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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 | FA L L 2 0 2 3

Understanding Customer Engagement Learn more on page 12 and page 14.

table of contents

QFA Board of Directors

Columns

Ron Stokes Chairman

Tom Lewison Vice Chairman Matt Herridge Secretary John Ghirardelli Treasurer Randy Key Director Leo Stathakis Director Jiger Patel Director Debra Finkler Executive Director Christy Williams Elevanta CEO

QFA Editorial Board Rachel Jackson Editor-in-Chief rachelj@qdobafa.org Allison McCallum Communications Editor allisonm@qdobafa.org Jared Johnsen Communications Specialist jaredj@qdobafa.org Tyler Ryan Communications Copywriter tylerr@qdobafa.org

Departments 3

QFA Membership Benefits

QFA Member News

Franchisee Spotlight

One Topic, 10 Facts

Follow QFA on LinkedIn!

Look, Listen, Read

Directories 8

Associate Member Listing

Advertisers Guide and Editorial Calendar

Features 12 14

Emerging Restaurant Technology – Is It the Solution To the Labor Issue? by Jared Johnsen, QFA communications specialist

Storytelling As a Leadership Tool by Dennis & Danny Snow, Snow & Associates Inc.

Countdown To Year-End: A Payroll Checklist for QSR Restaurant Owners and Office Staff contributed by Mize CPAs

Elements of The Entrepreneurial Mindset Series: Element No. 1: Freedom and Responsibility by Dan Coughlin, The Coughlin Co.

How To Improve Cyber Security in Just One Month contributed by Lockton Cos.

Should You Care About the National Labor Relations Board (Whatever That Is)? by Douglas H. Duerr, Elarbee Thompson Sapp and Wilson LLP

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

Mobile App Takeover

On the Cover Since the COVID-19 pandemic, the shift to online ordering and third-party delivery has grown at an unprecedented rate. Understanding this new way of engaging with customers is the key to achieving your business goals and growing your QDOBA Mexican Eats® franchise.

by Tyler Ryan, QFA communications copywriter

Advertising Sales Maria Moffa Business to Business Sales and Development Manager mariam@qdobafa.org 678-540-6211

Chairman’s Column by Ron Stokes, QFA chairman

Generation Z Productivity: What To Expect From the Newest Worker Demographic by Laura Stack, The Productivity Pro®

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

The Importance of Face-To-Face Interactions Is Key To Loyal Customers A

s we move into winter, just as the weather shifts, and we start to prepare for a colder season, so must the restaurant industry and restaurant owners shift in order to adapt to changing consumer habits. As we have seen in the past, consumer habits tend to lean more toward online ordering and third-party delivery as the months get colder. Now is the time to double down operationally and revisit training and procedures to properly prepare us for this shift. The recent QDOBA Mexican Eats® seasonal Halloween Buy One Get One promotion blew up digitally and provided insight into the positive impact this shift may bring and was a great reminder for us all to ensure we are prepared for this shift. In order to properly prepare for the shift to digital, we must make certain we have checked all the training boxes. This includes people, procedure, readiness and online order accuracy. This digital shift that we have seen since the onset of COVID-19 is here to stay past the colder months. It is evident that the industry is quickly moving to digital-only interactions with customers, and we, as franchisees, should explore the ways that we can use this to our advantage and adapt to the changing methods of servicing our customers. On the other side of the coin, there is still an importance to keeping our in-person interactions alive and well. A customer may only interact with our employees directly in a small percentage of interactions with our business, so these interactions must count. Good service depends on following procedures, while hospitality is all about feeling. So how do we make this small percentage of face-to-face interactions count? Our team should greet our guests

like they are greeting old friends. With warm, enthusiastic, wide-eyed, big smiles! They should welcome every guest with a greeting that says, “You made my day!” Hospitality isn’t black and white, it’s technicolor. The feeling our teams leave our guests with is what makes a first-time customer a loyal, repeat customer. Whether our guests are coming face-to-face and going through our line to order their food, ordering through third-party vendors or ordering through our mobile app, hospitality and engagement are keys to getting that return visit.

