Flame 2022, Issue 1

The Neubauers celebrate half a century with BURGER KING

Family Matters: Family Matters: The Neubauers celebrate half a century with BURGER KING

Make the Most of Resources, Culture to Build and Keep Good Teams

Inflation Putting the Squeeze on Businesses

NFA Editorial Board

Matt Herridge

Executive Editor

mherridge@charton.biz

304-865-2222

Sean Ireland

Editor-in-Chief seani@nfabk.org

Rachel Jackson Managing Editor rachelj@nfabk.org

Savannah Daly Associate Editor savannahd@nfabk.org

Advertising Sales

Jeff Reynolds Director of Business

Partner Relations jeffr@nfabk.org

678-797-5163

NFA Officers

Dan Fitzpatrick Chair

Jim Froio

Vice Chair

Matt Herridge Secretary

Steve Keith Treasurer

Anthony Josephson

Second Vice President

Russ Lo Bello

Second Vice President

Andrew Schory

Second Vice President

Christy Williams

CEO

NFA Board of Directors

CANADIAN FRANCHISEE ASSOCIATION

Mike Kitchingman

FLORIDA/CARIBBEAN

Glenn Levins

GREAT MIDWEST

Matt Carpenter

Henry Delouvrier

Mark Peterson

GREAT WESTERN

Nasser Aliabadi

Gary Geiger

INTERNATIONAL HISPANIC FRANCHISEE ASSOCIATION

Guillermo Perales

LARGE FRANCHISEE GROUP

Patrick Sidhu

METRO NEW YORK

Amir Syed

MID-ATLANTIC

Gary Andrzejewski

MID SOUTH

Kevin Newell

Mike Callahan

Kevin Fernandez

Larry Stokes II

Camille Lee-Johnson

MOUNTAIN

Amir Allison

Brek Kohler

Shirley Humerian SOUTHWEST

Michael Laird OHIO RIVER

C.J. Timoney

2022 Issue 1

ON THE COVER

As patriarch John Neubauer celebrates his 55th anniversary as a BURGER KING®

the third generation of his family has begun its own journey with the brand. Read more about this remarkable family

how they are continuing a long legacy on page 22.

Teams by Sean Ireland, NFA director of communications

31 BK & Hershey Desserts: Delivering on a Sweet Opportunity contributed by The Hershey Co.

32 Inflation Putting the Squeeze on Businesses by Sean Ireland

34 RSI’s CFO Roundtable: Building Long-Term Value Through Knowledge Sharing and Partnership contributed by RSI

36 BURGER KING Family Fund: 2021 Year in Review contributed by BURGER KINGSM Foundation

38 Could Your Business Benefit from a Cost Segregation Study? by Stacy Smith, Mize CPAs Inc.

40 Teen Workers May Be One Solution to the Great Resignation by Douglas H. Duerr, Elarbee Thompson Sapp and Wilson LLP

42 The Front Line Equals the Bottom Line by Dennis Snow, Snow & Associates Inc.

44 The Real Value of Reverence in Relationship by Dan Coughlin, The Coughlin Co.

46 The Benefits of Coaching: Six Ways It Can Boost Productivity by Laura Stack, The Productivity Pro®

World Situation Deepens the Challenges Franchisees Face

It is likely not lost on any of us that trying times are here. As BURGER KING® franchisees, we have and continue to face extraordinary challenges in every aspect and dimension of our businesses. Over the last month, the challenges have grown to include those in a far-away place in eastern Europe.

Although it is far too early for us to know the magnitude of the implications of the present world disorder, there is and will be human suffering, economic upheaval and, moreover, an immoral attack on the concept of freedom. These are issues that transcend our capacity as business owners and entrepreneurs, yet challenges such as these always require the best from each of us day in and day out.

One thing that has become of increasing concern is that our country’s energy policies are insufficient.

I have long maintained that a business such as ours is on the leading edge of the economic cycle, and we feel its changes immediately. This has never been truer. With oil prices at record levels, we will once again experience a massive inflationary cycle that unfortunately will likely be here for some time to come.

Oil, as but one element, deeply affects the cost of virtually every single item in our food and supply chain. Our food growers, the farmers of America, will be significantly impacted as they raise the proteins, grains and dairy central to the menu items we ultimately serve our guests. The cost of raising, harvesting, manufacturing, transporting and delivering food and supplies will be substantially affected. There is no doubt that food costs will creep to historically high levels rarely seen and experienced in the recent history of our brand.

Utility costs will be the next battleground of concern. Much like oil, coal- and natural gas-powered utilities will also feel inflationary pressures, which always get passed on to us.

There are two other important

constituencies who will also be touched by the pain of inflation. First, of course, are our suppliers. As their costs rise, whether energy-related or not, they will get passed down to our restaurants.

Also, the impact will be felt by our guests, who will be forced to manage their household budgets in a way they have not experienced for some time. In addition to the cost increases they will experience in their wallets, they are now living it firsthand at the gas pump, which is immediately felt in their disposable income. We all recognize that the American public needs to drive their vehicles to work and to transport children, but a trip to our restaurants is far from a necessity. True value for our guests, also known as, “Are we worth it to the guest?” will take on increasing importance.

Providing our guests with the best of the best in our food, service and facilities will become even more important.

As always, when the challenges are significant, the need for leadership increases. Each of us needs to be out front leading our teams to provide not only the direction in the decision-making process but also the inspirational leadership necessary during challenging times like these.

Your National Franchisee Association (NFA) is working diligently where it can at Elevanta, in our various committees, and importantly, politically with our upcoming NFA Day On The Hill. I strongly encourage you to have your voice heard on the Hill later this month.

2022 is an election year and arguably the stakes have never been higher. The experiment of one-party control has failed. What is at stake is a change in the Congress, which will hopefully diminish and mitigate policies that are anathema to small businesses and widespread economic prosperity. It is undoubtedly clear that we cannot prevail in the upcoming election without your voice on the Hill and locally

by DAN FITZPATRICK

with your congressional leaders as well. There certainly is no substitute for your voice with your representatives and senators – make them hear you!

Our PAC needs your financial support as well. Even in these more difficult times, $100 per restaurant is our stated goal. If successful, the BURGER KING® Franchisee PAC would become one of the most identifiable on Capitol Hill and surely will achieve notice.

In summary, you should know that our NFA leadership is working closely with the leadership of Burger King Corp. and RSI on the challenges we face. I know that many of you are intensely focused on your own businesses. I hope for all our sakes that the issues that confront our country and our world will be addressed by political leadership to preserve peace, our way of life and our very country. I know that you join with me in sending our thoughts and prayers to everyone who is in harm’s way. n

Elevanta Health Focused on Helping Your Business Navigate Unexpected Challenges

Two years after life in the U.S. and around the world was disrupted by the coronavirus pandemic, we can still be surprised by the rippling effects it created.

At the start of the pandemic, as businesses and other institutions scaled back or closed operations, few people foresaw how the labor market and supply chains would be so drastically affected. Now, it’s clear that the ongoing threat of COVID-19 made an already acute shortage of labor even worse, and that the supply chains ensuring the flow of materials and products throughout the world were not designed to withstand the strain of a dangerous virus with global spread. Untangling the kinks is not easy and takes time and effort.

The basic law of supply and demand dictates that when products and services are plentiful, their price is low. As they become scarcer, their prices increase, and we are seeing that with consumer inflation levels rising higher and faster than at any point in the last 40 years. Employers are finding it necessary to boost salaries to attract workers, and they are finding the prices they pay for the supplies they need to operate getting higher. As a result, it’s no shock that prices for the goods and services they produce are rising as well.

The pandemic’s economic ripples have now reached the health care industry, which is suffering an acute labor shortage, particularly among nurses. The exodus of people from the profession due to stress and burnout has created a crisis. As health care companies struggle to staff their facilities, they are increasingly relying on travel nurses, who work in short-term roles at hospitals and clinics around the world, to fill the gaps. Travel nursing grew 35% in 2020 and is expected to grow 40% more in the future, according to The Washington Post. Typically, travel nurses are employed by independent staffing agencies contracted by health care companies, and they can earn between $5,000 and $10,000 per week, far more than the average staff nurse salary of $73,300 per year, or $1,400 per week.

This combination of an increase in salaries and higher costs for medical equipment and supplies means that the health care industry is not immune to the inflationary pressures affecting the economy nationwide. Because of the unique features of the health care industry – in which services, prices, reimbursement rates, labor contracts and other input factors are set in contracts years in advance – higher rates are just now being felt by health insurance companies and their customers.

In addition to increased health care costs, it is estimated that four of 10 Americans delayed medical care during the COVID-19 pandemic. Preventive cancer screenings dropped 86% for colon cancer and 94% for breast and cervical cancer following the pandemic. This delay in medical care has led to a generally unhealthier population with conditions that are more serious and costly than they would have been had they been treated in a timelier fashion.

Those of you who rely on Elevanta Health to provide your employees with health insurance options have seen that we are not immune to these economic waves. This year, our average annual health insurance renewal rate increase was 9%, a figure much higher than what we have typically experienced. For instance, in 2021 Elevanta Health had an overall average increase of 1%. In fact, 68% of our members had no increase to their rates last year, giving them a two-year average of just 4.5% per year.

As our economy and the health care industry struggle with the inflationary challenges caused by the pandemic along with increased costs due to the deferral of care, this year’s increase is an unfortunate side effect. However, the Elevanta Health program remains financially stable and will withstand these headwinds. Elevanta Health continues to offer a large menu of high-quality medical plans – all using the national Blue Cross Blue Shield network of providers – that can meet the unique needs of most businesses, and we also continue

by CHRISTY WILLIAMS

to provide the back-office support that removes the burden of program administration from franchisees suffering their own labor shortages.

Navigating the turbulent waves of the pandemic hasn’t been easy, but we’ve done so with the financial condition of our members as our No. 1 priority. In May of 2020, at the height of pandemic shutdowns, we demonstrated our commitment to Elevanta Health clients as we offered $2 million in participation refunds and premium deferrals. We have also developed many programs, such as Teladoc, Livongo Diabetes Management and PaydHealth, that can decrease costs while providing high-quality services to your employees. The more that your employees use these services, the more everyone’s total costs, including premiums, are reduced over time.

If we’ve learned anything over the last two years, it’s that there will always be unexpected challenges requiring us to adapt and grow to overcome them. Rest assured that Elevanta Health will always be your partner in this journey, focused on keeping your business on track and moving forward. n

Las Vegas BURGER KING Celebrates Perfect Score

In January, BURGER KING® No. 14498, owned by Glencoe Management, celebrated earning a perfect score of 100% on its Restaurant Evaluation (REV). The restaurant, located at 10880 W. Charleston Blvd. in Las Vegas, is managed by Kenneth Quinajon, who has worked for Glencoe Management for 13 years.

Through mid-February, this perfect score was the only one earned in the Western Division. Congratulations to Kenneth and his team! n

At the celebration for the perfect REV score earned by the restaurant, franchisees Tom McDonald and Steve Keith, Director of Operations East Phil Carpenter, Director of Operations West John Stumbo and District Manager Adora Escalambre joined General Manager Kenneth Quinajon and the BURGER KING No. 14498 team.

QDI Marks Major Milestone With Florida BURGER KINGs

What does brand commitment mean to you? Is it a clean restaurant? Crisp uniforms? Believing in the product you sell? Fast and accurate service? Superior landscaping? Any successful franchisee will likely tell you brand commitment, in the BURGER KING® world, is all those things and a lot more.

Quality Dining Inc. (QDI) has embodied its commitment to the brand as the company completed its 100th remodel or new store build project in Florida with the opening of BURGER KING No. 29690 in Lake City.

In late 2012, Quality Dining acquired 55 BK® restaurants in the greater Tampa/St. Petersburg market from Burger King Corp. This market was ripe for a major turnaround in performance. Leveraging the strength of its legacy BURGER KING restaurant portfolio as well as the significant resources of its headquarters team, QDI charted a course to dramatically improve the acquired restaurants with operational and image improvements and the significant building of new units.

Along the way, QDI purchased other franchisees’ units in Gainesville, Cocoa Beach and in the southeast market near Fort Myers and Naples, Florida. QDI now

operates 111 BK restaurants in Florida.

“It’s likely obvious, but we made a substantial bet on our Florida business and the brand. The rationale and formula were relatively straightforward – remodel the existing units at a high level, install double drive-thru and change the culture to entirely be guest-centric,” said Dan Fitzpatrick, chairman and CEO of QDI. “The bet has certainly paid off. Our AUVs are more than 25% above national average, and in every one of the 100 projects we have completed, our image is not only competitive, but equal to or better than all the other players in the respective trade area.”

