Flavor, Winter 2019

flavor

THE MAGAZINE OF THE QDOBA FRANCHISEE ASSOCIATION | WINTER 2019

BACK-OFFICE TECH SOLUTIONS FOR THE

PROTECT YOU R SE LF

Guard your business from the domino effect and costly legal pitfalls.

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21

ST

CENTURY

........ page 16

It’s not a matter of IF; it’s a matter of WHEN.

elevanta.com/riskmanagement

Passafiume Talks About His QDOBA Journey in the Franchisee Spotlight

........ page 9

ServiceNow: 888.399.2040 | ServiceNow@McGriffInsurance.com Elevanta Property & Casualty: 866.402.7952 | info@Elevanta.com

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Five Tips for Optimizing Your Wi-Fi Offerings

......... page 14

2/5/19 4:08 PM

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John Abbey 678.540.6202 johna@elevanta.com elevanta.com elevantahealth.com/qfa © 2019 Hughes Network Systems, LLC, an EchoStar company. All rights reserved. HUGHES is a registered trademark of Hughes Network Systems, LLC. 1 ©2018 Hughes Network Systems, LLC. HUGHES is a registered trademark of Hughes Network Systems, LLC. All information is subject to change. All rights reserved.

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table of contents

QFA Board of Directors Ron Stokes Chairman Michael Scott Vice Chairman Stan Kramer Secretary/Treasurer

Columns 2

Chairman’s Column

by Ron Stokes, QFA chairman

Departments 3

QFA Member News

9

Franchisee Spotlight

Elizabeth Lowman Association Manager

10

Look, Listen, Read

Christy Williams Elevanta CEO

11

One Topic: 10 Facts

QFA Editorial Board

Directories

Randy Key Director

On the Cover

Christina Cannon Communications Manager christinac@qdobafa.org

12

Important Cases From 2018

by Michael Garner, Garner & Ginsburg, P.A.

With so many digital touchpoints in their everyday lives, consumers are expecting more and more from the companies they do business with, including restaurants.

Learn more about how QDOBA® franchisees are optimizing in-restaurant offerings and using software to streamline their HR and payroll practices. For more, see page 16.

Rachel Jackson Communications Coordinator rachelj@qdobafa.org

14

Five Tips for Optimizing Your Wi-Fi Offerings

by Christina Cannon, QFA communications manager

Headquarters

Kristi Keith-Hoffman Editor-in-Chief kristik@qdobafa.org Jessica Loeding Managing Editor jessical@qdobafa.org

8

Associate Member Listing

20

Advertisers Guide and Editorial Calendar

Features

16

Back-Office Tech Solutions for the 21st Century

by Christina Cannon

18

Employers’ Toolbox: Time for the Annual Checkup

by Douglas H. Duerr, Elarbee Thompson Sapp and Wilson, LLP

Advertising Sales Jeff Reynolds Director of Business Partner Relations jeffr@qdobafa.org 678-797-5163

Design and Layout Kristen Thomas KT Graphic Design ktgraphicdesign@gmail.com

In keeping with our commitment to the environment, this publication is printed on certified, environmentally friendly recycled paper using eco-friendly inks.

1701 Barrett Lakes Blvd. NW, Suite 180 Kennesaw, GA 30144 Phone: 678-797-5160 Fax: 678-797-5170

www.qdobafa.org Qdoba Franchisee Association publishes Flavor. Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of Qdoba Franchisee Association. All Rights Reserved.

Copyright © 2019 Printed in the U.S.A.

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chairman’s column

The start of a new year often represents change.

P

eople make personal commitments, and businesses begin or ramp up the hard work of rolling out and implementing new goals and processes. There’s no time like the present, and I can say I am excited for what the coming year will bring, not just for my company but for the QDOBA® brand as a whole. As the new year ushers in new opportunities, we have to be ready to take advantage of them.

As a relatively new franchisee association, it is important for us to build and strengthen our franchisee community, and that takes commitment.

Our brand leadership has gone through tremendous change in the past year, and 2019 will also be a year full of growth potential for those at QDOBA Corporate. We have a unique opportunity to spend time with these individuals at the 2019 QFA Franchisee Convention, held Feb. 19-22 in Tucson, Arizona, and it will benefit you greatly to hear firsthand what will be coming down the pipeline this year and in years to come. This event will offer unprecedented access to representatives from corporate, and franchisees will have plenty of opportunities to connect and ask 2

questions.

This convention isn’t all about connecting with the movers and shakers at corporate, however. As a relatively new franchisee association, it is important for us to build and strengthen our franchisee community, and that takes commitment.

While attending the event does mean time away from your business, I am confident that everyone who attends the 2019 QFA Franchisee Convention will walk away with actionable items they can take back to their stores to grow sales. We have very talented operators in the system, and we need to continue to learn from each other.

I also hope franchisees will become closer as peers as a result of the convention.

We have set up what is sure to be a lively a golf tournament, Feb. 19, for those able to attend. This is an opportunity to relax at a truly beautiful property and get to know one another.

While the convention will supply ideas and material for franchisees to take their business to the next level, we cannot become complacent. Opportunities abound for us as franchisees to help make the QDOBA brand better than ever. While we are at the head of the pack in terms of flavor and food quality within our industry, there is still work to be done when it comes to connecting with today’s consumer. This issue of Flavor discusses how to utilize the world of technology, and more specifically Wi-Fi, to elevate the customer experience.

This issue will also highlight how to use tech to make your back-office operations more efficient. Learn how other franchisees are optimizing in-restaurant offerings and using software to streamline their HR and payroll practices.

As we dive head first into the new flavor WINTER 2019

While the convention will supply ideas and material for franchisees to take their business to the next level, we cannot become complacent. Opportunities abound for us as franchisees to help make the QDOBA brand better than ever. year, there are so many opportunities for growth. I hope you all will continue to seek out chances to better the brand and your business, and I look forward to seeing everyone in Tucson! l

Ron Stokes Chairman

member news

CMP Foods Inc. Holds Successful Grand Opening of Albert Lea Location T

his past October, CMP Foods Inc. opened its Albert Lea, Minnesota, QDOBA® location to the public, and the outcome of opening day exceeded expectations.

