Flame 2022, Issue 4

Matt Herridge

Executive Editor

mherridge@charton.biz

304-865-2222

Rachel Jackson

Editor-in-Chief rachelj@nfabk.org

Allison McCallum

Communications Editor allisonm@nfabk.org

Jared Johnsen Communications Specialist 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

Kevin Newell

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

Sanjay Patel

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 OHIO RIVER

C.J. Timoney

Josh Lephart

SOUTHERN CALIFORNIA

Shirley Humerian

TABLE OF CONTENTS

2022 Issue 4

ON THE COVER

— A Passing of the Torch by Jared Johnsen, Communications Specialist

24 Year in Review

contributed by the BURGER KINGSM Foundation

26 The WHOPPER Turns 65 by Allison McCallum, Communications Editor

30 Reduce Employee Turnover With a Work Ethic Integrity Assessment contributed by TraitSet

31 The Whopper to Reducing False Alarm Fees With Human Detection and AI Technology contributed by Envysion

32 Meet the NFA Marketing Council Committee

36 Remembering Mike Novak, Notable RSI Chairman

38 Don’t Get Burned by Pay Transparency by Douglas H. Duerr, Elarbee Thompson Sapp and Wilson LLP

40 RSI Recognizes Suppliers for Their Role in the Path to Resiliency

contributed by Restaurant Services Inc.

42 Employment Practices Claims and Your Franchise contributed by Lockton Cos.

44 The Actions of Leadership: Reinvigorate Yourself by Dan Coughlin, The Coughlin Co.

46 Hire Hourly Employees Faster With Texting and Automation Tools contributed by Workstream

47 The Customer Is Not Always Right by Dennis Snow, Snow & Associates Inc.

48 What’s Next? Four Productivity Predictions for 2023

by Laura Stack, The Productivity Pro®

50 Preventing Fraud From the Counter to the Computer contributed by Mize CPAs

FROM THE CHAIR

Remembering 2022 and Looking Ahead to 2023

AsI write my colum for this issue of the Flame, we are certain to be engulfed in the hustle and bustle of holiday activities with family and friends. For many others, it will also wind up another business year. This time of year seems to call us to reflect on the past year yet simultaneously encourages us to look forward with optimism and hope as we welcome a new year.

For the BURGER KING® brand, 2022 will likely be marked as a challenging year in our history. The headwinds of a tough sales environment from the beginning of 2022, coupled with an inflationary cycle not seen in nearly 40 years, put tremendous financial pressure on the business. Cost pressures and challenging sales environments are not new to our brand, but the sheer speed, size and magnitude of cost increases simply posed unique challenges. Cost pressures were not felt in one discrete part of our business but rather came at us from everywhere: the cost of labor, commodities, utilities, insurance, real estate taxes — you name it — costs were on the rise. Left unchecked, the cost pressures could, and in some cases did, overwhelm the four corners of the P&L.

This past spring, BURGER KING Corp. (BKC) and your National Franchisee Association (NFA) began a series of meetings and discussions to address both the present and long-term issues of the brand. The essence of this work was to discover and create a new multi-year strategical approach to elevating the brand’s performance on multiple metrics. The first and most important course was to get sales moving which would entail a new approach to the overall marketing of the BURGER KING brand.

A new marketing agency, a new brand positioning, more resources against basic advertising, moderation of price-point advertising and a focus on core attributes of our food offerings were put in place this Fall. Sales results improved in the last few months of the year. This is an important sea of change in our performance that is necessary to restore strength to our brand. However, this improvement in sales cannot be deemed sufficient, as significant improvement in sales is required to bend

the cost curve towards stronger and sustained profitability.

The NFA continues to work side-by-side in a cooperative way with BKC management and leadership to refine our plans for the future with a clear view to improve restaurant-level cash flow.

One of the key elements was a historic alignment between the franchisor and our franchisees around restaurant-level cash flow. As you all know, future contributions and commitments on behalf of the franchisees are tied to achieving restaurant-level cash flow milestones. Never before in our history has there been alignment on the importance of restaurant-level cash flow. However, we now have in effect a contractual commitment that ties each party to focus on improved cash flow production.

Although the plans on the marketing front show early signs of success, it will take broader performance in the areas of guest experience, the image of restaurants and more to strengthen our brand and facilitate a broad-base recovery.

I have long maintained that the consummate representation of the brand is a single BURGER KING restaurant. It is up to us as franchisees and operators to improve our execution at the restaurant level on a much more consistent basis in order to bring the best representation of the brand to our guests. Many programs to support these efforts are in the final stages of implementation which will begin in earnest as we turn to 2023. It is my hope that all of us take an opportunity to realize the promise of these plans and activities.

Also in 2023, we remember those franchisees who have passed away, marking their memory and joining with their families to provide comfort to those who mourn for them.

Most recently, our former colleague, Mike Novak, passed away. Mike was an active participant and leader in our community. Mike was active on the NFA board as well as at RSI. Mike was a good franchisee who cared about our brand and was an outstanding steward for all who worked in his organization.

In addition, we also mourn the loss

of several other franchisees during this past year: Stanley Smiedt, Patrick Sidhu, Rich Kostel, Mac Mohiuddin and Bob and Freida Wallstein. May we honor all of their contributions to this brand in our own daily work as we send our thoughts and prayers of comfort to the families who have been left behind.

by DAN FITZPATRICK

In addition to our franchisees, I also want to especially recognize a friend to the BURGER KING system, United States Congresswoman Jackie Walorski from Indiana. Jackie was my congressional representative from the Second Congressional District in Indiana. Far more importantly, she was a friend to me, to our organization, to small businesses, to our military, to families, children and schools and to virtually anyone who was in need.

This past summer, Jackie and three of her colleagues were tragically killed in a head-on car crash while Jackie was doing her important work in the second district. Jackie’s sudden and tragic passing literally shocked the state of Indiana and the halls of Congress. Jackie was beloved by many for who she was and what she did. Jackie was the epitome of the servant leader, someone who cared more about you and what you needed than any personal need. In February 2020, we honored Jackie Walorski as our “King of the Hill” as a member of Congress who best represented the type of leadership on the Hill that was helpful to our businesses. Jackie leaves behind an incredible legacy and an inspiring life of service which all of us could only hope to imitate.

Finally, as we all hope for a prosperous and peaceful 2023, it is my sincere hope that all of you enjoyed the best of this holiday season with your family. Here’s to a great 2023! n

Note: This column was written and submitted in December 2022.

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 THE CEO

The Good, the Bad and How to Grow for the Future!

As we close another year, there are many mixed emotions with saying goodbye to another 12 months of our lives. At the end, we can look back with happiness, gratitude, sorrow, regret, hopefulness, hopelessness, excitement, anticipation, anxiousness and many other feelings depending on our personal experiences. For the NFA and Elevanta, there were many highs, some lows and many feelings in between. How we choose to handle the difficult days is what sets us, and the NFA and Elevanta, apart from other organizations.

Let’s start with our communications department. First, NFA’s Flame magazine once again won the APEX award for publication excellence. This was a high for the NFA and our internal communications department as it demonstrates the true talent of our team and the professionalism in which the team and NFA operates. Communications is one of the key pillars of service NFA provides to members and the Flame is the heart of our communication. While the team experienced this success in 2022, we also experienced transition within the team. While we are sad to lose staff, we are excited, hopeful and fortunate to have new staff to join our team and continue to support our internal goals of providing outstanding communications to all NFA members and Elevanta clients.

Our health insurance program has been NFA’s flagship member service program for almost two decades. Several years ago, the program faced hardships and completely transformed to a financially successful program, providing coverage to thousands of employees across the BURGER KING and restaurant industries. On the heels of COVID-19, the program, like the entire healthcare system, experienced our highest volume of claims in years, creating some days and weeks of anxiousness and concern. Fortunately, the Elevanta Board and professional staff have managed the program closely over the past few years and created a financially strong company and processes that were able to withstand the higher claims. Now, after an entire year of increased claims activity, the program is stabilizing and the waters

are calming. While the consequences of the pandemic will linger and continue to impact the healthcare system for some time, NFA and Elevanta will remain vigilant and stay the course through determination, hard work and resilience.

NFA LEAD was held in June 2022 and delivered our best educational and motivational program of events since LEAD began in 2019. Our speakers inspired attendees, and our business partners provided support and a trade show full of opportunities for franchisees and above-restaurant leaders. Yet, the weeks and days leading up to this important program were plagued with nervousness and concerns due to the considerable labor shortage facing our members along with significant economic factors making the overall travel experience more expensive. In a year when franchisees told us they wanted to send their teams to LEAD more than any other year, they found themselves choosing between staffing their restaurants or providing the important development opportunities LEAD affords. While many franchisees sent attendees, more stayed behind in their restaurants in 2022. While the event was extremely successful and filled attendees with a variety of emotions that reinvigorated them to return to your businesses and help you run amazing restaurant operations, there was also a feeling of sadness and despair because so many of your above-restaurant leaders were not able to attend. Hopefully, 2023 finds everyone in a better operational situation, allowing more attendees to experience everything LEAD has to offer.

NFA held our important Day on the Hill event in Washington, D.C., in the Spring of 2022. During this event, franchisees and business partners met with key legislators to discuss important issues and how they impact franchisees, small-business owners and the restaurant industry. With mid-term elections in 2022, it was important for your voices to be heard! Your Government Relations Committee carried your messages to representatives throughout the year including an in-person meeting in July, along with

virtual meetings and one-on-one meetings back in your districts. There was hope in November, and while we were successful in making some changes and saw pro-business officials elected, it was not the victory we had planned or hoped for. Talk about emotions that were up and down for days and even weeks as the election results were finalized! One could look at the hard work that went into the election and advocacy efforts of the franchisee community and simply want to give up. That, however, is not a choice or option. Your NFA remains more committed than ever to advocating for small business and will continue to work on your behalf in 2023.

by CHRISTY WILLIAMS

Finally, there was significant loss in 2022. The NFA and BURGER KING family lost several key franchisees throughout the year. These losses have had a significant impact on fellow franchisees. In addition to losing franchisees, who were like family to so many in the system, many of you also lost family members and close friends in 2022. Several of your NFA and Elevanta staff lost family. The past three years have included more sadness, confusion and feelings of loss and hopelessness for so many. Yet, you persevere and look to the future.

This is what is so special to the ending of a year. It is over … not to be repeated. We learn from the good and the bad, we celebrate the achievements and beat ourselves up over our mistakes. Yet, we know there is a fresh, new start awaiting us as soon as the clock strikes midnight on January 1st each year. Character and success are not developed from what we experience but rather how we handle these events and grow from them. As we close the door on 2022 and look to a new year, let’s grow from the difficult and positive days we experienced and prepare to make 2023 the best year ever for the BURGER KING community and NFA! n

TOMS King Crowns the VFW With $75,000 Donation

BURGER KING® franchise, TOMS King, continued its involvement with the Veterans of Foreign Wars (VFW) by contributing over $75,000 to its cause.

On Oct. 18, BK® store No. 9511 in Salem, Ohio, hosted a ceremony where TOMS King COO Erin Hasselgren presented a large check representing the generous donation to VFW Post 892 and District Six Commander Douglas Brannon.

The money was raised for the organization’s Unmet Needs program, a service for active-duty soldiers, veterans and their families that provides funds to assist them with basic living necessities.

Also in attendance were Regional Vice President Rich Nottingham, Senior District Manager Stefanie Seither, several local TOMS King leaders, VFW members and the Salem crew members. The funds were raised in July with 125 participating BURGER KING stores asking their guests for a donation at the end of each transaction.

“As a veteran myself, it was really cool to see other VFW members of all backgrounds and ages sharing stories with one another,” Digital Sales and Marketing Coordinator, Steven Bugenske, said.

The Salem store was recognized for raising the most funds for the charity, and crew members were also acknowledged at the event. In gratitude for the staff’s achievement, Hasselgren and Bugenske also deep-cleaned the back of the restaurant.

“It's the least we can do to show appreciation to our restaurant crew,” Hasselgren said. “It was a little fun, too.”

TOMS King CEO Matt Carpenter is a VFW board member and has been personally involved with the organization for several years.

“We are honored to help in any way we can to support the needs of our treasured veterans and military families," Carpenter said.

TOMS King has been fundraising for the VFW since 2017, raising over $370,000. In appreciation, VFW members have conducted an American flag-raising ceremony at several restaurant grand openings, and local VFW chapters were presented with donations.

