Flavor, Spring 2020

flavor

THE MAGAZINE OF THE QDOBA FRANCHISEE ASSOCIATION | SPRING 2020

2020 QFA Franchisee Convention Brings the flavor page 6

As the economy reopens, small-business owners tackle restarting their restaurants. Turn to page 16 for what to consider when rehiring after COVID-19.

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table of contents

QFA Board of Directors

Columns

Ron Stokes Chairman

2

Michael Scott Vice Chairman Randy Key Secretary/Treasurer John Ghiradelli Director Tom Lewison Director Leo Stathakis Director Debra Finkler Association Manager

Chairman’s Column

by Ron Stokes, QFA chairman

Departments 3

QFA Member News

5

Look, Listen, Read

28

One Topic: 10 Facts

Directories 4

Associate Member Listing

On the Cover

IB

Advertisers Guide and Editorial Calendar

Meg Gannon, Scott Bocek, Brent Bernard and Wade Gosnell discuss third-party delivery during the Managing Third-Party Delivery panel at the 2020 QFA Franchisee Convention.

If you weren’t able to join the QFA in Orlando this past February, you can catch highlights of the convention in the recap on page 6.

Features QFA Editorial Board Jessica Loeding Editor-in-Chief jessical@qdobafa.org Sean Ireland Managing Editor seani@qdobafa.org Rachel Jackson Communications Manager rachelj@qdobafa.org

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2020 QFA Franchisee Convention Brings the Flavor

10

Breaking Down Coronavirus Legislation for Small-Business Owners

by Morgan Fitzgerald, QFA administrative assistant

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Staying Afloat During the COVID-19 Crisis

by Rachel Jackson, QFA communications manager

18

Things to Consider When Rehiring Employees After COVID-19

by Morgan Fitzgerald

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Expanding Predictive Scheduling Laws Will Affect You

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

Advertising Sales Montserrat Almaraz Sales & Development Manager montserrata@qdobafa.org 678-439-2284

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

How Leaders Can Get More Done Through Others: How Micromanagement Can Kill Productivity and Creativity

by Laura Stack, The Productivity Pro®

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The Power of Presence

by Dennis Snow, Snow and Associates Inc.

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Talk About Big Dreams and Little Details Every Day

by Dan Coughlin, The Coughlin Co.

Headquarters 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.

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

Copyright © 2020 Printed in the U.S.A.

chairman’s column

The Many Opportunities, Possibilities and Challenges 2020 Brings As we rang in 2020 to start a new decade, we also rang in the many opportunities, possibilities and challenges the new decade promised to bring. We aren’t even halfway through the year and it’s safe to say that 2020 has already thrown so much at us.

Now more than ever it is pertinent to have and be involved in a franchisee association that brings us all together. My hope is that you use this issue of Flavor as another resource for COVID-19 and a place to go for other industry-related tips.

In late February, 2020 brought a wonderful opportunity for QDOBA® franchisees, managers and system suppliers to come together for the 2020 QFA Franchisee Convention at the OMNI Orlando ChampionsGate in Orlando, Florida. Held Feb. 27-29, the QFA’s third annual convention was quite a success, and I am pleased to say that it brought in 2

the largest attendance we have had at our convention yet! This year’s event welcomed back corporate representatives who provided important brand updates; a lively keynote speaker, Jim Knight, who taught us how to create a Culture That Rocks! within our restaurants and team; insightful agenda and panel topics such as third-party delivery, hospitality, food cost and people management; and the chance to network and strengthen connections with our vendor suppliers and fellow franchisees, bringing together QFA and strengthening the franchisee community. You can find a recap of this year’s event in this issue.

With opportunities such as the franchisee convention come many possibilities. The possibility to gain and share new ideas that can enhance your business. The possibility to further grow and strengthen your business strategies.

The possibility to raise VOG scores and find new ways to acknowledge your team.

And the possibility to grow as a franchisee association, and to face and overcome new challenges together. Very few franchisees and restaurant brands have as strong an association to fall back on as we do with the QFA. The QFA is here to help our members navigate these challenging times and act as a resource for all your industry needs.

Now more than ever it is pertinent to have and be involved in a franchisee association that brings us all together. 2020 has brought a challenge that no one in the restaurant industry was prepared for or even thought possible: COVID-19. At the beginning of this year, the coronavirus was something few of us had heard of, but it has since swept the globe.

At this writing, shelter-in-place orders flavor SPRING 2020

have been mandated across the country, and many restaurateurs and professionals in the hospitality industry are having to change their way of business drastically.

With the practice of social distancing comes a heightened need for strong partnerships with third-party delivery services as well as a strong catering system.

Luckily the QFA has been here for us and provided many resources for members to utilize such as webinars about COVID-19 and laws passed to help businesses combat its effects, as well as informative and interactive calls, a COVID-19 resource page on www.qdobafa.org and member dues deferrals. Together, we can weather the storm by following the CDC guidelines to help “flatten the curve.”

My hope is that you use this issue of Flavor as another resource for COVID-19 and a place to go for other industryrelated tips. In this issue you will receive a rundown of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which offers a package of forgivable loans, tax credits and delays, and other forms of aid to small-business owners; useful methods and tactics on how to stay afloat during this novel crises; and a reminder of all we have accomplished as a franchisee association through the 2020 QFA Franchisee Convention recap.

Now is the time to revel in the opportunities, indulge in the possibilities, and overcome and adapt to the challenges 2020 has brought and will continue to bring. l

member news

QMG Partners With Ohio University Athletics for Marketing Initiative O

ver the past several years, Ohio University (OU) has been the most frequently catered organization for QMG Venture’s QDOBA® restaurant in Athens, Ohio, owned by franchisees Matt Herridge and Grant Wharton. QMG has decided to increase its involvement with the university by partnering with its athletic department for the 2020-2021 season.

OU has over 20,000 students on its campus in Athens, which proves to be a big target market for QDOBA. The partnership consists of presence during football and basketball games. The “Qdoba Lucky Row Giveaway” will consist of free chips and guacamole being given to a lucky row in the Bobcat student section,

OU has over 20,000 students on its campus in Athens, which proves to be a big target market for QDOBA.

with QDOBA logos displayed on the videoboard.

During basketball season, QDOBA will be the sole sponsor of the university’s “Where’s Rufus?” videoboard feature, which is one of the most engaging crowd mini games at OU. Coupons will also be given away to fans to increase awareness of the restaurant. “We find that giving away catering events as a part of payment for these relationships is a win-win,” said Herridge.

The restaurant has also seen a number of visiting teams use it for their catering needs. QMG Venture is excited to strengthen its relationship with the university. l

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Support the Vendors

THAT SUPPORT YOUR ASSOCIATION

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COMPANY NAME

LEVEL

CONTACT NAME

EMAIL

PHONE

Barco Uniforms Cholula Food Co. SSDC/Ecolab Harrison Poultry Tyson Foods Avanti Restaurant Solutions Cargill Keurig Dr Pepper McIlhenny Co. - Tabasco Brands Pactiv AAP AccuTemp Inc. ADT Commercial Aryzta Atmosphere TV Bluetree Casework Bunge Oil Colorado Premium CTI Foods DeliverThat Direct Promotions ezCater First Franchise Capital GP Pro | Georgia-Pacific, LLC Grubhub Hughes Huhtamaki Inc. Impossible Foods Jolt Kerry KineticoPRO Total Water Care Koch Foods Lingle Design Group Masters Gallery Foods Michael Foods OpsAnalitica Shoes for Crews SignResource Smithfield Foods Spellbound Stampede Star Holdings Group The Coca-Cola Co. TraitSet HIRE Tundra Restaurant Supply Unified Brands Valley Proteins Villa Lighting

Sapphire Sapphire Sapphire Sapphire Sapphire Pearl Pearl Pearl Pearl Pearl Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr. Assoc. Mbr.

