AKFCF Winter 2022

QUARTERLY

Association of Kentucky Fried Chicken Franchisees, Inc.

The AKFCF 2023 Annual Convention in

n i t s u A

PLUS: KFC Foundation | GAC Report | Legal Update

Winter 2022

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CONTENTS

AKFCF QUARTERLY Winter 2022

18

22

38

FEATURES

DEPARTMENTS

18 By Amber Peoples

4

From the Editor

6

President’s Report

GAC Report: 118th Congress Finally Decided Democrats retain control of the Senate while the House chooses a new Republican leader.

A Foundation Of Family 22

By Kelly Rodenberg Join your fellow franchisees from across the country in Austin, Texas from Feb. 26 through Mar. 1, 2023, for an amazing experience.

THANKS TO YOU, $500,000 IN KENTUCKY FRIED WISHES CAME TRUE 38

By Elizabeth Edrington In September, 50 non-profits across 25 states were surprised with a $10,000 grant to make a community development project on their wish list come true.

10 NCAC Report 12 In the News 46

RSCS Member Programs

48

KFC Foundation

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

On the Cover: Join Us In Austin This February!

Join your fellow franchisees from across the country in Austin, Texas from Feb. 26 through Mar. 1, 2023. Read about all the details for the 2023 Annual AKFCF Convention beginning on page 22.

2

AKFCF Quarterly Winter 2022

x

IT’S BETTER WHEN WE’RE

TOGETHER

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FROM THE EDITOR

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

PACK YOUR BOOTS & COWBOY HATS!

By Michelle Hunt I hope y’all are excited about the 2023 AKFCF Convention in Austin, Texas! Many of you have already registered, but there are a few stragglers. You know who you are! Don’t wait until the last minute to get registered. Go to www.akfcf.com to get all the details and the link to register, or direct questions to me at michelle.hunt@akfcf.com. We’re A Foundation of Family, and you won’t want to miss our family reunion.

As always, in this issue, we preview the upcoming AKFCF Convention. There are plenty of exciting events, phenomenal speakers, and the opportunity to meet and listen to our nearly all-new KFCC leadership team. Don’t worry: There’s plenty of fun packed into the schedule as well. Plus, you’re going to Austin, which is full of great live music and an extensive food scene. I know there are plenty of foodies in our KFC Family! Check out the Convention article beginning on page 22 for all the details.

The Colonel’s love of giving showed up in a big way in September. The KFC Foundation’s Kentucky Fried Wishes Program awarded FIFTY $10,000 grants to non-profits across the country nominated by our frontline teams.

Our company (Central Iowa KFC) was fortunate to help award one of those grants to a non-profit selected by one of our Illinois restaurants. It was a thrill to surprise such a deserving organization that protects women and children in their community. Read more details about a few of the recipients beginning on page 38. To support the many programs the KFC Foundation offers, they will be hosting the 2nd Annual Colonel Sanders Classic Ray Zimmerer Memorial Golf Scramble, as well as a silent and live auction during the Stubb’s Bar-B-Q event at Convention.

On page 18, you won’t want to miss the GAC Report after the mid-term elections and how to make your PAC donation for 2023. You can always reach out to your regional GAC representative directly or Amber Peoples at Polaris Government Relations if you have questions regarding the PAC. In addition, the AKFCF will be hosting a GAC luncheon at the Convention with guest speaker Darrell Hammond who is sure to entertain! This event is open to all attendees.

Pack up your boots and cowboy hats and join us in Austin from February 26 through March 1, 2023. See you there!

4

AKFCF Quarterly Winter 2022

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

Keith Cole Michelle Hunt Julie Mantlo Michelle Hunt Kevin Schlutz Kelly Rodenberg Brandon Robertson

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:

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

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

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FROM THE PRESIDENT

REGIONAL MEETINGS — CHECK

By Keith Cole

A

s the AKFCF President, you are expected to travel to each regional meeting during your tenure. For me, I guess that was kind of an open secret. I saw the president at our Northeast meetings every year but hadn’t really thought about them going to the other regions.

Well, my time came in October, as there were three meetings that month. The Super Regional meeting in Florida, followed by the Southeast meeting in Nashville, concluding with SoCal/Northwest in Hawaii at the end of the month. Some folks would love that schedule. Having an 11-year-old daughter at home and a business to run, I was not looking forward to all that travel. I sucked it up and only complained to 100 people or so. One friend, who shall go nameless, (OK, it was Roger Sparks, AKFCF Treasurer, New Mexico), told me “you’re the only person I know who can find a problem with having a stay in paradise.”

He was referring to Hawaii, I think. Of course, he is correct. Having performed my presidential duty, I am relieved the month of travel is over but, I am also feeling a much stronger sense of pride and connection with our Regions. After being allowed to visit each meeting, I no longer look at it as a duty, but a privilege. Spending time with people I know

and meeting some new faces along the way has reinvigorated me as I prepare for our Annual Convention in Austin this February.

It is easy to see why we always say our Regions are our strength when you have the chance to attend these meetings — meetings held on a much smaller budget than the Annual Convention but no less impactful, educational, and inspiring. In each meeting, I found a best practice or a point of information that I was able to bring back to my business or to the AKFCF. The Super Regional was held at the Tradewinds in St. Pete Beach, Florida. I was able to recognize Kevin Schlutz, Noah Hommerding, Andie Cremer, Mike Houston, and Carl Coulter with our new AKFCF Shining Star Award. The old award has been officially retired and the new and improved award is a perfect next step. Thanks to Michelle Hunt for researching and finding it.

Having attended a Super Regional before, I knew the Vendor Appreciation Dinner would be a highlight of the week and it did not disappoint. The Northeast Regional breakout meeting was productive, and the way the three regions took turns carrying the load in the larger meetings was impressive. A super job by all!

After being allowed to visit each meeting, I no longer look at it as a duty, but a privilege.

Spending time with people I know and meeting some new faces along the way has reinvigorated me as I prepare for our Annual Convention in Austin this February.

6

AKFCF Quarterly Winter 2022

The following week, I was off to Nashville and the Grand Hyatt Hotel. A great property and once again a great meeting. I had the opportunity to recognize Joe Kendall with his Shining Star Award. At this meeting, KFCC gave us an introduction into “Get it Right, Make it Right,” our new brand endeavor to improve our accuracy scores with customers.

This is a program that will be out in front well into next year. It was a valuable peek under the tent that we will expand upon at Convention. The final night was at Ole Red’s on historic Broadway in downtown Nashville and a great time was had by all.

The month was capped off by the SoCal/ Northwest meeting at the Waikoloa Beach Resort in Hawaii. I was able to recognize Fred Jackson and Israel Diaz with their Shining Star Awards. I was especially pleased to be able to sit in on SoCal’s regional meeting.

These leaders were highly engaged with what they needed to do to compete in their Region, right down to hold times. Very impressive discussions, as an entire region is drilling down into restaurant day-to-day operations.

Kudos to everyone involved in planning and executing all three of these meetings.

Now, it is time to really focus in on the finale of the presidency, our Annual Convention. We will be in Austin, Texas from February 26 until March 1, and I am excited about the program we are preparing for you.

From the meetings to the workshops, speakers, and entertainment, Kelly Rodenberg and our Convention Committee have been working hard since April to ensure we have an informative and inspiring Convention.

See you at Convention in Austin, where I am hopeful we will have 1,200 to 1,400 people in attendance, who can listen to me complain about travel, live and in person!

Ear plugs will NOT be provided. n

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NCAC REPORT

WORKING TOGETHER AND STARTING 2023 STRONG

By Tom Broome, NCAC Vice Chair

I

hope you enjoyed a wonderful holiday season with family and friends. I am very grateful for all of you and the strong, resilient family that we are together as KFC franchisees.

I want to thank all of you for coming together and voting to continue our 4.5 percent national advertising contribution rate for another four years. This important step allows us to continue our marketing efforts and continue to grow this great brand. By the time you read this, your NCAC should have more details out to the franchisees about other elements of the vote and agreement. At the February AKFCF Convention, you should look to see and hear more from KFCC regarding technology advances and equipment to be further discussed and negotiated in the future.

Your NCAC continues to partner with KFCC

10 AKFCF Quarterly Winter 2022

on thoughtful and intentional marketing programs for 2023 and beyond. Ensuring we can drive more working media and marketing efforts to grow transactions and profitable sales is essential for all of us. With a continued contribution to the ad fund, providing value to our customers with relevant, engaging, and actionable media programs will remain at the forefront. Leveraging traditional broadcast and radio channels along with digital and social channels to meet our customers where they want to engage with KFC is what we will continue to deliver on for you.

We also will be able to market a loyalty program KFCC is developing so our customers can find more reasons to continue visiting our restaurants.

The close of 2022 featured our always-loved Famous Bowls and family meals plus our Sharing is Caring holiday bucket and free cookies. Our brand is known for caring and giving, whether it is in our own restaurants with our own teams and communities or with our KFC Sharemobile out and about with our partner, Blessings in a Backpack, delivering meals to kids and families in need this past holiday season.

The Sharemobile stopped in Chicago, Orlando, and Houston and in true holiday and KFC spirit, surprised and delighted families with special gifts who faced additional difficulties during this past year. I know many of you gave back in your respective communities over the holiday season. Our KFC Family never ceases to amaze me with the spirit of giving and lifting others up.

