AKFCF Summer 2024

QUARTERLY

Association of Kentucky Fried Chicken Franchisees, Inc.

Summer 2024

It’s the GOLDEN ANNIVERSARY of the AKFCF!

PLUS: History of AKFCF Quarterly, the GAC, the RSCS, and the KFC Foundation

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CONTENTS

AKFCF QUARTERLY Summer 2024

18 22 FEATURES GAC Report: The History of the AKFCF Government Affairs 18 and Political Action Committees

36

By JoAnna Mueller As the AKFCF commemorates its 50th anniversary, it’s imperative to recognize the foundational role played by its Government Affairs Committee (GAC) and Political Action Committee (PAC) since their establishment in 2006.

History of the AKFCF Quarterly 22

By Michelle Hunt From its humble beginnings in 1980 as an eight-page newsletter updating regional meeting minutes and other informational offerings, the AKFCF Quarterly began morphing into a conduit for communication among franchisees and became a magazine in 1989.

DEPARTMENTS 4 From the Editor 6 President’s Report 10 NCAC Report 12 In the News 42

RSCS Member Programs

AKFCF & KFC Timeline 45 KFC Foundation 30 Look back at the history of our Association and of the growth and development of KFC. From the start of regional associations, to the formation of the KFC NPC, to contract negotiations, to rebranding and more, this timeline has it all.

KFC Foundation: Celebrating 25 Years Of Changing Lives 36

By Emma Horn This year marks 50 years of the AKFCF, and 25 years of your KFC Foundation! We’re honored and proud to say that the KFC Foundation has provided over $36 million to more than 16,000 students, KFC restaurant employees, and non-profits through education, financial & hardship assistance, and community giving initiatives.

48 Finance Committee Report 49 Communications Committee Report 50 Regional Shorts 52 Executive Director Update 54 Legal Update By Ron Gardner 56 Looking Back

On the Cover: AKFCF 50th Anniversary!

2024 marks the 50th anniversary of the AKFCF! Throughout this issue, we celebrate and commemorate our rich history, as well as the history of GAC, the RSCS, the KFC Foundation and more.

2

AKFCF Quarterly Summer 2024

BETTER TOGETHER

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

FROM THE EDITOR

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

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

OUR STORY

By Michelle Hunt

I

always say, I’m a lifer. My grandparents started in the KFC business in 1968, and my father became a franchisee in the early 80’s. So it was bound to happen that one of us kids would take up the family business. My father and grandfather are still the only father and son to both serve as our AKFCF president. This Association has always been a part of our family and our story. But our story isn’t unique; we’re a family business within a system of family businesses — it’s our life and our passion.

I always think about this whenever we review our AKFCF history. I was born into our KFC family and basically into our AKFCF family. While more recently, the landscape of our franchise family has been shrinking due to consolidation, many strong family businesses remain within our system. I have so many memories that encompass my own history with this brand, and I’m thankful for all of them. I have met some of the most inspiring and sharp-minded people, traveled to beautiful places, been mentored and developed as a leader, and cultivated amazing friendships through my involvement with the KFC brand.

I joined the AKFCF Quarterly team as assistant editor in the fall of 2000 at the urging of Jeanine Bagshaw Rosselot, the second editor of the Quarterly (yes, there have only been three of us!). I had no idea at the time how Jeanine would mentor me and give me the confidence to take on the editor’s role in late 2005 — that experience changed my life for the better. And yes, I’m still here. I’m pretty sure no one truly wants my job, but I always accept additional volunteers! In 2021, I added the role of administrative manager of the AKFCF, which made this job much easier.

In this issue, commemorating the AKFCF’s 50th anniversary, we celebrate our history and the history of the Quarterly, the KFC Foundation, the GAC and our relationship with Polaris Consulting, the NCAC, and the RSCS. We also have a timeline of the history of KFC and the AKFCF, including the regions that are the very reason we exist. Don’t skip over the columns. A wealth of history and knowledge is being shared in each one. We hope you enjoy this very special 50th anniversary issue. It has been a labor of love a year in the making. We will also sprinkle in more history in the next two issues.

I look forward to seeing many of you this fall at the Franchisee Forum and again next spring in Nashville for our annual AKFCF Convention and family reunion.

Warmest Regards,

4

AKFCF Quarterly Summer 2024

AKFCF EDITORIAL TEAM

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

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

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

FRANCHISEE EDITORS:

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

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

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

AKFCF ADVERTISING AND EDITORIAL SUPPORT OFFICE

Send all advertising and editorial submissions for AKFCF Quarterly to:

NEW SOUTH PUBLISHING, INC.

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

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

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FROM THE PRESIDENT

A TREASURE TROVE OF KNOWLEDGE

By Leslie Sharp

L

et me start by saying happy 50th anniversary, AKFCF! Fifty years of volunteerism, partnership, and friendship. Fifty years of standing together to protect, foster, and grow this great brand and unique franchisee system. And yet, somehow it feels as if we’re just hitting our stride. I feel confident making that statement because of the past few weeks that I’ve spent in meetings with my fellow franchisees. Your franchisee leaders at the regional level and NCAC are as engaged as I’ve ever seen them, and we’re all motivated to move this great brand in a positive direction.

The increasing business challenges that we currently face can feel overwhelming.

I decided to do a Google search to see what was happening 50 years ago when the regions gathered to form the AKFCF. The phrase, “the more things change, the more they stay the same,” couldn’t have been more relevant. In 1974, stories of inflation, scandals, and political battles dominated headlines — events that sound familiar now. Yet, we survived them then and managed to weather the storms together. Our longevity is a testament to the franchisees of this brand who have prioritized using their collective voice over the years. This

was on display when franchisee leaders gathered recently for our Spring AKFCF Board meeting.

I asked each board member to come prepared to share their “rose and thorn” from the last six to eight months. I wanted to know what the regions believed they are doing well (their rose) and what thorn in their side that needs to be addressed. In both situations, I wanted board members to explain what makes their rose successful and offer up a potential solution or “ask” from the group on how to better manage their thorns.

This concept came from my first board meeting 20 years ago. In 2004, I was elected as a Kentucky State Director on the Southeast Board of Directors. It was my first step in serving the franchise community and a position that I was honored to have. The Southeast president at the time asked us to share our personal rose and thorns, and boy did I have a story to tell! I had buried my father about a week before the meeting, and I was processing taking over the business after his unexpected passing. I shared with my fellow franchisees the challenges I was facing. It taught me one of my greatest professional life lessons.

As franchisees, we are living a shared experience and while we are each unique, so much of what we feel and experience as business owners is the same. For months after that 2004 meeting, I had franchisees who were in the room share with me how my story had impacted them. The lesson that we

As franchisees, we are living a shared experience and while we are each unique, so much of what we feel and experience as business owners is the same.

6

AKFCF Quarterly Summer 2024

aren’t alone in this — and by sharing both personal and professional struggles — feels a little less overwhelming. A few weeks ago, when I had the chance to lead the AKFCF spring meeting, I asked the rose and thorn question to your current leaders, and it set off a two-hour discussion. Some regions expressed that they are “currently looking for the roses,” as they feel, right now, there are none to be found. I appreciated the honesty and vulnerability.

Thorns seemed to be easy to find. Things like minimum wage, government interference, and inflation were brought up — challenges that we will (if we’re lucky) be writing articles about 50 years from now because as we know, things change but manage to stay the same. But despite the challenges and thorns, your regional presidents didn’t focus the bulk of their time on them. In fact, they shared many roses. They talked about the amount of talent that we have in the system, and their commitment to identifying and mentoring that talent to develop strong leadership.

They talked about the strength of the regions, and the ability to communicate more easily with one another. And one franchisee expressed that he was “eternally optimistic” about KFC and that our team members and RGM’s seem to be eternally optimistic about KFC. Just hearing his reminder to not give up hope renewed my optimism with this Association and with our brand. As we celebrate this milestone, as we pause to reflect and dream about the future, continue to share your stories and lean on your fellow franchisees. Take full advantage of the AKFCF network, 50 years in the making. There is a treasure trove of knowledge, strength, and support waiting for you! n

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NCAC REPORT

THE HISTORY OF THE KFC NATIONAL COUNCIL AND ADVERTISING COOPERATIVE, INC.

By Karen Sherman

F

ormed in 1997, the KFC National Council and Advertising Cooperative, Inc. (NCAC) resulted from the merger of the National Advertising Co-Op (NAC) and the National Franchise Advisory Council (NFAC), two entities that were crucial in shaping KFC’s advertising strategies and franchisee relations. Some have said that the NCAC stands as a testament to the power of unified marketing and franchisee cooperation within the fast-food industry.

In the early days of KFC, advertising was a decentralized effort, with individual franchisees handling their local marketing. Recognizing the need for and power of a cohesive national strategy, the NAC was established in the late 1960s. With a primary objective of a unified marketing strategy, the NAC aimed to pool resources from franchisees, creating a substantial advertising budget to fund national campaigns. This cooperative model allowed KFC to launch impactful marketing efforts that bolstered brand recognition and drove sales, including campaigns to promote the iconic KFC bucket and the memorable slogan, “It’s Finger Lickin’ Good.” These initiatives helped cement KFC’s brand identity and distinguish it from competitors in the fast-food industry.

Established as a platform for franchisees to voice their concerns and collaborate on solutions, the NFAC was formed in parallel to NAC to address broader operational and strategic issues faced by KFC franchisees. The NFAC ensured that franchisees’ interests were represented in corporate decisions and facilitated better communication and cooperation among franchisees. The NFAC addressed operational challenges, provided strategic insights, and worked closely with the parent company to align franchisee goals with corporate objectives.

By the mid-1990s, it became evident that the overlapping goals and potential synergies between the NAC and NFAC could be better achieved through a single, unified organization. In 1997, this realization led to the ultimate merger of the two entities, resulting in the formation of the NCAC. The merger was memorialized as

part of the historic 1996 Settlement Agreement of the class-action lawsuit the franchisees brought against the parent company in 1989 that also resulted in the creation of the 76(5p) agreement.

With the settling of the lawsuit, both parties agreed to a revised governance structure for the NCAC that provided greater transparency and franchisee input. This resolution helped to mend relations and reinforced the importance of collaboration and communication within the franchise network. Despite the initial legal challenges, the formation of the NCAC marked a significant turning point in KFC’s history. By centralizing and coordinating advertising efforts, the NCAC was able to create more impactful and consistent marketing campaigns. This not only strengthened the brand’s identity but also helped to drive sales and growth across all franchises.

The NCAC was structured to include representation from both franchisees and the parent company, ensuring a balanced approach to decision-making. This cooperative model fostered an inclusive and collaborative environment with stakeholders from across the KFC family having a voice in shaping KFC’s advertising and strategic initiatives.

Over the years, the NCAC has demonstrated remarkable adaptability, responding to changing market conditions and consumer preferences. From embracing and funding new advertising technologies to supporting the development of marketing strategies for the U.S., the NCAC has played a crucial role in ensuring KFC’s continued success.

Today, the membership of the NCAC is made up of every U.S. franchisee and the KFC Corporation and is a requirement of the Franchise Agreement. All members contribute a percentage of sales to the advertising fund which is allocated each year to support national marketing and advertising programs. Much of the work is done at the subcommittee level including Marketing, Beverages, Operations, Operations Excellence, Contracts and Facilities, and Technology Subcommittees (membership on the Technology

Over the years, the NCAC has demonstrated remarkable adaptability, responding to changing market conditions and consumer preferences.

10 AKFCF Quarterly Summer 2024

By centralizing and coordinating advertising efforts, the NCAC was able to create more impactful and consistent marketing campaigns. This not only strengthened the brand’s identity but also helped to drive sales and growth across all franchises.

Subcommittee is made up of half NCAC-appointed and half AKFCF-appointed franchise family leaders). The subcommittees, made up of members of the KFC franchise family, provide feedback and input to the brand vision, strategy, and tactics and the NCAC Committee provides additional feedback, approvals and alignment on brand recommended initiatives and tactics.

The history of the KFC NCAC highlights the power of collab2024.5.15_Auspex Capital Ad for AKFCF Quarterly.pdf 1 5/17/2024 10:05:22 AM

oration and strategic marketing. From its origins in the 1960s to its current focus on programs to grow profitable sales and transactions in the United States throughout every part of the business, the NCAC has played a crucial role in shaping the KFC brand and ensuring its continued success. As the fast-food industry continues to evolve, the NCAC’s ability to innovate and adapt will remain essential to KFC’s future growth. n

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In the NEWS

KFC TEAMS UP WITH BOXLUNCH ON A NEW ‘FINGER LICKIN’ GOOD’ CLOTHING COLLECTION

K

FC recently celebrated National Fried Chicken Day in style — specifically, Kentucky Fried Chicken Style. The fast food chain launched a new Finger Lickin’ Good collection in partnership with the clothing company BoxLunch to ensure fans have the perfect ’fit to celebrate chicken’s big day.