Kimberly Scott Danielle Viar Dean Flory Steve Schwartz Ryan Hollman Shawna Snyder Michael Huemoller Chad Dohlman John Occhipinti Clay Westbrook Roger Martinez Michael Lee Bill Rose Greg DeMain Joey Martinez Kraig Arthur Michael Middendorf Jeff Ames Hannah Denton Chris Ruiz Matthew McGourthy Chris Arnaudo Kira Singer Mike Carroll Quentin Williams Neda Noorani Pete Redell KT Friend Briton Page Kris Hahn Dan Schneider Trey Sylvest Carl Lingle Gary Arlt Liz Nerhus Jordan Kinsky Kim Redmin Ramon Ortiz Chuck Roark Christopher Terry Brent Miller Steve Lombardo Kyle McCarthy Dan Longton Joel White Craig Cooper Ron Rogers Steve Barker

kimberly.scott@barcouniforms.com danielle@cholula.com dean.flory@ssdcsoap.com sschwartz@harrisonpoultry.com ryan.hollman@tyson.com ssnyder@avanticorporate.com michael_huemoller@cargill.com chad.dohlman@dpsg.com john.occhipinti@tabasco.com cwestbrook@pactiv.com rmartinez@aaphcm.com mlee@accutemp.net williamrose@adt.com greg.demain@aryzta.com joey.martinez@atmosphere.tv karthur@gobluetree.com michael.middendorf@bunge.com jeff.ames@coloradopremium.com hdenton@ctifoods.com chris.ruiz@ideliverthat.com mmcgoo@directpromo.org chris.arnaudo@ezcater.com kira.singer@oakstreetfunding.com michael.carroll2@gapac.com qwilliams@grubhub.com neda.noorani@hughes.com pete.redell@huhtamaki.com kt.friend@impossiblefoods.com briton.page@jolt.com kris.hahn@kerry.com dschneider@kinetico.com trey.sylvest@kochfoods.com carllingle@lingledesign.com garlt@mastersgalleryfoods.com liz.nerhus@michaelfoods.com jordan@opsanalitica.com kimr@shoesforcrews.com rortiz@signresource.com croark@smithfield.com c.terry@spellboundinc.com brent.m@gostampede.com slombardo@star-mfg.com kmccarthy@coca-cola.com dan@hrgems.com jwhite@etundra.com ccooper@unifiedbrands.net rrogers@valleyproteins.com steve.barker@villalighting.com

310-719-2171 714-402-4192 214-533-9793 706-410-6458 925-330-5080 916-378-0099 714-290-4321 480-279-4396 337-256-3366 843-338-0369 888-871-9028 260-341-7590 704-791-7052 916-708-0189 512-947-5789 816-369-8344 623-810-7745 480-460-5481 310-469-4494 234-207-2034 262-349-9984 781-476-5154 317-428-3846 949-981-1930 412-780-0041 858-452-4650 718-689-2865 602-819-8533 877-396-4112 858-220-1215 678-899-7185 334-387-1752 815-369-9155 816-506-1393 612-280-7994 303-913-7900 561-683-5090 800-423-4283 414-331-7361 888-331-9001 469-980-6314 314-374-4534 949-241-9086 239-877-0110 303-545-1328 601-292-8236 540-877-3220 800-325-0963

flavor SPRING 2020

LOOK LISTEN 5 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.

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Being empathetic at work means seeing the situation from another’s perspective and using that vantage point to shape your leadership style, workplace culture and branding strategy. In her book, “The Empathy Edge: Harnessing the Value of Compassion as an Engine for Success,” Maria Ross pairs her knowledge as a branding expert with proven research and fascinating stories from executives, change-makers and community leaders, revealing exactly how empathy makes brands and organizations stronger.

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Hosted by Alex Judd, the EntreLeadership Podcast features lively discussions and tips on leadership and business by some of the top minds in the business, like Mark Cuban, Seth Godin, Jim Collins and Simon Sinek.

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The Garnish: A Podcast for Restaurant People brings advice and stories from people across the restaurant industry, from managers and servers to chefs and cooks.

Tilman Fertitta, also known as the Billion Dollar Buyer, started his hospitality empire 30 years ago with just one restaurant. He knows the challenges that business owners face, as well as the common pitfalls that cause them to go under. His book, “Shut Up and Listen! Hard Business Truths That Will Help You Succeed,” contains common sense principles that have rocketed his worldwide hospitality empire to the top.

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Wave is a seamless software platform that helps you create invoices, manage income and expenses, and manage your payroll. With Wave, you can organize and manage your business’s finances effortlessly.

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Technology is accelerating far more quickly than anyone could have imagined. During the next decade, we will experience more upheaval and create more wealth than we have in the past hundred years. “The Future Is Faster Than You Think,” by Peter Diamandis and Steven Kotler, serves as a blueprint for how our world will change in response to the next 10 years of rapid technological disruption.

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Trello is a collaboration tool that allows teams to get things done efficiently. Trello’s boards, lists and cards enable you to organize and prioritize your projects in a fun, flexible and rewarding way. Trello draws on the principles of Kanban, a method of visualizing workflows to provide an overview of a project from start to finish.

Believing in what you are doing, putting yourself out there and being consistent when times get tough can be overwhelming for any entrepreneur. The Mind Your Business Podcast by James Wedmore will help you take your business mindset to the next level.

Wedmore makes you think in a whole new way, so you stop telling yourself false stories and you switch to genuinely believing that you are capable and deserving of success. l

flavor SPRING 2020

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DAY 1 Thursday, Feb. 27 1

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On Feb. 27-29, the Qdoba Franchisee Association held its third annual convention in Orlando, Florida, at the OMNI Orlando ChampionsGate. QDOBA® franchisees, managers, system suppliers and corporate representatives all gathered for a two-day event that was filled with educational sessions, a rocking keynote speaker, exhibit hall hours and a flamenco-themed closing event.

The convention kicked off with a franchisee-only meeting led by QDOBA CEO Keith Guilbault and was followed by a general session filled with panels and presentations on industry-related topics as well as best practices shared by franchisees. The second day of the convention was also filled with networking opportunities, trade show hours, panels and some time to kick back and relax in sunny Orlando! The QFA thanks everyone who attended the convention this year and looks forward to next year!

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OPENING RECEPTION AND EXHIBIT HALL

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General Session and Awards Luncheon 3

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1 QFA Chairman Ron Stokes welcomes attendees to the first day of the convention. 2 Attendees eat lunch and catch up during the awards luncheon. 3 QDOBA Executive Chef Katy Velasquez provides an update on menu items. 4 Abby Hansen, Michael Scott, Tim Wurdack and Mike Bradley share their best practices on the hospitality panel during general session. 5 Christine Willis and Keith Guilbault present a corporate award to Daniel Passafiume from Canticle Inc. 6 CMR Associates accept an award on stage from QDOBA Corporate.