The BK franchise plans to continue its involvement with the nonprofit and hopes to touch the hearts of more veterans. n

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Veterans of Foreign Wars (VFW) members posing with their substantial contribution.

“We are honored to help in any way we can to support the needs of our treasured veterans and military families.”

– TOMS King CEO Matt Carpenter

GPS Hospitality Celebrates 10 Year Anniversary

On Oct. 19, GPS Hospitality, one the nation’s largest franchises of BURGER KING®, Popeyes Louisiana Kitchen® and Pizza Hut®, celebrated the 10th anniversary of the company’s founding.

“A decade ago, I founded GPS Hospitality on three core values – being goal-focused, people-oriented and service-obsessed,” Tom Garrett, CEO of GPS Hospitality, said. “Living these values has been the key to our success and growth over the last 10 years and will continue to be the direction that we move torward into the next decade.”

In 2012, GPS Hospitality opened with the acquisition of 42 BURGER KING restaurants located throughout the metro Atlanta area. Ten years later, GPS Hospitality has expanded its portfolio to include Pizza Hut and Popeyes and now operates nearly 500 restaurants in 13 states and has over 12,000 employees.

“GPS Hospitality has grown exponentially throughout the years,” Garrett said. “The company has expanded our brands, made 19 acquisitions, opened 51 new stores and served over 500 million guests. We are truly grateful for the journey and look forward to what lies ahead for the entire GPS family.”

“We have so much to be proud of since GPS Hospitality’s inception in 2012,” President Michael Lippert said. “We’ve reached this milestone through the hard work and dedication of the entire GPS team. By keeping guests top of mind, we’ve been able to not only grow as a company but also help so many GPS team members achieve personal and professional growth. This anniversary has allowed us to reflect on the many goals we’ve achieved over the last decade, and we look forward to many more years of success ahead.”

Part of GPS Hospitality’s 10-year anniversary celebration has included stops to some of its many restaurant locations. Through these visits, the GPS Hospitality Support Center team has been able to connect with local restaurants and honor the 59 employees who have been with the company since its inception. Internal recognition and rewards are part of GPS’ commitment to being people-oriented, working toward not only company success but the growth and success of every team member. n

JSC Management Group Shows Customer Appreciation With Coupon Campaign

BURGER KING® franchise JSC Management Group is spreading holiday cheer with a coupon campaign as a thank you to its loyal guests.

Called the Royal Gift Exchange, the campaign’s goal is to show gratitude by giving a scratch-off coupon with every purchase. When scratched off, it reveals a complimentary menu item. Customers could win an array of items from a cookie to a WHOPPER® Jr.

“All of our local store marketing and community engagement campaigns are centered around our commitment to valuing our local guests, our restaurant employees and the communities in which we serve,” said JSC Management Group Marketing Director, Nicoletta Cammilleri.

This period of giving started and ended in December with the coupons expiring in March, allowing the consumer ample opportunity to have a menu item with no charge. Having the coupon expiration in March is done in hopes that they may help increase foot traffic during the slow season.

The campaign covers each JSC Management Group BK®. They have locations in the New York and New England areas with the majority of them in Rhode Island.

“Everything we do, we do company wide,” Cammilleri said. “We want JSC Management Group to be recognized for its quality as much as BURGER KING is.”

“At JSC Management Group, we are committed to a higher standard of excellence,” Cammilleri said. “We are proud to be part of our restaurants' communities and care about giving back!” n

The front of the coupon given to customers during the Royal Gift Exchange campaign.

BK® crew members celebrating the company’s anniversary.

MATFA Takes on Baltimore

On Oct. 11-12, the Mid-Atlantic Franchisee Association (MATFA) had its annual meeting at the Sheraton Baltimore North Hotel in Baltimore, Maryland. The event contained many informational sessions from the National Franchisee Association (NFA) and BURGER KING® leaders, as well as exhibit halls where franchisees could network with the vendors and sponsors who support the NFA.

The first day of the meeting started with breakfast with opening remarks from MATFA Chair Gary Andrzejewski. Following were presentations by Elevanta CEO and NFA Executive Director, Christy Williams, NFA Chair Dan Fitzpatrick, Capitol Solutions CEO Misty Chally, Restaurant Operations committee member, Jim Backes, and many vendors.

The second day’s general session had presentations from BKC representatives Katerina Glyptis, Julia Oswald and Eduardo Serafim and RSI CEO Joel Neikirk.

The meeting was sponsored by several vendors, including Acrelec, Budderfly, Elevanta Health, Keurig Dr Pepper, Restaurant Technologies, Tapcheck, The Coca-Cola Co., Vericast and Xenial.

Stay tuned for updates from the NFA with information regarding your regional association’s meeting. n

Regional Events

Jan. 11-13

Florida Caribbean Franchisee Association Joint Regional Meeting with Mid South Franchisee Association

International Beach Resort

Sunny Isles Beach, Florida

Jan. 29-31

Great West Franchisee Association

Joint Regional Meeting with Mountain Franchisee Association, Southern California Burger King Franchisee Association and Southwest Franchisee Association

Hyatt Regency Indian Wells

Palm Springs, California

March 14

Mountain Franchisee Association

Regional Meeting

The Capitol Grille Denver, Colorado

MNYFA Meets in Atlantic City

The Metro New York Franchisee Association (MNYFA) held its annual meeting on Nov. 2-3, at the Resorts Casino Hotel in Atlantic City, New Jersey. The two-day event featured updates and informational sessions from the National Franchisee Association (NFA), BURGER KING® Corp., Restaurant Services Inc. (RSI) and key vendors. Franchisees were also invited to attend a trade show, giving them the opportunity to network with other franchisees and vendors who work with the NFA.

The first day of the meeting began with opening remarks from MNYFA Regional President Amir Syed, followed by vendor presentations from The Coca-Cola Co., Lineage Logistics and Budderfly. After vendor presentations, franchisees were invited to join sessions on the Reclaim the Flame initiative, the Royal Reset and other pertinent information regarding brand updates.

The second day began with vendor presentations from Dr Pepper, Chargenet and Restaurant Technologies, followed by more updates for franchisees regarding digital execution and restaurant technology. To end the meeting, Joel Neikirk, RSI CEO, addressed NFA franchisees, and Syed closed the session by announcing the new regional president for MNYFA is Sanjay Patel of Devs Foods LLC.

This meeting was sponsored by our partners, including The Coca-Cola Co., Keurig Dr Pepper, Budderfly, Lineage Logistics, Restaurant Technologies and Chargenet. n

March 15

Southwest Franchisee Association Meeting

Arizona Restaurant Association

Phoenix, Arizona

March 26-28

Ohio River Coalition Joint Regional Meeting with Mid-Atlantic Franchisee Association and Great Mid-West Coalition

Seelbach Hotel

Louisville, Kentucky

National Events

Feb. 8-9

Elevanta Board Meeting

The Ritz-Carlton

Atlanta, Georgia

Feb. 22-23

RSI Board Meeting

TBA

Miami, Florida

March 6

NFA Board Orientation

NFA Office

Atlanta, Georgia

March 7-8

NFA Board Meeting

The Ritz-Carlton

Atlanta, Georgia

May 17-18

RSI Board Meeting

TBA

Miami, Florida

TBD

Elevanta Board Meeting

Virtual

May 22-23

NFA Board Meeting

The Gaylord Texan

Dallas, Texas

May 22-26

NFA LEAD Conference

The Gaylord Texan

Dallas, Texas

Franchisee to Franchisee Forum

Preparing for the holidays is difficult in New England. November and December are historically very busy months followed by our slowest quarter, starting in January and going through March. We begin by projecting our monthly sales by restaurant and reviewing the staffing levels that may be needed for the anticipated sales uptick while being aware we can’t overstaff given sales fall off in January, and mother nature can throw some curve balls. While we are optimistic that the BKC infusion in the ad fund should increase traffic during the November/December time frame, we haven’t seen the traffic-generating tactic for the first quarter that is so critical. We are also facing a minimum wage increase to $15 per hour starting Jan. 1, that will affect our pricing strategy going forward.

– Stanley Paulauskas

The holidays always offer an opportunity for us to revisit guest-service strategies. Not only will we see more guests in our restaurants but also encounter a more stressful environment. Our guests and fellow team members will often be dealing with the hectic nature of the season, and a smile or kind word can go a long way. The simple reminder of the need for patience is a great idea for each member of our team.

- Matt Herridge

What steps does your business take to prepare for the holidays?

The first thing I try to do is get holiday bonuses and gifts completed for employees. I know how important bonus money is for some of our staff, and I want to make sure we take care of them. We also make it a fun time by decorating the store. We have yearly decorations that the managers use to engage staff. For Halloween, we send out costume guidelines early, so employees can dress up if they want.

Typically, we see a good sales day on Halloween, so we try to work on that schedule early to accommodate needs. As for Thanksgiving and Christmas, we stay closed, so our employees can enjoy the holiday with their families.

We use a fiscal year, so we make sure maintenance and equipment needs are ready for the end of the year and going into the new year.

We stress customer engagement to our teams during this hectic part of the year. We want to make sure they provide an upbeat attitude and make dining with us an enjoyable experience.

– Naveen Mohiuddin

good begins with a seed.

Support the Vendors

That Support Your Association

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concern for owners/operators. Operators are becoming more deliberate in the areas of focus for their restaurants. Simply, they are looking for opportunities to manage costs and increase revenue all while providing an amazing customer experience. As technology advances operators are able to leverage their POS (and video) to audit their locations for data-led findings vs. assumptions. From executing health and safety precautions, monitoring open/close times, addressing Speed of Service and Order Accuracy, to ensuring teams are implementing new payment, dining and food pick-up procedures, every area counts when running an efficient and successful operation. DTiQ customers have realized great success maximizing visibility into how their locations are operating while streamlining their workforce. The creation of course-corrective action plans have led to improved performance, ensuring each location is in compliance of restaurant procedures and policies.

How Operators Are Acing Their Restaurant Audits

2.Know When Potential Risks Arise

How Operators Are Acing Their Restaurant Audits

Doing more with less is not a new challenge for the restaurant industry. However, managing more locations with less available resources is a growing concern for owners/operators. Operators are becoming more deliberate in the areas of focus for their restaurants. Simply, they are looking for opportunities to manage costs and increase revenue all while providing an amazing customer experience. As technology advances, operators are able to leverage their POS and video systems to audit their locations for data-led findings versus assumptions.

Here are seven sure-fire ways to not only ensure your restaurant audit is a success, but also improve your bottom line and drive sales.

1. Increase Visibility into Operations and Compliance

From executing health and safety precautions, monitoring open/close times and addressing speed of service and order accuracy to ensuring teams are implementing new payment and dining and food pick-up procedures, every area counts when running an efficient and successful operation. DTiQ customers have realized great success maximizing visibility into how their locations are operating while streamlining their workforce. The creation of course-corrective action plans have led to improved performance, ensuring each location is in compliance of restaurant procedures and policies.

Doing more with less is not a new challenge for the restaurant industry. However, managing more locations with less available resources is a growing concern for owners/operators. Operators are becoming more deliberate in the areas of focus for their restaurants. Simply, they are looking for opportunities to manage costs and increase revenue all while providing an amazing customer experience. As technology advances operators are able to leverage their POS (and video) to audit their locations for data-led findings vs. assumptions. From executing health and safety precautions, monitoring open/close times, addressing Speed of Service and Order Accuracy, to ensuring teams are implementing new payment, dining and food pick-up procedures, every area counts when running an efficient and successful operation. DTiQ customers have realized great success maximizing visibility into how their locations are operating while streamlining their workforce. The creation of course-corrective action plans have led to improved performance, ensuring each location is in compliance of restaurant procedures and policies.

Here are three sure-fire ways to ensure your restaurant audit is a success and also improve your bottom line and drive sales.

Here are seven sure-fire ways to not only ensure your restaurant audit is a success, but also improve your bottom line and drive sales.

of data. DTiQ’s POS integration feature enables alerting and reporting based on criteria like transaction type, amount, cashier number or even motion. DTiQ’s system is intelligent, knowing when to alert and what exceptions in typical transactional activity are found.

2022

3. Eliminate Surprises

Going virtual is a fast and easy way to enable teams to “see” what’s happening across their regions. Make sure to have mobile apps for the district or regional managers, head office and other key personnel so they can log on and see what’s happening. Through reporting, metrics will be crystal clear when fewer employees are managed locally. One DTiQ customer couldn’t believe that he was able to receive data in his inbox – it was that simple!