With a strong social media presence, CMP Foods Inc. drew in locals through Facebook campaigns and giveaways. “We had an incredible response to our Facebook page with 4,000 likes by opening week, and multiple posts had over 50,000 views,” said Mark Miller, who owns CMP Foods Inc. along with his wife Leigh, Mike Cooper and Evan Porttiin. “For several weeks before the opening, we gave away two 10-person ‘Nacho Samplers’ via Facebook. Our closest store is two hours away, so we limited the giveaways to nachos, queso, guac and salsas.

Additionally, we gave a 50 percent discount to a 500-person catering that we did a few days before opening.”

On opening day, CMP Foods Inc.’s Albert Lea QDOBA saw 1,324 customers.

Two nights before the big opening, CMP

Foods Inc. held a friends and family night and a big hero night that honored local police, firefighters and first responders, which contributed to the opening day’s success.

“This is in a town of 18,000 people that hasn’t had a new, national chain restaurant open in several years, and this is the first fast-casual restaurant to open within dozens of miles,” said Miller.

Even though CMP Foods Inc. didn’t offer any discounts on opening day, its store saw an incredible reaction from the community and the customers who came in to try its food. With a few minor setbacks, QDOBA proved to its new community that its food and customer service is top-notch.

“Due to a production issue and to the fact that we were able to open four days early, we didn’t even have signs on the building until our fourth day. We were blown away by the response from the community,” said Miller. “It was the

CMP Foods Inc. couldn’t be happier with the outcome of the grand opening of its Albert Lea, Minnesota, location.

highest volume first week of the four stores we’ve opened. We’re very proud of the employees. They did an amazing job and continue to impress us.” l

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www.dartcontainer.com flavor WINTER 2019

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member news

Franchisee Matt Herridge Learns Lessons of Planning and Perseverance Through Spartan Racing

I

n business and in life, there are times when thoughts of failure and doubt seep into one’s conscience, but pushing past those thoughts is what leads individuals and organizations to success. Without a doubt, QMG Venture owner and QDOBA Mexican Eats® franchisee Matt Herridge has had his share of success when it comes to operating a business, but he has had some individual wins, too.

Herridge began running at age 25 and, after some encouragement from friends, decided to start running competitively several years ago. Herridge completed his first Spartan race in 2016 and loved it so much that he did three of them the following year. In 2018, Herridge completed five Spartan Races, with his most recent race being a Spartan Beast – a 15 mile, 35-plus obstacle course challenge – that took place in Lake Tahoe, Utah.

Since Herridge began running over two decades ago, he said the No. 1 lesson he has learned is that running is a “long game.” Herridge frequently sees people rocket out of the gate at competitions and notes that most of those that do end up getting passed about halfway through the race.

“It’s very easy to run too fast too early.

It takes discipline to slow down and run your race. I have also learned that training

4

Matt Herridge competed in the Ohio Spartan Sprint on June 3, 2018.

with other like-minded individuals is another real key to success. I definitely would not work as hard or as often without friends to join me,” said Herridge.

“Running teaches the importance of never quitting. Once thoughts of giving up enter your mind, it has a real effect on the body.

The discipline that exercise teaches is very relevant to business, and things that go up fast also fall fast. The long game is much more important than the short game, and all behavior has its own reward.”

In addition to cultivating a support group and developing his “long game,”

flavor WINTER 2019

Herridge has also learned some more practical lessons, too. Among those is the importance of a good pair of shoes.

Herridge ran his very first Spartan race (a Spartan Sprint that consists of 3-5 miles and roughly 20 obstacles) in a pair of old running shoes with little to no traction.

He has also learned how to properly cross train and can now tackle obstacles such as spinning monkey bars and cross hanging rings with much more ease than he once could.

But Herridge is still learning and met some of his most challenging obstacles, both mentally and physically, this fall during the Spartan World Championship at Lake Tahoe. The grueling course included climbing two mountains at the Squaw Valley Ski Resort and had participants cover approximately 15 miles and almost 40 obstacles. Herridge raced with a team of five other individuals that included his son, as well as his training partner.

“After a race, no matter how sore or injured you are, there is always a euphoric-like feeling knowing you completed it.”

– Matt Herridge Low temperatures and wind were a concern for many participants at the championship race, and Herridge and his team arrived at Lake Tahoe three days before the race to properly acclimate to racing in such a grueling environment.

Herridge notes that a previously “learned lesson” was to always race the way you train, but this time the rule didn’t pan out.

Sporting his typical outfit of shorts and trail running shoes, Herridge notes the first peak he reached was extremely cold, not to mention he saw a bear and her cub on the way up the mountain. To make matters more difficult, the Lake Tahoe Spartan race included a lake swim before racers made their ascent up the mountain.

“The lake swim was difficult because of the temperature. I have never been in water that cold before, and my body immediately went numb. I found that I could not use my legs at all and only made progress with

member news

Matt Herridge and his team at the Lake Tahoe Spartan Beast on Sept. 29, 2018.

my arms,” recalled Herridge. “The water was so cold that getting out of it into high winds and a 40-degree temperature felt great. Spartan rarely closes an obstacle, but 30 minutes after we completed it, they closed it due to so many people becoming hypothermic and in need of evacuation down the mountain.”

Another one of Herridge’s top obstacles was a log carry he encountered at the West Virginia U.S. Championship in 2017. The obstacle entailed carrying a 1 CFC-1258 QDOBA AD_pressquality.pdf 70-pound log down a hill and then back

up on a trail with a lot of loose rocks and very few opportunities to gain solid footing. Furthermore, the obstacle was placed around mile 12 of the race.

“I have learned a lot about how to tackle obstacles,” said Herridge. “After a race, no matter how sore or injured you are, there is always a euphoric-like feeling knowing you completed it. I think that is what has made obstacle course competitions so popular, and it’s great to see people from all walks of life and all levels of ability complete a competition.”