The clothing line includes a little something for everyone, including a bucket crossbody bag, fanny pack, color-blocked windbreaker, and yes, a reversible chicken bucket hat that kind of makes it look like you’ve dumped a bucket of the fried stuff on top of your head.

It’s an ensemble guaranteed to turn at least a few heads or at least one that will convince someone you’ve maybe found a new summer job.

Source: Food & Wine

BY POPULAR DEMAND, RUFFLES AND KFC CANADA TEAM UP YET AGAIN

T

he summer may be off to a hot start, but there’s one collab that’s even hotter. By popular demand, Ruffles and KFC are teaming up yet again, but this year, they’re spicing things up with an all-new flavor and crunch: Ruffles Double Crunch KFC Zinger flavored potato chips.

These chips combine the unique blend of the KFC Zinger Sandwich’s fiery spices with the bold crunch of Ruffles Double Crunch potato chip for a one-of-a-kind snacking experience and the spiciest Ruffles x KFC collab yet.

KFC’s Zinger Sandwich brings the heat, and so do these chips. So, to cool you off in the most iconic way, Ruffles and KFC have created the Plunge Bucket: a limited-edition cold plunge tub in the shape of a KFC bucket, complete with a holder for

12 AKFCF Quarterly Summer 2024

a bag of the Ruffles Double Crunch KFC Zinger chips. Because you’re going to need somewhere to set them down while you’re taking the plunge.

“Ruffles’ famous ridges and the Zinger’s spicy flavors are a match made in heaven, bringing Canadians our boldest and spiciest collab yet,” says Jess Spaulding,

chief marketing officer, PepsiCo Foods Canada. “And for a collab this hot, we wanted to do something to help cool you down. Our Plunge Bucket puts a novel spin on the cold plunge phenomenon in a way that only Ruffles and KFC could.”

“Zinger is one of our most iconic recipes and the Zinger Sandwich is one of our most loved products around the world — bringing spicy flavor and a crispy texture to the world’s best tasting fried chicken. We are so excited to celebrate the Zinger this summer and are bringing the heat with the Ruffles partnership launching Ruffles Double Crunch KFC Zinger chips,” says Katherine Bond-Debicki, chief marketing officer, KFC Canada.

Source: Ruffles Canada

KFC AUSTRALIA UNVEILS CHRISTMAS IN JULY PROMO

K

FC Australia is creating Christmas in July this year by opening its first Colonel’s Lodge. The fast food chain is offering three, two-night stays in the festive-themed KFC lodge.

With every purchase of $30 or more in the KFC app during the month of July, customers can enter the draw to win a trip for four people. The winners will enjoy an unlimited supply of KFC Christmas spreads and the services of a KFC lodge butler.

The Colonel’s Lodge is a wood-paneled mansion in the Blue Mountains in New South Wales.

The Christmas in July promotions include daily deals on the app.

Tami Cunningham, CMO at KFC Australia, said, “Each year, we look forward to helping our fans celebrate the Christmas in July

occasion with good food, good people, and good times and we’re thrilled to be bringing the Colonel’s Lodge to life and offer fans a fresh and fun opportunity to enjoy KFC.” Cunningham said the brand’s festive July deal promotion this year extends through the month due to its popularity.

KFC is also bringing back the fan-favorite Christmas in July Feast and its annual merchandise range. Sales proceeds from the merchandise will go to the KFC Youth Foundation and its charity partners Black Dog Institute and ReachOut Australia.

Source: Inside Retail

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In the NEWS

AUSTRALIANS CHOOSING KFC OVER RESTAURANT DINING AS COST OF LIVING BITES

A

ustralians are increasingly eschewing restaurant dining in favor of fried chicken in a bucket as the cost of living changes eating habits.

Collins Foods, the largest KFC franchisee in Australia, recorded a 6.6-percent lift in fullyear revenue at its expanding network of outlets, representing a resilient set of full-year financial results that have defied an anticipated slowdown.

The Collins Foods interim chief executive, Kevin Perkins, said KFC Australia was focusing on its value credentials as “consumers feel the pinch of higher interest rates and cost-of-living pressures.”

“This consistent approach to customer retention has proven successful, evidenced

by KFC retaining share nationally, ensuring we are well placed for growth as economic conditions improve,” Perkins said.

While food sales were slightly down at KFC Australia on a same-store sales comparison that ignores new store openings, the results were still well above the dour forecasts that have sent shares in Collins Foods down 25 percent this calendar year.

Collins Foods operates 279 KFC stores and 27 Taco Bell outlets in Australia. It also has European operations.

The results show that a “trading down” trend has taken hold, with fast food outlets

taking business from mid-tier restaurants, which have been going bankrupt in large numbers.

Morningstar has noted that fast food restaurants were partially protected from an economic downturn because consumers were expected to “trade a $25 steak night for a cheaper option offered by a quick service restaurant like KFC or McDonald’s.”

Collins Foods reported a fivefold increase in net profit to $76.7 million (about $51.7 million USD) in the 12 months to the end of April, backed by a revenue jump across its local and overseas business units.

Last year’s results were also weighed down by large impairments booked on the company’s Taco Bell business.

Its main money spinner, KFC Australia,

opened seven new stores (net) during the year, while revenue at Taco Bell rebounded, backed in part by $5 and $10 burrito deals aimed at value-conscious customers.

Mexican-themed fast food is now in demand in Australia, with Taco Bell rivals Guzman y Gomez and Zambrero also reporting strong sales.

UBS analysts said in an investor note that while economic conditions were challenging, performance at Collins Foods was proving better than expected. Fast food stores have been treading a fine line between increasing menu prices to retain profit margins and trying not to put off cash-strapped customers.

A relentless rise in living costs is dramatically changing what Australians are eating, raising concerns over the nation’s health. Data from the Australian Bureau of Statistics shows that Australians are buying less fruit and vegetables and consuming less milk.

Many consumers, however, are forgoing fresh produce to load their diets with cheap confectionery and other snacks, which have spiked in popularity in recent years, according to the ABS. Source: The Guardian

Condolences: Former franchisees, Bill and Shirley Stubblefield, passed away within weeks of each other and the end of last year and the beginning of this year. Bill died at age 94 on Dec. 25, 2023, at the couple’s longtime Yuba City, California, home. The loss left Shirley bereft and just six weeks later, on Feb. 9, 2024, she unexpectedly died at home at age 88. They opened their first KFC restaurant in January 1969 and would eventually open five more locations. Bill, former AKFCF President (1987-1988) who also served on the National Franchisee Advisory Council, relished every moment operating the family’s restaurants. The busier he was, the happier he was. Our deepest condolences to the family.

14 AKFCF Quarterly Summer 2024

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In the NEWS

KFC-FLAVOR POTATO CHIPS RETURN TO JAPAN AFTER A NEARLY DECADE-LONG ABSENCE

F

or the first time since 2015, Japanese snack brand Calbee is releasing not just one, but two different KFC-flavor chips.

The first is KFC Original Chicken Flavor, which Calbee says recreates the taste sensations of the fried chicken recipe created by KFC founder Colonel Sanders all the way back in 1940, staying true to the near-century of tradition it embodies.

Alternatively, for those craving more heat than history, there’s the KFC Red Hot Chicken Flavor, with white and red pepper plus habanero chili. Both flavors were supervised and approved by KFC Japan, to ensure fans will be suitably satisfied.

Both flavors went on sale July 8 and are scheduled to be available until mid-August.

Source: SoraNews

THE KFC CREAMY SPINACH FEST ARRIVES IN THE PHILIPPINES

A

re you a die-hard fan of creamy spinach? KFC Philippines has finger-lickin’ good news for you. They are serving not just one, not two, but THREE cravin’-worthy Creamy Spinach products.

Dive into the KFC Creamy Spinach Fest for a limited time.

Try the new KFC Creamy Spinach Zinger: the classic crispy zinger fillet nestled in soft

buns, topped with creamy spinach sauce and sliced cheese.

For cravings on the go, have the KFC Creamy Spinach Twister: KFC Hot Shots, doused in melted cheese and creamy spinach sauce, wrapped in warm tortilla bread. You can also try the KFC Creamy Spinach Corn: a delightful mix of Creamy Spinach Sauce, sweet corn, and a generous topping of shred-

ded cheese, promising a savory treat with every bite.

Even Asia’s Superstar, Kathryn Bernardo, is just as obsessed with the KFC Creamy Spinach Fest.

The KFC Creamy Spinach Fest is available in the Philippines through August 19, 2024.

Source: Manila Standard

KFC LAUNCHES ‘THE ORIGINAL GAMECHANGERS’ VIA TBWA\RAAD TO EMPOWER SAUDI FEMALE GAMERS

T

he Middle East has long been recognized as a hub for exceptional gaming talent, with predominantly top-tier male gamers shining on the global stage. To change this narrative and ensure equal opportunities for all, KFC has unveiled a holistic campaign designed to break historical barriers in the gaming community by providing a platform for female gamers to showcase their talents and potential.

KFC has launched a dedicated microsite, KFCGaming.me, specifically for Saudi girl gamers to register for the OG (Original Gamechangers) Cup. This grassroots platform fosters a supportive environment for competitors, allowing female gamers to demonstrate their skills and compete for significant rewards. Winners will also have the chance to compete in the Saudi e-leagues and earn big prize pools.

16 AKFCF Quarterly Summer 2024

Social media has played a crucial role in KFC’s pioneering initiative, as the brand introduced a global first: a branded AI CapCut template exclusively tailored for “The Original Gamechangers.” This innovative tool allows users to visualize an AI version of themselves in the coolest virtual locations.

Ahmed Arafa, Chief Marketing Officer, KFC, Yum! Brands, said: “Through ‘The Original Gamechangers,’ KFC, in collabora-

tion with the SEF, continues to harness the transformative power of gaming. We are proud to pioneer a movement that celebrates diversity and empowers Saudi female gamers. As one of the ‘Play KFC’ platforms supported by SEF, this initiative is not just about gaming; it’s about reaffirming KFC’s commitment to inclusivity and empowerment, contributing to the creation of a more equitable future for all.”

Joe Lahham, Managing Director at TBWA\RAAD, said: “This initiative marks a significant stride towards inclusivity and empowerment in gaming. The campaign showcases our shared dedication with KFC to innovation, highlighting the profound impact of advertising in reshaping cultural narratives and serving crucial causes.”

Source: Campaign Brief Asia

Know Your Acronyms In our business, there is a great deal of terminology and jargon. As more processes and systems are added, the acronyms continue to pile up. Thus, AKFCF Quarterly decided it is time for us all to brush up on the many acronyms you will hear in your daily lives and read about in this magazine. Be sure to pass this along to your employees, or post a copy in your offices.

76(5P) 1976(5P) KFC Franchise Agreement AKFCF Association of Kentucky Fried Chicken Franchisees ARL

Above Restaurant Leader

ASAP American Showman Asset Program

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

QSR

Quick Serve Restaurant

REC Restaurant Economics Committee

KFCC Kentucky Fried Chicken Corporation

RGM

Restaurant General Manager

RMI

Restaurant Margin Improvement

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

ROCC Restaurant Operations Compliance Check

NCAC National Council and Advertising Cooperative

ROI

Return on Investment

RSC

Restaurant Support Center

AUM

Assistant Unit Manager

BOGO

Buy One Get One

BOH

Back-of-house

BSC

Balanced Scorecard

COB

Chicken on the Bone

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

COGS

Cost of Goods Sold

NMS ational Marketing Subcommittee

SBRA Supplier Business Relationship Agreement

DMA

Designated Marketing Area

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

TOL

Territory Operations Leader

TRP

Targeted Rating Point

OEC Operations Excellence Committee

VOC Voice of the Customer (formerly CBCC)

PAC

Political Action Committee

YUM

Yum! Brands

POP

Point of Purchase

YRI

Yum! Restaurants International

POS

Point of Sale

FA (Or F/A) Franchise Agreement FIT

Food Innovation Team

FSC

Food Safety Consultation

GAC

Government Affairs Committee

RSCS Restaurant Supply Chain Solutions (formerly UFPC)

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Summer 2024 AKFCF Quarterly 17

GAC Report

Years of Advocacy:

18 AKFCF Quarterly Summer 2024

The History of the AKFCF Government Affairs Committee and Political Action Committee

By JoAnna Mueller, Polaris Consulting

A

s the AKFCF commemorates its 50th anniversary, it’s imperative to recognize the foundational role played by its Government Affairs Committee (GAC) and Political Action Committee (PAC) since their establishment in 2006.

