Flame 2022, Issue 2

Patrick Sidhu: NFA Mourns Valued Franchisee

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

Jared Johnsen Associate Editor jaredj@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

Tom Garrett

METRO NEW YORK

Amir Syed

MID-ATLANTIC

Gary Andrzejewski

MID SOUTH

Kevin Newell

Mike Callahan

Kevin Fernandez

Larry Stokes II

MINORITY FRANCHISEE ASSOCIATION

Camille Lee-Johnson

MOUNTAIN

Amir Allison NEW ENGLAND

Brek Kohler SOUTHERN CALIFORNIA

Shirley Humerian

SOUTHWEST

Michael Laird

C.J. Timoney

TABLE OF CONTENTS

2022 Issue 2

BK Legacy by Jared Johnsen, NFA communications specialist

24 Patrick Sidhu: NFA Mourns Valued Franchisee by Sean Ireland, NFA director of communications

27 The Times They Are A-Changing: The Case for Upgrading to Modern Restaurant Technologies contributed by Xenial

28 2022 NFA LEAD Conference Strengthens BK Leaders by LEADing People Tomorrow

36 2022 Day on the Hill Brings Issues to Life for Franchisees on Capitol Hill

40 Meet the NFA Restaurant Operations Council

44 Enhancing Business Performance With RSI’s Profit & Loss Tool contributed by RSI

46 Celebrating the Class of 2022: Over $4.6M in BURGER KING Foundation Scholarships Awarded contributed by the BURGER KINGSM Foundation

48 Be Aware of These Three Sales Tax Pitfalls for Restaurants by Stacy Smith, Mize CPAs Inc.

50 Cyber Liability Risks Restaurant Owners Face contributed by Lockton Cos.

52 FP Flash Survey Reveals: West Coast Workplace Litigation Explosion May Soon Spread Across Country by Andria Ryan and Hagood Tighe, Fisher Phillips

54 Service Vs. Hospitality – The “Be Our Guest” Attitude by Dennis Snow, Snow & Associates Inc.

56 The First Act in Leadership – Clarifying the Quest by Dan Coughlin, The Coughlin Co.

58 Upskilling: Four Simple Steps Toward Upgrading Your Work by Laura Stack, The Productivity Pro®

Nation’s Turmoil Increases Importance of Upcoming Convention

It is hard to imagine, but you cannot ignore the calendar as we are well past the halfway point of the calendar year. Summer is speeding by, and the fall is fast approaching. Accordingly, I thought it would be timely to comment on several issues.

It seems like the economy is top of mind for everyone. It has been many years since hyperinflation has been visited upon our national economy, and it is clearly back with a vengeance. Hyperinflation and a contracting economy do not bode well for our country nor our businesses. Clearly world events are influencing economic matters here at home, but it is also clear that misplaced political agendas are causing even more calamity that is not only unfortunate but avoidable.

We need look no further than our own profit and loss statements to see the debilitating effect of cost increases. Moreover, there is evidence that consumers are becoming more frugal and value conscious as expenses have increased and wages have not kept pace.

Beyond the cost pressures, we are now beginning to see the negative impacts of a general rise in interest rates. These rate increases affect all our consumers, who have home mortgages, car loans, credit card charges, etc. They affect our borrowing costs as franchisees as well.

All of this describes nervous times for business owners. The question that the BURGER KING® system faces is how we will react to not only these financial pressures, but also our positioning as a competitive brand.

This leads me to my next subject, which is the plans for the BURGER KING brand. Tom Curtis and his leadership team at Burger King Corp. (BKC) have engaged representatives of the National Franchisee Association (NFA) to work collaboratively on a modified positioning of the brand, a multiple-year business strategy and a jump start for the brand. The byproduct of all this work will be presented at this year’s BKC Convention, planned for Sept. 7-9, at the Mandalay Bay Resort and Casino in Las Vegas, Nevada.

For many of us who have been to conventions for years or decades, the convention can sometimes seem to be a

necessary exercise. I suggest that this year’s convention should engender heightened interest as the brand recalibrates on all fronts.

It is critical that you – as a franchisee –understand what the brand’s future for the next few years is. We know that the business has been under some duress, and that the cost increases that I described do not help.

What is important is what we are going to do next – both as a brand and in our individual businesses. Without too much flair for the dramatic, let me just say that this year’s convention could be one of the more important ones that we have had for quite some time.

I encourage you to review the information provided by BKC to sign up for the convention and to earnestly consider bringing more senior leaders of your organization than you otherwise might, particularly during these challenging times. We have requested that BKC make the registration fees as low as possible to prevent them from being an attendance barrier for key leaders. It is my earnest hope that this will be a worthwhile use of your time and resources.

The next item I want to bring to everyone’s attention is the upcoming national mid-term elections for Congress. As you are aware, most Americans think our country is on the wrong track. Considering this, it is incumbent upon each of us to change that track by electing leadership that will make every effort to bring sound thinking and decision making to Congress. There are 435 House seats and nearly one-third of the Senate up for grabs. It is important that you contact legislative candidates and support them financially as best you can.

The BURGER KING Franchisee Political Action Committee (PAC) is one way you can be involved. The PAC, with your help, supports candidates in particularly tight races that will affect the balance of power in Congress. The goal has been and remains that we raise $100 per restaurant. As but one example, with 10 BK® restaurants, just $1,000 would not only fulfill a minimum investment per restaurant but also give the BURGER KING Franchisee PAC flexibility to support

candidates whose interests and policies align with the best interests of our brand and business.

As I like to remind everyone, the success of our business is a family affair.

The success of my business and yours directly correlates to the financial success that our families will enjoy. I ask everyone to carefully consider your participation in the PAC. It’s not too late, and the BURGER KING PAC would welcome your support and involvement.

by DAN

Next, I want to take an opportunity to congratulate our NFA team, which recently received an APEX Award of Excellence in the “Magazines, Journals and Tabloids-Print” category for Issue 2 of Flame magazine in 2021. There is significant work that goes into the production of each issue. Our team, led by Sean Ireland, has done an outstanding job, and this recognition reflects the quality of our publication. Your NFA is doing terrific work, and I hope you are as proud as I am of the achievements of our team.

Finally, you will find in this edition a look at the life of Patrick Sidhu. Many of you knew him as an aggressive franchisee who expanded his holdings in the BURGER KING brand from a handful of restaurants to become one of the largest BK® franchisee organizations in North America, with nearly 200 restaurants. Patrick’s untimely passing is clearly a blow to his family and organization. He was a longtime board member of the NFA and a member of various councils.

However, I will remember Patrick as one of the most generous franchisees I have been privileged to know. Patrick was a significant contributor to the BURGER KING Foundation and to a host of organizations in his communities. It is often said that one’s generosity is a true measure of a person. In Patrick’s case, that measure looms large, and he will be greatly missed.

Patrick Sidhu, may he rest in peace.

W H O S H O U L D A T T E N D ?

F r a n c h i s e e s

A b o v e R e s t a u r a n t L e a d e r s

S y s t e m S u p p l i e r s

FROM

Beloved NFA Members Leave Important Legacy for Today’s Franchisees

WhenI first reviewed the content for this issue of Flame, my initial reaction was one of sadness and sorrow. This issue covers so many wonderful accomplishments of NFA members and recaps yet another successful National Franchisee Association (NFA) LEAD Conference, yet it also pays tribute to members of the BURGER KING® franchisee family that we’ve lost in recent months.

As I read through their stories and reflected on my experiences with each of them, I found so much joy in recalling how they impacted the franchisee community and NFA. The BURGER KING franchisee community is truly a special group that comes together during the good and bad times. Over the careers of Richard Kostel, Patrick Sidhu and Mac Mohiuddin, they all three certainly experienced the ups and downs of the business. Yet, all three contributed to the NFA, their regional associations, the local communities and certainly to their employees – not only when the business was performing well, but more importantly, when hardships arose.

Richard Kostel was one of the biggest supporters of NFA that I have witnessed in my time with the organization. Rich, as he was known to everyone, may not have been on the national board of directors or leading committees, but he was a quiet, behind-the-scenes supporter. I heard from Rich several times a year, always praising the organization or expressing his appreciation for NFA initiatives or for new benefits the health insurance program provided. His company was a health plan participant for 19 years! Rich always spoke of his wife, Gee, and the entire NFA/Elevanta staff was heartbroken when he informed us of her death in 2021. Rich was rare and will be missed.

Mac Mohiuddin’s story and history in the BK® system are inspirational and heartwarming. Mac was a staunch, yet

quiet supporter of the NFA. He was particularly supportive over the years of our advocacy efforts in Washington, D.C. Considering Mac’s family history of immigrating to the U.S. to achieve the American dream, his involvement in the political process seeking to improve the legislative landscape for all business owners is particularly impressive. With today’s societal problems, including labor challenges, racial tensions, etc., one could learn a lot from Mr. Mohiuddin’s perseverance and success amid challenges and obstacles most of us would never dream of facing.

Finally, is Patrick Sidhu. One word – shocked! That’s how the entire BURGER KING community felt when we heard the news of Patrick’s untimely death. Patrick was one of a kind. His story of working his way through the ranks to become one of the most successful franchisees in the country, not just in BURGER KING, is admirable. Patrick was a fierce advocate for franchisees and represented large franchisees on the NFA Board of Directors for many years. Patrick’s two children are almost the exact same age as my two, and I enjoyed sharing our experiences, both good and challenging, as parents. Several years ago, I joined Georgia and Alabama franchisees for visits to Capitol Hill during our NFA Government Relations Summit in Washington, D.C. To say that I was impressed is an understatement. Patrick knew everything about the local communities of his restaurants. He related statistic after statistic to the legislative representatives, and you could feel his passion for doing what was right for his employees and the local communities he served.

Losing these franchisees is certainly a loss to their families, friends and loved ones. It is a loss to the NFA and BURGER KING community. All three persevered in the good and bad times, growing successful

by CHRISTY WILLIAMS

family businesses while supporting the franchisee community. We can learn a lot from each of them – most importantly, how to give back.

As we continue to navigate what seems like never-ending obstacles from the pandemic, now in the form of supply chain, inflation and labor challenges, we must stay the course and get engaged with local associations, the NFA and fellow franchisees and persevere!

The NFA’s membership has changed drastically. There are no longer 900-plus franchisees but just 300-plus. That means we need franchisees to step up, advocate, support the NFA, support NFA’s member services through Elevanta, donate to the BURGER KING Franchisee PAC and carry on the legacy that franchisees before you, like Rich, Mac and Patrick, helped to establish. The NFA BK system is strong, but it can only remain this way with the support and participation of each of YOU! I implore you to reach out to me or your regional association president today to discuss how you can get involved and carry on this great legacy! n

QDI Celebrates Big Wins and Bright Future With Midwest Team

Where can you find a bear, baseball and a BURGER KING® cookie? Earlier this year, all three were at Four Winds Field (home of the South Bend Cubs, a Chicago Cubs minor league affiliate) with the entire Quality Dining Inc. (QDI) Midwest leadership team – including region managers, district managers and senior restaurant managers.

Led by QDI Chairman and CEO Dan Fitzpatrick and QDI Operations Leader CJ Fitzpatrick, the team took a hard look at the pressures of the current environment, mapped out a strategy to get back to the basics and shared QDI’s plan to continue to invest in the future through team member training and continued restaurant upgrades.

“It is more important now than ever for our teams to know we stand by them, and we understand the environment in which they are working every day,” said CJ Fitzpatrick. “They need to hear from us face-to-face. It is also imperative for them to understand our plan for the future.”

The South Bend Cubs team mascot welcomed the QDI leadership team into the ballpark and posed for photo opportunities. QDI concluded the day-long meeting with awards marking years of service with BK® and QDI.

“We had more than 880 years of experience representing 37 of our restaurants in one room. That’s amazing!” said Dan Fitzpatrick, who also chairs the National Franchisee Association. “When you call out those individuals and thank them for their service, it really does help them feel valued. Thank you goes a long way.”

Dan proved his point to the QDI team when he asked the South Bend Cubs kitchen and catering staff to stop by the meeting room after lunch. He thanked the team and told them every person in the room

understands what it takes to do what they do because “that’s what we do too, we’re in the restaurant business, and we appreciate you.”

At the end of the day, attendees were asked to fill out a brief, anonymous survey with their feedback from the meeting before departing with a goodie bag that included custom-made cookies that depicted the BK logo and a WHOPPER®.

“If we stand up and talk at a group of our team members without being genuinely interested in their feedback and takeaways, we miss the mark,” explained CJ Fitzpatrick. “This has to be a two-way conversation. What parts of the gathering did they love? How can we improve? What did we not discuss that they wish we would have? I personally read the survey results within an hour of the end of that meeting, then send an email to summarize the feedback and let our team know how much we value the input. That matters.”

The South Bend Cubs host the entire Quality Dining Inc. Midwest leadership team for a leadership event.

Quality Dining Inc. Operations Leader CJ Fitzpatrick speaks to the company’s managers as part of the program.

GPS Hospitality Awards $213,000 in BURGER KING Foundation Scholarships

GPS Hospitality, a rapidly growing franchisee with over 400 BURGER KING® restaurants, announced it will award the BURGER KINGSM Foundation scholarships to 213 students in 13 states in the 2022 graduation season.

Since 2013, GPS Hospitality has supported 1,601 scholars in totaling nearly $1.6 million in giving. Scholarships are awarded to graduating high school seniors based on their grade point average and the impact the applicants have on their schools and communities through volunteerism and work experience.

BURGER KING employees and their family members pursuing a traditional post-secondary education or enrichment programs are also eligible to apply. This year’s 213 winners include 30 employees and 183 seniors in GPS Hospitality’s local communities. The BURGER KINGSM Foundation scholarships are a community effort funded completely through guest donations at local restaurants. Through 2021, the BURGER KING Scholars program awarded nearly $55 million in scholarships.

“We are passionate about making a positive, local impact,” said

Michael Lippert, president of GPS Hospitality. “I am proud of our team members who drive in-store donations that support the BURGER KINGSM Foundation Scholarship program. Not only is it rewarding to be able to support students and employees in continuing their education but also to see the impact our team members and guests are making together in cities across the country.”

