us together. We’ve shifted from showcasing acts of good to showcasing Mother’s Day sales milestones, 2020 graduates, and recognition with the weekly posting of the KFC Strong Award.

Since its humble beginnings, our group has grown to close to 3,000 members, has cultivated 1,391 posts, 3,534 comments, and over

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41,000 reactions. We’ve been through a lot together in the last two months! In the middle of the fear and confusion of COVID-19, we’ve had the pleasure of celebrating a great many things — our community involvement, our teams, new restaurant openings, baby showers, birthdays, anniversaries, and

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even the birth of a couple babies! This may come as a surprise to other organizations but, as RGM Patricia Gibbs said when featured on a Global Chat with David Gibbs, “Recognition is our culture, COVID-19 can’t silence that.”

What started out approximately 60 days ago as the name of our Facebook group has turned into a representation of who we are. KFC Strong is our culture.

Every single member of the KFC family is welcomed and encouraged to join the KFC Strong group*. This page exists to focus on and highlight our teams and the work happening in our restaurants every day. From franchisees to team members, and everyone in-between, all are welcome to join and participate by reacting (like, love, care, etc.), commenting, and submitting posts.

At this time, the page is run by a small team of administrators (myself, Madalyn Klika, and Julie Lloyd) who review each post submitted for content and admit new members as needed. Interested in seeing something specific featured? Direct-message me, or Madalyn Klika via Facebook.

KFC Strong has been one of the most fulfilling things I’ve had the privilege of being a part of and it has provided an overwhelming amount of joy for me since its inception a few short months ago. I wanted to conclude by saying thank you to everyone who has joined the group, submitted a post, and interacted with this page.

Please know, while I feel very blessed to help administrate the page, KFC Strong is a beautiful representation of the best parts of this brand because of what you’ve made it. I look forward to continuing this social journey with you. n *Participation in this Facebook group is voluntary. The purpose of this page is to provide a forum to recognize our restaurant team members for working so hard in our restaurants during this challenging time.

Any team member who would like to submit material for posting may do so. An admin will review each submission and feature items daily. Please understand that this page is one-way KFC wants to recognize our team members for a job well done. Only appropriate materials in the spirit of this goal will be considered.

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.

RSCS DEVELOPMENT & EQUIPMENT

RSCS DES TEAM MANAGES COVID-19 CHALLENGES WHILE FOCUSING ON SUPPORTING OUR MEMBERS

By Deb Beavin, SVP of DES

N

one of us knew, going into this year, the challenges we’d face as an organization and country. The COVID-19 pandemic and its impact took us all by surprise. In the face of new and emerging needs, RSCS Development & Equipment Services team (DES) quickly set its sights on those items critical to the health and safety of the restaurants we support.

Keeping restaurants open and prepared for what would be needed next were top priorities.

We’ve found new sources of supply for thermometers, masks, sanitizer dispensers, front counter shields, drivethru shields, payment device handles, drive-thru bins, face shields, and parking lot signs. We even worked with a local Kentucky distillery who typically bottles bourbon to make hand sanitizer for our restaurants.

46 AKFCF Quarterly Summer 2020

What we’re doing As the COVID-19 pandemic grew, RSCS DES quickly leapt into action to support many new business needs key to keeping restaurants up and running.

The initial focus was on standard supply items like hand sanitizer, hand

soaps, cleaning chemicals, and gloves. As business requirements evolved in response to this global pandemic so, too, did RSCS’s scope of products and services with a very focused goal of helping to keep restaurants open and operational. As examples, we’ve found new sources of supply for thermometers, masks, sanitizer dispensers, front counter shields, drive-thru shields, payment device handles, drive-thru bins, face shields, and parking lot signs. We even worked with a local Kentucky distillery who typically bottles bourbon to make hand sanitizer for our restaurants.

On the service side, RSCS DES established a “COVID-19 Critical Ops Supply Help Desk” in support of Brand hotlines.

This group was responsible for providing prompt assistance to restaurants who were at risk of closure in response to a critical

item outage, like hand soap or gloves. The RSCS DES team remains vigilant and committed to meeting the ever-changing needs of the business.

