AKFCF Winter 2021

QUARTERLY

Association of Kentucky Fried Chicken Franchisees, Inc.

2022 AKFCF n o v C e l a n u tion n n A

PLUS: GAC Report | Association Health Plans | Legal Update

Winter 2021

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CONTENTS

AKFCF QUARTERLY WINTER 2021

38

The Power Is On

2022 AKFCF Annual Convention

20

53

FEATURES

DEPARTMENTS

16  By Amber Peoples

4  From the Editor

GAC Report: A Flurry of Activity on Capitol Hill From Congressional budgets to infrastructure spending to vaccine mandates and more, there is a great deal of policy activity on Capitol Hill this winter.

Preview: The Power Is On 20  Convention By Kelly Rodenberg From our brand-new venue to brand new experiences and brand-new exhibitors, there’s a lot that’s changed since our last in-person Convention. But there’s one thing that hasn’t changed—the very warmest of welcomes awaits you, our KFC family, to the show at the very heart and soul of this Association.

38  By Diane Peoples

WHY ASSOCIATION HEALTH PLANS MATTER TO SMALL BUSINESSES Access to affordable health insurance isn’t just an employee retention play. It changes their lives. Read about the latest data and learn how these plans can benefit you and your teams.

6  President’s Report 10  NCAC Report 12  In the News 44 RSCS Member Programs 46 KFC Foundation 48  Regional Shorts 50  Financce Committee Report 52  Executive Director Update 53  Legal Update By Ron Gardner 56  Looking Back

On the Cover: 2022 AKFCF Annual Convention Preview “The Power of Opportunity” goes beyond a convention theme, and it lives beyond this year. “The Power of Opportunity” is a way of thinking and a path to greater success. It is having the courage to take risks and believe in yourself. It is taking the initiative and working for something that has a broader impact. It is adapting to new realities and shifting our business into the future.

2  AKFCF Quarterly  Winter 2021

MORE THAN A DROP IN THE BUCKET

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FROM THE EDITOR

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

TOGETHER AGAIN By Michelle Hunt It was February of 2020, the last time our whole family gathered in person for our AKFCF Convention. Our world vastly changed as we headed home from that event, but here we are on the precipice of finally reuniting from Mar. 7-10, 2022. If you haven’t registered, there is still time! It will surely be a unique and momentous occasion with new events, interacting face-to-face with our vendor partners, the addition of the Best of the Best event happening simultaneously, and the joy of being together again. In addition to being together, this will be my first Convention in my new role. I’ve had the chance to interact with many of you through the registration process and look forward to seeing you on-site. While we’ve been to the Gaylord Palms previously, the property boasts additional rooms, meeting space, and waterpark adventures sure to please the whole family. We cover the Convention details and reminisce on conventions past beginning on page 20, but head to www.akfcf.com, where you can find updated information about events, registration, and the Gaylord Palms property. You will not want to miss this! This issue includes two other features. The GAC presents the current flurry of activity on Capitol Hill on page 16. Then we revisit the concept of Association Health Plans on page 38 as we continue to see our group build across the country. Don’t forget to check out our regular columns, plus a Finance Committee update and Regional Shorts from the Greater Midwest and Southwest regions. One addition you’ll notice in the directory is a historical listing of our AKFCF past presidents in order of the year they served. Not to be outdone by our current, two-year serving all-star, Brandon Robertson. Here’s to a new year, new adventures, and the Power of Opportunity the AKFCF provides its members. Wishing all of you many blessings, safety, and health as we head to Orlando, Florida this March for our next family reunion! Warmest regards,

4  AKFCF Quarterly  Winter 2021

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

AKFCF EDITORIAL TEAM

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

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

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

FRANCHISEE EDITORS:

Michelle Hunt 14812 N Avenue, Columbus Junction, IA 52738 Phone: (319) 728-3282 Fax: (319) 728-2940 michelle.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 ©2022 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 V ice 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

BRINGING OPPORTUNITIES TO LIFE

By Brandon Robertson

W

ill the COVID variants ever end? I seriously doubt it, but we have hope. Omicron is making news as I write this article. By the time you read it, we will know just exactly what that means, but the word on the street is it’s less severe than previous variants so we have that to be thankful for. And maybe, just maybe, the virus is settling in to become something we can live with and not have to be so worried about. I sure hope so, and I know all of you do as well. Regardless, we are still planning a full, in-person Convention at the Gaylord Palms Resort and Convention Center in Orlando, Florida. I look forward to seeing all of you. We have put together an agenda that has opportunity for everyone. The golf tournament this year is benefiting the KFC Foundation, and we turned Justin Stewart loose with the planning for it. It is something not to miss and guaranteed to raise some much-needed funds that will help our

hard-working KFC team members in so many ways. The Foundation also is sponsoring an in-person wine tasting dinner. If you enjoyed the virtual one last year, don’t miss this event! I am sure the wine will be amazing, and the company you will get to dine with will be a change for the better. There also will be an auction with items you are guaranteed to want to bid on; they will be auctioned off by our own auctioneer/ lawyer Ron Gardner. The Convention will be filled with opportunity for you to learn from people you know and be introduced to people you don’t. One of the most important things that can happen for you at Convention is meeting someone new or getting to know someone else a little better. There are many opportunities that come from getting to know your fellow franchisees and colleagues, and Convention is the perfect place to make that happen. We have many

If you don’t work hard to create opportunities for yourself, they won’t happen, and you must take advantage of them when they do!

6  AKFCF Quarterly  Winter 2021

opportunities for you to network, starting with first night’s opening reception, which is sure to be a great time. Many of the opportunities I have had in my life came from getting to know someone. In fact, I am a franchisee because of someone I met at a job completely unrelated to KFC. Opportunity is a funny thing; it is constantly present in our lives. We pass on more opportunities than we take advantage of but the real test is, will you take advantage of the opportunity that will change your life? The easy way is to let opportunities pass you by and maintain the status quo. The hard way is to take a risk and challenge the status quo to better yourself. If you have a dream, make a list of the opportunities you need to make that dream come true and then go to work making those opportunities into reality. Sometimes, opportunity just happens, but most of the time it happens because we work hard to make it happen. Often, we need someone else to help us along the way — I know I did! The AKFCF Convention is an amazing opportunity to get to know so many different people who can bring many opportunities to life. I am a franchisee today because I created opportunities to get me here. Along the way, there were several people who told me it couldn’t be done. Sometimes, you must ignore the people who say you can’t and go find someone that says you can. The bottom line is: If you don’t work hard to create opportunities for yourself, they won’t happen, and you must take advantage of them when they do! I cannot wait to see you in Orlando! n

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NCAC REPORT

THE POWER OF BEING TOGETHER AS A KFC FAMILY By Tom Broome, NCAC Vice Chair

H

trial and consideration, to elevate the KFC brand, and to increase sales and transaction growth. Nick’s experience and expertise in performance and digital marketing, along with his significant marketing leadership, is what we need to help grow KFC today, tomorrow, and well into our future. While kicking off the holiday season, thanks to KFCC, we also had the opportunity to celebrate Cynthia Koplos’ retirement after 37 years of service to the KFC Family. Singer, songwriter and Cynthia favorite, Paul Thorn, provided fantastic entertainment, brought to us by our partners On Display, Ad Cucina, and Edelman PR. And even Paul could tell what a force Cynthia is. Check out this short video tribute (https://bit.ly/31Zp9V4) he posted the next morning on Facebook. December also brought KFC together with Kentucky’s own Jack Harlow. Known around the world for his music, style, swagger and following, Harlow will help us

build brand consideration with his primary audience. KFC Marketing and our multicultural agency, Nimbus, will bring to life a year-long calendar of KFC connected moments with Harlow, including strong digital and social programs. Harlow loves KFC and his fans will now have more of a reason to love and buy KFC. Sandwich sales will continue to remain a priority and focus for 2022 marketing initiatives. At our recent NCAC meeting, your NCAC aligned on upcoming marketing initiatives including: • Continued digital e-commerce promotions, including a high-end Sandwich Bundle Digital Exclusive (1/24/22 Launch). • February/March window (2/27/22 – 3/13/22) Sandwich “Fried to Order” with no price point on the low end and 8-piece Tenders Meal with no price point on the high end. • March/April window (3/14/22 –

Photos by Eli Sherman Photography

appy New Year KFC Family! I hope you enjoyed a wonderful, safe holiday season with family and friends. This season always reminds me about how grateful I am to be a part of the KFC Family and how lucky we all are to have such great team members at our restaurants. As we continue navigating the cycles of the pandemic, spending time together becomes become increasingly sacred, important, and appreciated. Your NCAC recently concluded our December Quarterly NCAC Meeting, bringing our Subcommittee and NCAC Committee franchisees together with our KFCC partners, for our first in-person meeting in almost two years. It was a great opportunity to re-engage, re-connect, and remain focused on growing the KFC business. We welcomed KFC’s new Chief Marketing Officer, Nick Chavez, and look forward to partnering with him to drive meaningful marketing programs, more

Cynthia, daughter Molly, son-in-law Boone, daughter Dena, husband George.

10  AKFCF Quarterly  Winter 2021

Singer/songwriter Paul Thorn.

in restaurant as 8-piece meal plus $1) on the high end. This window will also include an incentive for customers to download the KFC app. • Aggregator deals funded by the DoorDash co-marketing fund.

4/24/22) Sandwich “Fried to Order” with no price point on the low end and Sides Lovers (NEW!) with no price point (priced

Early in 2022, we will welcome new media and creative agency partners. These agencies will focus on driving relevance for KFC; aging down the brand while protecting our core consumer; increasing KFC app downloads; and providing meaningful, engaging, and targeted content to audiences across the country. I look forward to seeing the work they will create, inspiring continued love for KFC, accelerating sales, and providing more opportunities for us to stay relevant with our customers. As we get ready to come together for the AKFCF Convention in March, I want to remind you about value-added tools the NCAC funds to help franchisees across the system run better restaurants.