It is evident that the industry is quickly moving to digitalonly interactions with customers, and we, as franchisees, should explore the ways that we can use this to our advantage and adapt to the changing methods of servicing our customers. We have all seen a big push by the brand to increase loyalty through promotions with T-Mobile and special offers to

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by Ron Stokes loyalty customers. This push to increase loyalty has succeeded in acquiring customers for the first time. Now, it’s a matter of turning them into loyalists. In this issue of Flavor, there are articles featuring best practices on tackling the mobile app takeover and keeping face-to-face customer service alive while embracing new technologies. I encourage you all to read through this magazine, dedicated to YOU, a Qdoba Franchisee Association (QFA) member, and brush up on best practices from industry professionals and fellow association members. Take advantage of the numerous resources QFA has to offer you as you prepare for this shift in consumer habits. In the meantime, I hope you all have a safe and happy holiday season! Let’s end 2023 successfully and fully prepared to take on the many opportunities and hurdles the new year brings! l

Ron Stokes Chairman

The Qdoba Franchisee Association (QFA) was organized in 2018 as an independent association to facilitate franchisee cooperation to champion short-and long-term value for all franchisees as critical stakeholders in the QDOBA Mexican Eats brand. QFA is governed by a duly elected eight-member volunteer board of directors that regularly seeks input from the franchisee community. “We are stronger and have more negotiating clout as a unified group than any one franchisee has alone.”

Representation

QFA serves as the singular voice of the franchisee in discussions with brand leadership. QFA meets regularly, in person and virtually, with corporate management to discuss issues and opportunities, always with the intent to find mutually beneficial solutions for both the brand and the franchisee community.

Engagement

Franchise owners and operators are the brain trust of the system, the drivers of innovation and the custodians of “best practices.” Whether you are a new owner or a seasoned one, networking with other QFA franchisees provides unparalleled opportunities to gain information and ideas to help you achieve your business goals.

Business Resources

QFA members have access to the latest news and happenings with a weekly News You Can Use e-newsletter, periodic email and webinar updates from QFA leadership, a bi-annual online publication Flavor and an annual Products & Services Directory. Additionally, you will gather for virtual town hall meetings, informational webinars and an in-person members only meeting at the annual QDOBA brand conference.

Member Services

QFA members can take advantage of exclusive services for your business such as health insurance, property & casualty insurance, payroll, accounting and more.

Membership dues are $325 location, paid annually in June. flavor per FALL 2023

member news

Herridge Group Engages With Local Community

week before Halloween, the Grand Central Mall in Vienna, West Virginia, hosted its annual Trunk or Treat event, organized by the local Sheriff's Department, where local businesses came together to celebrate the holiday with families in the area. It was the second year of participation for Herridge Group’s QDOBA Mexican Eats® location, No. 1979, owned by Matt Herridge, and the team came prepared with a tent and two friendly figures ready to meet families. The event kicked off with a collective performance of Michael Jackson's "Thriller" by the attendees. Mr. Burrito (Brian Anderson, director of operations) and his sidekick, Miss Taco (Darian Jones, regional support manager), offered candy and coupons for both the kids and the adults to enjoy. Participating in the event and being able to offer deals to attendees was a great opportunity to increase awareness of the store and attract new visitors. There were approximately 300 kids in attendance, and the fun lasted for a couple hours.

presentations. As No. 1979 built its brand within the community by being present when it counts, the store also welcomed community members by providing food at some of the local events. "We're involved in the community more than ever now," Brian Anderson said about the location's growing public engagement.

On Nov. 10, the Herridge Group's Marietta, Ohio, location, in conjunction with students at Marietta College, hosted an event where 20% of the proceeds from sales made during the evening were donated to the Make-A-Wish Foundation. Anderson was approached by students who were working on a project aimed at raising money for the foundation, as they’d collaborated with the QDOBA location on similar events in the past.

Staff from No. 1979 supporting the community at a summer festival.

In September of this year, No. 1979 hosted an interactive science class for fifth graders at Madison Elementary in Parkersburg, West Virginia, and taught them how to make guacamole from scratch. Mr. Burrito and Chef Dani made an appearance to review food safety tips with the students, including handwashing procedures, using proper utensils and taking accurate measurements. After learning more about some cooking fundamentals and facts about avocados, the students were able to enjoy their freshly made guacamole with chips.

Mr. Burrito at the Trunk or Treat event.