It is obvious that it takes a sizeable team and resources to deliver on QDI’s commitment.

“Although it is my job to lead our team of great operators, I am benefitted by having abundant resources throughout our organization. Our development and construction team are first-rate professionals. Our internal support groups in marketing, information technology, human resources, accounting and finance are all plugged into what I call our Florida machine,” said CJ Fitzpatrick, senior vice president and director of operations.

QDI isn’t finished yet, as it has

approximately 18 projects scheduled for completion over the next 18 to 24 months.

“Internally we often say, ‘The best is yet to come,’” CJ Fitzpatrick said. “A few years ago, we elected to exclusively scrape and rebuild all restaurants going forward as the returns have been so substantial. We expect minimum sales upticks of 30% while our recent results have delivered a 50% positive sales impact.”

“One thing is clear; the underlying strength of the BURGER KING brand is real,” added Jen Tyler, vice president of development and construction at QDI. “Our guests appreciate great facilities which, along with our in-store teams, deliver a great experience for our guests.”

One hundred major remodels and new restaurants in less than 10 years is a noteworthy achievement anywhere within the BK system. “What our team has done has been gratifying and a source of pride for everyone at QDI,” said Dan Fitzpatrick. “Personally, I could not be more proud of what my team has done and what they do every single day.”

By the way, project No. 101 is BURGER KING No. 7519 in Naples, Florida – a freshly scraped and rebuilt restaurant that opened in mid-February.

S&M Celebrates Retirement of Longtime Team Members

S&M Restaurants of Grover Beach, California, recently celebrated the retirement of two longtime employees.

Rick Blankenburg retired after 24 years with the company, working the broiler and doing light maintenance like dishes, floors and trash. He was also the guest ambassador

on weekends. Blankenburg also recently retired from competition in the Special Olympics as a gymnast.

Alfred “Al” Possen retired after 35 years. Possen joined the company as part of a special group training program for developmentally challenged adults. He

as

eventually began to work on his own, manning the broiler and then performing much of the morning maintenance at the restaurant. n

Franchisee Mike Humerian congratulated Al Possen on retiring after 24 years with S&M Restaurants.

Franchisee Mike Humerian congratulated Rick Blankenburg on retiring after 35 years with S&M Restaurants.

Shirley Humerian, franchisee, from left; Al Possen, retiring crew member; Mike Humerian, franchisee; Rick Blankenburg, retiring crew member; Maria Plazola, day shift opener; Jillian Dawson Hawkins, restaurant general manager and Marisol Arevalo, weekend opener, shared in the festivities

Possen and Blankenburg retired.

Geiger Management Store Hosts Visits With Santa Claus

AGeiger Management BURGER KING® location in Porterville, California, made the holidays a little brighter for its community by welcoming children to visit with Santa Claus. Store No. 13959 partnered with a local chapter of Toys for Tots to provide an exciting Christmas experience for children and adults alike.

“Our general manager from that restaurant, Matt Price, approached me in the middle of last year, asking if he could dress up as Santa Claus for the holidays and hold a day for photos with Santa at his store,” said Jennifer Reynolds of Geiger Management. “I quickly got the approval, and we started putting the pieces together.

“We connected with the Porterville Toys for Tots and held a toy drive leading up to the Santa photo day,” she added. “The day of Santa’s visit, we had a line of local kiddos waiting for Santa to arrive, and throughout the three-hour event, we had a steady stream of attendees.”

Glencoe Management Sponsors Las Vegas Bowl and After-School All-Stars Attendance

Members of the restaurant crew acted as elves to assist with the photos, including providing translations for Spanish-speaking guests.

Reynolds said guests thanked the restaurant team profusely for organizing the event. One guest sent a gracious thank-you note on behalf of her family. “I want to thank you for your kindness and generosity during this difficult time,” she wrote. “Thank you for the kind gesture that you showed my son with that little gift. To many people it might just seem like a toy, but for people who don’t have much it means a lot.”

Reynolds credited Price for recognizing a way to create a greater connection between the restaurant and its neighbors. “It was a wonderful thing for a community that doesn’t get a whole lot, and it was all the brainchild of our general manager because he saw the need in his community,” she said. n

On Dec. 30, Las Vegas, Nevada, welcomed football teams from the University of Wisconsin and Arizona State University to compete in the Las Vegas Bowl at Allegiant Stadium.

Glencoe Management, a BURGER KING® franchise company with 44 restaurants, was proud to sponsor the game and to provide a Youth Football Package to 100 deserving students from area schools through the After-School All-Stars organization. The evening included members of Glencoe Management presenting the After-School All-Stars MVP Volunteer of the Year Award on the field. After-School All-Stars provides activities for elementary and middle school children after the school day ends.

The game was a perfect opportunity for Glencoe Management to share its community pride, as franchisee Tom McDonald sits on the board of the local After-School All-Stars chapter and franchisee Steve Keith is on the board of the Las Vegas Bowl. n

Steve and Megan Keith of Glencoe Management with After-School All-Stars Program Director Jodi Manzella and the MVP Volunteer of the Year Award recipient on the field at the Las Vegas Bowl.

Students from the Las Vegas chapter of the After-School All-Stars attended the Las Vegas Bowl.

General Manager Matt Price, as Santa Claus, welcomed children to Geiger Management’s BURGER KING in Porterville, California, in December.

Neighbors thanked the restaurant for giving area children a great holiday memory.

PJ Foods Growing Fundraising Efforts

BURGER KING® franchise organization PJ Foods LLC, with 10 restaurants based in Baltimore, Maryland, has built a strong track record of contributing to local charitable organizations with a fundraising program started under the umbrella of the BURGER KINGSM Foundation.

PJ Foods is a family-run business, operated by franchisee Gary Andrzejewski and his sons, Luke and Scott, who serve as vice presidents. Gary Andrzejewski said the program was developed by Luke Andrzejewski. “We felt it was important to engage in helping local organizations in need,” Gary Andrzejewski said.

In 2021, PJ Foods raised $10,000 in one month by setting a goal for each of its restaurants to raise $1,000 each through suggestive selling – asking each customer to donate a $1 to the community when they purchased food. Because of that campaign, three organizations, House of Ruth, Special Olympics and Living Classrooms, an organization supporting Baltimore-area youth, received a check for $10,000 through the BURGER KINGSM Foundation.

This year, the company plans to support six charities, including Maryland Food Bank, House of Ruth, Veterans of Foreign Wars Unmet Needs, Alzheimer’s Association, Special Olympics and the BURGER KINGSM Foundation. “This program is a winner for

us, the BURGER KINGSM Foundation and our community,” said Gary Andrzejewski. “We plan for each of these organizations to receive $10,000, and any money exceeding our $10,000 goal will be donated to local food pantries.

“As a franchisee and father, I want to thank Luke for his commitment to helping others in need.” n

Gary Andrzejewski, center, presented a check to representatives of Special Olympics Maryland.

Luke Andrzejewski, right, made the donation to House of Ruth Baltimore on behalf of PJ Foods.

JSC Management Group Springs Into 2022 After Bustling Year

JSC Management Group, led by franchisees James and Sarah Cammilleri, marked a busy 2021 by staying just as active as it moved into 2022.

The company, which operates 64 BURGER KING® restaurants in the Northeast, hosted 14 grand-opening and grand-reopening ceremonies at locations in Connecticut, Massachusetts, New York and Rhode Island last year. The company also coordinated four in-restaurant fundraising campaigns at its restaurants and had four leadership training events. It started 2022 with its annual JSC Management Group Vision Event in Uncasville, Connecticut.

Headlining 2021 for the organization was the opportunity to celebrate new or remodeled store openings. “We welcome the entire community to join us as we present a $1,000 donation to a local not-for-profit community organization,” said Nicoletta Cammilleri, marketing director for the company. “Grand-opening events feature a ribbon-cutting ceremony, fun activities, giveaways, the King, balloons and more. Mayors and other community leaders and local news and radio stations often attend as well.”

The presence of public officials and community leaders speaks to their recognition of the company’s commitment to the communities in which it operates. In 2021, JSC Management Group restaurants brought in $500,000 for organizations focused on ending childhood hunger, much of it going back to the communities in which it was raised.

Community support doesn’t end there, however. “We also sponsored several local sports teams to enable them to purchase equipment and other items necessary for a successful season, we sponsored local events in support of other not-for-profit organizations, and we awarded high school seniors with $1,000 scholarships to support them in their pursuit of a college education,” Cammilleri said.

“We value being part of our restaurant communities, and as such, sponsor partnerships and initiatives to support local schools. Our JSC Community Incentives program includes achievement awards program fundraiser savings cards. Our involvement with local schools, businesses and organizations through our local store marketing efforts is founded on the belief that by supporting our communities, we can create happier employees and more loyal guests.”

While JSC Management puts a great deal of emphasis on outreach in its communities, there is also a strong focus on internal growth and development of people as well. About 80-100 leaders in the organization attend quarterly leadership seminars. In 2021, the theme was the journey from being managers to becoming leaders,

and noted leadership and training expert John C. Maxwell, a New York Times bestselling author, was the keynote speaker at the October seminar.

“We value and believe in our team members and are committed to fostering and supporting their ongoing growth and development through comprehensive, interactive, in-person leadership seminars,” Cammilleri said.

More than 200 company leaders also attended the annual vision event that kicked off 2022. BURGER KING President of U.S. and Canada Tom Curtis was in attendance as well. The event is designed to bring the company’s leaders together to celebrate and award achievements from the previous year and set goals for the new one.

All the activities spring from JSC Management Group’s core culture, which has a determined focus on its teams, their training, health and well-being so that they are equipped to provide their guests and communities with the best service possible. “JSC culture is about valuing each other, our guests and the communities in which we serve,” Cammilleri said. “Community involvement, outreach and engagement are integral parts of our culture to engage, support and add value in our local communities.”

JSC Management Group marked 2021 with 14 grand-opening and reopening ceremonies, donations to groups fighting childhood hunger and four leadership training events.

RECOGNITIONS

Congratulations to the following TOMS King employees …

Dalia Alegre was recently promoted to restaurant manager. She started with TOMS King two years ago as a team member and quickly worked her way up the ladder.

Steven Torti was recently hired as manager of talent acquisition for TOMS King. Torti is a recruiting and talent acquisition professional with two decades of experience in hiring and sourcing top talent.

Steven Hamilton has been promoted to senior district manager for the East Region. Hamilton has been a district manager for TOMS King since early 2021, covering the southern Virginia market.

Congratulations to the following GPS Hospitality employees …

Daniel Lee was promoted to vice president of financial planning and analysis. Lee first joined GPS Hospitality in 2017 as manager, financial planning and analysis, strategy. In his new role, Lee will continue to work with the executive team in strategy development to drive growth and revenue.

“Daniel has brought a creative and innovative focus to our planning and analysis team since joining GPS,” said Scott Jasinski, chief financial officer of GPS Hospitality. “His ability to create analyses that make it easy for all levels within the organization to understand and apply to our business has been invaluable.”

GPS Hospitality recently announced five new inductees to its Partner Program, which is designed to reward key team members who contribute to the long-term value of the company and are committed to helping the company grow. The five new inductees are:

• Todd Bennett, director of accounting

• Bobby Garner, director of operations

• Tiffany Howard, manager of benefits

• Shelly McKinnon, director of operations – Gulf Coast West

• Nick Myhre, director of operations – Georgia Northwest n

Mid South Franchisee Association Kicks Off Year in New Orleans

The Mid South Franchisee Association (MSFA) kicked off 2022 with a meeting in New Orleans that had a little bit of everything – from business updates and a lively trade show to a viewing party for the NCAA Division I football national championship game and a Big Easy-style soiree and reception.

Three dozen franchisees and guests from the MSFA, Ohio River Coalition and Florida Caribbean Franchisee Association joined about 60 vendors for the meeting, held Jan. 9-11 at the Marriott New Orleans. The meeting featured presentations from several vendors, including Xenial, Workstream, rapid!, Comcast Business, Armor Security, Atmosphere TV and UPshow.

MSFA President Kevin Newell led the event for MSFA, the first of two planned for the association in 2022. Featured on the first day were presentations from National Franchisee Association (NFA) Chair Dan Fitzpatrick, who provided franchisee updates and a report from the Marketing Advisory Committee, Benjamin Vargas of Veterans of

Foreign Wars, who spoke about the Unmet Needs Program, and NFA CEO Christy Williams, who provided an update on Elevanta.