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• Guest Recovery Program — with a focus on addressing customer inquiries and needs so your restaurant teams can stay focused on daily service and operations, your NCAC funds a dedicated team of phone and online professionals to resolve problems in a timely manner. • Revenue Management Solutions (RMS) — third-party pricing consultant with three rounds of pricing consultation funded by your NCAC (it was two and we recently increased it to a third round.). This service requires that franchisees register with RMS. Reach out to kfcsupport@ revenuemanage.com or call them today at 813.569.6722. The service is free to you — take advantage of it. As always, please reach out to your NCAC Representatives with any questions or feedback and do not hesitate to reach out to Karen Sherman and the NCAC Staff with anything you may need from the NCAC. I look forward to being together in March in Orlando! n

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In the NEWS

KFC EXTENDS A WING AT THE COP26 SUMMIT

T

he world’s heads of state gathered in Glasgow, Scotland, in November for the 26th Conference of the Parties (aka COP26) alongside some unlikely leaders, like Colonel Harland Sanders, to discuss climate change. Well, not the actual Colonel, but representatives of his beloved brand met with environmentalists to strategize how to reduce energy usage and reach net-zero carbon emissions. If chicken executives and science-based targets seem like odd bedfellows, consider this: One in five of the world’s 2,000 largest publicly listed companies now have committed to a “net-zero” emissions target to help tackle climate change. For its part, KFC’s parent company, Yum! Brands, has pledged to reach net-zero emissions by 2050, with markets like KFC United Kingdom & Ireland (KFC UKI) aiming to get there by 2040 or sooner. “To be honest, if you’re a human on planet Earth, you need to be concerned about the climate emergency, and at KFC, we’re no different,” said KFC UKI Director of Responsibility & Reputation Jenny Packwood. At COP26, KFC UKI held a roundtable to share updates and actions on its approach to achieving a zero-carbon future, inviting

suppliers, partners, and non-governmental organizations to join him. Dr. Stephen Finnegan, director and founder of the University of Liverpool’s Zero Carbon Research Institute, hosted the session alongside Packwood and discussed his organization’s two-year partnership with KFC, in which its researchers will examine KFC’s entire portfolio of nearly 1,000 restaurants in the United Kingdom and Ireland to identify ways to decrease its emissions, like using different construction materials and identifying renewable power sources like solar and wind. In addition to becoming a net-zero business by 2040, the institute will help KFC become a circular zero waste business in food, packaging and materials by 2035. “So, what’s involved is an entire review of

the supply chain and the restaurants themselves. How are they run? How are they operated? How are they built?” said Finnegan. And it’s not just the Colonel’s flock that the institute will be helping. Once the research is complete, learnings may be shared with Yum!’s other brands, Pizza Hut, Taco Bell, and The Habit Burger Grill. The combined efforts speak to Yum!’s overarching climate action strategy, including approved science-based targets to decrease its greenhouse gas emissions in its more than 52,000 corporate and franchise restaurants and throughout its supply chain approximately 50 percent by 2030, as well as the aforementioned net-zero pledge by 2050. “As the world’s largest restaurant company, carbon consciousness is a must,” said Jon Hixson, Yum! global chief sustainability officer and vice president of Government Affairs. The executive points to a long journey of energy reduction efforts, going back to 2006 when Yum! set its first energy conservation goal. Three years later, the company built its first Leadership in Energy and Environmental Design (LEED)-certified green restaurant, with 44 LEED-certified restaurants globally to date. Source: Yum

Condolences:

Condolences:

Lloyd Inman Hodges, Sr. passed away on Saturday, Nov. 13, 2021, at the age of 90. Mr. Hodges was a beloved member of the KFC Family and known as a KFC pioneer, business leader, and philanthropist. He and his wife, Mary Sue, became KFC franchisees in 1963 and built a business that would eventually include multiple Kentucky Fried Chicken, Taco Bell, Pizza Inn, and Dairy Queen restaurants. Hodges will be greatly missed by Mary Sue, his loving wife and partner of seventy-one years; his children, Inman Gregory Hodges (Cindy); Janis Hodges Bell (Les); and Lloyd Inman Hodges, Jr. (Vicki); his sisters, Fay H. Goodson and Barbara Butler; and his grandchildren, Mary Kathryn Brown; Fulton Hodges; Klara Hodges; and Emily Hodges. Our thoughts and prayers are with the Hodges family.

Marvin Payne, a long-time former franchisee passed away in October 2021 at the age of 87. In 1971, Payne joined the KFC Family, developing restaurants in Hillsboro, Jackson, Wellston, and Oak Hill, Ohio in which he worked for 48 years. He is survived by his daughter Gretchen Payne Peoples (Burt); granddaughter Alexand Peoples; sister Janice Whitiker; and two brothers, Ralph and John Payne. Our thoughts and prayers are with the Payne family.

12  AKFCF Quarterly  Winter 2021

NIMBUS FACILITATES YEAR-LONG PARTNERSHIP BETWEEN KFC AND JACK HARLOW

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IMBUS, a nationally recognized, strategic multicultural marketing agency headquartered in Louisville, Kentucky has facilitated a partnership between KFC and recording artist Jack Harlow. The year-long partnership is set to bring about a younger, more diverse consumer to the KFC brand while leaning into menu innovation and providing a plethora of experiences for Jack’s fans across the country. While the vision of the creative framework and talent acquisition was brought to life by NIMBUS’ team, the company tapped Famous After Death, a Latinx lead production company to bring the project to fruition. Led by Meg Gàmez, the Latinx production crew took the framework, which combined Jack’s swag and the 11 Herbs & Spices of KFC and crafted the promotional materials for the partnership’s kick-off. The marketing agency leveraged this opportunity to partner with the Latinx produc-

tion company to reinforce its dedication to representation and inclusion at the agency level while also showcasing KFC’s meaningful commitment to connecting with younger and more diverse consumers, thus inviting these key consumers to pay attention to KFC as a brand. “For NIMBUS, it’s always about real representation and bringing culture forward. Through strategic partnerships and culture-based storytelling, we were able to launch a framework that will help to evolve the brand while activating against the cultural elements that give younger and diverse consumers a reason to buy KFC,” says Dawn Wade, NIMBUS managing partner, and chief strategy officer. The partnership was formally kicked off

on Dec. 13, 2021, starting with a KFC x Jack Harlow food truck ahead of the performer’s first hometown show at The Palace Theatre in Louisville. Fans not only had a chance to experience Jack during the show, but they also had a taste of KFC’s Chicken Sandwich while they waited for the show to begin. “Growing up, I always dreamed of being the next big name to put Kentucky on the map in the music scene. But to team up with an iconic national staple like KFC, the biggest brand to come out of Kentucky, is truly an honor,” says Grammy-nominated recording artist, Jack Harlow. “I’m looking forward to all the amazing things we’re about to do together over the next year.” Source: NIMBUS

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In the NEWS

BEYOND MEAT NAMES NEW COO AND CHIEF SUPPLY CHAIN OFFICER

B

eyond Meat, Inc. recently announced the appointment of two Tyson Foods veterans to its executive leadership team. Doug Ramsey joins as chief operating officer following three decades at Tyson and Bernie Adcock joins in the newly created role of chief supply chain officer following more than three decades of experience in the industry as well. Ramsey and Adcock join as Beyond Meat is aggressively scaling production and commercialization in the U.S., E.U., and China. The pair will be instrumental in growing Beyond Meat’s operations, supply chain, and manufacturing, and driving efficiencies to unlock cost-savings as the company pursues its long-term goal of price parity with animal protein. “After a long and careful search, I could not be more thrilled to announce the arrival of Doug Ramsey and Bernie Adcock at Beyond Meat. Doug and Bernie bring a proven track record of impressive operational excellence in the protein industry that our global partners, customers, and consumers expect and deserve,” says Ethan Brown, founder and CEO of Beyond Meat. Ramsey began at Tyson in 1992, eventually holding several top leadership positions, including group president of poultry. In this role, he oversaw all domes-

tic poultry business units, driving market share through strategic integrated planning, business acquisitions and integration, lean manufacturing, and cost reduction. “Beyond Meat is the gold standard in the plant-based meat industry and I am proud to join in its mission to produce delicious products that are healthier for our customers and more sustainable for our planet,” says Ramsey. Adcock joins Beyond Meat after 31 years at Tyson Foods where he most recently served as chief supply chain officer, helping to scale

DID YOU KNOW? In 2008, the Colonel’s secret recipe was temporarily relocated while security was updated in KFCC’s headquarters in Louisville, Kentucky. Colonel Sanders opened his Sanders Court & Café in Corbin, Kentucky in 1937. In 1952, the Colonel sold his first franchise contract, and a worldwide phenomenon was born. The first buckets of Kentucky Fried Chicken were sold for just $3.50!

14  AKFCF Quarterly  Winter 2021

the company’s poultry business through cross-functional strategic oversight and the integration of innovative technologies across the supply chain. “I’m delighted to join Beyond Meat at a moment when the company is rapidly scaling for strategic partners, customers, and consumer demand in the U.S. and globally,” says Adcock. “I am looking forward to supporting the company’s planned growth through the expansion of supply chain capacity domestically and in high-potential markets like the E.U. and China.” Source: QSR

Know Your Acronyms In our business, there is a great deal of terminology and jargon. As more processes and systems are added, the acronyms continue to pile up. Thus, AKFCF Quarterly decided it is time for us all to brush up on the many acronyms you will hear in your daily lives and read about in this magazine. Be sure to pass this along to your employees, or post a copy in your offices. 76(5P) 1976(5P) KFC Franchise Agreement AKFCF Association of Kentucky Fried Chicken Franchisees ARL

Above Restaurant Leader

ASAP American Showman Asset Program AUM

Assistant Unit Manager

BOGO

Buy One Get One

BOH Back-of-house BSC

Balanced Scorecard

COB

Chicken on the Bone

COGS

Cost of Goods Sold

DMA Designated Marketing Area FA (Or F/A) Franchise Agreement

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

POS

Point of Sale

QSR

Quick Serve Restaurant

REC

Restaurant Economics Committee

KFCC Kentucky Fried Chicken Corporation

RGM

Restaurant General Manager

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

RMI

Restaurant Margin Improvement

ROCC Restaurant Operations Compliance Check

NCAC National Council and Advertising Cooperative

ROI

Return on Investment

RSC

Restaurant Support Center

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

RSCS Restaurant Supply Chain Solutions (formerly UFPC)

NMS National Marketing Subcommittee NPC National Purchasing Cooperative (i.e., KFC NPC)

FIT

Food Innovation Team

FSC

Food Safety Consultation

OEC Operations Excellence Committee

GAC

Government Affairs Committee

PAC

Political Action Committee

POP

Point of Purchase

SBRA Supplier Business Relationship Agreement TOL

Territory Operations Leader

TRP

Targeted Rating Point

VOC Voice of the Customer (formerly CBCC) YUM

Yum! Brands

YRI

Yum! Restaurants International

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GAC Report

16  AKFCF Quarterly  Winter 2021

A Flurry Of Activity on Capitol Hill By Amber Peoples and Blake Lincoln

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here has been a flurry of activity on Capitol Hill since our last quarterly report, marked by the passage of the Infrastructure Investment and Jobs Act, known more widely as the bipartisan infrastructure passage (BIF). The House of Representatives approved the Senate-crafted infrastructure passage on November 5, after progressive Democrats agreed to back it in exchange for swift passage of the tax-and-spend Build Back Better Act (BBB). President Biden has since signed the BIF and appointed former New Orleans mayor Mitch Landrieu as the czar responsible for distributing the funds. Some Republicans are facing backlash from their base, as ultimately 19 senators and 13 House members joined all Democrats in voting to pass the landmark bill.

