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T H E M AG A Z I N E O F T H E Q D O B A F R A N C H I S E E A S S O C I AT I O N | S P R I N G 2 0 2 3

Take Back Your Ratings page 16

table of contents

QFA Board of Directors

Columns

Ron Stokes Chairman

Tom Lewison Vice Chairman Matt Herridge Secretary

Chairman’s Column by Ron Stokes, QFA chairman

Departments 3

Follow QFA on LinkedIn!

QFA Member News

Franchisee Spotlight

Look, Listen, Read

Leo Stathakis Director

One Topic, 10 Facts

Adnan Bajramaliu Director

Directories

John Ghirardelli Treasurer Randy Key Director

Jiger Patel Director Debra Finkler Executive Director Christy Williams Elevanta CEO

QFA Editorial Board Rachel Jackson Editor-in-Chief rachelj@qdobafa.org

On the Cover 6

Associate Member Listing

Advertisers Guide and Editorial Calendar

Features 7

QFA Town Hall Recap

A New Chapter for QFA: QFA Virtual Annual Meeting Recap

2023 QFA Board of Directors Highlight

Consumer Behavior: Predicting the Unpredictable by Jared Johnsen, QFA communications specialist

Allion McCallum Communications Editor allisonm@qdobafa.org

Jared Johnsen Communications Specialist jaredj@qdobafa.org

Take Back Your Ratings by Allison McCallum, QFA communications editor

What’s Next? Four Productivity Predictions for 2023 by Laura Stack, The Productivity Pro®

Advertising Sales Christy Rowan Sales & Development Manager christyr@qdobafa.org 678-439-2284

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

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

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

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

Employment Practices Claims and Your Franchise contributed by Lockton Cos.

Online ratings are a point of contention for many restaurant owners. Turn to page 16 to read more on how you can take back your restaurants' ratings and use them as a tool to grow your business.

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 © 2023 Printed in the U.S.A.

chairman’s column

Spring Unfolds a New Season for QFA A

s the year transitions from Winter

to Spring, and the foliage around us starts to bloom and bring in new life, our Qdoba Franchisee Association (QFA) is experiencing a similar positive shift. While the new season brings in warmer weather, it also brings a new owner, new leaders and a new chapter to the QDOBA Mexican Eats® brand as well as QFA. The first positive shift this season brings are the additions to our QFA Board of Directors, Adnan Bajramaliu and Jiger Patel. Adnan and Jiger, we welcome you and look forward to your leadership of QFA. With the recent disbanding of the Brand Advisory Council, we no longer have two different ways to interact, making QFA the sole voice of QDOBA franchisees. The fortitude of our association and its board of directors matters now more than ever, and we look to the continued participation of our members for strength.

I encourage you all to be as active as possible in helping to guide this new positive shift through not only the brand, but our association and in the day-to-day tasks at your restaurants. As the voice of the franchisees, your QFA Board of Directors recently returned from San Diego, California, where we met with corporate, representing the entire QDOBA franchisee community for the first time. Our new CEO, John Cywinski, and our new owner, Butterfly Equity, have been communicative about partnership, which speaks volumes and fundamentally shifts the relationship between the franchisee community and corporate in a really positive way. Needless to say, the meeting left us energized and ready to embrace this next chapter. With all these new shifts, QFA is better positioned than ever before. Positioned for growth. Positioned to bloom with the upcoming Spring. It’s important to maintain that momentum throughout

With all these new shifts, QFA is better positioned than ever before. Positioned for growth. Positioned to bloom with the upcoming Spring.

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the year and ensure our brand and association continue to blossom. One way to do this is by joining us for the 2023 QDOBA Conference at the MGM Resort in Las Vegas, this June. Registration is happening now, and conference admission is free. Please plan to bring your district managers and join me and my team in Las Vegas, for the conference. Take advantage of these new opportunities to spring your restaurants and association forward. Together, we can continue to have a positive impact on the franchisee community by strengthening our unified voice – our association. I look forward to seeing this next chapter unfold. l

Ron Stokes Chairman

Follow QFA on LinkedIn! - Stay up to date on the latest QFA news! - Recognize your employees and accomplishments! - Connect with other QFA members! Scan the QR code to follow QFA on LinkedIn. flavor SPRING 2023

member news

QFA Secretary Meets With Member of Congress O

n Tuesday, Jan. 17, Qdoba Franchisee Association (QFA) Secretary, Matt Herridge, who owns three QDOBA Mexican Eats® locations and several BURGER KING restaurants, had dinner with Rep. Alex Mooney who represents the state of West Virginia and will be running for Sen. Manchin’s seat in the next election. Herridge and Mooney met at one of Herridge’s BURGER KING® restaurants for a meal and conversation. “Alex and I made a connection over the last election cycle,” Herridge said. “Prior to the last election, West Virginia lost population, so we went from having three House members to two, and Mooney began campaigning in my area of the state for the Republican seat. By chance, we met each other at the Capitol while I was attending a Government Relations Committee meeting. Once he learned I’m based in West Virginia, he immediately was interested in visiting my restaurants and speaking with me more.” Mooney reached out to Herridge personally to set up the dinner, and that night, they met at Herridge’s Parkersburg BURGER KING. “There are not enough workers out there, and that results in competition among the quick-service restaurant industry for the

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

n Jan. 29, for the seventh year in a row, Tim Velleca’s Fresh Made Foods got into the spirit of giving by helping those who are less fortunate. Fresh Made Foods donated a catering spread for 450 of Atlanta’s at-risk youth and the individuals and businesses that sponsored them. Organized by the Center for Children & Young Adults (CCYA), this event provides 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 requested gifts 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, the teens enjoy the donated spread with their sponsors and open their gifts. “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.” l

Rep. Alex Mooney meets with Matt Herridge at one of Herridge's BURGER KINGS.

