41 minute read
‘An Incredible Journey Of Respect And Care’
As curator of the Col. Harland Sanders Museum at the corporate headquarters, Shirley oversaw the collection of early memorabilia and historical data that tells the KFC story.
Shirley Topmiller reveals what it was like to work for the most iconic man in American foodservice history.
By Cory Sekine-Pettite
Earlier this year, AKFCF Quarterly was approached by franchisee David Neal. He had a story to share, and boy did we want to hear it! He said he could put us in touch with Shirley Topmiller, who was ready to talk. What about exactly? Well, Topmiller was the Colonel’s administrative assistant from 1972 until the day he passed in December 1980. She has been honoring his legacy ever since, and this publication is honored to share her account of working with the most iconic man in American foodservice history.
KFC Convention, Las Vegas, Nevada, late ‘70’s.
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Col. Sanders had skirts made for his wife, Claudia, and Shirley to wear one year at the KFC convention. Shirley continues to wear hers for Foundation check presentations and other KFC events. This was a televised event at Childrens’ Hospital, Jackson, Mississippi. Many of you have met the Colonel and have shared your favorite memories with us on these very pages (in our annual Service Awards features). The man was a living legend who built a restaurant empire beginning at an age when most people transition into retirement. He started his chicken franchise at 65 and achieved this icon status not only because of the success of Kentucky Fried Chicken restaurants and the secret recipe of 11 herbs and spices, but also because of his (and KFC’s) commitment to various charities and community organizations. You knew the Colonel as meticulous, hard-working, considerate, and a man of his word.
You may know that at the early age of 7, the Colonel’s life changed dramatically when his father passed away, leaving behind a widow with three children to raise. His mother was forced to work to provide for her children, therefore relying on her oldest son to watch and care for the younger kids. This was the beginning of the Colonel’s legacy of a lifetime spent working hard and caring for children.
The Colonel always seemed to find a way to give back, despite his own financial difficulties. Not long after he opened his first restaurant in Corbin, Kentucky, he heard about a nearby orphanage and decided to take those children under his wing. He knew what it was like to be without a parent and wanted to give those children a sense of belonging.
Stories like this are well known in the franchisee community. But Topmiller had daily access to the Colonel, getting to know the man better than most. Their relationship began the same day she showed up at KFCC for an interview. She quickly earned the man’s respect and never lost it. Here’s her recollection:
As I began walking toward the building, a white limousine pulled up and the Colonel bounded out. “Good morning, little lady, what brings you here this morning?” he asked. “I’m here looking for a job,” I replied, thinking, “Oh, Lord, you work so fast”. He held the door for me, said “good luck to you” and was on his way.
In the early 1970s, I re-entered the job market. It had been 12 years since I had worked outside my home. I chose KFC because of the corporate headquarters building location was very close to my home and my daughters’ school. On the morning of my appointment there, I took time to say a little prayer, asking God to guide me through the experience and to let me know if KFC was the right place for me. As I began walking toward the building, a white limousine pulled up and the Colonel bounded out. “Good morning, little lady, what brings you here this morning?” he asked. “I’m here looking for a job,” I replied, thinking, “Oh, Lord, you work so fast”. He held the door for me, said “good luck to you” and was on his way.
After my interview, I was advised there just was not a position open at that time. Disappointed and wondering if this was the “yes or no” answer I had prayed for, I went on my way, planning dinner and waiting for the girls to come home. But then, the call came from KFC asking me to get back there quickly as possible. I did so and was hired on the spot. Clearly, a job had been made for me, and I took it! A small closet had
been enlarged to make room for a planned “steno pool” and I became one of two secretaries who would work for those employees who had been sharing secretarial help and felt their work was often delayed. Weeks later, I gathered courage enough to ask what happened that day I was sent home and then called back. “Oh, the Colonel came looking for you and asking what we had done with you” was the response. (Oh, Lord, you work so fast!).
Working in this position gave me a perfect opportunity to get to know so many employees and to exhibit my skills. A franchise attorney was one of my best “customers” and in time he cleared a path for me to be transferred to the Franchise Department as secretary to the VP of franchising. In time, John Cox came from Heublein as head of Public Affairs, but wanted to learn the franchising side of the business. He came to the Franchising Department and brought the Colonel with him. This meant the Colonel passed my desk to get into John’s office and while we never spoke of our first encounter, there was a working connection that could not be ignored.