With the beginning of the new year, Democrats are focused on the daunting task of passing BBB, although this is a political goal rather than a procedural necessity. On November 19, two weeks after the passage of BIF, the House — on a party-line vote — passed BBB and sent the budget bill to the Senate. Upon BBB’s arrival in the Senate, senators began to probe the bill’s content to guarantee eligibility for the reconciliation process under the Byrd rule. Senators have already held several meetings with the senate Parliamentarian on the bill’s content and are questioning whether some spending provisions are allowed the privileges that come with a budget bill. Before the holidays, Leader Chuck Schumer indicated to fellow Senate Democrats that the Senate would vote on a revised version of the BBB in early 2022. A key vote in the BBB, Sen. Joe Manchin has stated that presently, he is not participating in negotiations with the White House. In December, the moderate senator surprised Democratic lawmakers by announcing his refusal to sign the economic and climate package, saying “I cannot vote to continue with this piece of legislation.” The move solicited very serious backlash from the White House, which stated in a release that Manchin’s comments

Winter 2021  AKFCF Quarterly 17

With the beginning of the new year, Democrats are focused on the daunting task of passing BBB, although this is a political goal rather than a procedural necessity. “represent a sudden and inexplicable reversal in his position, and a breach of his commitments to the President and the Senator’s colleagues in the House and Senate.” Another ongoing battle with lawmakers and the White House is Biden’s vaccine mandate. On December 8, Sens. Manchin and Jon Tester joined forces with Republicans to overturn the regulation by a vote of 52-48. This move has been described by many as largely symbolic and the mandate will likely not see a vote in the House. The future of the mandate

was left in the hands of the Sixth Circuit Court of Appeals, which voted on December 17 to dissolve the stay put in place by the Fifth Circuit in November of 2021. As expected, several petitioners immediately filed an emergency application with the U.S. Supreme Court to stay the Sixth Circuit Court’s decision. The Supreme Court is holding a special session in January to decide the fate of Biden’s orders. Until that decision is made, employers are expected to comply with the ETS requirements, with OSHA stating that it will begin

issuing citations for noncompliance on Jan. 10, 2022. Testing requirements will not begin being cited until Feb. 9, 2022. Stay Involved, Donate to the AKFCF PAC Contributing to the AKFCF Political Action Committee (PAC) is the best way to support the election and re-election committees of pro-business Members of Congress who share the same concerns as franchisees. The money raised in the PAC goes directly to the campaign of those running for Congress, or incumbent members seeking re-election. You may make your 2022 AKFCF PAC donation online by visiting our portal on the AKFCF website in the Government Affairs tab. For more information, please contact your regional GAC representative or Amber Peoples of Polaris Consulting, LLC (apeoples@ polariswdc.com). n

AKFCF – Political Action Committee (PAC)

The AKFCF created a PAC to make sure our voices are heard in Washington, D.C. The AKFCF Government Affairs Committee and the AKFCF PAC Board of Directors would like to thank the franchisees listed below for their contributions this year to the AKFCF PAC. Each quarter, we list the names of the franchisees who have supported the PAC at time of print as a token of our appreciation. This list is all the latest contributions, broken down by region. We encourage you to please join your fellow franchisees and support your AKFCF PAC. For information on how you can become involved, or if you don’t see your name and should, please contact Leslie Sharp, treasurer of AKFCF GAC/PAC at lcsharp4133@icloud.com. Greater Midwest Dale Black Joan Bowling Heather Dexter Alessio DiFranco Douglas Elish Timothy Fitzpatrick Glen Flewelling Nancy Fox Anne Goodnight Lesley Hottinger Michael Houston John Jefferis Ben Johnson Michael Kulp Stephanie Kulp Mark Lambos James Mayer James McKenzie James Mikula John Moroney Diana Myers Troy Saunders Kevin Schlutz Susan Schmidt Douglas Smith Justin Stewart Scott Vorrath Nanette Walker

18  AKFCF Quarterly  Winter 2021

Chris Walker Peter Wasilevich Bob Widder Northeast Ray Aley Cheryl Aley John Arsenault Jeff Bower Charmain Bower Anthony Buford Tony Cameron Joseph Cavegn Tommy Cecconi Keith Cole Stacey Dion David Evans Frederick Gallant Sherry Houston Michael Houston Robert Rianna Larry Starkey Northwest Ralph Harman Jeannie Harman James Jackson Fred Jackson Marvin Jorgensen Cindy Jorgensen

Stephen Prendiville Todd Stewart Barry Thiriot Calvin White Southeast John Brown Matthew Druten Barry Dubin Austin Felker Sandra Felker Eric Felker Chris Fowler Michael Galloway Kirk Gillam Matthew Hansen Tim Harris L. Inman Hodges Michael Houston Howard Killgo Doris Lewis Kristin Mana Angela Ogle Johnny Outlaw Terry Rogers Dan Rosenbalm Linda Rosenbalm Gurpreet Sandhu Leslie Sharp

Bill and Bonny Shelton Kelly Shoffner Madison Shoffner Jeffery Wallace Kent Weir Richard (Dick) West William (Bill) West Gary (Steve) West Charles (Tim) West Earl Wilson Southern California Amjad Chaudhry Shahid Chaudhry Israel Diaz Piyarali Hashim Zubair Kazi Patricia McBrayer Raziel Valiente Southwest Debra Ashmore Krystal Burge Scott Duke Anthony Lovato Kyle Ogden Stan Richardson Brandon Robertson Kelli Spring

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The Power Is On The warmest of welcomes await you in Orlando

20  AKFCF Quarterly  Winter 2021

By Kelly Rodenberg “

T

he Power of Opportunity” goes beyond a convention theme, and it lives beyond this year. “The Power of Opportunity” is a way of thinking and it’s a path to greater success. It is having the courage to take risks and believe in yourself. It is taking the initiative and working for something that has a broader impact. It is adapting to new realities and shifting our business into the future. From our brand-new venue to brand-new experiences and brand-new exhibitors, there’s a lot that’s changed since our last in-person Convention in Nashville. But there’s one thing that hasn’t changed — the warmest of welcomes await you, our KFC family, to the show at the very heart and soul of this Association. We’ve used our time to plan touch-point educational programming, sensational social engagements, and countless opportunities to connect. It is all supported by a thorough health and safety plan. This year’s AKFCF Convention is designed to create the best show experience possible — one where you can safely and effectively do business and enjoy time with each other. The general sessions, legal update, brand Q&A, awards, and workshops are all back with a bang, joined by new events and initiatives including a GAC Luncheon, RGM Best of the Best Celebration, and the KFC Foundation’s Wine Dinner. Since our last article in the Winter issue, here are a few new updates for your 2022 AKFCF Annual Convention:

Winter 2021  AKFCF Quarterly 21

2022 AKFCF Annual Convention

March 7-10, 2022 Gaylord Palms Resort & Convention Center Orlando, Florida

Opening Keynote Speaker: Mike Rayburn What if… Every major invention, accomplishment, and victory in human history began with the simple, almost childlike curiosity of a “What if…?” question: “What if we could? I know we can’t, but what if we could?” International keynote artist, Mike Rayburn, will share three simple, powerful tools which took him from playing empty bars, to headlining Carnegie Hall

(eight times!). They work for anyone. And everyone. Always. Mike Rayburn is a two-time TED Talk Presenter, an innovative entrepreneur, and Hall of Fame speaker who uses world-class guitar and comedy to teach change and innovation to corporations world-wide. He has headlined Carnegie Hall, headlined in Las Vegas, and performed more than 5,000 presentations in 20 countries on five continents. Rayburn is a regular on Sirius/XM and morning radio nationwide. He has performed as guitarist with The Beach Boys and John Oates. Rayburn’s keynote is called “The What IF? Keynote Experience.” You will learn three simple tools for harnessing your unrealized potential, creating, and leading change, and becoming a virtuoso performer. You’ll hear amazing music, including a solo guitar version of Queen’s “Bohemian Rhapsody.” Oh, and you laugh a LOT! No one does what Mike Rayburn does.

Closing Keynote Speaker: Justin Patton How to Make Trust Your Biggest Competitive Advantage — Now It’s Up to Me This final, high-energy session will have you explore the four core factors to building trust with others, and you’ll learn how to take your insights from the week and turn them into tangible actions that help you build a culture of stronger trust in your restaurants. Join us for the laughs and free giveaways, but leave with a clear plan to help make you and your team better! You’re worth that choice.

22  AKFCF Quarterly  Winter 2021

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Workshops Navigating Inflationary Pressures With inflation at accelerating rapidly, this workshop will provide resources to protect your 4-Wall Economics, including tools to help analyze and protect your restaurant-level profitability. Guest Service with A Post-Pandemic Mindset The pandemic has shifted consumer behavior and opened new opportunities for our brand. In this workshop, we’ll explore what today’s guests are looking for and how to deliver that experience. Leave feeling inspired and excited about the future, with things you and your teams can do now to help make it a reality.