We kicked off the new year with another KFC fan favorite, our craveable Pot Pies. Our customers love this delicious, warm comfort food. The cold winter months are just the time to showcase Pot Pies, especially at a value price point for customers. We also have news in store

for our customers with Kentucky Fried Chicken Wraps launching in February. Wraps have performed well in test and customers can enjoy these a la carte or in combos. We also will see the quick return of Double Down in March — right around the time of the big basketball events that rhyme with March Gladness. This cult-following favorite is one that fans continue to ask for and, in the spirit of giving, we have an opportunity to promote, drive some more news, and truly highlight our Sandwiches, which we all know, we must continue to promote.

April brings the launch of our Kentucky Fried Chicken Nuggets, a growth layer for KFC. This product is an absolute winner and continues to hold a strong sales mix well after the initial 10-week test in Charlotte. I know first-hand what this has done for our restaurants. We will continue to see KFC innovate in the sauce space — we all know sauces are important to nugget consumers and we need to keep moving forward.

Our customers love our Buffalo Ranch Sauce

Nuggets should help us bring in new customers, satisfy our core customers, and be relevant with families and kids. and more sauce news can only help us. Nuggets should help us bring in new customers, satisfy our core customers, and be relevant with families and kids. We want KFC to be the destination for nuggets with our 100-perecent white meat Original Recipe hand-breaded nugget.

With the strong marketing and promotion of this product with significant media weights around the launch so we get trial and repeat visits, nuggets will be the winner it should be, and we all deserve. We will all win. Let’s do this together! n

Winter 2022 AKFCF Quarterly 11

In the NEWS

KFC HITS THE ROAD WITH BLESSINGS IN A BACKPACK TO HELP FEED FAMILIES

D

uring the holiday season, Kentucky Fried Chicken hit the road with longtime partner Blessings in a Backpack to feed families in need with the KFC Sharemobile, a holiday-edition charitable food truck. In total, KFCC and its franchisees provided an estimated 70,000 meals to kids and families in need, making stops in three U.S. cities.

The KFC Sharemobile delivered finger lickin’ good family meals to families in communities that have been recently affected by food insecurity or other hardships that make it more difficult for families to put food on the table: Chicago: The KFC Sharemobile headed to the Windy City, where the pandemic has amplified food insecurity and exacerbated the many hurdles that families face while attempting to put food on the table.

Orlando: The recent hurricane season devastated communities throughout Florida and displaced hundreds of families, so KFC visited an elementary school in Orlando to provide meals that help bridge the need gap.

Houston: Lastly, the KFC Sharemobile’s tour culminated in Houston as many are having a hard time meeting basic needs following several recent events, including an unprecedented winter storm that shut down power, the pandemic, and busy hurricane seasons that greatly affected the city the last few years.

At each of these stops, KFC surprised families who have faced additional difficulties with special gifts targeted to address specific needs identified by their respective schools, to make their holiday season a little brighter.

“Sharing a meal with family or friends is a special part of the holidays,” says Nick Chavez, CMO, KFC U.S. “Alongside our franchisees, we wanted to make that possible for even more families this holiday season.

Together with Blessings in a Backpack, we’re taking the Sharemobile on the road to do just that!”

Blessings in a Backpack is a nonprofit organization that mobilizes communities,

12 AKFCF Quarterly Winter 2022

At each of these stops, KFC surprised families who have faced additional difficulties with special gifts targeted to address specific needs identified by their respective schools, to make their holiday season a little brighter. individuals, and resources to provide food on the weekends for school-aged children across America who might otherwise go hungry.

KFCC has partnered with Blessings in a Backpack since 2017, donating nearly $1 million to the nonprofit in recent years.

KFCC employees at its Louisville, Kentucky headquarters volunteer weekly to provide and physically package more than 300 meals for local students to take home for the weekend.

“The generous donations from KFC could not have come at a better time, as these com-

munities have been particularly hard-hit this year with rising food costs, inflation, and various natural disasters,” added Erin Kerr, CEO, Blessings in a Backpack. “Because of KFC’s support, we’re able to spread holiday cheer by donating meals for hunger-free weekends and meet each community’s needs.”

In addition to its ongoing partnership with Blessings in a Backpack, KFC restaurants in the U.S. have donated food for more than 20 years through Harvest, KFC’s prepared food donation program. Since 1999, KFC restaurants have donated 87+ million pounds of unsold food to 3,500 local community organizations that feed individuals in need.

KFC franchisees are also bringing the Sharemobile concept to life in markets across the country through local food donations and other holiday giveback moments. Ampex Brands, a KFC franchisee based in Dallas, recently held its annual Day of Giving event and donated 11,000 meals to school children in economically disadvantaged neighborhoods.

For more information on the KFC Sharemobile and to donate to Blessings in a Backpack, visit kfc.com/kfcsharemobile. A $150 donation to Blessings in a Backpack will help to feed one child on the weekends for the entire 38-week school year, and a donation as low as four dollars will feed a child for a whole weekend.

Source: QSR

KFC EXPANDS TESTING OF FUNNEL CAKE FRIES

F

unnel Cake Fries — a new menu item with viral popularity being tested by KFC franchisee KBP Brands — is expanding to include 77 participating Kentucky Fried Chicken restaurants.

Starting November 29, KBP launched a limited test of the Funnel Cake Fries in Kansas City, St. Louis, Omaha, northwestern Arkansas, and southeastern Oklahoma.

Funnel Cake Fries are crispy on the outside, fluffy on the inside, and sprinkled with powdered sugar. They taste and smell like the delicious funnel cakes reminiscent of state fairs and local carnivals but are conveniently packaged for snacking. Customers are encouraged to get creative with menu hacks creating their own fried chicken and

funnel fries combinations by adding Extra Crispy tenders or a KFC Chicken Sandwich to their order.

“As the largest KFC franchisee, KBP Brands takes a lot of pride in supporting test initiatives to enhance the customer experience,” says Tonya Mangels, vice president of marketing activation, KBP Brands.

“The sweetness of Funnel Cake Fries paired with our savory world-famous fried chicken feeds our customer’s ever-increasing interest in new, craveable, and satisfying menu choices.”

Whether customers are seeking a sweet, warm midday snack or after-dinner dessert, Funnel Cake Fries are available in three sizes from individual to shareable, Small $1.99, Large $2.99, and Family Size $5.99 options.

Based on the continued success of the expanded test, additional markets may be added in 2023. KBP Brands is one of the largest and fastest-growing quick-service franchises in the country.

Source: QSR

FINANCIAL ADVISORY AND INVESTMENT BANKING

Since 2004:

Winter 2022 AKFCF Quarterly 13

In the NEWS

KFC CHINA BRINGS MORE LOCAL PRODUCTS TO ITS MENUS, BOOSTING RURAL REVITALIZATION

Y

um China has recently launched the Trio Black cereal drink — a hot breakfast drink — at more than 270 KFC restaurants in Sichuan province and Chongqing.

The company says KFC’s new hot drink is not only an ideal breakfast choice for health-conscious consumers, but an innovative initiative to promote rural revitalization in Sichuan province.

The new drink recipe is made of 70-percent black buckwheat, and 30-percent black wheat and black sesame. All ingredients contain various nutrients and proteins, providing a good source of energy.

One of the main ingredients, black buckwheat, is cultivated in Liangshan, one of the most undeveloped regions in China.

Black buckwheat To better promote rural revitalization in Sichuan province, KFC China began considering including Liangshan black buckwheat in to improve output its supply chain in 2018. After rounds of quality in order to meet tests and upgrades, and with the support KFC’s supply chain’s of local partners, Yum China’s R&D team high standard on quality. successfully developed the Trio Black cereal However, it is worth the tradedrink, which made its first appearance on off as more consumers know us.

KFC’s local menu in Sichuan province and Moreover, cooperating with a global Chongqing. KFC plans to roll out the new brand has also brought us more business drink to more locations across the country. opportunities.”

The drink generates more income for The new drink represents another of local farmers and increases brand recogYum China’s many successful efforts to nition of Liangshan’s black buckwheat. “In bring Sichuan flavors to the Chinese conthe past, buckwheat was sold for as low sumers’ table. In 2008, KFC launched Tenas 50 cents per kilo, so no one wanted to der Beef Pentagon with Sichuan Dengying grow it. As black buckwheat has become spicy jam; classic Sichuan night snacks were more and more popular in the past few introduced to consumers around China in years, the purchase price has increased to 2019. In 2020, a spicy Stir-fried Crawfish about 8 RMB [$1.15] per kilo. Now, farmers Burger Roll was launched nationwide. are more willing to grow it, and our life is In recent years, KFC China is increasinggetting better and better,” said Fu Daming, ly tapping into regional Chinese cuisines, a buckwheat farmer from Liangshan. adding traditional local dishes to its menu Adding black buckwheat to KFC’s menu to meet the diversified needs of Chinese also improves Liangshan’s local economy. consumers and boost local economies.

Chen Jianxiong, general manager of HuanBy partnering with local brands to detai Bio Tech, a local partner of KFC, said, velop regional menu items and leveraging “We have to buy more advanced equipment strong supply chain capabilities to source

14 AKFCF Quarterly Winter 2022

high-quality local ingredients, KFC has successfully introduced dozens of local flavors from more than 10 provinces to consumers across China. In addition, selected regional menu items have been added to the company’s retail product portfolio, available both in stores and online.