1. Get helpful reports with relevant information: Increasing visibility into operations and compliance by going virtual is a fast and easy way to enable teams to “see” what’s happening across their regions. Make sure to have mobile apps for the district or regional managers, head office and other key personnel, so they can log on and see what’s happening. Through reporting, metrics will be crystal clear when fewer employees are managed locally. One DTiQ customer couldn’t believe that he was able to receive data in his inbox — it was that simple!

1. Increase Visibility into Operations and Compliance

DTiQ’s intelligent video management platform offers:

DTiQ’s intelligent video management platform offers:

• Mobile app for every user

• Mobile app for every user

• Single sign-on to view all locations

• Single sign-on to view all locations

• Transaction, traffic and video dashboards

• Transaction, traffic, and video dashboards

• Analytics of productivity, loss and theft increase

• Analytics of productivity, loss, and theft increase

Going virtual is a fast and easy way to enable teams to “see” what’s happening across their regions. Make sure to have mobile apps for the district or regional managers, head office and other key personnel so they can log on and see what’s happening. Through reporting, metrics will be crystal clear when fewer employees are managed locally. One DTiQ customer couldn’t believe that he was able to receive data in his inbox – it was that simple!

DTiQ’s intelligent video management platform offers:

• Mobile app for every user

• Single sign-on to view all locations

• Transaction, traffic, and video dashboards

• Analytics of productivity, loss, and theft increase

Get data faster by leveraging smart tools that integrate multiple solutions into a streamlined view of data. DTiQ’s POS integration feature enables alerting and reporting based on criteria like transaction type, amount, cashier number or even motion. DTiQ’s system is intelligent, knowing when to alert and what exceptions in typical transactional activity are found.

2.

Know when potential risks arise:

Get data faster by leveraging smart tools that integrate multiple solutions into a streamlined view of data. DTiQ’s POS integration feature enables alerting and reporting based on criteria like transaction type, amount, cashier number or even motion. DTiQ’s system is intelligent, knowing when to alert and what exceptions in typical transactional activity are found.

3. Eliminate Surprises

It’s unrealistic that you’ll get a clear and accurate picture of your location’s operations from one person’s observations. Verify processes are running smoothly with random, objective reports from a certified third-party auditing company. More often than not, human bias will always come into play when observing others and impact the accuracy of their reports. Features like DTiQ’s video favorites feature puts the same camera view, like drive-thrus, from every location into one at-a-glance dashboard so any team member can jump in and spot-check performance.

3. Eliminate surprises:

It’s unrealistic that you’ll get a clear and accurate picture of your location’s operations from one person’s observations. Verify processes are running smoothly with random, objective reports from a certified third-party auditing company. More often than not, human bias will always come into play when observing others and impact the accuracy of their reports. Features like DTiQ’s video favorites feature puts the same camera view, like drive-thrus, from every location into one at-a-glance dashboard, so any team member can jump in and spot-check performance.

It’s unrealistic that you’ll get a clear and accurate picture of your location’s operations from one person’s observations. Verify processes are running smoothly with random, objective reports from a certified third-party auditing company. More often than not, human bias will always come into play when observing others and impact the accuracy of their reports. Features like DTiQ’s video favorites feature puts the same camera view, like drive-thrus, from every location into one at-a-glance dashboard so any team member can jump in and spot-check performance.

Setting your business up for success with an intelligent video management service and remote SmartAudits™ or in-person mystery shops help ensure your locations have successful restaurant audits. An intelligent video management service will provide insights needed for your managers to continually create a consistent, elevated customer experience that will be sure to encourage loyalty and higher average tickets for the long run. Is your video management service doing that for you?

Set your business up for success with an intelligent video management service and remote SmartAudits™ or in-person mystery shops to help ensure your locations have successful restaurant audits. An intelligent video management service will provide insights needed for your managers to continually create a consistent, elevated customer experience that will be sure to encourage loyalty and higher average tickets for the long run. Is your video management service doing that for you?

DTiQ is a Sapphire partner member of the National Franchisee Association. The company may be reached at 800-933-8388 or www.dtiq.com.

DTiQ is a Sapphire partner member of the National Franchisee Association. The company may be reached at 800-933-8388 or www.dtiq.com.

Setting your business up for success with an intelligent video management service and remote SmartAudits™ or in-person mystery shops help ensure your locations have successful restaurant audits. An intelligent video management service will provide insights needed for your managers to continually create a consistent, elevated customer experience that will be sure to encourage loyalty and higher average tickets for the long run. Is your video management service doing that for you?

DTiQ is a Sapphire partner member of the National Franchisee Association. The company may be reached at 800-933-8388 or www.dtiq.com.

One topic: 10 facts

The Supply Chain and the Obstacles in Its Way

1 The No. 1 cause of global supply chain disruptions is mergers and acquisitions at 66%. Other common causes of supply chain disruption include extreme weather (41%), factory fires (37%) and business sales (33%)

2 Supply chain disruptions can cause a massive 62% loss in finances.

3 Ninety-five percent of restaurants have experienced significant supply delays or shortages of key food items in recent months.

4 Twelve percent of supply chain managers experienced heavy disruption in 2022.

5 Fifty-six percent of consumers encountered out-of-stock food items due to supply chain issues.

6 On average, U.S. retail operations have a supply chain accuracy of only 63%

7 Forty-three percent of small businesses don’t track their inventory.

8 Spending on food service accounts for 52% of all food and beverage spending.

9 While improved compared to previous months, the current rate of inflation is 7.1%

10 Eighty-five percent of customers want to see a reduction in the costs of goods in 2023.

Note: These facts are from December 2022.

Sources: Zippia, National Restaurant Association, Seeking Alpha, Finance Online

Navigating Earned Wage Access Options

Keys to finding the right solution for BURGER KING® owners and your employees.

Earned wage access (EWA) is the increasingly accepted term referring to an employee’s ability to access a portion of earned wages in between pay periods. EWA is not a loan but an advance payment on funds available in the employees next paycheck.

Financial technology advancements have allowed for significant growth in EWA solutions. However, increased input from state and federal regulatory agencies suggests that employers need to carefully consider which solutions most closely adhere to their guidance.

Green Dot powers rapid!’s disbursement platform and has delivered billions in payouts for some of the largest companies on the planet, including Uber and Apple. rapid! offers employers a full range of payment solutions designed to improve financial wellness for their employees, help reduce costs and streamline payroll administration. Its solution suite includes:

• rapid! PayCard – providing a comprehensive PayCard program for employers converting to electronic payroll delivery and offering industry-leading features like automated inventory control, cash back rewards, interest-bearing savings and mobile onboarding.

• rapid! OnDemand – helping enable employers to allow employees to gain access to earned wages between pay cycles.

• rapid! Disbursements – empowering employers to enable employees to get paid how they like with a wide range of payment options that fit the needs of an evolving workforce, including through real-time, electronic off-cycle payments.

It is not necessary to utilize a third-party solution to fund an employee account or have direct access to their bank account. An employer funded solution minimizes fraud, abuse and privacy concerns. It also eliminates an employee from entering into legally binding agreements allowing access to personal information, hidden fees and wage assignments.

Additionally, deducting the transactions and any fees from payroll and showing them as line-item deductions on the pay statement keeps everything fully transparent and employment centric, clearly differentiating an employer-based solution from other direct-to-consumer or hybrid options. Independent studies show employees prefer payroll deductions as their payment method for their voluntary benefits.

Look for a solution that allows the employer control over percentage of employee’s net-earned wages is available, frequency of access and minimum amount available. Employers should be able to establish different policies if needed for any regulatory differences by state or based on events or usage. This process further minimizes any risk of how the amount was calculated.

Ninety-three percent of employees currently receive direct deposit of their paycheck to a bank account. Avoid solutions that force an employee to get a new account or card because this can create friction and potential for fees. Over 90% of employees want/need their money instantly, and they want it where they can use it. Adding an additional wallet or card account in the mix creates an additional step and cost to get the funds to where they are needed.

Given the many options available and an evolving regulatory environment, it is critical for an employer to consider which option is right for them, their clients and employees. When it comes to employee pay and benefits, security and compliance should be the driving factors.

More questions?

Payroll professionals must do their due diligence when it comes to any matter involving employee pay. Fortunately, rapid! is here to answer any questions you may have about rapid! OnDemand.

rapid! is a partner of the National Franchisee Association providing member services for the NFA and Elevanta. The company may be reached at 888-828-2270 or email sales@rapidpaycard.com.

2022 BKC Convention Recognizes Annual Award Winners

On Sept. 7-9, BURGER KING® Corp. hosted its 2022 BURGER KING Global Convention where the company welcomed franchisees, suppliers and corporate staff members from all over the globe to the Mandalay Bay Resort and Casino in Las Vegas, Nevada, to update and rally the BURGER KING community.

The convention recognized suppliers and franchisees with awards for their overall performance, development and other initiatives. Some categories included Global Franchisee of the Year, North America Franchisee of the Year, Marketer of the Year, Royal League Winners, Developer of the Year and many more.

Sanjay Patel of Devs Foods LLC took home two major awards, including North America Franchisee of the Year for 50 or

North America Franchisee of the Year

50 or More Restaurants

Sanjay Patel

Company Name: Devs Foods LLC

Year you became a franchisee: 2007

Number of restaurants: 58 locations

State your restaurants operate in: New Jersey, New York, Connecticut and Pennsylvania

Number of restaurants your company opened in the past year: Four restaurants

more restaurants, as well as North America Developer of the Year. Patel has been a franchisee since 2007, operating 58 locations with four new locations in 2023.

Some of the international winners include Spain winning International Operator of the Year and International Franchisee of the Year for a large market. Chile took home the International Developer of the Year for a small market, and the International Developer of the Year for a large market award went to India, which in 10 months went from zero to 130 restaurants.

Read on for more information about NFA member Sanjay Patel of Devs Foods LLC who won Franchisee of the Year and Developer of the Year.

How has BURGER KING changed and evolved since becoming a franchisee? BURGER KING changed with the change in times. It has evolved as a larger player in the QSR industry and has made sure that its franchisees are part of the growth.

The company has become more innovative through Kiosk, double drive-through lanes and remodeling to the new image of the retro logo. Putting out new products like the Impossible WHOPPER® and chicken fries are other ways to meet customer appeal and bring BK to the front of their minds.

What do you feel is the biggest challenge facing franchisees? Every franchisee has a different set of challenges. Some may believe competition; some say financing concerns, and some say retention of good employees.

I say challenges are a mix of all the above three in different proportions at different times.

What sets your organization apart? The team: Together everyone achieves more.

Tell me more about your team and how they contribute to setting your organization apart from others. The team is our key to progress. We progress when they progress. We motivate them, and they learn more and teach their juniors more. Then we see the results.

What is your typical day like? Challenging. Challenges are how we learn something new every day.

What is the best decision you have ever made in business? Buying four bankrupt BURGER KING restaurants in 2007.

If you could go back in time what is one piece of advice you would give yourself? Family first. Give them more time!

How do you measure growth? Based on the timespan our team members have been with us.

What drew you to the BURGER KING brand? The brand itself!

How did you become a BK® Franchisee? I started as a team member in 1998 with the BURGER KING location by my house in Piscataway, New Jersey. I climbed up the ladder: crew member to an hourly manager, then manager to district manager on to director of operations then to franchisee in 2007.

What are your goals for 2023? Build and remodel more restaurants.

What is your favorite item on the BK menu? The Original Chicken Sandwich

Complete the sentence. If I weren't a franchisee, I would be a... Nothing comes to my mind! Because I was destined to be a franchisee, and I believe in destiny. n

Sanjay Patel (center) of Devs Foods received the award for the North America Franchisee of the Year for 50 or more restaurants from members of BK corporate.

Franchisee of the Year

Gary Geiger receives his green jacket signifying franchisee of the year (20-49 stores).

Franchisee of

Bill Jones receives his green jacket signifying franchisee of the year (medium market).

International Franchisee of the Year

BK Spain’s team celebrates as they receive the International Franchisee of the Year Award (large market).

International Developer of the Year

Royal League of the Year

for $10,000 for being awarded the 2022 Overall

BK India accepts the award for International Developer of the Year (large market).

Chris Johnson receives a check

Royal League Winner.

Kevin Fernandez accepts the 2022 Opening of the Year Award from members of BK Corp.