The Colonel could be a tough taskmaster. He had his own secretary, but the position seemed to be a sort of “revolving door” as applicants came and went. One day, Mr. Cox called me into his office, shut the door, and asked me to take over the Colonel’s work. He pointed out that the job could easily be added to mine if I just took over his travel schedule. I quickly said “No.” He asked for my reasons, of course, and I gave them to him. “Would you tell the Colonel that?” he asked. And I did just that. We all met that afternoon and the Colonel listened and rubbed his chin as I gave him my answer. “Colonel, I said, “I am alone now with two little girls and I need this job. I cannot risk losing it just because you are in a bad mood or something goes wrong with your reservation. I cannot promise that I will be sitting at my desk the very minute you walk into the building and all the other little things that have gone wrong with you and your staff. I just won’t do that.”
He sat there, still rubbing his chin in thought and replied, “Little lady, if you will take this job as John has outlined it, you have my word that you will never lose this job because of me.” And so it was, the rest of his life, never a cross word between us, an incredible journey of respect and care for one another.
Her confidence and gumption aside, Topmiller had plenty of work experience behind her when she began her career at KFCC. Previously, she had worked for two college presidents and for a local small business, so she had experience dealing with special requests and arrangements when she began working for Colonel Sanders. “At that time, he was the most-recog-
Still On Duty: Putting The Colonel To Rest
When the Colonel passed away in December 1980, Shirley Topmiller and everyone else at KFC headquarters were about as prepared as they could be. She recalls that they had his obituary ready for the newspapers, as well as an in-house binder they referred to as “Phase Two” for the corporation.
“The Colonel didn’t like to talk about dying, even though he visited his monument at Cave Hill Cemetery on a regular basis for twenty years,” Topmiller said. “He had already told us not to close the restaurants, saying ‘I don’t want women to have to cook supper that night just because I died!’
“I had guarded details of the funeral, which I had arranged shortly after the diagnosis of leukemia at age 90,” she continued. “I was intensely concerned that it would become a media circus and was holding a tight rein on the arrangements to the best of my ability, as so many people came out of the woodwork, feeling they should be a part of the service. When the end came, people from all over the world were here for the funeral — corporate giants, franchisees, the children’s choir he funded in Shelbyville, the world press, customers. And Pat Boone honored the Colonel’s request that he sing at the funeral. Every musician seemed to perform at new heights and his beloved ministers became silver-tongued orators, it seemed. I sat near the back of the church, in my own private grief, still ‘on duty.’”
nized person in the world, according to the Gallop Poll,” Topmiller recalled, “but never once did he ask for a suite at a hotel, or a first-class ticket, and certainly not to have a limousine waiting when he arrived. Most important to him was to get the job done in the best way he could.”
In addition to her previous work experience, clearly the Colonel was impressed with Topmiller’s honesty and courage. Their working relationship would last eight years, during which Topmiller would review all personal appearance requests, managed the Colonel’s calendar, made all travel arrangements, answered his mail, and stayed alert to possible issues that could interfere with purpose of his travels or reflect poorly on the corporation and Colonel’s image. Additionally, she recalls ordering the Colonel’s famous white suits from his Toronto tailor. “They were made of white British wool. They never wore out, but because of fre-
With Colonel statue presented by KFC Japan to the museum in Louisville. These statues have been significant in advertising and growing the KFC brand in Japan.
quent dry-cleaning, the white wool would yellow over time and not be as fresh-looking as we wanted,” Topmiller said.
“Because of his heavy travel schedule (250,000 miles/yearly),” she continued, “I also was able to head up consumer affairs, corporate contributions, the Colonel’s Museum and any number of issues that seemed to find their way to my desk.
“It was amusing in those early days when calling hotels for reservations and after getting the date and arrival time set, the agent would then ask for name and address of the guest,” she continued. “When I said ‘Colonel Harland Sanders,’ there might be a pause and then something like ‘He’s coming here?’ or ‘I didn’t know he was real. Is this a joke?’”
Topmiller would come to learn that nearly everyone she met, regardless of their jobs, their socio-economic status, or their own public personas, admired the Colonel and wanted to share in her knowledge of the man and his business. For example, she recalls the day she met George Steinbrenner, the famed owner of the New York Yankees and member of the Heublein Board of Directors.