Summer 2024 AKFCF Quarterly 19

These committees owe their inception to the visionary efforts of franchisee pioneers like Wiley Dean, alongside the insightful contributions of Peg and Gene Duenow, who recognized the pressing need for a franchisee-centric government relations element within the Association. Their courageous endeavors set the stage for the ongoing dedication of numerous franchisees who have upheld and advanced the committees’ mission. The GAC and PAC have served as stalwart champions, advocating for KFC franchisees’ interests, adeptly navigating complex regulatory landscapes, and nurturing invaluable relationships with key policymakers. Let’s delve into the rich history and significant contributions of the AKFCF GAC and PAC over the years.

Formation and purpose The AKFCF GAC was established with a dual mission: to lobby on behalf of KFC franchisees and to oversee the AKFCF PAC. Guided by our lobbying partner, Dan Gans, the founder of Polaris Consulting, the GAC has steadfastly advocated for franchisees’ interests. Notably, the AKFCF served as Dan’s first client upon forming his new company, transitioning from a tenure on Capitol Hill where he held staff leadership positions for congressmen and governors. Today, under Dan’s leadership, Polaris represents an impressive 12 Fortune 500 companies, eight in the Fortune 100, and nine trade associations.

The GAC’s purpose is threefold: 1. Inform & Educate: Keeping AKFCF members abreast of political and legal issues affecting their businesses.

2. Lobby & Advocate: Representing the interests of AKFCF membership before the U.S. Congress.

3. Support Members & Build Relationships: Backing candidates and lawmakers who champion AKFCF’s priorities.

Similarly, the AKFCF PAC serves a crucial role in influencing elections, amplifying voices, advancing policy goals, and building relationships. By pooling resources, the PAC financially supports congressional members and candidates aligned with KFC franchisees’ interests.

Activities and responsibilities Both the GAC and PAC are structured to

20 AKFCF Quarterly Summer 2024

As the AKFCF embarks on its next chapter, the GAC and PAC remain steadfast in their mission to support and empower franchisees for generations to come.

ensure effective representation and coordination of activities. The GAC is comprised of officers who serve on the executive committee as well as regional representatives and at-large members. The committee is responsible for monthly calls, determining legislative agendas, and coordinating with our lobbying firm, business trade associations, and Yum! Government Relations.

The GAC conducts one to two fly-ins to Washington, D.C., each year, providing opportunities to engage with influential members of the U.S. Congress and to advocate for our franchisees’ interests.

Likewise, the PAC’s Executive Committee oversees all contributions and fundraising activities, ensuring compliance with campaign finance laws. From managing financial transactions to reporting quarterly statements, the PAC plays a pivotal role in amplifying franchisees’ voices in the political arena.

Impact and future endeavors Over the last 18 years, the AKFCF GAC and PAC have made significant strides in advocating for KFC franchisees’ interests. Through legislative initiatives, grassroots efforts, and direct engagement with policymakers, these

committees have shaped policies that impact the franchise community. Major policy areas include Tax Reform, TCJA 2017-2025, eligibility for the PPP, Qualified Improvement Property (QIP), EBITDA Interest Deduction, Credit Card Fees, Joint Employer, OT Rule, RFS/Ethanol, and more.

Looking ahead, the AKFCF remains committed to its advocacy efforts, ensuring franchisees’ voices are heard at all levels of government. As the political landscape evolves, the GAC and PAC will continue to play a vital role in safeguarding franchisees’ interests and promoting a thriving business environment.

In conclusion The AKFCF GAC and PAC stand as pillars of advocacy, representing the collective interests of KFC franchisees. Through their unwavering dedication and strategic initiatives, these committees have cemented their legacy as champions of franchisee rights and effective advocates for the KFC brand. As the AKFCF embarks on its next chapter, the GAC and PAC remain steadfast in their mission to support and empower franchisees for generations to come. n

Stay Involved, Donate to the AKFCF PAC

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

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

Summer 2024 AKFCF Quarterly 21

History of the AKFCF Quarterly 50 years and counting …

Originally Authored By Paul Gereffi, updated by Michelle Hunt

22 AKFCF Quarterly Summer 2024

Summer 2024 AKFCF Quarterly 23

F

reedom of the press. It sounds like something we invented in this country and put into our Constitution, but its roots go back almost to the printing press. For Darlene Pfeiffer, two-time past president of the AKFCF and the first editor of the AKFCF Quarterly, the French Revolution and freedom to disseminate information came to mind during the inception of this publication. The idea sprang forward during the tumultuous times for KFCC and its franchisees in their struggles with PepsiCo in the mid-1980’s.

Pfeiffer had said at the time, “I remember reading that during the French Revolution one of the first things they did was free the press. So, we thought, let’s start a magazine so we can get these issues with PepsiCo out to the franchisees in the hinterlands. We wanted to get franchisees excited about our publication.”

Pfeiffer, now deceased, from Kingston, New York, was right on with her historical perspective. When Luis XVI was king of France, no criticism of the monarchy or government was allowed. A key strategy in the ultimate success of the French Revolution of the late 1700’s was an immediate lifting of restrictions on the press. Harsh critiques of the government finally were allowed and they poured forth in great numbers, stirring the public to action. The rest, as they say, is history. Suffice it to say, the king eventually was deposed and Marie Antoinette, the queen, lost her head.

So, from its humble beginnings in 1980 as an eight-page newsletter updating regional meeting minutes and other informational offerings, the AKFCF Quarterly began morphing into a conduit

for communication among franchisees and became a magazine in 1989. After the cover of an issue of the “new” AKFCF Quarterly featured a pair of hands bound by handcuffs, with the slogan: “Franchisees: Slaves or Indentured Servants?,” there was no turning back. The AKFCF Quarterly had a new mission.

The first issues of the Quarterly didn’t contain advertising. Eventually, advertising and vendors began to support the magazine and production increased. Behind this support the volunteer staff was able to take advantage of their newfound freedom of ideas and ability to communicate directly with franchisees without interference. The seriousness of the issues in those days was accurately conveyed to franchisees.

Pfeiffer credited some of the early success of the AKFCF Quarterly to its original publisher, Journalistic, Inc. of Durham, N.C., and its president, Webb Howell. His expertise and encouragement were instrumental in the initial success of the publication, said Pfeiffer.

After the issues with PepsiCo were resolved, a new management culture took root, and today the AKFCF Quarterly accepts franchisee-related input from the corporation. However, its main purpose hasn’t changed. “The Quarterly was, and still is, a unifying force for franchisees,” Pfeiffer said. “We are a very close-knit group and the Quarterly helped perpetuate that closeness.” This is a publication for and by the franchisees, a central focus of the day-to-day operations of this communication vehicle.

Eventually, Pfeiffer decided to pass the baton to a new editor in 1995. The choice was Jeanine Bagshaw, a second-generation

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“The Quarterly was, and still is, a unifying force for franchisees. We are a very close-knit group and the Quarterly helped perpetuate that closeness.” — Darlene Pfeiffer, the first editor of the AKFCF Quarterly

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KFC franchisee from Hillsboro, Ohio (now out of the system). Together, Pfeiffer and Bagshaw put forth the mission statement of the AKFCF Quarterly as follows: The AKFCF Quarterly is to disseminate information and serve as a cohesive force to strengthen the KFC franchise system.

It was with this purpose in mind that the Quarterly moved forward under Bagshaw.

One of the first changes was to invite input from others to contribute to the magazine.

The first guest columnist was David Novak, who was president and CEO of KFC-USA at that time. The AKFCF Quarterly continues to allow access to the corporation to convey important information to the franchisees when necessary.

Coincidentally, Bagshaw was born in Henryville, Indiana, the birthplace of KFC founder Colonel Harland Sanders. She had the opportunity to meet the Colonel on a variety of occasions. Her parents, Bob and Anne Bagshaw, opened their first KFC when she was eight years old. Jeanine started as a cashier and worked her way up to manager.

As their family business grew, so did her opportunities and success; eventually she bought her own KFC. “I liked the idea of the way our franchise family helped each other,” she said. “Managers would get a chance to own a restaurant when a franchisee retired or moved on.

Family would bring other members of their family on. It was people moving people.”

Bagshaw had a passion for journalism and was the editor of her high school newspaper. A self-described “country bumpkin,” Bagshaw felt that becoming editor

“The Quarterly kept us cohesive as a liaison for communication when it would have been easy to splinter. We covered a lot of fun stories.” — Jeanine Bagshaw 26 AKFCF Quarterly Summer 2024

Darlene Pfeiffer

of the AKFCF Quarterly was her “cup of tea.” For her, the most important thing was continuing the tradition of binding the franchisees together. “The Quarterly kept us cohesive as a liaison for communication when it would have been easy to splinter,” she says. “We covered a lot of fun stories.”

The publication put together a variety of articles that concerned building the business mixed with human-interest pieces. The focus of most of the articles was to help franchisees become successful and to share experiences.

This continued the Colonel’s efforts of building our franchise family. Another key component was addressing the many changes that come all too fast in the restaurant business.

A young Jeannine Bagshaw with the Colonel

SUMMER 20

Keeping up with the many leadership changes at KFCC presented another challenge to the AKFCF Quarterly staff.

Bagshaw said that the anniversary issues were her favorites. “This topic always gave the an opportunity to remember our roots, and in my mind, ‘re-solidify’ the franchise family,” she said.

The fall 2002 issue was the first to feature a franchisee, Pete Harman, on the cover instead of an image of the Colonel or the usual graphics. The issue contained many fun articles about the Colonel’s family and the history of KFC, the history of the Bucket, other early franchisees along with their stories, and a look at some of “Our Famous Brethren” such as Dave Thomas, Jim Collins, and others.

The summer 2003 issue, which focused on “Yum! Brands Power,” studied Yum! and the various other brands. From articles on Multibranding to Contract Comparison and Asset Optimization, it remains a great reference issue, said Bagshaw.

The transition to Lionheart Publishing in December 2003 improved the graphic design and presentation of the publication.

“It was a busy and exciting time, and that magazine has a special place in my memories,” Bagshaw said. The summer 2005 issue, featuring the article, “Our Family Turns 30” was another fun issue, which featured the rich history both in family and in business, according to Bagshaw.

By this time, the magazine had grown from 44 pages to consistently more than 80 pages. Under Bagshaw’s tutelage, the AKFCF Quarterly came to be recognized as the leader in franchise association publications. Getting information about the franchisees to each other and binding them together with communication was an integral part of each issue.

Keeping the publication balanced was important to Bagshaw as a new editor. She wanted the articles to present both sides of controversial issues and let readers draw their own conclusions. “Here’s the salt and here’s the pepper; you guys decide,” she said. This seasoning proved to be a winning recipe for the AKFCF Quarterly.

Eventually, a growing family and the demands that come with that led Bagshaw to decide to pass the responsibilities of the magazine to another eager editor. She decided to spend more time raising her children, Rob, Jordan Anne, Jessica and Kristin. In 2005, Michelle Hunt was introduced as the new editor.

The publication put together a variety of articles that concerned building the business mixed with humaninterest pieces. The focus of most of the articles was to help franchisees become successful and to share experiences.

12

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Summer 2024 AKFCF Quarterly 27

Hunt, who had been the assistant editor of the AKFCF Quarterly since 2000, is a third-generation KFC franchisee. Her father and grandfather each served as the Upper Midwest regional president as well as the ­AKFCF president and her father is the ­AKFCF and Greater Midwest secretary.

She became involved in the family business in 1997. Today, she is co-owner and vice president of Central Iowa KFC, Inc. and the Administrative Manager of the AKFCF. “I generally have my finger in just about

A Lasting Partnership Built On Success.

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

KochFoods.com 28 AKFCF Quarterly Summer 2024

everything going on within the business,” she said.

Her husband, Matt, joined the company in 2002 to serve as an Area Coach and is now vice president of operations. Along with their two boys, Davis and Gavin, and now daughter-in-law, Natasha, the Hunt family enjoys their work and still finds time to raise their own herd of show cattle among other endeavors.

Hunt credited Bagshaw with mentoring her through the huge learning curve to transition from assistant editor to editor. “She challenged me to take on things I didn’t think I was ready for and made me step out of my comfort zone,” Hunt said. “The experience has molded the person I am today, and I am truly grateful for her leadership.”

Hunt officially took over the helm as editor of the AKFCF Quarterly in the end of 2005.

She was anxious to start mentoring her own apprentices, Sharon Clawson and Therese Schick. Both rose to the challenge as assistant editors, said Hunt, and partnered with her in putting out the magazine.

Schick grew up in the Harmon organization working in many of its Sacramento and Modesto, California, locations with her grandparents and parents. Schick left the Quarterly after adopting three children and needing to devote more time to her family.

Sharon Clawson and her husband, Bob, were from central Illinois. “With our girls grown and away at college, Bob and I were able to take advantage of an opportunity of a lifetime,” Clawson said. They had a partnership opportunity with the Bartlett organization and took it. “Out of the Quarterly team, I have the least amount of tenure in the KFC business,” she said. “However, working on the Quarterly for the past several years helped me get caught up to speed. I have by far met more people and learned more about the organization in these few years on the Quarterly team than I did in the first eight.”