Tang Jiqiang, a professor at Southwestern Finance University, commented that including local agricultural products in a major global company’s supply chain will increase their added value and could introduce more products from undeveloped areas like Liangshan to overseas and domestic markets, further boosting rural development in China.

Source: csrwire.com

Condolences: Former Kentucky Governor and KFC President John Y. Brown Jr. passed away in November at the age of 88.

Brown was governor of Kentucky from 1979 to 1983 and is credited with making KFC a worldwide and household name. Brown, a 30-year-old lawyer at the time, and a fellow investor bought KFC from its founder, Colonel Harland Sanders, for $2 million in 1964 (about $19.3 million today). He then transformed the company into one of the world’s largest fast-food chains, with some 3,000 outlets, before selling the brand in 1971 to Heublein Inc. Brown is survived by five children and many friends and family.

KFC LAUNCHES NEW GRAVY LOVERS SANDWICH IN CANADA

G

ravy is the star of the show at KFC in Canada with the arrival of the new Gravy Lovers Sandwich.

The sandwich features a hand-breaded chicken filet, one slice of Monterey Jack cheese, creamy mayo, and one crunchy indented hashbrown on a potato bun. It comes with a side of gravy for pouring.

The indented hashbrown serves as gravy boat to ensure the sandwich overflows with gravy.

While prices may vary, the Gravy Lovers Sandwich is available a la carte for $10.99 Canadian dollars, or about $8.15 U.S. dollars.

You can find the Gravy Lovers Sandwich at participating locations across Canada for a limited time.

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In the NEWS

KBP BRANDS TESTS NEW SMS AND MOBILE WALLET PROGRAM AT SELECT KFC RESTAURANTS

K

FC franchisee KBP Brands, one of the largest and fastest-growing QSR franchises in the country, has partnered with Vibes, the technology leader powering seamless mobile brand experiences, to test a SMS and mobile wallet program at 162 participating KBPowned Kentucky Fried Chicken restaurants in Texas, New York (Buffalo), New Jersey, Oklahoma, and Arkansas. This program enables the ability to meet consumers where they are most active: their mobile devices.

KBP Brands sought to equip local markets with innovative tools to win customers effectively and provide strong, trackable results.

KBP Brands turned to Vibes to boost consumer engagement, increase in-store traffic and grow loyalty at its KFC restaurants through the delivery of timely, personalized messages.

KBP Brands can now instantly reach consumers through SMS and mobile wallet by sending targeted messages to local audiences based on price, demographic, and regional competition. Restaurants also can offer unique promotions to customers, rewarding them for repeat visits or for opting into the SMS program. For example, those who opt-in to the KBP Brands text program from a mobile device receive an instant text alert offer and new offers weekly. To opt-in to the KBP Brands text program, simply text the word “DEALS” to “25899.”

“The text messaging program fills a gap in our local marketing toolkits, serving as an

16 AKFCF Quarterly Winter 2022

efficient mechanism to deliver relevant and timely offers to individuals. A broad value at a national level can be a challenge, especially by geographic area. We wanted the ability to activate compelling messaging quickly based on our restaurants’ unique needs,” said Tonya Mangels, vice president of marketing activation, KBP Brands. “The quick-service restaurant industry is highly competitive, and SMS marketing is a cost-effective tool that will help us both attract new customers and retain current customers.”

On average, brands see immediate rapid subscriber growth with a 98-percent retention rate and a 40x ROI with mobile messaging programs. KBP Brands will benefit from being able to deliver SMS messages at scale within a highly specific timeframe. With Vibes, KBP Brands can provide KFC customers real-time updates at the right place and right time, ranging from local store changes such as hours of operation to menu tests and limited-time-only deals, encouraging customers to visit and repeat business.

“We’re excited to help extend engagement with KFC customers in a personal, connected, and authentic way,” said Alex Campbell, CIO and co-founder, Vibes. “Mobile offers one of the fastest ways to connect directly with a customer, and it will allow KBP Brands to meet individuals wherever they are in the consumer journey.” n Source: Business Wire

Condolences: AKFCF Past President, Daniel Yagoda (2009-2010) passed away on Dec. 24, 2022 at the age of 73. He will always be remembered as a fearless leader, a successful businessman, and a loving friend. A long-time franchisee, Daniel (lovingly nicknamed the “chicken man”) helped his family build a staple in the South Florida community.

He is survived by his wife of 43 years, Cynthia, and their children, Benjamin, Robert, Michael, and Jay. The family requests donation be made in memory of Daniel to the American Cancer Society or The National Pancreatic Cancer Foundation.

Condolences: Carolyn Ann Cooler Hubbard, 71, of Hardeeville, South Carolina, passed away in December 2022 after a long illness. Carolyn was a loving wife, mother, grandmother, sister, and friend to many. After a successful career as a real estate broker, she joined her husband in the KFC business, which enabled her to travel and make many lasting friendships as part of the KFC family. Carolyn is survived by her husband of 51 years, Mike, son Michael (Jennifer), granddaughters Jamie and Rebecca, and a large extended family.

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

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

QSR

Quick Serve Restaurant

REC

Restaurant Economics Committee

RGM

Restaurant General Manager

KFCC

RMI

Restaurant Margin Improvement

Kentucky Fried Chicken Corporation

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

ROCC Restaurant Operations Compliance Check

NCAC National Council and Advertising Cooperative

ROI

Return on Investment

RSC

Restaurant Support Center

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

National Marketing Subcommittee

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

FA (Or F/A Franchise Agreement

OEC

Operations Excellence Committee

FIT

Food Innovation Team

PAC

Political Action Committee

FSC

Food Safety Consultation

POP

Point of Purchase

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GAC Report

118th Congress Finally Decided Democrats retain control of the Senate while the House chooses a new Republican leader.

18 AKFCF Quarterly Winter 2022

By Amber Peoples

A

fter weeks of uncertainty over the final outcomes, the 2022 midterm elections have finally come to a close.

All members of the House of Representatives were up for re-election this year and the races in some states, such as California, Alaska, and Colorado, carried into the following week before declaring a winner. With such competitive races, the Republican “red wave” that was predicted by political analysts did not come to fruition.

However, Republicans were able to turn over enough seats to ensure that they will take control of the House in the new Congress.

Winter 2022 AKFCF Quarterly 19

With the Republicans in power in the new Congress, the House now has the responsibility of electing a new Speaker of the House.

Meanwhile, control of the United States Senate came down to three races in Arizona, Nevada, and Georgia, each of which also spilled over into subsequent weeks. With election night results that were too close to call, many assumed that the Georgia runoff scheduled for December 6 would decide the Senate majority. However, Democrat Senators Catherine Cortez Masto of Nevada and Mark Kelly of Arizona narrowly defended their seats against their respective Republican challengers, Adam Laxalt and Blake Masters, guaranteeing that Democrats will again hold the majority in the Senate and that Congress will be divided for at least the next two years. Incumbent Sen. Raphael Warnock (D-GA) went on to defeat

Republican challenger, Herschel Walker, securing a true majority for the left in the Senate. Although only gaining one seat in the coming year, Democrats now have the advantage of being less threatened by one rogue Democrat, as they were with Sen. Joe Manchin (D-WV) during failed Build Back Better Act negotiations.

Following the results of the final Senate election, Sen. Kyrsten Sinema of Arizona announced on December 9 that she will now be identifying as an Independent instead of a Democrat moving forward. Sinema, who joins the ranks of Senators Bernie Sanders of Vermont and Angus King of Maine, will continue to caucus with Democrat members. Leader Chuck Schumer said that Sinema will remain in her committee assignments and, speaking on behalf of Senate Democrats, stated “We will maintain our new majority on committees, exercise our subpoena power, and be able to clear nominees without discharge votes.”

With the Republicans in power in the new Congress, the House now has the responsibility of electing a new Speaker of the House. Democrats elected Rep. Hakeem Jeffries of New York to lead them in 2023 after current Speaker Nancy Pelosi and Majority Leader Steny Hoyer announced they would be stepping down from leadership. Republicans elected Minority Leader Kevin McCarthy to lead them in the 118th Congress by a vote of 188-31 over Rep. Andy Biggs of Arizona. However, McCarthy needs the vote of 218 of the 435 members of Congress to become speaker and not everyone is certain he will be able to achieve that.

A small group of Republican members in the House, who have been informally nicknamed

Following the results of the final Senate election, Sen. Kyrsten Sinema of Arizona announced on December 9 that she will now be identifying as an Independent instead of a Democrat moving forward.

Sinema, who joins the ranks of Senators Bernie Sanders of Vermont and Angus King of Maine, will continue to caucus with Democrat members.

20 AKFCF Quarterly Winter 2022

the “Never Kevin Caucus” on Capitol Hill, are putting their support behind Biggs for the top House position. If all voting members are present on January 3 for the first vote of the year, the group of five members has the power to block McCarthy and cause the speaker’s vote to head to multiple ballots. Although the five House members, comprised of Biggs himself, Matt Gaetz of Florida, Bob Good of Virginia, Matt Rosendale of Montana, and Ralph Norman of South Carolina, are the only ones willing to speak out, they insist that there are as many as 20 members who will vote against the current Minority Leader.

McCarthy, who has served as Leader to Republicans since 2014, has voiced his confidence in his ability to get the necessary votes to win the speaker election. “We’ll have 218,” McCarthy told reporters in the Capitol. “At the end of the day, we’ll get there.”