same workers. The back-and-forth furthers the inflationary spiral, rising of costs, etc.,” Herridge said. He continued, “We discussed some solutions, one of which is legislation that will change the age minimum and maximum to qualify for the earned income tax credit. This “There are not could incentivize people enough workers who might have taken themselves out of the out there, and that workforce to rejoin, results in competition therefore expanding the pool of workers.” among the quick“We need workers, service restaurant whatever their age,” industry for the same Herridge finished. “This is a bi-partisan bill, so we’re workers." hopeful this will pass. – Matt Herridge, Another issue we spoke QFA Secretary about is the Credit Card Competition Act. I could tell this was a harder push, but I focused on the importance of competition in the free market, and he agreed with my position.” When asked how Mooney can be a help to franchisees and small-business owners, Herridge said, “He is a free market advocate, and I believe he would be a great ally for franchisees should he win this next election and assume the Senate seat.” l

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member news

QMG Venture LLC Hosts “Paint & Eat” Nights, Partnering With Other Local Business

t the end of 2022, QMG Venture LLC’s QDOBA Mexican Eats® No. 1979 in Vienna, West Virginia, began hosting a “Paint and Eat” night on the second Tuesday of every month, from 5-7 p.m. The store partners with a local art store and studio, The Watering Can Art Studio, to bring the idea to life, and the studio collects pre-registrations and provides supplies for the event. The night of the event, participants receive a buy-one get-one-free offer to use, so they can eat before or after creating their masterpieces. The first “Paint and Eat” night in December hosted four QDOBA customers. The event gained so much traction that by their second night, the attendee count increased to 11 participants. Brian Anderson, Catering and Brand Ambassador at QMG Venture LLC, commented on the growth, saying, “It is slowly building awareness and drawing in customers that have never been to QDOBA. Plus, customers that are not a part of the event are very intrigued and ask lots of questions. We love it!” He continued, “The engagement with our customers has been fantastic.” Anderson’s strategy for bringing awareness to this QDOBA location is coming up with innovative ideas to draw customers in and engaging his community. Along with the “Paint and Eat” night, he implemented the Annual Burrito Race, Mr. Burrito and

QDOBA® customers create their masterpieces at the “Paint and Eat” night.

other initiatives that drive interest in QDOBA. As their restaurant continues to gain traction, Anderson plans to come up with more creative ways to get customers in their doors. l

QMG Venture LLC Partners With Local School Q

DOBA Mexican Eats® No. 1979, owned by Matt Herridge with QMG Venture LLC in Vienna, West Virginia, partnered with Wood County Christian School, a private high school in Williamstown, West Virginia, on Feb. 23, for the first of many Partners in Education nights. This partnership was arranged through the local Chamber of Commerce. The event was created with the goal of raising funds for local schools while also raising awareness about their QDOBA location. By school newsletter and word-of-mouth, they offered a buy-one get-one-free deal for anyone who mentioned the school and had the event coupon. On top of the BOGO deal, the restaurant gave 20% of the proceeds raised during the event back to the school. Brian Anderson, QMG Venture LLC Catering and Brand Ambassador, commented, “I created the coupon with their school colors and our restaurant information, but it was up to the school to market the event.” He continued, “They had to push students, parents and the community to show up to benefit their school.” The school went above and beyond publicizing their event, and Anderson reported that from 5-7 p.m., sales increased 135% compared to a normal Thursday evening during those hours.

Mr. Burrito poses with a faculty member of Wood County Christian School.

“It was phenomenal,” he said. “We were not expecting that many people to come out. Luckily, we were fully staffed and excited to serve their school!” Mr. Burrito even made an appearance to engage with guests while they waited in lines that went out the door. Overall, the event was a success for QDOBA and Wood County Christian School. QMG Venture LLC plans to partner with more schools as awareness for the event grows. l

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member news

Roaring Fork Holds Decorating Contest During QDOBA For Kindness F

ebruary is the month of love, and Roaring Fork Restaurant Group loves to engage its employees. Held in conjunction with QDOBA® for Kindness, a promotion on Feb. 14, Valentine’s Day, that encouraged random acts of kindness with buy-one get-one-free entrees, Roaring Fork Restaurant Group held a restaurant decorating competition amongst participating locations. “This is a very high-volume day for us,” Roaring Fork Restaurant Group Director of Marketing, Hanna Anderson, said. “We thought this would be a way to raise the spirits of employees during a busy time.” The instructions were simple: Each team was given a starter kit of decorative materials, and the location with the best Valentine’s Day design in their restaurant was crowned the winner. First prize was a $100 Amazon gift card, followed by $50 and $25 gift cards for the second and third place prizes. “Our teams really got into it,” Anderson said. “They took their starter kits and ran with it! Teams went all out, bringing in their own treats, t-shirts and themes.” The first-place winner, located in Arlington Heights, Illinois, created a breath-taking date table photo opportunity, in addition to the team having matching outfits, homemade, heart-shaped cookies and a team video montage. With the improved morale this contest initiated among team

The Arlington Heights team took special care in planning and making the details for the date table photo opportunities. The flowers were handmade, they made heart-shaped cookies and the team wore matching outfits.

members, Anderson looks forward to seeing this event continue to evolve year after year. “We can’t wait to see what’s in store for next year’s contest,” Anderson said. l

Support the Vendors

THAT SUPPORT YOUR ASSOCIATION

COMPANY NAME

LEVEL

CONTACT NAME

PHONE

Elevanta Health

Partner

Caroline McShane

memberservices@elevanta.com

678-797-5160

Green Dot Corp./rapid!

Partner

Steve McDonald

smcdonald@rapidpaycard.com

503-206-5144

Hall Financial Advisors

Partner

Kevin Knab

kknab@hallfa.com

866-865-4442

Lockton Affinity

Partner

Reid Robson

elevanta@locktonaffinity.com

844-403-4947

Mize Restaurant Group, providing Elevanta Payroll & Accounting Services

Partner

Stacy Higgins

shiggins@mizecpas.com

785-233-0536 X: 3103

AmerCare Royal

Assoc. Mbr.

Brian Grant

brian.grant@amercareroyal.com

949-929-9888

Avanti Restaurant Solutions

Assoc. Mbr.

Bolt Bolton

bolt@avanticorporate.com

First Franchise Capital

Assoc. Mbr.

Jon McClure

jon.mcclure@firstfcc.com

Lingle Design Group

Assoc. Mbr.