7 Chad Thompson, Keith Johnson, Eric Williams, Leo Stathakis and Randy Beaver lead a panel discussion on food cost and margin management. 8 Jed Fresh franchisee Wade Gosnell tunes in to the panel discussion on stage. 9 QDOBA CEO Keith Guilbault provides a brand update to attendees. 10 Karen Silk, QDOBA’s vice president of off-premise, provides an update on off-premise to franchisees.

11 Paul Sinowitz, QDOBA’s vice president of supply chain, shares his expertise with franchisees during a supply chain update. 12 Keynote speaker Jim Knight interacts with the audience during his presentation on company culture, Culture That Rocks! 13 Taushawn Russell from Barco Uniforms poses for a photo with Bassam Odeh, franchisee with Odeh Operations, during the opening reception in the exhibit hall.

14 Dakota Kid franchisee Chad Thompson visits Kraig Arthur and Brett Strough at Bluetree Casework’s booth in the exhibit hall. 15 Whittney Farrell, Tessa Norris and Daniel Passafiume from Canticle Inc. pause for a photo at the opening reception. 16 QFA Board Member John Ghiradelli chats with Shoes for Crews’ Carol McCoy as he checks out the booth. 17 From left, Fred Rodriguez from Bluegrass Fresh Mex, Angela Ferguson from Energized Marketing Services, and Bluegrass Fresh Mex franchisee Tony Page visit the exhibit hall. 18 Tanis Roeder and Steve Lauer from Q Investments, Stew Mehlhaff from TJH Holdings Inc. and Paul Edstrom from Flavors West gather for a photo.

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DAY 2 FRIDAY, FEB. 28

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Breakfast, General Session and Lunch/Trade Show 1

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1 Attendees begin day two with a breakfast buffet. 2 QDOBA Director of Operations Tim

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Wurdack reviews his notes over breakfast.

3 QDOBA’s Vice President of Information Technology Eric Rosenzwig kicks off day two of general session. 4 QDOBA’s Vice President of Marketing Jill Adams gives attendees insight into digital media and brand marketing. 5 Wade Gosnell, Meg Gannon, Scott Bocek and Brent Bernard present a panel on managing third-party delivery.

6 Franchisee Wade Oney asks a question during lunch in general session. 7 Danielle Viar from Cholula hands out merchandise to attendees during the trade show. 8 Jose Rosales and Quentin Williams from Grubhub share their services with franchisees in the exhibit hall. 9 From left, Ashley Roig, Christopher Cedar and Nadya Shihadeh from Zaytoon take a break from visiting the booths in the exhibit hall to pose for a photo.

10 Kyle Moses, Randy Key, Pam Johnson and Steve Honner share their thoughts during the People Management/Culture panel.

11 Randy Key, franchisee with Delicio, responds to a question during the Town Hall Q&A session.

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Closing Event

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1 Ernesto, a flamenco dancer, creates a conga line for guests to join. 2 Erik Frankl from Spellbound Inc. plays a game of giant Jenga at the closing event. 3 A pair of flamenco dancers entertain guests throughout the night. 4 QDOBA Executive Chef Katy Velasquez and her wife, Tanya, have fun at the closing party. 5 Guests enjoyed getting wooden portraits created by Erin’s Wood Arts during the closing party. 6 Jim and Hannah Anderson from Roaring Fork smile for a photo during the closing event. 7 Representatives from QDOBA Corporate take pictures with fun props at the closing event photo booth. 8 QFA Board Member John Ghirardelli smiles alongside his wife, Colleen, at the closing event. 9 Warner Co. Inc. franchisee Randall Gast and his wife, Julie, enjoy drinks with Michael Carroll from Georgia Pacific. 10 Randy Beaver, vice president of operations for Roaring Fork, makes a one-legged putt as QDOBA Franchisee Consultant John Claflin watches.

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Breaking Down

C RONAVIRUS

Legislation for Small-Business Owners

by Morgan Fitzgerald

S

ince the first case of the coronavirus in the United States was confirmed earlier this year, restaurants have been impacted nationwide. Business owners are facing levels of uncertainty higher than they have ever experienced. As a result, the U.S. government has passed several pieces of legislation featuring relief provisions for both businesses and their employees.

So far, there have been three phases of coronavirus relief legislation. The first phase, which supports research into a universal vaccine, will not be discussed in this article as it does not directly impact small-business owners. However, phases two and three significantly affect all employers and business owners. This article contains a comprehensive look at both pieces of legislation and what franchisees need to know: 10

Phase 2 – The Families First Coronavirus Response Act The Families First Coronavirus Response Act (FFCRA) requires employers with fewer than 500 employees to offer paid sick and paid extended family and medical leave for circumstances related to the coronavirus pandemic through Dec. 31.

Types of Leave: The act includes two paid leave programs – paid sick leave (PSL) and family and medical leave, as passed by the Family and Medical Leave Act (FMLA) of 1993. While sick leave applies to all employees, FMLA applies to employees who have been employed for at least 30 calendar days (not 30 workdays).

Additionally, these employees may be flavor SPRING 2020

eligible for up to an additional 10 weeks of partially paid expanded family and medical leave.

Paid Sick Leave: PSL allows employees to take up to two weeks (80 hours) off work at their regular rate of pay or the applicable minimum wage, whichever is higher, up to $511 per day and $5,110 in the aggregate (over a two-week period) for reasons Nos. 1-3 listed below.

An employee may also take the same amount of time for PSL at two-thirds their regular rate of pay or two-thirds the applicable minimum wage, whichever is higher, up to $200 per day and $2,000 in the aggregate (over a two-week period) for Nos. 4 or 6 below.

An employee must comply with one of

the following six criteria to take PSL: 1. They are subject to a federal, state or local quarantine or isolation order related to COVID-19.

2. They have been advised by a health care provider to self-quarantine related to COVID-19.

3. They are experiencing COVID-19 symptoms and are seeking a medical diagnosis.

4. They are caring for a quarantined individual.

5. They are caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19; or 6. They are experiencing any other substantially similar condition specified by the Secretary of Health and Human Services, in consultation with the secretaries of Labor and Treasury.

Note that for all but child care reasons, a full-time employee is eligible for up to 80 hours of leave, and a part-time employee is eligible for the number of hours of leave that the employee works on average over a two-week period. If the absence is for child care, a full-time employee is eligible

for up to 12 weeks of leave at 40 hours a week, and a part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.

Family and Medical Leave: As opposed to the six criteria set forth above, FMLA can be taken only to care for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19 (No. 6 above).

If taking off for No. 6, employees can elect to take both PSL and FMLA leave. As stated above, a full-time employee is eligible for up to a total of 12 weeks of leave at 40 hours a week, and a part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.

Those employees shall be paid at two-thirds their regular rate or two-thirds the applicable minimum wage, whichever is higher, up to $200 per day and $12,000 in the aggregate (over a 12-week period – two weeks of paid sick leave followed by up to 10 weeks of paid expanded family and medical leave).

Employer Tax Credits: Employers are eligible for a 100% refundable tax credit that will be paid quarterly against the cost of providing leave. Because many businesses are not able to fund the cost of paid leave upfront, employers can hold onto any payroll tax payments that normally would have been deposited into an escrow account or sent to the Department of the Treasury. Essentially, employers just keep that money to the end of the quarter and settle with the government to assess if anything is owed on either side.