The BURGER KINGSM Foundation Scholarship program is the BURGER KINGSM Foundation’s flagship program, established to honor the legacy of the BURGER KING brand’s co-founder James W. McLamore, whose commitment to philanthropy and education made him a pillar of community service throughout his lifetime. n

Michael Lippert, GPS Hospitality

Retired Franchisee Earns Lifetime Achievement Award for Contributions to Service Members

Little did Mike DeRosa know that flipping through a magazine would result in the lives of countless soldiers and their families being changed for the better.

DeRosa, now a retired BURGER KING® franchisee, raised over $6.6 million through his campaign for the Veterans of Foreign Wars’ (VFW) Unmet Needs program, a service for active-duty soldiers, veterans and their families that provides funds to assist them with basic living necessities.

Starting in 2007, he began raising money at his 12 BK® restaurants. He introduced the program to other franchisees and quickly gained traction, spreading the effort throughout the U.S. For his work and dedication to the program, the VFW bestowed DeRosa with a lifetime achievement award last year.

DeRosa’s inspiration to help this cause came from a VFW magazine advertisement. The ad portrayed a woman holding a baby as she faced out a doorway.

“When he’s away, who takes care of them?” the ad read.

After seeing the ad, DeRosa noticed the problem everywhere. He would hear stories from his co-workers and employees about how their significant others were deployed overseas and the struggles that came with it. Fueled by the love of his country and his family, DeRosa knew he wanted to help.

“My daughter told me I was going to be a grandfather for the very first time and that really just tugged at my heart,” DeRosa said. “If my son-in-law were to ever get deployed, I don’t know where my daughter and grandson would get income.”

Fundraising began shortly after he saw the advertisement. Partnering with other members in the Mid-America BURGER KING Franchisee Association, his idea was to award anyone who donated to the program with a slip that the donor could sign and hang on the wall of that respective BURGER KING.

Customers returning to the restaurant after donating were given coupons. With some sponsored by Dr Pepper, the coupons offered a complimentary food item such as an ice cream cone, sandwich, soft drink, etc.

His first fundraiser raised about $107,000. Grateful for his efforts, the VFW soon after made him a part of its board of directors.

His efforts did not cease at fundraising. DeRosa traveled the U.S. to speak about the VFW to other franchisees. He eventually gathered around 1,000 stores around the country to host fundraisers for the Unmet Needs program.

In 2021, he was honored with a lifetime achievement award for his efforts for the organization and the $6.6 million he raised throughout the years. The honor was presented to him at a board of directors meeting by the VFW’s national commander in chief.

Presently, DeRosa is enjoying his stress-free retirement. He recently purchased a winter home in Arizona and spends his time on wife-assigned landscaping projects. He plans to continue his involvement with the VFW through his ongoing position on the board directors and speaking at events.

“I may be retired, but I am as active as I can be in the VFW,” DeRosa said. “I’m still there if any BURGER KING franchisee ever needs me.”

To make a contribution to the Unmet Needs Program, visit: https://vfwauxiliary.org.

For more information, contact Mike DeRosa at mike_d_bk@msn.com or call 715-379-0471. n

Mike DeRosa speaks on behalf of the Veterans of Foreign Wars Unmet Needs program at the 2022 NFA LEAD Conference in Las Vegas, Nevada.

BK Franchisee Improves Community With Fifth Restaurant

The opening of any restaurant can be exciting for the community. However, for BK® franchisee FPS Inc., this meant making the area a better place.

BK No. 29927 was opened by owner Stan Paulauskas on Feb. 11, in Springfield, Massachusetts. The grand opening of this restaurant was a splendid event and included the attendance of a group from the Springfield Thunderbirds ice hockey team, representatives from the city of Springfield and Matt Sparks, a member of Honor Flight.

Honor Flight is a nonprofit devoted to honoring veterans by transporting them to the memorials of the respective wars in which they fought. Paulauskas has been involved with Honor Flight for a few years and decided to give back to the organization with a donation at the event.

“There is nothing better than doing everything possible for the past and present needs of the men and women who sacrificed so much so we can all be free,” Paulauskas said.

This is the fifth restaurant Paulauskas has opened in Springfield. Mayor Domenic Sarno spoke at the grand opening and commended him for his contribution to the local economy and bringing jobs to the community.

A unique feature of this BK is its community room. Not only does the space serve as a training area for employees, but it also gives businesses and residents in the community a gathering place.

After being a franchise owner for 41 years, Paulauskas believes in the future of BURGER KING® through its ups and downs. “Run consistent operations with a focus on guest satisfaction,” Paulauskas said. “Invest in your people and create the right culture in the restaurant.” n

The staff of BURGER KING No. 29927 poses behind the counter at the grand-opening ceremony.

Mayor Domenic Sarno commends franchisee Stan Paulauskas for opening his fifth BURGER KING in Springfield, Massachusetts.

Support the Vendors That Support Your Association

California Restaurant Association President Addresses SCBKFA Members

Members of the Southern California Burger King Franchisee Association (SCBKFA) gathered for a meeting at Maggiano’s at The Grove in Los Angeles June 15.

Franchisees engaged in informative business sessions as well as a small trade show. Attendees were provided with lunch and networked with other franchisees and vendors.

The meeting sponsors and partners included Atmosphere TV, The Coca-Cola Co., Keurig Dr Pepper, Freund Baking Co., Leasecake, One More Time Inc., Manufacturer’s Bank Franchise Lending Group, Restaurant Technologies Inc. and Veg-Fresh Farms.

A highlight of the meeting was an address by California Restaurant Association President and CEO Jot Condie, who discussed industry opposition to A.B. 257, a California bill known as the FAST Act, which would create an 11-member council to review and create workplace standards for fast-food

employees – including standards on wages, working conditions and training.

SCBKFA President Shirley Humerian opened the first half of the business session, which included presentations from the National Franchisee Association (NFA) Chair Dan Fitzpatrick, SCBKFA Treasurer Greg Mallis, Zaller Law Group partner Anne McWilliams, SCBKFA board member Sanna Shere, and Burger King Corp. representatives Chris Turpin, Randy Fox, Garrett Craig and Evelyn Miranda-Cox.

After this session, a small trade show allowed sponsors to meet franchisees and display the products and services of their companies. Prizes were announced by vendors who held raffles.

The business session continued with a presentation by RSI member and SCBKFA board member Wayne Burke, followed by Tracy Kearns of Keurig Dr Pepper and RSI CEO Joel Neikirk.

The SCBKFA will meet again in December. Look for details on the next SCBKFA meeting to come soon. n

The MSFA Hosts Other NFA Regions in Colorado

On July 10-12, the Mid South Franchisee Association (MSFA) held its second meeting of the year at the Viewline Resort Snowmass in Snowmass, Colorado. The event balanced work and play by allowing attendees to participate in informational sessions with guest speakers, authentic Mexican dining and wine tasting.

The MSFA hosted the meeting with members from the Great Western Franchisee Association (GWFA), the Florida Caribbean Franchisee Association (FCFA) and the Mountain Franchisee Association (MFA). The meeting had 200 guests, including franchisees, guests, vendors, BURGER KING® Corp. representatives and more. The meeting featured presentations from several vendors, including Elkay Interior Systems, Keurig Dr Pepper, LSI Industries, RTI, The CocaCola Co. and TSP Family Office.

The meeting started on July 10, with congregations of each respective NFA region. As an add on, attendees were encouraged to participate in a wine tasting sponsored by the BURGER KINGSM Foundation on the roof of the resort.

The second day of the meeting started with general session opened by MSFA Chair Kevin Newell with vendor introductions soon after. Following were presentations by President of BURGER KING U.S. & Canada Tom Curtis, NFA Restaurant Operations Council member Andrew Geiger, RSI CEO Joel Neikirk and an NFA Marketing Advisory Council representative. The day concluded with dinner at Venga Venga, an authentic Mexican cantina and tequila bar.

The final day had another general session, hosted by NFA Second Vice

Continued on page 13

California Restaurant Association President and CEO Jot Condie speaks to attendees during the Southern California Burger King Franchisee Association meeting business session.

Vendors displaying their products and services and networking with attendees.

President and Technology Committee

Chair Russ Lo Bello and GWFA President Ayaz Virji with presentations from Lo Bello, Government Relations Committee

Chair Dominic Flis and MAC Committee representative Gary Geiger. The meeting ended with a franchisee-only roundtable. Stay tuned for updates on information for the next joint meeting, which will be hosted by the FCFA. n

Regional Events

Sept. 14

Southwest Franchisee Association Regional Meeting

Oct. 3-5

New England Franchisee Association Regional Meeting

Oct. 11-12

Mid-Atlantic Franchisee Association Regional Meeting

Towson, Maryland

Nov. 2-3

Metro New York Franchisee Association Regional Meeting

Atlantic City, New Jersey

National Events

Aug. 23-24

Elevanta Board Meeting

Atlanta, Georgia

Sept. 6

NFA Board Meeting

Las Vegas, Nevada

Sept. 7-9

BURGER KING Corp. Convention

Las Vegas, Nevada

Sept. 9

NFA Annual Meeting

Las Vegas, Nevada

MSFA President Kevin Newell presenting to attendees during general session.

INFLATION AND ITS TOLL ON THE Restaurant Industry

1 In April, the Consumer Price Index was 8.3% higher than last year. This is raising prices in every sector – from groceries to gas.

2 Sixty-six percent of restaurant owners say they are struggling with high gas prices.

3 Recent inflation has caused drive-thru businesses to take a hit, as 39% of Americans plan to cut back on driving because of higher prices.

4 Seventy-two percent of small-restaurant owners worry inflation could force them to close in the next six months.

5 During the past six months, 45.7% of U.S. restaurant owners have reported a noticeable increase in the price of goods and services.

6 Restaurant menu prices are the highest they have been in 40 years.

7 Forty-two percent of consumers are reducing the amount they eat out.

8 Forty-seven percent of business owners have raised their prices because of inflation.

9 Restaurant traffic in April was down 9.4% year-over-year.

10 Prices at limited-service places were about 7% higher than they were during April 2021.

Sources: CBS, Forbes, Lendio, Restaurant Business Online, U.S. Bureau of Labor Statistics

Spotlight on the 117th Congress: Rep. Lloyd Smucker (R-PA-11)

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

APrior to serving in Congress, I was a small-business owner. After graduating from high school, I built a small business over a period of 25 years into a regional leader in the type of construction our company did. I employed hundreds of individuals in family-sustaining jobs. I saw firsthand the impact of government regulation on small businesses and how that held us back.

As a small-business owner, you are constantly facing challenges and complex problems. I previously mentioned that my business was impacted by what I believe to be overly burdensome regulations and tax policy. It did not seem like policymakers or bureaucrats understood the impact of their decisions on small businesses.

Prior to serving in Congress, I also served as a municipal official and as a state senator. My approach to service in municipal, state and the federal government has been about working to address the many challenges we face as a country. Service in government is about working collaboratively with your neighbors to builder a stronger community.

I am working to reignite the American Dream. As someone who has been fortunate to have the opportunity to live the American Dream, I want to work to ensure that future generations of Americans have access to and the ability to live out their own dreams.

QWhat do you see as the current biggest threat to small-business owners?

AThe Biden administration’s plans to raise taxes and increase the regulatory burden on small-business owners are threats that cannot be denied. This administration continues to demonstrate its commitment to making it more difficult for small businesses to grow and thrive.

Q

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

AIn addition to working to keep taxes low and to fight the red tape of Washington’s bureaucracy, my office is also able to help small businesses with issues they may be experiencing with the federal government. For instance, my office worked with several constituent businesses to help provide them information on COVID-19 relief programs. My office works to ensure that constituents receive timely responses to their inquiries and that their issues are addressed. We cannot always guarantee each constituent the outcome that they would like, but we work to ensure their concerns are heard by the federal government.

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

ATo be an effective member of Congress, you must be in constant communication with the constituents you represent. I am frequently in touch with the small-business community in my district because I am out there visiting small businesses and learning about what issues are impacting them most.

One of the most common problems that I hear from business owners across my district is that they are having difficulty finding individuals to fill their open positions. Labor shortages hold back businesses from full operations in bad times and from expanding and taking on new opportunities or risks in good times. It is something that I experienced as a small-business owner in the construction industry.

While many factors have driven the record-high inflation we’re experiencing today – from reckless spending to global supply chain disruptions – the workforce challenges are also contributing to rising prices. We simply must get our economy moving and growing again. And I have introduced legislation to aid in this endeavor, known as the Essential Workers for Economic Advancement Act, while also filling the gap in the existing spectrum of visas by providing a category to complement the other categories for high-skilled, agriculture or seasonal labor.

QHow has your role on the Budget and Ways and Means committees influenced your opinions on the impact of legislation on small business?

AMy service on these committees has offered greater insight into the impacts of federal policy on small businesses.

On the Budget Committee we discuss and evaluate issues impacting our nation’s financial health. Our ever-growing national debt is an enormous long-term threat to our nation. Every dollar spent servicing our debt, meaning dollars spent paying the interest on the debt already accrued, is a dollar not spent on funding national priorities. This impacts our ability to invest in infrastructure, our national defense and every other funding priority.

I serve as a member of the Trade Subcommittee on the Committee on Ways & Means, and I have greater insight into the impact of our nation’s trade policy on small businesses. The congressional district that I represent has approximately $2.6 billion in annual goods exports, with strong agricultural and manufacturing bases. The Ways & Means Committee also has jurisdiction over tax policy, which impacts every business across the nation.

I appreciate the opportunity to serve on two key committees that address the issues impacting my constituents. n

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

Freshdesk is an intuitive, cloud-based solution software designed by Freshworks to help businesses of all sizes deliver customer service. The software is equipped with many features to optimize the interactions with customers on all support channels, including phone, email, chat and social media.

2

Salesforce is a company that makes cloud-based software designed to help businesses find more prospects, close more deals and wow customers with amazing service. 3

“Engaging People Podcast” by DecisionWise is the premier business, organizational change and human resources podcast on the web. Listen to the best practices on how to increase employee engagement, how to give feedback, practical advice on how to be a leader, how to develop a thriving company culture, tips on management and team building, and real-life business stories from years of practical work experience. 4

The best leaders always keep one eye trained on innovation, and the “Stanford Innovation Lab Podcast” can help you do just that. The series provides a sample of what you might learn in a high-level class on innovation and entrepreneurship. Learn to look at almost anything from a new angle with host Tina Seelig, Stanford University professor.