In May of 2009, Hunt, Schick, and Clawson conducted a strategic planning session to update the mission, purpose, future content and direction of the magazine. They developed the current mission statement of the Quarterly: “The AKFCF Quarterly is the voice of today’s franchisee family and supports the mission of the Association of Kentucky Fried Chicken Franchisees, Inc.” Maintaining a bench of future assistant editors became an important priority.

Next in line for the assistant editor position was Julie (Rogers) Mantlo, a second-generation franchisee from Bowling Green, Kentucky. Julie started with the Winter 2017 issue and has helped grow the Quarterly and sustain the AKFCF eNewsletter, which she coordinates monthly. Her assistance allows Hunt to focus on the magazine and ensure it remains a valuable communication tool.

Earlier in 2017, Hunt set out to find a new publisher for the Quarterly. Response to the RFP included six publishers from across the country. Ultimately, the field was narrowed, and New South Publishing was selected to begin publishing the Quarterly in 2018. The magazine remains in the capable hands of New South and their team who help bring each print and digital issue as well as the eNewsletter to fruition.

The magazine continues to focus on presenting franchisee-focused information and connecting our family members through business building and human-interest articles as well as committee updates from the various representatives. It is always our intent to be the franchisees’ voice and extend the Association’s boundaries across the world.

Though we are rooted in our print publication, we also have moved forward with technology since the last editor transition in 2005.

The AKFCF Quarterly is published in a digital magazine format, available in the member’s only area of the AKFCF website. This is a great resource when you cannot immediately grab a hard copy. We also have added a monthly AKFCF eNewsletter for more timely and quick dissemination of information.

“This has been a great journey for me and I’m so proud of what we accomplish each issue and each year,” Hunt said. “Thanks to our vendor partners showing their loyalty to our Association through advertising, we are able to bring the franchisees a plethora of useful information in every issue. We hope the membership enjoys this anniversary issue and a look back on the rich history of our family and the Association.”

It is perhaps an understatement to say that a lot has changed since this publication’s early days. However, one constant always has been the editors’ determination to keep franchisees well informed on all the key issues, to bring balanced reports regarding business concerns, and to give a voice to those franchisees who feel they’re not being heard. Here’s to many more years of the AKFCF Quarterly! n

“We hope the membership enjoys this anniversary issue and a look back on the rich history of our family and the Association.”

— Michelle Hunt

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1929 1930 1931 1932 1933 1934 1

AKFCF Through The Years

935 19 3 6

19 3 7 193 9 1 9

40

94 6 194 45 1 19

1 9 41 1942 1943 1944

9 948 1949 1950 1951 1 71

52

1 953 1 9 5 4

1

955 1956 1957 1958 195

1929 The Colonel begins serving food to the traveling public on his dining room table behind his service station in Corbin, KY. 1937 The Colonel develops and copyrights, The Hard Way, his business philosophy.

1939 The Colonel adapts pressure cooking technology to fry his secret recipe, spending months developing the times, temperature, and pressure required.

960 1961 19 91

1940 On July 4th the Sanders Café in Corbin, KY reopens in a new building featuring pressurefried chicken with the Colonel’s secret recipe.

19 62 1963

6 4 1965

1952 Colonel Sanders hits the road and begins his quest to franchise his chicken recipe.

1952 Pete Harman becomes first franchisee, helps coin the name Kentucky Fried Chicken and begins selling KFC at his restaurant in Salt Lake City.

1956 After the highway bypassed his location, Colonel Sanders, then 65, sold his restaurant and motel at auction and began franchising in earnest.

1957 Pete Harman develops the bucket and it quickly becomes a KFC packaging icon with the Colonel’s face.

1959 Publication of the first issue of The Bucket magazine for franchises touting KFC as America’s Hospitality Dish is sold at 204 franchised outlets.

1964 Colonel Harland Sanders sells his business to John Y. Brown and Jack Massey for $2 million and take company public. Colonel advises franchisees to form an association to work together and develop the brand based on the Hard Way principles and culture he believed in.

1964 The first free-standing KFC restaurants are built.

1964 Kentucky Fried Chicken has 300 franchisees.

1964 NAC (National Advertising Cooperative) was formed.

Franchisees were asked to voluntarily contribute $25 per restaurant per month, which the company matched. The NAC was chaired by a franchisee & retained the right to determine how the money was spent.

1965 Southeastern Franchisee Association formally organizes and becomes the model for other regional associations.

1965 Colonel Sanders featured in television commercials for Kentucky Fried Chicken.

1966 KFCC purchased its first restaurants.

1968 Kentucky Fried Chicken system doubles in units to almost 2,000 between 1966 & 1968.

1970s Load-compensating computer technology, developed to ensure the ability to duplicate the Colonel’s recipe, is initiated at KFC restaurants throughout the decade.

1971 Heublien acquires KFC for $285 million.

1940 30 AKFCF Quarterly Summer 2024

1972 Settlement of the G&K (two franchisees from FL, Gyarmathy and Keiffer) case commits KFCC to the NFAC consultative process and allows franchisees to purchase supplies and equipment from any approved source, not just KFCC.

1974 Upper Midwest Franchisee Association forms.

1974 The Association of Kentucky Fried Chicken Franchisees forms. Don Hines is elected the AKFCFs first president.

1982 R.J. Reynolds purchases Heublein.

1989 In February, franchisees receive notice that PepsiCo intends to unilaterally change the negotiated 1976 Franchise Agreement. After KFCC refuses to negotiate, AKFCF launches eight-year federal litigation to protect the negotiated terms.

1982 Caribla Franchisee Association forms

1984 AKFCF, NFAC & KFCC negotiate a Memorandum of Understanding to regulate ancillary agreements in the KFC system.

1984 The AKFCF celebrates its 10th anniversary.

1986 PepsiCo purchases KFC from R.J. Reynolds for $840 million.

1 9 77 1978 1979 19801

1989 John Cranor becomes KFCC president & CEO.

1989 On December 1, the AKFCF files suit against PepsiCo, claiming its actions have breached the 1976 Franchise Agreement and the 1984 Memorandum of Understanding.

1991 1992 1993 1994 1

5 1996 1997 1 99

1984 Southern California Franchisee Association joins the AKFCF.

76

2 0 00

1977 KFCC announces they will exit the equipment & supply business paving the way for the KFC National Purchasing Cooperative.

1989 PepsiCo moves corporate KFC restaurants to Pepsi Food Service. This move impacted approximately 30 percent of the Cooperative’s business.

0

1976 The AKFCF & KFCC reach precedent-setting standard franchise agreement for all U.S. KFC restaurants known as the 1976 Franchise Agreement, negotiated by a committee from the NFAC and legal representation of the AKFCF.

1981 KFC established a special endowment with the March of Dimes to provide grants for research and health education programs to assist in efforts to prevent birth defects, premature births and other child health issues.

198 9 1 9 9

1975 Southwest Franchisee Association forms.

1989 Canadian Franchisee Association forms.

88

1975 NFAC leadership forms the Equipment and Supply Committee in response to overpriced goods & services in the existing corporate supply system.

1988 KFC became the first national sponsor of the Drug Abuse Resistance Education (D.A.R.E) program.

1 1982 198 98

1975 First franchisee-driven elections held for NFAC representatives (per JRN).

1980 Franchisee communication gets an upgrade with the founding of the AKFCF Newsletter (what will become the AKFCF Quarterly).

1988 Darlene Pfeiffer becomes the first woman to serve as AKFCF president.

74 19 5 1 9 7

1975 Great Lakes Franchisee Association forms, later incorporated in 1976.

1980 On December 16 the Colonel passes away in Shelbyville, KY.

1987 The first KFC opens in China.

19

1975 Committee formed to negotiate franchise agreement with KFCC leadership.

1980 The AKFCF throws a 90th birthday party for the Colonel, donating $55,000 in his honor to the March of Dimes.

1980

1966 1967 1968 1969 1970 197 1

1974 Northeast Franchisee Association forms.

1980 Franchisees & KFCC form the KFC National Purchasing Cooperative, assuring sustainable, low-cost supplies from independent sources overseen by a majority franchisee board of directors.

(Apr. 1, 1980 per RSCS).

998 199 9

1974 Franchisees meet in Little Rock, AR, to discuss forming a national franchisee organization.

1978 Purchasing Cooperative begins formation to supply KFC franchisee and corporate restaurants (per JRN).

9 984 1985 1986 1987 1 31

1973 Northwest Franchisee Association forms.

1977 Mike Miles becomes new chairman of the board for KFCC.

3 1972 19 7

1972 The formation of the NFAC, initially members were appointed by KFCC and included 9 elected regional franchisee representatives and three appointed corporate members. (per JRN)

1989 The AKFCF Newsletter evolves into the AKFCF Quarterly.

Summer 2024 AKFCF Quarterly 31

1966 1967 1968 1969 1970 197 1

1990s Franchisee Innovation: Colonel’s Rotisserie Gold inspired by franchisee John Marsella, Buffets inspired

by Billy Ball, Crispy Strips innovated by Ben Edwards & Jerry Hayie, KT multibranding inspired by Al Luihn.

1990 Franchisees observe Colonel’s 100th birthday celebration.

3 1972 19 7

19 74 19 5 1 9 7

76

1 1982 198 98

1 9 77 1978 1979 19801

9 984 1985 1986 1987 1 31

88

198 9 1 9 9

0

1991 1992 1993 1994 1

1990 JRN restores Sanders Café in Corbin, KY, and it’s named to the National Register of Historic Places.

1991 When KFCC decided at the last minute not to sponsor the system’s annual convention, AKFCF stepped up and hosted the first AKFCF Convention in Las Vegas and has remained the sole host of the system convention.

5 1996 1997 1 99

1991 With a logo change, Kentucky Fried Chicken becomes KFC, with the Colonel remaining a symbol of the brand.

998 199 9

2 0 00

1992 KFC National Purchasing Cooperative begins servicing other concepts and, in the fall, Taco Bell becomes a major concept customer.

1993 KFC franchisees in Mexico meet to discuss forming an association.

1993 KFC National Purchasing Cooperative changes its name to Food Service Purchasing Cooperative (FSPC) to better reflect expansion to other concepts.

1994 AKFCF turns 20.

1994 David Novak becomes president of KFCC. 1995 Franchisees Ben Edwards and Jerry Haynie develop Crispy Strips.

1995 KFC National Purchasing Co-op negotiates the first beverage contract with Pepsi, a two-year deal for 1996-97.

1996 Mexico Franchisees establish the KFC and Pizza Hut Franchisee Association of Mexico.

1997 1997 Settlement Agreement ends 8-year litigation and forces KFCC to drop imposed changes to the franchise agreement and reaffirms protections established in that 1976 agreement. PepsiCo immediately announced the spin-off of restaurants into a subsidiary that was originally called Tricon Global Restaurants.

1997 The Series 6000 design is revealed and franchisees are given until June 2008 to complete a renewal upgrade as part of the 1997 Settlement Agreement.

1997 As part of the Settlement Agreement, the NAC and the NFAC merge to become the NCAC. Keith Chambers serves as the first NCAC Vice Chair.

1997 In late 1997, a committee was formed to negotiate a longer term beverage agreement for franchisees. A 5-year agreement was made with Pepsi, with Dr Pepper matching the program for franchisees.

1991 32 AKFCF Quarterly Summer 2024

1998 The KFC National Purchasing Cooperative, now FSPC, unites with PepsiCo & its restaurant brands to create the unified purchasing cooperative supplying KFC, Taco Bell and Pizza Hut. 1998 Fred Bauer creates and awards the first AKFCF Shining Star to Keith Chambers.

1998 Fred Bauer awards the first AKFCF President’s Award to John R. Neal.

1998 KFC joins the other brands to negotiate yet another beverage agreement. As a part of the Pepsi contract, KFC Beverage Subcommittee formed under the NCAC and AKFCF received 5 cents for every gallon purchased to support national and regional meetings.

1998 AKFCF formalized archiving process began to immortalize legal and historical documentation.

1998 The Colonel’s Kids charity was established honoring the Colonel’s legacy and dedication to children. Colonel’s Kids was dedicated to helping provide better access to high-quality childcare.

1999 Unified Foodservice Purchasing Cooperative (UFPC) officially begins operations as the purchasing entity for KFC, Pizza Hut, and Taco Bell, both corporate and franchise outlets in the United States.

2000 After 23 years, Young & Rubicam is replaced by BBDO as the advertising agency for KFC. 2002 Multibranding heats up as Long John Silver’s and A&W All American Food join KFC, Pizza Hut & Taco Bell under the Tricon umbrella.