Location Management Software Is the Next Evolution of Lease Admin

Like many multi-location operators, Mandy Henrikson relied on spreadsheets to keep track of a portfolio of leased properties. However, she didn’t have confidence in that system because there was too much margin for error.

“If I accidentally clicked in the wrong cell or entered an incorrect date, then it was way too easy to make mistakes,” Henrikson said. “And if I didn’t remember to check the spreadsheet once a month and make sure I was on track for leases, I felt like I might be missing something.”

The truth is there were three spreadsheets: one for lease dates, one for rent escalations and one for critical clauses. And as a result, every conversation with a landlord required her to cross-reference all those documents.

That combination of uncertainty and disconnected data was risky. As the chief operating officer for Pacific Beach Tan, a Palm Beach Tan franchisee in Portland, Oregon, Henrikson needed to mitigate risk. So, she searched for software to help her manage all the data points in those spreadsheets.

Henrikson initially looked at basic lease administration software but quickly realized she needed something more. That’s when she discovered the concept of “location management software.”

What Is Location Management?

At its core, lease management software stores lease data and reminds users about rent increases and lease expirations. But lease admin is only foundational functionality. There are dozens — potentially hundreds — of other things you need to track, remember and monitor to run a portfolio.

That’s why multi-unit operators need location management software.

Location management covers all standard lease admin and accounting needs. But it does more by reducing friction and keeping every business-critical, time-sensitive event in one place.

A location management system enables collaboration with internal and third-party stakeholders and is the sole source of truth about the portfolio. For example, as a commercial tenant, the information you store might include dates and documents related to everything from franchise agreements and insurance policies to HVAC maintenance and license renewals.

Moving Beyond Spreadsheets

After exploring various options, Henrikson selected Leasecake to help her manage the Pacific Beach Tan portfolio. It was such a good fit for the company that she was eager to tell her peers about the benefits of location management software.

As a Palm Beach Tan Franchise Advisory Council member, Henrikson supports the community by sharing ideas to help other franchisees. After using Leasecake, she reported to the group that

this type of software streamlined operations and improved efficiencies in a variety of use cases:

• Managing occupancy costs.

• Reconciling CAM.

• Tracking lease renewals.

• Validating current rent amounts and increases.

• Reviewing percentage of lease cost per square foot across locations.

• Monitoring when it’s time to:

º Remove a personal guarantee.

º Reduce a security deposit.

º Add a franchisor rider.

º Review signage requirements.

Shawn Clagg of Suveto had a similar experience when the company entered a growth phase.

Suveto is a network providing ownership benefits to veterinary professionals while relieving them of the responsibility and obligation of owning a practice. Acquiring multiple clinics in a year significantly impacts Suveto’s accounting team. One of the top priorities is ensuring they never miss a renewal option. But the tipping point was when the CEO asked a simple question about the exercise date for a location, and they found that looking for the answer took too long.

“That delay in locating a single date prompted us to search for a solution,” Clagg said. “Gathering information isn’t tough, but organizing that info and keeping track of critical events is even harder. And I don’t know anything that does it better than Leasecake.”

Clagg says the power to collect and organize lease documents is reason enough to use Leasecake. But what’s even more critical for Suveto is the accounting layer that helps them with ASC 842 compliance.

“Without good software, it’s out of control,” Clagg said. “If you have even one lease, you’re better off outsourcing the work to Leasecake.”

Lease Admin Plus So Much More

No matter what business you’re in, if you lease or own commercial real estate, you must keep track of the building, the equipment and the people. Using purpose-built location management software will make you more productive and profitable and give you a competitive advantage.

“If a franchisee is looking for something that keeps it simple and has multiple uses, then Leasecake is what they need because it’s lease administration plus so much more,” Henrikson said. “Whether it’s for their CFO, accountant, director of real estate or facilities manager — the platform keeps everyone organized, on track and compliant.”

Leasecake is a Sapphire partner member of the National Franchisee Association. The company may be reached at 407-559-2581 or www.leasecake.com.

REMEMBERING Rep. Jackie WALORSKI

NFA’s Queen of the Hill

Indiana Congresswoman, Jackie Walorski.

On Aug. 3, Rep. Jacqueline “Jackie” Renae Walorski tragically passed away as a result of a two-car, head-on collision. Also in the vehicle were her Communications Director Emma Thomson and St. Joseph County Republican Party Chairman, Zachary Potts. All fell victim to the accident. Walorski will be remembered for her kind heart, radiant personality and cheerful demeanor. She was 58.

A lifelong Hoosier, Walorski started her profound career as a television reporter for WSBT-TV from 1985-1989. After she married her husband, Dean Swihart, in 1995, they moved to Romania shortly after where they founded Impact International Ministries, a nonprofit dedicated to providing nourishment, medical supplies and a safe space to practice Christianity to impoverished children. She then pursued her political aspirations in 2004 when she returned to the U.S.

“She carried her faith with her in all she did,” said Lizzy Guyton, Walorski’s communication’s director for her 2012 congressional campaign. “Her spirit was to be a fighter for the people she represented. Helping others was in her blood.”

Coming from a small-business family, she had a fundamental understanding of their importance to the U.S. economy. She fought for the reduction of taxes, regulations and high health insurance costs.

“No problem was too large or small for Jackie,” Guyton said. “She took the time to visit businesses to understand the issues that burden them. She was truly larger than life.”

Her heart for others and desire to make a difference for local communities blossomed with her election to Congress in 2012. Walorski helped author a bipartisan law to protect victims of military sexual assault. She served on the conference committee that negotiated bipartisan, comprehensive legislation to combat opioid and heroin abuse, and her legislation to prevent the over-prescription of addictive painkillers to veterans was signed into law.

As chair of the Nutrition Subcommittee, she held numerous hearings examining the past, present and future of the Supplemental Nutrition Assistance Program. She worked with then-House Speaker Paul Ryan and fellow colleagues to develop reforms to federal anti-poverty programs.

“She carried her passion for others wherever she walked,” Guyton said. “She is a constant reminder that there are good politicians out there.”

Her passion for aiding small-business owners was exemplified

with her relationship with the National Franchisee Association (NFA). She attended many conferences, dinners and other events with the association. She had close bonds with many members and had the utmost respect for the NFA. For her servant’s heart to small-business owners and franchisees, she was crowned the “King of the Hill” at the 2020 NFA Day on the Hill.

“She truly got it,” Matt Herridge, NFA secretary and NFA Government Relations Committee member, said. “She was an amazing listener who advocated for people by having their voices heard. She left with respect from all sides of Congress regardless of their affiliation.”

Serving as his local congresswoman, Walorski met frequently with NFA Chair Dan Fitzpatrick with an open ear.

“When running for office, she distinguished herself by being right about the issues,” Fitzpatrick said. “She did her job with poise, intelligence and a common touch. She listened and acted.”

In her personal life, Walorski was a family woman who valued time with her husband, brothers and friends. She adored the outdoors and would like to ride her bicycle and swim in the pool. She loved music and would often sing while enjoying time at home.

Walorski’s impact was not only profound in her influence on Indiana policy but to the communities she touched. She was a light on the world that will continue to burn in her absence.

“Jackie will be sorely missed,” Guyton said. “She brought joy and light to every room she walked in. I am forever grateful to have known her.” n

Jackie Walorski and her beloved husband, Dean Swihart.

Jackie Walorski listening to the concerns of Indiana farmers.

Jackie Walorski accepting the King of the Hill Legislator of the Year award from NFA Chair Dan Fitzpatrick at the 2020 NFA Day on the Hill.

The Versacis — A Passing of the Torch FamilyMatters FamilyMatters

From football coach to franchisee, Anthony “Tony” Versaci, 85, founded his BURGER KING® franchise, Michigan Multi-King, in 1978. Little did he know then, his son, Michael Versaci, 47, would take the company by the reigns with the hopes of continuing his father’s legacy.

Michigan Multi-King is a Popeyes Louisiana Kitchen® and BURGER KING franchise, owning a total of 18 locations. With 45 years in the business, Tony is beginning to relieve himself of some responsibilities and teach Michael the ropes in hopes he will take his place one day. Today, Michael focuses on the accounting and HR division of the company with his role as chief financial officer.

“Following in my father’s footsteps has been a great source of pride for me,” Michael said. “I tell him all the time that the company stands on his shoulders, so it is all thanks to him that I am continuing his legacy.”

Tony’s competitive edge and drive for success began with his early career as a football coach. For 11 years, Tony was the head coach for Divine Child High School, starting at 19 years old, where he won 84% of his games and led the team through three undefeated seasons.

He also spent a season at Michigan State University before moving on to the NFL where he was the special teams coach for the St. Louis Cardinals for two years.

Tony’s coaching is widely recognized, as he was named Michigan High School Coach of the Year in 1966, inducted into the Divine Child Hall of Fame in 2017 and given the Outstanding Chapter Leadership award by the National Football Foundation and College Hall of Fame in 2018.

by JARED JOHNSEN

“I love the game of football and always will,” Tony said. “You never quite know where life is going to take you, but I am glad it worked out the way it did.”

Tony, after concluding his football career, wanted to pursue another challenge. Having relatives in the BK® system and an interest in the food industry, he felt as if BURGER KING called out to him.

“Starting my own franchise was a very successful venture,” Tony said. “I love the BK brand and hope to see the business grow. I see a very prosperous future ahead.”

Anthony Versaci standing among his many nieces, nephews and grandchildren.

Michael grew up with BURGER KING acting as the centerpiece of his childhood

“BK was a big part of our household growing up and still is,” Michael said. “I would visit stores with my dad, go to conventions and listen in on conference calls.”

Starting his BK career when he was 18 years old, Michael decided to work under his father’s wing beginning at the bottom of the totem pole as a crew member.

“He wanted to work and to be treated just like everyone else,” Tony said. “He was very humble and only the district manager knew his last name.”

The Versacis would go on to build an impressive BK portfolio. For the National Franchisee Association, Tony was a founding member and chair from Jan. 2011- Dec. 2012. Michael has worked in every position in the business and earned the position he holds presently.

Outside of work, the Versacis are family oriented and make an effort to see one another frequently. Tony’s family consists of his wife, Sally, and his three children: Lisa, Amy and, of course, Michael. Tony has five grandchildren, including Michael’s 13-year-old son. Tony and Michael like to spend time golfing,

traveling, watching football and having large Sunday dinners.

One piece of business advice bestowed to Michael from Tony that has resonated with him is to have persistence.

Tony said the fast-food industry has a cyclical nature with many peaks and valleys. However, with persistence, Michael was taught to maintain his composure and ride through bumps in the road

“Michael is a bright young man and has a great respect and love for Restaurant Business International,” Tony said. “I have had a great run, and I look forward to growing the business together as a family.” n

JARED JOHNSEN is the NFA communications specialist. You may reach Johnsen at 678-439-2291 or jaredj@nfabk.org.

Michael and Tony Versaci.

An award to Anthony Versaci by the National Football Foundation for his outstanding leadership to the organization.

Year in Review

What an exciting year 2022 was for the BURGER KINGSM Foundation, and it is all thanks to your support! The Foundation started the year strong, welcoming a new executive director and continued the momentum throughout the year by presenting at the BK® Road Show, holding its signature events, activating in-restaurant campaigns across multiple countries and finishing out the year raising over $1.3 million at the BURGER KING® Convention in Las Vegas!

To our franchise partners across the globe, thank you for bringing the mission of the Foundation to your restaurants and communities. With your support, we raised over $4 million in the U.S. through the donation box program, Round-Up and Fall Fundraiser.

A special congratulations to BK Brazil and Emily Bennett on being named the BURGER KING Foundation’s 2022 King of Giving award winner. Your dedication to the Foundation and spearheading fundraising efforts is inspiring!

To our vendor partners, thank you for sponsoring and

attending our events, donating in-kind donations for our auctions and providing media support during our in-restaurant campaigns. These contributions allow us to continue supporting our communities.

To our board of directors, thank you for your constant guidance and leadership. As advocates for the Foundation, you embody Jim McLamore’s spirit of giving and philanthropy. Encouraging the Foundation to grow in new and exciting ways, the milestones we hit this year would not have been possible without your support.

From the entire Foundation team, thank you! Thank you for supporting the Foundation as we continue our mission of creating brighter futures by empowering individuals and feeding potential through education and emergency relief.