In “The Truth About Employee Engagement,” Patrick Lencioni outlines three common causes of employee disengagement: immeasurability, anonymity and irrelevance. In other words, feeling alone and seeing individual contributions as meaningless. By taking steps to help employees feel connected to colleagues, confident in designated roles and useful to others, you can help motivate workers toward higher levels of performance. The author presents real-life scenarios and offers an actionable plan to help teammates reach their true potential.

5

6 How do you become successful in franchising?

“Pillars of Franchising” features interviews with franchisors, franchisees and franchise professionals to determine the secrets of owning a successful franchise.

7

Like many great leadership books, “Leaders Eat Last,” by Simon Sinek, draws inspiration from military principles. The concept in question: High-ranking officers eat after their men, putting their reports’ needs before their own. Sinek states that trust and psychological safety are the keys to excellence, illustrating this argument with multiple examples from different types of organizations around the world.

8 Entrepreneur and business coach Brian Dixon set out to discover the secret to living a life that matters and finding work you love. In “Start with Your People,” Dixon shares principles, tips and personal stories to help you maximize the most important resource to succeed: relationships.

9 Square is a mobile payment company that offers a suite of business software, point-of-sale (POS) systems, payment hardware products and small-business services. Unlike most payment processors, Square is available to businesses of all sizes and offers the most comprehensive free POS system on the market. The Square payment and POS app has been downloaded more than 33 million times and has more than 2 million active sellers. n

Richard “Rich” L. Kostel

On May 24, Richard “Rich” Louis Kostel passed away from the complications of a broken heart from the death of his beloved wife, Gee, who passed the previous year after 53 years of marriage. Kostel owned and operated 13 BK® restaurants for 44 years and was very involved with the system, sitting on boards for the National Franchisee Association (NFA), Restaurant Services Inc. (RSI) (multiple terms), the BURGER KINGSM Foundation and the Dallas Region Franchisee Association. He was 74 years old.

Kostel started his professional career as a police officer. Wanting to make a legacy for himself in Plano, Texas, he moved from Chicago to become a BURGER KING® franchisee in 1978. That same year, he opened his first restaurant, No. 2390, in Paris, Texas.

Debra Bailey, chief financial officer of Kostel Inc., described Kostel as dynamic and enthusiastic. Kostel had his hands in every aspect of the business, from working on the line to managing finances. He treated his employees like family and always stepped in to help them or listen to their concerns. Fifteen percent of the employees at Kostel Inc. have been with the company for over 15 years – a testament to Kostel’s loyalty and passion for his staff.

“His encouragement pushed me to stretch my knowledge and involvement in every aspect of the business – from point-of-sale management to developing property,” Bailey said. “The word ‘can’t’ was not in Rich’s vocabulary. He was extremely focused and determined to always accomplish any task with excellence.”

He is survived by his son and two daughters, John Kostel, Amy Kostel and Deanne Hinson. John, who worked alongside Rich as vice president of operations, said Rich worked with

honesty, integrity, fairness and performed his duties correctly. He will remember his father for his genial nature and his big heart for others.

“Everything I know is because of my parents,” John said. “My dad taught me to do good for people that do it the right way.”

Rich’s persistence and determination helped him in his fight with throat cancer back in 2011. Jim Myers, the former head of North America franchising and development for BURGER KING and close friend of Rich, called him weekly while he was being treated to keep his spirits high. Rich reciprocated the support when Myers was diagnosed with leukemia a few years later.

“Rich would call me regularly to tell me how good I was to him and to never give up hope,” Myers said. “He told me that we had to support one another, and we did that through our illnesses.”

In his leisure, Rich loved to travel with Gee anywhere and everywhere. They frequented islands in the Caribbean that were a hotspot for their travels. He treasured every minute with his family and loved Gee with all his heart.

“They were the love of their lives,” John Kostel said. “They were inseparable.”

Rich was a family man and a beloved franchisee who will be dearly missed. In the midst of mourning, it has brought great comfort to his loved ones to know that he has reunited with Gee.

“He led by example, facing every challenge with determination to succeed,” Bailey said. “He was one of the toughest men I have ever known.”

If you wish to honor Rich’s life with a memorial, do so in his name to the American Diabetes Association, BURGER KINGSM Foundation or a charity of your choice. n

Richard Kostel kissing his beloved wife, Gee Kostel.

Rich Kostel sitting beside the CFO of Kostel Inc., Debra Bailey.

IN MEMORIAM

Mohamed Mohiuddin

Mohamed “Mac” Mohiuddin, a former BURGER KING® franchisee with 40 years in the system operating locations in Pennsylvania, died June 5, at 78.

Mohiuddin founded and owned M&N Foods, based in Philadelphia, now operated by his son, Naveen. Today, Naveen owns three BK® restaurants. Mohamed was known for his dedication and passion for the brand and the love he had for his family.

Mohamed immigrated to Kalamazoo, Michigan, with his wife, Naheed, from India in 1970 to further their education at Western Michigan University. The following year, he started his career at a franchised BURGER KING to make ends meet while he was in college.

“He loved the structure of the BK brand,” Naveen Mohiuddin said. “He was happy to get into the [American] culture and make memories for the customer.”

Mohamed worked under NFA Chair Dan Fitzpatrick, when Fitzpatrick was

early in his career as a franchisee. He noted Mohamed’s commitment to the customer and his positive contribution to the BK brand.

“First and foremost, Mac was a person of genuine integrity,” Fitzpatrick said. “He was rarely, if ever, rattled under pressure. He is someone whom you would hope to meet and work with during your career because of his kind, sweet and approachable manner. I never once heard Mac say a bad or unkind word about anyone. Mac was always fair and open with everyone whom he worked with or around.”

With a model work ethic, Mohamed was able to rise through the ranks in the BK system, becoming the district manager for multiple franchisees. Retired franchisee Steve Lewis recalled Mohamed’s commitment to the company and BK.

“My fondest memory of Mac was his smile – it was infectious and genuine,” Lewis said. “He was a pure gentleman who loved the brand.”

In 1999, Mohamed was motivated by

Naheed to start M&N Foods. Knowing his dedication to BK, she wanted to see him take on stores of his own. He was a franchisee for around 10 years until he passed the business to Naveen in 2009.

In his time away from the business, Mohamed enjoyed traveling and sightseeing. His favorite locations to visit were national parks. He loved taking his family to northeast Pennsylvania to view the fall foliage. He cherished moments with his eight grandchildren and spent ample time with them.

Mohamed was a beloved father and franchisee, and he will be deeply missed.

“He taught me that there’s a process to things,” Naveen said. “Do the right thing and it will pay off.” n

Mohamed “Mac” Mohiuddin, 1944-2022

Mohamed Mohiuddin and his wife, Naheed, with the King.

Mohamed Mohiuddin, his wife, Naheed, his son, Naveen, and his daughters, Mahveen and Zubeen.

IN MEMORIAM

Robert ‘Bob’ and Freida Wallstein

The BURGER KING® franchise system lost two stalwarts from New Jersey when Robert and Freida Wallstein passed away in April within weeks of each other after 71 years of marriage.

The couple was a driving force behind Harvey Management Corp., based in New Jersey. Teaming with Robert Wallstein’s cousin, Harvey Levine, the Wallsteins were part of an effort that grew the company from operation of two BURGER KING restaurants in 1970 to 22 by the early 1980s.

Bob Wallstein had a background in the hospitality industry, operating a full-service restaurant in the 1950s and ‘60s, making their BURGER KING venture a natural fit. “My father was hands-on operator, and my mother was back-office support,” said their son, Mike Wallstein. “She would get called in to help with the lunch rushes

when needed. She worked in the business for the first 10 years.”

Wallstein and Levine were hands-on operators who made their teams their top priorities. “They prided themselves that they always treated the people that worked for them with respect,” Mike Wallstein said. “They built a culture of trust and loyalty, and people knew them and liked them and respected them. While my father was more active in the restaurants, he relied on my mother behind the scenes.”

In 1997, Mike Wallstein and Drew Paterno, who joined the company in 1978 and became its director of operations, purchased it from Mike’s parents knowing that they had a ready and willing resource to help them continue its success. “We had the privilege and fortune of having him as someone we could talk to with his experience and his knowledge,” Wallstein said.

“We often asked ourselves what Bob would do,” Paterno said. “He was a natural leader and a great example of how to operate these restaurants at a high level and how to operate them with great investment and buy-in from their teams.

“The biggest lesson I got was to never forget that the most important asset we had was our people, and we needed to be sensitive to their individual needs. The average tenure of our leading core people was over 30 years. That’s attributable to Bob and Freida.”

The Wallsteins were well-known in the system, with Bob serving on several of the brand’s franchisee councils, and especially in the New York region, for Bob’s founding role in what eventually became the Metro New York Franchisee Association

(MNYFA) and for their charitable interests.

At the time of the purchase of the BURGER KING brand by Grand Metropolitan in 1989, Wallstein joined with New York-area franchisees to form a regional association to give them more of a voice on the future of the brand. Another key priority of the association was fundraising for children’s charities, particularly the Valerie Fund, an organization supporting childhood victims of cancer. The Wallsteins were proud to be involved in those efforts.

“Knowing the background, history, hard work and struggle that went into establishing our local network of franchisees is something you can only truly appreciate when you are sitting in the seat of one who has been there before, or in this case, been there first,” current MNYFA Chair Amir Syed of Syed Restaurants Enterprises said. “It was truly an honor to have known the man.”

“He had a big hand in running the annual fundraising golf event for the Valerie Fund,” Mike Wallstein said. “Even after they sold the business, he participated in the fundraising activities. He very much appreciated the opportunities he was given. He was very proud to be associated with the brand and felt called to give back.”

“It is going to be a very long time before you hear about another family that will build a history and legacy like that put forth by Bob Wallstein and Harvey Management,” Syed said. “Many will build and acquire, but to last for decades in this brand, that’s something only a few can do.” n

Mike Wallstein, center, with his parents, Freida and Bob Wallstein.

Drew Paterno, from left, Bob Wallstein and Mike Wallstein at one of Harvey Management Corp.’s BURGER KING restaurants.

FamilyMatters FamilyMatters

The Andrzejewskis: A 50-Year BK Legacy

Luke,

Sixty-seven-year-old PJ Foods owner Gary Andrzejewski started as a crew member at BURGER KING® when he was 16 years old. Little did he know that he would come to own 10 stores and have his sons, Luke and Scott, run the business by his side.

Andrzejewski started his career at BK® store No. 700 in Dundalk, Maryland, over 50 years ago to make extra money. He quickly became enamored with the brand and became a manager at 17 years old. His swift advancement in the BK system caused him to look at BK for a long-term career.

Andrzejewski was able to advance quickly at his store, owned by franchisee Phil Hoag. During his employment, the company grew from five stores to operating 20. Within 20 years, Andrzejewski rose through the ranks, becoming a restaurant manager, regional manager and ending as the director of operations.

In 1999, he purchased three of Hoag’s locations to start the business that he always envisioned for himself. Naming his company after his wife, Patty Jo, PJ Foods was born.

by JARED JOHNSEN

During Gary’s time as a district manager, sons Luke and Scott gained their own interests in the BK brand. Their intrigue began at a young age when they would visit BURGER KINGs with their father. Multiple times throughout the year, Luke would lie and tell his father that it was “take your son to work day” so he could skip school and spend time with his father at work.

Luke and Scott wanted to experience the family business firsthand. At the ages of 14 and 16, they started their careers with BURGER KING. Luke would go on to surpass his father’s achievement and become a full-time manager at 16 – one year younger than Gary.

They took after their father as they rose quickly through the family’s company. Now, Luke and Scott are vice presidents for PJ Foods.

The brothers wear many different hats within the organization. Luke oversees operations, community outreach and government relations. He is responsible for the $75,000 the company raises every year for local nonprofits.

Scott understood the importance of gaining the respect from

Continued on page 22

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“I didn’t want a desk job,” Andrzejewski said. “I always saw myself moving, and I like my days being different.”

“I didn’t want a desk job. I always saw myself moving, and I like my days being different.”

– Gary Andrzejewski

Gary Andrzejewski in 1984.

Family Matters

Continued from page 21

general managers after graduating college. At that time, Gary’s advice to Scott was to learn and become skillful at tasks that restaurant managers were unfamiliar with. Heeding Gary’s wisdom, Scott took it upon himself to master the business’s information technology, perform vendor relations, manage capital expenditure projects and perform maintenance on the restaurants’ equipment.

“I feel very confident that both of my boys can run our operations,” Gary said. “They have taken a lot off me. Between them, their skillsets cover every aspect of the business.”

The family’s fondest memories with BK are at the conventions organized by BKC and the National Franchisee Association (NFA). They love networking with other franchisees, attending vendor shows and the parties that come with them.

“One memory I will never forget was when we used a 500-lb. WHOPPER® for the grand opening of a store,” Gary said. “We had a bread company create a bun that stretched 8 feet across. We dressed it like a WHOPPER, and it sat in front of the store all day. It probably wasn’t the smartest idea, but it got a lot of attention.”

The Andrzejewskis are not strictly business. Living within three

miles of each other, they are a tightknit group that sees each other often outside of work. The trio, along with Gary’s two retired professional-soccer-player daughters, Ali and Bridgette, competes in a soccer league together that plays every Sunday, followed by a pizza dinner.

With four grandchildren in the family, the future of PJ Foods shines bright.

Gary is the president of the Mid-Atlantic Franchisee Association and sits on the NFA’s Governance Oversight Committee and the Franchise Relations Committee. He is also on the Elevanta and RSI boards of directors. He hopes to have Scott and Luke take his place on those committees one day.

Gary has developed a wealth of knowledge in his time as a franchisee and has given many pieces of advice. He says that a business’ goal is to survive. Not taking on more than what a person is capable of and living a conservative lifestyle are two of his keys to success.

“My father’s No. 1 rule is: ‘We are in the people business, selling hamburgers,’” Scott said. “Take care of your people.” n

JARED JOHNSEN is the NFA Communications Specialist. You may reach Johnsen at 678-439-2291.