Due to the uncertainty of the future of the Speaker title, several pivotal chairmanship elections have been put on hold, such as the race for the Ways and Means Committee chair. While the chairman election for the powerful House com-

mittee was supposed to take place in December, it will take place in January once the Speaker has been decided.

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 2023 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 Editor’s note: Your GAC currently is examining new rules regarding the publication of PAC donations and identifying donors. Thus, we are unable to publish the names of our supporters at this time.

Winter 2022 AKFCF Quarterly 21

A Foundation Of

y l i m a F

22 AKFCF Quarterly Winter 2022

Join your fellow franchisees from across the country in Austin, Texas from Feb. 26 through Mar. 1, 2023.

By Kelly Rodenberg

Winter 2022 AKFCF Quarterly 23

T

he AKFCF Convention provides a home for the KFC family to encounter cutting-edge ideas, discover new opportunities, hear important brand updates, feel the power of inspiration, and network with other professionals who share a similar appetite for forward-focused experiences within our system.

As our industry changes, we continue to seek out new resources, ideas, and perspectives that reimagine the future of our businesses. We are carefully curating an all-inclusive program featuring an array of expert-led sessions and deep-dive workshops, all designed to give you forward-looking insights, perspectives, and strategies that facilitate growth and profit.

The AKFCF Convention is the must-attend event for every member of the KFC family. As the system’s most influential showcase of brand innovation and inspiration, it’s where every The AKFCF Convention is trend, solution and category are represented — connecting you the must-attend event for with the people and products every member of the KFC you need to thrive in today’s business environment. family. As the system’s Join your fellow franchisees from across the country in Ausmost influential showcase tin, Texas from Feb. 26 through of brand innovation and Mar. 1, 2023, for an amazing experience where you’ll discover

inspiration, it’s where every trend, solution and category are represented.

24 AKFCF Quarterly Winter 2022

everything it takes to stay revenue-driven and relevant — from simplification of your menu to actionable solutions for streamlining service, payments and more.

At the center of the AKFCF Convention, keynotes drive the shared dialogue that connects franchisees, vendors, corporate partners, team members and other professionals in attendance from around the globe. These presentations run each day, showcasing some of the world’s most inspired thinkers as they tackle the timeliest topics of today and tomorrow. You’ll hear from inspirational speaker Shola Richards, comedian Darrell Hammond, and executive coach Justin Patton. All three invited guests will leave you motivated and energized to take on any task! And we can’t forget our very own AKFCF President Keith Cole, who will give you his own thoughtful keynote on what the Foundation of Family means to him. All AKFCF and Vendor attendees have access to general sessions and Sunday workshops.

This year, we will provide the audience with a more intimate atmosphere and fully immerse attendees in the presentations. So be ready for a program like you’ve never seen before at Convention.

In the fall 2022 issue of AKFCF Quarterly, we covered many of the highlights taking place at Convention, but here are just a few more updates.

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AKFCF Trade Show at Austin Convention Center Don’t miss this opportunity to test innovative new equipment designed to power automation and profits, or to engage with experts on the system’s hottest products and to build new connections with key suppliers and restaurant professionals from around the world.

We are excited to feature new exhibitors and those suppliers who are most valued in the system — from food, beverage, equipment, technology, tableware, sanitation, and everything in between. Get an up-close look at the latest trends and must-have products for your KFC restaurant, all in one place. Visit these exhibitors in-person at the Trade Show on Monday evening and Tuesday afternoon.

The Welcome Reception will take place in the Trade Show on Monday evening featuring some of Austin’s best-known food trucks, live entertainment, and hosted bars around every corner.

Workshops Dive deep into today’s biggest topics with hands-on, expert-led workshops. Workshops will be held in the afternoon on Sunday, February 26.

People Workshop Happy People = Happy Guests: Our Secret Recipe for Driving Sales & Transactions When we think of driving sales and transactions, restaurant culture and the Team Member (TM) experience are not often first thoughts. However, data shows it has a huge impact on our guests’ experiences and our business results. Join the discussion around this critical unlock for our business. We’ll explore what today’s TMs need, ground ourselves in the latest data insights, and formulate an action plan for how you can maximize talent, performance, and culture to deliver a great Team Member experience.

26 AKFCF Quarterly Winter 2022

Guest Experience Workshop Driving Sales & Transactions Through the Guest Experience To remain competitive, we need to deliver an exceptional guest experience that drives repeat transactions. However, the last few years have fundamentally shifted guest expectations and priorities across the QSR industry. As we recommit to the guest experience, we can help our restaurant teams prioritize what matters most to our guests. Join us as we share the latest data-driven insights around accuracy and guest recovery, and walk away with tools and an action plan for driving this focus in your restaurants.

AKFCF Luncheon hosted by GAC Join us for the AKFCF Convention Luncheon hosted by your Government Affairs Committee! ALL groups are invited and encouraged to attend to this event — from KFC franchisees, Corporate & our invaluable vendors!

We are excited to announce the special guest entertainment will be former Saturday Night Live cast member and former “celebrity Colonel,” Darrell Hammond! As a comedian, Hammond is best known for his many celebrity and political impersonations, including Sean Connery, Bill Clinton, and Donald Trump.

There also will be an opportunity for a small group of participants to attend a private Meet & Greet with Hammond prior to the event. Eligibility to attend will be communicated soon.

You’ll also hear from GAC Chair Austin Felker and Dan Gans of Polaris Consulting. Due to the ever-changing political landscape, this will be a timely update for the system. The luncheon will be a fun event with great food and entertainment! You’re not going to want to miss this!

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From SNL to KFC: Darrell Hammond to Speak at AKFCF Luncheon hosted by GAC A Native of Florida, Darrell Hammond began doing his impressions and comedy early on in life, but his real pursuit of a career in performing began after graduating from the University of Florida at Gainesville. After college, Hammond spent several years in New York appearing in many off-Broadway productions and honing his stand up at the local comedy clubs.

With his acerbic wit and masterful impressions, Hammond quickly became a favorite on the comedy circuit. He also would frequently display his comedic styles performing on a wide array of local and national radio stations.

For years, Hammond has brought to life a cavalcade of politicians, media figures, celebrities, and newsmakers on television. He is known for being one of the most prolific comedians of his time. Until 2017, he held the title for being the longest running cast member on SNL. Hammond frequently tours comedy clubs and theaters, boasting several brilliant impressions in his act that keep people laughing nationwide.

Hammond has brought several wonderful impressions to SNL over the years. Television critics and viewers alike have commended the comedian for his accuracy and range. Amongst the great number of people in his repertoire, he has impersonated Bill Clinton, Sean Connery, Regis Philbin, Dan Rather, John Travolta, Jesse Jackson, Richard Dreyfus, Jay Leno, and Ted Koppel.

Recently, Hammond has seen a massive resurgence in national notoriety due to his uncanny impression of former President Donald Trump. From his first impression of Trump on SNL 15 years ago (earning him the praise of Trump himself), Hammond’s imitation of our 45th president has evolved along with all the changes in Trump’s public appearance. Hailed as “The Comeback Kid” by the Wall Street Journal, Hammond’s impression has become a favorite of the country, drawing some of the largest viewership in SNL history.

Be ready to laugh out loud!

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28 AKFCF Quarterly Winter 2022

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Aventri: AKFCF Event Management Platform and Mobile App If you’ve registered for the 2023 AKFCF Convention or renewed your AKFCF Regional Membership, you’ve experienced our new event management platform powered by Aventri. This event management platform and integrated mobile app provides an exclusive system filled with features to simplify registration for both staff, regional secretaries, and the attendees.

Aventri was founded by people who spent decades managing events and built the solution that they could not find elsewhere. As the company evolved over the years, they achieved their goal of providing a truly end-to-end event solution — from registration to attendee tracking to detailed reporting — completing their mission to provide meeting and event planners with what they need, when they need it.

With responsive teams, proven tools, and a transformative approach to create, shape, and execute a first-class event and attendee experience, there is no other event technology company on the market that has the commitment to help

clients connect better while also improving their business objectives.

Training for regional secretaries and staff began in August.

The trainers and customer service support staff have been outstanding. As technology continues to evolve, it’s more critical than ever to equip our staff and members with the tools and technology they need for success. Doing so makes work easier and more enjoyable, and it keeps the focus where we need it most — delivering a great pre-, on-site, and post-meeting experience for our members. If you have a question about your Convention registration, please contact Michelle Hunt, AKFCF administrative manager, at michelle.hunt@akfcf.com.

We will be launching the 2023 AKFCF Convention mobile app in February, and you can expect an interactive and userfriendly experience. It will be a new app to download in your Apple or Google Play stores, but it will continue to be branded as AKFCF and easy to find. We will let everyone know when it’s ready to download.

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Winter 2022 AKFCF Quarterly 29

The KFC Foundation puts the “FUN” in Fundraising at Convention

Photo courtesy Omni Hotels

The KFC Foundation will be hosting the second annual Colonel Sanders Classic, Ray Zimmerer Memorial Golf Scramble again in Austin. The tournament takes place at the Omni Barton Creek Resort on Sunday morning. The Fazio Canyons course recently completed a $5-million renovation and will soon be home to PGA Championship events. Scenic views line this 7,153-yard, par-72 course that boasts the signature touch of Tom Fazio, the legendary golf course architect.

Fun fact: Matthew McConaughey hosted his famous charity golf tournament at the same course in 2022! Alright, alright, alright!