AKFCF Government Affairs Luncheon Join us for the AKFCF Convention Luncheon on Wednesday, March 9 hosted by your Government Affairs Committee! EWveryone is invited & encouraged to attend to this event! KFC franchisees, KFCC representatives, and our invaluable vendors! Expect a fun event with great food, exciting guest presenters, and a raffle giveaway at the end! You’ll hear from Dan Gans of Polaris Consulting and the Yum! Government Affairs team. The GAC also is

24  AKFCF Quarterly  Winter 2021

working on bringing you a special surprise guest! More information to come, but you’re not going to want to miss this! Due to the ever-changing political landscape, this will be a timely update for the system. The GAC consists of business-minded franchisees, nominated by you, to work on behalf of the AKFCF to influence legislation beneficial to the franchisees and our brand. Your PAC donation is extremely important for the GAC to continue this valuable work.

RGM Best of the Best Celebration at 2022 AKFCF Convention KFCC is excited to host the brand’s top 100 Restaurant General Managers, our Best of the Best winners from 2020 and 2021, to celebrate their achievement of highest Operations Scorecard! These 100 VIP guests will have a legendary experience while at Convention. Want to learn more about what it takes to become one of KFC’s Best of the Best? Check out TeamKFC .

Winter 2021  AKFCF Quarterly 25

KFC Foundation’s Wine and Dine Event We know you loved sampling delicious wine with your KFC family so much that we’re offering it again in 2022 — and this time, it’s in-person and we’re bringing food and live music to the table! The KFC Foundation’s Wine & Dine Event will be held on March 9, 2022. Each ticket will include a chef-prepared, three-course plated dinner, delectable wine from Del Dotto thoughtfully paired with each course, and a master sommelier guiding you through the tasting. After dinner, we’ll keep the fun going with live entertainment by the incredible Emerald City Band and a live auction, with our very own Ron Gardner as the auctioneer! The best part of it all? The proceeds from your ticket purchase and auction item sales will go directly to your KFC Foundation. Registration for this dinner can be found at https://cbo.io/tickets/kfc/WineDine.

The Colonel’s Classic, Ray Zimmerer Memorial Golf Scramble We’re teaming up with your AKFCF and Accuserv to host the Colonel’s Classic, the Ray Zimmerer Memorial Golf Scramble on March 7, 2022, with all proceeds going to the KFC Foundation. We’ll have a shuttle from the resort to the course starting at 6:30 am, with a shotgun start at 8 am. New this year: Build your own fabulous foursome to take the course by storm! Your registration fee includes: • Breakfast and lunch • Bottomless Bloody Mary bar • $200 Pro Shop credit for each member of the foursome • Drinks throughout the course • And more! To register for the golf scramble, visit https://cbo.io/tickets/kfc/scramble

26  AKFCF Quarterly  Winter 2021

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Here’s a look at our schedule for the 2022 AKFCF Annual Convention — you won’t want to miss a minute! MONDAY, MARCH 7

WEDNESDAY, MARCH 9

6:30 a.m. – 1 p.m.

Golf Tournament

8 a.m. – 9 a.m.

Breakfast

Noon – 5 p.m.

Registration Opens

9 a.m. – Noon

Trade Show Open

2:15 p.m. – 5:15 p.m.

Workshops

12:15 p.m. – 1:30 p.m.

GAC Luncheon

6:30 p.m. – 9:30 p.m.

Welcome Reception

2 p.m. – 5 p.m.

KFCC General Session

Free Night

Shuttles to Disney Springs

6:30 p.m. – 10 p.m.

KFC Foundation Dinner

TUESDAY, MARCH 8 8 a.m. – 9 a.m.

Networking Breakfast

9 a.m. – 10:45 a.m.

Opening Session

THURSDAY, MARCH 10

11 a.m. – 11:45 a.m.

ower Talks with KFCC, P NCAC, and RSCS

8 a.m. – 9 a.m.

Networking Breakfast

Noon – 2:30 p.m.

Lunch in the Trade Show

7:30 a.m. – 9 a.m.

Women’s Breakfast

2:30 p.m. – 5 p.m.

AKFCF Regional Meetings

9 a.m. – 10:30 a.m.

General Session

6:30 p.m. – 10:30 p.m.

rivate Event at Universal P Studios Florida™

10:45 a.m. – 11:45 a.m.

Brand Q&A

Noon – 1:30 p.m.

AKFCF Legal Update

2 p.m. – 3:30 p.m.

AKFCF Board Meeting

28  AKFCF Quarterly  Winter 2021

Private Event at Universal Studios Florida™ Get ready for one of the most incredible parties AKFCF has ever thrown — dinner in the Universal CityWalk entertainment complex followed by dessert, rides, and entertainment at Universal’s Islands of Adventure theme park! All night long, you’ll have unlimited access to the most amazing theme park rides and attractions in Orlando because we’ve reserved The Wizarding World of Harry Potter™- Hogsmeade™, Jurassic Park and Skull Island: Reign of Kong just for you. Soar above the Hogwarts™ grounds as you join Harry Potter™ and his friends on the groundbreaking thrill ride Harry Potter and the Forbidden Journey™, fly deep into the Forbidden Forest on Hagrid’s Magical Creatures Motorbike Adventure™, and visit the wizarding world’s best-known establishments in Hogsmeade™. Feel the rush of the hunt as you race through the jungle alongside velociraptors on Jurassic World VelociCoaster. Brave a clash between prehistoric predators and the most colossal ape on Earth on Skull Island: Reign of Kong. It’ s an entire evening of thrills and excitement — and it’s all yours. *Wizarding World and all related trademarks, characters, names, and indicia are © & ™ Warner Bros. Entertainment Inc. Publishing Rights © JKR. (s21) Jurassic Park and Jurassic World TM & © 2021 Universal Studios LLC and Amblin Entertainment, Inc. All Rights Reserved. Universal elements and all related indicia TM & © 2021 Universal Studios. All rights reserved.

WINE & DINE EVENT

March 9 | 2022 AKFCF Convention

Three-course plated dinner Paired with delectable wine from Del Dotto Guided by a master sommelier Entertainment by Emerald City Band Live auction Secure your spot today for the KFC Foundation’s Wine & Dine event

Kfc.cbo.io

©2021 Kentucky Fried Chicken Foundation, Inc. The Kentucky Fried Chicken Foundation is a non-profit, 501(c)3 organization. Employees must meet eligibility criteria for each program.

Winter 2021  AKFCF Quarterly 29

Explore Disney Springs The Gaylord Palms Resort will provide additional shuttles for AKFCF attendees wishing to visit Disney Springs for an evening on their own. Disney Springs is an utterly amazing place featuring an eclectic mix of unique boutiques, one-of-a-kind eateries and jaw-dropping entertainment that will have you feeling the magic in no time.

Planning on visiting Disney while at Convention? To purchase specially priced Disney Meeting/Convention Theme Park tickets, please call 407.566.5600. Tickets are valid 7 days pre, during, and 7 days post meeting dates. Please note the cut-off date for advance purchase savings is 03/06/2022. Disney currently provides exclusive After 1PM and After 5PM Twilight Tickets and special discounted multiday tickets to meeting & convention groups that are not available at our Ticket Windows. The multi-day tickets include a complimentary bonus visit to an additional Disney experience. (Due to COVID-19 these options have been modified to include the mini-golf and Disney Oak Trail golf options. More will be added as they become available.) Please note: With the new Disney Theme Park Reservation System and park capacity limitations, it’s important to lock in your visit as soon as possible. A park reservation is required for entry along with the ticket. 30  AKFCF Quarterly  Winter 2021

THE COUNTDOWN IS ON! The 2022 AKFCF Annual Convention opens soon, bringing with it a wide range of business opportunities, educational sessions, and the opportunity for the KFC family to — finally — reconnect. While the Convention remains the hub of business and learning, there are also many opportunities to connect outside of the show floor. •  Three-hour welcome reception with live band • Networking Breakfasts and Lunches •  Private Event at Universal’s Islands of Adventure •  Ray Zimmerer Golf Tournament We can’t wait to see you at our 2022 Convention in Orlando — whether it’s for an early-morning tee time at the Ray Zimmerer Golf Tournament, catching up over cocktails at the Welcome Reception, or strolling the aisles in the trade show. Don’t let another year go by and miss out on the opportunity to see your KFC family in person. They can’t wait to see you! Go to www.akfcf.com for more information and how to register. The hotel deadline is February 11. Rooms are booking quickly.

Hotel Information Gaylord Palms Resort and Convention Center 6000 West Osceola Pkwy Kissimmee, FL 34746 844.207.0462 www.gaylordpalms.com Gaylord Palms Resort and Convention Center

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Winter 2021  AKFCF Quarterly 31

CONVENTION MEMORIES: AKFCF Past President, Jim McKenzie (2019-2020)

P

lanning for the 2020 Convention was the highlight of my term as the AKFCF president. The Convention is the “crown jewel” of all the services and benefits the Association offers its members. The Convention is where and when all KFC teams gather to celebrate, learn, explore, share, discuss and plan for our great brand. Helping deliver a Convention experience that meets all of those needs (and more) is such a rewarding experience. Who knew that our 2020 Convention theme of “Banding Together and Leading the Way” would be so appropriate for the immediate days and months following? As I look back over the Conventions I have attended, the experiences I remember the most, and the experiences I have had that influenced me the most, are the opening sessions. Regardless of where we have been as a brand, the energy and opening remarks have always been delivered to put us on, or keep us on, a positive path for growth. The opening day has always served to unite us franchisees, as a brand, and as a team working toward common goals. All of us are there: franchisees, KFCC, RSCS, and our vendors and partners. You can’t help but leave that first day energized and excited to keep our brand and businesses moving in the right direction.

I have attended around 15 Conventions over the past 20 years. I’ve been to Las Vegas and Orlando many times, and always have a great time. I have to say, though, that Nashville has been my favorite destination. To me, it offers a little bit of everything — great venues to conduct our Convention business, great entertainment, dining and exploration options in abundance, and a location that most of our franchisees and partners can easily get to. At the end of the day, our experiences with each other and the interactions we have are the most important part of any Convention. These can happen anywhere!