An ad depicts the 500-lb. WHOPPER that Gary Andrzejewski used for the grand opening of a store.

Gary and his children after competing in a soccer game for their league. From left are are Scott, Bridgette, Gary, Ali and Luke.

Scott, Luke and Bridgette Andrzejewski as children with the boys sporting PJ Foods jackets.

Franchisee to Franchisee Forum

Not only are we seeing the highest rate of inflation in 40 years, but government subsidies have also stopped, and a large portion of the workforce is now able to work from home. This is causing a large portion of our population to change their eating habits. Because of workfrom-home flexibility and high gas prices, many workers have food delivered either straight from the grocery store or from restaurants. These macro events are causing many people to not frequent the closest group of restaurants near their office, as they are now working from home, or restaurants on the way into the office or on the way home. The shortage of workers is also affecting every aspect of running businesses. The shortage in the labor force affects the manufacture of food, the delivery of food to warehouses and restaurants, and the preparation and sale of food to the guests, making operations and offering quality service to guests more difficult.

- Russ Lo Bello

The rise in inflation over the last year has certainly changed the eating habits of our guests. We can see that in our menu mix changes overall and trade to smaller burgers or less expensive menu items while the premium line of burgers has fallen. Overall traffic has certainly become a concern as well, especially in the recent months with the spike of gasoline prices.

As a result, we have worked to use more effective POP at the point of purchase to help protect our check average with price pointed, loss leader price points for certain menu items. Examples would be $1 small frozen Coke, $1 small iced coffee and the Junior Breakfast Burrito for $1.49.

Overall, inflation will, in time, move some guests from fast casual to quick service, and we could benefit from the trade down. Until that happens, we must work to protect our business overall from the traffic decline.

Beyond the steps above, we have simply stressed to our management teams to focus on delivering the best value perception to our guest overall. This is to the full margin guest who is yet to be impacted by inflation or to the value seeker that might be more price cautious. We must work harder to deliver on the best guest experience possible to retain them for the long term.

- Keith Egyed

Patrick Sidhu:

NFA Mourns Valued Franchisee

Afounder and driving force behind the creation of one of BURGER KING®’s most successful franchise companies of the last decade died unexpectedly in May, leaving behind a family, friends and colleagues who universally admired his personality and respected his gifts for managing and growing a business.

Patrick Sidhu, president and CEO of Premier Kings, which owns and operates 185 BK® restaurants in the Southeast, as well as other locations of other restaurant brands, died May 24. He was the representative of large franchisee groups on the National Franchisee Association (NFA) Board of Directors and served on the NFA’s Marketing Advisory Council as well as BURGER KING’s Marketing Council and Image Committee.

He and his brother-in-law, Jay Gill, founded Premier Kings with six BURGER KING restaurants in 2010. Through their leadership, the company, based in Montgomery, Alabama, experienced phenomenal growth over a dozen years, reaching ownership of 185 BK stores. Premier Kings won BK’s Franchise of the Year award in 2015 – a recognition of its growth as well as the high standards with which its restaurants operate.

“To me, he was legendary,” said Kevin Newell, a close friend of Sidhu and a fellow NFA board member. “I’ve never seen somebody acquire and build restaurants to the level he did. He was an example to everyone.

“Patrick was a very hard worker from morning to night. He was always pushing hard. Everything he did, he wanted to do to the next level,” Newell added.

“He was very easy to like,” said another friend, Dominic Flis, chair of the NFA Government Relations Committee. “He had a

good business mind – that’s what got us to keep building a business relationship that grew into a personal friendship. He was very friendly and outgoing and always had a funny story to tell. I enjoyed time with him.”

“He had a very good personality, and he was a good friend. He was 100% trustworthy and very hard working,” Gill said. “He was never afraid of working hard and very confident. When he walked in a room, he wanted to be known.”

by SEAN IRELAND

That combination of traits – friendliness, drive and confidence, strong work ethic – gave Sidhu leadership abilities that helped him and Gill build and diversify Premier Kings into a powerhouse organization always looking for its next opportunity and ready to capitalize when it came.

According to Newell, Sidhu got his start in the restaurant industry as a dishwasher at the age of 18. He quickly rose to become a restaurant manager, district manager and, finally, director of operations for a company with five separate brands. When Sidhu married the sister of Gill’s wife, the pair decided to go into business together.

After a start in the convenience store business, they chose to move into quick-service restaurants. They began in 2010, when Sidhu and Newell first met at a meeting for franchisees and restaurant general managers. “One day for breakfast, I sat down with him, and he talked my head off,” said Newell, who was also a new franchisee at the time. “We learned we had a lot of the same desires and passions.”

Based on those interests, their friendship sparked. “Being new, we had to help each other to make it,” Newell said. “We both wanted to grow quickly. He came in with six stores, and I came in with one in Mayfield, Kentucky. Every week for years we would practice with each other by giving a pitch from different standpoints about why we should [be allowed] to grow.

“We had the same business philosophy – that was a big part of it. We depended on each other,” Newell added. “If one of us was short and had a store opening, we sent people to help. He was very generous to me and did a lot of great things for me. He helped me way more than I helped him.”

Sidhu and Gill grew quickly by always being open to taking on restaurants, no matter what challenges may have come with them. Sidhu was confident that their company and leadership skills were strong enough to turn around underperforming locations.

“We were never afraid of taking over challenges. We always wanted to get into more restaurants – that growing mode was in-built,” Gill said. “In 2010, the [brand] had gone through some restructuring, and several opportunities came our way. We were not afraid to take them on and knew we would be able to fix problems and grow the restaurants.”

“[They were] willing to go to the BURGER KINGs where the business had been down and take them over, and they had the capital to do the remodels that were essential at that time,” Flis said.

“He was out there at the forefront, talking to people,” Gill added. “He was going to meetings and talking to franchisees and the franchisor and keeping a link to them so we didn’t miss anything.”

Restaurant turnarounds are never easy, but Premier Kings’ focus on operations, image and standards helped it to make new acquisitions successful. “Patrick was very particular on what we served our

guests,” Gill said. “Both of us want stores to be neat and clean and serve the guest quality food – all the guidance in the operations manual of BURGER KING. We tell all our employees that all we are asking is to follow the manual. It has great guiding principles.

Continued on page 26

Patrick Sidhu, left, and Kevin Newell developed a close friendship when they entered the BURGER KING system as franchisees at the same time.

Sidhu

Continued from page 25

“We loved to go to our stores. We wanted to make sure everything was working. We visited with our managers to find out what problems they had, and we made sure they got fixed. We were never afraid of investing back into the business.”

Newell saw firsthand the dedication that Sidhu and Gill – and by extension, the people in their restaurants – have for creating good guest experiences. He often stopped in Premier Kings restaurants in Alabama while traveling to Florida for family vacations. “His BK would always have a flag on top of his restaurant. He had perfect landscaping, and they were always on top of customer service. I would try to find something wrong just to harass him about it, and if I didn’t find it, I wouldn’t tell him I had been there,” Newell said with a laugh.

“He was so involved with his business – he knew every facet to the highest degree. He made me better in my career because he knew all the details. It made me better because I learned to see what he did.”

Flis and Newell remain grateful for the lessons they took from Sidhu. Flis said he learned about development and financing and Sidhu’s financial perspective of the business.

“He showed me a setup of how he did district manager meetings, manager meetings and director of operations meetings,” Newell said. “He showed me the things he was looking for on a daily, weekly and monthly basis. He gave me an organizational flow of what needed to be done.”

That spirit of sharing and a desire to contribute to the success of others was another facet of Sidhu’s personality – generosity. Not only did it drive him to help others, but it also led him to active service

To give to the BURGER KINGSM Foundation Patrick Sidhu Legacy Scholarship:

DONATION VIA CHECK:

• Complete check with donation amount payable to BURGER KINGSM Foundation and mail to: BURGER KINGSM Foundation

Attn: Ana Gonzalez 5707 Blue Lagoon Drive Miami, FL 33126

• BURGER KINGSM Foundation will provide acknowledgment receipt for tax purposes.

DONATION VIA WIRE:

• Provide your bank with the donation amount requested and the following wire details (if international account, provide Swift Code as well):

Bank Name: JP Morgan Chase

Bank Account Number: 496582151

ABA/routing number: 021000021

Swift: CHASUS33

• Your bank will provide confirmation receipt of processed transaction.

• BURGER KINGSM Foundation will provide acknowledgment receipt for tax purposes.

above and beyond his business to the BURGER KING system.

“He thought that with all the experience he had, he wanted to bring it out for other people to see how it’s done or how it can be done,” Gill said. “He always put his two cents into how things could be improved. He loved to share his experience and learn from other people. He loved to be on committees and participate in the system. He loved that part.”

“We shared the belief that if you are not part of the solution, you are part of the problem,” Flis said. “He wanted to be involved in helping forge the franchisee perspective on how the business should move forward. He wanted to find roles where he could have that kind of influence.”

“People followed him. He was a good leader. He was not afraid to give his honest opinion and share things with fellow franchisees,” Gill added. “If there was something good happening with us, he would share it with Kevin and Dominic, and he would call on them to get guidance on certain things too. He had very good friendly relationships all over.”

Newell also noted that Sidhu was especially generous to the BURGER KINGSM Foundation and with children’s organizations in Montgomery. Befitting his personality, few knew about that side of him. With the foundation, he maintained a legacy scholarship for $25,000, providing a $1,000 scholarship yearly in perpetuity. To honor Sidhu, any contributions toward increasing his legacy scholarship can be made to the BURGER KINGSM Foundation. Increasing the scholarship fund to $62,500 would provide an annual scholarship of $2,500.

A contribution honors the legacy of a leader in the BK franchise system, as well as a beloved husband, father and friend. “He was a very loving husband and very loving father. He would take the time to be home with the kids and spend weekends with his family,” Gill said. “He was always trying to get the best out of life.” n

SEAN IRELAND is the NFA director of communications. You may reach Ireland at 678-797-5165.

Jay Gill, left, and Patrick Sidhu founded Premier Kings in 2010 and led the company to phenomenal growth in the BURGER KING brand.

The Times They Are A-Changing: The Case for Upgrading to Modern Restaurant Technologies

With competition and staffing challenges being what they are today, the last thing you need is to give guests a bad experience that they can quickly and immediately share with hundreds of people on social media.

You want to help your crews keep lines moving, prepare accurate orders, and, increasingly importantly, help employees enjoy the job they do so they stick around longer.

Technology is just one factor that contributes to stellar guest service, but its contribution should not be overlooked.

Advantages of Modern Technology

Today’s terminals offer a ton of advantages, including faster order taking and payment so you can breeze through crunch time as if there isn’t even a crunch. Guest-facing confirmation screens help ensure accurate orders, while faster processors in today’s terminals get your managers through end-of-day and other management functions way faster than the tech you installed in 2012. Save on labor costs. Keep your crew happy and on your team.

In the kitchen, you know how important it is to configure your prep areas for maximum efficiency. It’s the same with displays and bump bars available with today’s kitchen management systems. Screen readability, layout, color coding and improved bump bars can all help your crew manage order prep like champs.

We’re Innovating So You Can Better Serve Guests

Xenial is end-of-lifing legacy kitchen management systems and the SL20 terminal. Here are important dates to keep in mind:

• Xenial Kitchen Display System (KDS) end of life Oct 16, 2022. After that date, the current KDS will not be supported by the Xenial Helpdesk, and the old KDS software may not function with newer versions of your POS.

• SL20 terminal end of life Sept. 1, 2023

Want to learn more? Ready to order? Please contact bksales@xenial.com.

Challenges of Old Technology

Old technology simply doesn’t have the processing power or integrations to help you optimize for fast, friendly, accurate guest experiences. No manager has ever wished their end-of-day closeout took longer. On the contrary, they want to clock out and get home to their family. And no guest or crew member ever relished a long line of hangry guests while they waited for the POS terminal to chug through the order and payment process.

Xenial is a Sapphire partner member of the National Franchisee Association. The company may be reached at 215-317-3838 or bksales@xenial.com.

You want to help your crews keep lines moving, prepare accurate orders, and, increasingly importantly, help employees enjoy the job they do so they stick around longer.

2022 NFA LEAD CONFERENCE

STRENGTHENS BK LEADERS BY LEADing People Tomorrow

For the second year in a row, the National Franchisee Association (NFA) community, including over 300 franchisees, system suppliers and above restaurant leaders (ARLs), came together face-to-face in Las Vegas, June 7-10, for the 2022 NFA LEAD (Leadership Exploration and Development) Conference. The event aimed to provide the BURGER KING® system with access to a whole new level of training and education. Hosted again at the lush Cosmopolitan, this conference opened the door to new best practices on building a team by learning how to LEAD People Tomorrow.

The 2022 NFA LEAD Conference kicked off June 7, with a welcome dinner at Hofbräuhaus Las Vegas. Here participants were treated to a German-style buffet with beer and a variety of cocktails and had the opportunity to catch up, network and play games in the beautiful indoor beer garden.

The next day ramped up early in the afternoon with NFA Chair Dan Fitzpatrick presenting results of the annual Franchise Business Review survey of BK® franchisees before starting the general session for all attendees. Fitzpatrick and LEAD Conference Committee Chair Andrew Schory opened general session and were followed by select, exemplary ARLs who were awarded for their hard work in 2021 during the Doing the Extraordinary Awards ceremony. General session lasted until 5:30 p.m. and everyone was invited to the trade show floor for the opening reception.

The following morning started with a breakfast for all attendees before the LEADing People Tomorrow ARL Workshops began. The three workshops offered were the

LEADing People to a Technological Tomorrow with Matt Bars and Russ Lo Bello, LEADing People to a Successful Tomorrow with Dennis Snow and LEADing People to a Profitable Tomorrow with Bennie Arbour and Joel Neikirk.

All attendees then had several hours to grab lunch and visit exhibitors in the trade show before returning to the workshop debrief and closing keynote speakers. Don Rheem, CEO of E3 Solutions, followed the workshop debrief with an educational keynote address on the scientific explanation for the Great Resignation and what employees want to see in their companies.