2002 Formation of Three Concept Council.

2002 Kids Laptop Meal is introduced.

7 199

007 2008 2009 201 0 62

2002

3 2014 2015 2016 2017

2006 AKFCF contracts with Washington, D.C. lobbying firm Polaris Government Consulting & lobbyist Dan Gans to represent its interest with federal legislators.

2

2021 20 2 2

2006 AKFCF Government Affairs Committee and PAC established.

8 2019 2020 01

2006 The Colonel’s Scholars program was formed from the Colonel’s Kids program shifting the focus from childcare to scholarships. KFCC provided start-up funds and the program was sustained through a surcharge on Kids Meals.

200

2004 Y04, a new design with an eye on multibranding, is introduced giving franchisees another option for the 2008 renewal upgrade.

2006 AKFCF board of directors initiates a strategic plan, which now happens every three to five years.

2 0 23

2004 The AKFCF turns 30.

4 200 5 00

2004 The International Association of Kentucky Fried Chicken Franchisees forms.

2005 The bucket’s role as KFC’s signature piece of packaging is reaffirmed.

2006 The first Colonel’s Legacy Award is given to Inman Hodges, Jr.

0 0 2001 2002 2003 2

1

2003 Annual Caribla KFC Convention combined with the Annual AKFCF Convention.

20

11 2012 2 0

2003 Formation of the Five Concept Council with the joining of LJS and A&W.

2005 Weber Shandwick is named the new PR agency after a 26-year relationship with Edelman.

20

2003 BBDO is replaced by Foote Cone & Belding as KFC’s advertising agency and introduces “You Gotta KFC What’s Cookin’” campaign.

8 19 9 9

2002 Tricon Global Restaurants changes its name to Yum! Brands, Inc.

2007 KFC goes transfat free.

Summer 2024 AKFCF Quarterly 33

2009 AKFCF Quarterly celebrates its 20th anniversary.

2009 AKFCF Quarterly has its first-ever strategic planning session.

2009 UFPC celebrates its 10th anniversary.

2010 Arcature hired by AKFCF to consult on marketing due to lack of KFCC cooperation and direction.

2010 Formed Local Agency Council to help with local marketing.

1990 1991 1992 1993 1994 199 5

2010 UFPC begins serving and supporting franchisees in Latin America and the Caribbean.

2011 KFCC/NCAC lawsuit resolved — AKFCF provided counsel and access to archived documents. Material that was critical to the franchisees’ successful claims.

1996 1 9 9

7

2009

199

8 19 9 9

20

4 200 5 00

0 0 2001 2002 2003 2

200

007 2008 2009 201 0 62

20 11 2012 2 0

1

3 2014 2015 2016 2017

8 2019 2020 01

2

2008 Negotiated settlement agreement regarding refranchising, gaining valuable rights including right for legacy franchisees to keep the 76(5p) agreement for at least 10 years, and creation of the 5/15 contract granting rights related to territorial protection, encroachment, and economic security.

2008 Per 1997 Settlement Agreement, franchisees given until June 1, 2008 to complete “renewal upgrade” which now includes the Vision design option.

2021 20 2 2

2 0 23

2008 Gift Card Program launched with the UFPC. 2009 KFC launches Kentucky Grilled Chicken campaign.

2009 Pushed for expanded impact guideline vendors.

2009 AKFCF turns 35.

34 AKFCF Quarterly Summer 2024

2012 Definitive Agreement including Merit Agreement.

2012 The Beverage Subcommittee rolled up into the National Marketing Subcommittee.

2013 Millward Brown Menu Optimization study — funded by AKFCF led to RMS. 2013 UFPC becomes Restaurant Supply Chain Solutions (RSCS), Steve McCormick named President & CEO. 2013 The REACH and REACH High programs were established in 2013 to replace the Colonel’s Scholars program. The REACH educational grants were college scholarships, while the REACH Higher program was designed to help team members obtain their high school equivalency or GED. 2014 Econometric Study — created, funded and directed

by AKFCF — showed proof of franchisee distress and was instrumental in positioning franchisees in our negotiation of the Acceleration Agreement.

2015 Acceleration Agreement and all associated benefits (including equipment, tens of millions in ad subsidies, a reduced scope remodel obligation, and the rights of the 5/15 and 76(5p) through at least 2050).

2016-2018 Started process of updating many ancillary agreements per Memorandum of Understanding and came to an agreement on family transfer and catering/delivery issues.

2016 Negotiated impact policies to prevent franchisee cannibalization.

2016 Allowed KFCC to reduce store holdings to 50 in exchange for 5/15 10-year renewal right.

2017 AKFCF supported ReColonelization Rallies.

2017 Activation of the permanent REC committee — the culmination of why the AKFCF commissioned the econometric study and how it will continue to pay dividends in the future.

2017 AKFCF convinced KFCC to put off fee increases until after the large of amount of renewals in 2017, and to offer early renewals as well.

2018-present Ancillary contract review — AKFCF now reviewing all contracts for any service that franchisees will be part of.

2018 Negotiated nontraditional development policies.

2020 Created fully integrated Tech Committee, which participated in the negotiation and oversight of the rollout of KFC.com and the KFC app.

2020 Negotiated franchisee participation agreements enabling the use of delivery services such as Door Dash, GrubHub, Uber Eats, and Postmates.

7 199

8 19 9 9

2020-21 Provided hundreds of hours of education and information to get members through the pandemic, including: multiple seminars on PPP, ERTC and RRF, negotiating forbearance and repayment agreements with Yum! and McLane.

20

4 200 5 00

007 2008 2009 201 0 62

2023-24 Technology Committee overseeing development and updating of App, website and other digital channels.

2021 20 2 2

2 0 23

2023 Developed new tech guardrails for Merit agreement to be implemented with Tech Acceleration Agreement.

2

8 2019 2020 01

bringing new POS/BOH/Mobile Manager and EDGE computing system in a manageable way.

3 2014 2015 2016 2017

1

2022-2023 Negotiated AADA, TAA, and RTA agreements, locking in one-year deferral for virtually all remodels and

2021

11 2012 2 0

2018-present Continued full-scale contract review for all KFCC initiatives that directly affect franchisees.

200

20

2021 Creating and executing the first ever virtual AKFCF Convention in 2021.

2021 Partnered with KFCC to create the RGM Connect virtual conference in 2021.

0 0 2001 2002 2003 2

2024 Negotiated new Gift Card program. n

2024 Coordinating with KFCC on voluntary Kiosk rollout.

SAVE UP TO 15% ON INSURANCE PREMIUMS Protect your business and staff by automating the most dangerous job in the kitchen. Automated cooking oil management and hood and flue cleaning significantly reduces the risk of burns, slips, falls, and fires.

TA K E C O NTRO L AT WWW.RTI-INC.COM/KFC Summer 2024 AKFCF Quarterly 35

Celebrating 25 Years Of Changing Lives

By Emma Horn, Executive Director

T

his year marks 50 years of the AKFCF, and 25 years of your KFC Foundation! We’re honored and proud to say that the KFC

Foundation has provided over $36 million to more than 16,000 students, KFC restaurant employees, and non-profits through education, financial & hardship assistance, and community giving initiatives.

36 AKFCF Quarterly Summer 2024

Summer 2024 AKFCF Quarterly 37

Thanks to YOU! Your support through the KFC Foundation Annual Donation Program, Round Up fundraising, Convention fundraisers, and more has changed thousands and thousands of lives —and there’s much more to come.

Thank you for making our work possible. Thank you for unlocking these life-changing programs for your restaurant employees and communities. Thank you for believing in our mission and our vision to be the secret recipe for good.

Here’s to another 25 years of changing lives for the better, together.

1998: KFC Foundation was established.

2015: Launched Hardship Assistance program.

Launched GED Achievement program.

2018: Launched first 1999-2005: Colonel’s

Revamped Kentucky Fried Wishes to empower KFC restaurant teams to make a big difference in their communities by granting $10,000 wishes to 11 local non-profits.

personal finance program.

Granted $500,000 in Kentucky Fried Wishes to 50 non-profits.

Raised $3 million through Round Up fundraising.

2023: Launched tuition-free college program.

Kids program provided universal access to high-quality care for families who could otherwise not afford it.

2006-2012: Colonel’s

Scholars program provided 4-year college scholarships to selected winners, totaling $12.5 million in scholarships to 500 recipients over six years.

2019: Launched Kentucky

Fried Wishes program, initially granting individual wishes for KFC restaurant employees.

2020: In partnership with

2013: KFC Foundation

NCAC, provided $500,000 in grocery assistance funds to KFC restaurant employees at the height of the COVID-19 pandemic.

Raised $1.5 million in first six-week Round Up fundraising campaign.

2022: Fries replaced

coleslaw as the fundraising menu item for the KFC Foundation #FriesChangeLives.

Awarded record-breaking $2.5 million in scholarships — and introduced the $20,000 scholarship tier.

commits to taking care of KFC restaurant employees.

Launched KFC Foundation Scholarship program, awarding 500+ KFC restaurant employees with $2,000 in scholarships in its first year, totaling $1 million.

A surcharge on coleslaw became the main funding mechanism for the KFC Foundation.

2021: Launched $1 for $1

Launched personal development program, Become Your Best Self.

Launched partnership with Crisis Text Line to provide 24/7 text-based crisis and mental health support to restaurant employees.

Savings Match program.

Granted $1 million in Kentucky Fried Wishes to 100 non-profits.

Raised $5 million through Round Up fundraising.

38 AKFCF Quarterly Summer 2024

n

Jennifer Hall Hitzler is an enthusiastic champion for the KFC Foundation and the RGM at KFC in Moncks Corner, South Carolina (Star Brands II). Jennifer has nominated two winning non-profits, Changed Lives Ministry (2022) and Dorchester Paws (2023), to receive $10,000 grants through KenJennifer Hall Hitzler tucky Fried Wishes, leaving a lasting impact on her community.

She’s also a proud mother who will celebrate her daughter’s college graduation this year, made possible in part by KFC Foundation Scholarships. Additionally, Jennifer’s son completed his high school credential through our GED Achievement program.

“Watching my daughter receive the KFC Foundation Scholarship for three consecutive years and witnessing my son complete his high school credential through the GED Achievement program fills me with gratitude. The KFC Foundation’s support not only has benefited our family but also has uplifted our community. I’ve had the honor of nominating two non-profits, both of which received $10,000 grants through Kentucky Fried Wishes, funding projects that shape brighter futures for many.”

Enrique Lavin is a team member of 15 years at KFC in Bellingham, Washington (NRI – Sibert), who believes it’s never too late to learn something new. Enrique’s journey with us started when he seized the opportunity to earn his high school credential through our GED Achievement program in 2022. But his thirst for knowledge didn’t end there! With Enrique Lavin support from our scholarships, Enrique has embarked on his next chapter by pursuing a degree in accounting.

“Thanks to the KFC Foundation, my life has taken a positive turn.

They supported me through my GED, covering all expenses, and even awarded me scholarships for my accounting certificate. The impact has been truly life-changing!”

Kenesha Thompson is an assistant manager at KFC in Fort Lauderdale, Florida (Fulenwider Enterprises). In the fall of 2023, her mother passed away. Her Area Coach told her about the KFC Foundation’s hardship assistance program that provides financial assistance to KFC restaurant employees in times of need. She completed the application and was overwhelmingly grateful when she got word that the KFC Foundation paid the remaining balance on her mother’s funeral invoice, allowing her funeral ceremony to commence.

“My family could not believe it when I told them the KFC Foundation paid for my mom’s funeral. I cannot stop talking about it. I tell friends, strangers, people on the street that the KFC Foundation is the greatest.

No words can tell you how I feel about this program.”

Summer 2024 AKFCF Quarterly 39

Isaiah Homer, RGM at KFC in Nampa, Idaho (Stewart Restaurant Group), had never considered an online degree until reading about the KFC Foundation’s tuition-free college program.

He earned his associate’s degree from a two-year college in 2019 (receiving a KFC Foundation Scholarship in the process) and had always intended to continue his education — but he found himself putting this dream on the backburner due to time constraints.

“I really wanted to get my undergraduate degree right away, but I became an RGM and didn’t have a ton of time on my hands. I convinced myself it was a gap year, but 2020, 2021, and 2022 went by and I was still putting off my bachelor’s degree. That is, until 2023 when the KFC Foundation and WGU created their partnership for tuition-free college.”

In 2023, Isaiah enrolled in the tuition-free college program because of the flexibility (and free tuition!) and earned his bachelor’s degree in business administration one year later. Isaiah walked the stage at Western Governor University’s (WGU) commencement ceremony in Anaheim, California, in March 2024.

Isaiah plans to continue growing his career with KFC and Stewart Restaurant Group, with his sights set on becoming a director of operations in the future — and someday even higher!