Phase 3 – The Coronavirus Aid, Relief and Economic Security Act The Coronavirus Aid, Relief and Economic Security (CARES) Act is a massive, $2 trillion economic stimulus package designed to offer relief for the millions of laid-off workers and the nation’s small businesses. The historic act includes a plan to send up to $1,200 in stimulus checks to lower and middle-income Americans to help them cover immediate bills. The act emphasizes helping Continued on page 12

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Coronavirus Continued from page 11

restaurants struggling with the impact of dining room closures mandated due to COVID-19. To highlight the most relevant provisions: Paycheck Protection Program (PPP) Loans: Small businesses, including franchises, can apply for a new 7(a) loan program that, under certain circumstances, is 100% guaranteed and waives collateral requirements. Loans may be forgiven if the borrower maintains the average number of full-time equivalent employees and uses 75% of funds on payroll costs. This new loan program, known as the Paycheck Protection Program, is based on the architecture of the SBA’s existing 7(a) loan program and will make forgivable loans of up to $10 million available to qualifying small businesses. The CARES Act increases the maximum availability of 7(a) loans, including PPP loans, to $349 billion. Subsequent legislation makes an additional $320 billion available through the program. The maximum PPP loan available to any business is the lower of $10 million or 2.5 times the average monthly payroll costs of the business over the year before the making of the loan (practically, this may become the year before the loan application), excluding the prorated portion of any annual compensation above $100,000 for any person.

Note that under the CARES Act, “payroll costs” include vacation and parental, family, medical and sick leave; allowances for dismissal or separation; payments for group health care benefits, including insurance premiums; and retirement benefits. Calculations vary slightly for seasonal businesses and businesses that were not in operation June 30, 2019, to Feb. 15. For restaurants and hotels, the 500-employee count is based on the number of workers at each physical location. Thus, a restaurant franchisee or multiconcept group with 600 employees across five properties would still qualify.

These loans are fully guaranteed by the federal government through Dec. 31, and available through SBA-certified lenders.

The deadline to apply is June 30.

PPP Loan Forgiveness: A borrower’s PPP loan will be forgiven if at least 75% of the funds are spent on payroll, with up to 25% able to be spent on mortgage interest, rent and utilities. The borrower can use the loan to cover prior 12

debt payments but will not receive loan forgiveness on those costs. If more than 25% of the loan is spent on non-payroll costs, the maximum forgivable amount will be equal to payroll costs divided by 0.75.

If a franchisee is the sole proprietor of the business, the loan funds can replace lost income up to $100,000 annualized.

However, the remainder of the loan must then be used on non-payroll costs to receive full forgiveness.

Additionally, the employer will need to keep payroll at the same rate it was before Feb. 15 or hire back employees that were laid off and undo wage reductions by June 30 to receive 100% forgiveness. The amount forgiven can also be affected by a decrease in the number of employees and any reduction in an employee’s salary. If an employer does not rehire employees and reinstate their wages, he or she will have to

repay the cost of that in their loan.

The Treasury Department has issued guidance that employers will not have their loan forgiveness reduced if they offer to rehire a former employee, but the employee declines the offer. Employers are required to make the job offer in writing and document that it was declined by the employee.

The borrower should also be diligent in documenting every expense paid with the loan and share this information with the lender when it’s time to apply for loan forgiveness. These documents should verify the number of employees on payroll and their wages for the period of the loan. Each lender has its own documentation requirements, so borrowers should understand their specific lender’s forgiveness rules.

All lenders must respond to forgiveness requests within 60 days.

Employee Retention Tax Credit: The credit, which is not available to employers that take PPP loans, offers flavor SPRING 2020

employers a refundable tax credit for 50% of the wages paid during the COVID-19 crisis.

The credit is available to employers whose operations were fully or partially suspended due to a COVID-19-related shutdown order or whose gross receipts declined by more than 50% when compared to the same quarter the prior year.

Economic Injury Disaster Loans: This provision expands eligibility for access to SBA’s Economic Injury Disaster Loans (EIDLs). The SBA will waive any personal guarantee on advances and loans below $200,000 on these loans made in response to COVID-19 before Dec. 31.

Advanced Tax Credits for Paid Leave: The act also allows employers to receive an advance tax credit for paying required PSL (under the Families First Coronavirus Response Act) from the Treasury Department instead of having to be reimbursed on the back end.

Delay of Payment of Employer Payroll Taxes: This provision allows employers and self-employed individuals with immediate cash-flow issues to defer payment of the employer share of the Social Security tax they otherwise are responsible for paying to the federal government for their employees. Deferred taxes must be paid over the next two years, and at least half by Dec. 31, 2021.

Qualified Improvement Property: This subsection enables businesses to write off costs associated with improving facilities immediately instead of depreciating those improvements over the 39-year life of the building. The provision corrects an error in the Tax Cuts and Jobs Act and increases companies’ access to cash flow by allowing them to amend their prior-year tax returns. It also incentivizes business owners to continue to invest in improvements as the country recovers from the COVID-19 emergency.

Net Operating Loss (NOL) Modifications: The provision relaxes the limitation on a company’s use of losses. NOLs are currently subject to a taxable income limitation, and they cannot be carried back to reduce income in a prior tax year. The provision temporarily removes the taxable income limitation to allow a NOL to fully offset income. These changes will allow companies to utilize losses and amend prior year returns, which provides cash flow and liquidity during the COVID-19 emergency.

Pandemic Unemployment Insurance: The legislation creates a temporary Pandemic Unemployment Assistance program that expands federal benefits to those not traditionally eligible, including the self-employed, independent contractors and those with a limited work history. It also adds $600 per week in benefits on top of benefits already available under federal or state programs for four months. This provision has some companies concerned about not being able to maintain employees.

Next Steps With so much information to unpack, it can be difficult to find a good place to start. Here are a few tips to jump start an action plan: Contact Your Banker(s): PPP is administered by banks and other financial institutions. Some reports show that banks are prioritizing loans to existing customers first and new customers second, which is why it is important for business owners to reach out to their primary banks.

Evaluate: Businesses are encouraged to evaluate their financial situations with their banker and any other financial advisors to determine whether they qualify for expanded SBA Section 7(a) and/or EIDLs. For franchisees to find the best option for their companies, they must first assess their situations and what their businesses will look like after the pandemic.

Prepare: Gather all relevant company documents, such as certificates or articles of incorporation, bylaws, operating agreements and certificates of good standing. These documents should include financial information that borrowers

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typically send to a lender to review, such as financial statements, tax returns and payroll information. Though the pandemic will not last forever, it is also important to be prepared in case something like this happens again.

The last several weeks have been a whirlwind. We are facing an issue that evolves with unprecedented agility, and franchisees must understand and use the resources provided to them. While the relief legislation that has passed is not perfect, it is a significant first step to help relieve the burden the pandemic has placed on franchisees as they prepare to open their restaurants to their communities again and take care of their employees. l MORGAN FITZGERALD is the QFA communications/events administrative assistant. You can reach Fitzgerald at 678-540-6202 or morganf@qdobafa.org.

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o l a f t A g C R n I 9 S 1 i I S y D I a St V E CO DURING TH

by Rachel Jackson

W

hen we rang in the new decade, no one knew what was in store for us. And certainly no one knew that we would be faced with a novel pandemic that would challenge small businesses in the United States. According to the National Restaurant Association, since the start of the pandemic, 3% of operators have permanently closed stores, 44% have temporarily closed their stores and 11% are expecting to close their stores within the next 30 days.