Following Rheem was motivational speaker and the man behind the Netflix documentary, “7 Yards,” Chris Norton. Norton suffered a debilitating spinal cord injury at 18 playing in a college football game. He was given a 3% chance to move or feel anything below his neck after the injury. Norton beat those odds and shared his journey and struggles with attendees during the closing general session. After his address, he signed books for attendees.

The next day saw an equipment and technology breakout session with presentations from Budderfly, Xenial, Welbilt, Marmon Foodservice Technologies and ChargeNet.

The 2022 NFA LEAD Conference continued to prove that there is a need for an event dedicated to education and training and networking face-to-face with fellow franchisees and system suppliers. The NFA looks forward to hosting the 2023 LEAD Conference, May 22-25, at the Gaylord Texan in Dallas, Texas. n

WELCOME DINNER

Conference attendees load the bus to head to the Welcome Dinner at Hofbräuhaus Las Vegas.

NFA member Matt Carpenter and Veterans of Foreign Wars board member Mike DeRosa, a former BURGER KING franchisee, catch up over a beer at the Welcome Dinner.

The Jenga tower falls as attendees try their hand at a game during the Welcome Dinner.

Conference attendees cheer to good times at Hofbräuhaus Las Vegas.

Conference attendees enjoy a game of cornhole at Hofbräuhaus Las Vegas.

Hofbräuhaus Las Vegas provided entertainment during the Welcome Dinner.

GENERAL SESSIONS

NFA Chair Dan Fitzpatrick welcomes attendees to the 2022 NFA LEAD Conference.

NFA LEAD Conference Committee Chair Andrew Schory shares some words of inspiration to help kick off the conference.

NFA Government Relations Committee Chair Dominic Flis provides an update on committee business to conference attendees.

Conference attendees grab a quick bite and coffee during one of the general session breaks.

The 2022 NFA LEAD Conference general session room was packed with BK franchisees, above restaurant leaders and vendors.

From left, Burger King Corp.’s Katerina Glyptis and Eric Goldhersz and franchisees Richard Santowski, Mark Peterson and Ayaz Virji lead the Employee Development panel.

Brooke Kaplan and Allison Werner with the BURGER KING Foundation update attendees about the foundation’s goals and achievements.

Veterans of Foreign Wars board member Mike DeRosa provides an update about the VFW.

Keynote speaker Dennis Snow teaches conference attendees how to serve with excellence with his presentation, Lessons From the Mouse.

DOING THE AWARDS

Etraordinary

Doing the Extraordinary Award recipient Amy Butrie was nominated by her company, GDK Development Inc.

Amy Butrie with GDK Development Inc. accepts her award from Jim Backes.

Doing the Extraordinary Award recipient Talia Tran was nominated by her company, JS Foods.

Jeannette Jaraucaro, with Charton Management, accepts her award from Ord Delaney.

Talia Tran with JS Foods accepts her award from Larry Lewis.

Doing the Extraordinary Award recipient Tom Maysonet was nominated by his company, GDK Development Inc.

Doing the Extraordinary Award recipient Xochitl Lopez was nominated by her company, Are You Hungry Inc.

Doing the Extraordinary Award recipient Jimmy Harmon was nominated by his company, Bennett Management Corp.

Doing the Extraordinary Award recipient Jeannette Jaraucaro was nominated by her company, Charton Management.

Doing the Extraordinary Award recipient Lourdes (Lulu) Jimenez was nominated by her company, The Phoenix Organization.

Doing the Extraordinary Award recipient Mary Schweiger was nominated by her company, Drury Restaurants.

Lourdes (Lulu) Jimenez with the Phoenix Organization accepts her award from Russ Lo Bello.

LEADing People Tomorrow: ARL WORKSHOPS

At 18, Chris Norton suffered a debilitating spinal cord injury during a football game at Luther College in Decorah, Iowa. Despite doctors giving him just a 3% chance to ever move again, Chris defied medical odds. At the 2022 NFA LEAD Conference, Chris proved his determination and motivation by standing during his keynote address.

Franchisees Matt Bars and Russ Lo Bello present during their LEADing People to a Technological Tomorrow workshop.

Conference attendees listen in on the LEADing People Tomorrow ARL Workshops.

Conference attendees took time during the workshop debriefs to work on exercises from the previous workshop.

Dennis Snow talks about Leading a Culture of Service Excellence during his LEADing People to a Successful Tomorrow workshop.

Bennie Arbour speaks during the workshop on LEADing People to a Profitable Tomorrow.

Chris Norton provides an empowering keynote address called The Power to Stand.

Following the LEADing People Tomorrow ARL workshops, all presenters participate in a final question and answer session.

Dennis Snow talks with attendees during his LEADing People to a Successful Tomorrow workshop debrief.

Don Rheem, CEO of E3 Solutions, shares his keynote address on the scientific-backed research on retaining employees.

Denise and Mark Bangasser with DMI Manufacturing Inc. chat with franchisees at their booth in the trade show.

A vendor demonstrates his product to franchisee Scott Andrzejewski.

Mike Baab with Copesan shakes hands with Mike DeRosa, board member of the VFW Foundation.

The Atmosphere TV team is all smiles as they show off their booth at the trade show.

Leaders with Quality Dining Inc. connect over drinks during the trade show.

The 2022 NFA LEAD Conference trade show floor had over 70 vendors for BK franchisees to meet and connect with.

Lunch was available for conference attendees to grab a quick bite while visiting with business suppliers in the trade show.

Mike Leatherwood with Budderfly chats with Burger King Corp.’s Jack McCluskey.

James Fisher with Mahoney Environmental hands a franchisee his business card during the trade show.

Team members from the Ampler Group enjoy lunch at the trade show.

CLOSING COCKTAILS

BOOK SIGNING

Jen Tyler with Quality Dining Inc. speaks with Chris Norton at his book signing after his keynote address.

Patrice and Richard Santowski pick up Chris Norton’s book, complete with his signature, after general session.

Mark Beckman with Tucker Safety Products, Beth Gardner with Koala Kare Products and Jason Hayes with Tucker Safety Products pose for a photo during the Closing Cocktails event. Conference attendees network over delicious food and drinks during the Closing Cocktails event.

Brings Issues to Life for Franchisees on Capitol Hill

The National Franchisee Association’s (NFA) 2022 Day on the Hill brought franchisees and supporters to Washington, D.C., to meet with representatives of Congress to discuss important issues that are affecting the industry owners, NFA members and their businesses.

The event began with the BURGER KING Franchisee PAC Luncheon at the Hyatt Regency, where Sen. Ron Johnson (R-WI) stopped to speak. Johnson discussed issues important to small businesses. At the general session that followed the luncheon, Johnson welcomed attendees and introduced the speakers for the day.

He was followed by industry and policy experts who talked about the legislative issues the NFA has been prioritizing. The S-Corp. Association’s Brian Reardon discussed pertinent tax issues affecting franchisees and small businesses. Shannon Meade, executive director of the Workplace Policy Institute with Littler Mendelson P.C., addressed the critical labor shortage and the PRO Act. Following Meade was the National Restaurant Association’s Sean Kennedy, who touched base on COVID-19 restaurant funding and the issues surrounding supply chain. Before a break, RSI’s Rochelle Trafton and Xinyu Wang spoke about the BURGER KING® supply chain and provided a commodities update.

Later, NFA Government Relations Committee members Matt Herridge, Wyatt Batchelor and Dominic Flis provided additional information on labor issues such as the PRO Act and Employee Rights Act, tax issues and economic

relief. Sen. Mike Lee (R-UT) closed the day’s session by presenting his agenda for helping relieve franchisees and small businesses from the burdens they are facing.

The Congressional Breakfast on March 31 brought franchisees and NFA supporters together with members of Congress to discuss the organization’s legislative goals. A dozen separate groups then braved cool, windy weather to travel to Capitol Hill for morning meetings in the offices of members of the Senate, before meeting at Charlie Palmer Steak for the King of the Hill Luncheon. NFA member Ed Braddy introduced Rep. Virginia Foxx (R-NC-05) and presented her with the King of the Hill Award in recognition of her strong support for NFA legislative goals. The lunch concluded with the BURGER KING Franchisee PAC Cup Awards.

The BURGER KING Franchisee PAC Cup Contribution Award is given to the regional association that raised the most money for the PAC, and the BURGER KING Franchisee PAC Cup Participation Award is given to the association that has the highest percentage of PAC participation among its membership. Both awards are equal in stature and significance, and contributions are calculated each year. The PAC Cup Participation Award was a tie and went to the Mountain Franchisee Association and Southwest Franchisee Association, which had 69% of their members contributing to the PAC. The PAC Cup Contribution Award went to the Mid South Franchisee Association, which raised more than $60,000. n

THANK YOU TO OUR SPONSORS

New NFA Government Relations Committee Chair Dominic Flis fills out a PAC pledge form after picking up his name badge and Capitol Hill visit information at the registration desk.

PJ Foods franchisee Gary Andrzejewski shares a meal with his son, Luke Andrzejewski, during the BURGER KING Franchisee PAC Luncheon.

Steve Danon, vice president, head of U.S. government relations and community affairs with RBI, opens the PAC luncheon during the 2022 Day on the Hill.

Rep. Darrell Issa (R-CA-50) was the first speaker at the PAC luncheon.

Former NFA GRC Chair Matt Herridge converses with fellow franchisees and NFA members during the PAC luncheon.

Sen. Ron Johnson (R-WI) was the second speaker at the NFA Day on the Hill PAC Luncheon.

Franchisees used the NFA Leadership and Business Partner Forum as a time to connect with each other over drinks and food.

NFA GRC member Matt Herridge listens intently to the speakers during the PAC luncheon.

NFA franchisee Andrew Schory poses for a photo with his wife, Margie.

UPshow representative Ethan Greene connects with franchisee Richard Santowski during the NFA Leadership and Business Partner Forum.

Franchisee Matt Herridge with Charton Management chats with vendors during the NFA Leadership and Business Partner Forum.

Day on the Hill attendees listen in on what leading experts had to say on political and legislative issues.

National

Sen. Ron Johnson (R-WI) and GRC member Matt Herridge talk before general session begins.

Franchisees Richard Santowski with Kolkhorst Foods LLC and Tom Garrett with GPS Hospitality network before the start of general session.

NFA GRC member Matt Herridge and NFA Chair Dan Fitzpatrick discuss issues that are important to their businesses with Sen. Ron Johnson (R-WI).

Sen. Ron Johnson (R-WI) welcomes attendees and introduces the speakers for the day.

Executive Director of Littler Mendelson P.C.’s Workplace Policy Institute Shannon Meade and Littler Mendelson P.C. attorney Bruce Sarchet speak on the critical labor shortage and the PRO Act.

GRC members Wyatt Batchelor, Matt Herridge and Dominic Flis have a panel discussion on key labor and legislative issues. Brad Flahiff of Barnett Management Co. listens closely to the information provided during general session.

RSI’s Chief Legal Officer Rochelle Trafton and Senior Director of Commodity Analysis and Hedging Xinyu Wang speak about the BURGER KING supply chain and provided a commodities update.

Restaurant Association’s Executive Vice President of Public Affairs Sean Kennedy touches base on COVID-19 restaurant funding and the issues surrounding supply chain.

Hill Visit Group No. 1 members, Leo Leon, Glenn Levins, Eric Goldhersz, Rochelle Trafton and Dan Fitzpatrick, review their leave behinds and Hill visit information before taking on Capitol Hill.

Sen. Mike Lee (R-UT) closes out the day’s general session.

Burger King Corp.’s Eric Goldhersz and Katerina Glyptis enjoy listening to the content during general session.

During

Franchisees Mike Laird, Shirley Humerian and Brad Flahiff converse over breakfast at the Congressional Breakfast before visiting Capitol Hill.

NFA members Dominic Flis, Tom Garrett and Michael Lippert had the chance to connect with members of Congress during the Congressional Breakfast.

Congressional Breakfast attendees were invited to network and converse with members of Congress during the breakfast.

NFA Chair Dan Fitzpatrick and NFA GRC member Matt Herridge connect with a member of Congress during the Congressional Breakfast.

Members of Hill Group No. 10, including Gary Geiger, Ted Nunamaker, Andrew and Margie Schory, Rob Snyder and Ethan Greene, meet with members of Congress representing Kentucky and Idaho.

the Hill visits, franchisees were able to meet with their congressmen.

Franchisees Gary Geiger, Ted Nunamaker, UPshow representative Ethan Greene, and Andrew and Margie Schory snap a picture in front of Capitol Hill.

Franchisees Ed Braddy and Matt Herridge pose with the King of the Hill Award recipient, Rep. Virginia Foxx (R-NC-05).

Franchisee Ed Braddy introduces Rep. Virginia Foxx (R-NC-05) as the winner of the King of the Hill Award during the King of the Hill luncheon.

Rep. Virginia Foxx (R-NC-05) gives a heartwarming thank-you speech after receiving the King of the Hill Award.

Dominic Flis accepts the PAC Cup Contribution Award on behalf of Mid South Franchisee Association.

From left, Mike Laird and Amir Allison accept the PAC Cup Participation Award on behalf the Southwest Franchisee Association and Mountain Franchisee Association, which each had 69% of their members contributing to the PAC.

King of the Hill luncheon attendees enjoy a wonderful meal at Charlie Palmer Steak.

Meet the NFA Restaurant Operations Council

In each issue of FLAME 2022, the National Franchisee Association (NFA) highlights individuals who have been selected to sit on one of the NFA’s committees. This issue highlights the Restaurant Operations Council. Read on to learn more about the committee.

Shane Jacobs

Title: Franchisee

Company: Barnett Management

Number of units: 57

Year entered system: 1993

How did you become involved with the BURGER KING® brand? My mother, Shelley Krispin, started working for Tom Barnett in 1984 when he had only one location. As a child, I witnessed Tom provide professional and educational opportunities for all his employees, including paying for my mother’s MBA and ultimately providing her the opportunity to become his business partner. I worked for them during my high school years and was eventually recruited back after I spent eight years in the IT industry.

What attracted you to the brand? I witnessed the brand through the lens of Barnett Management. It was their culture that attracted me to the brand. The idea that a limitless number of opportunities would be provided to me, and the only condition was that I show up every day and work hard.