Kyle Bennehoff

kylebennehoff@lingledesign.com

Masters Gallery Foods

Assoc. Mbr.

Jim Jirschele

jjirschele@mastersgalleryfoods.com

Pandologic

Assoc. Mbr.

Claire Davis Connell

cdconnell@pandologic.com

Madison Brothers

Assoc. Mbr.

Nicole Durio

nicole.durio@madisonbrothers.com

Two Rivers

Assoc. Mbr.

Dusty Furrow

dfurrow@tworiversct.com

flavor SPRING 2023

704-402-9034

712-898-4343

p a c e R l l a H n w o T A F Q tive note, chain update, and starting off on a posi hosted one of A) (QF on ciati Asso ee chis $13 million on Fran ba over he Qdo announced that QDOBA is saving 3 on April 202 for d dule sche s ting mee restaurants as of hall n run tow to several ingredients and products necessary ees on several chis fran fed brie bers in late 2022. mem nted d leme boar 19. QFA April 2023, by using strategies imp r office thei at e orat corp with d ntly decreased usse ifica disc sign ntly topics rece Food items across all categories have Stokes Ron n irma Cha QFA 2. ia. 202 forn in Cali o, seen s in San Dieg in price compared to the rising rate . ting mee the off ed stry, kick indu and beef bers the of mem welcomed One area of concern is the state all with ed shar was int the in erPo rise Pow a to hall n led The tow Ghirardelli reported. Droughts have materials for further e. Because of the members via email. Please review the cost of grain which is used to feed cattl w. belo d usse disc cs topi the n productions on grai information drought, produce, milk, cheese and n with a bega ison Lew Tom n irma moderated Cha has Vice QFA have all been impacted. The drought mittee com sory advi ng keti mar The ict that beef ate. pred upd erts marketing but its effects are still looming. Exp strategies, 3 202 ing, tion posi d bran g essin addr (MAC) is ia strategies. menu optimization as well as social med omers breakcust Customers who frequent QDOBA Mexican Eats’® primary ers,” “on-the-go more down into three categories: “flavor seek both restaurants are rs.” Tapping gete bud rst ily-fi “fam and ise” prom without com over is the key to success likely to favor QDOBA into the habits of these demographics at your restaurants. Chipotle in a number of competitor, its to up king stac is OBA QD rall, Ove taste, who frequent both areas, including value, Chipotle, in new reports. Customers e potl Chi over OBA restaurants are more likely to favor QD . freshness and service taste, freshness and in a number of areas, including value, to differentiate service. The MAC advised it is crucial omization and 4. To combat this, QDOBA’s products by their flavor, cust prices will remain elevated through 202 e. potl Chi take over ugh 2024, which to r thro orde value in QDOBA extended its beef contract to better suit its tive crea its ving evol also is d bran The increased costs by less than 1%. ping into this terridevelopkey demographics and social media. Tap QFA Board Member Jiger Patel recapped ence. The pres ne onli ’s OBA QD remodel ing ng grow sessi to reas ial is tory is cruc ment updates from corporate, who relatability. and city enti auth odels. tyle, rem lifes for on acts s cont focu goal is to guidelines and the organization of menu simpliwas ison Lew by d goals usse year disc c fivetopi and elast The Corporate is working on one-, thre Impossible® are: u men the ing this, leav of s top item ral On ess. Seve fication. to better outline the remodel proc verde, queso diablo, being explored to meat, whole wheat tortillas, jalapeño new designs and finishing elements are ed for ider cons g bein s esse proc ral Seve rs. among othe optimize restaurants. ling, pre-cooked y Matt simplification are pork shredding, pick The last update came from QFA Secretar ing. mix rtment ken chic depa IT lula the Cho of beans and Herridge on IT. The organization followed with liu ama Bajr an issues Adn ting ber hoo Mem bles rd trou Boa QFA at QDOBA has been finalized, and iances are appl new two ly, rent Cur ate. upd ns an operatio with IT is more efficient. the iCombi and the Windows undergoing testing in Mission Valley: New hardware with the capability to run a useful tool be to ing prov is mbi improving iCo rs, The pute e. com oup RobotC 10 will replace current back-office s, but further yield uct prod s ease incr OBA and QD use run -toto that is easy functionality of software necessary rt. e updates was analysis is required according to the repo restaurants. The full plan regarding thes n in the ctio redu a ing show is e the new system oup with otC il, Rob Apr The communicated to franchisees in The appliance . prep uce prod for ed need time of amount rollout scheduled for June. efficiency improveering a few is currently being tested and showing Stokes concluded the meeting by answ s. tion loca town hall. OBA the QD out 47 ugh ments in questions asked by members thro iCombi and for date se relea a not d the is e atten ther to ly, bers rent Cur He concluded by encouraging mem e. oup RobotC QDOBA conference in June. l a supply QFA Treasurer John Ghiradelli provided

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franchisee spotlight

Jiger Patel Company name: TIG Corp. Number of restaurants: 31 States your restaurants operate in: New York, New Jersey, Pennsylvania, Delaware and Florida

How did you become a QDOBA® franchisee?

It was a long and detailed due diligence process that got us interested, but it was the food, culture and high recommendation from our fellow franchisee community that ultimately lead us to become franchisees. How did you meet your business partners?

We have been friends and business partners in other ventures for the last 20 years. We share the same values and vision for our business. In your opinion, what stands out about the QDOBA brand?

Improve the unit-level economics, transform technology and back-end systems and, finally, a strong brand position that will fuel the growth that we know is possible. What do you feel is the biggest challenge currently facing franchisees?

Inflationary pressures and higher cost of capital.

The flavorful food profile, scalable business model and the passionate franchisees. Why did you decide to join the board?

We noticed and appreciated that the brand had a great inclusive culture and was open to hearing an outside, constructive perspective. With extensive experience in multiple brands and the number of units that we operate, I felt that I will be able to bring a unique and forward-looking viewpoint that would help us become an even stronger and more sustainable brand in the future. What is the best piece of business advice you have ever received?