Members of the Burger King Corp. leadership team, including Tom Curtis, president, U.S. and Canada, and Katerina Glyptis, vice president of franchise operations, North America, also attended and spoke on the meeting’s first day.

Attendees watched the national championship game on Jan. 10 at Walk-On’s Sports Bistreaux near the Caesars Superdome and the next day enjoyed a New Orleans brunch at Tujague’s in the French Quarter.

The second day of the meeting also featured an operations update and RSI presentation from RSI CEO Joel Neikirk and a Government Relations Council address from Dominic Flis. Franchisee-only roundtable discussions closed out the meeting.

MSFA will meet again in 2022 in Snowmass, Colorado, in a joint event with members of Great Western Franchisee Association on July 10-12. n

Jenrich retires from Keurig Dr Pepper

Dear BURGER KING® Partners,

I am all at once pleased and saddened to announce that after 15 years of dedicated service to the RBI Team, and 24 years of service to the Keurig Dr Pepper Fountain Foodservice Banner, national account executive Jeffrey Jenrich retired from Keurig Dr Pepper on Feb. 4.

Jeffrey began his noteworthy tenure in the soft drink industry when he joined the 7UP Bottling Co. in Milwaukee, Wisconsin, in 1985. He also held various positions with Bottlers and Snapple before we acquired the brand. He joined the Dr Pepper 7UP Co. with the fountain food-service division in 1998. These roles helped shape Jeffrey’s broad experience and knowledge of the industry.

In 2007 Jeffrey became a member of the BURGER KING® team, and from the beginning, he helped shape the strategic direction and framework for our team going forward. His contributions have been immeasurable to me and the RBI team over these years and to his franchisees and Burger King Corp. partners. Jeffrey always said, “BURGER KING franchisees are more like family than any other account I ever called on.”

I want to thank Jeffrey for the intelligence, focus and leadership he provided daily and his many years of service. I feel very fortunate to have been able to work alongside him and call him my friend.

Please join me in thanking Jeffrey for his contributions and to the many fond and fun memories.

Sincerely,

Kelton Graham

Vice President, Restaurant Brands International Keurig Dr Pepper

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Attendees watched the NCAA national championship football game together as part of the Mid South Franchisee Association meeting in New Orleans.

Jenrich

GWFA Convenes at Arizona’s Talking Stick Resort

Regional Events

April 6

Southwest Franchisee Association Regional Meeting

April 6

Mountain Franchisee Association Regional Meeting

Denver, Colorado

April 20

New England Franchisee Association Regional Meeting

Waltham, Massachusetts

June 15

New England Franchisee Association Regional Meeting

Waltham, Massachusetts

The Great Western Franchisee Association (GWFA) brought its members to Talking Stick Resort and Casino in Scottsdale, Arizona, in early February for the region’s first meeting of 2022.

Franchisees enjoyed a good mix of leisure activities, including golf, receptions and a Texas Hold ’Em Tournament, along with a day and a half of vendor presentations and business updates.

Vendor partners and sponsors included Atmosphere TV, Keurig Dr Pepper, Restaurant Technologies Inc., rapid!, AAP, Allen Industries, BlueTriton Brands, The Coca-Cola Co., Comcast Business, ComplianceMate, DMI Manufacturing, Duke Manufacturing, Elevanta, Elkay Interior Systems, Frozen Beverage Dispensers (FBD), FCC Commercial Furniture, Franke Foodservice Systems, Freund Baking Co., Greenlink Payroll, Hall Financial Advisors LLC, HME, Hour Work, Insite Real Estate, Lancer Worldwide, Lektron Branding Solutions, Mahoney Environmental, McDermott Costa Insurance, Nicholas and Co., Nieco, Solink Corp., Sound Masters, Spray Master Technologies, SYGMA, Tiger Natural Gas, UPshow, Welbilt and Xenial.

GWFA President Ayaz Virji opened the meeting’s first day, which included presentations from Elevanta CEO Christy Williams; RSI CEO Joel Neikirk; Russ Lo Bello, chair of the National Franchisee Association (NFA)’s Information Technology Council; Shane Jacobs, chair of the NFA Restaurant Council, NFA Image Committee members Tom McDonald and Brad Flahiff and NFA Government Relations Council member Bruce Pavlikowski. Burger King Corp. President of U.S. and Canada Tom Curtis and his team headlined the second day of presentations.

Members of GWFA will meet again in 2022 in Snowmass, Colorado, in a joint event with Mid South Franchisee Association members July 10-12. n

June 15

Southwest Franchisee Association Regional Meeting

National Events

March 29-31

NFA Day on the Hill

Washington, D.C.

March 31-April 1

NFA Board Meeting

Washington, D.C.

June 7-8

NFA Board Meeting

Las Vegas, Nevada

June 7-10

NFA LEAD Conference

Las Vegas, Nevada

June 22

CFA Day Forum

Washington, D.C.

The GWFA trade show included prize giveaways for franchisees.

REGIONAL ASSOCIATIONS

Ayaz Virji Great Western Franchisee Association

Michael Laird Southwest Franchisee Association

Shirley Humerian Southern California Franchisee Association

Amir Allison Mountain Franchisee Association

Patrick Sidhu Large Franchisee Group

Camille Lee-Johnson Minority Franchisee Association

Guillermo Perales International Hispanic Franchisee Association

Mike Kitchingman Canadian Franchisee Association

Nasser Aliabadi Great Western Franchisee Association Mid South Franchisee Association

Kevin Newell

Gary Geiger Great Western Franchisee Association Mid South Franchisee Association

Kevin Fernandez

Mark Peterson Great Midwest Coalition

Henry Delouvrier

Andrew Schory Ohio River Coalition

Brek Kohler New England Franchisee Association

Amir Syed Metro New York Franchisee Association

Gary Andrzejewski Mid-Atlantic Franchisee Association

Russ Lo Bello Florida/Caribbean Franchisee Association

Great Midwest Coalition

Matt Carpenter Great Midwest Coalition

Glenn Levins Florida/Caribbean Franchisee Association

Mid South Franchisee Association

Larry Stokes Mid South Franchisee Association

Mike Callahan

C.J. Timoney Ohio River Coalition

Support the Vendors

That Support Your Association

Meet the Newest Member of the NFA Board of Directors

Each year, the National Franchisee Association (NFA) highlights individuals who have been welcomed to the NFA’s Board of Directors over the last year. The association would like to give a warm welcome to Mark Peterson. Read on to learn more about your newest board member.

Mark Peterson

Vice President Operations

Company: Bennett Management Corp.

Number of units: 25

Year entered system: Bennett Management entered the system in 1965. How did you become involved with the BURGER KING® brand? I joined Bennett Management Corp. in 1986.

What attracted you to the brand? I started at McDonald’s in 1976 and spent 10 years with that brand. I joined Bennett Management Corp. in 1986 as I recognized that BK® was the rising star in the

quick-service industry. I was particularly interested in working for Bennett Management Corp. because I was very familiar with them as a local competitor in the Toledo market and how involved it was in the community and how it was a family-oriented company that put its employees first. I also wanted to work for one of the great innovators in the industry in Robert G. Bennett.

What motivated you to become involved with the NFA at this level? The NFA has always been a strong advocate for the franchise community. The leadership teams have been very effective in working with Burger King Corp. (BKC) to move the brand forward and make sure the best interests of the franchisees were first and foremost.

What do you see as your role as a board member? I have spent my entire working life in the industry, and I think I have

some wisdom to share and want to support the current leadership in any way I can.

What would you most like to see accomplished during your term? A strong partnership with the BKC team that results in increased sales and traffic that is sustainable and profitable in these very challenging times. I have great confidence in the current leadership with the NFA that these goals will get accomplished.

Spotlight on the 117th Congress: Rep. Andrew Garbarino (R-NY-02)

QWhat skills or perspectives from your background do you apply as a public official?

AI am an attorney by trade, and I saw firsthand how laws and regulations can affect people, for better or worse, on a day-today basis. As a congressman, this has allowed me to focus on the real-life implications of the laws we work on and ensure that policies I support work for the people, not against them.

QHow has being the son of a smallbusiness owner influenced your opinion on the impact of legislation on small business?

AI know from experience how much goes into running a small business. It takes a lot of hard work and a lot of dedication, and nothing is more frustrating than when red tape or intrusive regulations make it harder to help your business thrive. Whenever I’m reviewing a potential new law that would affect small businesses in my district, I consider a question – will this make it easier for small businesses to grow and thrive or more difficult?

QIn your role on the House Committee on Small Business, what do you see as the current biggest threat to small-business owners?

AThe biggest threats to small businesses and business owners today are increased taxation, overregulation and uncertainty. Burdensome taxes and regulations have long been a hinderance to all businesses. Government imposing higher taxes and increasing bureaucratic red tape will always prevent a small business from growing, thriving and advancing into success. Uncertainty is a product of taxes and regulations, but in this current pandemic state, small businesses are unsure if they will be able to open their doors based on state or local health directives. These small-business owners have had their livelihoods stripped from them because of shutdowns and mandates and need to be given the opportunity to do what is best for them as business owners.

Q What challenges have you helped small businesses in your district overcome?

AManeuvering government bureaucracy is difficult, especially in the aftermath of the pandemic and the implementation of new Small Business Administration (SBA) programs and loan opportunities. Since taking office, I have been active in making

sure the small-business community on Long Island has the resources necessary to take advantage of any program that any small business wants to apply for. My district office has worked with our local SBA office to create an environment of collaboration and responsiveness. We work hand-in-hand to provide feedback and resources to our area’s small businesses. I look forward to continuing that relationship with the local SBA and providing services to business owners across Long Island.

QIn what ways are you seeking feedback from small businesses in your district in New York and using that information in Washington, D.C.?

ASmall-business owners are in the best position to determine what they need and don’t need from Congress, which is why it’s important to me to keep an open line of communication with the business community. Last year, I created a Small Business Advisory Council made up of small businesses from across my district and representatives from local chambers of commerce. My meetings with this council have become a forum for local business leaders to share their needs and frustrations for me to take back to Washington, as well as opportunities for me to provide information about federal resources available to our small-business community. For legislation to work in the real world, we need the input of the real people the new policy would impact.

QYou are a member of the bipartisan Problem Solvers Caucus in Congress. How do groups like this benefit the business community and the nation?

APolitics today is fractured. However, I firmly believe that there is more that unites us as Americans than divides us. That’s where groups like the Problem Solvers Caucus come in to work toward bipartisan solutions through civility, mutual respect and open discussion of the issues. Members of Congress are sent to Washington to represent their home districts and to pursue legislation that will impact their constituents. Not every bill gets consideration in committee or on the floor, but proper discussions and building support happen within open-minded caucuses and groups such as Problem Solvers. Such collaboration will always be beneficial to how Congress functions and to the future of our nation’s politics. n

Amir Allison

Gary Andrzejewski

Marianela Aran

Emily Bennett

Christy Berg

Randall Bradley

Annette L. Broatch

Ronald Broatch

Michael Callahan

Matt Carpenter

Diane Clayton

Joseph Clements

David Cooley

Juan Cruz

Stephen Dankert

Michael De La Rosa

BURGER KING® FRANCHISEE PAC Update

2021, the BURGER KING® Franchisee PAC raised $143,700 toward

and supporting pro-business legislators. The generosity of

Robert De La Rosa

Nicole Dreier

John Echimovich

Gary Edwards

Kevin Egnatuk

Bill Eldred

Kim Ervin

John C. Firth

CJ Fitzpatrick

Daniel Fitzpatrick

Daniel J. Fitzpatrick

Jerry Fitzpatrick

Dominic Flis

James Froio

Clifford Galen

Craig Giangrande

following donors:

Michael Gould

John Gross

Kevin Haas

Erin Hasselgren

Matt Herridge

Shane Hitzeman

Shirley Humerian

Gregory Johnroe

Christopher Johnson

William Keller

Brek Kohler

Ken Kopischke

Michael Laird

Gary Levins

Glenn Levins

Rachel Levins

Leo Leon

Russ Lo Bello

Larry McAninch

Thomas McDonald

Bruce Miller

Stephen Miller

Stephen Morris

Kevin Newell

Grant Norrid

Brent Northrop

Edward Northrop

Todd Northrop

Bruce Pavlikowski

Robert Reardon

Bob Reid

Steven Rooks

Vance Rossell

Richard Santowski

Andrew Schory

Allison M. Schuster

Todd Schuster

Paul Scordia

Michael Showalter

Patrick Sidhu

Michael Stanley

Lawrence Stokes

Craig J. Timoney Jr.