Isaiah Homer

DeMarre Richmond is a dedicated advocate and public health analyst at the D.C. Department of Health for the (Child, Adolescent and School Health Division). DeMarre’s journey with us began when he was a high-school senior in 2011 and was awarded a four-year scholarship through the KFC Colonel’s Scholars program to attend North Carolina Central University. Faced with financial challenges after losing his mother to lung cancer, we were privileged to be able to support DeMarre’s undergraduate journey, empowering him to realize his dream of making a positive impact on others.

Today, DeMarre is pursuing a Doctorate of Public Health (DrPH) from Morgan State University School of Community Health and Policy, with plans to work for the federal government and open a community-based center focused on maternal health and harm reduction.

“As a first-generation college student who lost my mother to a brave battle against cancer, the financial strain made it challenging to afford my education and the tools required for my classes. The KFC Foundation came to my aid, offering a scholarship that supported my undergraduate journey and surprised me with a much-needed laptop. My gratitude knows no bounds, and I am equally passionate about my work in public health, driven by the desire to DeMarre Richmond give back to my community.”

Samantha Poore is an extraordinary champion for the KFC Foundation and assistant manager at KFC in Ringgold, Georgia (JRN). Samantha’s dedication to our programs is unmatched — from nominating LIFT Youth Center, a winning grant recipient for Kentucky Fried Wishes to winning multiple KFC Foundation Scholarships to participating in our Savings Match program, she’s embraced every opportunity and encourages her team to do the same.

Since 2020, Samantha’s restaurant has had 10 scholarships awarded to team members, five of them in 2023 alone! Samantha’s leadership and advocacy make her a true ambassador for the KFC Foundation.

“I’ve been a champion for the KFC Foundation since receiving my first scholarship. Since then, I’ve made it a goal to ensure my team takes advantage of the opportunities offered. We’ve had ten scholarships awarded in our restaurant, five of which were awarded in 2023. I’ll always be grateful to the KFC Foundation for allowing my team and me to open doors to pursue our dreams.”

Samantha Poore

40 AKFCF Quarterly Summer 2024

Shantel Fixsen (second from left)

Shantel Fixsen is an RGM in Eugene, Oregon (Stewart Restaurant Group). In 2023, her team raised over $30,000 for the KFC Foundation through Round Up! This year, they’re rocking the Round Up once again. By the time this issue prints, we imagine they’ll have passed the $15,000 milestone!

“We are passionate about what we do here — serving joy and giving back to our community. We have seen firsthand what an impact and positive effect asking every guest to donate every time has on people’s lives. We’ve handed out a $10,000 check to a charity in our area and get the honor of doing so again in a couple months. We’re moved by the opportunity to give something back.” n

Join in the 25th anniversary celebrations • Donate $25 and receive a commemorative limited edition 25th anniversary pin.

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

• Follow along on our social media platforms as we highlight people who have been part of our journey.

Be sure to like, comment, and share!

• Nominate someone in your organization — from team member to CEO — to be featured on our social channels.

Scan the QR code to check off one or all of these celebratory items!

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

Summer 2024 AKFCF Quarterly 41

RSCS MEMBER PROGRAMS

RESTAURANT SUPPLY CHAIN SOLUTIONS

Providing world-class service to our members and Yum! Brands

By Mark Chrisman

R

estaurant Supply Chain Solutions (RSCS) is the exclusive supply chain management organization for Yum! Brands, Inc. and its four national restaurant brands (KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill). With world-class buying expertise, supplier-relationship management, and impactful strategic processes, RSCS negotiates pricing and drives the supply chain for over 22,000 products including food, packaging, and restaurant equipment to support these national restaurant brands and our Franchisee Members.

RSCS, formerly Unified Foodservice Purchasing Co-op, LLC, was established on Mar. 1, 1999, with a merger of Tricon’s (now Yum! Brands, Inc.) purchasing group, Supply Chain Management, and the Food Service Purchasing Cooperative, Inc., a co-op owned

by KFC and Taco Bell franchisees. Although our name has changed through the years, our direction has never wavered — we work to provide significant value to all franchise and corporate KFC restaurants by establishing best practices and combined purchasing efforts.

A Yum! Brands Co-op Cooperatives are organizations controlled by their members, who actively take part in setting their policies and making decisions.

Although our name has changed through the years, our direction has never wavered — we work to provide significant value to all franchise and corporate KFC restaurants by establishing best practices and combined purchasing efforts.

42 AKFCF Quarterly Summer 2024

Our members include the KFC National Purchasing Co-op, Inc., and the shareholders of the KFC Co-op. We rely on the support and strategic partnership of our co-op partners, and we work hard, everyday, to proudly serve our members!

Our goal as a co-op is to drive margin improvement and supply chain excellence, negotiating appropriate purchase commitments and providing procurement functions that reduce risks and costs to our members. We also provide members with advisory services related to the distribution of food, packaging, equipment, nonfood items, and additional restaurant services including industry data on distribution costs and service levels. We operate with a “one system” approach, working collaboratively to support our members, each other, and our stakeholder groups to drive breakthrough results.

Our KFC Operations team works in the Restaurant Support Center within the KFCC office in Louisville — a grand space with historical significance for this iconic brand.

Working on projects, such as bringing the Chizza to market, this team partners daily with the KFC Food Innovation, Restaurant Operations, Finance, Development, Engineering, Marketing and Quality Control teams, as well as franchisee committees to drive excellence in supply chain execution. From the first planning stages, our team coordinates on a cross-functional level to support all tests and national promotions throughout each year.

From farm to restaurant, the Food and Packaging Procurement teams, along with the Commodity Risk Management team, develops and drives procurement strategies that drive significant value to our members year after year. Whether it is a new type of protein or ingredient under evaluation, a recent technology that increases efficiencies, or the modification of a plastic/paper item that could save millions of dollars, our strategic procurement teams deliver powerful and tangible results.

The Development and Equipment Solutions department manages supplier relationships, product availability, contract negotiations, member programs, facilities and parts connections, store development, customer service, and so much more! Within this department the Equipment Purchasing team sources equipment and smallwares for KFC restaurants — negotiating thousands of equipment items! Equipment categories include front-of-house

décor, menu boards, and POS equipment including all food prep equipment, ovens, refrigeration, and shelving, as well as outside of the building items such as drive-thru communication, signage, and HVAC. The Restaurant Development team ensures restaurants open on time by providing exceptional project execution and customer service for remodels and new builds. Restaurant Development Specialists interact with various stakeholders, from restaurant owners to general contractors, throughout the entirety of a project. Our Customer Support team manages an array of front-facing duties members face in the day-to-day operations of their restaurants. Customer Support representatives maintain product technical knowledge that is critical to offering quick and accurate help to our members.

Every day, hundreds of shipments move from supplier plant locations to over 50 distribution centers that support our members’ 20,000-plus restaurants. The Product Supply team assists with many aspects of the supply chain distribution. From contract nego-

tiations to resolving quality assurance issues, this team is focused on the best distribution options for our members and ensuring our members are paying the proper price based on negotiated supplier contracts and distribution agreements.

Collaborating with all functional areas and member stakeholders, the Finance Team is a strategic thought partner and trusted advisor.

Offering planning and forecasting services and operational reporting, this team is critical to the financial success of our members. Whether reporting on cost of goods sold or supporting patronage and member shareholder matters, the Finance Team makes certain that our internal teams, and our members, receive accurate and relevant information and the best-possible financial planning services.

Our Human Resources partners ensure that RSCS team members are world-class in every way.

Strategic talent development and growth opportunities, coupled with exceptional benefit programs, employee engagement and culture, ensure that RSCS provides team members with great careers while delivering impressive results.

Delivering breakthrough results in a world-class way Our “world-class with class” culture strategy illustrates how we

$1,856 Estimated annual savings per store 1

Weekly Service Fees

STORE

$ -2002

10

STORES

$ -20,020

New lower weekly fees and shorter renewal terms!

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

Used Cooking Oil Credit **

$ 2,415 $ 1,443

$ 24,150 $ 14,430

Total estimated savings per year

$ 1,856

$ 18,560

Fresh Oil Savings Yr. *

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

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

Summer 2024 AKFCF Quarterly 43

collaborate with our stakeholder groups to deliver breakthrough results every day.

It is our secret recipe; a creed of what we value in our teams and relationships. Serve Our Members is a key pillar of our culture strategy. We work hard to meet and exceed

the expectations of our members, taking personal responsibility for their satisfaction, and working to anticipate and meet their needs.

The RSCS operating strategy defines what we do to support our members. Our

culture strategy illuminates how we work together, ensuring that RSCS is an employer of choice and a great place to work. Our world-class culture is our DNA, and we are proud to celebrate it with our teams and with our KFC franchisee members! n

Significant dates in our history — our history is an evolution of progress that has made us what we are!

1977 & 1978 PepsiCo, Inc. acquires Pizza Hut & Taco Bell KFC National Purchasing Cooperative, Inc. formed to serve as national purchasing cooperative on

April 1, 1980 behalf of KFC retail owners and operators.

Kentucky Fried Chicken Corporation bought by PepsiCo, which has its own internal distribution

1986 system.

PepsiCo switches company-owned stores to their own system. This move affects approximately 30

1989 percent of the Cooperative’s business.

KFC National Purchasing Co-op begins servicing other concepts and, in the fall of 1992, Taco Bell

Fall 1992 becomes a major concept customer.

Expanding to other concepts, KFC National Purchasing Cooperative changes name to Food Service

July 1993 Purchasing Cooperative, Inc. (FSPC), better reflecting the company’s evolving direction.

PepsiCo forms Tricon Global Restaurants, Inc. (now Yum! Brands), purchasing entity moves into

October 1997 Tricon Restaurant Services and renamed Supply Chain Management.

Tricon Global Restaurants, Inc., FSPC and KFC, Pizza Hut and Taco Bell franchisees form a unified

Fall 1998 purchasing cooperative for restaurant products and equipment in the United States.

Unified Foodservice Purchasing Coop, LLC (UFPC) begins operation as purchasing entity for KFC,

March 1999 Pizza Hut and Taco Bell corporate and franchise outlets in the United States.

September UFPC takes responsibility of supply chain management and equipment purchasing, providing 2002 members a one-stop-shop to create and manage stores.

2010 UFPC begins serving and supporting franchisees in Latin American and the Caribbean 2013 UFPC become RSCS, Steve McCormick named President and CEO. March 2020 Yum! Brands acquires The Habit Burger Grill Restaurants 2021 Todd Imhoff named President and CEO of RSCS.

44 AKFCF Quarterly Summer 2024

KFC FOUNDATION

KFC FOUNDATION AWARDS $2.5 MILLION IN SCHOLARSHIPS TO 450+ KFC RESTAURANT EMPLOYEES — THANKS TO YOU! By: Liz Gulick, Communication Manager

W

hile Alondra Brito, team member at KFC in Glendale, Arizona (PAK Foods), may be young, she has persevered through a lot in her 18 years. At age 7, Alondra lost her father to gun violence. At age 11, she moved to the United States with her mom and two siblings in search of better opportunities.

“Moving here was a struggle. At the age of sixteen, I began working and helping my mom pay bills and buy my necessities. It was hard to balance school and my job due to me being a full-time student, an athlete, and being involved in many clubs, such as the National Honors Society and Key Club. I have always been a straight-A student and have been on the honor roll all my life. Even now, I feel like I still struggle to manage everything on my own.

My mother’s dream has always been for me to go to college, but what has inspired me the most is that I have been doing all of this from an early age, and my hard work has been paying off. I am the first in my family to graduate from high school and head out to college. It is something very significant to me because I want my siblings to feel inspired and realize that no matter how hard things can get, there will always be a way to accomplish anything if you work hard and stay positive.”

Indeed, Alondra’s hard work is paying off — this spring, she won a $20,000 KFC Foundation Scholarship! She is planning to attend the University of Arizona in the fall and pursue a degree in psychology, with the goal of helping others and giving back to her community.

Moments like these wouldn’t be possible without people-first franchisees like you. Thanks to the generosity of franchisees participating in our Annual Donation Program and their incredible teams who raise money through Round Up (and coupon books!), more than 450 KFC restaurant employees experienced the joy of winning a KFC Foundation Scholarship.

Stop for a second and think about how impactful that is. Hundreds of people every year win a substantial scholarship (up to $20,000!) because they work for KFC, applied, and were selected as a winner. Those hundreds of people will forever remember that moment. They will remember that KFC opened this door for them.

KFC helped them achieve their dreams. KFC is a brand that cares.

And they will talk about it for years and years. Their friends and family will talk about it. We become a huge part of their story and journey. Can you think of better advertising than that? Talk about boosting brand love, loyalty, and perception!

Here’s what this opportunity means to a few of this year’s scholarship winners:

Alondra Brito

Genesis Santamaria

Summer 2024 AKFCF Quarterly 45

Bryan Payo-Duran Regina Younassoghlou

Kadean Pleasents

Fabianua McCleary

“I would like to thank my KFC, the KFC Foundation, and my managers and crew who believed in me and made all of this possible.