Behind every challenge, there is an opportunity. You just must overcome the challenge to see the opportunity. 8

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

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

The digital/online ordering has been game-changing, and during COVID-19, it was a lifeline. Apart from that, the changes in the labor pool have been the most significant that I can remember in my 25 years in business. Tell us a little bit about your family.

I have a loving family with two demanding teenagers and a dog full of energy. If I weren’t a franchisee, I would be …

I have always had the desire to be an entrepreneur. My grandfather and father both were entrepreneurs, and I never had any doubt in my mind that I wanted to follow in their footsteps. l

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LOOK LISTEN READ

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.

Synuma is a remarkable cloud-based platform that enables you to grow your entire multi-unit business from beginning to end and was built by industry pros like you, for you. The app will help you make better, quicker decisions to open units on time, on budget and reach projected revenues sooner.

Recognized as one of the most iconic and impactful strategy books ever written, “Blue Ocean Strategy” argues that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Based on a study of 150 strategic moves (spanning more than 100 years across 30 industries), the authors argue that lasting success comes not from battling competitors but from creating “blue oceans” — untapped new market spaces ripe for growth.

In the “Franchise Euphoria” podcast you’ll discover how to design the right business plan for you and your business, avoid the most common and costly mistakes, manage growth and achieve your business goals and dreams. You will hear from leading franchise and business experts like John Lee Dumas, Michael Gerber, Joel Libava and Dan Miller.

With the book “The Franchisee Lifestyle: Your Future as a Franchisee Is Better Than You Think,” you can discover the path to success. Building a successful business is hard work. That, coupled with the low odds of coming out of your first year afloat, it’s easy to see why many people take the safe option of a regular paycheck. There is another way to ensure success in your business ventures through becoming a franchisee. With a franchise, you stand a better chance of success.

The Domo Campaigns app allows you to build your own custom email campaigns, SMS messages or PDF and CSV attachments, and send them out on a schedule set by you. Ensure your customer communications have a positive impact on your conversion rate by gathering data from your CRM and analytics systems in Domo.

In each bite-sized, daily episode of “Before Breakfast,” Laura Vanderkam will share a time management strategy or an answer to a listener’s schedule question. Vanderkam helps listeners make the most of their time both at work and at home. The mission is to give listeners practical tools to feel less busy and get more done.

Canva is your free photo and video editor in one graphic design app! Create stunning social media posts, videos, cards, flyers, photo collages and more. Make your business stand out with one-tap animations and fun music for Instagram stories and video collages.

Managers and professionals across the globe have embraced “Primal Leadership,” affirming the importance of emotionally intelligent leadership. Its influence has also reached well beyond the business world; the book and its ideas are now used routinely by universities, businesses, medical schools, professional training programs and professional coaches.

“Problem Solvers” with Jason Feifer features business owners and CEOs who went through a crippling business dilemma and came out on the other side bigger and stronger. Feifer discusses these stories as a means of helping others avoid the same pitfalls. l

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One topic: 10 facts

Sustainability in the Fast-Food Industry: What Do Your Customers Want? The U.S. throws away more food than any other country in the world, with nearly 80 billion pounds wasted per year, which is an estimated 30% to 40% of the country’s entire food supply.

Sixty-five percent of consumers said that while

they find healthy, sustainable eating to be more expensive, 43% are willing to pay more for takeaways in restaurants that have visible sustainability practices.

Forty-seven percent of consumers would even

Food accounts for around one-third of all human-made greenhouse gas emissions, while animal-based foods like red meat and dairy products make up a large proportion of these emissions.

3 4

Food takes up more space in U.S. landfills than anything else.

Thirty percent of municipal solid waste comes from

Consumers may be less likely to choose red meat items from menus that include labeling about foods’ climate impact.

A half a pound of food is wasted per meal in restaurants, whether it’s from what is left on a customer’s plate or in the kitchen itself.

Three out of four consumers are looking for

sustainability in plant-based dairy and meat alternatives specifically.

discarded packaging, and restaurants contribute a significant amount.

consider changing what they order from the menu to be more sustainable.

Federal agencies set a goal of cutting U.S. food waste by 50% by 2030.

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

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A New Chapter for QFA: Virtual Annual Meeting Recap Q

doba Franchisee Association (QFA) members kicked off 2023 by gathering on Jan. 24, for the QFA Virtual Annual Meeting to hear association brand updates and to discuss the future of QFA. Ron Stokes, QFA chairman, began the meeting by introducing members of the 2023 QFA Board of Directors. The board includes Tom Lewison as vice chairman, John Ghiradelli as treasurer, Matt Herridge as secretary and Leo Stathakis, Randy Key, Adnan Bajramailu and Jiger Patel as directors.

understands franchising but also a leader who understands the franchisee's perspective. In this new chapter for QFA, the association is focusing on the shared five key priorities: eliminating the Brand Advisory Council (BAC), IT, marketing, branding and unit economics. These priorities have faced missteps and misunderstandings, and overall, they need leadership, answers and advancement. In order to tackle the five key priorities, the QFA Leadership Structure, which will consist of five committees with co-chairs from QFA and the brand, was introduced to take the place of the BAC. This will not just be a title change but a structural change in the way business gets done.

The 2023 Board of Directors introduced themselves and their roles at the Virtual Annual Meeting.

The future of QFA was a major topic discussed during the Virtual Annual Meeting. This new chapter of QFA brings more involvement in brand leadership and collaborating with the new brand ownership. Late in 2022, Butterfly Equity took over as QDOBA Mexican Eats® new owner. This new ownership is expected to bring greater collaboration and better communication compared to the previous ownership. With greater access to Butterfly, Chairman Ron Stokes stated that he feels optimistic about the future with Butterfly and what they are bringing to the platform. With new brand ownership comes new brand leadership, and John Cywinski is now CEO of Modern Restaurant Concepts. Prior to this role, Cywinski was the brand president for Applebee’s, and is widely respected and appreciated for his leadership. Cywinski is a former franchisee, so QFA is not only gaining a leader who

These five committees will have the opportunity to come up with the priorities and agenda that will benefit the association and brand.