Working from home: Like many companies, including Yum!, RSCS felt it important to have our employees work from home for their own safety. Most RSCS employees are now working remotely and have been since early April. Although we’re not “in the office,” our commitment to service is unchanged. We meet daily to review all performance metrics and ensure we’re focusing on the current, most important needs of the business, which can change daily. RSCS DES has invested in our people, equipment, systems, and processes over the past two years to introduce the capability and flexibility to meet the demands of these times. It’s very exciting to see our planning pay off. Being able to operate with a 100-percent remote workforce is a competitive advantage for our members in the face of this pandemic.

Flowing the work: To best respond to the current frequency and pace of change, RSCS DES has created an environment where flexibility is key. Our daily meetings enable our “flow to the work” strategy.

As COVID-19 first hit, we had very little development activity as many projects were delayed or placed on hold. Team members historically dedicated to development were redirected to answering incoming calls, supporting replacement needs, and, in large part, supporting COVID-19 supply inquiries and orders. In addition, we have all hands on deck throughout RSCS! We’ve engaged resources from our accounting, finance, human resources, administrative, and technology teams to support the needs of those served by our DES business. You can count on the RSCS DES team!

Moving forward We are so happy to say that development activity is picking up! Remodeling our restaurants and building new units is critical to our growth. RSCS DES is ready to support getting this development growth back on track. We need your help to ensure each of your development projects are successful and timely. First, please enter and maintain new restaurant and remodel project dates in the MRP Scheduler Tool (apps. rscs.com/EquipmentOrder/Commitment) to ensure project availability of materials. Next, following the receipt of plans, please plan for a 120-day timeline for new builds and 90 days for remodels.

Currently, all suppliers are operating with standard, traditional lead times. However, year over year, as we see increased activity in the last three months of the year, we can expect increased lead times for some suppliers. So, please use MRP to let us know about the timing of your project and start ASAP to avoid the end of year crunch!

Our commitment We strive to be a competitive advantage to our members and provide the services that help our restaurants succeed. We remain committed to supporting the unique and different needs related to COVID-19, supporting you even when we’re not in the office, and keeping your development plans on track. n

Summer 2020 AKFCF Quarterly 47

KFC FOUNDATION

NEW INCENTIVES FOR TEAM MEMBERS WHO PURSUE GED THROUGH KFC FOUNDATION PROGRAM

By Elizabeth Edrington, KFC Foundation Communication Coordinator

E

arning the GED certification is no small feat, and we are indescribably proud of the 180+ KFC employees who have put in long hours of studying and dedication — on top of a full workload, taking care of their families and more — to earn their credentials through Rise with GEDWorks. But there still is work to be done.

Did you know as many as 25 percent of adult KFC restaurant employees, including RGMs, may not have a high school diploma? That means one of every four team members could take advantage of the KFC Foundation’s Rise with GEDWorks program.

Earning the GED certification can have an exponentially positive impact on a person’s self-esteem, outlook on life, family and future, and we want as many team members as possible to accomplish this

48 AKFCF Quarterly Summer 2020

goal — which is why we’ve added some additional perks to Rise with GEDWorks.

Rise to REACH Guarantee The REACH Grant is a competitive program, meaning not everyone who applies receives a grant. This new guarantee means that every employee who earns their high school credential through Rise with GEDWorks will receive a REACH Grant to further their education (assuming they complete an application, follow instructions, and meet minimum eligibility requirements of course).

2020 GED Grad Raffle Every employee who earns their GED through our program in 2020 will be entered into a drawing for an “all expenses paid” trip to the KFC Restaurant Sup-

port Center to spend a day with the KFC Foundation team and explore Louisville, Kentucky!

GED Graduate of the Year Starting this year, we are going to recognize a KFC Foundation GED Graduate of the Year. We will announce and accept nominations in the fall from RGMs, ARLs and franchisees. The winner will attend the AKFCF Convention for two days and one night as a guest of the Foundation and be at our booth during the Trade Show. More info on how to nominate will come later this year.

Employees can earn $145 — while earning their GED Every time a Rise student passes a GED subject exam, the KFC Foundation mails

Earning the GED certification can have an exponentially positive impact on a person’s selfesteem, outlook on life, family and future, and we want as many team members as possible to accomplish this goal.

studying and their GED Advisor will work with them until they pass.