The excitement will be back during our golf scramble with signature cocktails to start the day, games on the course, and incredible gifts for all the golfers. All registered golfers will have the ability to design their own pair of FootJoy shoes with KFC icons and logos! There will be a competition for best (and worst!) designed shoes. The customized FootJoys will be on display at the course as golfers arrive, which means one less item to pack!

Fazio Canyons at the Omni Barton Creek Resort & Spa

30 AKFCF Quarterly Winter 2022

During the final night of Convention, the Foundation will once again host a live auction at Stubb’s BBQ. Everyone attending Convention will have the chance to bid on fabulous items in either a silent or live auction. Donated items are already coming in, including an authentic suit worn by the Colonel!

All proceeds from this auction benefit your KFC Foundation, which provides charitable assistance programs to KFC restaurant employees, helping them earn their GED, go to college, or trade school, make it through a hardship, build a habit of saving money, give back to their community, and more.

If you’re interested in volunteering at the golf scramble, or donating an item to the silent auction, please contact the Foundation’s Executive Director Emma Horn (emma.horn@yum.com).

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Convention Schedule Sunday, February 26

7:30 a.m. – 8:30 a.m. ..........Networking Breakfast

7:00 a.m. – 1:00 p.m............... The Colonel Sanders Classic, Ray Zimmerer Golf Scramble

8:30 a.m. – 10:15 a.m.......... AKFCF General Session with Keynote Speaker, Shola Richards

Noon – 6:00 p.m..................AKFCF Registration Open

10:30 a.m. – 11:30 a.m........KFCC Presentations, Part Two

2:30 p.m. – 5:00 p.m............Workshops

Noon – 2:00 p.m..................Trade Show Lunch

Monday, February 27 7:30 a.m. – 8:30 a.m............Networking Breakfast 8:30 a.m. – 9:00 a.m............AKFCF Welcome from Keith Cole

2:30 p.m. – 5:00 p.m............Regional Meetings 6:30 p.m. – 10:30 p.m.......... Backyard BBQ Bash at Stubb’s/ KFC Foundation Fundraiser Wednesday, March 1

9:00 a.m. – 12:30 p.m..........KFCC Presentations

8:00 a.m. – 9:30 a.m............Women in Leadership Breakfast

1:00 p.m. – 3:00 p.m............ AKFCF Luncheon hosted by GAC with Guest Speaker, Darrell Hammond

8:30 a.m. – 9:30 a.m............Networking Breakfast

3:15 p.m. – 4:15 p.m............NCAC/RSCS Updates 5:00 p.m. – 8:00 p.m............ Welcome Reception in Trade show Tuesday, February 28 7:00 a.m. – 8:30 a.m............ Equality and Belonging Breakfast

32 AKFCF Quarterly Winter 2022

9:30 a.m. – 11:00 a.m.......... AKFCF General Session with Closing Speaker, Justin Patton 11:30 a.m. – 1:00 p.m..........AKFCF Legal Update 1:30 p.m. – 3:00 p.m............AKFCF Board Meeting Subject to change.

Networking Don’t miss a moment! Even outside of the business sessions we have opportunities for you to make connections. Many business deals and friendships are often made at one of our networking events, over dinner, or at the bar. Continue the conversations and start up new ones at our fun networking events happening throughout the Convention.

• Daily Breakfasts • Two Lunches • Welcome Reception • Backyard BBQ Bash at Stubb’s Bar-B-Q • KFC Foundation’s Colonel Sanders Classic, Ray Zimmerer Golf Scramble

Sunday night is a free night for all to mix and mingle as they please, so enjoy some of the great restaurants and bars Austin has to offer.

At the Convention, you’ll find first-class programming that delivers impactful learnings, exciting experiences, and inspiring speakers — all here to help you and your business succeed.

Go to the AKFCF website at www.akfcf.com and register today.

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Winter 2022 AKFCF Quarterly 33

Registration and Hotel Information To register for the Convention and its events, go to www.akfcf. com. Confirmations will be sent via email. Please see the online registration site for details.

Current Registration Rate Register by February 2nd

$349

On-Site Registration Rate

$449

Photo courtesy of JW Marriott Austin

For the first time in 15-plus years, the AKFCF has increased the Convention registration fee. Due to inflation affecting the meeting industry and still needing to provide a quality program, we agreed it was time to make a minimal increase to help sustain our costs.

Every minute of the Convention is carefully curated to optimize your time and maximize your ROI.

Hotel Information: AKFCF group room rate at both hotels is $269. Group housing links are on the AKFCF website to each hotel.

JW Marriott Austin (Host Hotel) 110 East 2nd Street Austin, Texas 78701 www.bonvoy.com

Photo courtesy of Austin Marriott Downtown

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34 AKFCF Quarterly Winter 2022

Marriott Downtown (Overflow Hotel) 304 E. Cesar Chavez Street Austin, Texas 78701 512.457.1111 www.austinmarriottdowntown.com

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Thanks To You, $500,000 In Kentucky Fried Wishes Came True

38 AKFCF Quarterly Winter 2022

By Liz Edrington, KFC Foundation Communication Manager

Winter 2022 AKFCF Quarterly 39

T

his summer, your KFC restaurant teams nominated community non-profits for Kentucky Fried Wishes. In September, 50 non-profits across 25 states were surprised with a $10,000 grant to make a community development project on their wish list come true.

“The vision of the Kentucky Fried Wishes program is to empower KFC restaurant employees to give back to the communities they serve and to build lasting relationships with organizations they are passionate about,” said Emma Horn, KFC Foundation Executive Director. “We’re proud to grant half a million dollars in wishes to 50 non-profits across the country this year.”

This year’s non-profit grant recipients span across the country and support various causes and communities, including the following:

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“The vision of the Kentucky Fried Wishes program is to empower KFC restaurant employees to give back to the communities they serve and to build lasting relationships with organizations they are passionate about.”

—Emma Horn, Executive Director, KFC Foundation

• Family & Children’s Association was nominated by KFC restaurant employees for its long-lasting impact on the youth of Long Island, New York. The Family & Children’s Association works to protect and strengthen Long Island’s most vulnerable children, families, seniors, and communities. The Kentucky Fried Wishes grant will be used to fund an outdoor healing garden, designed to improve the mental and physical well-being of the residents.

• Community Bike Works, based in Allentown, Pennsylvania, connects youth ages 9-18 with adult mentors who teach them life lessons through their Earn a Bike program. While working on their bikes, students practice life skills by working collaboratively, solving problems, learning perseverance, and experiencing the satisfaction of turning a broken bike into a functional one. Their Kentucky Fried Wishes grant will help purchase bicycle helmets and the necessary tools for bicycle mechanic training.

• Live Like Madison was created in memory of Madison Fedak of Laurinburg, North Carolina, in an effort to honor her heart for giving back. Madison was a 7-year-old who passed away in December 2019 after a battle with cancer. Her “never give up” attitude inspired the organization’s programs that promote courage and comfort for children who suffer from the

Jaime Mejia

Glenn Barnes

Winter 2022 AKFCF Quarterly 41

Non-Profit Organization

Nominator

Alpha Alternative Pregnancy Care Center

Jason Aldridge

American Supporting Armed Services Angel’s Hands Community Outreach Anson Athletic Youth Association Boys and Girls Club of Collin County Boys and Girls Clubs of Spokane County CAPS Changed Lives Ministry COC Food Pantry Community Bike Works Connecting for Children and Families Crisis Nursery of Effingham County East Bernstadt Independent School Easterseals Eastern Pennsylvania Family and Children’s Association Food Pantry Network of Licking County Future Leaders of America Gallop to Success Grammys House Artesia Domestic Violence Shelter Inc. Healing Household 6 Helping Hands - P.A.C.K. Johnson County Youth Coalition Kingdom Covenant Connections Laura’s House Lift Youth Center Live Like Madison Louisiana Chosen Sports Foundation My Friends House National Ovarian Cancer Coalition Onslow Women’s Center Our Neighbors Farm & Pantry People for Pets - Magic Valley Humane Society Project Cool Breeze Protectors of Animal Welfare of North Lee Co.