The Convention is the “crown jewel” of all the services and benefits the Association offers its members. The Convention is where and when all KFC teams gather to celebrate, learn, explore, share, discuss and plan for our great brand. 32  AKFCF Quarterly  Winter 2021

CONVENTION MEMORIES: AKFCF Past President, Larry Starkey (2013-2014)

I

don’t have a lot of “fond” memories of planning the Convention, but I do have great memories of what all we accomplished that year. We had a lot of changes that year with a new production company, a new executive director of the AKFCF, new legal counsel, and it was the final year for the person whose company was charged with the logistics of our Convention. I wanted to take the Convention in a new direction to illustrate the possibilities we had in working cooperatively with our franchisor partner. That definitely was not the chosen path of least resistance. The fondest memory was the outcome of the event we planned, “KFC’s Got Taste and Talent.” We had no budget to do this talent contest, but with the help of Northeast franchisees (Keith Cole, Ray Aley, Rob Rianna), and a whole host of volunteers as judges and contestants, we were able to put together a most memorable evening. KFCC provided the food for free, catered by six neighboring KFC restaurants in the Orlando area. The final cost for the event was close to $10.00 for each person in attendance (mostly for the hotel to do the clean-up). Attending Conventions each year has provided me the opportunity to see lots of people that I have gotten to know and appreciate over several decades. I look forward to our times of gathering to laugh hysterically over shared experiences. I think I have attended every national Convention since 1982. The locations that surface to the top of my list include Austin, Texas; Orlando, Florida; San Antonio, Texas; and New Orleans.

Winter 2021  AKFCF Quarterly 33

CONVENTION MEMORIES: AKFCF Past President, Dale Black (2011-2012)

M

y fondest recollection came when the Greater Midwest had a long conference call with our representatives. The discussion was led by Ron Gardner, who shared how an agreement between the brand, franchisees, and the new RSCS now permitted full visibility to the supply chain. I flashed back to the challenge of my time in leadership of over 200+ operating POS systems, the travel to all the regions sharing a vision of a supply chain that we now have today, and how Inman Hodges and I shared that vision as we drafted the first technology agreement with Tom Romano, not getting all we hoped from our fellow franchisees but enough that the shared value to the system became evident to all.

34  AKFCF Quarterly  Winter 2021

CONVENTION MEMORIES: AKFCF Past President, Terry Rogers (2010-2011)

I

n 2010, we had a great planning meeting in San Diego at the Manchester Grand Hyatt Hotel with the full planning committee, along with the KFCC members and Larry Light and Joan Kiddon. It was at this meeting that a national business publication quoted a KFC franchisee saying something very unflattering about KFCC leadership. No one allowed this to interrupt the reason why we were there, and we went on to have a nice dinner and end our meeting as pleasantly as possible. It just goes to show that when we align on

business essentials, we can all move the brand forward even in difficult times. I have so many fond memories … having my family present at so many Conventions is certainly special. Janet and I count so many franchisees as our best friends, and we look forward to the next Convention the same as we would a family reunion. Giving David Sparks the President’s Award in 2011 was a special memory because he had to work so very hard under very difficult circumstances to earn it.

Winter 2021  AKFCF Quarterly 35

CONVENTION MEMORIES: AKFCF Past President, Kevin Schlutz (1997-1998)

H

aving been involved in planning many of our AKFCF Conventions, my best memories are of site visits to new venues we hadn’t ever been to before and exploring the hotels and surrounding areas, and visualizing how it would all work. Most people don’t realize all that it takes to plan a meeting that large with all the different activities and entities involved. A favorite memory for me was checking out the Dallas Cowboys Golf Club with Kris Stage. Also, having a Convention planning meeting before my Convention is still a favorite. Some of my favorite trips were the site visit to Hawaii for David Neal’s Convention and Opryland before my Convention. Those were the “good old days,” where the Convention Committee actually made most of the decisions. Deborah Callahan was our guide back then and it always turned out great. It’s all about the people, and what I

36  AKFCF Quarterly  Winter 2021

mean is it’s not just seeing our fellow franchisees, but long-term vendor partners and corporate partners, and also the travel staff. Working with so many of them over the years, it is always a great feeling to see them again. Also, the excitement of that opening day and the proud moment of each successive president giving their opening speech. Also seeing the award winners and congratulating them afterwards, sometimes knowing who it was and excited that they didn’t know until it was announced. Greeting people at registration as they got there was always a great memory, especially back when they came to their own region to check in. I have to say Opryland [is my favorite Convention location] because it was where my Convention was. Some of my other favorites are the Gaylord Texan and Rosen Shingle Creek. The Venetian was wonderful as well.

ORLANDO 2019 MEMORIES

Winter 2021  AKFCF Quarterly 37

38  AKFCF Quarterly  Winter 2021

Why Association Health Plans Matter to Small Businesses By Diane Peoples, Senior VP of Marketing, Decisely

A

s a small business owner, Kim Marshall of Overland Park, Kansas believes in offering health insurance to her employees. Outside of fair compensation, she considers benefits her best tool to keeping her valued team members happy. Over time, however, Kim was

sacrificing benefits quality for affordability, and, as a single business owner, feeling isolated and powerless. Even her valued broker of many years couldn’t help her source more affordable plans.

Winter 2021  AKFCF Quarterly 39

Bringing groups together to source benefits can make the independent business community stronger, allowing them to compete with larger corporations for valuable employees. Marshall is not alone. Six million small and independent businesses (two to 100 employees) in the United States provide more than 40 million jobs and represent 34 percent of the U.S. workforce.¹ Given the 47-percent average increase in family premiums over the past decade, the ability for employers to offer affordable, helpful health insurance plans to employees and their families is becoming increasingly more difficult.² Almost all (99 percent)

large firms offer group health plans to their employees, but only 50 percent of small businesses can do the same.³ This means that as many as 20 million employees at America’s small businesses don’t have access to employer-based medical coverage, forcing them either to go it alone in the individual medical insurance market, through the exchanges; or worst of all, go without any insurance at all. But there is a better option. Association

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40  AKFCF Quarterly  Winter 2021

health plans (AHPs) were designed to address this challenge and to help small businesses provide affordable, quality health insurance. Association Health Plans – Designed to Help For the past several years, there has been buzz in the news of activities by the Department of Labor (DOL) intended to expand the ability of associations and franchisees to band together to source benefits via AHPs. Association Health Plans, however, have been around for more than 30 years. Today, the DOL allows associations with strong common business interests to band together in trusts as long as they meet a few conditions: 1.  Must be same trade/business interests: KFC franchises yes, Chamber of Commerce member no 2.  For employees only, not 1099 contractors 3.  Employer members control business decisions, not parent corporation, broker or insurance carrier 4.  AHP must be created for more than just group healthcare purchasing; sourcing HR services or business products purchasing as a co-op qualifies. Why is this so relevant to our franchisees? Because the opportunity for savings, and the ability to change employees’ lives with health insurance plans, can be just a benefits plan away. Access to affordable health insurance isn’t just an employee retention play. It changes their lives. When Marshall sourced her new plan, she was able to improve the quality of her benefits and network without an associated increase in

price. Participating as part of a larger association provided her leverage she otherwise would not have had. Beyond Healthcare Access to medical and other health plans is not the only problem for business owners or their staff. More than 90 percent of disability insurance, which covers income loss if an employee is injured or becomes ill, is purchased through employer-provided benefit programs. If an employer doesn’t offer disability insurance, studies show it is extremely unlikely that an employee will purchase such coverage on an individual basis. Only 60 percent of small businesses offer disability insurance benefits, which means that at least 40 percent of small business employees are unlikely to receive long-term disability coverage. This is important because DOL statistics report a 30-percent chance that a 35- to 65-year-old will be disabled for at least 90 days during his or her prime working years. Even worse, an estimated 1 in 7 of those disabled will be unable to work for more than five years. So, a substantial percentage of workers in small businesses can’t protect their most important asset — their ability to work and maintain an income — exposing themselves and their families to major financial hardships.

ployee was more than $1,000. That savings goes back into employee pockets to be used for housing, transportation, recreation, et cetera, boosting other pockets of the U.S. economy. In fact, for employees making $35,000 to $40,000 annually, these are life-changing numbers and can be the difference between affording health insurance for their families — or not. In addition to substantial premium savings, the program provided improved health coverage, additional wellness and pharmacy benefits versus typical small business insurance, benefiting employers and employees alike. Feedback from covered employees was immediate and heartfelt. Larry S.’ tearful reaction was: “My wife is sick; I switched to your coverage because I was told it would cover her. We went to get insulin that I previously paid $1,800 for and when they said it was $10, my wife cried like a baby.” More companies bought benefits for the first time: 35 percent of these small

businesses obtained group benefits for the first time as health insurance became more affordable and the ability to access benefits through the national program was made simpler. That’s good news for both the businesses buying, and the insurance carrier, who is essentially creating (and accessing) a new market of customers. Expanded benefit offerings, with broader coverage: 36 percent of these businesses had previously offered medical coverage. They were able to add new benefits for their employees for the first time, including dental, vision, life and disability. Business owners, who were used to cutting back benefits as a result of premium increases, were thrilled and spread the word among their franchise community. Business owner Holly B. wrote: “We are absolutely pleased! By providing health insurance through this plan, we are not only saving money, but we have better insurance. This is an answer to prayer! I even called other owners in our town and told them about you.”

Case Study: A National Franchise’s System Experience Decisely, with a business insurance broker-partner, launched an AHP Trust for collective sourcing of medical benefits (including dental and vision), adding other nationally negotiated non-medical benefits for a 10,000+ outlet small business franchise group in the automotive industry. The impact on these businesses was impressive, supporting the idea that collective purchasing of health insurance works for small and independent businesses, insurance carriers, and even the national health of private business. The experience among the first set of customers in this program was impressive. They saved: On average, participating small businesses (averaging 18 full-time employees each) saved more than 23 percent in healthcare insurance versus their prior coverage. The cost savings per em-

Winter 2021  AKFCF Quarterly 41

The Southeast Association Healthcare Plan By Jake Rasor, Southeastern KFC Franchisee Association President Reprinted from the fall 2020 issue.