As we look to 2023, we want to hear from our partners more as we begin down our path of strategic planning. We plan to set up meetings with each of you to hear your feedback and talk about ways to support. We thank you in advance for all your additions to our work. n

The WHOPPER Turns 65 65

When co-founders Jim McLamore and David Edgerton opened their first BURGER KING® (at the time called Insta-BURGER KING) in 1954 in Miami, Florida, they learned quickly to go big or go home. A few years later in 1957, McLamore wasn’t satisfied with BURGER KING’s performance compared to other burger restaurants in the area. He surveyed his competitors and found that larger burgers were garnering popularity. With that in mind, McLamore knew he wanted his latest burger to convey something big. Thus, the WHOPPER® was born, propelling BURGER KING forward ever since.

BURGER KING’s star attraction, the WHOPPER has been the subject of many advertising campaigns for the brand with the first being in the 1958 campaign, “BURGER KING, Home of the WHOPPER.” Since then, other taglines have included:

• “A Meal in Itself.”

• “There are 1,024 ways to have a WHOPPER.”

• “It takes two hands to handle a WHOPPER.”

• “In all the world, there’s only one WHOPPER.”

• “The one and only WHOPPER.”

• “…make it a WHOPPER.”

• “In the land of burgers, WHOPPER is king.”

After all these years, not much has changed about the iconic burger except its original 37 cents price tag. Just like 1957, each WHOPPER is served with a flame-grilled beef patty, topped with tomatoes, fresh cut lettuce, mayo, pickles, a swirl of ketchup and sliced onions on a soft sesame seed bun.

In the early 1990s, BURGER KING gave the WHOPPER its first makeover. The Bacon WHOPPER was introduced in 1991 and paved the way for many WHOPPER facelifts in the future. Here is a brief history of the many variations of the sandwich.

by ALLISON MCCALLUM

1996 Western WHOPPER: Topped with BBQ sauce, cheddar cheese and bacon. This variation could be served with double or triple beef.

1998 Fiesta WHOPPER: Topped with pepper-jack cheese, no pickles and a spicy sauce instead of ketchup.

2001 “Xtreme” Bacon and Cheese WHOPPER: Topped with two slices each of Monterey jack and cheddar cheese and four strips of bacon.

2004 WHOPPER Sandwich Platter: This sandwich had no bun.

The original Insta-BURGER KING in 1953.

A rebranded BURGER KING in the late 1950s.

The WHOPPER Turns 65

Continued from page 27

2005 King Kong WHOPPER: This variation was released in tandem with the “King Kong” movie and featured three beef patties.

2006 Texas WHOPPER: Topped with cheese, spicy jalapenos and a light, slightly sweet barbecue sauce.

2007 Ultimate Double WHOPPER: Topped with two beef patties, American cheese and eight strips of bacon.

2008 Angry WHOPPER: Topped with melted habanero cheese, hardwood smoked bacon, fresh jalapeño slices, layered spicy onion petals and Angry sauce.

2008 Indy Double WHOPPER: A promotional tie-in with the 2008 release, “Indiana Jones and the Kingdom of the Crystal Skull,” this WHOPPER was topped with bacon, spicy mayo and pepper-jack cheese.

2009 Pizza WHOPPER: Released exclusively at the BK® WHOPPER Bar, this sandwich consisted of four WHOPPER patties on a 9.5 inch sesame bun, sliced into six pieces and topped with pepperoni, mozzarella, basil pesto and marinara sauce.

2009 Windows 7 WHOPPER: Released in Japan as a promotional item for Microsoft’s Windows 7, this sandwich had seven beef patties.

2012 Texas BBQ WHOPPER: Topped with Bull’s-Eye, Texasstyle BBQ sauce, American cheese and jalapeño slices.

2012 Wisconsin White Cheddar WHOPPER: Topped with Wisconsin white cheddar and thick-cut hardwood smoked bacon.

2014 Proud WHOPPER: Nothing deviated this sandwich from its namesake except the rainbow wrapping to celebrate Pride Month.

2011 California WHOPPER: Topped with Swiss cheese, guacamole and thick-cut hardwood smoked bacon.

2012 Carolina BBQ WHOPPER: Topped with pepper jack cheese, hardwood smoked bacon and Bull’s-Eye, Carolina-style BBQ sauce.

2019 Upside Down WHOPPER: Served as a promotional tie-in to “Stranger Things,” this sandwich had the top and bottom bun switched.

2016 Angriest WHOPPER: Featuring red buns with baked-in hot sauce.

2016 WHOPPERito: This variation had all the typical ingredients rolled up into a burrito with queso instead of condiments.

2019 Impossible WHOPPER: Now a permanent menu item, this WHOPPER has the same dressings as normal, but the patty is made of plant-based protein.

2019 Ghost WHOPPER: Featuring a white-cheddar-cheese-flavored sesame bun.

2015 A1 Halloween WHOPPER: The first WHOPPER to have black buns, this sandwich was topped with A1 sauce.

2022 WHOPPER Melts: This item came in three different varieties, the WHOPPER Melt, the Spicy WHOPPER Melt and the Bacon WHOPPER Melt, all sandwiched between two pieces of toasted bread.

2022 Ghost Pepper

WHOPPER: A Halloween promotional item topped with spicy queso, bacon, jalapeños and ghost pepper cheese on an orange-and-black sesame seed bun.

In celebration of the WHOPPER, we asked a couple of long-time National Franchisee Association members to share their sentiments about the legendary burger.

Peg Canniff: Starting in 1974 at the BURGER KING in Ossining, New York, WHOPPERs were the first thing I learned how to make — almost the same as today. I was still in high school and the thought of working and making WHOPPERs was exciting and at times scary to me — when it got busy it was hard to imagine moving fast enough to keep the manager happy! There were huge panels of stainless steel that we had to shine up nightly, and the managers seemed so strict and made sure we were making our WHOPPERs perfectly every time. We only made a few other sandwiches at the time. I can only remember WHOPPERs, Big

Plains, hamburgers and cheeseburgers — also fries and Coca-Cola! Shortly after I started, BK added the Whaler (fish sandwich) and the Yumbo (ham and cheese on a bun) and then soon came onion rings!

As the years have gone on, I have made and watched many WHOPPERs be made. I took a few years off from BURGER KING after my after-school job at BK, but when I returned a few years later, WHOPPERs were still the king, and we made them the same way with the addition of steamers. I have enjoyed teaching many how to make a WHOPPER and seen so many team members come and go, but I know that they were happy knowing the secrets to the WHOPPER!

The WHOPPER and BURGER KING have been part of most of my life, and it is so great to see that we are celebrating the 65th anniversary of such an iconic sandwich. We (my generation) have seen so many changes in the world with technology and social media that it still amazes me that the WHOPPER (with little change) is still a name that everyone knows and millions of people are enjoying every day!

Rick Cowley: Clearly, the WHOPPER is in a class of its own. It is an exceptional sandwich and an iconic burger. For me, the sandwich goes beyond just the burger and represents the foundation of the brand and what has made it great since the beginning. Through our highs and lows, the WHOPPER build has been unmatched, and the quality of the ingredients are superior to any other fast food. Finally, we even have a song about the sandwich and the uniqueness of having it your way: “Hold the pickle, hold the lettuce, special orders don't upset us, all we ask is that you have it your way at BURGER KING!” n

ALLISON MCCALLUM is the communications editor for NFA. You may reach McCallum at allisonm@nfabk.org or call 678-797-5165.

Reduce Employee Turnover With a Work Ethic Integrity Assessment

As more workers return to the job market, the quality and character of applicants has become more of an issue. The challenge, however, is how do you find that needle in a haystack for a good and reliable employee?

Hiring decisions, in general, are based on self-reported applications and resumes. And while a candidate’s hard skills may look great on paper, it is usually their lack of soft skills that result in their departure or termination.

Uncovering these deficiencies is left to the judgement of interviewers and/or irrelevant personality and compatibility assessments. The problem is these methods have proven unsuccessful in finding reliable employees and reducing turnover.

Behaviors Predict Employee Success

After years of experiencing these different methods, a new approach was developed to look at the behavioral traits that make up a superior employee, led by Dr. Neil Christiansen, Ph.D. at the Society of Industrial and Organizational Psychologists (SIOP). The most critical behavioral trait of work ethic integrity was evident: honest employees that show up for work and the interview! This is a comment we hear consistently.

The TraitSet approach is a short questionnaire developed by clinical psychologists. The results have shown the higher the work ethic integrity scores, the higher the probability of success for the employee (refer to chart). Operators have said turnover was reduced by as much as 50% when selecting applicants with higher work ethic integrity scores.

Boost Profitability

While it may seem intuitive that an extra step in the application would increase abandonment, the results have shown the majority of applicant departures occur on the first or second page of the process, well before the questionnaire.

Having this type of objective assessment prior to an interview with suggested questions provides a consistent process to aid the individual interview styles of the hiring personnel. The end result is a little more data on your applicant, and it identifies the superior candidates that will reduce your turnover and positively impact your profitability.

The Whopper to Reducing False Alarm Fees With Human Detection and AI Technology

Smart Site Protection is a smart alarm service that assists quick-service restaurants to quickly identify and confirm theft or irregular nightly activity.

As a restaurant owner, have peace of mind knowing that your business is being watched, even when everyone is off the clock. Updating a restaurant’s technology is a great place to start, especially when the outcome benefits the safety of the team members, guests and the business’s bottom line.

Smart Site Protection uses artificial intelligence (AI) to detect if a person is present after-hours when the business is closed for the day, and all employees have left. An alert, along with video footage, is sent to a designated person(s) to seamlessly verify and respond to possible threats via a mobile device. This solution enables managers to augment their alarm management system to greatly reduce false alarm fees, help in improving emergency services response time and personalize the workflow for receiving and reacting to push notifications for instant verification and quick response.

Imagine it’s 1:23 a.m., and the restaurant is closed for the day. The employees left and securely locked up after their scheduled shift. An hour later, the manager receives an alert on their mobile device notifying them that their security alarm went off, and they need to make an immediate decision to dispatch police.

With the restaurant's security cameras currently in place and connected to Envysion’s EnVR, where built-in AI technology filters the motion and detects human movement, an alert is generated to be sent to the designated manager along with the exact video of the situation.

The manager reviews the video and notices a scheduled delivery driver in the building helping himself to a free beverage, which caused the alarm. The manager clicks “No Threat”, immediately silencing the alarm for a period of time, diverting the false alarm fee and an unnecessary visit from the local law enforcement. The only concern now is having a conversation with the delivery service to address the delivery driver’s actions.

With valuable AI technology and immediate insights available in a user-friendly system, Smart Site Protection levels up existing video alarm management services — protecting restaurants and saving work, time and money, allowing owners to focus on their bottom line, not on false alarms.

Elevate existing on-site security cameras with Intrusion Alerts, where no additional hardware is needed. This feature identifies, filters and eliminates additional noise to generate video alerts from human-generated movement. Smart Site Protection Configuration offers complete control for the customization of schedules and

notification preferences for each location, all managed within one platform. Integrating Smart Site Protection mitigates false alarms without the driving cost of false alarm fees.

As an owner of a quick-service restaurant, it’s important to be the first to know if the business is at risk. Mobile Self-Verification triggers notifications of the video-based alarm to confirm if there is a true threat. Owners with multiple locations may choose to opt-in to Envysion’s Professional Monitoring Service where professionals are trained to verify events and contact emergency services if a true threat is detected.

Lastly, Alarm Insights allows for storage of these video clips safely in the cloud for up to 90 days to playback footage, flag questionable activity and uncover hidden offenses. Further, protect the business by saving specific video clips of alarmed events in the software’s “My Clips” feature or make notes within the “Incident Management” feature — all accessible within a single login in the application.

Envysion is a Sapphire partner member of the National Franchisee Association. The company may be reached at 877-258-9441 or www.envysion.com.

Meet the NFA Marketing Council Committee

In each issue of the 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 Marketing Council Committee. Read on to learn more about the committee.

Jim Froio

Committee Chairman

Froio Management Group

Number of units: 5

Year entered system: 1971

How did you become involved with the BURGER KING® brand? When I was in high school, I enjoyed visiting BK® after school on my way home. I liked the food and the people. I applied for a job, and the rest is history.

What attracted you to the brand? I was drawn in by the people I worked with and the ability to succeed on my own merits.

What motivated you to become involved with the NFA at this level? The NFA is the franchisees’ advocate to BURGER KING Corp. I feel it is important for franchisees to be involved to help make our business better.