Rao Tummala

James Walther

Gene Welsh

Kim Zeller

Stanley Smiedt

Stanley Herbert Smiedt, a former BURGER KING® franchisee with 40 years in the system operating locations in California, Texas, New Mexico and Colorado, died Dec. 27. He was 78.

Smiedt founded and owned JS Foods, based in San Diego, California, with his brother-in-law, Julian Josephson. His nephew, Anthony Josephson, now operates the company, which has 32 BK® restaurants and seven Bruegger’s Bagels and is rapidly growing into the Popeyes Louisiana Kitchen brand. Smiedt was known for his dedication and passion for the brand and care for employees of the business.

Smiedt and the older Josephson and their families immigrated to the U.S. from South Africa in 1978. As they settled in their new home and investigated business opportunities, they connected with BURGER KING officials in Florida. After several meetings, they were approved to buy stores in Pennsylvania, Texas or California.

“It wasn’t a tough decision,” recalled Julian Josephson. “The weather was gorgeous when we flew out to San Diego in the winter of 1976. We said, ‘We’ll take the stores in San Diego.’ We saw opportunity there in terms of expansion and purchased three company stores. We took over in September of 1978.”

Success came quickly to the partnership, and the pair soon had the opportunity to buy locations in the Houston, Texas, area from another franchisee in the 1980s. In the 1990s, they bought additional restaurants in New Mexico and Colorado from another franchisee, taking their business to ownership of 45 BK® restaurants by 2015.

“My brother-in-law and I shared the burden of managing the restaurants,” Josephson said. “He focused on the administration and making that side of the business run well, which wasn’t what I was interested in. Stan had a way of balancing our partnership for the better.”

“They were a heck of a partnership,” said former BK franchisee and National Franchisee Association (NFA) Chair Steve Lewis. “Both knew their roles. Stan was always the partner in the background, and Julian was the front guy. It was a seamless partnership, really nice to see.”

Julian Josephson served as NFA vice chair during Lewis’ first term as chair. “Stan’s contributions were keeping the administrative side under control to allow Julian to do the work of the NFA,” Lewis said. “He was a marvelous man and never had a harsh word for anyone. He was just a gentleman.”

Later, Smiedt and Josephson sold the Houston-area restaurants and bought more in New Mexico, setting the stage for when

Anthony Josephson stepped into the company. “If there was ever a blessed day in our lives, that was it,” said Julian Josephson. “That was the very best thing that ever happened to us. We spent a year with him, and then we retired in 2018. Anthony has taken it a level we were never able to do.”

“I had a close relationship with [my uncle], and it got even closer when I joined the business,” said Anthony Josephson. “He treated me like a son. He was exceptionally open and welcomed me into the company. I’ll always be grateful for that.

“He was very level-headed and a smart businessman,” he added. “He was willing to take risks, but he also knew when to step back. He was a huge part of the success of the company.”

Josephson recalled going to his father and his uncle with a plan for expanding into the Popeyes brand. “Stan could have taken a pass on it, but he demonstrated his faith and confidence. That was a tremendous feeling to know he had that type of confidence in me. He never blinked and was ready and enthusiastic for investing in this next growth opportunity.”

Josephson said Smiedt left a long-lasting mark on the people at JS Foods. “He was a stickler for attention to detail. He loved going into the restaurants and visiting with the teams. After he passed, I sent a message to everyone in our company about him, and we received note after note from longtime employees who talked about the impact he had on their personal and professional lives. He really left a legacy. It’s something to imitate going forward.”

Smiedt loved to travel with his wife and spend time with his family, which includes two sons and five grandchildren. He also enjoyed golf and was deeply involved in philanthropic pursuits. “He was the most wonderful man,” said Julian Josephson. “There was not an organization in San Diego that he didn’t contribute to substantially. He was the kindest, gentlest human being. He made everybody’s life a lot better. We never had a bad word between us. He really was a brother to me.

“He loved the franchisees, and he loved BURGER KING. [His passing] is a huge loss to the system and to our family.” n

Franchisee to Franchisee Forum

To be honest, my locations have been blessed. While we had periods of time that our staffing was tight and I was very concerned about having to reduce hours, we took a very proactive approach, got extremely aggressive with how we were going to solve the problem and are 100% staffed. Our business is growing by leaps and bounds. We had zero turnover in January, and as of now, lost two hourly team members in February that we quickly replaced.

– Mark Malenchik

The Great Resignation has brought turnover at every level of our organization from team members to directors of operations. We have combated these issues through new hiring methods focused on the employee scheduling their own interviews as well as pushing more employee-focused initiatives. One area we have continued to push is a contest platform each month where employees can be eligible for an extra $1/hour in pay if they are at the winning restaurant. This gives us the flexibility to push initiatives we want to focus on outside of BKC. We have also been focused on reducing equipment issues at all costs by either replacing equipment or updating different parts of our restaurants. If employees deal with issues that are out of their control, such as a fryer or a broiler, it adds an additional level of stress that can be avoided. Lastly, we continue to look at simplifying even the most minor steps throughout the day to make life easier on our teams as well as making it easier to maintain organization at restaurants.

- C.J. Timoney

Like many franchisees and business owners in other industries we have been greatly impacted by the Great Resignation. We are employing many tactics to navigate this blow to our operations. One of the largest factors to this resignation is the policies put in place by our federal and local governments, and it underscored to me how critical it is that we voice our concerns and have an open dialogue with our representatives. We are all competing for the same workforce, but it seems the largest competitor is now our own government.

- Josh Lephart

COVID-19 in general is the impact on employment for all industries, not just ours, so I would not necessarily identify the concern as “the Great Resignation.” People have left the workforce while others changed fields of employment and many who were working two jobs pre-COVID-19 are no longer doing so.

I would focus however on your second question, “What have we been doing to combat it?” The first step was stressing to the managers and leaders of the restaurant to maintain a sense of “normalcy.” Our industry has had challenges around staffing for years, so we are already adept in maintaining our operations even with some increased people challenges. That helped the managers maintain their confidence and general approach to the business while still needing to address the shortcomings of the employment pool.

I believe this helped them think a little more outside the box in terms of the big picture. As a result, we shifted some daily duties to different time frames to ensure they still are completed. An example is that the cleaning of toasters was moved from a closing procedure to a mid-day process that involved the mid manager and the daytime working team. This reduced an item that the closing team had to complete each night and took away some stress. Filtering fryers is another similar example.

Some restaurants added a daytime porter, again shifting some of the closing team responsibility to a dedicated person in the morning.

Other restaurants hired a dishwasher. This might be a limited skill individual that simply works a few hours a day cleaning dishes only. This helped the limited staff focus on sandwich-making and service standards directly with the guest.

We also became creative in advertising our employment opportunities. An example is putting advertising about hiring needs on the trash enclosure gates in some restaurants. The signs are viewed by all cars approaching or in the drive-thru line. This helped maximize the viewing opportunity.

Another area was targeted advertising to recruit 14- and 15-year-old employees. This age group was limited in outside activities during the pandemic yet wanted to get out of the house. While limited in their skills and hours they could work, they filled a need, especially on the weekends, helping stretch the productivity of other skilled employees.

We simply did what we have always done: Keep studying the problem and determine how to mitigate it in ways we may not have thought of during general living times. Keep it normal! Life goes on!

- Keith Egyed

How has the Great Resignation affected your restaurants, and what have you been doing to combat it?

FamilyMatters FamilyMatters

The Neubauers Carry on a 55-Year Legacy With BK

John Neubauer sits at his desk surrounded by his family members. From left: Kathy Thomas, Johnny Neubauer, Joseph Neubauer and Joe Neubauer.

In 2022, franchisee John Neubauer is celebrating his 55-year anniversary with BURGER KING®. It all started March 6, 1967, when he was hired as part of the opening team of BURGER KING Restaurant No. 279 in Cedar Rapids, Iowa.

The owner of the restaurant sent Neubauer to a 30-day course at Whopper College in Miami, Florida. Neubauer learned best practices and strategies that helped him launch his BK® career. One of the most prominent pieces of advice he received was from the 1967 Dean of Whopper College, Jim Pittman, who told students to “Just take care of the pennies, and let the dollars take care of themselves.” He passed this tip – and many others acquired through the years – to his children and grandchildren.

Neubauer grew from a Whopper board worker to a manager of a new restaurant in Moline, Illinois, to a supervisor who helped open two more restaurants in Illinois and Iowa.

He opened his very own BURGER KING franchise in Pine Bluff, Arkansas, on Feb. 22, 1977. He never imagined that over 50 years and three generations later, his family would still be carrying on the legacy that he started.

John Neubauer has owned as many as 14 restaurants in Arkansas and Oklahoma. Currently, he operates two restaurants that bring in average annual sales of $1.6 million.

John’s children, Joe Neubauer and Kathy Thomas, have very early memories growing up in their father’s restaurants.

“My earliest memory was when I was about 5 years old. I would go with my dad to the BURGER KING in Moline, Illinois, on Sunday mornings,” said Thomas. “I would sit at the table playing with the BURGER KING hand puppets while dad was behind the

counter checking on his crew.” Her brother reminisces about washing windows as a preteen at the Davenport, Iowa, restaurant.

The siblings both began careers in their father’s restaurants as crew members. As John built more BURGER KINGs, they moved into restaurant management and then became area supervisors. Then in 1992, Kathy and Joe heard about two BK restaurants in Muskogee, Oklahoma, that were for sale. They decided to purchase both locations, launching their careers as franchisees.

by SAVANNAH DALY

Over several decades in the industry, the Neubauers have seen lots of changes in the fast-food world. “The biggest industry change I have seen is the computer technologies,” explained John Neubauer. “We started out with those heavy, metal coin changers with all those buttons and now we have high-tech registers with touch screens and reports processed with a single touch.” Neubauer still has the original coin counter from his first restaurant.

Another industry change that Thomas has witnessed is the increase in competition. Customers have more restaurant options to choose from – both dine-in and quick-service, and BK owners must keep up with this change.

After 30 years of experience as franchisees and buying 11 restaurants, Joe Neubauer and Thomas decided to sell 10 restaurants to Joe’s sons, Joseph and Johnny Neubauer. They still have ownership in one restaurant. “I love being a franchisee and working with everyone,” said Thomas. “It is in my blood, and it’s what has shaped me into the person I am today.”

The Neubauer grandsons both have fond memories of visiting the drive-thru at BK No. 2696 and getting breakfast croissants and cini-minis before going to elementary school. They are thankful that they get the opportunity to carry on the family legacy.

“We feel we are blessed with this tremendous opportunity to continue representing the brand and helping drive the business forward,” said Joseph Neubauer. “For Johnny and me, we

Continued on page 24

John Neubauer works at a BK in the early 1970s, wearing a special uniform for St. Patrick’s Day and holding a green shake.

In this Tyson Annual Report Booklet, Kathy Thomas is pictured serving a family of guests at BK No. 2696.

“I love being a franchisee and working with everyone. It is in my blood, and it’s what has shaped me into the person I am today.”

– Kathy Thomas

Neubauers

Continued from page 23

don’t lend much credence to the three-generation succession. We want to highlight and celebrate all the long-term people who were instrumental in driving and building this legacy as a team.”

That team is made up of several different employees who aren’t related to the Neubauers but have become family over the years. Several of them have worked with the company for over 25 years, including:

• Loretta Dotson, office manager, 42 years

• Roberta Burns, restaurant manager, 39 years

• Kimberly Smith, accounts payable clerk, 36 years

• John Jennings, director of operations, 32 years

• Roberta Clark, crew member, 28 years

• Marshall Thomas, maintenance manager, 27 years

• Tracy Trujillo, crew member, 26 years

• Audra Sargent, accountant, 26 years

When asked about their favorite family memories, the Neubauers agreed that traveling to annual BKC Conventions holds a special place in their hearts. When the convention was held in Orlando, Florida, the family was able to see the new initiatives of the brand and visit Walt Disney World. “It was the perfect mixture of business and pleasure,” said Joe Neubauer.

“I always enjoyed traveling with our families and having some fun together,” said Thomas. “It was a time we could reflect and set goals for our business. We had confidence in our employees to keep operations running smoothly while we were at conventions.”

John, Joe and Kathy are excited to see Joseph and Johnny growing the business and carrying on the family legacy. The brothers have three goals they are focusing on for their BK restaurants: driving sales and traffic, creating a culture of celebrating the guests, and recruiting, incentivizing and retaining individuals who will help drive the brand forward.