The store also supports its surrounding community by participating in other public events, such as the grand openings of new local businesses, summer festivals, cancer walks, 5K races and school 4

The students at Madison Elementary were all ears for Mr. Burrito.

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One of the many local businesses that No. 1979 has catered to.

"We just do different things that affect the community on a personal level," Anderson said about being a communityoriented group. "There was a lot of involvement from the students; they really show up for these events." The Herridge Group continues to prioritize participating in and facilitating events made to benefit its local communities. By making efforts to not only connect with community members, but also provide them with resources or knowledge they may need, these locations have made a name for themselves as more than just any other local franchise. They're evidently driven by the value of public service, as well as a mission to bring something fresh to their communities — more than just fresh food! l

member news

Roaring Fork Welcomes Green Bay Packer Fans

he Green Bay Packers are the biggest and most beloved brand in the state of Wisconsin. Also based in Wisconsin, Roaring Fork Restaurant Group, a QDOBA Mexican Eats® franchise where Ron Stokes serves as president, drives excitement and sales throughout football season by offering free chips and queso on Fridays to customers wearing green, gold and Green Bay Packers gear. Hanna Anderson, marketing director at Roaring Fork, commented, “The promotion drives repeat business on Fridays for those who know about the offer and gives us the opportunity to surprise and delight guests who might not know about the promotion but are wearing green, gold or Packers gear.” She continued, “We work all week to get our guests excited, and the team members work hard to spread the word about the promotion. Our employees can

wear green and gold on Fridays as well, and it’s fun to have everyone involved!” The promotion has helped Roaring Fork ramp up guest frequency and sales by creating repeat customers and encouraging guests to come more than once a week to enjoy free chips and queso. The franchise has been running this promotion since 2018 as a part of a larger sponsorship it has with the Green Bay Packers. Once a month throughout football season, Roaring Fork caters meals to the team’s support team, feeding about 250 people at Lambeau Field. “It was really important for us to have a retail component of this sponsorship to drive sales in this partnership,” Anderson said. “The Green Bay Packers are the most loved brand in the state of Wisconsin. Any opportunity we can take to associate our brand with their brand is a huge win for us!” l

The team at Roaring Fork’s Silvernail restaurant consistently gives away 200+ orders of free chips and queso each Friday.

Roaring Fork Wins Franchisee of the Year and Celebrates 25 Years T

his June, Roaring Fork Restaurant Group won the Franchisee of the Year title for 2023 at the QDOBA Mexican Eats® Corp. Conference in Las Vegas, Nevada. Sixteen members from the Roaring Fork team joined Roaring Fork President, Ron Stokes, on stage in Las Vegas to accept the award. Stokes commented, “It’s an honor and an award that reflects a year of excellence and contribution on a lot of different levels.” He continued, “Our commitment to the brand and new unit growth contributed to this win. This wouldn’t be possible without the entire Roaring Fork team.” In an ongoing effort, Roaring Fork has been remodeling all its stores and will continue to remodel into 2024 to make sure that all their QDOBA locations are modernized and equipped to handle growth. “We’ve built an organization that all of us at Roaring Fork are proud to be a part of. From real estate to IT, marketing, accounting and more, this award is something we can all be proud of because we all contributed,” he said. Stokes was also given the Good Neighbor Award at the conference to

The Roaring Fork team accepts the award for Franchisee of the Year at the QDOBA Mexican Eats® Corp. Conference.

recognize him for his willingness to help other franchisees and the company. “I’m always looking for ways to contribute and help the system grow,” he said. Earlier this year, Roaring Fork celebrated its 25th anniversary, as its first location opened in April 1998. “Two weeks ago, we opened our 60th flavor FALL 2023

store, and every one of those stores we’ve built. We’re proud of that organic growth,” Stokes concluded. “We have 57 stores in Wisconsin, two in Illinois and one in Iowa, and early next year, we’re opening our 61st. Roaring Fork is proud to have been a part of this community for the last 25 years, and we’re looking forward to what the future has in store!” l 5