42 AKFCF Quarterly Winter 2022

Franchise Org

Restaurant ID City

State

Five Star, Limited Partnership Ray Aley Chicken Shack Potsdam Stacie Amburgey Lucky Dining Elizabeth Chapman Scottish Food Systems Ann Johnson Ampex Brands Haley Ross / Ian NRI LaRochelle Dawn Taylor KBP Foods Jennifer Hitzler STAR BRANDS II Kentucky Fried Chicken of Jeff Clark Colbert Joseph Schoemig T R and J Kentucky Fried Chicken of Meka Hamilton Woonsocket Michael Zumbahlen JRN Kathy York JRN Joseph Schoemig T R and J Victor Torres Kedis Enterprises Lesley Hottinger Jamyers Isael Mendez RBD Lydia Swanson FMI

D446008

Hopkinsville

KY

J581001 K580006 J970044 J625030

Potsdam Owosso Wadesboro McKinney

NY MI NC TX

E080082

Spokane

WA

G135724 H343006

Jackson Moncks Corner

OH SC

D040005

Moulton

AL

H495011

Whitehall

PA

J800006

Woonsocket

RI

J718074 J718032 H495011 C160025 F190007 K312031 C029046

Effingham London Whitehall Lynbrook Newark Oxnard Bennington

IL KY PA NY OH CA VT

Cambria Ponce

Stewart Restaurant Group

C750080

Artesia

NM

Tanya Wells Jessica Moreno Misty Penrod Mary Foster Jeff Baker Samantha Poore Thomas Broome Victoria Silk Dalia Doroteo Julie Bohannon Heather Morrison Monica Valenciano

NRI Stewart Restaurant Group FMI JRN Fried with Pride JRN Scottish Food Systems KBP Foods RBD KFCC NRI Stewart Restaurant Group

E080058 C750083 C029038 J718195 D742001 J718224 J970004 G135434 K312056 W750273 E080053 C750127

Jacksonville Bakersfield Clarksville Mobile Laguna Niguel Ringgold Laurinburg Monroe Los Angeles Kissimmee Jacksonville Safford

NC CA AR AL CA GA NC LA CA FL NC AZ

Anne Mehl

Stewart Restaurant Group

C750008

Twin Falls

ID

Keith Campbell Kathleen Neff

STAR BRANDS II FMI

H343001 C029052

Charleston Burlington

SC IA

Non-Profit Organization

Nominator

Franchise Org

Restaurant ID City

State

Rescued RezDawg Rescue Safe Harbor Family Crisis Center St. Lawrence Valley Renewal House for Victims of Family Violence Sunshine on a Ranney Day Sylvia’s Hope Estate SYTGE Outreach Ministry TEARS The Caring Place The Hope Buss The Neighborhood Center The O’Connor House The Robertson County Senior Center Valley Mission - First Baptist Church Wilson County Interfaith Services - Hope Station Wyoming Food for Thought

Erin Roberts Bryanny Rich Karen Decker

KBP Foods Taira’s Inc Central Iowa KFC

G135036 C183004 G160001

Moline Gallup Galesburg

IL NM IL

Candice White

White, David R.

J580062

Canton

NY

Bill Byrd Nicole Schneider Vitus Chukwu Tommy Ware Joseph Schoemig Courtnei Bussey Joseph Schoemig James McKenzie Heather Rulison Kelsey Swafford

PMTD KFCC PMTD JRN T R and J KFCC T R and J McKenzie Foods Springfield KFCO Stewart Restaurant Group

D241010 Y052049 D241019 J718302 H495011 Y300084 H495011 H740016 J575072 C750010

Gainesville Louisville Winder Columbus Whitehall Louisville Whitehall Carmel Springfield Pocatello

GA KY GA GA PA KY PA IN TN ID

Aquantia Badger

NRI

E080064

Wilson

NC

Melissa Dimas

Harman Management

E720528

Casper

WY

Jacob Eastman

disease. The Kentucky Fried Wishes grant will help fund toy chests housed at three children’s hospitals in the Laurinburg area.

You make wishes like this possible through Round Up, your participation in the KFC Foundation Annual Donation Program,

Aaron Humphrey

partaking in our Convention fundraisers, and more. Round Up allowed us to increase the number of Kentucky Fried Wishes grants from 11 last year to 50 this year! The money your teams are raising through Round Up goes to non-profits who make their communities a better place and other programs

that support and empower KFC restaurant employees across the country.

The current Round Up campaign’s POP showcases the impact the KFC Foundation makes on communities across the country.

This can be a key talking point for your teams as they ask customers to round up

Winter 2022 AKFCF Quarterly 43

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

©2022 Tyson Foods, Inc.

You make wishes like this possible through Round Up, your participation in the KFC Foundation Annual Donation Program, partaking in our Convention fundraisers, and more. Round Up allowed us to increase the number of Kentucky Fried Wishes grants from 11 last year to 50 this year! their order total for the KFC Foundation and share the difference their customer’s spare change can make. #RoundUpChangesLives 8 out of 10 people in the U.S. heard about Kentucky Fried Wishes!

The Foundation partnered with Edelman PR to promote the impact of Kentucky Fried Wishes, which resulted in 317 placements in media, including online news articles, broadcast coverage, press release placements, and Twitter placements — with a potential reach of more than 263 million people. That means 8 out of 10 people in the U.S. have likely seen or heard about the positive impact the KFC Foundation and KFC restaurant teams are making in their communities!

The KFC Foundation also worked with Edelman to secure a sponsored post on Upworthy’s Instagram feed featuring a video of LaShundra, director of non-profit COC Food Pantry, being surprised with a giant $10,000 check. Upworthy is a popular, positive storytelling online platform. Their Instagram page has 3.9 million followers. This video post received 3,953 engagements and had a potential reach of almost 300,000. people

44 AKFCF Quarterly Winter 2022

Sheree Weeks

The surprise check presentations also resulted in 19 social posts from the winning non-profit organizations, which generated 180,000 impressions! That’s an average of nearly 10,000 views per post. Each post was brimming with positive comments thanking KFC and the KFC Foundation, and congratulating the winning organization. Edelman shared that 100 percent of the online and social coverage

from Kentucky Fried Wishes was positive in sentiment, which is a rare occasion!

Congratulations to all 50 of the winning non-profits!

And huge thanks to the restaurant teams and franchisees who took the time to nominate the organizations. Your efforts paid off big time! n

*To be eligible for Kentucky Fried Wishes and any of the KFC Foundation’s charitable assistance programs, employees must work at a KFC restaurant in the U.S. that is participating in the KFC Foundation’s 2022 annual donation program.

Winter 2022 AKFCF Quarterly 45

RSCS MEMBER PROGRAMS

PICTURE YOUR SAVINGS WITH RSCS MEMBER PROGRAMS & EMPLOYEE PERKS

By Tara Morrison

H

ave you checked out our new website?

Visit us at memberprograms.rscs.com to start saving THOUSANDS on services for your restaurants.

Our goal at Restaurant Supply Chain Solutions is to provide a competitive advantage to our members. Through RSCS Member Programs, we offer discounts on products and services used to run your business, from waste services and pest control to in-store music and security systems. We are constantly adding new programs, categories, and vetted suppliers to our service offering.

Our waste and recycling program alone could save you up to $1,000 per month, but RSCS has many additional programs that can help you save money on products and services you already use today. We have negotiated discounted rates for the following: • Cleaning services with Cintas & UniFirst • Security systems with Armor Security & SimpliSafe

46 AKFCF Quarterly Winter 2022

• Office supplies with Office Depot & Staples • Oil management with Restaurant Technologies • Slip resistant shoes with Shoes for Crews, Skechers, SR Max, & Careismatic • And so much more!

Our entire list of programs can be found on the *NEW* Member Programs Directory at memberprograms.rscs.com. Using our Member Programs Directory, you can find detailed information on each of the programs we offer, the discounts available, and contact information, so you can be sure to receive the RSCS discounted rates.

You also can sign up for our email newsletter to receive Member Programs highlights of our various programs, special promos throughout the year, and up-to-date Employee Perks flyers to hang in your restaurants.

Our service offering is ever evolving, so join our mailing list by visiting the website or emailing memberprograms@rscs.com.

Employee Perks: Help employees save on nearly everything!

Make sure your employees are getting the most out of being a KFC Crew Member by utilizing Employee Perks. Our Employee Perks program offers millions of discounts on products and services from a multitude of popular retailers, but one of our most requested discounts is on rental cars. We offer discounts at Avis, Budget, National, and Enterprise, helping you save up to 50 percent on rental cars for your business and leisure trips.

There also are deals on movie tickets, oil changes, hotel rooms, theme parks, electronics, mortgage services, and so much more!

Register today by visiting kfc.hrdiscounts. com/GO, where you will be prompted to download our third-party Abenity app, offering millions of discounts.

Visit memberprograms.rscs.com > Employee Perks to download our latest flyers for your restaurants.

Member Program Spotlight: Restaurant Technologies named Vendor of the Year As long-term partners of Restaurant Technologies (RTI) and its Total Oil Management solution, we are proud to hear of this honor as Vendor of the Year, given to RTI at the KFC Northwest Franchisee Association conference held in Waikoloa Village, Hawaii this past fall. “We are honored to be recognized as the Vendor of the Year by such a valued partner,” said Curt Morford, National Account Executive for RTI. “We look forward to supporting KFC and Yum! Brands as they set new standards and reach new heights in the quick service restaurant industry.”

Restaurant Technologies has been a part of RSCS Member Programs since 2008, but as of Q2 2022, the program has never been

more lucrative. Our new contract terms and 200-percent increase in used cooking oil credits (since 2019) make this program a necessity for your restaurants.

The new KFC National Pricing Program features a 37-percent lower weekly program fee, shorter renewal term of 1-year, and potential reductions in insurance premiums ($1,100/yr/store on average). These new terms, along with an aggressive used cooking oil rebate, offset the rising cost of soybean oil, saving you upwards of $1,856 annually per restaurant.

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. In

addition, after your initial term with RTI, you can expect a shorter 1-year renewal, as opposed to the original 5-year renewal term.

The dedicated KFC team at Restaurant Technologies will ensure that your team is fully trained when the Total Oil Management system is installed and they offer ongoing support and additional training when needed.

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 to serve.

You can find more information on how to get started with Restaurant Technologies at memberprograms.rscs.com. If you are an existing customer with RTI and have not yet signed the new agreement, please contact Carlos Benavides at cbenavides@ rti-inc.com to receive this new national pricing. n

“We are honored to be recognized as the Vendor of the Year by such a valued partner,” said Curt Morford, National Account Executive for RTI.