What motivated you to become involved with the NFA at this level? I was asked to join by BK® about 12 years ago after visiting our restaurants. I was 33 at the time and a bit naive about the opportunity but joined under the idea that I could learn and grow as a franchisee by engaging with others about our business. The relationships with my fellow franchisees and the lessons they’ve taught me have been some of the best experiences of my life.

What do you see as your role on the Restaurant Operations Council? I believe my primary responsibility is to give direct and honest feedback to the brand in an effort to steer them in the best possible direction for the franchisee community. This means I need to balance my personal opinions with that of the community. At times, this puts myself and my peers on the council in intense conflict with our franchisor. This is always uncomfortable but necessary for us to truly be advocates for the franchisees who aren’t in the room.

What would you most like to see accomplished during your time on the committee? I would love to see a day where a culture of operational execution is the No. 1 priority by both the Burger King Corp. (BKC) and the franchisees. I believe the first step to achieving this would be a massive effort to simplify

our operations by BKC. I also believe that we, as franchisees, own a piece of this by being present in our restaurants and supporting the restaurants teams that support us. Only then will this brand live up to its true potential.

CJ Fitzpatrick

Title: Senior Vice President

Company: Quality Dining Inc.

Number of units: 147

Year entered system: 1992

How did you become involved with the BURGER KING brand? Our family became a BURGER KING franchisee in 1981. Like several other council members — I grew up in the business.

What attracted you to the brand? BK always had the positioning with the “guest first” mentality: “Have it Your Way!” Couple that with BIG food, great taste and of course the WHOPPER®.

What motivated you to become involved with the NFA at this level? Our business is family business. The brand’s success is critical to ours. We always felt a responsibility to contribute.

What do you see as your role on the Restaurant Operations Council? Our role is fairly straightforward –provide feedback, suggestions, challenge and collaboration to move the business forward.

What would you most like to see accomplished during your time on the committee? Operational simplification. We need to provide a great experience by our team and for our guest that leads to increased restaurant profitability.

Joe

Hoffman

Title: Senior Vice President, Operations

Company: Carrols LLC

Number of units: 1,028

Year entered system: 1978

How did you become involved with the BURGER KING brand? I started as a team member in 1978.

What attracted you to the brand? The WHOPPER of course! Flame broiling and “have it your way” have always made BURGER KING unique.

What motivated you to become involved with the NFA at this level? To be engaged in making the BURGER KING brand the QSR of choice.

What do you see as your role on the Restaurant Operations Council? To improve systems and processes to better serve guests with the highest levels of quality food, speed of service, friendliness and cleanliness.

What would you most like to see accomplished during your time on the committee? Simplification of processes and menu to execute great marketing programs for our teams resulting in increased traffic.

Nicole Dreier

Title: Franchisee

Company: KRAF Inc.

Number of units: 38

Year entered system: 1997

How did you become involved with the BURGER KING® brand? My parents, Ron and Annette Broatch, became BURGER KING franchisees in 1980 in Bellingham, Washington. I worked in our restaurants growing up and started working full time after graduating college.

What attracted you to the brand? BURGER KING had the best burgers in the fast-food business. The WHOPPER beat the Big Mac. I was proud of our food and the fast-paced environment of our business has always been exciting.

What motivated you to become involved with the NFA at this level? Our group has always been passionate about our business, our operations and our teams. We felt being more involved with BURGER KING giving feedback and hearing what workstreams are on the horizon would benefit our business and our brand. We all want to be involved in BURGER KING long term and felt the investment of our time and energy would be well worth it!

What do you see as your role on the Restaurant Operations Council? I care deeply about our employees, our restaurant operations, our profitability and our brand future. In my role, I continually emphasize the need and desire to simplify operations to make the job of our employees less stressful, stay ahead on profitability and invest in the future of automation to allow us to better serve our guests and run our business with less people.

What would you most like to see accomplished during your time on the committee? I would like to see us simplify our operations — leading to a better and more consistent guest experience each visit, a better learning and working environment for our employees, and a more profitable business for our franchise owners.

Amber Avard

Title: ARL

Company: Abbott & Avard LLC

Number of units: 7

Year entered system: 1998

How did you become involved with the BURGER KING brand? I started working for BURGER KING at the age of 16 and never left.

What attracted you to the brand? I first became attracted to the brand when a BURGER KING was built in my small hometown of Ashdown, Arkansas. Prior to which, I had to drive 30 minutes to get my favorite flame-grilled burger, which is the WHOPPER Jr. with cheese.

What motivated you to become involved with the NFA at this level? I have been to several NFA Leadership Exploration and Development Conferences, which really helped me grow and further my career as a whole. This made joining this council an easy choice for me.

What do you see as your role on the Restaurant Operations Council? Currently I spend 90% of my time inside the restaurants working directly with our team members and products. Personally, I hope this allows me to bring a new perspective and fresh outlook to our meetings.

What would you most like to see accomplished during your time on the committee? I hope during my time on the committee I can give truthful feedback that will not only help simplify operations and improve profitability but also challenge myself as well.

Kevin Haas

Title: Franchisee

Company: K&JK Enterprises Inc.

Number of units: 11

Year entered system: 1986

How did you become involved with the BURGER KING brand? Our neighbor was Bill Spence, a longtime franchisee, and husband to Pam Spence, the daughter of Jim McLamore. Bill had encouraged our family to take a look at getting involved with BURGER KING. In 1986, we opened our first restaurant in Plainfield, Indiana, in front of a small up-and-coming retailer, Walmart.

What attracted you to the brand? Our family always enjoyed eating out. To this day, eating out is more than just the food. It is the experience of being together. It was always a treat to go to BURGER KING. As a child we would go to Miami for spring break, and it was always memorable to eat at BK and to get a crown. It was a privilege to become part of the BK system.

What motivated you to become involved with the NFA at this level? I was initially asked to join the council by Jim Myers. Our family has always had a great deal of respect for Jim. This is also a way I can give back and honor the many people who have helped us become successful over the years. In a way, paying it forward.

What do you see as your role on the Restaurant Operations Council? My role is to represent franchisees, above restaurant leaders, managers and team members. How can we operate a restaurant more efficiently and provide the framework for our teams to be successful every day? Running a restaurant is very challenging. I hope the council can make it a bit easier and allow our teams to focus more closely on our customers.

What would you most like to see accomplished during your time on the committee? My focus and hope from day one, is to see BURGER KING reach its full potential. Our concept and our platform are second to none. We need to provide the operational simplicity to our teams that will allow them to consistently deliver a great experience to our customers. If we can do this day in and day out, our sales and profits will grow.

Continued on page 42

Restaurant Operations

Continued from page 41

Ord Delaney

Name: Ord Delaney

Title: Director of Operations

Company: Charton Management Inc.

Number of units: 8

Year entered system: 1988

How did you become involved with the BURGER KING brand? It was my first civilian job. I got hired shortly after graduating from basic training and AIT for the army.

What attracted you to the brand? At the time, BURGER KING was a newer brand in our area. I applied for a maintenance/porter position and was hired.

What motivated you to become involved with the NFA at this level? I love operations and solving problems. This was an amazing opportunity to help the brand improve operations for the system.

What do you see as your role on the Restaurant Operations Council? My role is to partner with BURGER KING leadership and other franchisees to help find the best possible solutions and processes that will improve operations, sales and profitability.

What would you most like to see accomplished during your time on the committee? Reduce complexities in our kitchens so that our managers can learn what winning feels like. Managing a BURGER KING today is very difficult and at times, there is not much to celebrate at the end of the day. If we can reduce the complexities in the kitchen, I am confident the managers we currently have in the brand will step up to the challenge of improving operations. Once they know what winning feels like again, we will start winning as a brand!

Shanna Shere

Title: Franchisee

Company: Shere Foods

Number of units: 25

Year entered system: 2014, but second-generation franchisee, therefore, I worked in the brand my entire life.

How did you become involved with the BURGER KING brand? My father purchased his first restaurant in 1991, but after his health conditions declined about 10 years ago, I moved back from New York City to take over and grew the business.

What attracted you to the brand? It’s all I know. I grew up with it, and it was what got our family to where are now.

What motivated you to become involved with the NFA at this level? The NFA has the best interest for us as franchisees and helps to ensure our success.

What do you see as your role on the Restaurant Operations Council? I believe I bring the perspective of how marketing initiatives affect operations in my extremely high wage and cost market.

What would you most like to see accomplished during your time on the committee? To simplify operations and the menu to ensure the future success of the brand.

Jim

Backes

Title: Chief Operating Officer

Company: GDK Development

Number of units: 16

Year entered system: 1979

How did you become involved with the BURGER KING brand? I started as a crew member and have worked my way up the ladder. I have held all restaurant and above restaurant positions.

What attracted you to the brand? The WHOPPER and the ability to work with a national chain to advance my career.

What motivated you to become involved with the NFA at this level? I am interested in seeing the system grow. Our best opportunity is with a focus on operations. The NFA is a great organization with members sharing a common vision. Working together we can accomplish our goals.

What do you see as your role on the Restaurant Operations Council? Sharing my thoughts and those of other franchisees in my area with the leadership team at BK. This helps us come together on moving the business forward. We have a great group of leaders involved with the Restaurant Operations Council, and we all bring different experiences and ideas to the table.

What would you most like to see accomplished during your time on the committee? To improve our operational systems to make them easier and more consistent throughout the entire system. We need our guests to see this in the daily operations of all the restaurants in the system.

Paul

Scordia

Title: Franchisee

Company: Scordia Restaurant Group

Number of units: 11

Year entered system: 1993 as a franchisee. 1975 as a BKC employee.

How did you become involved with the BURGER KING brand? I started working as crew member in New York in 1975.

What attracted you to the brand? It was going to be a summer job between my junior and senior year at St. John’s University. Turned out to be my career.

What motivated you to become involved with the NFA at this level? Want to do my part as a member of the BK franchise community.

What do you see as your role on the Restaurant Operations Council? Giving feedback with the rest of the OPS Council to help improve and simplify our operations.

What would you most like to see accomplished during your time on the committee? Continuous operational improvement/simplification.

Michael Lippert

Title: President

Company: GPS Hospitality

Number of units: 417

Year entered system: 2016

How did you become involved with the BURGER KING brand? Tom Garrett and I worked together for many years in another brand. A few years after becoming a franchisee with BURGER KING, Tom presented me with the opportunity to join him at GPS.

What attracted you to the brand? I grew up in Miami Beach, Florida, and have been eating at BURGER KING since I was a child. I always believed that BURGER KING was the best hamburger and for over 40 years, the WHOPPER has been my go-to when I eat a burger.

What motivated you to become involved with the NFA at this level? The brand has an incredible amount of talent at the franchisee level. My goal is to contribute where possible based on industry experience. And at the same time, take advantage of the wealth of brand knowledge to learn as much as possible about the brand and its rich heritage.

What do you see as your role on the Restaurant Operations Council? To assist in guiding brand decisions that will impact our teams in our restaurants, ultimately impacting our guests. I see my role as helping to ensure that we strike the right balance every time.

What would you most like to see accomplished during your time on the committee? A solid natural collaboration between the brand leadership and franchisees who do exactly what I stated in my previous response.

Jordan Drury

Title: Franchisee

Company: Drury Restaurants

Number of units: 36

Year entered system: 1972

How did you become involved with the BURGER KING brand? My grandfather, Jim Drury, started our first location, No. 1094 in Cape Girardeau, Missouri, because he loved

the WHOPPER and the brand.

What attracted you to the brand? It was an up-and-coming franchise that competed with McDonald’s. We wanted something that complimented our hotel complexes and the land we owned that sat off the interstate exits. BURGER KING was a perfect fit for both.

What motivated you to become involved with the NFA at this level? Mostly I wanted to help where I could, collaborate and share best practices with other franchisees and ultimately, learn as much as I can. I hear a lot of good ideas from our staff here at home, and I wanted to bring those ideas before the committees.

What do you see as your role on the Restaurant Operations Council? Give honest feedback, even when it goes against the grain. Our jobs are to be honest and, moreover, realistic about ideas that are considered for the field. We want what’s best for the stores and those who run them.

What would you most like to see accomplished during your time on the committee? To show the brand that we can be outstanding with a simple menu and very limited couponing, if we do the right things right. We should be focusing on making the best food possible served by the best people in the industry. n

The Restaurant Operations Council Committee also includes Jonathan Aliabadi, Andrew Geiger and Bill Thompson.

MORE: WWW.RTI-INC.COM/BURGER-KING

Enhancing Business Performance with RSI’s Profit & Loss Tool

RSI’s profit and loss (P&L) benchmarking tool is one of the most trusted and essential vehicles for RSI and Burger King Corp. (BKC) to access a large sampling of restaurant data to accurately determine the profitability of BK® restaurants. It also plays an integral role in identifying areas for improvement and cost-savings opportunities. BKC leverages the data collected through the tool to evaluate market position and make strategic brand decisions that can improve your bottom line while members can use the data to pinpoint and precisely target areas of margin/profitability improvement.

Here are a few good reasons to join the more than 190 members already submitting their data through the P&L benchmarking tool:

• Your P&L data is a key measure that BKC uses to determine restaurant profitability across the BURGER KING® system.

• BKC leverages P&L data to implement brand decisions that can increase your profitability by improving your bottom line.

• You can utilize the data to target areas of margin/profitability improvement.

• Use your benchmark charts to identify trends and compare your restaurant costs and profitability to other restaurants in the system by region, sales brand (ARS), DC, DMA and National Average.

• P&L dashboards are available to all RSI members on RSI Web.

From Outputs to Actionable Insights, Here’s How It Works:

“Our restaurant has been using the P&L benchmarking tool for years. It is one of the many fantastic tools on RSI Web that we use to monitor and evaluate different aspects of the business. In our current environment, we all need to focus on our profitability to see where we are excelling and where we have opportunities for improvement. What we have found useful and highly recommend is using this tool alongside another franchise group. Throughout the year, we meet periodically with another BURGER KING franchisee, and we analyze the different variables impacting our profitability. It allows us to work together to identify gaps and areas of improvement. Once you determine an underperforming area, you can dig in further to figure out what you and the other franchisee are doing differently. This has led to great discussions on pricing, labor allocation and control, vendor programs and more.”