Stokes also shared that this new chapter would include more overall franchisee inclusion. While QFA members will still receive additional benefits and privileges, QFA will now represent all QDOBA franchisees. This will give franchisees the opportunity to attend the QFA Bi-Annual Conference and the QFA franchisee meeting at the brand conference. QFA leadership hopes this will offer more chances to make connections and lead to an increase in membership. While there are many changes coming to QFA, the future is looking bright for the association and QDOBA. l

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20 23

HIGHLIGHT

he Qdoba Franchisee Association (QFA) is happy to present your 2023 QFA Board of Directors. Six directors returned to the board, and QFA was fortunate to gain two new board members. Thank you to Adnan Bajramaliu and Jiger Patel for joining and wanting to share your business knowledge and expertise with the rest of the QFA community. With QFA’s new positioning within the brand, 2023 is sure to be a year of promise and new opportunities for our organization.

Ron Stokes

Tom Lewison

CHAIRMAN

VICE CHAIRMAN

Roaring Fork Restaurant Group, based in Wisconsin Number of locations: 59 States restaurants operate in: Wisconsin, Illinois and Iowa

Board of Directors

QCarolina Restaurants LLC, based in North Carolina Number of locations: 11 States restaurants operate in: North Carolina

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Matt Herridge

John Ghirardelli

SECRETARY

TREASURER

QMG Venture LLC, based in West Virginia Number of locations: 3 States restaurants operate in: West Virginia and Ohio

Burrito Concepts LLC, based in Missouri Number of locations: 14 States restaurants operate in: Missouri, Arkansas and Oklahoma

Leo Stathakis

Adnan Bajramaliu

BOARD MEMBER

QNorth Development Corp., based in Ontario Number of locations: 3 States restaurants operate in: Ontario

North Fork Fresh Mex LLC, based in Virginia Number of locations: 24 States restaurants operate in: Virginia, Illinois, Indiana and Iowa

Randy Key

Jiger Patel

BOARD MEMBER

Delicio LLC, based in Ohio Number of locations: 4 States restaurants operate in: Ohio and Kentucky

Tig Corp., based in Pennsylvania Number of locations: 31 States restaurants operate in: New York, New Jersey, Pennsylvania, Delaware and Florida

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CON

E H AV I O B R R

Predicting the Unpredictable by Jared Johnsen

“

onsumers are people, and that makes them unpredictable,” Forbes said. Unpredictable does not even scratch the surface. With constant innovation made daily from competitors, trends appearing randomly from social media and small franchisors rapidly growing, consumers are constantly kept on their toes. How can businesses keep their slice of the pie in a tight market? How can businesses hone these trends to funnel customers to QDOBA Mexican Eats®? Don Rheem, CEO of E3 Solutions and employee engagement expert, said it boils down to innate human desires.

“People are born with hard-wired needs,” Rheem said. “Our main need is to feel connected to others as social beings and to feel safe. Our brains make decisions based primarily on safety.” Consumers are very fickle and can be deterred immediately from dining out at a specific restaurant if they don’t feel a sense of security. For example, say a potential guest is hungry and is scouring the road for options to dine in. Doing so, a restaurant with half the lights on, a

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tattered exterior and outdated branding appears. Do you think the guest thought twice about dining there? Absolutely not. The customer was not deterred by the exterior of restaurant alone. In the consumers' mind, that restaurant was a can of worms ready to be opened.

“Our main need is to feel connected to others as social beings and to feel safe.” – Don Rheem,

CEO of E3 Solutions and employee engagement expert

“What if it is sketchy inside? I could get sick if I eat there!” That is just one experience. If that same guest were to encounter multiple restaurants of that brand in the same condition, the consumer is now more likely to label that brand as undesirable and will be less likely to eat there. “Getting consumers in the door for the first time is half the battle,” QDOBA franchisee Leo Stathakis said. “Meet their needs every time.” Meeting these expectations is void if effort is allocated to the wrong area. Rheem stated many restauranteurs focus on customer satisfaction while not considering how they are engaged. “There is a huge difference between customer satisfaction and customer engagement,” says Rheem, “and it is vital for frontline workers to be trained on that difference.” “Good service is expected,” according to Rheem. “However, if an employee’s interactions are disingenuous, such as with scripted slogans like ‘thanks for asking’ and a lack of eye contact, the experience feels less genuine and as a result, less safe.” The importance of customer engagement lies with its malleability. Engaged customers can be influenced and are predictable, if accompanied with consistent, good service.

“An engaged customer will pay more for a preferred brand, drive past its competitors to get to it and is less deterred when negative situations arise.” – Don Rheem

“An engaged customer will pay more for a preferred brand, drive past its competitors to get to it and is less deterred when negative situations arise,” Rheem said. Customer engagement not only begins with the employee, but it is fueled by it. With the average restaurant employee tenure being

just three months, new hires are often given quick scripts to learn and often have expedited training. The employee is the liaison between a brand and the consumer. Managers taking the time to teach staff best practices and have them foster a relationship with the brand is crucial for not only engagement but for retention as well. This relationship is what Rheem refers to as “emotional Velcro.” “Highly engaged employees make the customer experience. Disengaged employees break it,” said author and leadership development expert, Timothy Clark. A part of consumer engagement, Rheem noted, is to help the customer avoid cognitive dissonance. The American Psychological Association defines cognitive dissonance as “an unpleasant psychological state resulting from inconsistency between two or more elements in a cognitive system. It is presumed to involve a state of heightened arousal and to have characteristics similar to physiological drives (e.g., hunger). Thus, cognitive dissonance creates a motivational drive in an individual to reduce the dissonance.” In other words, if consumers have an inconsistent experience, they will feel a sense of discomfort. This feeling of uneasiness stems from the “lack of predictability and consistency in their interactions with the brand, and as a result, they never truly engage in a trusting way,” says Rheem.