It is important, particularly in the QSR industry, to keep an open mind and strive for the positives. “There are talented people in all these stores across the country, and it’s up to individuals in leadership roles to validate confidence, optimism and belief in them,” they said.

“Life is work,” said Joe Neubauer. “It’s always best to be with people you love to work with.” When they aren’t working, though, the family loves to spend time together exploring their home state of Arkansas. They love to hike, fish and canoe in the lakes and rivers across the state.

“Having a family business has its pros and cons, but Joe, Kathy and I have worked together to grow it into a great company,” said John Neubauer. “I’m blessed to get to see my grandsons start to take over and do the same. Maybe someday the next generation will do the same and continue growing.” n

John Neubauer’s original coin counter, seen in use at a fundraising event at the Davenport, Iowa, restaurant in 1970.

Marshall and Kathy Thomas stand alongside Carolyn and Joe Neubauer at the grand opening of Joe and Kathy’s restaurant: BK No. 13308.

“It’s always best to be with people you love to work with.”

– Joe Neubauer

LOOK LISTEN READ

Look, Listen, Read is a quarterly compilation of some of the most highly rated and reviewed apps, podcasts, books, websites and other resources. NFA does not support or endorse the use of these tools, which merely serve as a guide to exploring a new level of knowledge and productivity for your business. 1

In “WorkLife with Adam Grant,” organizational psychologist Adam Grant takes you inside the minds of some of the world’s most unusual professionals to explore the science of making work not suck. From learning how to love criticism to harnessing the power of frustration, one thing’s for sure: You’ll never see your job the same way again. 2

In ”The Culture Factor” podcast, you’ll hear conversations with founders and influential leaders about company culture. Hosts share stories from the C-suite that help executives engage their business from the inside and create a map to transform their culture. Because the truth is culture eats strategy for breakfast. 3

Well-being is the most misunderstood, misaligned and undervalued asset in business today. This needs to change. To address this, Daryl Brown and Lina Mbirkou are igniting conversations around measurable and accountable methods and processes for developing a thriving, generative conscious workplace culture in the ”Beyond Wellbeing”podcast.

4SOS Inventory is designed to make inventory tracking, order management and manufacturing easier. SOS Inventory integrates with both QuickBooks and Shopify and can be used on desktop, tablet or mobile. With this app, you can manage inventory in more than one business location, track your items according to several different attributes (like serial number and cost history), and create tickets and packing slips, among other features.

5”Simply Said” is the essential handbook for business communication. Do you ever feel as though your message hasn’t gotten across? Do details get lost along the way? Have tense situations ever escalated unnecessarily? We all communicate, but few of us do it well. From tough presentations to everyday transactions, there is no scenario that cannot be improved with better communication skills.

6

If you’re managing more than a few employees and need to implement larger, more complicated processes, Trello is a good option. This card-based system lets you easily create, assign, monitor, update and complete different tasks – it’s a great way to make sure everyone is as productive and efficient as possible.

7This resource management software allows you to check team availability, schedule resources, and track working time and days off within one application. Customizable reports can also be generated within Teamdeck to help you oversee your team’s performance and track the KPIs of your choosing with online software and a corresponding mobile app.

8If you’re like most entrepreneurs, you started your business so you could be your own boss, make the money you deserve and live life on your own terms. But you’re bogged down in the daily grind, constantly putting out fires, answering an endless stream of questions and continually hunting for cash. Author Mike Michalowicz offers a straightforward step-by-step path out of this dilemma. In ”Clockwork,” he draws on more than six years of research and real-life examples to explain his simple approach to making your business ultra-efficient. n

MEET THE

2 2 2 NFA LEAD CONFERENCE LEADing People Tomorrow

COMMITTEE MEMBERS

The National Franchisee Association (NFA) Leadership, Exploration and Development (LEAD) Conference was established in 2019 and has quickly become the NFA’s largest and most anticipated yearly event.

The NFA LEAD Conference is geared toward educating, training and rewarding outstanding above restaurant leaders as well as offering valuable networking opportunities for franchisees with like-minded business owners and system suppliers. The conference takes a great deal of planning, and each year the NFA appoints members of the association to sit on the NFA LEAD Conference Committee. These committee members are the heart and brains of the conference and are tasked with ensuring that the conference is beneficial to members and provides attendees with insightful information that is important to their businesses. This year the NFA has welcomed back Andrew Schory as committee chair, with Matt Bars, Lindsey Bond, James Cammilleri, Andrew Geiger and Russ Lo Bello as committee members.

Andrew Schory JPL Management NFA LEAD Committee Chair

Tell us about yourself: I have been a franchisee for 15 years and have been in the BURGER KING® system for 30 years. In that time, the central most important resource in the business has been people and our investment in them.

What does the NFA LEAD Conference mean to you? I am super excited about this year’s NFA LEAD Conference and what we have in store for the above restaurant leaders across the country. The NFA LEAD Conference is an investment in them and that’s a priority for me.

Matt Bars

Ampler Burgers LLC

NFA LEAD Committee Member

Tell us about yourself: I am the president of Ampler Burgers LLC, operating over 70 locations in Texas with 10 years of experience with BURGER KING and 29 years in food and hospitality.

What does the NFA LEAD Conference mean to you? The NFA LEAD Conference offers a unique opportunity for operators to bring their deserving teams to an event for inspiration, ideas and knowledge. It offers individuals networking avenues where they can share best practices, build lifelong relationships and have fun outside of the four walls of our restaurants. I envision the NFA LEAD Conference giving those with a fiery desire a clearer path to personal and professional successes.

Lindsey Bond

Bennett Management Corp.

NFA LEAD Committee Member

Tell us about yourself: I am the senior director of talent acquisition and marketing for the Bennett Management Corp. organization since 2013. I am bringing over 25 years of talent acquisition, operations and training experience to the 2022 NFA LEAD Committee.

What does the NFA LEAD Conference mean to you? The NFA LEAD Conference is an excellent way for franchisees and above restaurant leaders to share best practices and learn new tips and how recruiting and retention ties to profitability. I am personally excited for my team to connect, grow and share ideas with others to make our organization the best it can be.

James Cammilleri

JSC Management Group

NFA LEAD Committee Member

Tell us about yourself: I’ve been a franchisee since 1989, operating 64 BURGER KINGs in the Northeast. I’m a proud husband to Sarah Cammilleri and father of two children, Nicoletta and Gabriel. I am most proud of our philanthropy work in Haiti, where we feed 36,000 children every day. We have developed over 50 Haitian leaders that employ over 200 Haitians to operate five businesses, provide nutritious bread to children and operate at a high level in a country that is in constant turmoil. They lead the way, we just come alongside them to mentor and train them to be better leaders tomorrow than they were today.

What does the NFA LEAD Conference mean to you? I believe in leadership over management. Management is finite and task oriented while leadership is infinite. Leadership requires you to be people centric and relationship driven. You are challenged to utilize your own set of values and purpose to inspire and change the world of others surrounding you. “Everything Rises and Falls on Leadership” –

John C. Maxwell

Tell us about yourself: I am a second-generation franchisee operating 20 locations across California, Washington and Idaho.

What does the NFA LEAD Conference mean to you? The NFA LEAD Conference presents an excellent opportunity to network with other franchisees and their teams as well as our vendor partners. Additionally, it provides a venue to expand my team’s knowledge, help them grow professionally, and exchange ideas and best practices as well as helping to learn beyond our field.

Russ Lo Bello

Organization NFA LEAD Committee Member

Tell us about yourself: I’ve been a BK® employee since I was 12 years old, starting in Long Island, New York. I learned how to mop and clean broilers and fryers and, even during six years in the military, never really stepped away from it. It never gets away from you once it gets in your blood. I love doing this. I am now the president of the Florida/Caribbean Franchisee Association and chair of the NFA IT Council.

What does the NFA LEAD Conference mean to you? I am humbled to continue to serve on the board to help shape our future LEADers as I continue to teach courses that not only inspire them but also give them the tools needed to operate our restaurants to their fullest potential. n

Nominate someone for a Doing the Extraordinary Award at the NFA LEAD Conference

If you’d like to recognize someone at the conference for outstanding performance in 2021, contact communications@nfabk.org. Nominating team members for a Doing the Extraordinary Award is a perfect way to express your gratitude! We will highlight these leaders during the conference.

Andrew Geiger Geiger Management NFA LEAD Committee Member

Phoenix

Make the Most of Resources, Culture to Build and Keep Good Teams

As 2022 began, a persistent shortage of labor continued to be a key challenge for BURGER KING® franchisees and their teams, who’ve hoped for improvement after nearly two years of suffering from the business complications of the ongoing coronavirus pandemic.

While COVID-19 infections rates have ebbed and flowed since March 2020, the difficulties that franchisees and businesses have had finding, hiring and retaining team members have been constant. Not limited to the restaurant or hospitality industries, the trend in the nation’s labor rate even earned a nickname in 2021: the Great Resignation.

The U.S. Bureau of Labor Statistics reported that restaurants added 108,000 new workers in January 2022, the leading industry for job creation in the nation. The bump means the industry employed 11.4 million people after the start of 2022, but that figure is still 1 million lower than pre-pandemic levels. A November survey by the National Restaurant Association found that 77% of operators said their restaurants did not have enough employees to meet customer demand, and franchisees will tell you that they continue to struggle to find the personnel they need.

“Labor has been extremely challenging,” said Matt Herridge, a franchisee with Charton Management with eight BK® restaurants in Ohio and West Virginia. “It seemed to become exponentially more difficult to find employees throughout 2021. 2022 has improved slightly following significant wage increases and bonusing opportunities for all employees.”

Government data shows that more than 20 million people quit their jobs in the second half of last year. Some did so for reasons related to the ongoing pandemic, ranging from fears of illness to

child care difficulties. But there are other, deeper factors at work, with labor statistics indicating that many people are choosing to drop out of the labor force, at least temporarily, to reassess their goals or to seek wholesale changes in their occupations.

Whether the difficulty finding and keeping workers is due to short-term factors or longer-term, deeper shifts in the labor market, the turmoil continues to affect restaurant operations. Even in the last few months, some restaurants have pared back menus and trimmed hours of operation because they don’t have the teams to support previous levels of service. The tight labor supply also creates problems beyond the in-restaurant experience. A shortage of drivers in the trucking industry and laborers in other industries disrupts the supply chain for food and restaurant supplies, putting additional stressors on operations.

by SEAN IRELAND

It adds up to a big headache for leaders of BURGER KING restaurants, who must often scramble to fill shifts for people who don’t show up, asking other team members to fill in, stay longer or come in earlier. That stress can lead current team members to join the Great Resignation, worsening an already difficult situation. 7shifts, a team management software company with products designed for restaurants, reports that only 23% of restaurant openings for cooks and line cooks have applications, 37% of manager postings have applications and 56% of bartender postings have applications. That’s a lot of openings without candidates to fill them.

Continued on page 30

Continued

Hiring was a challenge even before the pandemic, said José Cil, CEO of BK parent company Restaurant Brands International. Speaking to investors on a conference call in late January, as reported in Restaurant Business Online, Cil said, “We believe that this is going to continue to be a challenge and a responsibility for us in this industry, and that’s why we’re focused on a long-term approach to creating the right environment in our business for our franchisees and for their team members to be able to drive good, strong staffing levels as well as retention.” According to the story, Cil said the brand is simplifying menus, reducing ingredients and automating more in the restaurant to make operations simpler for team members, cutting some of the workload.

At the individual store level, the environment requires hiring managers to maximize candidate pools, respond quickly to people who express interest in openings and offer more to close the deal and keep new team members on board. Charton Management uses JobLure. “It is our in-house text-to-apply solution that allows managers to immediately communicate with applicants via text, setting up interviews within minutes of receiving a brief application,” Herridge said. “It has significantly increased the number of applications and hires we have versus online services alone.”

Even that is not always enough when the field in the labor market is tilted toward job seekers. “It seems as if there is generally less follow-though by prospective employees,” Herridge said. “Many do not show up for interviews and many more leave abruptly than in the past.” The company is considering using radio advertising and has banners up at every restaurant advertising its starting wage as additional lures to prospective employees.

Other franchisees are also working on adding new wrinkles to their recruitment efforts. At Syed Restaurants Enterprises, with 19 BK restaurants in New York, “We believe our team members are our most important resource, and our success depends upon creating and retaining a staff capable of delivering an exceptional guest experience to every guest, every time,” said franchisee Amir Syed. “Like everyone else, staff at all company levels is by far the No. 1 issue facing our organization. We’re still working on a silver bullet to resolve this.”