“It was Kentucky Derby week in Louisville and everyone’s calendar was jampacked with annual parties and events,” she recalled. “I was dressing for a Derby luncheon at the track when the call came. George Steinbrenner was in town and wanted to tour the museum at KFC headquarters. Since Heublein owned us at the time, I realized this was a command performance, regardless of the fact that I had other plans. I finished dressing and hurried to headquarters. The museum was fairly small, nicely curated, and did a good job of telling the Colonel’s story; it certainly was quite simple and could easily disappoint someone expecting something more grand. I was curious how this visit would go.
“I had no reason to be concerned, however,” Topmiller continued. “Mr. Steinbrenner arrived on time, was energetic, very gracious, and wanted to hear everything I could tell him about KFC history and the Colonel. Near the end of our visit, he paused and said ‘Do you folks realize what you have here? I sit on boards of companies whose history has never been compiled and protected like this. What you have here is the DNA of a famous company, that tells me people have told the stories through the years, tended to the accuracy, and protected this brand like a family would do. I am just blown away with what I have seen.’”
Topmiller says she has fond memories of that unexpected visit with a man more famous for his temper than his business success at that time, who she says “got” the story of a simple man (the Colonel), who never gave up on his dreams, worked tirelessly for his brand, and became famous around the world. “Thanks to Mr. Steinbrenner, I was okay with missing the luncheon,” she said. “As I turned to lock the doors, our little museum seemed to have a special glow and I decided to leave the lights on to shine through the glass doors. After all, it was Derby week and George Steinbrenner was in town.”
As remembrances go, that certainly must remain a stand-out. But what of her time with the Colonel? With so many years of experience working for the man, one might expect to find it difficult for Topmiller to have a favorite memory, but surprisingly she does. One afternoon at KFC Headquarters remains prominent, she says. “After his last [leukemia] diagnosis, I worked to keep his calendar as free as possible. He did not like this and would often set out on his own, which worried me until I would hear
from him or Dick Miller, his driver. On this particularly quiet afternoon, he appeared at my office door and said, ‘I thought I would like to see that movie about me that runs in the Museum.’
“I took him down to the Museum, got him all settled, and started the movie,” she continued. “He seemed to want to be alone and after a few minutes, I left. Knowing just how long the movie ran, I watched the clock at my desk and hurried downstairs when I thought it was just about finished. The last few minutes were playing, and I quietly stood back, making a mental picture of our beloved Colonel, alone, watching his life story. He did not know I was in the room when the movie ended, but he took a deep breath and said to himself ‘What a life!’”
What a life, indeed. People the world over still know of Colonel Harland David Sanders, more than 40 years after his passing. He remains an icon. Books have been written. Movies have been made. And most importantly, he’s still the face (and voice) of KFC. While it certainly has been a privilege for franchisees to continue his legacy, Topmiller says it also was privilege to know the man. “The Colonel indeed was real. He was the ‘real deal’ to anyone privileged to work with him. He spoke of the ‘integrity’ of the spices, the quality of every ‘round’ of chicken, saying, ‘We’re only as good as the last round of chicken we cooked.’ And quality was as important to him on his 90th year as the product he perfected in his Corbin kitchen all those years ago.”
“He never forgot the difficult times,” Topmiller continued, “as the son of a widowed mother, who sewed for neighbors and worked in a canning factory when tomatoes were ripe and local citizens could make extra money for a few weeks. His generosity is legendary and the foundation he began is still pumping out grants for worthy programs.” n “The Colonel indeed was real. He was the ‘real deal’ to anyone privileged to work with him. He spoke of the ‘integrity’ of the spices, the quality of every ‘round’ of chicken, saying, ‘We’re only as good as the last round of chicken we cooked.’
KFC FOUNDATION BRINGS MENTAL HEALTH SUPPORT TO YOUR TEAMS THROUGH PARTNERSHIP WITH CRISIS TEXT LINE
By Elizabeth Edrington, KFC Foundation Communication Coordinator
The KFC Foundation strives to support and empower KFC restaurant employees at every phase and stage of their lives. We’re proud to continue this support through our new partnership with Crisis Text Line®, a 501(c)3 non-profit organization, which provides free, 24/7 text-based mental health support and crisis intervention — in both English and Spanish.