Herridge notes that when it comes to Spartan racing, having a goal and a scheduled date is what really motivates him, and he is always looking forward to the next race.

Currently, he trains 1-4 times every day, and workouts usually include a minimum of one hour of running and one hour of resistance or obstacle course training.

Herridge’s favorite part of Spartan racing and training is getting to work on upper-body, ninja-like obstacles, and he has been a top competitor within his age group at several Spartan races. Spartan has even taken to using competition photos of 1/16/19 9:02 AM Herridge to advertise the 2019 age group

flavor WINTER 2019

championship, as well as for a Father’s Day promotion.

While Herridge has seen his fair share of bruises and scrapes, he isn’t done quite yet and is looking forward to a 2019 full of firsts. Herridge hopes to compete in 6-8 races this year and is committed to putting in the work to climb the ranking ladder within his age group. l

Matt Herridge is consistently a top performer in his age group and has been used to advertise the segment.

5

member news

QDOBA Franchisee Inducted Into the Scandinavian-American Hall of Fame O

n Sept. 25, 2018, Myron Thompson was nominated by his son, Chad Thompson, franchisee with Dakota Kid, LLC, to be inducted into the Norsk Hostfest Scandinavian-American Hall of Fame.

The Norsk Hostfest is the largest Scandinavian festival in North America with thousands of attendees coming together in Minot, North Dakota, to celebrate Scandinavian culture and entertainment. Norsk Hostfest typically features an array of Nordic exhibits, including internationally known artisans and craftsmen, food, entertainment, dressing in authentic jewelry and clothes, and the announcing of the annual ScandinavianAmerican Hall of Fame inductees.

The Scandinavian-American Hall of Fame is designed to honor those of Scandinavian descent in the United States who have made a huge impact in their community and on mankind. This year, Myron Thompson was one of three individuals to be inducted into the hall of fame.

Nominated by his son, Thompson was chosen for his profound presence in the community’s restaurant industry and community service. Thompson was awarded a plaque and Ole Bull award during a banquet for the inductees. The Ole Bull award is a hand-crafted sculpture of the

Myron Thompson’s family was in attendance at the induction banquet held on Sept. 25, 2018.

internationally acclaimed violin virtuoso, Ole Bull, and is awarded to recipients who exemplify Ole Bull’s notable traits.

“Myron has been a great supporter of the Norsk Hostfest for many, many years with monetary donations as well as his restaurant concepts QDOBA® and Applebee’s providing meals to volunteers during the

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6

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Chad Thompson presented Myron Thompson with his induction plaque and Ole Bull award.

festival,” said Lisa Thompson, executive administrative assistant with Thompson’s Food Management Investors Inc. In attendance at the banquet were Thompson’s family, including his wife of 51 years, Shirley, and his mother, Lila, who celebrated her 99th birthday in November.

Some of Food Management Investor’s Inc. staff were in attendance as well to watch Thompson accept an award presented by his son and deliver a speech.

“Myron made a special note in his speech, thanking both Shirley and his mother for such amazing support over the years,” said Lisa. l

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member news

Fresh Made Foods Sponsors CCYA Holiday Lunch for Second Year in a Row F

or the second year in a row, Tim Velleca’s Fresh Made Foods got into the holiday spirit on Dec. 9 by helping those who are less fortunate. Fresh Made Foods donated a catering spread, valued at $4,800, for 400 people to Atlanta’s at-risk youth and the individuals and businesses who sponsored them. The Christmas lunch was celebrating its fifth year and is organized by the Center for Children & Young Adults (CCYA) as a way to provide a brighter Christmas for teens who are currently in foster care and often don’t receive gifts during the holidays.

Prior to the event, businesses, families and individuals sign up to sponsor a teen.

Participants are provided with a list of needs and wants the week of Thanksgiving and are encouraged to spend roughly $250 to purchase as many items and gifts as possible.

On the day of the event, children sit with their sponsors and have lunch, which this year was a QDOBA® burrito bar. After the

meal, the teens open their gifts and even have a little time to let loose on the dance floor.

“Everyone kept thanking me for my generosity, but all I did was feed them,” said Velleca. “I also couldn’t do this without my staff. They do all the work. I just help deliver and clean up. I have an amazing group of people supporting all of our efforts in the community.”

Although Velleca’s efforts are appreciated every year, this year was especially important for CCYA to have support as the group saw hefty donation cuts from Cobb County and the United Way. The organization also utilized the event to sell books that contained a collection of stories about the very youth the participants were sponsoring. Attendees at the Christmas luncheon also could purchase signs that read “The Best is Yet to Come,” which serves as the tagline for the CCYA. “The CCYA is very protective of

the children and their safety, as you can imagine. Sadly, some children had to be relocated from the center within 72 hours of the event for safety reasons and others were unable to participate altogether,” explained Velleca. “Conversely, there was a child who had arrived at the center that very morning. It’s so important for us as a business to be able to help those in need.”

In addition to the CCYA catering donation, throughout the month of December, Fresh Made Foods also fed the entire staff at Brookhaven Innovation Academy; fed the staff at Homestretch, a nonprofit that works on affordable housing; handed out 150 breakfast burritos at the Salvation Army’s Jingle Jog 5K; fed the staff for a local veterinarian’s office; catered a meal for the staff of Meta-music, a music learning business; and donated a 25-person catering to support a silent auction for Lambert High School. l

Michael Gentry

Tonya Moody

Lacinda Kasparek

AUSTIN, TEXAS 512-983-8980

DENVER, COLORADO 303-905-4067

AUSTIN, TEXAS 512-740-3983

flavor WINTER 2019

7

Support the Vendors

THAT SUPPORT YOUR ASSOCIATION

8

COMPANY NAME

LEVEL

CONTACT NAME

EMAIL

PHONE

Hughes

Emerald

Neda Noorani

neda.noorani@hughes.com

858-452-4650

Barco Uniforms

Sapphire

Kimberly Scott

kimberly.scott@barcouniforms.com

310-719-2171

McIlhenny Co. – Tabasco Brands

Sapphire

John Occhipinti

john.occhipinti@tabasco.com

337-256-3366

SSDC/Ecolab

Sapphire

Jack Helton

jack@ssdcsoap.com

214-533-9793

The Cholula Food Co.