The company has established a dedicated central resource for assessing applications. No applications are taken at the restaurants to relieve stress on store personnel. All applications are submitted online, and managers receive information on the best candidates for interviews. Syed Restaurants Enterprises is also using in-store advertising and marketing for openings, recruitment service Snagajob.com and quarterly job fairs with local community outreach programs.

Once a new team member has been hired, the battle is only half over. Keeping teams engaged and satisfied with their jobs is just as important, if not more, given the cost of hiring and training new employees. “Employees resign for many reasons. Many are recruited away with small bumps in wage or because they want to be with friends,” Herridge said.

“We try to make working in our restaurants fun and encourage our managers to create a culture where employees feel that they are needed and missed if they aren’t there while knowing that they will be treated as valuable,” he added. “Culture is very important for retention and somewhat for attraction. Friends bring friends, and

the real culture will be noted quickly despite all the best slogans or purpose statements.” To encourage people to stay, Charton Management also offers employees $2 per hour for every payroll period if they show up for every scheduled shift during that period.

Culture is also an important facet of retention efforts for Syed Restaurants Enterprises. The company has an app for messaging, scheduling and recognition. Each restaurant has its own feed, but there is also a companywide communication option that is active when an employee receives praise from a guest or a restaurant is celebrating an achievement so that everyone in the organization sees the good news. The company also offers monthly store bonuses based on OPS and profitability metrics with qualifying restaurants receiving funds to split with the team, and there are quarterly company meetings to further highlight achievements and emphasize culture.

Building a good team-based restaurant culture can make all the difference in the world, and the culture is made up of many different pieces. Compensation plays a role, but so does feeling appreciated, opportunities for personal and professional growth, and working with and feeling like part of a good team. Companies that emphasize these aspects while also focusing on recruitment and retention best practices will likely be the most successful in this difficult labor environment.

“Each employee wants something different,” Herridge said. “Taking the time to get to know what motivates each employee and talking to them about their goals should be common across all, however.”

“The success of our organization is and will always be based on developing great teams that focus on delivering a great guest experience each and every day,” Syed said. “We try and provide them the tools, resources, visibility and leadership to run profitable restaurants while also celebrating the success and great achievements of our team members.” n

IRELAND is the NFA director of communications. You may reach Ireland at 678-797-5165 or seani@nfabk.org.

“We try to make working in our restaurants fun and encourage our managers to create a culture where employees feel that they are needed and missed if they aren’t there while knowing that they will be treated as valuable.”

– Matt Herridge

BK & Hershey Desserts: Delivering on a Sweet Opportunity

Desserts are becoming an increasingly important part of food-service menus. With innovations in flavor combinations and formats, consumers have more options to satisfy their sweet tooths. Hershey Foodservice helps operators make menu items irresistible with premium-quality ingredients.

With the rise of takeout and delivery over the last year, it’s important to leverage the power of impulse sales from desserts on your menu to ensure you’re not losing out on valuable dollars.

Some remarkable stats Hershey uncovered in its recent study of takeout and delivery are as follows:

• Across 10 leading national quick-service restaurant (QSR) chains, the growth of digital orders that include dessert is outpacing total digital order growth by 47%.

• Desserts boost average digital check orders by $6.

• And, desserts add a 29% lift to digital orders! 2

Operators who market desserts as an add-on, along with the possibility of bundling items, can also gain a step on their competitors. In fact, 60% of all consumers are likely to order dessert as an add-on, and 75% of millennials are likely to order dessert as an add-on1.

Portable desserts also lead to snacking occasions, and consumers enjoy desserts as a special treat. Take, for instance, this statistic from Technomic: Almost half of consumers order desserts for pickup or delivery because they want to treat themselves1.

It’s interesting to note that 61% of off-premise dessert orders are purchased for dinner, and 60% are ordered for lunch or an afternoon snack. Additionally, 56% of consumers order desserts

for pickup or delivery because they have a craving for something sweet1. There are so many opportunities to deliver on all the different need states for consumers seeking desserts!

Beverages also play a large role. For today’s younger consumer – the heaviest food-service users –beverage offerings are more likely to be a destination driver3. And consumers increasingly include beverages in their snack definitions (59%)4. They are versatile, portable and can be positioned to fit a variety of snack or meal replacement needs. Milkshakes are the perfect menu item to capture opportunistic sales from those consumers looking for a snack that fulfills the desire to take a break or treat themselves.

Bottom line? Desserts help drive overall sales, impulse sales and repeat traffic and create loyal consumers. Realizing the full potential of desserts on your menu, especially with the renewed focus on to-go and delivery, equates to incremental sales and repeat purchases for you!

Research

Check out http://hersheyfoodserviceinsights.com/deliveryandtakeout.html for more insights.

Sources:

1 Hershey Proprietary Research on Dessert Delivery and Takeout, Technomic Inc., 2021

2 Hershey Proprietary Research on Dessert Delivery and Takeout, Edison Trends, 2021

3 Beverage Consumer Trend Report, Technomic Inc., 2020

4 Snacking Occasion Consumer Trend Report, Technomic Inc., 2020

The Hershey Co. is a Sapphire partner member of the National Franchisee Association. The company may be reached at 630-724-7124 or www.thehersheycompany.com/foodservice.

Source: Hershey Proprietary Research on Dessert Delivery and Takeout, Technomic Inc., 2021

Source: Hershey Proprietary Research on Dessert Delivery and Takeout, Edison Trends, 2021

Source: Hershey Proprietary Research on Dessert Delivery and Takeout, Technomic Inc., 2021

Source: Hershey Proprietary

on Dessert Delivery and Takeout, Technomic Inc., 2021

Inflation Putting the SQUEEZE on Businesses

Agood news/bad news scenario has set up for restaurant owners in 2022. While the National Restaurant Association (NRA) projects that the restaurant industry will have all-time high sales of $898 billion in 2022 – rising for the first time above prepandemic 2019 sales – inflation in the U.S. economy will prevent restaurant profitability from seeing the same recovery.

In fact, higher menu prices caused by increases in the costs of labor, material and commodities account for some of the record sales projection. Adjusted for inflation, the sales number is 11.5% below 2019, according to the NRA in its 2022 State of the Restaurant Industry report.

The report also noted that 90% of restaurant operators say costs are up, and 80% say profits are lower.

The foothold taken by inflation in the U.S. economy was felt by restaurateurs halfway through last year. “We began noticing increases in mid-2021 as the labor market became more stressed and supply chain challenges were more frequent,” said franchisee Matt Herridge of Charton Management, with eight BURGER KING® locations in Ohio and West Virginia.

by SEAN IRELAND

“Early last summer, as we were bidding out the new BURGER KINGs we opened late in quarter three, it was apparent that

construction and material costs had increased significantly and continued to do so through the back half of 2021,” said CEO Luke Pisors of Ambrosia QSR, with 136 BURGER KING restaurants in Oregon and Washington. “By August, there were also significant supply chain disruptions, affecting product availability as well.”

The ongoing labor difficulties faced by restaurants, combined with the supply chain disruptions noted by Pisors, have hit restaurants, and much of the economy, with a one-two punch that ignited inflation to levels not seen since the late 1970s and early 1980s.

Wages and salaries for private industry workers increased 5% in 2021, according to the U.S. Bureau of Labor Statistics, and the cost of benefits increased 2.9% for the year. The trend is continuing in 2022.

Herridge said salaries are continuing to go up as his restaurants compete with others to hire from a limited pool of candidates and keep current team members from taking other jobs. In addition to boosting salaries, Charton Management also offers a $2 per hour bonus each pay period for team members who don’t miss a shift in that period.

Ambrosia QSR has also experienced a rapid increase in labor costs. “We’re in one of the highest-cost labor markets in the nation, with a minimum wage in Seattle, Washington, of $17.27 per hour,” Pisors said. “However, like much of the country, we found market forces pushing beyond the state minimums, even when they’re in the $13.50-$14.50 range currently. Our average hourly rate increased over $2.50 in the past few months alone.”

The additional costs of wages and benefits are one side of the inflation crunch. The other comes from increasing expenses for food and materials caused by shortages and increased shipping costs. The NRA noted in September that wholesale food prices had posted the highest 12-month increase since 1980. Among restaurant commodity prices, beef was up 60%, fats and oils up 50% and eggs up nearly 40%. The U.S. Department of Agriculture’s Consumer Price Index for Food indicated that all food prices were 6.3% higher at the end of the 2021 than they were in December 2020.

Operators have had little choice but to pass on increases to consumers. The Bureau of Labor Statistics reported that restaurant menu price inflation hit a nearly 40-year high in November. Limited-service restaurant prices rose 7.9% year over year.

On a call to discuss 2021 earnings in February, CEO José Cil of BK® parent company Restaurant Brands International Inc. discussed the challenge. “On pricing, we took price in 2021 at each of our brands, and given the level of commodity cost and labor inflation we’re seeing, we expect additional price increases in 2022 and are working closely with franchisees to make the best decision for guests and our franchisees’ P&Ls,” he said.

Herridge noted that Charton Management restaurants have increased menu prices, but how long they will continue to do that is an open question. “We have significantly raised prices over 2021,” he said. “It seems as if there may be some more room to do so since many guests still are receiving higher levels of expendable income via government largesse. When this ends however, there will likely be a need to hold.”

“We’ve taken some price increases, but we’re trying to stay below the industry pricing trend for two reasons,” Pisors said of Ambrosia QSR. “First, increased menu board prices can lead to more guests choosing discounted or value items, negating the value of the increase. Second, we’re challenged with traffic growth across the brand, and we have to be careful not to exacerbate that trend as

we deal with profitability issues.” Herridge also noted the delicate balance BK® restaurants are seeking. “We must find a way to bring guests to our restaurants outside of discounted food,” he said.

While sales are predicted to be up across the restaurant industry, inflation may keep profits depressed. January sales were up slightly in Charton Management’s restaurants, but profitability still dropped due to inflation. Pisors said sales at Ambrosia QSR have trended negatively against the prior year and against competitors in the industry.

That challenges restaurant teams to provide a guest experience that overcomes any of the pandemic’s challenges – be they longer waits because of labor shortages, supply chain kinks affecting the availability of menu items or inflation. In the experience of these two franchisee companies, there are complaints, but they are often made with an understanding that some problems are out of the restaurant’s hands.

“Guests currently understand the need for price increases in general,” Herridge said. “We have commiserated with the complaining guest as to the overall challenges brought about by the pandemic.”

“Guests have certainly been frustrated, whether by staff shortages or product outages,” Pisors said. “There are also many who are visibly appreciative to the team members who are working so hard in challenging circumstances.”

How long those circumstances will continue is difficult to predict, but according to the NRA’s State of the Restaurant Industry Report, restaurant owners are bracing for the challenges to last for months to come. “2022 for the restaurant industry will remain another year of transition, and the year is off to a pretty sober start,” said Hudson Riehle, senior vice president of the NRA’s research and knowledge group, in a story for CNBC. “When you survey restaurant operators, 76% across the country now say that business currently is worse than it was three months ago. It remains a fairly volatile and uncertain environment.” n

SEAN IRELAND is the NFA director of communications. You may reach Ireland at 678-797-5165 or seani@nfabk.org.

“Guests have certainly been frustrated, whether by staff shortages or product outages. There are also many who are visibly appreciative to the team members who are working so hard in challenging circumstances.”

Luke Pisors, CEO of Ambrosia QSR

RSI’s CFO Roundtable:

Building Long-Term Value Through Knowledge Sharing and Partnership

For nearly 30 years, ensuring supply at best cost has been the bedrock of RSI’s purpose and promise to our valued members. Equally as important is our longstanding commitment to finding new and innovative ways to build value and help improve restaurant profitability. In addition to leveraging the rich data and unique tools developed to support this area of focus, RSI established in early 2021 a CFO/Controller Roundtable (CCR) series – a forum for BURGER KING® franchisees and their finance leadership teams to meet periodically throughout the year and discuss relevant financial and business topics.

CCR discussions bring heightened awareness to new, upcoming and existing financial and tax rules, laws and regulations impacting the business; provide an environment that fosters collaborative discussion of industry best practices; and allow for like-minded professionals to network with peers. Led by RSI’s Chief Financial Officer Patrick Webster, this space is where executives are encouraged to candidly share and provide insight, perspective and knowledge in an open and interactive setting in hopes of developing and delivering strategic counsel that will benefit the system at large.