What do you see as your role on the Marketing Committee? I want to make use of my 50-plus years of experience and knowledge and offer direct opinions to corporate leaders to make the brand more profitable.

What would you most like to see accomplished during your time on the committee? I would like to see the brand return to its golden years and help return sales, traffic and profitability to the system.

President

Brooks Restaurants Inc.

Number of units: 26 Year entered system: 1987

How did you become involved with the BURGER KING brand? I worked overseas as an engineer for 10 years and upon my return to Florida, my wife and I wanted to pursue a business of our own. We were granted a BURGER KING franchise and built our first restaurant in New Orleans, Louisiana.

What attracted you to the brand? I was promised that if we were successful with our first store, we would be given an opportunity to expand as a multi-unit operator.

What motivated you to become involved with the NFA at this level? Having 35 years of experience with the BURGER KING brand, I felt I could contribute my knowledge to the system by giving my opinions of what worked and what did not regarding many matters.

What do you see as your role on the Marketing Committee? I would like to offer my opinion on profitable promotions that resonate with my customers to increase sales for the system.

What would you most like to see accomplished during your time on the committee? I would like to see a return of our lost customers by being more relevant to our base.

Eugene Brooks

Wayne Burke

Director of Operations

California Food Management

Number of units: 119

Year entered system: 1977

How did you become involved with the BURGER KING brand? I started as a young man working in the BK system as an employee and worked my way up through the system on the corporate and franchise side.

What attracted you to the brand? I have always respected the BK brand and what it stands for — delivering flame-grilled products to our loyal guests.

What motivated you to become involved with the NFA at this level? I would like to represent the Southern California market and share our needs and thoughts to help benefit our fellow operators.

What do you see as your role on the Marketing Committee? I can provide feedback that benefits our entire system to help continue to grow this iconic brand through positive marketing messaging.

What would you most like to see accomplished during your time on the committee? I would like to see us gain double-digit sales and traffic comps while contributing to healthy EBITDA.

Robert Rodriguez CEO

Tasty Restaurant Group

Number of units: 68 Year entered system: June 2018

How did you become involved with the BURGER KING brand? Tasty Restaurant Group acquired 62 restaurants in June 2018 in the states of Kansas, Missouri and Iowa. Since then, we have invested heavily in the central region where we built 16 new restaurants to provide greater accessibility of the brand to our guests, acquired an additional eight restaurants and remodeled 16 restaurants (four of which were a scrape and rebuild) in an effort to revitalize the brand and to remain competitive in the markets we operate in.

What attracted you to the brand? I grew up in Miami, the birthplace of BK. As long as I can remember, it has been a brand

Continued on page 34

Meet the NFA Marketing Council Committee

Continued from page 33

I believe in, and I am convinced we have the best tasting burger in the industry. When my partners and I formed Tasty Restaurant Group and considered which concept to purchase within the burger category, BURGER KING was the first brand we considered.

What motivated you to become involved with the NFA at this level? The National Franchisee Association is a great representative of and advocate for the franchisee community. This highly involved group has the best interest of franchisees at heart when it comes to pertinent issues, whether it be on the local or national political stage, restaurant operations or supply chain matters.

What do you see as your role on the Marketing Committee? The role we serve is to advise the marketing executive team on all aspects of marketing, from branding, promotional ideas, product innovation and discounting tactics. More importantly, our role is to guide the long-term strategic direction of the brand for the long-term health of the business. This is a balance of sales and franchisee profitability that is essential to achieve a long-term health and viability for each franchisee. If you add all the years of experience of the franchisees on this board, it will exceed any executive team of most brands. So, the question is: How do we harness all this wisdom and experience within the franchisee group to wisely advise our marketing executives?

What would you most like to see accomplished during your time on the committee? I would like to revitalize the brand back to national prominence by, once again, being perceived by our paying guests as the best burger in the U.S. It is essential to drive the relevance of our brand in the marketplace for immediate and long-term financial health.

Harsh Ghai

COO

Ghai

Managemnet Services

Number of units: 140

Year entered system: 2010

How did you become involved with the BURGER KING brand? I am a second-generation franchisee. My family has been a BURGER KING franchisee since 1999.

What attracted you to the brand?

BK is an iconic brand with an amazing product.

What motivated you to become involved with the NFA at this level? I have been a part of this brand for the majority of my life. It is very close to my heart and driving it forward is important to me.

What do you see as your role on the Marketing Council Committee? I provide a perspective that is important to operators on the West Coast.

What would you most like to see accomplished during your time on the committee? I would like to see the brand strengthen its relevance and dominate the burger industry.

Gary Geiger

Owner/Partner

Geiger Management

Number of units: 20

Year entered system: 1985

How did you become involved with the BURGER KING brand? My involvement began as an assistant manager trainee and progressed to store manager, district manager, director of operations and vice president of operations overseeing 43 stores in four states.

What attracted you to the brand? My wife and I bought our first five stores in 1996. We currently operate 20 restaurants in three states.

What motivated you to become involved with the NFA at this level? I was asked to join the Marketing Committee in 2017 by Chris Finazzo.

What do you see as your role on the Marketing Council Committee? I would like to provide timely and professional guidance to the marketing team and suggest possible programs based upon our current and past experiences.

What would you most like to see accomplished during your time on the committee? The new leadership team is far more receptive to the input of the committee members. I see this as a positive given the collective knowledge, wisdom and experience of the committee. I hope to contribute to the success of the system in any way I can!

Tom McDonald

Franchisee/Owner

Glencoe

Number of units: 45 Year entered system: 1987

How did you become involved with the BURGER KING brand? Dennis Hitzeman, a BK franchisee in Phoenix in 1986, and I went to high school together. Dennis needed an operating partner to expand into the Las Vegas market, and I was looking for an opportunity in a franchised business that year. The timing was perfect, and I became Dennis’ operating partner in 1987. A few years later, I bought Dennis out and was on my own until I became partners with Steve Keith in 2008.

What attracted you to the brand? BURGER KING is a known and respected brand globally, so that was attractive. Of course, the WHOPPER® sandwich, and the “Have It Your Way” tagline were and are recognizable around the world. I liked the idea of being a part of this iconic brand. I also liked the fact that BURGER KING franchisees could own their BURGER KING real estate, which not all franchises permit.

What motivated you to become involved with the NFA at this level? The NFA advocates for franchisees with BURGER KING Corp. (BKC). I wanted to be involved with the NFA and provide input to BKC from a franchisee’s perspective. The Marketing Committee provides an excellent mechanism to do just that.

What do you see as your role on the Marketing Council Committee? Since I have been a franchisee for 35 years, I try to provide some historical perspective to the current BKC leadership as to what has worked and what has not from a marketing standpoint over the years. I also try to inject a franchisee’s perspective into the discussion about maximizing cash flow to the bottom line, rather than simply increasing sales or selling items with a high-gross profit percentage.

The current leadership is taking a much more collaborative approach in our Marketing Committee meetings, and this is greatly appreciated by the franchisees on the committee. It makes the committee members feel that their input can make a difference.

What would you most like to see accomplished during your time on the committee? I’d most like to see our decreasing ticket counts turn around and have our negative ticket comps become positive. Everyone on the committee and within BKC recognizes this won’t happen quickly, but it is a goal that we must work towards and achieve as quickly as possible. Our future tactics and strategies should always keep in mind their impact on ticket count. Of course, operations are just as important as marketing in stabilizing and increasing our ticket counts. Marketing can get the customer in the door, but it takes good operations to keep them coming back again and again.

Other Marketing Council Committee Members Include:

Members not pictured: David Morss, Reid Neuman and Zohaib Dhanani. n

Shelley Krispin Arizona

Todd Schuster Georgia

Henry Delouvrier Missouri

Remembering Mike Novak, Notable RSI Chairman

Michael “Mike” Novak Sr. never said goodbye — instead, he would tell his children, friends and family, “Be good.”

On Sept. 25, Mike passed away surrounded by his family and loved ones. He spent 57 years married to his wife, Gail, and together they have three children: Michael Jr., Chad and Karen. Mike worked for 32 years in the BURGER KING® system, owning and operating 14 BK® restaurants throughout his time as a franchisee. He served as chairman of the Restaurant Services Inc. (RSI) board in 1998-99 and was a member of the National Franchisee Association (NFA) board for a number of years.

Born in 1937 in Stamford, Connecticut, Mike came from a family of coal miners. His great grandparents immigrated from Eastern Europe to the mining town of Wilkes-Barre, Pennsylvania. As more of his family was succumbing to health problems due to dangerous mining conditions, his great grandparents made

the decision to relocate their family to Connecticut when Mike’s grandmother was young.

Mike grew up loving sports, and recently, it was told to Chad that his father was once a football star. “One of his friends from high school told me that [Mike] was a brilliant athlete and all-star quarterback his freshman year. His father became ill, and he had to quit the sport to start working to support his family. Life changed pretty dramatically then,” Chad said. “He never talked about that.”

After graduating from Stamford High School, Mike went on to earn his Bachelor of Science degree from New York University, making him a first-generation college graduate. He began his professional career working for Colgate-Palmolive Company and Time Life before working with former BURGER KING franchisee, Carl Ferris. In 1980, he left Ferris’ business to start his own: American Dining Corp. He opened his first BURGER KING in Aston, Pennsylvania, that year.

Mike and his wife, Gail.

All of Mike’s children agree their dad “fought for the little guy” in his business ventures, always staying humble and generous. He especially wanted to help the smaller franchisees who “needed [their businesses] to work” because they didn’t have the benefit of scale.

“He reluctantly took positions of power. When he went into any of his stores, none of the workers there knew he was a bigwig,” Chad said. “He was the first to grab a dustpan and broom and start sweeping up cigarettes outside.”

Chad recalls spending a good deal of time in his dad’s restaurants growing up, saying, “Any day we weren’t in school, he would load us up in the car and take us with him to his restaurant in Aston.” He continued, “We would help clean up the store and even fill up fountain drinks for customers back when the fountain was behind the counter. I remember having a feeling of responsibility at an early age.”

In the mid-1980s, Mike met fellow franchisee Joe Anghelone because they both had BURGER KING restaurants in the same Pennsylvania market. The two quickly became close friends since they also shared a love for golf, and every year, they would take a trip to Myrtle Beach with other friends to play.

“Since we lived so close to one another, our families became intwined. As time went on, we would get together for holidays, whether it was Christmas or a summer picnic. We even travelled to the Asia-Pacific and Italy all together,” Anghelone said. “For over 35 years, we’ve had a longstanding relationship that transcended just work.”

Over time, Mike grew his number of BURGER KING restaurants to 14 and got involved with the NFA and RSI after their inceptions. In 1991, both Mike and Anghelone represented their regions on the RSI board with Anghelone later becoming the chairman of the RSI board in 1996-97. He recommended Mike to be his successor.

In the late-1990s, BURGER KING distribution took a massive hit when a few major distributors shut down. This was around the time that Mike became chairman of the RSI board.

Despite being a child during this period, Chad remembers this, saying, “BURGER KING was in a very precarious spot at the time. When he got involved, I recall him spending days on end sitting in his office on the phone. Our mom would even bring him his meals to his office.” He finished, “Even though I was young, I

do remember the time he put into it at home.”

Anghelone recalls this time as well, and said, “Mike always conducted himself professionally, even in stressful situations. He was chairman during the Hudson Beef Crisis — one of our main beef suppliers, Hudson Beef, had a recall on their meat that reverberated across the whole system.” He continued, “Under Mike’s leadership, he was able to keep the supply chain and products flowing. That was a critical time in Mike’s career.”

In the 1999 RSI Annual Report, Mike wrote, “I appreciate the long hours and difficult travel schedules the board puts in to make RSI work. Representing you with so much at stake is an awesome responsibility, and these busy people deserve a lot of credit.”

Even as he worked tirelessly and dedicated himself to his work, his humility and gratitude for those he worked with always remained the same. Mike knew that the success of the organizations he worked for relied on everyone.

When asked to describe Mike as a father in just one word, Chad said, “Kind.” “We [as kids] knew we had to try, no matter how silly [the task] was to him. If it was juggling or playing guitar, he supported us and wanted the effort to be there.”

“Mike was the quintessential good guy — Mr. Nice Guy,” Anghelone said. “I never saw him raise his voice. He was always level-headed and respectful, and he was truly intelligent. You don’t meet men like that too often, but Mike was the real deal.”