Sapphire

Doug West

dwest@cholula.com

424-275-5728

Avanti Restaurant Solutions

Pearl

Bolt Bolton

bolt@avanticorporate.com

916-378-0337

Cargill Foodservice

Pearl

Irena Hall

maria_rieger@cargill.com

949-412-1094

Dart Container

Pearl

Amanda Hamann

amanda.hamann@dart.biz

480-338-1937

Selecto Inc.

Pearl

Jessica Bridgeman

jessica@selectoinc.com

678-475-0799

The Coca-Cola Co.

Pearl

Kyle McCarthy

kmccarthy@coca-cola.com

949-241-9086

TriMark Hockenbergs

Pearl

Michael Gentry

michael.gentry@trimarkusa.com

512-983-8980

Zenput

Pearl

Nikki Perry

nikki@zenput.com

678-528-2984

AAP

Assoc. Mbr.

Roger Martinez

rmartinez@aaphcm.com

843-514-3298

Ascentium Capital

Assoc. Mbr.

Len Baccaro

lenbaccaro@ascentiumcapital.com

281-902-1931

Bluetree Casework

Assoc. Mbr.

Kraig Arthur

karthur@gobluetree.com

816-369-8344

Bunge Loders Croklaan

Assoc. Mbr.

Kevin Kuhn

kevin.kuhn@bunge.com

847-922-4670

CTI Foods

Assoc. Mbr.

Keith Dunning

kdunning@ctifoods.com

208-482-4233

Daisy Brand

Assoc. Mbr.

Jeff Stevens

jstevens@daisybrand.com

512-658-7784

Direct Advantage Magazine

Assoc. Mbr.

Andrew Ettinger

andrew.ettinger@gmail.com

203-243-5671

Eagle Eye Networks

Assoc. Mbr.

Joshua Wesley

jwesley@een.com

512-473-0500

Global Media Group

Assoc. Mbr.

Mary Rosenberg

mary@globalmediagroup.com

619-540-4869

GP Pro | Georgia-Pacific, LLC

Assoc. Mbr.

Mike Carroll

michael.carroll2@gapac.com

949-981-1930

Heritage Parts

Assoc. Mbr.

Chuck Maddox

chuck.maddox@heritageparts.com

800-458-5593

Kerry

Assoc. Mbr.

Kris Hahn

kris.hahn@kerry.com

858-220-1215

Keurig Dr Pepper

Assoc. Mbr.

Chad Dohlman

chad.dohlman@dpsg.com

480-279-4396

Kidzpace Interactive Inc.

Assoc. Mbr.

Nancy Stockdale

nancy@kidzpace.com

800-668-0206

Lingle Design Group

Assoc. Mbr.

Carl Lingle

carllingle@lingledesign.com

815-369-9155

Live Oak Bank

Assoc. Mbr.

Sarah Carroll

sarah.carroll@liveoak.bank

910-550-2308

Loomis

Assoc. Mbr.

Mike Anderson

mike.anderson@us.loomis.com

832-985-8728

Mood Media

Assoc. Mbr.

Lisa Pendleton

lisa.pendleton@moodmedia.com

214-709-2693

Morton Salt Inc.

Assoc. Mbr.

Kristen Schultz

kschultz8828@gmail.com

312-415-8790

Pacific Cheese Co.

Assoc. Mbr.

Courtney Sloan

csloan@pacificcheese.com

510-780-8235

rapid! PayCard – SimplyPaid

Assoc. Mbr.

Steve McDonald

smcdonald@rapidpaycard.com

503-720-1187

Smithfield

Assoc. Mbr.

Jeff Ames

james@smithfield.com

480-460-5481

SignResource

Assoc. Mbr.

Ramon Ortiz

rortiz@signresource.com

328-326-6463

Sun Orchard

Assoc. Mbr.

Beverly Lea

blea@sunorchard.com

909-224-6097

The Middleby Corp.

Assoc. Mbr.

Sandy Tyler

styler@middleby.com

318-458-6630

The Payroll Co.

Assoc. Mbr.

Carrie Falk

carrief@payrollcompany.biz

608-440-2942

TraitSet HIRE

Assoc. Mbr.

Lenny Crouse

lenny@hrgems.com

563-580-2649

Tundra Restaurant Supply

Assoc. Mbr.

Joel White

jwhite@etundra.com

303-545-1328

Tyson Foods Inc.

Assoc. Mbr.

Ryan Hollman

ryan.hollman@tyson.com

925-330-5080

Unified Brands

Assoc. Mbr.

Craig Cooper

ccooper@unifiedbrands.com

601-278-9164

Valley Proteins

Assoc. Mbr.

Ron Rogers

rrogers@valleyproteins.com

540-877-3220

Villa Lighting

Assoc. Mbr.

Steve Barker

steve.barker@villalighting.com

800-325-0963

flavor WINTER 2019

franchisee spotlight

Daniel Passafiume Company name: Canticle Inc. Number of restaurants: 5 State your restaurants operate in: West Virginia

How did you become a QDOBA® franchisee?

Our family used to frequently eat at QDOBA back when it was called Z-Teca in Louisville, Kentucky. We had kept an eye on the brand for a while and decided to bring QDOBA to West Virginia in 2010.

How did you meet your business partners?

My business partner is my father, Paul Passafiume. I have been working in different concepts for a little over 15 years and, when I graduated from college, decided to work for QDOBA’s main competitor for almost five years. At the end of 2017, I came on to the company in a consulting role and decided after being around for a few months that I wanted to stick around and take on a bigger role.

In your opinion, what stands out about the QDOBA brand?

What do you feel is the biggest challenge currently facing franchisees?

Labor challenges. It’s never been more important to create positive cultures where people feel valued and cared about. When people know they are cared about, they will not only stay but will work toward whatever the vision is.