Everyone — at some point — just needs someone to talk to. That’s where Crisis Text Line comes in. Members of the KFC Family can text “Fries” to 741741 to text confidentially with a compassionate, trained Crisis Counselor anytime, anywhere.
Help us spread the word to your restaurant teams. Tell your HR department, Ops team, Area Coaches, RGMs and restaurant employees about the text-based mental health support available to them. This can be a life-changing and life-saving resource, but it can’t help anyone unless they know it’s there. #FriesChangeLives
Crisis Text Line testimonials
“I don’t think I would have made it through tonight without you.” — Texter “As I was standing on the ledge, I was texting you guys and you alerted 911… Without you guys, I wouldn’t be here to write this. The text line is truly a life saver.” — Texter “It was enough to change my mind from ending my life. I found out yesterday that I’m almost 5 months pregnant. I literally had no idea. So thank you, you have saved two lives.” — Texter
What is Crisis Text Line?
Crisis Text Line is a non-profit organization that provides free, 24/7 crisis counseling via text message. Their vision is to help create an empathetic world where nobody feels alone. You are their priority.
Crisis Text Line is the nation’s largest text-based crisis service, with over 40,000 volunteer Crisis Counselors in the United States having more than 4 million conversations with people in crisis since their August 2013 launch.
Who are Crisis Counselors?
Crisis Counselors are dedicated, trained, supervised volunteers from around the United States. After a rigorous multi-stage application process, background check, and training program, each commits to volunteering four hours a week until 200 hours are met. Supervisors (staff who all have master’s degrees in a relevant field, or commensurate crisis intervention experience) oversee the Crisis Counselors.
How does it work?
Text “Fries” 741741 when in crisis, available 24/7 in the United States.
The first two responses are automated. They tell you that you’re being connected with a Crisis Counselor and invite you to share a bit more.
A live, trained Crisis Counselor receives the texts and responds quickly.
The Crisis Counselor helps you move from a hot moment to a cool calm, safe place using effective active listening and suggested referrals — all through text message, using Crisis Text Line’s secure platform.
In some cases, the Crisis Counselor will collaborate to help the texter in crisis get help. Less than one percent of conversations result in Crisis Text Line needing to engage emergency services to help ensure the texter’s safety.
The issues shared with Crisis Counselors are often deeply personal and urgent — 68% of texters share something that they have never shared with anyone else.
Are messages with Crisis Text Line confidential?
Yes. Conversation stays between you and your Crisis Counselor unless sharing it with emergency services is necessary for your safety or the safety of others.
Do standard message and data rates apply?
If your cell phone plan is with AT&T, T-Mobile, Sprint, or Verizon, texts to our short code, 741741 are free of charge. If you have a plan with a different carrier, it works just like texting a friend: standard text message rates apply.
KFC Family Fund is also here to help
The KFC Foundation also has the KFC Family Fund to provide financial assistance to KFC restaurant in qualifying hardships or crisis situations, such as a death in the immediate family, medical emergency, house fire, natural disaster, substance abuse treatment, and more.
Employees can apply for the KFC Family Fund via the KFC Foundation mobile app or kfcfoundation.org/family fund. n
THE HARDWAYThe 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.
INTRODUCING OUR *NEW* MEMBER PROGRAMS WEBSITE!
By Tara Morrison
Our goal at Restaurant Supply Chain Solutions is to provide a competitive advantage to our members. Through RSCS Member Programs, we offer discounts on products and services used to run your business, from waste services and pest control to in-store music and security systems. We’re constantly adding new programs, categories, and vetted suppliers to our service offering.
Our waste and recycling program alone could save you up to $1,000 a month, but RSCS has many additional programs that can help you save money on products and services you already use today. We have negotiated discounted rates for the following:
• Cleaning services with Cintas and UniFirst • Cell phone plans with AT&T and Verizon • Prefabricated building services with Fullerton
Building Systems • Security systems with SimpliSafe • Office supplies with Office Depot and Staples • Oil management with Restaurant Technologies • Slip-resistant shoes with Shoes for Crews,
Skechers, SR Max, and Careismatic • AND SO MUCH MORE!