That is how Mike will be remembered — as a man who worked hard and carried goodness and gratitude with him in everything he did.

Mike signed off his final letter as RSI chairman, “To the entire board, and in particular Vice Chairman Larry Stokes and all the committee chairmen, please accept my gratitude for your support and hard work. Thank you.” n

(Above): Mike and Joe playing golf.

(Right): Mike (right) and Joe (second from left) with other friends sharing their favorite game.

Mike’s famous phrases.

Don’t Get Burned by Pay Transparency

Employee pay has been in the news a lot lately. Much of the news coverage has focused on inflation, wage increases, employee bargaining power and the like. In addition, with a new law in New York City having gone into effect with a twist that it is expressly intended to cover any job that “could” be performed in the city, many companies are now worried that they are now subject to penalties in NYC … even if they do not do business or have any facilities there. The resulting press coverage could lead you to think that pay transparency laws are uncommon, but in fact, some versions of these laws have been in effect in a number of states and cities beginning in at least 2017.

Because of the increased scrutiny on the employment experiences of women coming out of the early days of the #MeToo movement, more emphasis has been made on addressing pay discrimination based on sex. While there is some debate regarding the degree and extent of sex-based pay differences, a defense used by many employers over the years when there is a claim of lower pay based on sex has been that the employee’s initial pay was based on the applicant’s salary history and/or the failure

by DOUGLAS H. DUERR

to ask/negotiate for a higher salary. These defenses have been condemned as essentially being nothing more than a continuation of prior discrimination: that is, the applicant had lower pay in the past because of sex discrimination and is thus victimized again when that past discrimination is a basis for a lower pay offer or the failure to seek a larger increase in pre-hire negotiations. In fact, a number of court cases have rejected this defense.

As a consequence of the debate over the potential impact salary history may have on perpetuating sex discrimination, a number of states and cities have passed laws limiting an employer’s ability, especially in the case of new hires, to utilize or otherwise rely upon an individual’s pay history in deciding whether to hire the applicant and in setting pay. For example, the following states have laws preventing an employer from asking about salary history and/ or banning use of salary history: California (also San Francisco), Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont, Virginia and Washington. In a number of states, cities or counties may also have similar limitations, like Philadelphia, Pennsylvania, or Toledo, Ohio, among others.

As with the recent law in NYC, some states and local jurisdictions not only ban inquiries and/or use of salary history in the employment process, but they also require disclosure of pay ranges for a position. While Colorado and NYC take this disclosure requirement further than most by requiring job postings/advertisements to include the salary range, in most jurisdictions requiring employers to disclose the pay range, that obligation is triggered by the applicant asking for that information.

The expectation is that more states and local governments will pass laws addressing salary history and/or disclosure of pay ranges. What does this mean for you? First, check to see whether you have any employees working in a state with a pay transparency law. If so, make sure you comply with that jurisdiction’s requirements. Second, if you request pay history information as part of your employment application or during the interview process, consider why you are seeking that information and whether it is really needed. As I noted earlier, if you are using it to set pay, that could set you up for a pay discrimination claim even if state law did not expressly prohibit you from doing so. Finally, when setting pay, while no set formula is necessary, you should only use factors that are gender and race neutral such as educational background, certifications/licenses, years of employment experience, years with specific job experience and the like. You should know in advance how much you are willing to pay whomever you hire.

Pay issues are likely to stay in the news a while longer, and the expectation is that pay transparency laws will continue to expand. Proactively anticipating the continued emphasis and attention on pay equity are important steps to prevent getting burned by a claim in the future. n

The Zenput Operations Execution Platform

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

RSI Recognizes Suppliers for Their Role in the Path to Resiliency

Never has it been more evident that RSI’s supply chain community is fully engaged, equipped and at the ready to help drive enhanced value beyond savings for its members. Time and time again, there have been countless examples underscoring their continued and relentless commitment to helping members navigate the operations and economics of the supply chain and, ultimately, their BURGER KING® restaurants.

Through best-in-class collaboration and a thoughtful and strategic approach, our network of suppliers continually steps in whenever the call of duty requires to keep the BURGER KING business a top priority amidst the rapidly changing market dynamics. From zeroing in on identifying efficiencies and even absorbing some of the additional investments to avoid passing additional costs on to our system, our invaluable supplier community has proven, again and again, that they

play a critical role as trusted advisers and partners to us all.

“The supply chain successes we have achieved over the past two years can be directly attributed to the immense power of partnership that we have experienced from our supplier community,” said John Sutton, vice president of purchasing at RSI. “The current environment has demanded we move at lightning speed in a collaborative approach, relying heavily on the strong business relationships that we have cultivated over the past three decades, as well as the open and unimpeded lines of communication that enabled us to pivot at every turn in response to the rapidly changing market dynamics.”

Heavy disruptions, shifting demand patterns and labor and material shortages — our invaluable supplier community has been instrumental through it all, ensuring uninterrupted supply despite the numerous and complex challenges with

which the system was faced. RSI remains committed to recognizing the tremendous contributions of our supply chain partners that have further cemented our collective success. This year, RSI leadership and board of directors recognized 13 suppliers for going above and beyond in their efforts to increase our supply chain sustainability, competitiveness and overall health and resiliency.

RSI understands that it takes agile, demand-driven and committed suppliers to ensure supply for the BK® system each day. A special “thank you” to these 13 standout suppliers for helping RSI seize every opportunity to raise the bar on the standards within their respective categories and within the supply chain. Without a doubt, every effort made has helped unlock significant value in the path to a responsive and resilient supply chain that will make RSI stronger in the years ahead. n

Birchwood Farms, from left: John Sutton, RSI vice president of food & packaging purchasing; Wayne Wehking, executive vice president of sales and marketing; Thomas Myers, national account manager; and Joel Neikirk, RSI president and chief executive officer.

McCain, from left: John Sutton; Matt Sungy, senior national account manager; Joe Culligan, vice president of Sales; and Joel Neikirk.

Richelieu, from left: John Sutton; Andrew Chambers, vice president of sales, national accounts; Owen McCarthy, vice president of sales; and Joel Neikirk.

Index

Swift, from left: John Sutton; Tom Lopez, president and chief operations officer; Paul Marburger, foodservice sales; and Joel Neikirk.

Lineage, from left: Lisa Bonet, RSI chief operating officer; Amy Gerberi, vice president; Joel Neikirk; and Jim Musial, account manager.

Alpha, from left: John Sutton; Mark Marcucci, vice president; Larry Marcucci, chief executive officer; and Joel Neikirk.

Pactiv, from left: John Sutton; Stan Krause, vice president, foodservice sales; Tim Lavenda, president; and Joel Neikirk.

Newlyweds/Mullins, from left: John Sutton; Denny McCormick, director of national accounts; Scott Cramer, national account manager; and Joel Neikirk.

OSI, from left: John Sutton; Frank Ricker, senior national account sales manager; Travis Patterson, vice president, global and national accounts; and Joel Neikirk.

Marmon Group/Prince Castle, from left: Jay Rodriguez, RSI senior director of equipment & facilities purchasing; Diogo Pereira, vice president, Americas MFT; Mike Kraus, director of sales MFT - RBI/RSI; and Joel Neikirk.

Crown, from left: John Sutton; George Caparos, chief development officer; Yianny Caparos, president; and Joel Neikirk.

Promotions & Surge Creates, from left: Kevin Whitaker, vice president of operations (Index); Chris Grabianski, president (Index); Pam Crain, executive vice president of marketing/client service (Surge); Walter Kocur, chief operating officer (Surge); and Joel Neikirk.

Employment Practices Claims and Your Franchise

Employment practices liability insurance protects your business from common claims and lawsuits brought by your employees. The number of lawsuits in the industry is rising, and the cost to defend yourself against a claim can be substantial. Now more than ever, it’s important to make sure your business is protected.

Before you can protect your business from an employment practices claim, it is important to understand the different types of claims that can be filed against your business. Consider these four common claims:

4 Common Employment Practices Claims

1Hostile Work Environment

A hostile work environment creates a workplace environment that the average person would find intimidating, hostile or even abusive. A hostile work environment is more than having an annoying coworker or even experiencing isolated incidents of a prohibited behavior. For a hostile work environment claim to apply, the behavior must be:

• Severe, persistent and pervasive.

• Disruptive to performing work duties.

• Known to the employer but not remedied. Victims can include not only the targeted individual but others whose work suffers because of the behavior. The person causing a hostile work environment may be a supervisor, coworker or nonemployee, such as a vendor or regular customer.

Preventing a Hostile Work Environment:

• Have policies and procedures in place for worker conduct and behavior.

• Train supervisors and employees on proper prevention and remedies.

• Take appropriate corrective action once a discriminatory situation becomes known.

• Avoid any retaliation against the workers who reported or witnessed the behavior.

2 Sexual Harassment

Sexual harassment claims are also common in the franchise industry. These claims can result when employers or others:

• Make inappropriate sexual comments toward an employee.

• Ask inappropriate sexual questions about their personal life.

• Make unwanted sexual advances toward an employee.

• Request sexual favors from an employee.

A claim of sexual harassment does not need to meet the same severe and pervasive standards as a hostile work environment claim. A claim can be made when management becomes aware of the issue but fails to take adequate steps to address and stop the behavior.

Preventing Sexual Harassment Claims:

• Develop and enforce safe workplace policies for all employees.

• Train supervisors and employees on behavioral expectations.

• Monitor operations to ensure a safe workplace.

• Act quickly to remedy harassment that is reported or witnessed.

• Avoid any retaliation against the harassment victim or witnesses.

3 Quid Pro Quo

Quid pro quo is a Latin phrase used to mean an exchange of one thing for another. A quid pro quo claim is a specific kind of prohibited workplace discrimination where a manager or supervisor offers employment or promotion to an employee in exchange for:

• Sex

• Sexual contact

• Sexual favors

Preventing Quid Pro Quo:

• Develop specific policies and procedures for managers and supervisors.

• Train supervisors and employees on prevention and reporting.

• Investigate all complaints and take appropriate action as needed.

• Avoid any retaliation against the victim or witnesses of the harassment.

4 Protected Characteristics

Federal equal employment opportunity laws prohibit employment discrimination based on several protected characteristics:

• Race

• Color

• Religion

• Sex (including pregnancy, sexual orientation or gender identity)

• National Origin

• Age (aged 40 or older)

• Disability

• Genetic information (including family medical history)

The protections apply to job applicants during the hiring phase, employees during their employment and former employees after leaving employment.

Preventing Protected Characteristics Claims

• Develop documented employment procedures and job descriptions.

• Plan for job postings, application screening and candidate interviews.

• Review key employment law provisions including prohibited questions.

• Avoid interview questions that are not directly related to the job.

• Hire based on eligibility and qualifications.

• Create an employee handbook with all workplace policies and procedures.

• Document everything in writing, including absences, conduct and performance.

• Document performance and code of conduct violations.

• Fire according to your documented policies.

Employment Practices Liability Insurance for Your Franchise

Claims for hostile work environment, sexual harassment, quid pro quo and protected characteristics can be minimized with the right steps. However, it’s possible to receive a claim even when you have done nothing wrong.

For this reason, Employment Practices Liability Insurance coverage (EPLI) is also key for protecting your business. With EPLI coverage from Lockton Affinity, your franchise is protected from these and other employment practices claims. Find out more and learn how to protect your practice with EPLI coverage from Lockton Affinity at Elevanta.LocktonAffinity.com. n

Please note: The information provided by Lockton Affinity is for your consideration and should not be construed as legal advice.

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.

The Actions of Leadership: Reinvigorate Yourself Reinvigorate

Leadership is rewarding. Sometimes.

But oftentimes it is physically and emotionally draining. Trying to influence how other people think so they make decisions that improve results in a sustainable way is HARD WORK. It requires sustained, consistent focus over a very long period of time. Contrary to what might be popular belief, you can’t just Instagram or Snapchat your way to effectively influencing how other people think. It takes time and effort and many, many trial-and-errors to effectively change how

people think. Consider how long it took to get cigarette smoking in restaurants to be seen as a major health hazard for everyone in the building. Consequently, leaders need to be reinvigorated on a regular basis. If they don’t pause to refresh their energy, they can easily fall into a host of bad habits that can do great damage to their health and their reputation.

by DAN COUGHLIN

Develop a Reinvigoration Plan

Guess what? No one is going to develop a reinvigoration plan for you. No one can make you walk away from your work and go play golf. It’s quite the reverse. You need to take responsibility for doing things that reinvigorate you. And the key is that you do what works for you, not for other people.