Thanks to the KFC Foundation, I have been able to graduate with my associate’s degree, and I am now on track to getting my bachelor’s at the University of South Florida. Without everyone’s support, this may have all been a dream that wouldn’t have gone so far. I am extremely thankful. Thank you, KFC!” –Genesis Santamaria, 3x scholarship winner, KBP Foods, Lakeland, Florida “As a student who is fully in charge of financing her future, I am extremely grateful for this opportunity to get some assistance from a place that I love working at.” –Bethany Peck, scholarship winner, FMI, Fort Madison, Iowa

Shyann Havens

46 AKFCF Quarterly Summer 2024

“I would like to thank the KFC that I work at and the KFC Foundation for this incredible opportunity. I am able to stay in college with a little less stress on myself financially due to opportunities such as these. My KFC has always encouraged me to be a better person

than I was before and to keep pushing to continue my education past high school. This is one of many opportunities I have been given by this restaurant and I cannot be more thankful for everything they have done for me.” –Bryan Flores, 2x scholarship winner, Harman Management, Hollister, California “Your generosity is not just a gift, but an investment in my future.”

–Shyann Havens, 2x scholarship winner, Lambos Enterprises, Zanesville, Ohio “Last but not least, thank you to the KFC Foundation for giving me an opportunity to get another scholarship. I was blessed to receive a scholarship in 2021. I am also thankful for the KFC Foundation as they gave other people in my family scholarships, and even helped my family after they had a house fire.” –Keziah Cain, 2x scholarship winner & Hardship Assistance Recipient, Stewart Restaurant Group, Willmar, Minnesota New Mentoring Partnership with CoLabL This year, we partnered with CoLabL to offer a unique, engaging mentorship program to all KFC Foundation Scholarship applicants. That’s right — this opportunity was open to everyone who completed a scholarship application, not just the winners!

This program offers participants three different avenues to receive invaluable insights, guidance, and advice. This can be extremely impactful to everyone, especially those individuals who don’t have many (or any) people in their family or circle who have navigated higher education or pursued a specific career path.

Thanks to you…

11

individuals received a life-changing $20,000 scholarship

44

Through CoLabL, participants can attend: Pathways & Perspectives: Engaging 60-minute virtual events where panelists share their career experiences and insights.

The first Pathways & Perspectives session was held in May, and featured Kristia Worthy, KFC US Organizational Development Manager, and Michelle Brigman, Career Coach. The wisdom shared in this session was incredible! Panelists talked about how to turn failure and difficult experiences into learning opportunities, the value of feedback, staying true to yourself, and more.

Here’s what a few participants had to say about it: • “I thank y’all for the opportunity to be in this mentoring session. This is amazing!” –Cadarious • “I love everyone’s advice. I will definitely be using it. Thank you.” –Alondra • “Love all these answers and I’ll definitely be adding them to my notes and including them in my days!” –Genesis Informational Interviews: One-time 1:1 coaching discussion aligned with the participant’s career interests and development goals.

Breakthrough Mentoring: 1:1 career mentoring experience over three months aligned with KFC participant’s career interests and goals.

Thank you for your continued support, generosity, and engagement. You are making a difference in the lives of thousands of KFC restaurant employees and community members every year.

Together, we are the Secret Recipe for Good. n

r eceived a $10,000 scholarship

399

received a $5,000 or $2,500 scholarship

These winners span across…

95 KFC Franchisees/ companies

45 states

And include…

282

f irst-gen college students

99

ESL students

132

repeat scholarship winners

See the full list of 2024 KFC Foundation Scholarship winners on kfcfoundation.org — or scan the QR code

Summer 2024 AKFCF Quarterly 47

FINANCE COMMITTEE REPORT

THE ROAD TO SUCCESS IS ALWAYS UNDER CONSTRUCTION

By Nanette Walker, Finance Committee Chair

A

Our Finance Committee works with and supports the treasurer of the AKFCF in developing annual budgets and makes recommendations to the Executive Committee on fiscal policies.

48 AKFCF Quarterly Summer 2024

s I was just about finished with my Greater Midwest presidency term of two years and six months (and three-plus years as a VP), Past President Keith Cole asked if I would be interested in taking the role as AKFCF Finance Chair. How could I say no? I am so honored to continue to serve our franchise family.

It feels like we just came home from our AKFCF Annual Convention. Wow! How much fun was that? A big thank you to the Convention Committee and especially outgoing AKFCF President Justin Stewart and Executive Director Kelly Rodenberg for paving the way to REACH THE IMPOSSIBLE! We will be talking about all the fun memories for years to come.

Our Finance Committee works with and supports the treasurer of the AKFCF in developing annual budgets and makes recommendations to the Executive Committee on fiscal policies. We have a great diversity of franchisee organizations to continue to tackle any budget issues that arise. Our team of Austin Felker, Jeremy Dimick, Dave Evans, Robert Rodriguez, Michelle Hunt, and Kelly Rodenberg works with your President, Leslie Sharp, to uphold the integrity you should expect this committee to maintain. A huge shout out to our previous treasurer, Roger Sparks, for all his years of hard work, knowledge, leadership, and wisdom! We are excited to see you transition and wish you luck into your new role as AKFCF 1st Vice President!

The Finance Committee held a call in May to review invoices, financial statements, and quarterly budget updates. The committee oversees all aspects of the Association’s financial activities related to income and expenses. Some of the committee’s primary

oversight includes reviewing the national support dues, taxes, CPA audited financials, insurance, legal fees, government affairs, spring/fall board meetings, annual Convention, AKFCF Quarterly, leadership development, committee support, and all other associated operating financials. Each line item of the budget is individually and carefully examined by the committee. The committee also takes advantage of the favorable interest income market conditions by partnering with an experienced financial advisor helping us manage the Association’s cash balances with laddered CD’s and money market accounts. We will continue maintaining our system of checks and balances, sensible spending and investments, as well as transparency for our AKFCF membership.

As we see the new (yet scary) governmental changes in a few states start moving across the country, I am glad that we have an organization to allow us to pull together and fight against those sanctions that continue to eat at our bottom lines. Just as we did through the pandemic, we will continue to work as a family to help all our franchisees weather the economic storms that lie ahead. I am truly thankful that we have precautionary measures in place for any such incidences.

Thanks to all the finance chairs who came before me! It just goes to show how much of a family this brand is because I know that I can still call each one of you for help or an opinion. As a second-generation franchisee, I know the blood, sweat, and tears that have been shed into this brand.

Colonel Harland Sanders said, “The road to success is always under construction.” n

COMMUNICATIONS COMMITTEE REPORT

KEEPING THE INFORMATION FLOWING FOR 50 YEARS

By Kevin Schlutz, Communications Committee Chair

S

o much has changed over the last 50 years. I was just starting as a cook in one of our restaurants 50 years ago, and the AKFCF and many of the regions were in their infancy. Where we are today is the result of the vision and dedication of those pioneering franchisees. It has always been said that the strength of the regions are the regional secretaries, and those secretaries have been the foundation and backbone of KFC Family communications for all of those 50 years.

Let’s go back to Cookie Metzendorf, the original regional secretary for the original region, the Southeast. Handwritten minutes, the telephone, and the U.S. mail were her only communication tools.

In-person meetings were extremely crucial back then.

Nina Franz, the secretary of the Southwest Region and the AKFCF for approximately 20 years added the fax machine as a tool, and while email was just getting started back then, she wasn’t that interested in the new technology. When Nina retired, Tom Slater took on the added role of Southwest Region secretary for many years. Shane Lovato has been their secretary most recently.

Pat Walsh was the administrative secretary for the Northwest region for many years, keeping everything organized. When Pat retired, there were some short-term replacements, but Shannon Prendiville has done an excellent job for some time now.

Darlene Pfeiffer, before she was a two-time AKFCF President and everything else, was the secretary of the Northeast region, and started the AKFCF Newsletter, which eventually became the Quarterly. She was the first editor. Ron Giles took her place and was infamous for his deal making for the Northeast region’s meeting venues. Ray Aley took his place for many years, then Dale Moulton, then back to Ray temporarily, and the current secretary is Tony Cameron.

After Cookie, there was Bonny Shelton, a legend in the Southeast region for her effectiveness and tenure as secretary. She was also the next AKFCF Secretary after Nina. Bonny was certainly who I would try to emulate as I finished with the AKFCF chairs and the NCAC and settled into the secretary role in my region. Bonny always had a lot of help, mostly from daughter Debbie Deane, but then also from daughter Jenn Thomas, who went through the chairs in the Southeast region, and is now the Executive Director of the Southeast region. Debbie has been a mainstay at their regional meetings and the on-site registration at Convention. Such a talented and dedicated family, including Bill and Marcus, they were awarded the Lifetime Achievement Award and are still involved, although no longer franchisees.

The first Upper Midwest secretary was Don Nicolson, who also was the third AKFCF President, and he turned the regional secretary

duties over to his assistant Margaret Burton, who later became a franchisee. After a few years of unofficially being the regional secretary, in 2000 I officially became the Upper Midwest secretary, and it does seem to be a lifetime commitment almost 25 years later.

Mary Lou Hall was the “iron fist in a velvet glove” secretary of the Great Lakes region for many years, with her talented sidekick Cinda Summa. Not only did she organize the meetings, she also was the entertainment, singing and playing the piano beautifully. When Mary Lou was no longer able, her daughter Mary Beth Hamilton took over as secretary for several years until the merger with the Upper Midwest.

Even after the merger, Mary Beth and Cinda were helpful to me as I became more familiar with their membership. We still miss them, as we worked together on so many Super Regionals.

The first Southern California Secretary I remember working with was Katie Biggs, but more recently, Deborah Ossanlo Lundie has been providing support for that region.

Just as we did through the pandemic, we will continue to work as a family to help all our franchisees weather the economic storms that lie ahead.

No one provides better support to their region than Zaira Guevara of the CARIBLA region. Zaira has been a joy to work with for many years and an important part of our communications committee to give us an international perspective.

Seventeen years ago, I agreed to take Bonny’s place as AKFCF secretary. It has been an interesting ride, being the constant for each new Executive Committee member as well as chair of the Communications Committee. We have so many different communications tools now — almost too many to be effective in all of them. My one disappointment is that it’s still more of a one-way flow. Ideally, there would be lots of feedback and questions from the KFC Family, but we really don’t receive that much. The regional secretaries are a tremendous resource to everyone in the system to answer questions or find the right person to answer their query. We have kept the information flowing to the KFC Family for 50 years. n

Summer 2024 AKFCF Quarterly 49

REGIONAL SHORT

GREATER MIDWEST UPDATE

By Kevin Schlutz

W

hile the Greater Midwest region is just five years old, the Upper Midwest region, one of its earlier parts, is also celebrating 50 years in existence this year, and the Great Lakes came along a year later. In 1974, after hearing from representatives of the Southeast region, a group of franchisees held an organizational meeting in Chicago and formed the Upper Midwest region as an Illinois corporation, including the states of Illinois, Wisconsin, Minnesota, Iowa, Nebraska and the Dakotas. I read recently in an early AKFCF newsletter that there was a plan for tax purposes to change to a South Dakota corporation, but evidently that never took place.

Their fall meetings for many years were held at the Thunderbird Hotel, next to Memorial stadium in Bloomington, Minnesota.

Neither the hotel nor the stadium are there today, but for the few of us left that remember those dreary October drives to Minneapolis, and the Indian decorated Thunderbird, those were truly the good old days.

With all the constant changes, it’s doubly important to stay in touch with your board members, officers, and committee representatives.

50 AKFCF Quarterly Summer 2024

Many of the AKFCF’s presidents have come from the Greater Midwest, as well as many key franchisee leaders: Don Nicolson, Joe Zimmerman, Bob Schlutz, Bill Allen, Kevin Schlutz, Chuck Weaver, Dale Black, Bryan Robinson, and Justin Stewart from the Upper Midwest side. Joe Hall, Jack Richards, Fred Bauer, Keith Chambers, Joan Bowling, and Jim McKenzie represented the Great Lakes side. Other leaders, such as Jim Ligouri, Pete Wasilevich, Bob Bagshaw, Mike Kulp, Les Davis, Bill Alford, Norm Masters, Don DeLaria, Jack St. Martin, Dick Harrigan, Brian Johnson, Peter Helf, Terry Robinson, Jeanine Bagshaw, Ken Monroe, Bob Thorstensen, Noah Hommerding, and many others have provided enormous benefits to the KFC Family through their voluntary participation on boards and committees.

Many firsts came out of the Upper Midwest/Great Lakes/Greater Midwest. For example, the first international regional meeting, where 50 Canadian franchisees came and met jointly with the Upper Midwest at their fall meeting. Then there was the first multi-domestic regional meeting with the Southwest and Upper Midwest. The first three-region joint meeting with those two and the Great Lakes, forever known as the first Super Regional, is another example.