“Highly engaged employees make the customer experience. Disengaged employees break it.” – Timothy Clark,

author and leadership development expert

This discomfort has an easy fix, and it relates to how each employee contributes to customer engagement. If customers are properly engaged, provided with consistent, excellent service and served fresh food, your restaurant will be the obvious choice. Stathakis has taken creative measures to engage his guests by viewing the trends of neighboring businesses. His solution? He pushed QDOBA’s keto and health-based meals to a neighboring gym to boost sales. Looking outside of just your restaurant and observing larger trends in your area and beyond is the key to engaging customers. The trends of the average consumer are sporadic and sometimes, they can even have an unknown origin. However, staying updated with non-biased mediums and preparing your employees to properly engage customers is sure to keep any business ahead of the game. l

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

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Take Back Your Ratings Y

by Allison McCallum

elp. Google. Open Table. Zagat. These platforms often instill fear in restaurant owners, managers and employees alike, as they are often leveraged as a threat by unhappy customers. Luckily, there are ways to use these sites to your advantage. The goal to strive for at any restaurant or place of business should be for customers to want to go out of their way to write good reviews, not just bad ones. Getting to that point may not be as hard as you think. The first step is pivoting your approach and rethinking how you can use reviews to up your business. After all, they have the potential to be one of the best pieces of marketing that you don’t even have to pay for. We have all been in that position of not knowing where to go for dinner. Step one is typically pulling out your phone and searching for restaurants in your area. Consumers are often inundated with so many options that it most likely comes down to a restaurant’s ratings when they’re deciding where they want to eat. It has been shown that 90% of consumers read reviews online 16

before visiting a business; that means that they are getting a first impression before even stepping foot in your establishment. According to a study by Modern Restaurant Management (MRM), bad reviews add up. After reading just one bad review, 22% of customers said they will not patronize a business. Once it increases to four bad reviews, 70% of customers will forgo that business and find another place. Four bad reviews are a very small number of experiences that can lead to revenue being lost indefinitely. On the other hand, a study of consumer behavior performed by Michael Anderson and Jeremy Magruder, professors at the University of California, Berkeley, shows that positive reviews have a direct correlation with increased foot traffic. The study suggests even a rating boost of half a star on Yelp reduces available seating by

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19% at peak lunch and dinner times. Positive reviews also impact the amount of money customers will spend at your business; the MRM study also indicates that higher ratings lead to increased customer spending by 31%. QMG Venture LLC franchisee, Matt Herridge, commented on ratings relative to his business, stating, “This is very difficult to measure in terms of how much ratings actually affect customer behavior. However, in terms of business operations, we use ratings to drill down on areas of the guest interface where we have opportunities to improve.” So, if reviews have the potential to make a quantifiable impact on your business, how do you increase your chances of having customers write positive reviews? There has been a lot of discussion surrounding offering incentives for reviews. While this outwardly seems like a successful way to make customers leave a review for your restaurant, doing so could put your organization at risk of violating Federal Trade Commission (FTC) rules. The FTC advises that “if the gift or incentive could affect the weight or credibility readers give to [the reviewer’s] recommendation, then it should be disclosed.” This applies to coupons and other incentives that have little or no monetary value. Google Maps also updated its policy on this, stating, “Contributions to Google Maps should reflect a genuine experience at a place or business. Fake engagement is not allowed and will be removed. This includes paying, incentivizing or encouraging the posting of content that does not represent a genuine experience.” QMG Venture LLC abides by these rules, and Herridge stated, “We do not incentivize guests to leave reviews, nor do we explicitly ask customers to leave reviews.” All restaurant owners know that due to the high volume of business done at restaurants, gauging the true measure of customer satisfaction through reviews is hard. Providing quick avenues for guests to leave a review takes out the leg work for you and your staff, while still providing customers the opportunity to share their thoughts.

n terms of business operations, we use ratings to drill down on areas of the guest interface where we have opportunities to improve.”

“

– Matt Herridge,

QMG Venture LLC franchisee

One easy way to be proactive in soliciting guests to leave reviews is posting a QR code on every table that takes customers to a survey or review site. In doing so, the restaurant could cut out extra steps, making the process as easy as possible. If customers can post the review easily at the restaurant, the most difficult part of the process is taken care of before they even leave the building. While positive experiences can account for most of the guests’

time at restaurants, there has been an instance when a customer intentionally weaponized negative reviews to harm their restaurant’s image. Herridge commented on this, saying, “We have had to deal with negative reviews that were completely false where someone was intentionally trying to harm the business for some reason.” He continued, “We had to address the issue in a public way since the false accusation was receiving local and national attention. It is surprising how many people believe anonymous social media posts/reviews.”

“

e will investigate to gain all the facts and, hopefully, be able to use it as a learning opportunity.”

– Matt Herridge

An article from The New York Times published in 2022 highlighted the growing number of false reviews that are appearing online. They reported that in 2022, popular rating site Yelp removed more than 700,000 reviews that were false, deceptive or violated their guidelines. At most platforms, there are humans who vet reviews before they are posted, but it is possible that some false reviews can fall through the cracks. While there’s no way to guarantee your business won’t fall victim to false postings, it’s important to stay vigilant and consistently monitor and engage with reviewers of your business. There are also times when employees are named directly in reviews, good or bad. Herridge commented on this, saying, “We will recognize the individual within the company or restaurant with an ‘over and above’ post.” He added, “One time, an employee was even featured in a ‘good Samaritan of the week’ broadcast on a local news station.” Recognizing employees who go above and beyond ensures they continue to do so and shows them that their hard work is valued. In the case an employee is named in a negative review, Herridge stated, “We will investigate to gain all the facts and, hopefully, be able to use it as a learning opportunity.” Having all sides to the story ensures that no one is unfairly accused of doing something wrong. While making customers happy is important, it is also important to defend your staff. Every situation will be different, but communication is key when dealing with customers’ issues. With all these points in mind, franchisees, managers and team members need to stay mindful of the impacts of online reviews. When executed correctly, good reviews will have a measurable impact on your business. l ALLISON MCCALLUM is the communications editor for QFA. You may reach McCallum at allisonm@qdobafa.org or 678-797-5165.

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What’s Next? Four T Productivity Predictions for 2023 “

by Laura Stack

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

- Peter Drucker

Making predictions about the future of productivity can be dangerous business. Remember all those people who predicted that the Internet would be a flash in the pan? Yeah, me neither. What I do remember is how wrong they were. That said, I’m going to make a few predictions about what might happen in 2023 in the productivity field based on what we’re all hearing lately.