But as we face these difficult times, it’s important to stay updated on best tips and practices that will help your business come out of the COVID-19 crisis successfully. Provided in this article are statistics and strategies designed to help small-business owners stay afloat throughout the COVID-19 pandemic.

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re Hours an o t d Staff ing S

F

irst, you must ensure that your restaurant is properly staffed without pulling on your purse strings. So, how should you figure out the right number of employees to schedule for your store?

Franchisees recommend you look at your peak hour(s) and assess how many entrees you are serving during that hour.

• Up to 14 entrees: Schedule two people for that shift.

• 15-24 entrees: Schedule three people for that shift.

• 25-34 entrees:

Schedule four people for that shift.

• 35-44 entrees: Schedule five people for that shift.

• 45+ entrees: Schedule six people for that shift and don’t have a cook in the back to keep all hands on deck at the front.

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C

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an g n i r ate

d Third-Party

Deliv

n a study done by the National Restaurant Association, it was found that due to the recent pandemic, 54% of operators switched to all offpremise services. Similarly, data from CivicCenter states, “On the week of March 1, 18% of U.S. adults surveyed said they were dining out less when asked how their dining habits have changed because of COVID-19. By the following week, that figure nearly doubled. And by the week of March 15, nearly two-thirds (63%) of respondents said they were dining out less.”

So, what does catering and third-party delivery look like for restaurants now? While catering orders have slowed for most QDOBA® locations, some franchisees are asking guests to spread the word that QDOBA is open, especially if they are in an office environment. Some locations have catering managers call past catering guests and ask if they have about five people interested in meals.

If the answer is yes, the store will buy lunch for five people if the guests are willing to come to the store to pick up the lunches. This marketing strategy is

ery

18%

36%

63%

03/01 03/08 03/15 U.S. adults dining out LESS

an excellent way to give back to previous catering guests and let them know you are still open to serve. In asking the guests to pick the meals up, there is no labor investment.

• In catering, there’s been an explosion in box lunches. It’s believed that’s because people are becoming germaphobes. Keep in mind that this may change the future of the catering business with guests leaning toward more individual containers for catering.

• Heavily market catering opportunities during holidays. During the coronavirus outbreak, even though people are staying home more, the holidays and celebrations such as graduations are still going to happen, and the public will still have a need for catering.

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Continued on page 16

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COVID-19 Continued from page 15

Marketin

So, what are some of the best ways to market yourself on social media?

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lot of customers aren’t exactly sure which businesses are staying open during the pandemic.

With half of restaurants closing down completely and the other half limited to to-go orders, carry out and delivery, it’s easy for a restaurant to be missed as an option if marketing is not done well. A good way to ensure that you are getting your name out front and center in the public to let people know that even though your dining room is closed, to-go orders, deliveries and caterings are still available, is to market on social media platforms as well as hang signs around your store or use window clings.

• According to Statista, 79% of the U.S. population has some form of social media profile or account.

• In a study done by QSR Magazine, it was found that 50% of diners are influenced by social media.

• In the same study done by QSR Magazine, it was found that “36% of U.S. diners follow restaurants on social media, and 39% of that group mainly do so to help determine if they want to dine in or order food from the restaurant.”

• According to Restaurant Dive, 45% of diners have picked where they are going to eat based solely off the restaurant’s social media platforms and engagement.

W

ith the restaurant industry shifting in the midst of the COVID-19 crisis, day-to-day operations, strategies and business techniques are shifting as well. With fewer people physically coming into locations, more people are calling in orders, using technology to order food or have it delivered straight to their house. With this shift comes a need for heavier training on how to properly answer phones and take orders as well as work POS systems that accept third-party delivery orders that are rung in.

• Test call your stores as a customer to make sure your employees know how to answer the phone professionally and have your employees practice putting customers on hold in order to access a call waiting. It sounds small, but it's something important for your team to know.

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• Roaring Fork’s Vice President of Marketing Abby Hansen records weekly videos for its social media on her iPhone.

• Hansen focuses on the fact that QDOBA is a national brand, but locally owned, and that Roaring Fork’s stores are open and ready to serve.

• Hansen posts the weekly videos on Twitter, Instagram, Facebook and LinkedIn, with her posts being reshared throughout different platforms.

• Some suggested social media posts by FlipDish include: • Announcing contactless payments and home delivery to exemplify keeping the health and safety of the employees and customer in mind.

• Local businesses mean local jobs that support people in your community. Please remember to shop local and online!

• Announce that you are doing your best to make your service as safe as possible.

• You can also come up with creative marketing campaigns and offers for customers such as work-from-home lunch specials.

• Another way to market business is to create posters made for to-go orders and carry-out, online-ordering and curbside services.

• These posters are on 55-pound paper, and they cover all the windows.

• These posters have information on them such as the individual phone number for the curbside service and the website for online orders.

Curbs

i

vice r e S de

& Delivery

If you have an outgoing message, change your message to highlight curbside service, online service, etc.

• The QFA also encourages franchisees to always be sure someone is answering your store's phone. Third-party delivery services will call the store about two to three times, and if they don't get an answer, they deactivate your delivery service, meaning you will have to contact them to reactivate.

• Make sure you update your store hours with DoorDash and other third-party delivery services

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to avoid deactivation as well.

• It’s been known that third-party delivery services conduct robo calls. If you have an automated answering system that gives the caller options, robo calls will recognize this as a no answer, and your delivery services could be deactivated.

In short, delivery service is growing. Make sure your delivery service is active and your team is knowledgeable.

R

estaurants and their employees alike are feeling the same disastrous effect from the COVID-19 pandemic across the nation.

Since March 1, the restaurant industry lost more than 3 million jobs and $25 billion in sales with those numbers only expected to increase as the pandemic continues to plague the nation.

Although the government is doing what it can to provide relief for restaurant owners by passing the Coronavirus Aid, Relief and Economic Security (CARES) Act and state-by-state relief plans, there’s still a lot that can be done at the store level to help keep your business afloat. Keeping your

Since March 1, the restaurant industry lost more than 3 million jobs and $25 billion in sales health and the health of your employees and customers top of mind; marketing heavily on being locally owned and open for takeout, delivery and catering orders; ensuring your customers know that their safety and health comes first via social media posts; following CDC guidelines; and arranging for your restaurants to be properly staffed can affect how you make it out of this novel pandemic.

In short, there are many things you can implement in your restaurant to further ensure that you and your business come out of the coronavirus pandemic successfully. Keep the safety of your team and your customers top of mind and implement every safety precaution possible. The more you do for your team and customers, the more they will do for you. l RACHEL JACKSON is the QFA communications manager. You can reach Jackson at 678-540-6209 or rachelj@qdobafa.org.

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by Morgan Fitzgerald

Things to Consider When Rehiring Employees After covid-19

Where to Begin

Seniority vs. Operational Needs

deally, businesses will be able to reopen with a full staff and invite back all the employees that were let go or furloughed. Realistically, companies will not immediately be at full operation upon reopening and will have to prioritize which employees return first. To mitigate risk of discrimination claims, employers must be cautious when deciding who to bring back to work. The reason to not rehire an employee could include factors such as seniority, operational needs or documented performance issues.