Participants vary from franchise owners and chief financial officers to certified public accounts and controllers, and they each contribute their perspectives, best practices and ideas freely to help create value for all attendees. “Since participating in the meetings, I have had the opportunity to more meaningfully connect with a broader group of my peers, including members from the RSI team and other finance executives across the BURGER KING® system. It has also reinforced and introduced relevant business, financial and industry insights that have helped to strengthen my organization. I look forward to more people joining the discussion and continuing to learn from the varying perspectives and points of views raised at the sessions,” said Tony Hull, chief financial officer of Carrols Restaurant Group, the largest BK® franchisee in the U.S.

RSI recognizes that only through close collaboration and open dialogue among key professionals can we identify the challenges impeding member profitability and, most importantly, the opportunities to address and overcome them.

If you would like to contribute your experience and participate in the CCR, please contact RSI’s Chief Financial Officer Patrick Webster at pwebster@rsilink.com or 305-529-2105. n

RSI Chief Financial Officer Patrick Webster leads the CFO/Controller Roundtable series.

BURGER KING FAMILY FUND: 2021 Year in Review

When tragedy strikes, the BURGER KINGSM Foundation acts quickly to assist our employees through the BURGER KING Family Fund, our emergency relief program. This is often a first line of defense to help ease the financial burden our team members face in these difficult times. In 2021 alone, the program awarded over $260,000 in grants to more than 150 families affected by COVID-19, natural disasters and other emergencies.

The BK Family Fund continues to operate thanks to the generosity of the BURGER KING® system. At the 2021 Foundation Gala in Las Vegas, our franchisees, vendor partners and leadership team came together to raise nearly $100,000 to ensure we can help any BK® employee in their time of need.

We were there for Alejandro Castro Leyva, a district manager from Sandy, Oregon, who contracted COVID-19 in 2020 and was hospitalized for over 299 days.

We were there for Delores Robinson, a crew trainer in Houma, Louisiana, whose home was ravaged with wind and water damage after Hurricane Ida devastated her hometown.

And we were there for Christopher Johnson, a team member in McDonald, Tennessee, who lost all his possessions and was left homeless after a house fire last year.

These are just some of the countless cases we receive and team members we’ve been able to help thanks to the support of

the BURGER KING system. Between the pandemic and an endless string of natural disasters, our employees need us now more than ever.

Please consider donating to the BK Family Fund at: www.burgerkingfoundation.org/ donate/. Every dollar makes a difference and will help us continue to award grants to struggling families.

• $60 can feed an employee for a week.

• $500 can cover a deductible or help with insurance costs after a hospital visit.

• $1,500 can help employees secure housing after a natural disaster.

• $4,500 can fund a full emergency relief grant.

The BK Family Fund stands ready to lend a helping hand. We encourage you to share this information with your employees affected by unforeseen hardship. BK employees can apply for a grant at www.familyfundbk.com. Please note that a sponsor and appropriate evidence are required. n

The BK Family Fund makes grants to BURGER KING team members across the U.S. when they face personal tragedy.

Could Your Business Benefit From a Cost Segregation Study?

Acost segregation study is a method of separating real property from land improvements and personal property to accelerate depreciation deductions. Or to put it simply, a cost segregation study can reduce your tax bill and improve your cash flow!

Commercial property is generally depreciated over 39 years, and residential rental property over 27.5 years. Real property is more than just the building itself – it also contains plumbing, fixtures, carpeting, awnings, removable partitions, window treatments, lighting, HVAC systems … you get the idea.

How much tax savings can a cost segregation study provide?

by STACY SMITH

Personal property, such as equipment, machinery, furniture and fixtures, is eligible for depreciation over either five or seven years. Land improvements like landscaping, sidewalks, dumpster enclosures, fences, outdoor lighting and parking lots are depreciable over 15 years. Certain building improvements can also qualify as personal property if their purpose serves a business function over and above the basic structure, such as reinforced flooring that supports heavy manufacturing equipment, enhanced electrical or plumbing required to run specialized equipment, or cooling equipment

for a data processing room.

needed

So rather than depreciating your building and its fixtures together over the life of the building, a cost segregation study allows you to front-load the depreciation on the items that can be split out, reducing your tax liability for those early years.

You can find a sample list comparing different asset lives specific to restaurant fixtures and equipment at www.irs.gov/businesses/cost-segregation-guide-chapter-72industry-specific-guidance-restaurants.

Whether a cost segregation study results in a reduction in your tax obligations depends on your facts and circumstances. But it can be a valuable investment, especially with enhancements to certain depreciationrelated tax breaks. The Tax Cuts and Jobs Act (TCJA) increased limits on Section 179, which allows the entire cost of qualifying equipment to be immediately deducted. The TCJA also expanded 15-year depreciation to include qualified improvement property instead of only qualified leasehold improvement, retail improvement and restaurant property. And it temporarily increased first year bonus depreciation to 100% instead of 50% through 2022.

When should you conduct a cost segregation study?

The best time to initiate a cost segregation study is at the time a building is purchased, constructed or undergoes a remodel. But if that’s not possible, you can conduct a look-back study in a future year. If a later study results in additional depreciation deductions, you won’t have to amend previous tax returns, as those deductions can be claimed on your next tax return.

It doesn’t make sense to conduct a cost segregation study if you don’t intend to hold onto the property for a longer period.

If you acquire a property upon which a cost segregation study has already been done, it’s still a good idea to conduct your own study because your circumstances may be different.

Scan this QR code to find a sample list comparing different asset lives specific to restaurant fixtures and equipment.

You only need to conduct a study once for a particular property unless you make significant improvements after it’s placed into service, such as a building addition or major remodeling project.

Who conducts the study?

We can assist you in determining whether conducting a cost segregation study makes sense for your business. It’s important to work with a qualified service provider with experience in conducting cost segregation studies. This is not a do-it-yourself project! The team can include both accountants and engineers to determine how building components should be classified. The process involves reviewing property records, appraisals, inspections, closing documents, project costs, construction drawings and blueprints and may include an on-site tour of the property.

The service provider will analyze tax law to support the classification of assets used in the study. A cost segregation study is subject to IRS audit, so it’s important to have supporting documentation for the deductions you’re claiming. A properly documented cost segregation study will resolve many IRS questions at the outset.

How much does a cost segregation study cost?

Fees for a study depend on a variety of factors, including the estimated time to conduct the study, the size, location of the property, the type of property, uniqueness of the building, type of business activity and complexity of the taxpayer’s situation.

Is there a downside to conducting a cost segregation analysis?

The two disadvantages are cost and time. The study is likely to cost thousands of dollars, which are hopefully recouped by the tax benefit resulting from the analysis. And it takes time for the service provider to review all the appropriate information, so expect the study to take four to eight weeks.

If you dispose of personal property after the study, you could incur depreciation recapture subject to ordinary income tax rates. And if your tax position is too aggressive, the IRS could assess penalties, which is why it’s important to use a qualified vendor to conduct the study with good backup documentation.

As always, consult your tax adviser.

Every situation is different, so visit with your tax professional to determine whether a cost segregation study makes sense for your business. The benefits can be substantial, so it’s worth considering! n

STACY SMITH, CPA, is a shareholder of Mize CPAs Inc. –a full-service accounting firm that provides the Elevanta Accounting & Payroll Solution for NFA members.

Teen Workers May Be One Solution to the Great Resignation

Where are the workers? I wish I knew. There are many theories, but none of them are completely satisfactory. While it might be intellectually interesting to know the “why” if you have the luxury of free time, the fact is that the Great Resignation has taken almost every employer by surprise; the hit on productivity and customer service is hard to bear.

With the continuing difficulty (inability?) of filling job vacancies, many employers have resorted to costly tactics, such as referral and sign-on bonuses, increased pay, enhanced benefits and foosball tables in the breakroom (well, OK, maybe not that, but more and better snacks and drinks are now common). Despite these efforts, finding, hiring and then retaining employees is harder than ever. This reality is confounding because the so-called labor participation rate (the percentage of individuals of working age who are working or actively looking for work) is still below pre-pandemic rates as

of January and well below the average since 2000.

While the “why” behind the shortage of workers may be unclear, the impact is unavoidable. So what to do when individuals are not looking to work even when offered good pay and benefits? One response is to take a second look at hiring teens under 18 years old. In fact, according to a report from the U.S. Bureau of Labor Statistics (BLS) last fall, the labor participation rate for workers 16-19 is only slightly more than half the overall rate and still much lower than the rates preceding the 2008 economic downturn. That is, there is an even larger pool of untapped labor that employers (particularly readers of this magazine) could target for recruitment

by DOUGLAS H. DUERR

to fill job vacancies.

At this point, you might be thinking to yourself something like, “Aren’t there reasons why I decided some time ago not to hire younger workers?” All sorts of rules come with teens depending upon their age. That’s why you may have decided “no one under 18.”

Yes, there are some rules that come with workers under 18, but it may now be time to take a new look at those burdens and the costs associated with the positions you cannot fill. There is an untapped pool of workers who could help fill some of the gaps driving those signs that offer some variation of: “We are not fully staffed, so sorry for the poor customer service. Please do not get angry.”

What are the rules and burdens? Both state and federal laws govern the hours or work and occupations (i.e., tasks) for employees under 18. Generally, limitations on the hours of work only apply to those 15 (as well as significant limitations on tasks) and younger and fall away once a teen reaches 16 years of age. Once a teen reaches 16, the only limitations that typically apply relate to safety (e.g., no driving, no use of power-driven bakery machines, compactors, balers, etc.). It is typically not practicable to hire anyone younger than 14. For a general overview of the federal requirements, this link directs you to helpful information: www.dol.gov/agencies/whd/youthrules/employers.

While the rules and burdens of hiring a teen are generally lower once the teen turns 16, for those reading this magazine, it is important that you follow the rules for obtaining certification of the teen’s age as prescribed by state law. As with many laws governing interactions with those under 18, a good-faith belief that the teen is 14 or 16 is not enough. While in most instances, the burden for obtaining a work permit can be largely borne by the worker with little input from the employer, it is critical that a work

permit (or certificate) is obtained when employing anyone under 18. That burden, however, particularly if hiring a teen at least 16 years old, should be more than offset by the benefit of filling the vacant position.

While for most readers of this magazine, hiring a worker 16 or older could be very beneficial, one thing to keep in mind is the issue of harassment, particularly sexual harassment. Significantly, the concerns here are the same for workers who are 18, 19, 20, etc. Many young workers, not just teen workers, (including their young supervisors and managers) do not have even a basic understanding of the rules and boundaries governing conduct in the workplace. It is imperative that all young employees, particularly supervisors and managers, be well educated on issues of harassment, including examples of what conduct (particularly sexual jokes, requests for dates and touching) is not permitted. They also need to understand, which is sometimes particularly difficult for supervisors to grasp, that the limitations apply outside of work when interacting with co-workers and subordinates.

Teen workers represent a large pool of potential workers to fill those vacancies that are hard (or impossible) to fill with those who are at least 18. While there are some additional burdens that come with hiring workers younger than 18, those burdens are greatly lessened for those workers who are 16-17 years old. Thus, the time may be right to re-examine your recruitment program. n

DOUGLAS H. DUERR is a partner at Elarbee Thompson, a national labor and employment law firm with an industry practice area focused on franchisees. Learn more at www.elarbeethompson.com.

The Front Line EQUALS the Bottom Line

Most of us have heard the expression, “The front line is the bottom line,” as it pertains to a company’s employees. It means that as far as the customer is concerned, a company’s front-line employees are the company. After all, rarely do customers have contact with an organization’s executives.

Those front-line employees are truly the face of the organization. But as leaders, do we perform in a way that is consistent with the front line equals bottom line philosophy? In many cases, I think the answer is no.

LESSONS LEARNED FROM COVID-19

It’s hard for me to think of a better example of the front line equals the bottom line philosophy than what we are all experiencing right now. Businesses of all kinds find themselves struggling to find front-line workers. Just over the past few months, I’ve lost count of how many times I’ve pulled up to a drive-thru restaurant only to find it closed or the employees completely overwhelmed because they don’t have enough staff to manage their customers.

Business owners that I talk with are now having to get behind the counter to serve customers themselves because one of their remaining employees called in sick, and there is no one else to fill in for them.

Front-line staff in hotels are being asked to pick up the slack after several of their co-workers were furloughed and not brought back because management felt they could do without them and meet their guests’ minimum needs. This has placed an enormous strain on staff members and employee burnout is becoming a significant problem.