W

hen I began moving through the chairs for the Southeastern KFC Franchisee Association, I was hearing a lot of chatter in Washington about association healthcare plans (AHPs). Over the years, attending regional and national AKFCF meetings, I would hear from large and small franchisees about the increasing cost of health insurance. Some of the smaller operators told me they could no longer offer health insurance because it was too expensive. In the fall of 2017, I began to research AHPs. Through my existing healthcare provider, I contacted Decisely. After providing them with all the information on our Southeast Association, we determined we were a perfect and natural fit for an AHP. The math was simple: The more people who participate in the AHP, the lower the

costs. Most Southeast KFC franchisees that had a healthcare plan were under a small company plan. It did not matter if they had one restaurant or 50. Many received yearly increases of 10-20 percent if their employees did not have major health issues. By pooling many of the Southeast KFC franchisees into an AHP, we should be able to eliminate these massive, yearly increases and lower cost per employee. The Southeast Association Healthcare Plan was launched in the fall of 2019. Initially, we were only able to cover four states through Humana. The franchisees that were able to take advantage of the new plan saved more than 25 percent on their health insurance and over $1,000 per insured. As of July 2020, the Southeast Association Healthcare Plan has not only expanded

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42  AKFCF Quarterly  Winter 2021

to every state in our region, but Decisely will be able to quote health insurance for every KFC franchisee in the nation. Humana expanded the number of states they cover under our AHP and Anthem has come forward to provide health insurance in 14 states. Anthem is the largest Blue Cross–Blue Shield carrier in the nation. Many other “independent” Blues carriers are being brought into the AHP through seeding requests. Decisely is working with Anthem to speed up the approvals with the individual Blue’s carriers. The Southeast Association Healthcare Plan will continue to evolve and become more competitive over the next several months as we bring in more carriers. Some KFC franchisees will have as many as three carriers from which to choose. Upon further review of our bylaws, it was determined that any KFC franchisee outside the Southeast Association can join our Association for $30 and participate in the Southeast Association Healthcare Plan. I encourage you to reach out to me so I can walk you through the simple process to join the Southeast so Decisely can provide you a quote for your health insurance. As of the fall of 2021, Decisively completed plans to include Anthem (Blue Cross Blue Shield) to increase the expansion of the AHP to 22 states under Anthem. Additionally, Anthem can pursue local “Blues” in states where Anthem doesn’t currently have a presence to continue the growth and coverage across the country. The average renewal rate increase for participating KFC Franchisees was 7% with some incurring no renewal rate increase. The most saved by the system was 68%, but an average group can expect to save 23% annually. You can get a free quote at www.franchiseebenefits.com.

Finally, the trust was able to negotiate better “minimum participation” requirements than small businesses would have been able to source on their own, both on medical insurance and other non-medical insurance. For example, most of these businesses were too small to qualify to offer disability, but under this national program, disability was offered to all companies with a minimum of two participants. This automotive program, which launched in late 2017, continues to grow and thrive. Like most plans, rates have increased over the years, but its participants are still saving. It’s not a one-year-and-done plan – it has been built for long-term health. Saving Money, Helping Businesses Thrive Independent businesses are part of the U.S. economy’s backbone, inclusive of race, religion, politics, and socio-economic status. For their health and even the larger economic good of the nation, employees and their families need better access to affordable, useful benefits. Reducing cost and broadening access to benefits for employees reduces the number of uninsured, and helps businesses save time and money. Bringing groups together to source benefits can make the independent business community stronger, allowing them to compete with larger corporations for valuable employees. Through association health plans, today six million small businesses buy individually, but tomorrow they will buy together.

employees and a healthy bottom line. One of the major ways Decisely helps small businesses is through the formation of collective sourcing solutions for more cost-effective and expanded benefits across multiple small businesses.

*This article was originally published in the fall 2020 issue of the Quarterly and updated for this issue of the magazine. n

OUR BUCKET IS ALWAYS FULL.

1Source: U.S. Census Bureau 2014 2Source: CNBC: https://www.cnbc. com/2021/11/11/premiums-for-employerhealth-insurance-have-jumped-47percentin-10-years.html 3Source: Decisely internal enterprise research, 2018-present Decisely, a specialty benefits and HR solutions technology firm and the administrator of the SEKFC Benefits Center, as well as the Franchisee Benefits Center for AKFCF, was founded on the principle that small and growing businesses should have access to the same comprehensive benefit plans as large corporations. Franchises participating in the SEKFC AHP experienced savings versus their renewals ranging from 25 percent to 47 percent, averaging 36 percent overall. The Decisely mission is to support small businesses in their efforts to keep healthy

Tyson Foods is proud to be a KFC supplier offering our unrivaled breadth of resources including customer support and a commitment to quality—buckets full. ©2020 Tyson Foods, Inc. Trademarks and registered trademarks are owned by Tyson Foods, Inc. or its subsidiaries.

Winter 2021  AKFCF Quarterly 43

RSCS MEMBER PROGRAMS

PICTURE YOUR SAVINGS WITH RSCS MEMBER PROGRAMS By Tara Morrison

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ur goal at Restaurant Supply Chain Solutions is to provide value to our members. Member Programs provides value to our franchisee partners by offering discounts on products and services used to run your business. From waste services and pest control to in-store music and security systems, we’ve got you covered and are constantly adding new programs, categories, and vetted suppliers to our service offering. Using our waste services program alone could save you up to $1,000 a month, but Member Programs has many additional programs that can help you save money on products and services

44  AKFCF Quarterly  Winter 2021

you already use today. We have negotiated discounted rates for the following: • cleaning services w/ Cintas and UniFirst • cell phone plans w/ AT&T and Verizon • prefabricated building services w/ Fullerton Building Systems • security systems w/ SimpliSafe • office supplies w/ Office Depot and Staples • oil management w/ Restaurant Technologies • slip-resistant shoes w/ Skechers and Shoes for Crews • AND SO MUCH MORE! Our entire list of programs can be found on the Member Programs website at https://apps.rscs. com/MemberPrograms/Login.aspx but get excited, because our NEW Member Programs website is COMING SOON! The Member Programs website is where you will find detailed information on each of the programs we offer, the discounts available, as well as how to sign up. You also can sign up for our email newsletter to receive Member Programs highlights of our various programs, special promos throughout the year, and up-to-date Employee Perks flyers to hang in your restaurants. Our in-restaurant marketing materials, as well as our service offerings are ever-evolving, so our mailing list is the place to be! Employee Perks is a free benefit for all our members and their employees that offers discounts on products and services from a multitude of retailers you may already be using today. We have discounts on cell phone plans, movie tickets, electronics, and more! The newsletter and website both have printable flyers that you can download and distribute to your employees, which includes a QR code so they can quickly sign up for their free Employee Perks discounts. Our goal is to provide the most value to our

operators with these programs and we appreciate your feedback. If there is a product or service that you think would be a great addition to Member Programs, please email us at memberprograms@ rscs.com. Member Program Spotlight: NEW Re-negotiated Automated Oil Management Program w/ Restaurant Technologies Through our program with Restaurant Technologies, operators can serve great-tasting food more consistently, with less waste, in a safer, cleaner, more productive environment. Sixty percent of workers’ compensation claims in kitchens are related to cooking oil, whether through burns, slips and falls, or soft tissue injuries from handling heavy jugs and waste shuttles. Restaurant Technologies’ oil management program eliminates the risks involved with manually changing out fryer oil. There are no upfront capital costs and no unexpected service charges. Restaurant Technologies offers a closed-loop, fully automated system for managing new and used frying oil. They deliver and pick up oil via a lockable outdoor box

while also using web-based management reporting so that oil usage is always being monitored. This re-negotiated program features a lower weekly program fee and higher used cooking oil credit, which in this lucrative oil market can result in a profit on your used cooking oil. Restaurant Technologies’ dedicated staff will ensure your team is fully trained once the system is installed and offer ongoing support and additional training when necessary due to turnover or new equipment. Without having to worry about fryer oil you can get back to what matters most, Finger Lickin’ Good Chicken that Colonel Sanders would be proud of. You can find more information on how to get started with Restaurant Technologies on the Member Programs website. n

Winter 2021  AKFCF Quarterly 45

KFC FOUNDATION

THE REACH GRANT APPLICATION OPENS FEBRUARY 1! By Elizabeth Edrington, KFC Foundation Communication Coordinator “Waking up to an email that read ‘REACH Grant Winner’ was momentous. I cried tears of joy for almost an hour because the excitement was so surreal. I have never received so much money, and for it to all go towards a dream is insane. I cannot stress enough how thankful I am about the assistance KFC has for its employees. Programs like this can change someone’s life. From the bottom of my heart, thank you to all those who have assisted me in making my educational dreams one step closer to achieving. Thank you to KFC and the KFC Foundation for this unforgettable opportunity.” —Alicia Navarrete, two-time REACH Grant winner and shift supervisor at D016017 (Imran Ahmed)

REACH Grant in 2022? The applicant must: • Be a restaurant general manager, assistant manager, shift supervisor or team member at a KFC restaurant participating in the KFC Foundation’s 2022 Annual Donation Program • Be a high school graduate or equivalent (regardless of when you graduated) • Plan to be enrolled in college, trade/vocational school, or graduate school for the Fall 2022 semester • Have a minimum 2.5 cumulative grade point average (GPA) on a 4.0 scale on their most recent transcript (high school or college).

Reflecting on the REACH Grant Enhancements from 2021 • Transitioned to a new program partner, Kaleidoscope e’re excited to make even • Streamlined the program more of these moments from two application periods possible for even more KFC per year to one application restaurant employees this year. period per year The 2022 REACH Grant • Enhanced the Janet L. application will be open from Kuhn Scholarship award Feb. 1-28, 2002 and can be acfrom an extra $1,000 to cessed via the KFC Foundation doubling their REACH mobile app and kfcfoundation. Grant award. (e.g., If an org. Your employees could reemployee won a $2,000 Alicia Navarrete ceive between $2,000-$3,000 for REACH Grant and also college, trade/vocational school, or graduate won the Janet L. Kuhn Scholarship, school! Winners will be announced in April. they’d receive $4,000 total. If they won Every participating restaurant will receive a $3,000 REACH Grant and won the a poster promoting the REACH Grant appliJanet L. Kuhn Scholarship, they’d cation period in the Jan. 10 POP Kit. Follow receive $6,000 total!) up with your restaurants and make sure they • Consolidated the application prohave the poster displayed in the BOH for cess from a two-part application (initheir team to see. tial application and then semi-finalist Spread the word about the upcoming application) to just one application, application period and encourage your teams to make it simpler and smoother for to apply! Who’s eligible to apply for the applicants.