3 Available to all restaurant employees at participating restaurants,* including RGMs

them a congratulatory note along with a $15 Visa gift card. As a special incentive now through the end of the year, they’ll get a $100 Visa gift card when they pass their fourth and final test (it’s usually $25 for the fourth test). In total, they could receive $145 for earning their GED! GED Graduation Celebration Kit Every time someone passes their fourth and final test to earn their GED, we equip them with everything they need to throw a top-notch celebration. KFC Foundation staff coordinate with the grad’s franchisee to send a graduation celebration kit, which includes a Colonel backpack, graduation cap, congratulations banner, an Instagram frame, certificate, balloons, and a poster to be signed by the restaurant team. We’ll also send a $25 gift card so you can purchase a cake for the occasion.

Wait, what exactly is Rise with GEDWorks?

Rise with GEDWorks is an all-inclusive, online GED prep and testing program available to KFC employees at participating restaurants — all at no cost to them.* It consists of the following:

3 Unlimited free prep and testing, offered in English and Spanish 3 Designed with working adults in mind, all prep courses are offered online making it accessible and possible for employee-students to study on their own terms and do their work anytime, anywhere 3 Every student is paired with a personal GED Advisor,™ who helps the student set up a study plan and serves as accountability partner and cheerleader 3 “Test until you pass” guarantee. Students must simply commit to the required

Jackie, KFC team member with KBP Foods, had been wanting to earn her GED ever since she left high school 15 years ago without a diploma, but just couldn’t find the right study program to help her get to the finish line. When a fellow team member told her about Rise with GEDWorks, Jackie enrolled right away and was able to earn her GED last October.

“I’ve been trying for years to get my GED and I’ve never been able to stick with it and get it done,” she said. “This program was flexible and allowed me to finally achieve my goal after all these years.”

KFC frontline employees who are interested in Rise with GEDWorks can get started via the KFC Foundation mobile app** or kfcfoundation.org.

Talk to your teams about this life-changing program today! You could be the reason someone changes their life by earning their GED. Questions? Email us at foundation@ kfc.com. n *To be eligible, employees must work at a KFC restaurant participating in the 2020 Cole Slaw Donation Program. **Standard message and data rates apply.

Summer 2020 AKFCF Quarterly 49

PARTNERSHIP SURVEY COMMITTEE

SURVEY RESULTS ARE ENCOURAGING

By Noah Hommerding

G

reetings AKFCF! My first year leading the Partnership Survey is in the books.

As I presented at the Convention in Nashville, the results from the 2019 Survey are encouraging. I was impressed with how receptive and supportive the KFCC team was in helping prepare the survey. I can personally attest that the leadership team at KFCC listens carefully to the ideas, concerns, and suggested business direction supported by the survey. In fact, just about all of KFCC’s presentations at the Convention addressed strengths and concerns specifically brought to light by the survey.

I wanted to follow up on a few key results from the survey this year. First, let’s talk participation: 37 percent of franchisees completed the survey. This is up 3 percent from 2018. Note that this is not the percentage of restaurants represented, as that information is kept confidential. However, we are aware that restaurant operators of all sizes were well represented. My main ask here is to watch for the communication this fall, and take the time to fill out the survey right away. Your participation gives

50 AKFCF Quarterly Summer 2020

credence to the survey, and I personally feel it’s important to get feedback from all operators, regardless of the number of restaurants owned.

Of the questions asked, 44 of them improved versus 2018, and only one declined. Areas of improvement included all aspects of the business. “KFC cares about my business and profitability” increased 2 percent. “I believe we’ve made the life of the Restaurant General Manager easier” improved 11 percent! And, metrics around impactful marketing that brings in new customers while growing our core business, both improved by 7 percent and 9 percent respectively.

Last, a testament to the folks at KFCC you work with every day, showed an 11 percent improvement by the folks in restaurant development, and an 8-percent improvement in having your questions and concerns addressed easily by the field operations team. All in, these are solid examples that both KFCC and the franchisee community are making meaningful, positive impacts to the franchisee business.

The comments in the survey are vitally important, and are read carefully as well. You stated collectively that you look forward to new product news that brings in new guests, while having them being offered via an LTO platform. One comment summed it up very well, stating that this approach essentially added new product news without adding long-term complexity. You are looking for more work to be done

around improving our core menu flavor. It was exciting to see during the presentations at Convention the work being done around a new strip size specification, new dipping sauces, Two Step Original Recipe seasoning, an improved chicken sandwich, Secret Recipe Fries, and Beyond Chicken. All of this is being done to keep KFC relevant and exciting to the consumer. I know we all take pride in the food we serve. One of the first images I have of the Colonel is from a picture of him and my parents that hung in their office when I was a child. It’s important we continue his legacy of making amazing food.