$1,856 Estimated annual savings per store 1

STORE

$ -2002

Weekly Service Fees

10

STORES

$ -20,020

New lower weekly fees and shorter renewal terms!

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

Fresh Oil Savings Yr. * Used Cooking Oil Credit **

Total estimated savings per year

$ 2,415 $ 1,443

$ 24,150 $ 14,430

$ 1,856

$ 18,560

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

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

Winter 2022 AKFCF Quarterly 47

KFC FOUNDATION

KFC FOUNDATION ANNOUNCES TUITION-FREE ONLINE COLLEGE FOR EVERY KFC RESTAURANT EMPLOYEE!

By Emma Horn, Executive Director, KFC Foundation

I Workers are looking for employers who offer opportunities like free college — opportunities that show there is value in working for a company beyond the paycheck.

48 AKFCF Quarterly Winter 2022

f you attended any of the fall regional meetings, you’ve already heard a little bit about the KFC Foundation’s exciting plans for 2023.

Through the incredible work of your restaurant teams and their success in our Round Up campaigns, the KFC Foundation will be making tuition-free online college available to every KFC restaurant employee in 2023*. Yes, you read that correctly!

This educational opportunity will be made available through a partnership with Western Governor’s University (WGU). WGU is an online school with career-aligned bachelor’s and master’s degrees in IT, teaching, business, and healthcare. The programs are designed to help working professionals fit an online university education into their busy lives.

We know we found the right partner for your restaurant employees in WGU. All courses are competency-based, meaning that a student progresses through courses as soon as they prove they’ve mastered the material. No more advancing only when the semester ends! If an employee can learn faster, spend more time on schoolwork, or lean on the knowledge they’ve gained in the workplace, they can accelerate through their courses.

Tuition-free online college also will be available year-round. Employees can apply and get started at any time of year! The application is non-com-

petitive and will be open starting Feb. 1, 2023.

Look around your restaurants and start thinking about who you think should enroll starting next February.

• Did someone start college and step away?

WGU offers credit transfers!

• Has someone earned their GED with the Foundation? They’re ready for online college!

Why Tuition-Free Online College?

You’ve read the headlines. You’ve seen the signs outside of your competitors. KFC now gets to step into that space and offer a pathway for employees to earn a tuition-free college degree.

Workers are looking for employers who offer opportunities like free college — opportunities that show there is value in working for a company beyond the paycheck. Opportunities that show their employer cares about them and provides resources to help them grow, develop and be their best self.

And don’t worry, we’re working now to shout this announcement from the mountain top in 2023. The Foundation is partnering with Edelman and KFCC to make sure every employee (and potential employee!) knows about this opportunity. We’ll have new POP arriving in 2023 as well as more communication to your restaurant teams about how to sign up.

But wait, there’s more!

Not only are we announcing this exciting new opportunity, but we’re also expanding our already existing scholarship program. In February 2023, there will be three levels of scholarships available to every KFC restaurant employee: • $20,000: We’ll award 11, big $20,000 scholarships to students attending a four-year college.

– Students will have to explain how the larger scholarship helps them reach their educational dreams.

• $5,000: Hundreds of scholarships will be granted to students attending a four-year college.

• $2,500: Hundreds of scholarships will be granted to students attending a two-year or trade school.

– YES! Your employees can get a scholarship to attend an accredited trade school!

We’ve heard your requests to support team members wherever they are on their educational journey — you have employees dreaming of their stretch school and others working on a trade certificate. We believe this new structure will help us reach the different needs of employees to attend their program of choice. The scholarship application will be available from Feb. 1-28, 2023.

No other QSR offers the breadth of programs to take care of restaurant employees like your KFC Foundation. And adding tuition-free college and new scholarships isn’t the last exciting update we’ll make in 2023. We are always adapting to meet the needs of KFC restaurant employees and empower them to become their best selves.

We couldn’t do all of this without your ongoing support, so from all of us at the KFC Foundation — thank you. See in you Austin! n *To be eligible for tuition-free online college and any of the KFC Foundation’s charitable assistance programs, employees must work at a KFC restaurant in the U.S. that is participating in the KFC Foundation’s 2023 annual donation program.

Tuition-free online college for every KFC restaurant employee*

STARTING FEBRUARY 2023

kfcfoundation.org/freecollege *Franchisee must participate in the KFC Foundation’s Annual Donation Program for employees to be eligible ©2022 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 2022 AKFCF Quarterly 49

REGIONAL SHORT

GREATER MIDWEST UPDATE

By Kevin Schlutz

W

For many, it was their first opportunity to hear new KFC President Tarun Lal speak, and he took the opportunity to give his background, being the first RGM for the first KFC in India, and all the other positions he held since ...

50 AKFCF Quarterly Winter 2022

hat did the #1 beach in the United States and KFC have in common the second week in October? The 2022 Super Regional fall meeting!

About 150 franchise attendees and 100 vendor partners gathered at the TradeWinds resort on St. Pete Beach in Florida for their fall regional meeting encompassing the Northeast, Southwest, and Greater Midwest regions.

Each region had their own board and membership meetings for items inherent to their region, including elections and resolutions and updates on their continuing activities.

Then all three regions combined for numerous committee reports, time with our vendor partners, presentations from new KFC President Tarun Lal and his leadership team, AKFCF President Keith Cole, AKFCF/NCAC General Counsel Ron Gardner, a great workshop by Northeast Region VP Carl Coulter, the KFC Foundation, our beverage partners, Parapet Studios, and a special presentation about the Mobile Manager improvements to expect. We also had our Vendor Appreciation Dinner, with entertainment from Blazin’ Pianos.

During the scrumptious dinner, Vendor of the Year Awards and AKFCF Shining Stars were presented: • President Mike Houston presented the Northeast Region Vendor of the Year Award to Bradford-Sutcliff Insurance, Barry and Aaron Sutcliff, for their longterm partnership with their region.

• President Ryan Androes presented the Southwest Regional Vendor of the Year Award to Don Schaper of Winston Industries.

• President Nanette Walker announced the Greater Midwest Region Vendor of the Year Award was going to On Display, who makes all our merchandising materials. Neither Don nor Jason Miller was able to attend to accept the award so it will be presented at a later date.

AKFCF President Keith Cole presented newly redesigned Shining Star Awards to: • Andie Cramer from the Southwest Region • Carl Coulter and Mike Houston from the Northeast Region • Noah Hommerding and Kevin Schlutz from the Greater Midwest region These newly redesigned awards represent the sincere gratitude of the KFC Family for these members who have made significant contributions to their region or the AKFCF. All the recipients are officers in their respective regions.

For many, it was their first opportunity to hear new KFC President Tarun Lal speak, and he took the opportunity to give his background, being the first RGM for the first KFC in India, and all the other positions he held since, which gave him the experience for this position. He talked about: • Family • Integrity and Excellence • Action — not just intent — gets thing done • Honest transparent relationships • Teamwork — support each other He asked for patience as he learns more as this is the most competitive market in the

February in Austin, Texas. The Foundation also will be a big part of the Convention final night festivities at Stubbs Barbecue.

AKFCF President Keith Cole did an outstanding job talking about alignment of purpose with our members and KFCC. He discussed all the changes in KFC leadership, not just at KFCC, but also the many franchise leaders we have lost through consolidation. But new leaders continue to step up and he is confident that they will be successful. Keith also talked about many different initiatives that the AKFCF is undertaking, as well as who the current officers are, and initiatives of the active committees.

Keith talked about the “Foundation of Family,” the upcoming Convention theme, and all the preparations for another exciting Convention.

We were very fortunate to have our longtime AKFCF Lobbyist Dan Gans in person at the meeting to give an update on the activities of the GAC, the importance of PAC contributions, what had been accomplished in this session for businesses and his thoughts on the midterm elections. He also talked about what the priorities would be for Congress after the midterms. Some are hopeful, some are scary, but it all made us realize how important our votes and PAC contributions are at this critical time.

Southwest President Ryan Androes ended the meeting reminding the attendees of all that we had learned and experienced during the week, on top of their time on the beautiful beach. n

AKFCF President Keith Cole did an outstanding job talking about alignment of purpose with our members and KFCC. He discussed all the changes in KFC leadership, not just at KFCC, but also the many franchise leaders we have lost through consolidation.

Photo courtesy Trade Winds Resort

world. He stressed the importance of working together. This was all music to our ears.

Also, during the KFC presentations, the Kirmani family was recognized by President Tarun Lal for their development efforts, opening four new restaurants in the New York area.

James Butler gave an RSCS update. The supply picture is improved but suppliers are having the same labor problems we are and trying to produce more with less labor out of necessity. The RSCS is holding more inventory on hand to prevent outages.

They need increased lead time to be able to source products.

The workshop presented by Carl Coulter dealt with how to work with what is now four different generations working in our restaurants, and what motivates them. He also offered tips for how to communicate with each different generation, which isn’t that easy anymore, and how his background growing up in Philly helped him in developing these methods that are working for the Summerwood organization there.

There were many great best practices shared, especially about communicating with and motivating the younger generations.