Our entire list of programs can be found on the *NEW* Member Programs website at memberprograms.rscs.com. Using our Member Programs Directory, you can find detailed information on each of the programs we offer, the discounts available, as well as how to sign up through each supplier.
You also can sign up for our email newsletter to receive Member Programs highlights of our various programs, special promos throughout the year, and up-to-date Employee Perks flyers to hang in your restaurants. Our service offering is ever evolving, so join our mailing list by visiting the website or emailing memberprograms@rscs.com.
Employee Perks is a free benefit for our members to offer as a fantastic employee incentive in this current labor market. Using the simple mobile app and registration process, your team members can start saving money on products and services from a multitude of retailers they may already be using today. There are discounts on cell phone plans, movie tickets, electronics, and more! The newsletter and website both have printable flyers that you can download and distribute to your team members, which includes a QR code so they can quickly register and start saving through Employee Perks!
Our goal is to provide the most value to our operators with these programs and we appreciate your feedback. If there is a product or service that you think would be a great addition to Member Programs, please email us at memberprograms@ rscs.com.
Member Program Spotlight: Waste Quotes – Save up to 30% on your waste services!
With RSCS Waste Services program, you can stop throwing your money in the trash (and reduce your costs up to 30 percent). Pre-pandemic, RSCS had completed a multi-stage RFP, leveraging the volume of the entire Yum! Brands system with some of the largest national waste vendors and waste brokers to ensure the BEST rates are made available to all restaurant locations. By leveraging this large volume, RSCS has established deals in place with five vendors that are available to our members. While some locations are locked in to using a city’s services (called a closed market), most areas have open competition, which means the waste vendors are competing for your business.
To get started, simply send your current waste invoices to Daris.Benton@rscs.com and we will retrieve bids from all five of our waste partners. This is a completely free process and you have nothing to lose — except for dollars off your waste bill. We will make the submitted bids available to you and if you are interested in one of the offers, provide you with a pre-negotiated Operator Agreement that you can simply sign and begin service with the new waste vendor at the reduced cost. Submit your bids today!
Employee Perks: Help employees save on nearly EVERYTHING!
Make sure your employees are getting the most out of being a KFC Crew Member by utilizing Employee Perks. Our Employee Perks program offers discounts on products and services from a multitude of popular retailers that can help your team SAVE BIG! One of our most requested discounts is on cell phone plans. We offer discounts at AT&T and Verizon. You and your employees could be saving up to 23 percent on your data plans just by being a KFC employee! We also offer discounts on movie tickets, oil changes, hotel, car rentals, security systems, theme parks, electronics, and so much more!
Visit memberprograms.rscs.com > Employee Perks to download our latest flyer for your restaurants. n
KEEPING YOU INFORMED
By Kevin Schlutz
The mission of the AKFCF Communications Committee is to provide multiple channels of relevant, two-way information sharing to unite and advance the interests of its members.
Communications are critical in a fastpaced and changing business environment. There are so many sources of information today that I can spend the whole morning just reading all the posts and almost everyone has their own favorites where they receive and use information. Some of us remember the days of newspapers, magazines, the three network TV channels, and hard-wired telephones. Today, those choices have exploded exponentially, and it would be hard to find any two people who get their news the same way because there are so many different choices available.
Your Communications Committee, made up of the regional secretaries, AKFCF staff and GAC chair, is always looking for new and more effective ways to communicate — and especially to get feedback from our members — while maintaining the old standard channels that some still use.
In the last few years, several things have happened that have really expanded our reach. Starting the AKFCF Facebook private group has allowed us a quick and effective way to reach hundreds of our members and ARLs with breaking news, interesting articles, and important updates. I check every morning for new articles to post that would be of interest to our membership. Having Jason Kunz at Speaking Socially as a partner maintaining that private group, and adding content, has revitalized the page. We have 400 members. If you use Facebook, you should go to the AKFCF Facebook page and ask to join.
Speaking Socially maintaining our AKFCF website has been a tremendous help in providing more up-to-date information to our members. We have recently had Jason making a lot of updates and refinements to the website. Some of the regions also are using him to maintain their websites. Having one less place to go is a benefit for all of us, or you can link from there to the regional sites that aren’t included within
the AKFCF site. Either way, it’s the one place you can start for anything to do with AKFCF.