As I write this, we are in the middle of the COVID-19 pandemic and all of the challenges it has brought to our business.

I know the AKFCF, our NCAC, and the entire KFCC leadership team have been working around the clock to support each of you and your business. It has been a crazy time, with huge swings in the business, and seemingly new challenges every day. We will learn from these times, and the ideas and insights derived from these challenges will carry us through into the future. I’m certain the survey responses from this upcoming fall will help us learn even more about your concerns, ideas, and state of your business. As always, if you’d like to suggest questions to be asked on the survey, please let me know. I’d be happy to share with the team. Please feel free to share by sending me a note to nhommerding@ srgmgmt.com.

In closing, the results of the survey and the recommendations and concerns you provide are being heard by both KFCC and the AKFCF. We will continue to strive to grow together, and the Partnership Survey is a key component to making sure your individual voices are heard. n

REGIONAL SHORTS

NORTHEAST REGIONAL UPDATE

By Denise Springer, NE AKFC President

G

reetings KFC Family. As we continue to learn more about COVID-19’s impact, it becomes more devastating. It has been referred to as the ‘great equalizer’ because it doesn’t discriminate and knows no boundaries. As a New Yorker, this disease has been more destructive and has taken more lives than September 11. The current death toll in New York is over 21,000 and more than 100,000 nationwide with the greatest numbers of casualties and infected in the Northeast. The Northeast has been the epicenter of the virus; however, we are not taking this situation from a position of weakness.

The governors of seven Northeast states (New Jersey, Connecticut, Massachusetts, Rhode Island, Pennsylvania, Delaware, and New York) have formed a coalition to source supplies to fight the virus. They also are planning to reopen the states in a manner that will avoid reigniting the virus. The Northeast franchisees also have taken a unified approach, as we always do, to support each other for whatever is needed during these challenging times.

We must take an offensive approach as we face new challenges. Our first priority is to

safeguard our team by wearing masks and gloves at all times. In addition to maintaining the requisite six-foot distance, the RSCS has Plexiglas barriers that are easy to install, which will help reduce customer contact.

However, we still need to work with our teams to properly utilize those barriers. They must stay behind them and not poke their heads to the side to better hear customers.

They must use gloves when sanitizing the barriers frequently throughout the day. They must keep the service counter clear so it can be sanitized frequently throughout the day.

Our organization also is requiring all employees to wear plastic aprons. This helps to protect against anything that may have been picked up on their clothing from the outside.

We have to keep our teams safe inside and outside of work with reminders and processes that will reduce the possibility of them being infected. Remember, although we’re able to treat some of the symptoms, as of now, there is no cure or vaccination for the virus.

Because we’ve taken an offensive approach early on, we’ve seen positive sales in many areas. As other restaurants start to

reopen, we must pull customers our way by giving them a great experience at our restaurants. Our customers must know we have the cleanest restaurants from the back of the house to the curb, in addition to a great meal. Putting a wet nap with every order, including delivery orders, helps to give customers a sense that we’re concerned about sanitation. Our meals need to look as good as they taste, which means we must carefully pack them so they look appealing. Although the brand has only recently reinstated ROCC visits, we should continue to conduct our own internal audits to ensure we have the hottest and freshest product available and that all food safety processes are in place. In a world that has now become consumed with the plague of the virus, hospitality is critical. The same guiding principles that we’ve always prided our brand on are even more paramount during these times.

We pray for our KFC family members who have lost loved ones to the virus as well as those currently in the battle. God bless you all. n

SOCAL REGIONAL UPDATE O

By Deborah Ossanlo

ur SoCal Region has postponed our spring and fall 2020 meetings until 2021 due to the COVID-19 pandemic. We were joining the Northwest in Hawaii in October, but are in the process of moving the contract to October, 2021. Looking forward to a hopefully great meeting then, with this pandemic under control at that time.