Rehiring based on seniority will more than likely offer the most protection from discrimination claims. For obvious reasons, this should not be the sole deciding factor. In the case that operational needs do not line up with tenure, it is understandable that an employer would choose to rehire based on what is right for their business.

I

Document the Decision-Making Process Employers should document the factors used to determine who will be rehired before deciding who will be invited to return to work.

By working now to document the factors used to determine who will be rehired, an employer will protect themselves from potential discrimination claims. It will also enable employers to rehire on the needs of their business rather than on seniority alone.

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Rehiring based on seniority will more than likely offer the most protection from discrimination claims.

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Previous Performance Issues

Stay Consistent

Employers should be cautious when basing any rehiring decisions on past performance. If an employer chooses to not rehire an employee due to their past performance but the performance issue was not appropriately documented, the business will face the risk of claims that performance problems were an excuse for discrimination.

If an employer did not lay off their entire staff, they should use the same factors that influenced the initial termination decisions when it is time to start rehiring. This consistency will help prove the legitimacy of the factors used in the decision-making process. l

Employers should be cautious when basing any rehiring decisions on past performance.

MORGAN FITZGERALD is the QFA communications/events administrative assistant. You can reach Fitzgerald at 678-540-6202 or morganf@qdobafa.org.

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Expanding Predictive Scheduling Laws Will Affect You

E

by Douglas H. Duerr

mployee scheduling has a direct impact on job satisfaction and employee retention, something made even more important given the low rates of unemployment.

Unfortunately, scheduling is hard, particularly for small businesses, when there are uncertainties caused by a need to have just the “right number” of employees during each shift and an inability to know who is not going to show at the last minute due to illness or other reasons, as well as the uncertainty of how many customers will visit the business that day. Because of the uncertainties, many businesses have attempted to cope through methods such as having employees required to be on the premises or available on short notice to cover for absences, requiring an employee during the regular shift to stay over to cover the next shift or informing employees on short notice of schedule changes.

Such practices negatively impact employee morale, and in response to complaints by many workers in the hospitality and retail industries about inconsistent and short-notice schedules, an expanding number of local jurisdictions are enacting so-called predictive scheduling laws. These laws are based on the belief that “on-call” and changing schedules disparately affect low-wage workers who may need to plan ahead for childcare and transportation needs as well as adjust for second jobs or school conflicts.

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This has resulted in a patchwork of laws with similar, but differing requirements. One thing they all have in common, however, is that they are targeted at chains, i.e. franchised business in food service, hospitality and retail. Even if your business is not yet covered by one of these laws, they still have potential impact on you.

Although several states (Arkansas, Georgia, Iowa and Tennessee) have passed laws prohibiting local governments from requiring predictive scheduling since the first such law went into effect in 2015, Oregon and at least six local governments now have laws requiring predictive scheduling.

If your business is part of a franchised concept in one of those jurisdictions, you are likely obligated to comply with a predictive scheduling law. So, what are the requirements? Although each law is different, they generally require the following: • 10-14 days of notice of the schedule.

• A good faith estimate of the number of shifts per month.

• The right to decline a shift that starts within 10 hours of the end of their previous shift.

Failure to meet these requirements results in a payment obligation to the employee of additional wages (e.g., one hour of

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pay for each shift changed, half pay for each hour cut, premium pay up to double time or other penalties).

Why should you care if your business is not in Oregon or in one of the cities with a predictive scheduling law? As noted above, scheduling, particularly scheduling changes, has a direct impact on employee morale and retention. If an individual has a choice between working for an employer subject to a predictive scheduling law or following the predictive scheduling concepts as a best practice, that individual is more likely to choose that employer and to stay. In today’s gig economy, many individuals have multiple part-time jobs, so having a predictable schedule is an important perk for them.

Significantly, a study of Gap retail stores published in 2018 found that providing a predictable schedule and start and end time consistency resulted in a 5% increase in labor productivity and a median sales increase of 7%.

Although there are more and more tools available to help with setting a predictable schedule, if they are too expensive for you and/or you determine that it is necessary for you to use one or more of the coping methods mentioned above, there are a couple of things to keep in mind: • If employees are required to report to the work site to see if they will be required to work a shift, the time they are required to wait for that determination is “work” for purposes of minimum wage and overtime laws. Also, some states have “reporting pay,” which is a minimum number of hours of pay for reporting to work.

• If employees are “on call,” i.e. are required to report to work within a certain period of time to cover a shift due to a labor shortage, the “on-call” time could be considered “work” for

purposes of minimum wage and overtime. There is no brightline test for when the on-call requirements will make the time compensable, but factors include how soon after the call the employee has to report, how often the employee is called in when on call, and how often and for how long an employee is on call.

• If employees are held over or called in for extra shifts, entitlement to overtime compensation is measured for each payroll week; there is no averaging over the two-week period. Some employers mistakenly believe that so long as the employee only works 80 hours in two weeks, no overtime is due.

(Watch out for daily overtime if required in your jurisdiction.)

• Some states have “days of rest” laws requiring premium pay if an employee works more than five or six days in row.

It is believed that more jurisdictions will enact laws requiring predictive scheduling. In fact, two (Chicago and Philadelphia) of the six local governments have their scheduling laws go into effect in 2020. Thus, be alert to the possibility of a new law being enacted by your state or local government. While providing a predictable schedule is hard, particularly for a small business, there are multiple benefits to the business in terms of easier legal compliance, improved employee morale and improved productivity. 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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21

How Leaders Can Get More Done Through Others: How Micromanagement Can Kill Pr

I

f you want to destroy worker initiative, blast a hole in productivity and scribble the bottom line with red ink, there’s no better way to do it than by micromanaging your employees. Keeping workers on tight leashes and constantly interrupting them ruins their ability to find thoughtful, profitable ways to do their jobs, and it wastes your valuable time as well.

True organizational productivity requires engaged, informed personnel willing and eager to work toward the organization’s mission and vision. And it all starts with a simple concept that’s amazingly hard for some people to implement: trust.

Learn to Trust This can be a tough sell, especially if you’ve built your organization from the ground up. It’s your baby. You know all its quirks, and it can be hard to trust even small parts of it to other people, since you can’t be absolutely certain that they won’t let it come to harm somehow. But consider this: If you’re so distrustful of your employees, then why did you hire them in the first place?

Trust is the diametric opposite of micromanaging, which is based on a lack of trust that others can do their jobs. Your trust for the people who work for you should underlie every decision you make as a manager. Instead of automatically distrusting them, it’s to your advantage to assume that they can do the jobs they’ve been hired to do, assuming the proper training and opportunity.

This may require some serious reworking of your default attitude but make it your ultimate goal to be able to stand back and give them the benefit of the doubt, as long as they have the experience and can prove their competence. If they can’t, that’s when you can justifiably ride them and, as necessary, replace them.

You do need to keep an eye on everyone, but only as part of the big picture. Otherwise, give people the freedom and flexibility to get their jobs done. Meanwhile, you can be doing all those high-value things that you get paid the big bucks for, instead of trying to do everyone else’s work.

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If you get paid $50 an hour, you should never do anything that earns the company less than that.

Even if you must take steps to fix something a subordinate is doing wrong, whether that involves training or replacing them, in most cases it’s still cheaper than doing the job yourself.

Besides, if you waste time on other people’s jobs, you’ll have to work extra hard to get your job done. Oh, no doubt you’re willing to put in the extra time, and that’s laudable, but eventually you’re going to wear yourself out and start slipping, decreasing your own productivity and making yourself less valuable to the company.