Driving Profitability Through Purpose-Driven Data

Data has the power to transform how we organize, operate and create value across the BK system, within regions and at the individual restaurant level. RSI’s P&L benchmarking tool can help you do all of that, but it requires your data and active participation that can then be used to identify possible cost drivers that have the potential to positively affect your profitability.

Get Started Today!

Join the hundreds of operators who are submitting their data to RSI and experience for yourself how the business-critical insights are helping drive the innovation, efficiency and savings required to protect and improve your bottom line, especially during these challenging times.

• Connect with our P&L team at

– Nicole Dreier, BURGER KING franchisee 25 years in the BK system 36 restaurants across Arizona

PLData@rsilink.com to get started.

• Email and attach your P&L statements (no need to reformat) in common data file formats (e.g., .xls or .csv), and RSI will map your data to match its chart of accounts. n

Celebrating the Class of 2022: Over $4.6M in BURGER KING Foundation Scholarships Awarded

This spring, the BURGER KINGSM Foundation celebrated another record-breaking year of awarding scholarships to nearly 4,000 students and BURGER KING® employees across North America!

Over the last decade, the foundation has awarded $35 million in scholarships to college-bound seniors and employees hoping to create a brighter future through education with no plans of stopping.

The foundation wouldn’t be able to do this without the support of the BURGER KING system and is so grateful for its franchisees, vendor partners and the McLamore family. This year, the foundation expanded scholarship awards and worked hard to celebrate the accomplishments of the BK® team members, their families and high school seniors across the U.S. and Canada who we proudly call our BK Scholars.

Look at some of the celebrations highlighted below!

Craig Loo and his team at BK No. 7774 surprise both Emaleigh Kennedy and Gracyn Stewart with scholarships in Kirksville, Missouri.

Joshua Pryce and Ariel Lor, both children of employees of Ambrosia QSR at BK No. 6802 in Cottage Grove, Oregon, celebrate another year of receiving BURGER KING Foundation Scholarships.

Dennis Dostie and Matt Ernst award Deidra Meyer with one of three $50,000 Whopper Awards in Amery, Wisconsin.

The GPS Hospitality team at BK No. 3662 celebrates Cesar Lopez Landaverde in Marietta, Georgia.

Be Aware of These Sales Tax Pitfalls for Restaurants 3

Sales tax seems straightforward, right? If you know your sales tax rate, you simply multiply it by the amount of sales for the period, fill out your return and send off the money. Easy peasy! Not so much.

Here are three challenges our sales tax experts have identified as particular issues for our restaurant clients:

1Marketplace Facilitators

A “marketplace facilitator” is a business that facilitates the sale of another company’s products. One of the responsibilities of a marketplace facilitator might include remitting sales tax on its sales. Or maybe not. It depends on the state’s rules (each state is different) and the vendor.

How does this affect you? Many restaurants use delivery services such as DoorDash, Grubhub and Uber Eats. These companies may be considered marketplace facilitators, which is where the challenge starts creeping in.

If the delivery service does remit sales tax on its orders, a common problem is that those sales are often also counted by the restaurant when calculating its sales tax. That means both parties paid the sales tax on the same orders, resulting in an overpayment by the restaurant. Multiply that by many delivery orders over many months and you start to see how this problem can mushroom very quickly into some significant dollars. Then imagine how hard it might be to go back to recalculate the correct amount of sales tax and then retrieve the overpayment from the state

and local taxing jurisdictions. Once the government has your money, it’s reluctant to give it back.

Even if your state requires marketplace facilitators to remit sales tax, not all delivery services take on that responsibility. It’s up to the restaurant to know which services are remitting sales tax and which ones aren’t.

How do you know? You need to do the research. Start with the vendor contract, which should outline who’s responsible … but as you know, people don’t always follow through on their contractual obligations. Your next step is to contact the vendor to confirm whether they’re keeping up their end of the bargain. And recognize that just because they’re remitting sales tax this month doesn’t mean they’ll still be doing it a few months from now, so you need to check back in regularly to confirm. Look at the billings you receive from delivery services – in detail – to ensure you’re not overpaying or underpaying your sales tax.

by STACY SMITH

As mentioned above, different states treat marketplace facilitators in different ways. Some states specifically exclude restaurants and food sales from these rules, meaning only the restaurant is responsible for remitting sales tax. Some states have a specific threshold – either a certain dollar amount of sales or number of transactions – that triggers the sales tax responsibility for a marketplace facilitator.

When it comes down to who’s responsible for ultimately paying sales tax, it’s your restaurant. Don’t assume that the delivery service is taking care of it, because any delinquent tax and penalties will be your responsibility.

2 Rate Monitoring

If you’ve been in business for a while, you know that sales tax rates change frequently. It’s your responsibility to keep up with updated rates, which can be a bit like going on a treasure hunt. Not only does your state charge sales tax, but you’re responsible to other taxing jurisdictions, including your county, city and locality. According to the nonprofit taxfoundation.org, in 2021 there were more than 11,000 sales tax jurisdictions in the U.S., with widely varying rates.

To complicate an already complicated system, not everything is subject to sales tax at the same rate. Some jurisdictions add on extra assessments for sodas and other sugary drinks, for example. Some jurisdictions tax food eaten inside a restaurant different than carryout meals. Legislators are notorious for taxing new and interesting things all the time.

Usually, taxing authorities will send a notification of updated rates. So be sure to keep up with your snail mail and email. But also keep up with your local news outlets because you may not receive a personal notification. Our sales tax expert told us of a large metropolitan city that decided a few years ago to assess a special tax that only applied to restaurants … but then didn’t tell anyone. So periodically check the websites of your taxing authorities to ensure you’re up to date and make corrections quickly. Those penalties can add up!

DRIVE-THRU INSIGHTS REPOR T

3Use Tax

Use tax – sometimes called “compensating use tax” – is a type of tax paid when sales tax has not been assessed. It happens more commonly with online purchases from out-of-state vendors who either don’t charge sales tax or don’t charge the appropriate amount. Refer to No. 2 above – sometimes it’s hard to know the correct sales tax rate for a particular jurisdiction!

The purpose of use tax is to protect your state’s businesses from unfair competition from out-of-state businesses that don’t collect sales tax. It also protects your state’s tax coffers. If sales tax was not assessed on a purchase, your business is responsible for filing a use tax return and paying the appropriate rate.

You may think your business is not subject to sales tax – after all, you’re purchasing food for resale. But if your business is the final consumer of equipment, fixtures, tools or other noninventory items, you’re responsible for ensuring that sales (use) tax is paid on those purchases. This especially comes to light when you’re in a restaurant remodeling project. Depending on your state’s rules, use tax may also apply to digital purchases such as software.

Use tax returns are due periodically, just like sales tax returns. Some states combine sales and use tax reporting and other states separate the reporting and remittance of these taxes.

Sales tax can be complicated, and it’s important to pay attention to the rules to ensure you’re reporting and remitting the correct amounts. n

STACY SMITH, CPA, is a shareholder of Mize CPAs Inc. – a full-service accounting firm that has provided the Elevanta accounting and payroll solution since 2003.

Cyber Liability Risks Restaurant Owners Face

Over the last few years, franchises have become a favorite target of cyber criminals. Hackers have stolen password credentials, franchise business records and customer credit card data from some of the biggest names in the industry. The consequences of a hack are serious.

Consider these recent statistics:

• The average cost of a data breach for small- to mid-sized businesses was $105,000 in 2021, up from $101,000 in 20201.

• Small businesses are three times more likely to be targeted by cybercriminals than larger companies2

• One in five organizations had at least one account compromised in 20213

If you are startled by these statistics, you’re not alone. A recent U.S. Small Business Association survey found that 88% of small-business owners felt their business was vulnerable to a cyber-attack.

Reducing your Restaurants’ Cyber Exposures

The risks of a cyber-attack are something you can’t afford to ignore. Most attacks are the result of a business being unprepared to handle common threats. By taking proper action, you will significantly minimize your risk. Implement these tips:

1. Protect Your Computer Systems

Protecting your computer systems from these threats requires the right combination of tools. A firewall is essential to keep cyber criminals from accessing multiple systems through a single vulnerability. Antivirus software is needed to stop intrusions and sound the alarm if an attack is successful.

2. Practice Good Password Security

Always choose strong passwords, use different passwords for each system and update passwords that are old or compromised.

3. Perform Maintenance and Updates

Plan for software updates as systems age and make sure critical security update patches get installed right away.

4. Schedule Regular System Backups

Perform regular backups for any important data and systems.

5. Hold Cyber Risk Awareness Training

Employees know they should avoid a suspicious email but spotting today’s most common phishing tactics is getting more difficult. Train employees on what to look for and how to stay safe.

6. Create a Cyber Response Plan

Having a plan makes it easier to identify when there’s been a breach and gives you the tools to act quickly to minimize the damage.

7. Add Cyber Liability Insurance Coverage

A cyber security incident can have a far-reaching impact on your business, and the risk is always there, even with all the right protections in place. Cyber liability insurance coverage can help minimize your exposure, cover your costs and allow you to recover more quickly.

Understanding Cyber Liability Coverage

Like you have plans in place for business incidents of all kinds, Cyber Liability has coverage in place for cyber incidents of all kinds.

• Your largest fryer goes out and causes your business to close. You call your go-to repairman to replace it.

o Cyber Liability comparison: System damage and business interruption. When a computer system disruption prevents you from conducting business and results in the loss of income and extra expenses, Cyber Liability covers the cost.

• A burst pipe leaves an inch of water throughout your building. You call the restoration company to clean the carpets and restore your space.

o Cyber Liability comparison: Data restoration expense. Pays for the expenses associated with restoring data, software or firmware that is corrupted or damaged due to a cyber-attack.

• A disgruntled customer rants on social media and the local news outlet picks up the story. You reach out to your lawyer to see how to respond.

o Cyber Liability comparison: Incident response. To handle the aftermath of a cyber-attack, specialists are called upon, including defense counsel, crisis management, initial response guidance, IT forensic investigation, notification services, public relations and more.

• You ask an employee to place an ad about a job fair. In the ad, they talk badly about a competitor who then sues you for defamation. You contact your lawyer.

o Cyber Liability comparison: Multimedia liability. Covers you for lawsuits stemming from claims of copyright infringement, trademark infringement and defamation arising out of your company’s electronic publishing.

• You discover an employee has been stealing food, alcohol and tips. You fire them, following HR guidelines.

o Cyber Liability comparison: Cyber theft and social engineering loss. Covers your businesses for incidents of social engineering or fraudulent use of your business computer system that result in fraudulent funds transfers from the bank.

Cyber Liability Insurance for Your Franchise

Because of your business’s unique vulnerabilities, franchises will likely continue to be a favorite target of cyber criminals. But it’s within your control to make your systems more secure and minimize your own risk.

Contact co-brokers Lockton Affinity and Elevanta to learn more about cyber liability insurance and cyber security resources that can help protect your business. Visit Elevanta.LocktonAffinity.com to learn more. n

1 Kaspersky. “Managing the Trend of Growing IT Complexity.” Kaspersky, 5 Oct. 2021.

2, 3 “Barracuda Networks.” Volume 7 – March 2022 | Barracuda Networks. www.barracuda.com/spearphishing-vol7.

The Elevanta Insurance Program is administered by Lockton Affinity LLC d/b/a Lockton Affinity Insurance Brokers LLC in California #0795478. Coverage is subject to actual policy terms and conditions. Policy benefits are the sole responsibility of the issuing insurance company. Coverage may be provided by an excess/surplus lines insurer which is not licensed by or subject to the supervision of the insurance department of your state of residence. Policy coverage forms and rates may not be subject to regulation by the insurance department of your state of residence. Excess/Surplus lines insurers do not generally participate in state guaranty funds and therefore insureds are not protected by such funds in the event of the insurer’s insolvency. Elevanta will receive a royalty fee for the licensing of its name and trademarks as part of the insurance program offered to the extent permitted by applicable law.

West Coast employers have been dealing with a new era of workplace litigation since the start of the pandemic, one that features increased claims, higher settlement demands and more aggressive plaintiffs’ counsel – and if past trends hold true, businesses across the country may soon also face the same fate.

That’s according to the results from the most recent Fisher Phillips (FP) Flash Survey, where nearly 350 employers across the country provided their insights to Fisher Phillips in March. Also notable from the survey: Employers in the retail, hospitality, health care and staffing fields have been more acutely impacted by what some fear may be the “new normal” in workplace litigation.

Here are the four most intriguing conclusions gleaned from the survey results:

1 West Coast Employers Have Borne the Brunt of the Litigation Explosion.

While only 28% of employers across the country reported an increase in the number of workplace-related lawsuits since the pandemic started, that figure nearly doubles to 43% when focused just at employers on the West Coast. In fact, almost 20% of those businesses in the Pacific area (mainly California, Washington and Oregon) noted a “significant” increase in the claims faced over the past two years.

Similar figures emerge when examining the amount of compensation sought in employment-related filings and settlement demands. Just a little over one in four (28%) report having experienced a mild-to-significant increase in the amounts sought by plaintiffs, but 39% of employers on the West Coast have seen such a spike.

Meanwhile, only 21% of Midwest employers reported an increase in the number of claims filed, and that number declines even further for those in the South (18%), Atlantic (17%) and Mountain (16%) areas.

But that’s not to say that employers in these locations will be spared from the onslaught. “With increased protections of employee rights under both state and federal laws – not to mention state and federal legislation to limit the enforceability of arbitration agreements – employers across the country should be prepared for more lawsuits over the next few years,” says Kristen Nesbit, a Fisher Phillips partner based in Los Angeles who regularly litigates employment matters on the West Coast and across the country.

West Coast Workplace Litigation Explosion May Soon Spread Across Country

“These will include harassment and retaliation claims based on sex and disability, and wage claims as a result of decisions that employers made over the last few years due to COVID layoffs, remote work and vaccine mandates.”

by ANDRIA RYAN by HAGOOD TIGHE

2 List of Industries Experiencing Litigation Boom Includes Usual Suspects – and Some Surprises.

It will probably come as little surprise that employers in the retail, hospitality and health care sectors are in the top five when it comes to examining which specific businesses have felt the litigation boom described above. Nearly half of retailers (46%) and hospitality employers (45%), and more than a third of health care organizations (37%), have seen an increase in workplace-related lawsuits since the start of the pandemic. While it’s been a particularly difficult two years for these businesses, these findings show that their pain has been compounded by employment-related court battles.