W

46  AKFCF Quarterly  Winter 2021

New this year! 12-month mentoring program for REACH Grant winners We’re excited to incorporate mentoring into the REACH Grant, making it a comprehensive program rather than just a one-time transaction. Our program partner Kaleidoscope is passionate about the impacts of mentoring and has put together an incredible program to set up your REACH Grant winners for success in college. Mentors will be specially selected for each student and will work with the mentee to establish goals and expectations for the men-

torship. For the next 12 months, mentors will help their mentees accomplish their goals, overcome obstacles, and have a smooth and successful academic year. Additionally, the mentoring program will include a special summer campaign to help their mentees navigate everything they need to do leading up to the fall semester, encouraging them to follow through on their commitment to attending college this fall. According to a study by researchers Benjamin Castleman and Lindsay Page, 10 to 20 percent of students who enroll in college do not end up attending in the fall. “Summer melt,” as this phenomenon is called, is even more prevalent for low-income students, students in large urban districts, and community-college bound students — with attrition rates as high as 40 percent. Researchers found that offering college-intending people two to three hours of additional summer support increased enrollment by three to four percentage points overall and eight percentage points among low-income students. To combat “summer melt,” REACH winners will receive automated and personalized text messages throughout the summer reminding them of required college enrollment tasks, such as paying tuition, registering for classes, etc., as well as texts to assist students in using their grant and taking advantage of other KFC Foundation resources. We can’t wait to see the difference that mentoring makes for your REACH Grant winners! Reminder: Rise to REACH Guarantee The KFC Foundation offers a Rise to Reach Guarantee, which ensures every GED grad who applies, follows all instructions and meets the minimum eligibility requirements will receive a REACH Grant to further their education in college or trade/vocational school! Reminder: KFC employees can claim col-

lege credit through completed training! Did you know: Many KFC restaurant employees have college credit available through the required training courses they’ve completed at KFC! Spread the word to your employees that they could save money on college by following just a few simple steps to apply for ACE CREDITs on TeamKFC (search “ACE Credits”). Read more about the impact of the REACH Grant program in the KFC Foundation’s Annual Report. Just scan the QR code or go to kfcfoundation.org/annual-report. n

Winter 2021  AKFCF Quarterly 47

REGIONAL SHORT

GREATER MIDWEST UPDATE By Kevin Schlutz

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n-person regional meetings have resumed! Our longing to get together and share stories, fellowship, and best practices with our fellow operators actually happened late in September at the Super Regional meeting at the Hyatt Regency Tamaya in New Mexico. No, we didn’t have as many attendees as we had hoped for, and we didn’t have many franchisees from regions other than the Greater Midwest and Greater Southwest at the meeting, but as our AKFCF President Brandon Robertson reminded us, we must get back to in-person meetings and we have to start somewhere. We’re also thankful for all our vendor partners that attended, especially the Vendor of the Year for the Greater Midwest, which was Mansen and Deborah Way of Awningtec, who have been helping with superior exterior remodel items and signage for many years. If you remember my spring article, the Greater Midwest had not had an in-person meeting since their merger, and while we had met together at the Super Regional for many years, this meeting had a different vibe as we were all getting more comfortable with those who weren’t in our region before. We had our first Board meeting together, we had our first elections, our first regional business meeting, and the firsts continued. Welcome to new Greater Midwest President Nanette Walker and first Vice President Vijay Patel, who will continue the process of unifying our merged region. Many thanks to our Immediate Past President Noah Hommerding, who more than held things together and wore several different hats over the past few years to keep things moving ahead. Thanks to all our outstanding regional representatives

48  AKFCF Quarterly  Winter 2021

to the important national committees and boards. They do a fantastic job of representing us. While this isn’t their day job, we couldn’t do our meetings without our crack audio visual team of Justin and Jon Stewart, who make everything work during our meetings. Thanks also to Colleen and Kris, who work with the hotel to have successful meetings. So, we’ve started building that cohesiveness and familiarity that we yearn for. We all know the value of coming together at our meetings as operators, vendor partners, and corporate partners. We get so excited to see everyone and catch up on each other’s experiences. We discuss the current hot topics. We lament those that have left the system or have passed. We meet and welcome those who have recently joined. We learn from our representatives and take home the ideas that we can use to improve our businesses. We see the latest offerings from our vendor partners and converse with them. We hear from our AKFCF president and general counsel. We hear the latest from our corporate partners. The whole trip also is a respite from the day-to-day that we have all been experiencing for way too long. For some, it’s the only break they will get this year. I can’t describe how good it felt to be back together with all these friends. The camaraderie, the teasing, and catching up was worth the trip on its own. For those who couldn’t come, our next big opportunity is in Orlando at the AKFCF Convention. You should already be registered, and your trip planned by the time you are reading this. I have been reminding the region regularly about getting registered, and as of this date the Greater Midwest has the most registered attendees.

We look forward to seeing you all there! On the more sobering side, we continue to lose franchisee members almost every week to buyouts. While so far all of those have been to other members, and we are happy both for the buyers and the sellers, that really changes the complexion of the region as the number of organizations drop, which was one of the primary reasons for the merger in the first place. We are happy to have a full slate of officers, representatives and board members, and others interested in serving, but it takes everyone, and we can always find a job for someone interested in serving their fellow franchisees, so please contact us if you would like to serve. If things are going to get back to normal, we all need to start planning. Our AKFCF Convention sites are already set for another five years, but our region has only next fall’s Super Regional meeting contracted. We need to get started thinking ahead again. Do we have a spring meeting next year, or just a Board meeting? Our Board believes in Spring RGM meetings. While the RGM Connect was good, nothing compares with an in-person meeting for RGM development. With our much larger region, it becomes even harder to find a venue that is convenient. While the Greater Midwest will not have an RGM meeting in 2022, we are discussing with other regions how we can send interested member groups to their meetings, while we work on plans for our own meeting again in 2023. For the Super Regional, we always have tried to alternate our meetings east and west to make it closer for part of the Super Regional group. We have a site in Florida for 2022 and are looking in Arizona for 2023. n

REGIONAL SHORT

SOUTHWEST UPDATE By Shane Lovato

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his past year will be one we never forget. Along our journey this year, we have learned to be patient, adaptable, and understanding. Perhaps we overlooked some growth factors because of our busy lifestyles. Being a part of a brand that not only has grown during challenging times but has been able to stay true to our core will be what pushes us forward for years to come. Hope has been our region’s motivation. We hope to get back to somewhat pre-covid meetings and creating a regular schedule that our members can rely on. We know now more than ever that our members need to be represented. Whether its through our board members who are part of the NCAC and other sub committees, or if it’s just a quick call to vent on how labor is affecting their market. Creating a collaborative space for our members will be our top priority going into the new year. As we continue to support our normal channels of communication, we will be trying new ways to reach our members and non-members. One advancement we are currently working on is a new website. Our new site will be mobile friendly and be able to push out notifications to our members so they will have the most up-to-date information. By creating a website that looks more like a social media platform — much like KFC Strong — we hope that it will be easier to navigate and save the information you need. Consolidation has been overwhelming this past year. We have had a considerable number of franchisees sell to larger companies, which does not affect our overall restaurant count, but does affect our member numbers. We hope that we can double our membership count this next year by exploring new avenues and opening meetings to different groups who may not know the benefits of what we do. Our current goal is to create a region that everyone will want to be a part of. We know that it’s hard to see the impact of a region when you are not a member, so hopefully

Creating a collaborative space for our members will be our top priority going into the new year.

e

by creating a robust event calendar, we can pull operators in with the sense of curiosity. Last but not least: I would thank everyone of our board members for being able to stay excited and motivated this year. I know that each of us had challenges that made this year harder. Yet we still have the want to create a great regional team. I know that all of us are looking forward to meeting again in person to start working on the new events we have planned. Thank you to our teams that are working in our restaurants and are diligently staying patient and adapting to anything that is thrown their way. It’s been awesome being able to give any support we can. As always, please reach out with any ideas or recommendations you would like our region to consider. Thank you for being you and best wishes! n

Winter 2021  AKFCF Quarterly 49

FINANCE COMMITTEE REPORT

RETURNING TO NORMAL(ISH) By Jennifer Thomas, Finance Committee Chair

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AKFCF was well-positioned to weather this storm thanks to a long history of fiscal responsibility. The treasury was strong as we entered the pandemic and a planned budget deficit for the year was minimized greatly.

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50  AKFCF Quarterly  Winter 2021

iving through a pandemic for the past two years has been a powerful reminder that the only constant is change. Of course, no one knew that better or was more mentally prepared for turmoil than restaurant operators. For us, the question is not IF we will face chaos each day, but HOW MUCH. I always have admired the KFC franchisee family for the ability to take it all in stride and usually with a high dose of humor. The shake-up from the last two years produced some opportunities on which we capitalized — a chance to recapture guests who were looking for a trusted source for family meals, a boom to digital transactions, and the efficiencies realized from limited channels. But it also came with challenges — the toughest labor market to date, ongoing supply issues, and inflation on cost of goods. For the AKFCF there were highs and lows as well. We optimized the results of a virtual Convention, but could not quite create the financial or fellowship magic of an in-person Convention. AKFCF was well-positioned to weather this storm thanks to a long history of fiscal responsibility. The treasury was strong as we entered the pandemic and a planned budget deficit for the year was minimized greatly. There was no need to utilize money from the Contingency Fund and all our investments are growing again. And the great news is that Convention is back for 2022 and touts some exciting new features! Brandon and the rest of the AKFCF team are determined to make it the best ever. There is another change to mention. My family has recently sold all its restaurants. I am no longer a KFC franchisee (except in heart) and a new Finance Chair will need to be selected. When that is done, I will transition out of the role. However, I still will be involved in the system as the executive director of the SEKFCFA. My sister, Debbie Deane, also will be working with the SEKFCFA as the administrative manager. We are really thrilled to have this opportunity which allows us to continue coming to Convention and contributing to the AKFCF cause. I would be remiss if I didn’t say a huge thank you to all who have supported me in the role of finance chair. The Finance Committee works hard on behalf of the AKFCF and its members and I am truly grateful for all their effort. Roger Sparks (AKFCF treasurer), Keith Cole (executive committee liaison), Kelly Rodenberg (AKFCF executive director), Michelle Hunt (AKFCF administrative manager), Dave Evans (past treasurer), Chris Fowler (AKFCF past president and large operator), and Jeremy Dimick (1st VP of the Northwest) have made my job easy and ensured that your money is protected. Please show your appreciation to them for volunteering to serve. Change is the only constant. Franchisees would be bored if we had “normal” lives … normal(ish) is more our style! 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.