When it comes down to the bottom line, you simply have to push every responsibility you can down to the lowest possible level. Focus on your critical few tasks, handing off everything you realistically can to other people. Again, this comes down to rejecting the temptation of micromanaging and setting your default attitude to “trust.”

In this case, let me amend that to “trust, but verify.” Just because you hand a task to someone else doesn’t mean that you can forget all about it. That’s abdication, and it’s something you can’t afford – because even when you delegate a task, you’re still responsible for it.

You still have to make sure that it’s getting done consistently and on a timely basis. So occasionally, you’ll have to check in with your delegate to learn the score and, as necessary, make adjustments. Just don’t hang over them like a Sword of Damocles.

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Keep an Eye on the Big Picture By definition, a manager’s role is to provide direction for his or her subordinates, which means that you do have to get into the nitty-gritty of problem solving sometimes. This is fine, to a limited extent, but again, don’t try to do it all, even when you can. One of the biggest downsides of micromanaging, above and beyond the issues of trust and overwork, is that it requires you to focus too tightly on the details of organizational function. To paraphrase the old saying, you see the trees, but not the forest … and it’s your job to keep an eye on the forest as a whole, not just this oak or that sycamore.

A laser-sharp focus is ideal when you’re trying to get your own tasks done. It’s not so great when you’re putting someone else’s tasks under the microscope, while forgetting that they’re a small part of something much bigger that needs to be taken care of in its entirety.

Close oversight must be the exception, never the rule. Otherwise you are, again, hamstringing your productivity, making yourself less useful all the way around. There’s another old saying for this kind of thing: penny wise and pound foolish. When you get right down to it, focusing too tightly on the little pictures while ignoring the big one is like throwing away money.

The higher you climb, the more often you have to stop and take a look at the big picture. You need to thoughtfully determine what really drives the value and results you’re looking to achieve and assign most of

Delegate That Task!

Micromanagers tend to live by the old adage, “If you want something done right, you’ve got to do it yourself.” But the savvy leader quickly learns that you can’t get it all done right by trying to do everything singlehandedly. If you allow yourself to become a slave of your team’s day-to-day operations, your own productivity will flag along with everyone else’s.

As a manager, your core responsibilities should be things like marketing, growing the business, overseeing (but not minutely controlling) other people’s efforts, dealing with your superiors and, in general, doing whatever brings in the most profits for the organization.

Your sights should always be set higher than the mundane, which means that you must delegate or outsource anything that fails to meet your high-profit standards. It just doesn’t make economic sense to run around taking care of little things, or handling crises that should be assigned to lower-paid employees.

22 flavor SPRING 2020

by Laura Stack

your attention to those items. What things have the biggest impacts on the company? What makes these things important? What can you do to make them better? That’s what you should ask yourself. If necessary, find a business mentor who can help you widen your focus, based on their own experiences, or educate yourself on how others have done so in the past. There are plenty of books on the subject.

It’s been said that the devil is in the details and perhaps that’s so, but if you hire people that you can trust to do their jobs, then by and large the details will take care of themselves. You need to pull back from the individual pixels and look at how it all comes together to make a profit for your organization. Worry about your corporate or organizational strategy first. Put good people in place, get all those other big-picture ducks in a row and the little things will fall into line with a minimum of fuss.

Encourage Employee Engagement What would you rather have: a bright-eyed, engaged employee who “owns” her job, knowing that she has a say in how things are done and is therefore invested in the company’s success … or a disengaged drone who keeps his head down, does the minimum necessary to scrape by and cares only for his paycheck? That’s an easy enough choice, right?

Sadly, though, the second type of employee is at least as common as the first, and they’re separated by a wide “mediocre middle” consisting of the partially engaged and unengaged.

The relationship between employee engagement and productivity isn’t precisely one-to-one, but as a rule, workers with a high level of engagement are willing to try harder, so they tend to be more productive than people who work only to put food on the table. Engaged workers

enjoy and appreciate what they’re doing. This makes them willing to go the extra mile, which in turn makes them invaluable.

The equation is simple: more productive workers means higher profits, and engaged employees are more likely to be productive than their unengaged or actively disengaged co-workers. They also tend to be safer, more customer-focused and less likely to jump ship.

To put it another way, employee engagement has a high return on investment … whereas disengaged employees represent a financial drain. Gallup estimates that employee disengagement costs American businesses as much as $300 billion a year in lost productivity.

To engage employees, you must empower them. Let them take initiative in their work and let them know that they’re allowed to. This requires something of a hands-off attitude, though again, abdication is never a good idea. Communication must be your watchword here. It may very well be the most important factor in encouraging employee engagement, and it must be bidirectional. Make your vision and intentions clear to your employees and allow them to provide feedback on most matters. You may not agree with them, and nothing may come of their suggestions, but it’s the opportunity to contribute that matters – and you might just find that they have a great deal of wisdom to communicate, if you’ll listen.

As part of your communication effort, you’ll need to help each employee understand their place in the company, and how they’re contributing when they do their jobs well. Explain both the what and Continued on page 24

Continued on page 48

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Productivity Continued from page 23

the why and ask them if they understand their roles and have any ideas about how they can improve the associated systems and processes.

This is another place where your understanding of the big picture is crucial, and as they say, when you teach someone something, you’re also teaching yourself.

Provide Critical Training Speaking of teaching, you need to be willing to provide the education and training that your employees require to do their jobs effectively. Proper training takes some of the strain off you and makes micromanaging unnecessary. On the employee side of the equation, good training can: • Develop critical knowledge and skills.

• Increase awareness of company policies and operations.

• Demonstrate the company’s mission and vision, and the employee’s place in the corporate structure.

• Encourage engagement.

• Improve motivation and confidence.

• Re-emphasize the need for quality and excellence.

• Promote efficiency.

• Decrease the likelihood of accidents and injuries.

• Reduce turnover.

All this, taken together, can’t help but increase productivity. A good training program can also buff the company’s public image, help the company stay competitive and attract more and better job candidates.

The Final Analysis As is so often the case, the factors I’ve discussed in this article interrelate in ways that are hard to separate and can be difficult to quantify. But what it all comes down to is that you must be willing to tear yourself away from the minutiae of your team’s daily operations, take a deep breath and step back. Be flexible. Trust your people. Encourage their participation in the company’s success. In short, give them an opportunity to grow and flourish, without being stifled by your constant hovering. Allow them to be creative and productive on their own terms.

Stepping back also gives you a better view of the overall big picture. This allows you to more easily guide your organization in the direction that you and the company want it to go. It’s rather like being the captain of a ship: where you really need to be is up on the bridge, overseeing everything, steering your vessel through the straits and avoiding all the reefs and other perils that you can more easily see from your elevated position.

If you spend too much time down on the deck nitpicking a sailor’s performance – or worse, hauling the lines and clearing the deck yourself – then you’re eventually going to hit something and wreck the ship. And if that happens, you’ll have no one to blame but yourself. l LAURA STACK, MBA, CSP, CPAE, aka The Productivity Pro®, gives speeches and seminars on sales and leadership productivity. For over 25 years, she’s worked with Fortune 1000 clients to reduce inefficiencies, execute more quickly, improve output and increase profitability. Laura is the author of seven books, including “Doing the Right Things Right: How the Effective Executive Spends Time.” To invite Laura to speak at your next event, visit www.TheProductivityPro.com.