What is the biggest industry change that you have seen since you started?

Unique flavors, handcrafted ingredients and unparalleled queso. We don’t get enough credit for how much in-house cooking we do!

Technology seems to be developing and changing so quickly.

The influence of the internet and social media on food culture and brands seems to be the latest thing.

What is the best piece of business advice you have ever received?

Tell us a little bit about your family.

Focus on people first.

Looking ahead, what are your top three business goals for the company?

1. Improve sustainability of systems.

2. Technological improvements.

3. Grow sales and improve profitability.

My wife, Katie, and I had our first child, James, in July 2018.

I have two older brothers, Nick and John, and two younger sisters, Sarah and Olivia. No one else is involved in restaurants, but most of us live in Louisville. We are diehard Louisville Cardinals fans.

Go Cards!

If I weren’t a franchisee, I would be …

… a chef. I love to cook. l

flavor WINTER 2019

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LOOK LISTEN READ

L

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

1

Monday.com

is a new, easy way to manage your business, and plan, organize and track everything from marketing to HR. Use this multiplatform project management and collaboration tool to create an easier onboarding process, customize your workflow and track progress at a glance.

2

From bestselling author of The Educated Franchisee, Rick Bisio’s Franchise Focus is a valuable podcast that brings franchising insights and his unique experiences together in one easily accessible podcast.

3

Looking for an easy way to plan ahead of time and ensure all the details are in order? Wunderlist is a great app to use for taking notes, making lists and planning jobs and projects no matter where you are. Easily accessible from almost anywhere, including iPhone, iPad, Mac, Android, Windows, Kindle Fire or the internet, use Wunderlist to collaborate with employees and even customers to ensure that everyone is on the same page with any project at hand.

4

“The Leader’s Companion: Insights on Leadership Through the Ages” by J. Thomas Wren

explores diverse perspectives on leadership throughout the different ages around the world. Writings by Plato, Aristotle, Lao-tzu and many more leads to the many insights on the practices and problems of leadership.

5

Would you like to have anywhere access to important files and documents? With the help of Unifyle you can easily leave files where they are and offer employees cloud-like access to consumer file services.

This software allows you full mobile access to files without having to move, copy or complicate anything. You can even connect to other cloud services for full visibility and control.

6

Asana is a

wonderful project management app that millions of people use across 19 different countries. Asana gives you everything you need to coordinate team members and projects and hit your targeted deadlines. With the help from Asana, teams are 45 percent more efficient, and 85 percent of customers say Asana gives their team more clarity. Use this app to help you plan and manage your to-do lists, timeline, boards and calendar!

7

In “Drive: The Surprising Truth About What Motivates Us,” Daniel H.

Pink delves into the three elements of motivation – autonomy, mastery and purpose – and proposes intriguing techniques for putting these elements of motivation into action and transforming the way we live. With over four decades of scientific research on human motivation, Pink provides persuasive arguments on human motivation.

8

Want to see where your business stands financially but don’t know where to begin?

Look to FreshBooks, an app that makes viewing your finances and reports simple! By using insightful dashboards and reports, this app is valuable by showing you exactly what you need. FreshBooks makes tax time easier and helps you track spending, recent activity, profit and loss reports, sales tax summary and more.

9

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calendar of events QFA Franchisee Convention Feb. 19-22, 2019 Tucson, Arizona ©2018 The Coca-Cola Company. All Rights Reserved.

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One topic: 10 facts

Learning and Communication

1

6

More than 80 percent of HR managers consider learning an important component of organizational health.

Almost 50 percent of employees believe that the organization they work for doesn’t value collaboration enough.

2

7

The average company spends just over $1,000 on professional development for each employee, and that number is on the rise.

Almost 90 percent of employees consider communication the single biggest determinant in product failure …

3

8 … Yet, 27 percent of them actually receive communication training.

Employee development is the No. 1 reason why employees find themselves moving to a different company.

9

4 Nearly 70 percent of employees in today’s workforce feel disengaged.

5 In 2016, a study conducted to determine how the modern workforce learns found that 80 percent of millennials prefer real-time feedback in an interactive environment.

Companies with a comprehensive training program see a 218 percent higher income per employee.

10 According to a recent study, 70 percent of employees feel more motivated to learn if they can do so on a mobile device.

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Source: PlayerLync 11

Important Cases From 2018

by W. Michael Garner, Esq.

T

he law constantly changes as courts decide cases. What was good law last year may not be good law now. In this article, we are taking a look at three important decisions that came down during 2018.

No-Poach Agreements Held Unlawful. In June, a federal court in Illinois ruled in favor of a McDonald’s franchisee and held that provisions in its franchise agreement that prohibited the hiring of other franchisees’ employees may be in violation of the antitrust laws and therefore unenforceable. The decision prompted a number of state attorney generals to look into such “non-solicitation” provisions, and those investigations are continuing. The state of Washington has challenged the provisions with a number of large franchisors and has entered into consent decrees with some of them requiring them not to enforce these provisions or include them in future franchise agreements. A number of franchisors have voluntarily removed their “no-poach” provisions.

The provision in the McDonald’s agreement prohibited a franchisee from employing or seeking to employ any person who was employed by McDonald’s, its subsidiaries or of any franchisee, and applied to ex-employees until they had left the prior McDonald’s employment for at least six months. The QDOBA Franchise 12

Agreement has a non-solicitation provision, but it is limited to solicitation in the manner prohibited by the operations agreement. It, therefore, would not fall squarely within the holding of the McDonald’s decision. The takeaway here, however, is that “no-poach” provisions are likely to be on their way out.

Franchisor’s Right to Enforce Standards Upheld. In another case out of the federal court in Illinois, a KFC franchisee had obtained permission from the franchisor in 2002 to sell and market halal chicken based on its location and demographics.

KFC approved the sale of the chicken, helped the franchisee find processors and distributors, and allowed him to obtain an annual certificate certifying that the chicken was halal-compliant. The plaintiff sold and marketed halal chicken for 14 years until, in late 2016, KFC demanded that it stop marketing the products as halal.