For example, playing golf is a great reinvigoration for some people, but for others it would be an awful experience.

Right now, before you run off to yet another meeting, take out a sheet of paper and start to write down what reinvigorates you. Make a list of six to 10 items.

Okay, stop reading this article, and write down on a piece of paper your six to 10 items that you can do to help reinvigorate yourself.

Keep writing.

Ok, now read over your list. Select at least one item that you will do today. Then select one item you will do tomorrow.

Ok, now write those two items on your calendar, one for today and one for tomorrow.

When that time shows up, actually go and do those activities.

Tomorrow, after you do the activity you wrote down for that day, write down what you will do each day for the next three days to reinvigorate yourself.

If you don’t write it down, you will likely lose your focus on these incredibly important activities. And then three days will go by, and you will have done nothing to reinvigorate yourself. And then burnout and bad eating habits and crankiness and other negative habits will return. And then you will be less of a leader than you are capable of being.

And now I’m off for my daily walk. n

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

Hire Hourly Employees Faster With

Texting and Automation Tools

The competition for restaurant workers is stiff. Each pause in the application process increases the chance that a quality candidate will get an interview or an offer from your competitor. The employer with a more engaging interview process is more likely to win the competition for the applicant’s attention.

According to a recent report, 37% of hourly workers say getting hired quickly is more important than pay or being close to home. As an owner or operator, the best advantage you have in hiring is how fast you can get a qualified candidate from application to first day. That means finding a faster way to engage applicants.

Seventy-five percent of millennials avoid phone calls because they’re too time-consuming. Some members of Gen Z think email is outdated and painful to use. So, incorporating text messaging into your hiring process is a must. Plus, texts have as high as a 98% open rate and are largely read within the first 90 seconds.

So, how can you speed things up and hire the best hourly workers as quickly as possible? By using text and automation tools.

Workstream simplifies the hiring process by meeting applicants where they are (on their phones) and automating away tedious hiring tasks, so mangers can find and engage qualified applicants faster.

It starts with a simplified application process for candidates. Workstream makes it easy to quickly generate branded text-to-apply posters or QR codes that take applicants directly to your job posting from their phone. Just scan and boom! They’re applying to work at your restaurant.

The initial process of sifting through applications can consume a lot of your hiring manager’s time, particularly if the applicant flow is as high as most businesses need it to be.

With Workstream’s smart-screening questions, you can set hiring parameters and automatically filter out unqualified applicants and push qualified applicants to the next hiring stage. This is where Workstream’s interview self-scheduling functionality

enables qualified applicants to book their own interviews via text message, eliminating the time-consuming back and forth for hiring managers.

Applicants get an immediate confirmation text, and the hiring manager receives a notification that an interview is scheduled. This is how quick-service restaurant, Fuzzy’s and Frisch’s, schedules applicants in less than two hours. It’s as close to instantaneous as it gets, and it’s how you can get applicants in the door (or on the phone) for interviews without a single moment of logistics work on the manager’s end.

Even with the fast-as-it-gets process, managers still risk no-shows for interviews. Workstream’s automated system utilizes text confirmations to minimize ghosting and keep managers from sitting around waiting.

With text confirmations, applicants automatically receive a text message from the hiring manager shortly before their interview asking them to reply to confirm. If they don’t reply, managers know not to wait for them and can instead refocus their energy on the many other needs demanding their attention. If a candidate needs to reschedule, that option can be part of the text message too. This works. Jamba, for example, recently reduced its ghosting rate by 90% by using automation and two-way texting technologies.

Being the first to offer applicants a position doesn’t guarantee they’ll take it, but it certainly increases the chance they’ll accept. Plus, a faster, more efficient hiring process streamlines the process for your managers, maximizing their time and effort to focus more on the restaurant’s countless other needs. To learn more about how you can hire hourly workers 70% faster with text and automationbased hiring, visit workstream.us.

Workstream is a Sapphire partner member of the National Franchisee Association. You may reach the company at 801-854-0202 or www.workstream.us.

The Customer Is Not Always Right.

Most of us have grown up with the adage, “The customer is always right.” Well, if you’ve been in the real world for any time at all, you know that the customer is often wrong. They didn’t see the sign, read the directions, arrive on time, buy the right part, give the right specifications, etc, etc. Companies screw up often enough but so do customers.

by DENNIS SNOW

When I was working at Disney World, our philosophy was; “The guest may not always be right, but they will always be our guest.” A Disney colleague, Jim Cunningham, put it better when he said, “The guest may not always be right, but let’s allow them to be wrong with dignity.”

I love the way Jim put it. Letting the customer maintain his or her dignity in an uncomfortable or embarrassing situation is the sign of a professional. It’s easy to roll your eyes or somehow flaunt your knowledge or authority. But it’s a better business decision to ensure the customer’s dignity.

A favorite question most Disney cast members are asked is, “What time is the 3 o’clock parade?” On the surface, it seems like a ridiculous question, and it might be tempting to let the guest know just how ridiculous the question is.

But cast members know that what the guest is really asking is, “What time does the 3 o’clock parade arrive here?” The parade route is a mile long and while it starts at 3 p.m., it doesn’t arrive at some locations until 3:30 p.m.

The secret to maintaining the customer’s dignity is to understand the thought process behind the question or the situation-behind-the-situation. When a customer asks a clearly costumed or uniformed employee, “Do you work here?” what he’s really asking is, “Can you help me?”

When a customer enters the parking lot through the exit, he’s more than likely confused and not purposely breaking the rules.

Too many employees see such situations as an opportunity to belittle or ridicule. But those who handle the situation with compassion are the ones who see the big picture and generate customer loyalty. And they’re appreciated.

“The customer may not always be right, but let’s allow them to be wrong with dignity.” n

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

What’s Next? Four Productivity Predictions for 2023

The best way to predict the future is to create it.”

- Peter Drucker

Making predictions about the future of productivity can be dangerous business. Remember all those people who predicted that the Internet would be a flash in the pan? Yeah, me neither. What I do remember is how wrong they were.

That said, I’m going to make a few predictions about what might happen in 2023 in the productivity field based on what we’re all hearing lately.

1Inflation will continue to eat at your productivity. Inflation has many causes, so we’re not looking to blame it on anyone here. As prices for everyday costs like food, housing and energy rise — some substantially — your dollars buy less, especially when pay doesn’t rise as fast as costs do, which has been the case for decades. This hurts both individuals and businesses. When business and labor costs rise, productivity — rate of output (i.e., profit) per unit of input — inevitably drops. Until the Fed gets its act together and President Biden’s

Inflation Reduction Act begins to work, we won’t tame inflation anytime soon — especially if it rises globally, as seems to be the case. That’s the bad news, but the next few points seem more positive.

2Remote work will continue to be common and likely increase. Many knowledge workers have already proven that it works for them, and they’re just as productive as ever, if not more so. They get to work in comfortable environments, spend more time with family and spend less on childcare, and their commute is measured in steps rather than miles and wasted time. If you can do your work in the time required, does it matter where you do it? You may sacrifice face time with co-workers, but that’s what Zoom and GoTo are for. Only office planners really like the open office or cube farm concepts anyway. Besides, less real estate used means less rent, which increases fiscal productivity.

by LAURA STACK

We will see more freelancers. In a phenomenon related to prediction No. 2, as employers demand workers to return to the office, I expect to see the Great Resignation continue as happy remote workers refuse to return for the above reasons. They may have to pay for their own insurance and have few benefits, but this isn’t always a big deal for younger workers, and often contractors can nab larger per-hour wages because they do have to take care of their own benefits. As more people become contractors and tap into the gig economy, I’d expect to see more “digital nomads.” Some remote workers have already relocated to cheaper states and even cheaper countries. Their reasoning is that they can do remote work effectively almost anywhere — because they can.

We will see the first forays into VR conferencing. Forget Zoom and Skype. If Mark Zuckerberg has his way, virtual meetings will soon morph into a virtual reality service that Zuckerberg is investing in called Metaverse, so you put on your VR headset and meet your co-workers in a shared, virtual environment of your choice to discuss work topics and otherwise keep in touch. Whether this will win over those of us sick of seeing our colleagues on computer screens, some of whom may prefer phone conversations by this point, remains to be seen. Once it works, I suspect it will contribute to the predictions No. 2 and No. 3 above. We’ve already had a decentralized global workforce forming for the last few decades. Effective VR could accelerate this trend.

Working My Way Back to You

Looking back, price inflation seems inevitable to some economists, as many workers return to the global market with plenty of savings from the lockdowns of the pandemics while competing over fewer resources due to closed factories and other service providers. That will likely impact both individual and mass productivity in many disciplines. However, I think the pandemic has also freed workers in many ways by giving them more power to decide when and where they may work. This is not just to their benefit. With no commutes and fewer expenses, some workers may do the same jobs for less, and employers need not pay for nearly as much real estate and some benefits. In time, the productivity benefits should become obvious to all, and inflation won’t last forever. n

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

Preventing Fraud From the Counter to the Computer

Not a day goes by without some sort of news story about theft and fraud. We’ve all experienced fraudulent emails and text messages from criminals who intend on stealing our money and identities. However, opportunities for fraud are everywhere, not just in cyberspace.

In the restaurant business, your best defense is to institute good controls. Good controls keep honest people honest. Temptation overcomes an “honest” individual at the intersection of need, opportunity and the ability to rationalize an action. We can’t do anything about an employee’s financial need or their penchant for rationalization, but we can take steps to minimize the opportunities for theft within our organizations.

Here are some ideas to institute within your restaurant:

At the back door and in storage areas:

• Check in deliveries.

• Put away food and supply orders immediately.

by Mize CPAs

• Have working cameras at the back door and in the storage area.

• Count high-value items frequently.

• Managers should count inventory.

At the point of sale:

• Institute random drawer counts. Employees who commit fraud often do so once they’ve learned the routine. Be disruptive with random checks.

• Observe employees as they ring up sales.

• Install cameras over the point-of-sale area.

• Train and coach employees on procedures and best practices.

• Monitor credit card refunds.

• Closely monitor change orders to ensure funds aren’t diverted.

• Watch out for red flags and inconsistencies. Is there an employee who issues a higher level of refunds or voids more sales compared to others?

• Routinely review employee meal transactions.

In the back office:

Fraud in your back office can take many forms. We’ve seen employees who initiated ACH transfers from the business account to pay their personal utility bills, others who set up “ghost employees” whose wages were directly deposited into personal bank accounts and bank deposits that never actually made it to the bank. How can you catch this kind of fraudulent activity?

First, know your employees. Have your managers frequently review employee rosters to ensure that all employees actually work for your organization and aren’t fictitious.

Second, pay attention. Watch for employees whose financial circumstances change. Are your employees living within their means? How about that “loyal” back-office employee who never wants to take time off? In some cases, that’s an employee who doesn’t want their financial fraud uncovered in their absence.

Third, be careful about delegating. It’s great to have trusted employees who can take tasks off your plate but be careful how much access and authorization you give to them. For instance, don’t share passwords to your email, your bank accounts or your voicemail. It’s okay to allow others “read only” access so they can screen out messages you don’t need, however, giving other people the ability to pose as you can open you up for fraud. Whatever you do, don’t allow others to sign your name on business or personal documents.

Fourth, institute good internal control procedures. It’s important to have procedures and processes that separate financial responsibilities within your organization. For example, the person who pays bills from the business account shouldn’t be the same

person who reconciles the bank account. The person who makes the bank deposit shouldn’t be the same person who verifies that the correct dollar amount of expected deposits actually made it to the bank.

Fifth, communicate frequently. Relay to your new and existing employees that theft and fraud won’t be tolerated within your organization.

Lastly, there are external threats from cyberattacks … Train your office employees to never click on links or open attachments in suspicious emails and to consider every email suspicious! Make sure procedures are in place to protect confidential information about your organization and your employees. When a request for information comes in, have employees independently verify whether it’s a legitimate request. For instance, if an email comes in from your “bank” asking you to click a link to go to your account, pick up the phone and call the bank (using the phone number on their trusted website rather than in the email) to confirm the request is valid.

You work hard to make your organization profitable, so take these steps to keep what you make! n

Mize CPAs Inc. is a full-service accounting firm that has provided the Elevanta accounting and payroll solution since 2003.

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