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o f r p e r w e o s e p n e c h e t S

by Dennis Snow

everal of my articles have focused on the differences between employees who do their jobs with a “task mentality” versus employees who do their jobs with an “experience mentality.” I stress this topic so heavily because it is at the heart of what separates great service providers from the rest of the pack. Those employees who focus on creating great experiences make customers feel welcome and valued. Those who focus on merely completing tasks make customers feel processed.

The word that bridges the gap between a task mentality and an experience mentality is presence. To create a positive customer experience, an employee must be present for the customer and, at least for the moment, that customer only.

Then, and only then, can the employee notice the customer’s body language, tone of voice, word choice, facial expression or any of the hundreds of other possible signals the customer may be sending, thus providing clues for delivering personalized service.

Employees who are not present for the customer don’t catch those signals; they just go through the motions of completing the task. They’re thinking about the next customer, the previous customer, their spouse, the paperwork, their supervisor, anything but the customer they’re dealing with at that moment. And the customer perceives the employee’s attitude as one of indifference.

A couple of nights ago my family was having dinner at a very nice restaurant. The food was great as was the restaurant’s atmosphere, but our server was clearly more focused on completing his tasks instead of creating a memorable experience for his guests.

He would look at one of his other tables as he served us, whisk by without comment as he dropped off or picked up our bread basket, comment to another server while he refilled our water glasses, and headed to the kitchen as he wordlessly set the check on our table.

As I observed this server’s performance, the word “presence” popped into my mind. That’s what was missing – he wasn’t present for his guests. He certainly performed his tasks efficiently.

He was prompt, he delivered the correct orders, and the food was terrific. But for the prices we were paying, we deserved more. We

deserved his full attention for those relatively few moments that he was actually interacting with us.

It wouldn’t have taken much for him to have created a very different impression.

A smile while filling our water glasses, a comment on our meal selection as we ordered, eye contact as he set down the bread basket: Any of these gestures would’ve taken no additional time, but would’ve made a world of difference.

I mentioned my restaurant experience to a participant attending one of my presentations this week. He asked if my experience would keep me from returning to that restaurant and I had to admit that no, it would probably not keep me from returning. But if we do go back, it won’t be because of the service, it will be in spite of it – and that distinction is important.

Today, businesses of every type need to set their sights higher than just delivering service that doesn’t drive customers away. All our businesses need to focus on giving our customers excellent reasons to definitely come back and to sing our praises to friends, family and colleagues.

If we want loyal customers, we have to be present! l

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 Dennis at 407-294-1855 or visit his website at www.snowassociates.com.

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s m ea r D g Bi Little Details talk about and

P

every day

eople need to know what to do and why to do it.

They are willing to work hard. They have great talent. They are passionate. But they need to understand the story they are stepping into and why it is important and what they need to focus on to be successful. the art of theater and the art of business My daughter, Sarah, is a junior in college, and she is a theater arts major.

Now that I’ve learned what theater arts is all about, I think every aspiring business executive should have at least a minor in theater arts.

Theater arts is about the creation and delivery of a meaningful story in a three-dimensional, human way. There are so many parts to the creation and delivery of a story. A script needs to be written with a purpose and a plot and characters; those characters need to be selected and directed by certain types of people who can bring out the best in each person to generate scenes that are worthy of 26

by Dan Coughlin

the story to be told. Sets need to be designed that are the art that the actors step into, which is Sarah’s particular skill and passion.

Lighting needs to be guided. Costumes and props need to be made, and profits need to be produced in order to afford to do it all over again.

Business is about the creation and delivery of a meaningful story in a threedimensional, human way. There are so many parts to the creation and delivery of a business. A strategy needs to be written with a purpose; a plan needs to be written for certain types of employees to deliver certain types of products and services to certain types of people. Managers need to be cultivated who can guide those employees effectively. Relationships need to be developed with certain types of suppliers. A culture needs to be established to sustain the business and help build the desired brand, and profits need to be produced in order to do it all over again.

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Notice that there is the business of theater and the theater of business. They are intertwined. every day talk about the big picture If a producer and a director do not know what the end picture is supposed to look like and feel like, they can invest a lot of time, energy and money, and end up creating something meaningless and worthless. Knowing what the end result is supposed to look and feel like and how it connects to the purpose of the story is essential to creating a great theatrical production, TV show or film.

If a business executive doesn’t know what the end picture is supposed to be like for customers in terms of the value they receive and the experience they go through in receiving it, then they can invest an enormous amount of time, energy and money, and end up creating and delivering something that is meaningless and worthless.

Once the producer and director know the desired end result, they need to talk about that big picture, that big dream, every day so that all of the people working on the show can see what they are working toward.

Once the business executive sees the desired end result for customers and for his or her organization, then he or she needs to talk about it every day over and over and over so that the employees can see what they are working toward creating and delivering. every day talk about the little details However, vision alone does not make a great show. Along the way there are countless details that must be executed over and over in every part from the script to the set to the acting and lighting and so on. Details matter in theater, television and films. They matter a lot.

Vision alone does not make a great business. There are thousands of details that need to be focused on and executed properly.

Every detail matters. They all matter a great deal. conclusion A beautiful example that shows the importance of talking about the big dream and the little details was the making of Disneyland in the early 1950s. Walt Disney created a television show called “Disneyland,” where he talked over and over about a theme park that would become the happiest place on earth.

He showed blueprints and drawings of the park. There are iconic photos of him standing on a pile of dirt and explaining what it would become.

And then every day he talked about the details of all the different parts of Disneyland and what needed to be accomplished.

This is what you need to do in your work. Every day talk about the vision and the purpose and why the end result is so incredibly important. And every day talk about the details that need to be executed in order to make the vision a reality. l DAN COUGHLIN is president of The Coughlin Company Inc., a management consulting firm focused on improving executive effectiveness and significance. He serves as a thinking partner for executives, managers and business owners toward improving their most important desired business outcomes. He does this through executive coaching for individuals and small groups. He also provides keynote speeches and seminars on effectiveness and leadership.

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One topic: 10 facts Plant-Based Proteins 1 By 2040, the conventional meat supply will drop by more than 33%, according to a report from the consulting firm AT Kearney.

2 The global plant-based protein market is expected to grow at a compound annual growth rate of 8.1% from 2019.

3 Restaurant experts ranked plant-based proteins as the No. 2 food-and-menu trend over the next decade.

4

... and 57% of these consumers see this as a permanent change as opposed to just 14% who are experimenting.

Established novel vegan meat replacement brands such as Beyond Meat, Impossible and Sunfed raised approximately $900 million in global funding in 2018, and this number is expected to grow over the next few years.

8

5

9

The soy protein segment commanded the largest share of the overall plant-based protein market in 2019, but the pea protein segment is expected to witness a rapid growth by 2025.

As of December, over 18 chains offer plant-based alternatives in their restaurants.

6

The global plant-based protein is estimated to reach a value of $14.32 billion by 2025.

According to a HealthFocus international study, 52% of consumers have made dietary changes within the last two years to include more plant-based foods and beverages …

28

7

The amount of plant-based protein product launches has increased 300% since 2013.

10

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Sources: TechCrunch, Food Navigator USA, Restaurant.org, Business Insider

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

2020 editorial calendar Issue

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Fall

Nov. 20

December

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