KFC’s demand was based on a 2009 policy prohibiting franchisees from making religious dietary claims about KFC products. The policy was based upon the fact that people have different perceptions of what satisfies religious processing requirements and that the franchisee could not certify that restaurant preparation and

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cooking processes would not lead to cross contamination with non-halal products.

What followed was a change in franchise agreements, with franchisors inserting elaborate reservations of rights to put new locations wherever they wished; the courts almost uniformly upheld these new provisions.

The court sided with KFC. It based its decision on provisions of the franchise agreement stating that the franchisee would strictly comply with requirements of KFC, that the franchisee would display only advertising that met KFC standards, and that KFC’s failure to enforce the policy for seven years did not waive its rights to do so. The court rejected the franchisee’s argument that simply making a truthful statement that the chicken was halal-certified was not advertising. Rather, even a truthful statement was advertising, and KFC “unambiguously has complete control” over advertising.

Thus, the franchisee was left in the odd position of being able to sell a product that it could not advertise.

Encroachment, Yet Again. Twenty-five years ago, the issue of encroachment – a franchisor’s putting a new unit within the territory or close to an existing franchisee, was a hot legal topic. At that time, a Florida decision holding that BURGER KING® could

not locate a new unit unreasonably close to an existing unit, and a California decision taking the same position, were followed by numerous actions by franchisees challenging franchisors. Usually, these cases were based on contractual language that said the franchisee was entitled to a location but not an exclusive territory. The courts held that, since the franchisor did not expressly reserve the right to locate new franchisees close to existing franchisees, there was an implied right for the existing franchisee to have a protected marketing territory. What followed was a change in franchise agreements, with franchisors inserting elaborate reservations of rights to put new locations wherever they wished; the courts almost uniformly upheld these new provisions. Encroachment became a dead issue.

In a new case, however, a franchisee of El Pollo Loco challenged the franchisor’s placement of a new location near it; the court held that the franchisor’s reservation of rights was unconscionable and unenforceable. Moreover, even if it was enforceable, the franchisor was subject to a duty to act in good faith so as not to harm the existing franchisee.

Does the case signal a new trend? Probably not. The franchisor has appealed and predicted that the decision will be reversed. l W. Michael Garner is a partner at Garner & Ginsburg, P.A. Garner has practiced franchise and distribution law for over 30 years and is regarded as one of the nation’s premier trial lawyers and legal writers in the field. For more information on Michael and Garner & Ginsburg, P.A., visit www.yourfranchiselawyer.com; call him at 612-259-4800; or email wmgarner@yourfranchiselawyer.com.

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RON STOKES, PRESIDENT, ROARING FORK RESTAURANT GROUP Qdoba Franchisee operating in the midwest with 58 restaurants -4-

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13

TIPS

For Optimizing Your Wi-Fi Offerings

by Christina Cannon

W

ith so many digital touchpoints in their everyday lives, consumers are expecting more and more from the companies they do business with, and restaurants serving up their favorite dish are no exception. It’s no longer enough to offer good food at a great price with exceptional service.

Now patrons are wanting their favorite brands to cater to their digital needs, and offering some simple comforts such as Wi-Fi can go a long way to enhance the guest experience. But you have to do it right.

“We do provide Wi-Fi to our guests. We have high-speed internet just to make it a better customer experience, and a lot of our guests use the Wi-Fi,” said Debbie Peterson, franchisee with Q Loco.

If done right, your business can become a hub for students, freelancers or casual web surfers, but offer an inconsistent browsing experience and you risk irritating customers and driving them away from your business. Given all of its potential, it may seem like a no-brainer to offer guests Wi-Fi, but there are several factors that franchisees need to consider when make decisions around their offerings.

Separate Wi-Fi Based on Usage.

While setting up one Wi-Fi network and calling it a day will save you money in the short term, having business functions 14

operating on Wi-Fi that is available to your guests presents issues in the long term. Doing so makes your company an easy target for hackers and data breaches that could easily taint your restaurant’s reputation.

Peterson maintains separate Wi-Fi bands for business and guest needs, and also has firewalls in place to further protect business operations.

For POS systems that also use Wi-Fi connectivity, there is an added risk that customer credit card information could be stolen if networks are not properly set up.

“We maintain tight control over our internet access and have different levels of service based on restaurant priorities,” added Matt Herridge, franchisee with QMG Venture.

Have a Professional Set Up Your Network.

Another tip for those thinking of offering Wi-Fi is to hire a professional to set up your network. By using a professional, you have an added layer of security that equipment will be installed and operate properly, and many professional companies can suggest additional tools to add to your cyber security arsenal.

Whether you need to encrypt data, lock a network or install

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anti-virus protections, a professional should be able to take care of your business needs. “Reliability and speed are key to guest satisfaction, and we are strong proponents of choice when it comes to providers,” said Herridge.

Herridge believes operators should be provided the freedom to shop around for an internet service provider or other professional that best suits the need of their business.

Don’t Forget to Evaluate Bandwidth.

Once an operator has made the decision to offer Wi-Fi, they will need to determine how much bandwidth they’ll need to maintain speedy business operations, as well as provide their guest with a hassle-free experience. Bandwidth needs for customers will vary based on the type of media being consumed, but a general guideline is to supply roughly 1.2 megabits per second for every 10 users.

Peterson notes that her locations have not yet seen any issues with insufficient bandwidth, but she does see that it could be an issue in the future.

“The battle for bandwidth within the restaurant will continue,” added Herridge. “As more wireless applications demand it, providing consistently fast service will be a top priority.”

Set Up a Guest Password.

Another simple measure operators can take to ensure they are meeting diners’ needs while maintaining secure operations is to set up a Wi-Fi password for anyone wanting to connect to a network. Owners provide another layer of security by posting the

Wi-Fi password somewhere within the restaurant or encouraging patrons to ask an employee for the password.

Not only is this safer, it can also prevent nearby individuals who are not dining in your restaurant from taking up bandwidth.

If desired, operators can also print a Wi-Fi password on customer receipts to ensure anyone using the network has made a purchase.