Another thing that has contributed to the efficiency of our communications is having our General Counsel, Ron Gardner, also act as the General Counsel for the NCAC. Having this synergy has helped with getting out items of importance quickly and in several different ways so that you don’t miss them. If Ron has a message for everyone, it will go on the Facebook page with a text notification, in an email from the AKFCF, in emails from your regional secretaries, and in an email from the NCAC, all within 24 hours. I know sometimes you may think this is overkill, especially if you are on many of those channels, but in this crazy world we all live in, sometimes it takes that many for one to be seen.
Another big improvement that our committee can take no credit for is the KFCStrong Facebook private group, but it’s been a wonderful way for our restaurant teams to express their appreciation, tell everyone of their accomplishments, recognize top performers, ask questions or give best practices, and just feel the togetherness of being a part of this global KFC Family. It is always inspiring every time I scan through the posts. For some of us, the goal is to “like” and encourage as many as possible to give that positive feedback for their achievements. This was so vitally important during the pandemic and continues to be an ever-important way to foster the culture of family in our restaurants.
Also, another improvement is all the communications coming from the KFC Foundation. Emma and Liz have certainly taken their activities to a higher level, and we work with them as appropriate to communicate their activities. How wonderful is all the good they are doing with the Roundup money and other fundraising?
The regional secretaries are working toward utilizing the texting app that the AKFCF has. They are creating different groups such as EC, Board, etc., so that they can send a message to Jason and say which group they want it to go to and when, and he will set it up. Obviously, this would be for short messages or reminders.
Here is a list of current forms of communication that are available to you: 1. The Quarterly magazine and the e-Newsletter 2. AKFCF and Regional websites 3. Email distribution, both from the
AKFCF and regional secretaries 4. Social media — AKFCF Facebook page with text alerts 5. Conference calls, Zoom calls, virtual meetings, and webinars 6. The AKFCF app and links to ask questions of your leadership 7. Surveys, in-person meetings, Convention, workshops, and mailings.
As you can see, there are many different communications channels working together to keep us all informed. Thanks for continuing to read and act from the communications channels of our great KFC Family. Please send any suggestions to kevin@centraliowakfc.com n
NORTHWEST REGION UPDATE
By Shannon Prendiville
The Northwest completed our first in-person meeting in April since the pandemic closures cancelled our spring 2020 event. We had an excellent turn-out of participants. Franchisees, their team members, and our vendor partners gathered in Las Vegas, excited to meet in-person again. Team recognition was number-one on the agenda. We couldn’t wait to recognize our team members as “Super Stars” for all their successes over the last two challenging years. The group enjoyed presentations concentrating on team member enrichment to include areas of technology, personal finance, high-speed performance, delegation, management skills, and personal wellness. We also had informative program updates from the KFC Foundation as well as updates from the KFCC leadership team.
Not only did the event provide a great enrichment program, the group thoroughly enjoyed an evening of dinner, games, prizes, and fun. We played all sorts of casino games; the highlight of the night was the exciting cornhole tournament. Thank you to the Stewart group for organizing and providing the KFC cornhole boards. The lucky winners of the tournament are now owners of these awesome KFC branded boards (pictured). It is safe to say everybody was a winner that night!
We enjoyed a lively event with our vendor partners with many raffle winners and good conversations. It was great to see our vendor friends in person and to meet many new ones. Congratulations to Ecolab as they were presented with the Northwest Vendor of the Year Award for their continued support of the Northwest Region.
We now turn our attention to our Fall 2022 meeting scheduled for October 22-28. The Northwest continues the successful partnership with the Southern California Region as we return to Hawaii. We’ll be on the Big Island at the Marriott Waikoloa Beach Resort and Spa. We look forward to finally getting to the Islands after a two-year postponement. It will be great to relax and enjoy the Big Island as we catch up on the latest KFC happenings, lively discussions of best practices, and meet with our vendor partners. Perhaps we will be able to squeeze in a tropical beverage or sunset!
Please find meeting registration and updates, plus regional information, on our website at www.nwkfc.com. n
NW President Fred Jackson of Graja Inc. and his team of Super Stars.
Kris Stueber of Jem Management and his team of Super Stars.