Debbie Rollins and Liz Edrington of the KFC Foundation gave a preview of improvements to the Reach Grant program that will be happening next year thanks to the continued success of the Round-up program, which will be active again in November and December. They recognized departing Foundation Board Member Jeff Griffin, who is retiring, and other board members in attendance. Current Foundation Board Chair Justin Stewart talked about the 2nd Annual Colonel Sanders Classic Ray Zimmerer Memorial Golf fundraiser that is run by the Foundation and will be the first day of Convention next

Trade Winds Resort

Winter 2022 AKFCF Quarterly 51

EXECUTIVE DIRECTOR UPDATE

WRAPPING UP 2022 WITH VALUED PARTNERS

By Kelly Rodenberg

T

he focus of 2022 was all about getting back to normalcy and maintaining the balanced and collaborative culture that we have worked so hard to develop.

One of my favorite Beatles songs is “With a Little Help from My Friends,” particularly because I realize that none of the work AKFCF does as an organization is done alone. We rely upon the generous support of partners that run the gamut.

With such a wide level of support, the AKFCF is allowed to spread its wings to deliver on those services that have the capacity to transform franchisees and the restaurants in which they work.

With such a wide level of support, the AKFCF is allowed to spread its wings to deliver on those services that have the capacity to transform franchisees and the restaurants in which they work.

Support from KFCC, NCAC, RSCS, vendors, and our Regions allows us to take a collective-action approach to solving some of the pressing and

52 AKFCF Quarterly Winter 2022

most rooted brand issues of our time such as labor shortages and supply chain distribution.

2022 also brought us some abrupt leadership changes at KFCC. AKFCF President Keith Cole and the members of the Executive Committee are working hard to make sure we remain committed to the strong partnership we have built over the years. We are all very excited to work with new KFCC President, Tarun Lal, to see what fresh initiatives he and his team will bring to the table.

The 2022 Convention was a grand success, and the vibe among the attendees in Orlando was like nothing I’ve felt before. The energy was high, people were excited, and there was an enormous sense of belonging and pride.

The 2022 fall regional meetings were well attended and Keith Cole brought back the power of recognition with the Shining Stars. It will be exciting to see what 2023 looks like with five of the regions coming together and sharing resources for one, large Super Regional. The collaboration is strong and I’m sure it will be amazing.

The Franchise Business Academy was a new endeavor that AKFCF and KFCC launched in 2021 and continued in 2022 with several virtual workshops on the brand’s hot topics and issues.

This has also been a whirlwind year for our Government Affairs Committee. Austin Felker, our GAC Chair, has done a fantastic job of keeping the board and franchisees apprised of the political issues facing small business owners.

While in the grand scheme of things it may not be a big deal to many, I am always appreciative of the many people who planted seeds of knowledge into me to navigate my way through this year’s obstacle course. The names are far too many to list, but know I continuously thank the universe for your investment in my development. That investment informs and shapes the thought process I take when I approach the collective work of AKFCF. Thank you all for another great year. I look forward to seeing what 2023 brings our way. n

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

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

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

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

Thus We Builded

®

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

Reprinted by permission of Colonel Sanders, November 1964.

Copyrighted by Harland Sanders, 1973.

LEGAL UPDATE

A NEW BEGINNING & A BITTERSWEET FAREWELL

By Ron Gardner

O

ne of the many unique things about the 76(5P) Agreement that the KFC franchisees enjoy is the ability to have input on the amount of money they pay toward national advertising. This is an extraordinarily unusual provision in the realm of franchising, and one that I have never believed the franchisees should take lightly. While most franchise agreements require franchisees to spend some amount of money nationally, and some amount of money locally, they have no input on whether to shift those dollars back and forth. Additionally, there is not always a “hard cap” on how much the franchisor can charge for advertising — instead, allowing the franchisor to periodically increase the amount to go advertising at will.

Another extraordinarily unique aspect of the KFC System is the input the franchisees have in making decisions on how that advertising money will be spent.

Indeed, that is a significant portion of the reason for the existence of the NCAC, which was a combination of the former National Franchise Council (which was charged with advocating for franchisee rights) and the National Advertising Fund — the consultation job now held by the NCAC. It is my belief that this structure benefits everyone, as the franchisees are invested in both making sure the dollars are working effec-

I am pleased that a new, fouryear period of significant national advertising spending has been authorized by an overwhelming majority of franchisees.

54 AKFCF Quarterly Winter 2022

tively, but also investing in the marketing to build the brand as they understand and see directly how those dollars are driving their results.

It is with that background that you all have had the opportunity, in the last 90 days, to vote on whether to continue to commit the bulk of your required advertising dollars to targeting national advertising.

I am pleased that a new, four-year period of significant national advertising spending has been authorized by an overwhelming majority of franchisees.

The vote also gives us all an opportunity to address issues that are in existence at the time of the vote that might not otherwise get attention or have the relevance that they have at the time of the vote. This is where your franchisee leadership has worked with KFCC to bring additional benefits to you in exchange for your vote.

This year, those benefits focused on preserving cash in your business during this very difficult economic time.

First and foremost, and to put cash directly into your pocket, KFCC and the NCAC agreed that during calendar year 2023 you will receive a two-month “ad contribution holiday.” The details of all of this are still being worked out, but in sum, at some point during 2023, for at least two months (it has yet to be decided if those months will be consecutive), you will not have to pay NCAC fees. Because you would have paid this money off the topline, and there is no additional expenditure necessary to generate the money, this is money that will drop straight to your bottom line during the applicable ad fund holiday months. We will get you more details on the specifics of how this will work, and what months will be forgiven, when final-

ized. However, we estimate that the value to the average restaurant will be somewhere in the range of $5,000 per month (obviously, determined by volume as your ad fee payment is a percentage of sales).

In addition to the ad fund contribution holiday, and also with an eye toward preserving cash in the near term, KFCC has agreed to a remodel deferral for the vast majority of restaurants in the system. In short, stores that were set to be remodeled in 2022 and 2023 are now due in 2024 and every other store in the system that is eligible will receive an additional one year of asset usage before remodel is required (e.g., if your due date is in 2024 or thereafter, you can add a year to the time before a remodel is required). There are a few exceptions, and once the details are all worked out, KFCC will be providing you with a letter advising you of your new asset due date, and inviting you to purchase an additional year of franchise time to “sync up” the expiration of your franchise with your obligation to remodel.

Finally, and not insignificant, KFCC has agreed to work with your franchisee leadership in developing any and all coming technology requirements as we move to upgrade your restaurants as swiftly as economically possible.

As part of the ad vote deal, we had originally hoped to include a technology acceleration piece that would have encouraged franchisees to expedite the institution of new technologies, including the new POS and KDS systems that have been developed, the Edge Computing system that will run all of the technological pieces of your restaurant, and, in terms of bringing your restaurant into the 21st Century as far as customers are concerned, implementing kiosks and giving you the opportunity (although not a requirement) to upgrade to digital menu boards. While we were not able to get that done in time for the ad vote, we continue to work on that deal, and I expect it should be done in the next 60 days or so — giving you an opportunity to hear all about it at the Convention! (On that front, if you have not registered for the Convention yet, please do so ASAP — it is going to be an important one.)

The reason all this is important is because KFCC does not actually have an obli-

gation to discuss its technological requirements with the franchisees. The franchise agreement allows them to impose technological requirements, and you have agreed to implement them. However, because of our strong partnership with your franchisor and our culture of collaboration (which I will talk more about in just a moment), they have now, not surprisingly, put in writing that they will continue to work with us and consult with us as they consider when and what types of technology to put into your restaurants. That is a win for all of us!

A Bittersweet Farewell Before I sign-off this month, I want to send a special thank you and good luck to my good friend Melanie Bootes. As several of you know, Melanie has been the Chief Legal Officer for KFCC since 2015, and in that role has been an important partner in our building of a culture of collaboration.

My first interactions with Melanie were not pleasant. We were working out the details of the Acceleration Agreement, and to put it mildly, Melanie and I both had passionate views (that did not align) on certain provisions of that Agreement. We may have let those passions get the best of us occasionally. J However, over time, Melanie became an extremely strong partner as we worked to move the System forward and away from the days of constant conflict. She consistently worked to understand the challenges the franchisees were facing, and to accommodate the solutions we were proposing when possible. She is an extraordinary business leader, and if she ever decides to do anything further, will make some franchisor a great Brand President.

Personally, I am going to miss her wit, sarcasm, and deep, deep friendship that was created as we worked together to improve the KFC brand for all interested stakeholders. Good luck, my friend. n This column is for the general information of members of the AKFCF and should not be relied upon as legal advice. Please see your own attorney or professional advisor for questions concerning your franchise agreement. Ronald K. Gardner is General Counsel of both the AKFCF and the NCAC.

Ad index 13

Auspex Capital

45

Bama Companies

40

Café Valley Bakery

15

Capitol Light

44

Case Farms

C3

Dr. Pepper Snapple Group

1

Ecolab Kay Chemical Company

29

FranBizNetwork

11

Genpak

31

Gycor International

49

KFC Foundation

41

Koch Foods

28

Lennox Commercial

C2

Magnesol

32

NDA, Inc.

7

Pacific Premier Franchise Corporation

35

Partstown

3

PepsiCo

21

Pilgrim’s

17

Procter & Gamble Distributing

8, 9, 37, Restaurant Supply Chain 47 Solutions 5

Restaurant Technologies

33

Rubicon Technologies, LLC

27

SYR Clean

44

Tyson Food, Inc.

25

Welbilt

C4

Winston Industries

Winter 2022 AKFCF Quarterly 55

Photo Courtesy of Scott King

LOOKING BACK

56 AKFCF Quarterly Winter 2022

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