To have a password-protected network reach its full potential, managers should change the password often.

Limit Usage if Necessary.

Franchisees implementing a Wi-Fi offering may also want to limit their customers’ usage. Giving customers the ability to connect to the internet may make them slow down their pace, meaning lines are longer and there aren’t as many available tables.

To prevent this, some restaurants have found success in limiting patrons to 30 minutes or an hour of free Wi-Fi. This allows them to still respond to email, check social media and browse the web without deterring other customers from entering a crowded restaurant where diners have set up camp.

While it does have its cons, by and large, offering Wi-Fi to guests is beneficial for restauranteurs. Wi-Fi is a cheap way to bring a wider variety of customers and larger groups into your restaurant, and guests are more likely to post photos and reviews of your establishment if they have internet access. l

Christina Cannon is the QFA communications manager. You can reach Cannon at 678-797-5165 or christinac@qdobafa.org.

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15

Back-Office Tech Solutions for the 21st Century

by Christina Cannon

F

or all of its quirks and pitfalls, technology makes our lives easier.

Whether it’s applying for a job, vetting a big purchase or running a restaurant, these 0s and 1s make it easier to process the vast amounts of information available at our fingertips. But, for a restaurant owner, it can be daunting to transition your company into a digital mecca of data, processes and automation.

“Utilizing technology is absolutely necessary for profitability and sales building,” said QMG Venture franchisee Matt Herridge. “Managing your back office is essential in order to adapt to changes in regulations, marketing promotions and labor issues.”

Some experts suggest turning any feelings of fear and apprehension into those of desire. Simply put, what do you want technology to do for your business? No two businesses are alike and neither are their needs, but here are some common ways to implement technology in your back office to achieve a whole new level of efficiency.

Automated inventory management For savvy operators, gone are the days of filling out order sheets with a pen and paper or even using spreadsheets to maintain track of certain items. Many restaurants are switching over to electronic inventory systems that provide better 16

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visibility into what’s in the store. Often, through the use of a mobile device such as a phone or tablet, employees are able to submit and view inventory counts, and managers can set up customized counting schedules for each product. By connecting an inventory management solution to a POS system and importing recipes, ingredient counts can be automatically updated with every transaction.

Purchase order management Knowing how much food is in a restaurant is only half the battle of running a smooth operation. If your inventory management tool shows you only have five jalapenos left, you still only have five jalapenos left unless you order more … or have a tool do it for you. Automated purchasing tools are becoming more and more popular and can help operators and managers avoid a lot of headaches. Purchasing systems are synced with inventory systems and can place orders automatically once items hit a certain threshold. Often, the entire purchasing process can be managed through an app and includes everything from approving suggested orders and verifying invoices to comparing bid prices.

Workforce management Perhaps one of the biggest opportunities for restaurant operators to save

time and money is with their people.

According to a survey from Sage, small businesses spend up to 240 days per year (which totals about 17 percent of their total manpower) on administrative tasks. The majority of these tasks involve accounting, HR, payroll and training, but luckily, there are many tools to help streamline these processes.

“We leverage technology through our use of automated onboarding, automated HR reporting, scheduling and our clockin/clock-out system,” said Herridge, who also owns a software development and networking company that aims to produce business intelligence solutions for the restaurant industry. “My team now has immediate access to reports in an intuitive way and AI prompting that allows them to focus on the guest instead of ‘fixing’ poorly designed technology.”

Herridge notes that his scheduling software not only provides him with a real-time overview as an owner, but it also helps the manager in charge maintain the correct amount of labor by showing labor need predictions for the next half hour.

"Now we have managers who are not trying to fix labor after the fact, but they

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are actively managing their labor ahead of time. Our approach and our belief is there is an ideal amount of labor that people need depending on sales, and we believe that it is best to always try to hit right at that ideal – not too much labor nor too little either,” said Herridge. “Our solution works very well for us and is a one-stop shop integration platform, and our tools have allowed for a significant increase in profitability and greater ability to focus on guest service.”

Many HR and staffing solutions use historical staffing patterns and forecasted sales levels to generate a schedule that avoids over- or under-staffing the restaurant. These programs often take into account employee availability, time-off requests and shift swaps, and can be easily and intuitively updated.

Digitally enhanced onboarding While digitally optimizing your onboarding experience might not be the easiest route to take, many companies are finding that it’s well worth the effort.

Industry experts suggest replacing training modules, videos and demonstrations with

the emerging world of virtual reality (VR) can do wonders for new team members coming on board with a company. By utilizing a headset with custom software, businesses can give new hires a 360-degree tour of the facility and show them other employees at work. Employees can also test their skills in simulation games.

While VR onboarding is just beginning to take off within the restaurant industry, companies that utilize it note better prepared, more engaged and more knowledgeable employees. In addition to creating more skilled workers, using VR onboarding also cuts down on safety risk by not having trainees in the restaurant until they’ve learned how to properly handle food and equipment.

Conclusion According to business software and service provider G2 Crowd, 95 percent of restauranteurs think technology improves their restaurant’s efficiency. So why, then, do so many restaurants seem to be stuck in the past? Studies often site implementation costs, time consumption, lack of training and incompatible legacy systems as some of

the top reasons that small-business owners don’t implement new technologies.

“In today’s world, at a minimum, it is very important to have an in-house IT professional to manage all technology needs. In the past, there were franchisor IT leads that didn’t understand restaurant operations, but thankfully, that has changed,” said Herridge. “Sometimes another hurdle owners have to cross is having veteran managers that prefer to operate by what their ‘gut’ tells them rather than automated analysis.”

When this happens, franchisees need to lead by example and train employees to make decisions on data. Above all else, just go for it says Herridge. “For franchisees considering implementing a software solution that’s going to help their business grow, what are you waiting for? The sooner, the better.” l

Christina Cannon is the QFA communications manager. You can reach Cannon at 678-797-5165 or christinac@qdobafa.org.