Chris Basinger of Northwest Restaurants and his team of Super Stars.
IS IT TIME TO THROW OUT THE OLD CONVENTION PLANNING BOOK?
By Kelly Rodenberg
Idon’t think it is an exaggeration to say that the next few years may be the most critical years ever for the AKFCF Convention.
Think of it this way: After two years of doing whatever was necessary to stay relevant, we once again have our most important asset — in-person events — available to us. But with members having adapted to a new way of learning and interacting with each other over that time, what must our Convention portfolio look like now to meet member needs but also deliver the necessary revenue needed to sustain the Association’s daily operations? The AKFCF Convention and dues income are what keep the Association running.
Inflation has become a common word in everyone’s business and personal lives. It is also hitting the Association hard as we experience increased costs for hotel room nights, food and beverage, entertainment, airfare, AV, etc.
We need to set a new path for member education and interaction through events in the post-pandemic environment. One of AKFCF’s core strategic initiatives is to deliver a successful Convention. So, what that means, and what I would say we should be thinking about, is building a balanced portfolio of offerings while building a balanced budget.
We’re thrilled to be back to in-person events, and we saw a strong response to our 2022 Convention in Orlando — even stronger than before the pandemic. Members want to see each other and spend time together as a community, and we’re thrilled with that. But we’re looking at really building out our portfolio as well because the environment is different; the world isn’t going back to 2019. So, we need to look at conducting activities and programs differently.
We need to adjust the lens, remind ourselves that we may have the “generational glasses” on, and we need to see it and interpret through not just our experience. We need to see it through another lens (RGMs, ARLs, large operators, new members, younger members). We need to create a generational win/win — work together and create mutual benefit.
For example, we’re looking at sessions, fees, workshops, sponsorships, and the trade show and saying, “Should we really be talking about suchand-such topic again this year, or is there something that’s more urgent, a ‘hot button’ that’s top of mind for franchisees, ARLs, and RGMS as they come out of the pandemic?” How can we help our suppliers get the biggest ROI? It’s like that with every single program that we offer right now. We need to take a holistic look and say, “Is this what’s best in 2023 and beyond? Is the content on point? Is the messaging on point? Is the format accessible to the people who need it?”
In the AKFCF, we tend to be a group that likes to be connected to others. We don’t compete, so we do a lot of sharing of best practices and our shared challenges, and I think that folks are just yearning for that.
We need to throw out the blueprint for what the annual Convention looked like; for every element that we’re bringing in, we need to examine it to make sure it still makes sense in this moment. From there, we can focus on how we can make the Convention sustainable, profitable, and further attendees’ learning after the Convention ends. It is our “crown jewel” and we want it to shine for years to come. n
By Ron Gardner
COLLABORATION IN A CRITICAL TIME
If you are paying any attention to what is going on in your restaurants, what I am about to tell you will not be surprising — 2022 has been brutal. What we all are colloquially calling “economic headwinds” have turned into a full-force gale and, for some, a hurricane.
First, there has been the long-building pressure on labor inflation. Starting even before the pandemic, the push in some markets for the minimum wage to be increased, followed by the now virtually universal requirement that restaurants offer far above minimum wage to even attract employees (thereby making retention costlier for those employees you have had around for a while), has really come home to roost. Some of that labor pressure also has been driven by the need to increase open hours and longer hours of operation. This also adds to the dollars you are spending on labor in your restaurant.
What none of us saw forecasted that long ago, however, was the cost of food inflation. A nearly perfect storm of circumstances has caused chicken prices to skyrocket: the war in Ukraine and its impact on grain exports from that part of the world; the horrendous weather in Brazil and the effect that has had on grain exports from that part of the world; the dramatic shift in customer preferences toward more chicken in their diets, increasing demand for our key ingredient; an increasing number of competitors offering chicken products, placing even further demand on chicken supply; and, the desire by growers to maximize the weight of each bird grown in these circumstances, to increase their revenue and profits (thereby putting a strain on the spec used within KFC).
Between the work that was done at the RSCS and at the Brand in December 2021, we were advised that we would see some spike in the cost of chicken in 2022. Many of you have adjusted prices (some, multiple times) to account for this change. These price increases have eased the burden, at least somewhat, of the sudden and dramatic rise in the cost of goods in your restaurants.