Consolidation of franchisees and the success of the Super Regional have evolved into the first five-region meeting in Atlanta last fall and that group is ongoing. The Greater Midwest is also the first successful merger of domestic regions. It all happened mostly during COVID, but went smoothly because the two regions had worked and met together for so many years for their fall meetings. It also went well because of the dedication of the combined officers, who

served years beyond their normal terms to ensure an easy transition.

The Greater Midwest has not had a spring RGM meeting since 2019. The result of that is there have been no meetings within the region since then. The Board decided that to give an opportunity for members of the region who choose to not attend the Super Regional or the AKFCF Convention to attend a meeting in the region by having a summer board and member meeting, like what the Southeast region has done for years. That meeting will have taken place by the time you receive this, but I’m sorry to say that very few non-board members took the opportunity to attend this in-person meeting. Depending on whether the board decides to move forward with more spring RGM meetings, this may be a “one and done” of in- person meetings within the Greater Midwest region.

Registration is about to open for the second five-region Super Regional Franchisee Forum that will be in Ponta Vedra, Florida at the Marriott Sawgrass from September 29 – October 2. The inaugural was so successful that I’m sure everyone is excited and planning to attend. There will again be a golf outing on the first morning. Regional business meetings, workshops, the vendor show, appreciation dinner, KFCC LT, and AKFCF presentations will follow.

Even when times are not that good, the KFC Family stands together and works together for a better future. With all the constant changes, it’s doubly important to stay in touch with your board members, officers, and committee representatives. The strength of the franchisee family is in the cumulative knowledge we share together, and that means reading your emails, attending meetings, and talking to your fellow operators. That is what will get us through the next 50 years. n

REGIONAL SHORT

SOUTHWEST UPDATE

By Shane Lovato

P

ete Harman once said: “The Colonel had that magic of making people succeed, probably beyond their natural capacity.

Everybody respected him. They wanted to succeed for him as much as for themselves.

He was so important to these very successful people. He was the glue that held that whole package together. The Colonel left the heritage for all of us, and if we blow it, it’s our own fault. We have a responsibility to do better than we’ve ever done before.”

The responsibility is ours.

How do we continue to hold ourselves accountable for a legacy engrained in American culture? The standards we set today will continue to influence the outcome of the brand’s ability to succeed. The task we set upon ourselves, and our fellow franchisees, is to uphold the legacy and success of the KFC brand. Through mutual support, we alleviate the burden of this responsibility, fostering an environment where success is not only achievable but sustainable.

The continuation of creating an open, collaborative space is the Southwest region’s number-one priority. No longer can we only rely on what has been established for us. To prepare for the future, we have established new committees and have redefined what it means to be a member of the Southwest region. Just like the Colonel, we strive to bring out the best in everyone we encounter. From franchisees to cooks in our restaurants, we recognize how hard each job is. To combat what we recognize as one of the most challenging times in the history of our company, we have committed to be vocal and to stand against what’s currently challenging the brand.

We know that the task we have set for ourselves is going to be challenging and

The standards we set today will continue to influence the outcome of the brand’s ability to succeed. time-consuming. Now we ask for your patience and support as we transition into becoming a partner with you and your teams instead of a group of people you see a couple of times per year. Remember to find the motivation to bring out the best in those around you and stay original. n

Summer 2024 AKFCF Quarterly 51

EXECUTIVE DIRECTOR UPDATE

50 YEARS IN

By Kelly Rodenberg

H

appy 50th Anniversary AKFCF! As we reach this significant milestone, celebrating our anniversary is an opportunity to tell our story, reflect on the impact, and inspire action. Over the last 50 years, AKFCF’s Regions, Franchisees, Executive Committee, Board Members, Committee Chairs and Staff have witnessed ups and downs, celebrations, and disagreements, and both joy and struggle. Many of these memories weren’t captured on video or memorialized in social media, but these moments built robust, defining movements. That’s why we continue to ground our mission on supporting franchisees with valuable resources, which allow us to build capacity and strengthen our resiliency.

Anniversaries provide a wonderful opportunity to recognize that we stand on the shoulders of those who came before us. As we mark our 50th anniversary, we honor those who have contributed their time, enthusiasm, and wisdom to past accomplishments and celebrate the many crucial ways in which our Association, echoing our mission statement, continues to advance education and advocacy to transform lives and businesses.

We know our success — past, present, and future — is built on how we partner together.

This culture of family is both our heritage and our future.

Not every organization gets to celebrate 50 years. Those that do drive transformation, integrate new technology, ignite passion, and instill pride. Whether you’ve been with us since the early days or

52 AKFCF Quarterly Summer 2024

you’re a new member, you know that AKFCF is the collective place for community, association information, education, and resources.

The 1970s were an irrefutably iconic era. The decade gave us bell bottoms, the Disco revolution, and plenty of products that left their mark. Several items, like the Rubik’s Cube and Dungeons & Dragons, celebrate their 50th anniversary in 2024. From their humble beginnings in garages and labs, these objects from 1974 have grown to become integral parts of our everyday lives.

Much to the shock of ‘90s kids everywhere, Leonardo DiCaprio is going to be 50 in 2024. Also turning half a century this year are stars like Kate Moss, Jimmy Fallon, Christian Bale, Victoria Beckam, Hillary Swank, and Ryan Seacrest.

1974 was quite a year for movies. Several of the most famous films of all time were released; pictures that remain widely viewed even to this day, a full half-century later. It also was a transitional year for film; it was the time when the young directors of the socalled “New Hollywood” movement began to suffer their first flops, and another crop of more commercially minded filmmakers began to find their footing at the studios. Within a year, Steven Spielberg would release Jaws. American films would never be the same again.

“Blazing Saddles,” “The Great Gatsby,” “Herby Rides Again,” “Chinatown,” “The Longest Yard” and “Texas Chainsaw Massacre” were just a few of the box office hits that year.

1974 was the aftermath of the explosion that was the 1960s, giving way to a groovy new sound called disco, which would make its mark later in the decade. It was a year when experimentation was key, and these songs are proof of that. The number-one ranked song on Billboard was Barbara Streisand’s “The Way We Were.”

That same year, KFC introduced Extra Crispy Chicken. Since 1974, we have sought to inspire and nurture the franchise spirit by asking ourselves, repeatedly and frequently, “what’s possible?”

What is possible if we spend the next 50 years using what we’ve learned in our first 50 to make franchisee’s lives better and the brand better?

We know our success — past, present, and future — is built on how we partner together. This culture of family is both our heritage and our future. I invite you to join us in writing our next chapter.

One where together, we create positive impact on our franchisees and the KFC brand, grounded in what AKFCF has learned over the past 50 years and what we just focused on at the 2024 Convention — that “reaching impossible” is just the beginning. n

The Hard Way It is comparatively easy to prosper by trickery, the violation of confidence, oppression of the weak … sharp practices, cutting corners — all of those methods that we are so prone to palliate and do as “business shrewdness.”

It is difficult to prosper by the keeping of promises, the deliverance of value in goods, in services and in deeds — and in the meeting of so-called “shrewdness” with sound merit and good ethics.

The easy way is efficacious and speedy — the hard way arduous and long. But, as the clock ticks, the easy way becomes harder and the hard way becomes easier.

And as the calendar records the years, it becomes increasingly evident that the easy way rests haphazardly upon shifting sands, whereas the hard way builds solidly a foundation of confidence that cannot be swept away.

Thus We Builded

®

*Dictionary: Present participle and verbal noun. To fashion or frame according to a systematic plan or by a definite process, to create, to BUILD reputation.

Reprinted by permission of Colonel Sanders, November 1964.

Copyrighted by Harland Sanders, 1973.

LEGAL UPDATE

WHAT TYPE OF LEADER ARE YOU?

By Ronald K. Gardner, Esq.

T

here is much that is remarkable about the AKFCF. I frequently find myself telling friends and family members how unusual this magnificent client of mine is compared to most of the work that I do.

There are literally dozens of reasons that set the AKFCF apart, some related to history, some related to personality, and much related to the culture that the Colonel created in building the early years of KFC. But as I reflect on it, I think one of the underappreciated distinctions is the tremendous number of volunteer leaders who, over the generations, have stepped up and given immense amounts of themselves to make this system not just better for businesses and their families, but for others who they might not even know.

As I approach a dozen years as the gen-

54 AKFCF Quarterly Summer 2024

eral counsel for the AKFCF, I think back on the presidents I have had the pleasure of working with. Every one of them was remarkable in their own way — despite the fact that they each had their own agenda and expectations with respect to their presidency.

If I was to get a little more granular about it, I think I would put the presidents that I’ve served each in one of the three following buckets as leaders: visionaries, inspirers, and stewards.

Visionary leaders look forward and propose to change things — for what they believe would be the better. While visionary leaders often are held up as the best kind, from where I sit, I expect many of the visionary AKFCF leaders, with whom I have worked, would tell you I am more

resistant to visionary leaders than I am to other kinds. Change is hard, and you must be sure you are bringing people along with you — something that is hard to do in one term. However, the visionaries that I have worked for all have been remarkably successful at setting a course for the system for the better. And while all the presidents that I work for have had some of the characteristics of each one of the three types of leaders I’m talking about, those presidents that I worked with over the last decade or so that would to my way of thinking be primarily defined as a visionary including Larue Kohl, Larry Starkey, Joan Bowling, Bryan Robinson, and Justin Stewart. In their own way, each one of these leaders steered the AKFCF in a direction it was not heading at the time that they took over.

There is no question that you, or some folks in your organization, would enrich the leadership talent pool at the AKFCF. I would strongly encourage you to reach out to your regional leaders to find out how you could get involved.

Inspirers are leaders who move people to actual action. These are leaders where I have seen significant change in the way we do things while they were leading. Sometimes they are following through on the vision of others — sometimes they are setting up and refining processes that have already existed and making them better. I include on this list Chris Fowler, Jim McKenzie, and Keith Cole.

Finally, stewards are those leaders who tend to take the opportunities they are given and maximize them without significant change to the overall direction of the Association. (Incidentally, I find that when I have been the leader of organizations, I tend to be more of this type of leader myself.) There is something to be said for the adage that “if it ain’t broke, don’t fix it.”

Indeed, leaders who change things for the sake of change are often leaders who are more interested in their own legacy than they are in the success of the organization in my opinion. In any event, I have seen tremendous stewardship from Greg Atwell, Eric Overcash, and Brandon Robertson.

That, my friends, is a tremendous list of leaders and one that I have been truly blessed to work extremely closely with over the last several years.

I raise all of this because we have just returned from our first Board meeting in which our new president, Leslie Sharp, has taken the reins. While it’s yet to be seen which one of these traits will become Leslie’s dominant leadership trait as the president of the AKFCF, she is off to a spectacular start. She is tremendously organized, detail oriented, and calls on everyone to follow through on the commitments they have made, thereby demanding accountability. An organization like ours cannot survive without every member who has made commitments to follow through.

Thus, accountability is critical.

Among the things that Leslie is already

demanding accountability over is follow-through on the strategic plan that was finished during the last portion of Justin Stewart’s presidency. While there are a lot of moving parts, as it is a five-year plan, the headlines include projects related to enhancing our partnership with KFCC, enhancing our Convention to continue to improve on our best-in-class member experience, refining our governance structure and processes, dealing with the integration of technology into our Association management as well as our member experiences and our franchisee business operations, and finally, working on projects that drive efficiency through consolidated efforts at the regional level. Every member of the Executive Committee has some primary responsibility for the projects under these pillars. Board members are being assigned, and members at large also will be required.

So, my question to you, as a reader of this column and a member of our community, is “What kind of leader could you be in the AKFCF?” What have you done to make the system better not just for yourself, but for others?

Finishing where I started, the AKFCF’s lifeblood is amazing volunteer leaders.

There is no question that you, or some folks in your organization, would enrich the leadership talent pool at the AKFCF. I would strongly encourage you to reach out to your regional leaders to find out how you could get involved. Indeed, nothing would delight me more than to find that someone has been inspired by this article to step up, do more, and be part of our organization. n

Ad index 11

Auspex Capital

33

Bama Companies

41

Café Valley Bakery

29

Chart Industries

13

Custom Seating, Inc.

C3

Dr. Pepper Snapple Group

25

Gycor International

39

KFC Foundation

28

Koch Foods

C2

Magnesol

1

Mulligan Funding, LLC

17

NDA, Inc.

5

Pacific Premier Franchise Corporation

15

Partstown

3

PepsiCo

21

Pilgrim’s

8,9, 43

Restaurant Supply Chain Solutions

35

Restaurant Technologies

7

Welbilt

27

Western Governors University

C4

Winston Industries

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.

Summer 2024 AKFCF Quarterly 55

LOOKING BACK

56 AKFCF Quarterly Summer 2024

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