Town Hall recap T

he Qdoba Franchisee Association (QFA) hosted its last town hall meeting of 2023 on Oct. 3. Members of the QFA Board highlighted several topics and key priorities that were discussed previously in a brand meeting with corporate in San Diego, California. QFA Chairman, Ron Stokes, kicked off the meeting by welcoming members and shared a brief overview of the board and the topics that would be discussed. John Ghirardelli, QFA treasurer, was first to present his update on the supply chain. The year-end review highlighted a 4.6% reduction in costs year to date, amounting to $14 million in savings for the organization. Efforts to control inflation, especially in beef production, were successful, resulting in a 2% price increase compared to a potential 13.5% increase. Looking ahead, the organization is exploring initiatives to improve efficiency, including a napkin program expected to save over $680 per store annually. Other initiatives focused on chicken, beans, oil and brown chip bags, aiming for an additional $6,800 per store in savings. Tom Lewison, QFA vice chairman, followed with a marketing update summarizing the Marketing Advisory Council (MAC) meeting which focused on the four main objectives: brand position clarification, improved national brand awareness, enhanced communication and a concentration on profitable sales growth to reinforce the bottom line. The marketing plan was a central theme, addressing future and present changes in leadership within the marketing team, including the appointment of John Burke as the new chief marketing officer who will be focusing on media. Lewison shared insights into the national marketing plan and calendar, emphasizing upcoming promotions and events, including a focus on menu strategy and the commitment to clean-label ingredients. In the upcoming 2024 fiscal year, 100% of QDOBA products will be clean label. Following the marketing update, Randy Key, QFA director, provided an update on the Operations Advisory Committee and some of their key priorities. The update focused on achievements and future plans, emphasizing a commitment to innovation and simplification. Notable accomplishments include the completion and distribution of the automated slicer, now termed Roku, and the implementation of the Ops Excellent System in stores. The Smart Grill, also known as Combi, has been placed in test locations and has shown promising early results in operational efficiency and food yield improvement. Phase two of furthering the expansion outlines more test locations in remodeled stores in Boston and Michigan. Key closed out his presentation by expressing gratitude to interim franchise co-chair Randy Beaver and introducing the committee members from both corporate and franchise sides. 6

Jiger Patel, who serves as the co-chair of the newly formed development committee, provided the committee’s update detailing their initiatives and progress. The committee’s first meeting in Q1 focused on three key initiatives: remodeling in three phases, cost-cutting measures and a growth incentive program. The QDOBA brand and the QFA Board collaborated to develop initiative programs for franchisees aimed at achieving growth targets. The new development initiative will offer $100,000 per unit as an initiative. The cost-cutting initiative was one of the biggest factors the committee has been working on as it is crucial for new restaurant growth. The committee identified pain points and is working closely with the supply chain team to cut costs and eliminate wait times. Specific measures include addressing custom equipment, reducing equipment freight costs and aiming to lower the furniture, fixtures and equipment package cost from $250,000 to under $200,000.

The cost-cutting initiative was one of the biggest factors the committee has been working on as it is crucial for new restaurant growth.

Matt Herridge, QFA secretary, closed out the presentations by providing an IT update focused on the efforts of the technology committee led by Prashant Goodale and addressed the various challenges and shaping the brand’s technological future. Herridge dived into some of the challenges restaurants are facing and what is going on behind the scenes in technology. Herridge emphasized the need for organization and cleanliness in managing the technology infrastructure. The potential of a secondary POS system was introduced along with the benefits it could bring, as well as the importance of moving toward a Cloud POS. A Cloud POS would reduce points of failure, improve mobility and enhance security. Herridge closed out his presentation by encouraging members to share their questions, comments and specific scenarios so that he could gain a better understanding of what is going on in stores across the country. Stokes concluded the meeting by thanking everyone for tuning in to the town hall, and the QFA Board is looking forward to seeing everyone at the first meeting of 2024. l

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franchisee spotlight

Randy Key Company name: Delicio LLC Number of restaurants: Four States your restaurants operate in: Ohio and Kentucky

How did you become a QDOBA® Mexican Eats franchisee?

I was working for Chipotle, and I got an offer from Applebee’s up in North Michigan. I took the job, and it was a position running several stores in the area. Unfortunately, it turned out not to be a good fit. In a very short time period, I decided that I wanted to go back to Cincinnati. Back in Cincinnati, I applied to many different opportunities. Prior to Applebee’s, when I was working for Chipotle for five-plus years, I really enjoyed it, but I wanted to get into ownership. One of the places I applied was QDOBA, and Tony Page, who was opening the franchise market in Cincinnati at the time with Venture Capital Group, interviewed me and hired me. About two weeks after being hired, he came out and made me the director of operations. Within a year, I became the operating partner. From there, I eventually bought out the Venture Capital Group and become the sole owner of Delicio LLC. How did you meet your business partners?