As are all restaurants in all regions, ours

are adhering strictly to the guidelines to stay open for take-out and drive-thru. We are lucky to be in a state where the governor enforced restrictions quickly and ahead of most other states to address the virus and the need to “slow the spread.” We are looking forward to our restaurants opening further for dine-in with restrictions, which will greatly help sales. Slow and steady wins the race! n

Summer 2020 AKFCF Quarterly 51

EXECUTIVE DIRECTOR UPDATE

LEADING THE WAY IN A NEW NORMAL

By Kelly Rodenberg

P

erhaps you are familiar with the saying that strong leaders absorb chaos, radiate calm, and inspire hope. The leadership of the AKFCF have been following that mantra, in that order.

Abiding by the best advice I ever got, “Act, but don’t overreact,” I am able to keep calm while those around me want to panic, thereby keeping those around me focused on consuming information, weighing facts, and making good decisions in thoughtful and measured steps.

As we move forward in these unprecedented times, I hope that the membership will have seen us demonstrating leadership that they are proud of and can say their membership dues are being well spent. I hope members think, “They had a plan, they persevered, they stayed in contact, and made sure we were treated as a member of the family.”

Never before has the way we live been more challenged or our independence more threatened; but, amidst all of this, we have an opportunity to establish models for the future. As your AKFCF leaders, we will think collaboratively, prioritize our members, drive change, and reflect on the future with hope.

We will step up our game to be better off and far more ready to confront the challenges — and opportunities — of the new normal. Like your KFC restaurants, we are re-building operations, re-thinking the traditional structures, and accelerating the adoption of digital and virtual solutions.

In a crisis, what matters becomes

52 AKFCF Quarterly Summer 2020

very clear, very fast. Strategy, roles, personal ownership, constant and transparent communication, and leadership that is both supportive and demanding — all can be seen much more clearly now. Leaders and members have a shared sense of purpose and a mutual performance culture; we all know what the Association stands for and how important one common voice can be.

Over the past few months, there has been

Imagination, flexibility, leadership, and onthe-field execution will be paramount as we consider how to navigate the postCOVID-19 environment.

a transformation in the way we interact with loved ones, perform our work, travel, get medical care, spend leisure time, and conduct many of the routine transactions of life. These changes have accelerated the migration to digital technologies at stunning scale and speed, across every sector.

Through the COVID-19 recovery, too, digital will play a defining role in how we work as an Association.

To adapt, we needed to rethink our Executive Committee and spring board meetings quickly and accelerate the development of a digital solution. Like many of you, Zoom meetings have become that solution.

To deal with the COVID-19 crisis and its aftermath, the AKFCF Convention Committee is addressing these challenges and will need to set an ambitious agenda — and deliver it quickly, on the order of two to three months, as opposed to the previous norm of a year or more. We will keep you updated on the 2021 Convention when we have more details. Information provided by the meetings industry is coming at us like a freight train and not just daily, but hourly.

Imagination, flexibility, leadership, and on-the-field execution will be paramount as we consider how to navigate the post-COVID-19 environment. Business as usual will not be nearly enough; the game has changed too much. But by reimagining how we recover, operate, organize, and use technology as we return to work, we can set the foundations for enduring success n

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Summer 2020 AKFCF Quarterly 53

LEGAL UPDATE

CALM IN THE MIDST OF CHAOS

By Ron Gardner

T

hroughout this issue of the Quarterly, you have read about the many ways in which our system has adapted rapidly to the emerging COVID-19 pandemic.

In the opening statement of my last Quarterly article — an article I wrote just three days after the President had declared a National Emergency as a result of the pandemic — I expressed the difficulty in writing to you in a time of extreme chaos.

While chaos certainly continues to exist in much of our daily lives, our economy, and our politics, the nimbleness of the AKFCF and all of the other members in the KFC family, have brought an immense sense of

54 AKFCF Quarterly Summer 2020

calm as we continue to forge through this crisis together. We have many people to thank for that sense of calm.

On the franchisee side, I could not list all the people who have sacrificed literally thousands of hours over the last quarter making sure the KFC system stays stable. But there are a few, who I have worked with extremely closely, that I would like to call out.

Let me begin by thanking my friend, Jim McKenzie. As you all know, Jim is in the waning moments of his presidency of the AKFCF. As we left Nashville in the glow of a really successful Convention, we all expected that Jim would finish up the projects

that he had going, and ride comfortably into the last couple of months of his presidency the way most AKFCF presidents are able to do. That was not Jim’s fate — and it is quite fortunate for us that he was at the helm when this started. Jim immediately recognized the potential devastation of the pandemic, and rallied not only the AKFCF leadership, but his colleagues at the NCAC, to begin regular franchisee-only Town Hall calls to make sure people were getting all the information that was necessary. His level-headed leadership inspired all of us.