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Inflation will continue to eat at your productivity. Inflation has many causes, so we’re not looking to blame it on anyone here. As prices for everyday costs like food, housing and energy rise — some substantially — your dollars buy less, especially when pay doesn’t rise as fast as costs do, which has been the case for decades. This hurts both individuals and businesses. When business and labor costs rise, productivity — rate of output (i.e., profit) per unit of input — inevitably drops. Until the Fed gets its act together and President Biden’s Inflation Reduction Act begins to work, we won’t tame inflation anytime soon — especially if it rises globally, as seems to be the case. That’s the bad news, but the next few points seem more positive.

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

As more people become contractors and tap into the gig economy, I’d expect to see more “digital nomads.”

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

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

Working My Way Back to You Looking back, price inflation seems inevitable to some economists, as many workers return to the global market with plenty of savings from the lockdowns of the pandemics while competing over fewer resources due to closed factories and other service providers. That will likely impact both individual and mass productivity in many disciplines. However, I think the pandemic has also freed workers in many ways by giving them more power to decide when and where they may work. This is not just to their benefit. With no commutes and fewer expenses, some workers may do the same jobs for less, and employers need not pay for nearly as much real estate and some benefits. In time, the productivity benefits should become obvious to all, and inflation won’t last forever. l LAURA STACK, MBA, CSP, CPAE is an award-winning keynote speaker, bestselling author and noted authority on employee and team productivity. She is the president of The Productivity Pro Inc.®, a company dedicated to helping leaders increase workplace performance in high-stress environments. Stack has authored eight books, including FASTER TOGETHER: Accelerating Your Team’s Productivity (Berrett-Koehler 2018). She is a past president of the National Speakers Association and a member of its exclusive Speaker Hall of Fame (with fewer than 175 members worldwide). Stack’s clients include Cisco Systems, Wal-Mart and Bank of America, and she has been featured on the CBS Early Show and CNN and in The New York Times.

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Don’t Get Burned by Pay Transparency

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by Douglas H. Duerr

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

As with the recent law in NYC, some states and local jurisdictions not only ban inquiries and/or use of salary history in the employment process, but they also require disclosure of pay ranges for a position. Because of the increased scrutiny on the employment experiences of women coming out of the early days of the #MeToo movement, more emphasis has been made on addressing pay discrimination based on sex. While there is some debate regarding the degree and extent of sex-based pay differences, a defense used by many employers over the years when there is a claim of lower pay based on sex has been that the employee’s initial pay was based on the applicant’s salary history and/or the failure to ask/negotiate for a higher salary. These defenses have been condemned as essentially being nothing more than a continuation of prior discrimination: That is, the applicant had lower pay in the past because of sex discrimination and is thus victimized again when that past discrimination is a basis for a lower pay offer or the failure to seek a larger increase in pre-hire negotiations. In fact, a number of court cases have rejected this defense. As a consequence of the debate over the potential impact salary history may have on perpetuating sex discrimination, a number of states and cities have passed laws limiting an employer’s ability, especially in the case of new hires, to utilize or otherwise rely upon an individual’s pay history in deciding whether to hire the applicant and in setting pay. For example, the following states have laws preventing an employer from asking about salary history and/or banning use of salary history: California (also San Francisco), Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont, Virginia and Washington. A number of states, cities or counties may also have similar limitations, like Philadelphia, Pennsylvania, or Toledo, Ohio, among others. As with the recent law in NYC, some states and local jurisdictions not only ban inquiries and/or use of salary history in the

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

When setting pay, while no set formula is necessary, you should only use factors that are gender and race neutral such as educational background, certifications/licenses, years of employment experience, years with specific job experience and the like.

Pay issues are likely to stay in the news a while longer, and the expectation is that pay transparency laws will continue to expand. Proactively anticipating the continued emphasis and attention on pay equity are important steps to prevent getting burned by a claim in the future. l DOUGLAS H. DUERR is a partner at Elarbee Thompson Sapp and Wilson, a national labor and employment law firm with an industry practice area focused on franchisees. Learn more at www.elarbeethompson.com.

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The Actions of Leadership:

Reinvigorate Yourself 22

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by Dan Coughlin

eadership is rewarding. Sometimes. But oftentimes it is physically and emotionally draining. Trying to influence how other people think so they make decisions that improve results in a sustainable way is HARD WORK. It requires sustained, consistent focus over a very long period of time. Contrary to what might be popular belief, you can’t just Instagram or Snapchat your way to effectively influencing how other people think. It takes time and effort and many, many trial-and-errors to effectively change how people think. Consider how long it took to get cigarette smoking in restaurants to be seen as a major health hazard for everyone in the building.

The key is that you do what works for you, not for other people. Consequently, leaders need to be reinvigorated on a regular basis. If they don’t pause to refresh their energy, they can easily fall into a host of bad habits that can do great damage to their health and their reputation.

Develop a Reinvigoration Plan Guess what? No one is going to develop a reinvigoration plan for you. No one can make you walk away from your work and go play golf. It’s quite the reverse. You need to take responsibility for doing things that reinvigorate you. And the key is that you do what works for you, not for other people. For example, playing golf is a great reinvigoration for some people, but for others it would be an awful experience. Right now, before you run off to yet another meeting, take out a sheet of paper and start to write down what reinvigorates you. Make a list of six to 10 items. Okay, stop reading this article, and write down on a piece of paper your six to 10 items that you can do to help reinvigorate yourself.

If you don’t write it down, you will likely lose your focus on these incredibly important activities.

Keep writing. Ok, now read over your list. Select at least one item that you will do today. Then select one item you will do tomorrow. Ok, now write those two items on your calendar, one for today and one for tomorrow. When that time shows up, actually go and do those activities. Tomorrow, after you do the activity you wrote down for that day, write down what you will do each day for the next three days to reinvigorate yourself. If you don’t write it down, you will likely lose your focus on these incredibly important activities. And then three days will go by, and you will have done nothing to reinvigorate yourself. And then burnout and bad eating habits and crankiness and other negative habits will return. And then you will be less of a leader than you are capable of being. Now I’m off for my daily walk. l

So… Make your list of six to 10 reinvigorating things you can do for yourself. Schedule those items. Do those items when they come up on your schedule.