Adding further insult to injury is the amount sought in lawsuits and demands against employers in these industries. An astounding 56% of hospitality businesses reported seeing an increase in the amount of compensation demanded in workplace-related disputes, and those in the retail (46%) and health care (37%) spaces have faced a similar fate.

But also dealing with an increase in employment litigation are industries that you might not expect to see in the top five. Forty-four percent of staffing/professional employer organization (PEO) businesses report an increased number of claims and higher compensation demands, as have 40% of businesses in the technology sector. “Some PEOs reported a decline in the quantity of Employment Practices Liability Insurance (EPLI) claims during the pandemic. That trend appears to have reversed in recent months, perhaps due to courts resuming normal operations,” says John Polson, an Irvine-based Fisher Phillips partner and management committee member who co-chairs the firm’s Staffing and PEO Industry Group.

3

Plaintiffs’ Counsel Have Gotten Even More Aggressive on the West Coast and in Claims Against Certain Industries.

A disturbing fact of life since the start of the pandemic has been the increase in the number of news reports and social media videos depicting people acting out in public – on airplanes, at the grocery store, in parking lots. But the FP Flash Survey reveals that this level of vitriol has unfortunately also reached the world of workplace litigation. Twenty-nine percent of employers have seen an increase in the level of aggression from plaintiffs’ attorneys in workplace lawsuits since the pandemic started, including 40% of businesses on the West Coast. “We are seeing unreasonably aggressive demands and irrational positions being taken by plaintiffs’ attorneys in litigation,” says Danielle Moore, an FP partner based out of San Diego who has a heavy docket of West Coast litigation. “It’s been disappointing and frustrating to also see an increase in the overall complete lack of professionalism and civility that has traditionally been expected amongst professionals and required by the rules of court.”

And the same industries that have faced a spike in claims and compensation demands have also faced a more aggressive plaintiffs’ bar. By industry, the employers that have seen a mild-to-significant increase in the level of aggression from plaintiffs’ attorneys in workplace claims includes:

• Staffing/PEO: 55%

• Retail: 54%

• Hospitality: 42%

• Technology: 40%

• Transportation: 38%

• Health care: 37%

4 Hospitality Sector and West Coast Employers Have Had to Dig Deep to Settle Workplace Claims.

More than four in 10 employers in the hospitality space (42%) report that they have had to pay out increased settlements to resolve workplace disputes since the pandemic started. This figure leads any other industry, including manufacturing (29%), technology (27%), transportation (25%) and retail (23%).

The massive boom in litigation against hospitality employers can likely be traced to two factors. The flood of ADA Title III accessibility lawsuits – which has not slowed at all – and the fallout from having to lay off, reduce and furlough large numbers of employees at the start of the pandemic.

Just as with prior findings, it comes as no surprise that West Coast employers also report the highest incidence of increased final settlement amounts in workplace claims. One in three employers on the West Coast (34%) say they have had to pay out mild-to-significantly increased settlement amounts to resolve workplace disputes in the past two years, compared to a quarter of Atlantic-area employers (24%) and a far-fewer grouping of employers elsewhere (17% South, 15% Midwest and 13% Mountain).

We will monitor these developments and provide updates as warranted. n

ANDRIA RYAN is the co-chair of the Fisher Phillips Hospitality Practice Group, and HAGOOD TIGHE is the co-chair of the Fisher Phillips Wage and Hour Practice Group. Contact them at alureryan@fisherphillips.com or htighe@fisherphillips.com.

The Zenput Operations Execution Platform

In addition to Zenput’s core platform, which Burger King franchisees can now access, Zenput also offers solutions to support automated temperature monitoring and food prep labeling. Contact sales@zenput.com for more information.

Service Vs. Hospitality

The “Be Our Guest” Attitude

One of the most popular songs from the Disney film, “Beauty and the Beast,” was the song, “Be Our Guest.” Belle, the heroine of the film, is enthralled by the magical preparations of a spectacular dinner as the animated candelabra, Lumiere, sings “Be Our Guest.” It’s a fitting song for a Disney film since the company has a long history of referring to its customers as “guests.”

Service Vs. Hospitality

Walt Disney’s philosophy at Disneyland was that they didn’t have customers, they had welcome guests. Keep in mind that prior to Disneyland, amusement parks were often dirty and unsafe places, staffed by gruff, surly employees. Walt’s vision was for Disneyland’s visitors to feel that they were guests in his home, and he expected every cast member to treat them that way.

This wasn’t going to be a transactional or “service” mindset that you could find at any carnival where they simply take your ticket and you ride a ride. At Disneyland the focus is on the interaction and relationships (in other words, “hospitality”) with the guests and delivering an overall experience that makes every guest feel like they are family as opposed to just a visitor in the park.

While Walt’s philosophy for service has remained in place decades beyond his passing, the details of the service philosophy have evolved to include the following guidelines:

• Make eye contact and smile.

• Greet and welcome each and every guest.

• Seek out guest contact.

• Provide immediate service recovery.

• Display appropriate body language at all times.

• Preserve the “magical” guest experience.

• Thank each and every guest.

Let’s break each one of those items down because in reality, there’s no reason you can’t apply them to your own operation.

by DENNIS & DANNY SNOW

Make eye contact and smile. Some of these are just so basic that you’d think they would be standard practice within every single organization. This is probably the easiest one on the list and requires little to no effort. Making eye contact with a customer shows you’re present and focused only on them. I’m not talking about getting into a staring contest. I’m talking about letting the customer know that they have your full attention. And a sincere smile says that you’re there to serve.

Greet and welcome each and every guest. Disney does this for hundreds of thousands park visitors per day combined across all Disney parks around the world. Now, they have an incredibly large number of cast members (employees) to help accomplish this goal, but this is a worthy goal for any organization to strive for. While it’s highly unlikely that every employee will be able to greet every guest that comes through your door, it’s important that someone greets them. If everyone on your team is on

the lookout to interact and welcome a guest, odds are someone is going to make contact along the way.

Seek out guest contact. This builds on the greeting of every guest. Have everyone on the team be on the lookout to engage your customers in one way or another. Disney cast members trade pins with kids and adults, offer to take photographs so everyone in the party can be in the picture, joke with a rival sports fan if they’re wearing sports attire or strike up conversations about where someone is visiting from. These often occur in a matter of seconds as guests are moving through the lines.

Provide immediate service recovery. Disney cast members are empowered to provide immediate service recovery (within reason). If a child drops his/her ice cream cone, a cast member can go and get a new one for them at no charge. Or, if a guest is upset about something, cast members can get them prime seating for a show in the park. More often than not, just listening to a guest complaint and offering suggestions can help to resolve the issue.

Display appropriate body language at all times. This is another easy one that we should all be able to achieve. I get that being on your feet for hours at a time can be challenging. Sometimes we’re just having a crummy day and our facial expressions and body language make it easy for everyone around to tell. I’ve had those days, and I know that you have as well. But at Disney, when you’re onstage the show is on, and your body language and facial expressions must be open and welcoming no matter what. Backstage problems and concerns are to stay backstage.

Preserve the “magical” guest experience. At Disney, the entire focus is on delivering an outstanding experience for their guests. Every single one of their cast members knows that they play a special role in delivering and preserving the Disney magic. For example, complaining about personal or job-related issues while in front of guests is unacceptable. Guests should never see backstage areas such as broom closets, breakrooms, etc.

Thank each and every guest. easy. Yet, how many companies have you frequented that didn’t thank you? No matter what, we should always take a moment to thank our customers for visiting us or shopping with us. Customers should feel that you appreciate their business and feel valued. Thanking customers doesn’t necessarily mean saying “thank you” every time, it’s more the idea of a fond farewell at the conclusion of an interaction. One of the options Disney cast members have is to say, “Have a magical day” as a way of saying thank you.

Customer Vs. Guest

The image of a customer is often one of a transactional nature. The company provides a service or product, and the customer gives the company money.

But the image of a guest is very different. It’s the difference of how you might treat a door-to-door salesperson versus how you treat an invited guest to your home.

When a guest is visiting we are likely to do the following to leave them with a positive impression of their experience with us:

• Clean the house, put out the good china and plan the meal around the likes of our guests.

• Greet them at the door with a warm welcome and a sincere smile.

• Invite them in enthusiastically.

• Do everything we can to make them feel comfortable.

• Keep them entertained.

• Invite them to come back.

be our guest

The guest philosophy is applicable to any business, whether you call your customers clients, members, patients, residents or customers. Thinking of customers as guests helps to move away from a task mindset to a mindset focused on building relationships.

Imagine if your customers were treated that way during every interaction with your organization. Imagine how they would feel about your company and how they would describe it to others. Imagine how it would affect their loyalty.

I’m not advocating actually starting to refer to your customers as guests, although I’m not against it. What I’m advocating is adopting the mindset of treating customers as welcome guests. That mindset can’t help but change the way a company interacts with its customers.

Are you inviting customers to “Be Our Guest?” Are you treating them that way? 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

The First Act in Leadership:

Clarifying the Quest

Aquest is a journey to prove yourself capable of fulfilling your purpose.

If you expand that to a group of people or to an entire organization or an entire society, then a quest becomes a journey to mutually prove yourselves capable of fulfilling the group’s, organization’s or society’s purpose.

Before establishing a plan or writing something or organizing a meeting, the first step is to clarify the quest. The leader might be the one who states it for the first time, or

it might be someone from within the group that states it first, or it might be someone from outside the group who states it first. It doesn’t matter who establishes the quest. The key is that it is clear for everyone to understand.

Without a clear quest the words become just rhetoric. The efforts as a group become meaningless. The focus becomes diluted. And nothing really gets accomplished. The individuals don’t know why they are together, and they don’t how they are going to accomplish anything meaningful. It becomes a social group and then eventually disperses.

by DAN COUGHLIN

The Quest Questions to Answer

There are two essential questions to answer:

1. What meaningful purpose are we trying to fulfill?

2. What is the journey that we need to fulfill that purpose?

Whether the leader comes up with the answers or someone else does is not the important thing. The important thing is that the quest must be clear. The answers to those two questions need to be clear.

Once these answers are clear, the leader can begin to influence the group in many important ways toward being successful on the quest. We will focus on those actions in later articles. However, without a clear quest, there is nothing for a leader to do.

Not All Quests are Created Equal

Some quests bring out remarkable efforts and passions from people, and some are meaningless duds. You need a purpose that really resonates with people. It must hit them right between the eyes and deep into their hearts.

And then you must describe the journey that people are going to have to go on to fulfill that purpose. Do not sugarcoat the journey. If the purpose is great enough, people will go on almost any journey. If the purpose is meaningless, people won’t get off the couch.

The first action of the leader is to keep clarifying a remarkably important purpose and the journey it will take to fulfill that purpose.

What is the quest you are leading people on?

Now let’s make this as real and as relevant as we can.

In your work, what quest are you on? What is the purpose you want to fulfill, and what is the journey that you and your team members need to go on to fulfill that purpose?

Is this purpose so meaningful and so relevant to your group that it is willing to go on the journey that is required to get there?

That’s it. Don’t overcomplicate this step. Talk with your team members, people throughout your organization, your customers and your prospects. Find out what people are really thinking and feeling.

Take out a sheet of paper and write down the incredible purpose that you want fulfilled. Talk about it with people. See if it resonates. Keep honing it. Make it something truly noble.

And then talk about the journey – what it’s going to take to fulfill that purpose.

This is the first act of leadership. n

Since 1998, DAN COUGHLIN has worked with serious-minded 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.

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UPSKILLING:

Four Simple Steps Toward Upgrading Your Work

In a rapidly changing environment, it’s no surprise that new “buzzwords” occasionally pop up on your bingo card. One recent example is upskilling. At first glance, the definition seems obvious, but it means more than you might think – especially after our shared ordeal with the COVID-19 pandemic. These days, we all need to take the time to upskill and refresh our work habits, which the World Economic Forum predicts will raise the global GDP by up to $6.5 trillion by 2030.

Upskilling involves taking your work to the next level, to better fit your job’s current and future needs. It’s not good enough to just tread water. You must consistently work to advance your

career, if only to keep pace with change. The white-collar professional never really stops learning. Here are a few tips to make sure you’re advancing as you should.

1Keep working on your people skills. Soft skills like emotional intelligence, willing cooperation and tact have always had a place in our field. As we evolve more toward remote and hybrid work environments, these will be more important than ever for camaraderie and a sense of teamwork.

by LAURA STACK

2 Hone your communications skills. Again, this skill has always been important, but has become increasingly essential as the workplace evolves. On a conference call, and even to some extent on a videoconference, you don’t always have the social cues that let other people pick up on the nuances of your messages, and vice versa. You certainly don’t with email or IMs, so take some time to learn how to state your opinion or the facts simply and clearly, whether verbally or in writing. This will cut down on misunderstandings, bottlenecks and roadblocks.

4Keep educating yourself. Whether it’s getting a new license or certification, taking a continuing education class or learning the latest programming language, don’t hesitate to do it. I joined a forum and learned how to start and run a nonprofit. It may involve pushing yourself out of your comfort zone or paying for it yourself, but if it will advance your career, it can be worth the cost and effort.

Upskilling is vital unless you want your career to stall. And frankly, it mostly consists of simple things you should do anyway. Some, like training, may be covered by your organization, and some you can do during downtime and breaks, like keeping up with your reading. Upskilling doesn’t have to be hard; you just need to keep at it and not get complacent. What can you do to shake things up? n

3 Read, read, read. It’s especially important to read widely in your field, so you can keep up with new developments and make contributions to your organization. But also read widely in other fields, including fiction and current events. Creative applications may help you handle a tough problem at work, and planting ideas in your subconscious mind can result in new, profitable concepts as the ideas cross-fertilize.

© 2022 Laura Stack. 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, Wal-Mart 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.

Take some time to learn how to state your opinion or the facts simply and clearly, whether verbally or in writing.

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