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17

Employers’ Toolbox:

Time for the Annual Checkup

by Douglas H. Duerr

W

ith the end of 2018 and the start of 2019 upon us, now is a good time to do a quick checkup on your labor and employment policies, procedures and practices. No doubt, it is tempting to read the prognostications of what will be “hot” in 2019 and just to focus on those topics. However, the latest, preliminary statistics from the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal year 2018 and a recent federal court of appeals decision provide a good reminder of why you first need to make sure basic “best practices” are in place to minimize potential liability, put your business on track to be an “employer of choice” and lower turnover.

The preliminary statistics from the EEOC regarding allegations of sexual harassment are way up. The fact that the number of charges filed with the EEOC alleging sexual harassment is up is not surprising given the #MeToo movement; what is surprising is that they are up 13.6 percent. Although the #MeToo movement started about a year ago and resulted in a surge of internal complaints, the EEOC reported in the spring of 2018 that there had not been much of an increase in charges, meaning there was a late surge. Of concern to employers should not only be the increase in the number of charges, but also the fact that the number of “cause findings” in harassment charges has gone up 23.6 percent. In response, the EEOC is stressing training, specifically on the concept of civility, as a way to bring these numbers down.

In the recent case of Smelter v. Southern Homecare Servs.

Inc., the federal Court of Appeals for the Eleventh Circuit upheld 18

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summary judgement for the employer on claims of discriminatory discharge while reversing judgment – and thus returning for trial – the employee’s claims of race harassment. The basis for this outcome is important: The former employee was able to get to trial based, in part, on claims that, even though she never complained of racial harassment until her termination, her supervisor heard the racist comments, found some of them funny and took no action. In contrast, she was not entitled to a trial on her claims of discriminatory discharge because there were extensive records of the training she had been provided as well as of the disciplinary counseling she had received. That is, the employer effectively won on the termination because of its records but lost because of the lack of appropriate response by a front-line supervisor.

What are the takeaways from these two reminders? The basics are important. So, with the new year, now is a good time to make sure they are in place.

1

Do you have updated, comprehensive policies addressing harassment, equal employment opportunity, workplace violence, how to bring complaints, etc.? If not, now is the time to get comprehensive policies, have them customized for your workplace and reviewed by a professional. While your payroll provider or some other source can

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provide you with a “personnel manual,” it is up to you to make sure it’s up-to-date and works for your workplace and environment. a. How well do your managers/supervisors know and apply the policies? The policies are no good if management effectively ignores them and does not model them. b. Are employees aware of the policies? What training do you do to remind employees of your policies? While giving employees a copy of the policies at time of hire and having them acknowledge them in writing is a good first step, it is just that: a first step. Repetition is key.

2

When was the last time you conducted harassment training for all employees? The #MeToo movement has demonstrated that “check the box” training and training only managers is not sufficient. There needs to be effective and repeated training, not just of management but of all employees. Everyone needs to know what is expected, how to raise complaints and the consequences of not complying with the policy. While online training can be a good way to accomplish this for new hires and for periodic refresher training, effective training requires engagement. Periodic in-person training should also be part of the training program.

3

What are the procedures and practices for providing regular and consistent employee feedback? As I have written in prior articles, employees at all levels need to have expectations clearly communicated to them (not just vague standards such as “good customer service” but broken down to what that means for your business) and reinforced through frequent, consistent feedback (negative and positive).

15

Celebrating Years

5

What are your timekeeping practices? What do you do to make sure that employees only work on the clock and that they cannot “volunteer” time? What deductions are made from pay and are they lawful?

6

Do all members of management and supervision adhere to – and model – your policies? If management does not live up to the standards you set for behavior and performance, then you cannot expect the same from others.

While I could go on and on with detailed items to check (a comprehensive audit list goes on for pages), I hope that the foregoing gives you a good starting point on what is important: setting the rules and requirements and communicating them regularly, including thorough training. As you look ahead to the remainder of 2019, remember to follow these fundamentals as they will get you off to a good start. l

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

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4

What are the procedures and actual practices regarding documentation? Far too often, supervisors avoid conflict by “informal, verbal counseling,” which can lead to disputes later about what was said. As demonstrated in the recent decision noted above: documentation, documentation, documentation.

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advertisers guide 2019 QFA Franchisee Convention

CS

Ascentium Capital 281-902-1931

17 Ascentium.Info/Qdoba

Avanti Restaurant Solutions 916-378-0099

19 ssnyder@avanticorporate.com

Barco Uniforms 888-624-2090

4 www.barcouniforms.com

Cargill Foodservice 949-412-1094

15 cargill.com

Cholula 424-275-5728

5 CholulaFoodservice.com

The Coca-Cola Co. 949-241-9086

10 www.coca-cola.com

Dart Container 480-338-1937

3 www.dartcontainer.com

Direct Advantage Magazine 603-233-0824

Insert www.thebestpostcards.com

Elevanta Health 678-540-6202

IF elevantahealth.com/qfa

Trimark Hockenbergs 512-983-8980

7 michael.gentry@trimarkusa.com

Hughes 858-452-4650

IB hughes.com/qsr

McGriff Insurance Services 888-399-2040

BC servicenow@mcgriffinsurance.com

Selecto Inc. 800-635-4017

19 www.selectoinc.com

SSDC/Ecolab 214-533-9793

13 jack@ssdcsoap.com

Tabasco 337-256-3366

6 www.tabascofoodservice.com

Zenput 678-528-2984

13 www.zenput.com

*IF=Inside Front, BC=Back Cover, CS=Cover Sheet

2019 editorial calendar Issue

Ad Reservation Deadline

Publication Date

Spring

Feb. 7

April

Call for Franchisee News We want to highlight any news or events associated with QDOBA franchisees. If you have ideas for potential stories, please email communications@qdobafa.org or call 678-797-5160. Our editorial staff can assist in writing the story for you.

20

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flavor

THE MAGAZINE OF THE QDOBA FRANCHISEE ASSOCIATION | WINTER 2019

BACK-OFFICE TECH SOLUTIONS FOR THE

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Five Tips for Optimizing Your Wi-Fi Offerings

......... page 14

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