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

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The Customer Is

Not

Always Right.

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by Dennis Snow

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

“The guest may not always be right, but let’s allow them to be wrong with dignity.” When I was working at Disney World, our philosophy was; “The guest may not always be right, but they will always be our guest.” A Disney colleague, Jim Cunningham, put it better when he said, “The guest may not always be right, but let’s allow them to be wrong with dignity.” I love the way Jim put it. Letting the customer maintain his or her dignity in an uncomfortable or embarrassing situation is the sign of a professional. It’s easy to roll your eyes or somehow flaunt your knowledge or authority. But it’s a better business decision to ensure the customer’s dignity. A favorite question most Disney cast members are asked is, “What time is the 3 o’clock parade?” On the surface, it seems like a ridiculous question, and it might be tempting to let the guest know just how ridiculous the question is.

Letting the customer maintain his or her dignity in an uncomfortable or embarrassing situation is the sign of a professional.

But cast members know that what the guest is really asking is, “What time does the 3 o’clock parade arrive here?” The parade route is a mile long, and while it starts at 3 p.m., it doesn’t arrive at some locations until 3:30 p.m. The secret to maintaining the customer’s dignity is to understand the thought process behind the question or the situation-behind-the-situation. When a customer asks a clearly costumed or uniformed employee, “Do you work here?” what he’s really asking is, “Can you help me?” When a customer enters the parking lot through the exit, he’s more than likely confused and not purposely breaking the rules. Too many employees see such situations as an opportunity to belittle or ridicule. But those who handle the situation with compassion are the ones who see the big picture and generate customer loyalty. And they’re appreciated. “The customer may not always be right, but let’s allow them to be wrong with dignity.” l

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

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Employment Practices Claims and Your Franchise

mployment practices liability insurance protects your business from common claims and lawsuits brought by your employees. The number of lawsuits in the industry is rising, and the cost to defend yourself against a claim can be substantial. Now more than ever, it’s important to make sure your business is protected. Before you can protect your business from an employment practices claim, it is important to understand the different types of claims that can be filed against your business. Consider these four common claims:

4 Common Employment Practices Claims

Hostile Work Environment

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

apply, the behavior must be: • Severe, persistent and pervasive. • Disruptive to performing work duties. • Known to the employer but not remedied. Victims can include not only the targeted individual but others whose work suffers because of the behavior. The person causing a hostile work environment may be a supervisor, coworker or non-employee, such as a vendor or regular customer. Preventing a Hostile Work Environment:

• Have policies and procedures in place for worker conduct and behavior. • Train supervisors and employees on proper prevention and remedies. • Take appropriate corrective action once a discriminatory situation becomes known. • Avoid any retaliation against the workers who reported or witnessed the behavior.

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Sexual Harassment

Sexual harassment claims are also common in the franchise industry. These claims can result when employers or others: • Make inappropriate sexual comments toward an employee. • Ask inappropriate sexual questions about their personal life. • Make unwanted sexual advances toward an employee. • Request sexual favors from an employee. A claim of sexual harassment does not need to meet the same severe and pervasive standards as a hostile work environment claim. A claim can be made when management becomes aware of the issue but fails to take adequate steps to address and stop the behavior.

Preventing Sexual Harassment Claims:

• Develop and enforce safe workplace policies for all employees. • Train supervisors and employees on behavioral expectations. • Monitor operations to ensure a safe workplace. • Act quickly to remedy harassment that is reported or witnessed. • Avoid any retaliation against the harassment victim or witnesses.

Quid Pro Quo

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

Preventing Protected Characteristics Claims

• Develop documented employment procedures and job descriptions. • Plan for job postings, application screening and candidate interviews. • Review key employment law provisions including prohibited questions. • Avoid interview questions that are not directly related to the job. • Hire based on eligibility and qualifications. • Create an employee handbook with all workplace policies and procedures. • Document everything in writing, including absences, conduct and performance. • Document performance and code of conduct violations. • Fire according to your documented policies.

Employment Practices Liability Insurance for Your Franchise Claims for hostile work environment, sexual harassment, quid pro quo and protected characteristics can be minimized with the right steps. However, it’s possible to receive a claim even when you have done nothing wrong. For this reason, Employment Practices Liability Insurance coverage (EPLI) is also key for protecting your business. With EPLI coverage from Lockton Affinity, your franchise is protected from these and other employment practices claims. Find out more and learn how to protect your practice with EPLI coverage from Lockton Affinity at Elevanta.LocktonAffinity.com. l

Preventing Quid Pro Quo:

• Develop specific policies and procedures for managers and supervisors. • Train supervisors and employees on prevention and reporting. • Investigate all complaints and take appropriate action as needed. • Avoid any retaliation against the victim or witnesses of the harassment.

Protected Characteristics Federal equal employment opportunity laws prohibit employment discrimination based on several protected characteristics: • Race • Color • Religion • Sex (including pregnancy, sexual orientation or gender identity) • National Origin • Age (aged 40 or older) • Disability • Genetic information (including family medical history) The protections apply to job applicants during the hiring phase, employees during their employment and former employees after leaving employment.

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

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

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flavor advertisers guide

Elevanta Health

678-797-5160

www.elevantahealth.com/qfa

Lockton Affinity

844-403-4947

www.Elevanta.LocktonAffinity.com

*IF=Inside Front, IB= Inside Back

2023 editorial calendar Issue

Ad Reservation Deadline

Publication Date

Fall

Oct. 13

November

Call for Franchisee News We want to highlight any news or events associated with QDOBA Mexican Eats® 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.

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Hail stones. Wind gusts. Downpours. Spring and summer storms are on the way.

With Property insurance from co-brokers Elevanta and Lockton Afﬁnity, your Qdoba franchise is protected from the costs of damage caused by weather, ﬁre, theft & more.

Get coverage for your franchise today at Elevanta.LocktonAfﬁnity.com

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