Winter 2021  AKFCF Quarterly 51

EXECUTIVE DIRECTOR UPDATE

DON’T BE AFRAID OF NEW OPPORTUNITIES By Kelly Rodenberg

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asier said than done, right? I’ve put this advice to work in my own career, especially at times when the road ahead was uncertain. When I was asked to become the director of a department, or learn how to create a virtual learning platform, I had concerns and questions. I wasn’t sure the opportunities were right for me, or whether I could successfully take them on. But I jumped in and learned all I could. And yes, I’ve made mistakes along the way. Those experiences prepared me for future opportunities, including my current role as your executive director. And those early experiences are the groundwork that allowed me to learn even more today with all the interactions and experiences that I am granted. I’m incredibly grateful for the opportunity I took eight years ago to come work for the AKFCF. It was a quite

When asked to step outside your comfort zone, don’t be afraid of saying yes. Those risky, scary assignments can be the most powerful and rewarding.

52  AKFCF Quarterly  Winter 2021

different organizational structure compared to that which I was accustomed. The ability to adjust and learn in new situations has never been more relevant than now. The world is changing quickly. As we see in the landscape of our franchises, our regions, our meetings, and our technology, each of us are seeing and feeling that change every day. Although we can’t be sure where the next opportunity will take us, we only can try to learn from it. Another thing I’ve learned is that as new opportunities arise, you don’t have to go it alone. Just ask! We all need a variety of friends, leaders, or mentors whom we can trust to tell us the truth, even — especially — when it might not be what we want to hear. I have several people to whom I turn regularly for advice and guidance. Their feedback can be invaluable in allowing me to take on more opportunities that I may not see clearly. When opportunity knocks, open the door — even if you don’t know what’s behind it. Grab ahold of new situations to learn as much as you can. An opportunity can take on many forms. We all have had people come into our lives and we questioned why. And it may not be until months or years later that we understand their purpose and timing. When asked to step outside your comfort zone, don’t be afraid of saying yes. Those risky, scary assignments can be the most powerful and rewarding. Again, don’t go it alone, work with and learn from those around you. If the right opportunities are not coming to you, work with the people around you to start your own. Become that person who likes a challenge, manages it successfully, and becomes better from it. I would not be in this industry if I didn’t love a challenge! I hope many new and powerful opportunities await you in 2022! n

LEGAL UPDATE

THE UNCERTAINTY OF THE COMING YEAR By Ron Gardner

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am writing to you in mid-December, as the world faces the prospect of turning over the calendar and tackling our problems with resolutions and renewed vigor. But, as we all know, resolutions that are easily broken do not solve many problems, and the challenges we face in 2022 are real. Fortunately, we are all part of a system that is doing its best to work together to recognize those issues and to come up with concrete solutions to help you weather the coming uncertainties. Top of mind for me, and for many of you, is the news of rising inflation. At a macro level, inflation in the economy is everywhere — being driven by a multitude of facts, including trillions of dollars being infused into the economy during the past couple of years through government aid; pent up demand for many products and services as a result of the pandemic; and the fact that many sellers of goods and services were reluctant to raise prices during the past couple of years, leading to the need to increase those prices now on a “catch-up basis.” Whether it be because of increased demand, the increasing cost of producing goods and delivering services (both related to raw materials and the labor associated with such production) or otherwise, the prices on just about everything are going up. This, of course, will have an effect on your bottom line. In the KFC system, you are fortunate to be members of a robust and active purchasing co-op. The RSCS works tirelessly to obtain the supply of needed materials and services required to run your KFC. Oftentimes, the way the RSCS holds down prices over the long haul is to enter into supply agreements, locking in prices for years at a time. Unfortunately, this occasionally means that when these supply agreements

expire, vendors are eager to push up prices higher than what they typically would to make up for “lost time.” Moving into 2022, we are also dealing with a bit of that issue. Because of the coming inflation on virtually all goods, but, most importantly, poultry, KFCC, the RSCS, and your franchisee leadership, have made several presentations, by virtue of Town Hall calls, as well as the AKFCF co-sponsored business academy, to help you understand and deal with inflation through better pricing

Winter 2021  AKFCF Quarterly 53

To assist you in “getting it right” in your market, the NCAC has agreed to pay for up to three rounds of analysis for any enrolled franchisee in the RMS program in the coming year.

and sloping within your menu. To assist you in “getting it right” in your market, the NCAC has agreed to pay for up to three rounds of analysis for any enrolled franchisee in the RMS program in the coming year. As I hope you know, RMS is a company that has partnered with the NCAC, who will do a pricing analysis of your menu and your market, and make recommendations to you on where you have the opportunity to take pricing in order to off-set your increasing costs and/or increase your profitability. I strongly urge you to take advantage of the opportunity to participate in the RMS process, at no cost to you, multiple times during the coming months as you attempt to deal with the inflation at hand. Somewhat related, we also are expecting interest rates to rise. On the day I am writing this article, the Federal Reserve Board has announced it is expected to raise interest rates more rapidly than previously forecasted and as many as three times during the coming year. This will affect your ability to borrow money and your ability to maintain a profit to the extent your loans are based on variable rates.

54  AKFCF Quarterly  Winter 2021

My suspicion is that the way this interest rate increase will affect most of you will be those of you who will be dealing with potential remodels or significantly investing in your restaurants during the next year. My strong advice to you is to lock down the capital you need as soon as possible, whether by obtaining a fixed-rate loan or line of credit. The sooner you do so, the better situated you will be to stave off the effect of higher interest rates. Of course, another way to stay profitable is to simply increase sales. Again, KFCC and your franchisee leadership are working hard to make sure that the sales momentum enjoyed over the last several years continues, despite these potential headwinds in the economy. We are making significant strides in many ways. Over the last several years, we have seen KFC rise in the rankings of preferred QSR restaurants for consumers, and we continue to focus on those things that will continue to improve these metrics. At the restaurant level, your commitment to safety, cleanliness, and a great customer service experience are the top ways in which we can continue to remain relevant and competitive. People who enjoy going to your restaurants will return to your restaurants — it is that simple. No matter what amount of work national marketing does to drive customers to your restaurants, if the customers are not happy when they leave, the chances of seeing them again any time soon are slim. Thank you to all of you who have recognized this fact and have continually strived to improve your restaurants in appearance, the quality of service, and quality of the food you provide to our valuable customers. But to be sure, national marketing matters — a lot. We have a lot going for us there as we are heading into 2022 as well. The recent press to make the brand younger and more relevant has never been more of a focus during my time working with the KFC system. In that vein, we have recently signed a long-term deal with Louisville pop star, Jack Harlow. We will leverage Jack’s celebrity status and his deep ties to Louisville and love of KFC to expose the brand to an audience who does not necessarily think of KFC often. We are excited about this prospect, and think it is the right commitment to make at this time. Additionally, we are diversifying the type of customer who may come into your restaurant. By the time you read this, we will either be in the midst of, or just about to roll out, our “Beyond Chicken” promotion, exposing your restaurant to

By the time you read this, we will either be in the midst of, or just about to roll out, our “Beyond Chicken” promotion, exposing your restaurant to people who might otherwise not regularly think of KFC as a place to eat. people who might otherwise not regularly think of KFC as a place to eat. Of course, it should almost go without saying that we will spend much of the year focused on driving great results with your core customers selling your core products. Sandwiches, chicken on the bone, high-end and low-end, are all part of the marketing calendar during this upcoming year. We are well positioned to continue the sales growth that so many of you have enjoyed over the last several years. So, while the macro news for 2022 is, indeed, daunting, we are resolute (see what

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I did there) in our commitment to provide you with the tools to not only fight the apparent negative trends coming our way, but also to continue to drive sales at the top line to give you the volume you need to remain profitable. n This column is for the general information of members of the AKFCF and should not be relied upon as legal advice. Please see your own attorney or professional advisor for questions concerning your franchise agreement. Ronald K. Gardner is General Counsel of both the AKFCF and the NCAC.

5

AT&T Business

13

Auspex Capital

42

Café Valley Bakery

41

Case Farms

C3

Dr Pepper Snapple Group

1

Ecolab Kay Chemical Company

50

FSV Payment Systems

7

Gycor International

29

KFC Foundation

33

Koch Foods

C2 Magnesol 25

NDA, Inc.

19

Pacific Premier Franchise Corporation

27 Partstown 31 Workstream 34

Paychex, Inc.

40 Paycor 3 PepsiCo 35 Pilgrim’s 11

Procter & Gamble Distributing

8, 9, 45 Restaurant Supply Chain Solutions 15

Restaurant Technologies

43

Tyson Food, Inc.

23 Welbilt KFC first test-marketed its Beyond Fried Chicken in Atlanta, Georgia in August 2019. The product sold out within 5 hours and convinced KFC to take it national.

C4

Winston Industries

Winter 2021  AKFCF Quarterly 55

Photo Courtesy of KFC Global

LOOKING BACK

56  AKFCF Quarterly  Winter 2021

STILL THE ONE KFC is still the world’s favorite fried chicken. Winston is proud to have been with you since the beginning, helping to fry up the chicken that humanity craves. Thank you for your support and patience as we ramp up through this recovery. We treasure your partnership.

See us in Orlando, March 7-10! Barry Yates, Yum! Guru bgyates@winstonind.com 502.643.1506 KFCFryers.com