The good news is that current forecasts have chicken prices peaking sometime in Period 9 of this year before they fall back slightly for the remainder of the year. That means the pressure you are feeling on the price of this core product should be almost over. Of course, we have no visibility in any predictions for 2023 yet, so whether that trend continues downward, stays flat, or, worst-case scenario, goes back up again, is anybody’s guess. Caution dictates that we assume this pressure will be around for the next 12-18 months — until we have any different information.
As I mentioned above, with the price increases that many of you have taken, you have been able to combat a lot of this inflationary pressure. But there is no question that margins and cash flow are being squeezed. Further, our data suggests that those of you in markets with lower household incomes (a big chunk of the KFC system) are being hit disproportionally hard with these “headwinds.” While sales are essentially flat, all of that comes from pricing. And, as consumer inflation increases all over the economy, you may be near a point where raising prices is no longer an option. The solution in that instance, of course, is to accelerate transactions. Data suggests that such acceleration only occurs if we can offer more value to the hyper-stressed customer.
As I write this, I have just returned from our June NCAC meeting. Everything I have shared with you so far was the strong focus of the intense and sobering meeting that we just had. Everyone understands the challenges, and the combined team of franchisee and franchisor leaders are moving swiftly to help you deal with this unprecedented pressure at the restaurant level.
One of the things that has happened over the years is the development of a regular cadence toward new product introduction. First, the Food Innovation Team (FIT) develops a product that it believes deserves serious attention. After getting sign-off from interested stakeholders (franchisees, other departments at KFC, etc.), the product then moves into being examined by Operations to ensure it can be mass produced in the restaurants, and the RSCS is consulted for potential sourcing of ingredients. Then, after lots of back and forth, the product
is typically tested for six to eight weeks to ensure that the consumer will like it. Once those results are in, the process starts over until we get to a place where both Ops and the FIT team feel like the product is ready to go. Meanwhile, the RSCS has expanded its work to make sure enough product can be efficiently sourced to support a national roll-out. Packing is developed and refined, and the OEC works with KFCC to develop the training materials you will need to offer the product in your restaurant. Separately, but somewhat at the same time, the Marketing Group is trying to figure out where the product should be slotted in a promotional window, how to promote it, and running some market tests to ensure the product will sell. Not surprisingly, this entire process can take anywhere from six months to a year and a half.
Unfortunately, given the situation we are currently in, that process simply will not do.
At our meeting, it was agreed that in order to expedite the rapid deployment of some value options aimed at amping up transactions and keeping our customers satisfied, the NCAC would create a cross-functional team of franchisees and franchisor department leads, putting this team in charge with quickly analyzing several potential value offerings, getting them approved, and getting them rolled out. This is a new approach and one that is desperately needed in this critical time to drive customers, and cash, into your restaurants.
And speaking of cash, we are working hard with our franchisor partners to figure out how to best preserve that critical lifeblood when it comes to other things as well — capital expenditures, restaurant margin improvements, and how to leverage our existing technological assets to rapidly increase volume while driving down costs.
None of this would have happened without the strong partnership we have built with KFCC over the years. While the issues before us are daunting, the level of partnership shown by both sides, the willingness to lay aside the separate interests we have as franchisees and franchisor, and the complete dedication to finding fast solutions without grandstanding, was remarkable for two reasons. First, this level of cooperation is utterly unique is franchising. On the other hand, it is what we have come to expect, as the hard work we have all done over the last several years to create an institutional expectancy of collaboration has become the norm, rather than the exception. That fact alone gives me a great amount of optimism that we will emerge from this time stronger than ever before.
Finally, I would be remiss if I did not thank all of you who are participating in the iLumen program. Our visibility into what is happening on the ground in your restaurants has been made possible only through those of you who have taken the time to provide this information. Our ability to weather this storm will be contingent on our continued visibility into restaurant-level economics. Therefore, for those of you who have not signed up for iLumen, please reach out and let me get you connected. It is safe, fast, confidential, and has almost nothing but upside to you in the management of your business through these stormy seas. n
This column is for the general information of members of the AKFCF and should not be relied upon as legal advice. Please see your own attorney or professional advisor for questions concerning your franchise agreement. Ronald K. Gardner is General Counsel of both the AKFCF and the NCAC.
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