It’s not hard to see how truly important the front-line staff is for any business.

WHY FRONT-LINE EMPLOYEES ARE CRITICAL FOR BUSINESS

I was pondering this issue a while back while I sat eating in a TGI Fridays restaurant. As I was observing the employees, the

reality of the situation hit me. These servers, bus boys, etc., are the most important people in the company. I knew this intellectually (I’ve talked about it for years), but the truth of it hit me at that moment.

These employees are typically the lowest paid in the organization, treated as expendable, often treated in a condescending manner, and yet they are the most important people in the company. If these employees fail in their duties, it makes no difference how smart the senior vice president of marketing is. The transaction between the customer and the company (the front-line employee) can so easily crash and burn.

by DENNIS SNOW

This is true in restaurants, hospitals, banks, grocery stores or any other industry/organization. Executives can call in sick, but if the truck drivers for a distribution center don’t show up one day, now there is a situation. When they do their jobs with pride and enthusiasm, the likelihood of company success is exponentially increased. When they do their jobs with boredom and skepticism, the greatest technology systems in the world won’t help.

HOW TO TREAT YOUR FRONT-LINE EMPLOYEES

We should treat our front-line employees like the stars they are. We should honor them for the work they do because they are the ones that make the world turn. All our strategies, visions and corporate goals are only as good as the execution of those plans, and execution ultimately comes down to front-line people doing things. Theirs is the most honest work of all.

The customer was either happy, or she wasn’t. The delivery either happened on time, or it did not. The cooler was either stocked or not. The food was either hot, or it was not. The front line doesn’t need a report in a binder to know how things are going. The score is real time for them.

THE FRONT LINE IS THE BOTTOM LINE LESSONS

I think what is missing in business today is knowing the importance of the front line at a gut level. Most of us know that we should say the front line is the bottom line, but I don’t think it often shines through in our actions. If it did, we would be having pizza parties regularly, pitching in to help when things are busy and taking employees to lunch regularly to ask what can be improved. We would hold celebrations all the time. We would say thank you at every opportunity.

Think about those times in your personal life when you were grateful for something that someone did. I mean truly grateful. Remember how sincere and heartfelt your appreciation was toward that person? Can you remember the last time you showed that level of appreciation to an employee or group of employees in your organization?

The need to be appreciated is one of the strongest needs of all. When employees work hard all day, doing the real work of the company, being treated with honor isn’t too much to ask.

Having a lavish holiday party for the executive team while giving me a $2 tree ornament says something about how you feel about my contributions. Walking by the reception desk, the loading dock or the stockroom without acknowledging employees, taking a moment to see how things are going or just saying thanks are all behaviors that tell employees what management really thinks. Is it any wonder that turnover in front-line positions is so ridiculously high?

RECOGNITION: THE IMPORTANCE OF SAYING ‘ THANK YOU’

When my wife and I were both working, we had a housekeeper, Val, who cleaned our house once a week. She was truly an

excellent housekeeper and would clean even the hardest-to-reach areas. Debbie, my wife, sincerely appreciated the extra effort and would always show her appreciation. My wife and Val became good friends. One time Val mentioned that although she cleaned a lot of houses, Debbie was the only one who appreciated those extra touches and actually showed appreciation.

What is important to note is that Debbie didn’t say thank you to get Val to do the extras. Debbie thanked Val because she did the extras. Val, however, said that she wanted to do more because of the appreciation. It was simply a sincere cycle of performance and appreciation. Saying thank you and recognizing the people who work hard is simply the right thing to do. And usually when we do the right thing, we get the right thing in return. Not always, but usually.

You know who the front-line employees are in your own organization. I challenge you to take a hard look at the level of appreciation that you show to those front-line employees. Do they know that you appreciate them? How do they know that you appreciate them? n

DENNIS SNOW is the president of Snow & Associates Inc. Dennis worked with The Walt Disney Co. for 20 years and now consults with organizations around the world, helping them achieve their customer service goals. He is the author of “Unleashing Excellence: The Complete Guide to Ultimate Customer Service” and “Lessons From the Mouse: A Guide for Applying Disney World’s Secrets of Success to Your Organization, Your Career, and Your Life.” You can reach Snow at 407-294-1855 or visit his website at www.snowassociates.com. Everything good begins with a seed. A

The Real Value of Reverence in Relationship

The Real Value of Reverence in Relationship

Reverence is a dignified word.

Since I’m a self-professed non-fancy word kind of guy, I had to look it up. It sounded so, well, fancy to me. This time I like the Merriam-Webster definition better than anything I could have come up with. The definition of reverence is “respect felt or shown.”

I love that. It’s so simple. Success in relationships comes down to respect that goes both ways. Respect that you feel coming from the other person, and respect you show to the other person. The enormous value of reverence is true in marriages, friendships, families, communities and work relationships. Rather than trying to break respect down into seven easy-to-remember steps, I’m just going to share with you one remarkable example of reverence in my life.

Jeff Hutchison (Hutch)

I met Hutch in 1978 when we were 15-year-old sophomores in Mr. Calacci’s World Cultures class. We sat right next to each other. Hit it off from day one. He’s been my best buddy for 43 years.

In high school Hutch was already a salesman extraordinaire. He went on to have a fabulous career in sales as a salesperson and mainly as a sales executive. He’s worked for Proctor & Gamble,

Brach’s Candy, Boston Scientific, Medtronic, Motus GI and a few other great companies. He’s lived in Texas, Minneapolis, Chicago, and Nashville.

I was an aspiring teacher when we met. In the summers I worked at camps for grade school kids, and then went on to be a high school math teacher, soccer coach, and then an executive coach and seminar leader. I lived in Indiana, Chicago and St. Louis.

by DAN COUGHLIN

Since 1981 we went to different colleges, lived in different cities and worked in different industries. Hutch has three children and I have two children, and they are all in their 20s. Our personal and professional lives never overlapped, except for three magical weeks in 1989 when we lived together in Chicago as he was moving to Chicago, and I was moving out.

And yet somehow we have managed to talk at least once every other week for 43 years.

Hutch has been married to Jean for 32 years, and I’ve been married to Barb for 25 years.

Last weekend for the first time ever, the four of us spent a weekend together in Nashville without anyone else. And we had a blast for three days. It was as if we were together all the time.

What’s the Secret?

How in the world have Hutch and I been able to maintain such a high-quality friendship over the past five decades? It all comes down to that fancy word: reverence.

• We consistently have shown respect to each other and felt respect from each other.

• We know every dream the other person has aspired after, and we’ve respectfully cheered each other on.

• We know each other’s successes and failures.

• We have respectfully given each other mountains of advice, and we have each received the advice in a respectful way.

• We have respectfully been supportive of the other person’s children and their efforts.

• We listen respectfully to each other and apologize when we make a mistake.

• We still occasionally hand write respectful letters of encouragement to each other.

• We look forward to our next respectful conversation. Imagine if every relationship in our lives was filled with reverence. What would our work lives be like? What would our families, our communities, our politics and our world be like if we could all value reverence as a top priority?

Reverence for Life

In 1993 a slim book called “Reverence for Life” was published, and a second edition came out in 2016. This is a collection of statements from Albert Schweitzer, the famous jungle doctor, that were culled from more than 50 years of his writings. “Reverence for Life” was the core philosophy of Schweitzer, who lived from 1875-1965. This little book is filled with powerful statements about the importance of reverence in relationships.

Here is a quote from page 9, which Schweitzer first said in an interview in 1959: “When we are truly filled with the idea of Reverence for Life, all our attitudes, thinking, actions change. We must go deep into ourselves to find inspiration. If we turn within, pondering our duty in this world in silence and act to move toward this goal, a change will come about. There are many opportunities to prove that we live in the spirit of the philosophy of Reverence for Life.” n

Since 1998, DAN COUGHLIN has worked with seriousminded leaders and executives to consistently deliver excellence. He provides executive coaching, leadership and executive development group coaching programs and seminars to improve leadership and management performance. His topics are personal effectiveness, interpersonal effectiveness, leadership, teamwork and management. Visit his free Business Performance Idea Center at www.thecoughlincompany.com.

“If we turn within, pondering our duty in this world in silence and act to move toward this goal, a change will come about.”

– Albert Schweitzer, author of “Reverence for Life”

The Benefits of Coaching: Six Ways It Can Boost Productivity

Business experts often cite coaching as an effective way of enabling employees by making sure they embrace their jobs and maximize performance. By coaching, I don’t mean those all-hands-on-deck motivational sessions where a celebrity or high-powered speaker (like me!) delivers a keynote address aimed at improving solidarity or general productivity. Those have their place but count as coaching only in the most general sense.

Coaching isn’t the same as an annual evaluation though some coaching may take place during the evaluation. It isn’t mentoring, because that usually doesn’t involve a manager. Nor is training, another essential, the same as coaching. True coaching involves one-on-one, informal face time between a manager and his or her direct report, in which both parties discuss what the employee needs to do, learn or become to boost his or her performance. Coaching is rarely a one-time thing, or a merely annual event like an evaluation. The manager has the responsibility of checking in with each direct report on a regular basis to see if their team member needs more attention, using the opportunity to improve not just the individual, but the team as well.

Here are just a few reasons why coaching can help direct reports boost their productivity:

1 It’s compassionate. If nothing else, coaching proves that management cares about the worker, their well being and their abilities. Sure, it’s all about making them work better in the context of the office, but it can improve their lives overall if undertaken properly. Warning: Without some level of emotional investiture by the manager, it rings hollow.

by LAURA STACK

2 It addresses sensitive issues in a safe place. The manager and employee talk things over in a private space, where the employee can discuss their issues as well as the manager. No one but those involved knows what they discussed. It takes place during a scheduled round of interviews when all the manager’s direct reports receive individual coaching, so it doesn’t seem like the employee is “called to the office” for poor performance, even if that’s the case.

3

Coaching improves motivation and job satisfaction, resulting in employee engagement and ownership of their jobs. The best coaching inspires and boosts confidence, because it concerns not just what the employee is doing wrong, but also what they’re doing right.

“Coaching isn’t therapy. It’s product development, with you as the product.”

– Fast Company magazine

4

Good coaching helps an employee discover and manage strengths and weaknesses. This leads to attempts to maximize strengths and improve weaknesses (if worthwhile), while also overcoming obstacles and challenges. It also sets goals or benchmarks for the employee to strive for, and teaches them to stay on task, helping them improve their time management and fostering problem-solving skills.

5

It provides a deeper level of perspective and personal awareness to the employee moving forward.

people who never have. In the hustle to produce, and the long hours that prevailed after the tech bubble popped and the Great Recession overwhelmed us, it fell out of favor, possibly because managers felt they didn’t have the time or resources to do it properly.

Later, millennials moving into managerial and executive positions failed to continue the practice simply because they didn’t know or think about it. I fear coaching as a corporate practice may be on its last legs due to the lingering COVID-19 pandemic, during which face-to-face meetings have been avoided like, well, the plague.

6

It helps them improve communication skills, at least between the employee and the manager, and ideally between them and all team members. Among other things, this promotes more effective teams with stronger bonds built on meaningful connections.

All these factors can increase personal performance if the direct report takes them to heart and the manager follows up regularly. The latter point is where coaching often fails … if it’s tried at all.

Whither Coaching?

Coaching in the enlightened workplace can result in better training; better integration of the worker into the team; the worker buying into the vision and goals of team and organization; finding better ways to communicate; and providing a deeper perspective of themselves and the organization. It must occur at least quarterly to really work.

But how often is coaching practiced? You may have noticed that I haven’t written much about coaching previously in this blog. That’s because it seems to be dying out, despite its importance. Think about it: How often have you experienced coaching? I know

I believe it’s time to start reemphasizing coaching in the corporate environment again. What do you think? n

LAURA STACK, MBA, CSP, CPAE is an award-winning keynote speaker, bestselling author, and noted authority on employee and team productivity. She is the president of The Productivity Pro Inc., a company dedicated to helping leaders increase workplace performance in high-stress environments. Stack has authored eight books, including “FASTER TOGETHER: Accelerating Your Team’s Productivity” (Berrett-Koehler 2018). She is a past president of the National Speakers Association, and a member of its exclusive Speaker Hall of Fame (with fewer than 175 members worldwide). Stack’s clients include Cisco Systems, Walmart and Bank of America, and she has been featured on the CBS Early Show and CNN, and in The New York Times. To have Laura Stack speak at an upcoming meeting or event, call 303-471-7401.

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