Incoming AKFCF President Brandon Robertson used his years of experience in working with our lobbyists and others in Washington to help guide the AKFCF GAC in making substantial contributions to the shape and form of the Payroll Protection Program under the CARES Act. It was awesome to have someone as well positioned as Brandon working on our behalf — and it portends nothing but great things as we head into our next year with Brandon at the helm.

Thanks to Tom “Tab” Broome, who unlike Jim (who was coming to the end of his term), had just stepped into his role as the NCAC vice chair two months earlier. I am sure Tab had no idea that his term would start with a cancelled NCAC meeting, and be filled with long days of conference calls, Zoom meetings, and the need to help lead the NCAC through a series of monumental decisions as the budget was completely re-worked, and the

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While chaos certainly continues to exist in much of our daily lives, our economy, and our politics, the nimbleness of the AKFCF and all of the other members in the KFC family, have brought an immense sense of calm as we continue to forge through this crisis together.

Marketing Plan for the year completely overhauled.

Someone who is mentioned a lot but does not get enough credit for all the things he does for the system is Mike Kulp. Mike immediately stepped forward to use his significant influence at Yum! to help negotiate several initiatives aimed at preserving franchisee cashflow in the near and mid-term. Mike’s work alongside influential leaders in the Taco Bell and Pizza Hut systems made a mountain of difference in the collaborative way our system and sister brands approached the situation.

Cynthia Koplos at the NCAC was also instrumental in working with your franchisee leadership at the NCAC as they tackled the host of operational issues, marketing issues, and contract issues presented by the pandemic. Besides being the master architect of the fluctuating marketing budget, Cynthia coordinated massive amounts of communication through the creation and setting up of the Town Hall calls, communicating about COVID-19 through the NCAC Newsletter, and allowing me to use the NCAC communication channels for the bulletins that I was sending out.

Immense thanks, as well, to Kelly Rodenberg and Deb Newton at the AKFCF and Jason Kunz at Speaking Socially, as they distributed information promptly, both from me, and from your AKFCF Executive Committee, about the developments going on as we moved through the early stages of the pandemic.

Much thanks go as well to the KFCC and RSCS leadership teams for their open communication about issues ranging from opening protocols to product sourcing to marketing changes. Kevin Hochman and his entire leadership team, as well as Todd Imhoff and the KFC team at the RSCS, all

deserve our thanks for helping to bring this chaos under control.

Special thanks, as well, to Chris Caldwell and the technology team, as well as Melanie Bootes, Kate Ward, Sarah Osborn-Hill, and the KFC Legal Department, for remaining flexible related to multiple issues that confronted each and every one of you in the early days of our new normal. All these individuals continue to work every day to figure out where we are going, and how we can get there in a calm and measured way.

And there are many, many more who deserve our thanks, and I want to make sure that you know how many people have been working on your behalf.

Of course, the work in not over — indeed, it may go on for many more months.

We continue to work on a multitude of issues related to customer and team safety, technological innovations to make the business run smoother, legal issues related to third-party aggregation, and the delivery services and other technologies to make customer interface more convenient and safe, and marketing plans that will continue to drive amazing results despite the economic environment in which we are all now living. Rest assured that no one is resting on our laurels in what we have achieved so far. Tomorrow is another day, with another challenge. But only by dealing with those issues calmly, can we overcome the chaos that is surrounding us. 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.

5

AT&T Business

29

Auspex Capital

44

Café Valley Bakery

35

Capitol Light

34

Case Farms

17

Chart Industries

C3

Dr. Pepper Snapple Group

15

Ecolab Kay Chemical Company

53

FSV Payment Systems

25 Genpak 9

Gycor International

33

KFC Foundation

23

Koch Foods

C2 Magnesol 41

NDA, Inc.

1

Pacific Premier Franchise Corporation

39 Partstown 3 PepsiCo 43 Pilgrim’s 13 10, 11, 53

Procter & Gamble Distributing Restaurant Supply Chain Solutions

19 Welbilt C4

Winston Industries

53

Worcester Industrial Products

Summer 2020 AKFCF Quarterly 55

Photo Courtesy of KFC Global

LOOKING BACK

56 AKFCF Quarterly Summer 2020