The Venture Capital Group were my partners for over a decade until I bought them out. I haven’t had a partner since then. In your opinion, what stands out about the QDOBA brand?

I’ve always looked at QDOBA as a premium option in the fast-casual and Mexican fast-casual space. Our flavor profiles are unique, and the flavors we put forth are much stronger than our competitors. For instance, we’ve always had a great queso while our top competitor has not. Our entrees have more ways to be customized. In turn, this makes the QDOBA flavor unique to the individual. On top of that, the people within the system, corporate, franchisees and my team make it a real privilege to be a part of the QDOBA team. What is the best piece of business advice you have ever received?

every Wednesday to bolster their training and coach my teams. I’m a big believer in the power of training, and the development of people is a top priority for me. 2) Growth. We are ready to get back into growth mode and start building again. In my market in Cincinnati, it has the highest number of Chipotle per capita of any city in the United States. I need more market share in order to be relevant inside that market, so I’m looking to expand. What do you feel is the biggest challenge currently facing franchisees?

It’s twofold: quality applicants and labor cost. Recruiting quality talent is a great challenge, maybe the biggest challenge going forward. The pool is not as large as it used to be, and the pool reacts differently. In other words, a lot of young adults used to apply, and they would want to work in the restaurant system while they’re going to college. Some of those people would decide to make careers out of those jobs. That track has stifled, and there’s a challenge to find quality leadership in this labor market. If you do find a quality applicant, you have to pay more, and that in itself is not the major issue, but paying the less qualified/committed so much more is the real challenge. What is the biggest industry change that you have seen since you started?

Third-party delivery. It’s been a tsunami of change to adapt to the demand of delivery orders. I do four times the amount of delivery now than I did before the pandemic. I’ve got stores out there with 35-40% of their sales being third-party delivery, and that’s huge. It has changed the dynamics of production inside our stores. Tell us a little bit about your family.

There’s two: 1) Everything has a life. Everything has a beginning and end, and looking at things through a timeframe perspective helps you visualize what you need to anticipate in the future. 2) You cannot not make a decision. Sometimes, we flippantly make decisions or put off decision-making, which is making a decision. It’s okay to make a wrong choice; that can help you make a better conclusion/decision later on.

I have three sons that work with me in one way or another within the organization itself. One is director of operations for me, and another is the director of support services. My third son works in facilities management and does all of the maintenance on my equipment and in my stores. I have eight grandchildren that are all great and range in age from 22 to eight months. I’ve been very blessed.

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

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

1) Team development beyond the standard definition of development. I have operational meetings with my leadership teams

I’d be in politics as a governor or a senator if I had my druthers. I love talking and being a part of politics itself. It’s just always been something I’ve had a passion for. l

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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

Jesse Durham

jdurham@avanticorporate.com

916-899-4902

Direct Promotions

Assoc. Mbr

Matthew McGourthy

office@directpromo.org

262-349-9984

First Franchise Capital

Assoc. Mbr

Jon McClure

jon.mcclure@firstfcc.com

720-326-0353

Lingle Design Group

Assoc. Mbr

Kyle Bennehoff

kylebennehoff@lingledesign.com

815-369-9155

Madison Brothers

Assoc. Mbr

Nicole Durio

nicole.durio@madisonbrothers.com

832-264-8668

Masters Gallery Foods

Assoc. Mbr

Jim Jirschele

jjirschele@mastersgalleryfoods.com

920-838-3660

National Franchise Sales

Assoc. Mbr

Rebecca Black

rb@nationalfranchisesales.com

949-336-7428

Novamex

Assoc. Mbr

Roberto Navarro

roberto.navarro@novamex.com

915-309-8771

Pinnacle Commercial Capital

Assoc. Mbr

Susan Hacker Nelson

sue@pincomcap.com

317-472-2828

Two Rivers

Assoc. Mbr

Dusty Furrow

dfurrow@tworiversct.com

605-217-8000

U.S. Foods

Assoc. Mbr

Nicole Nix

nicole.nix@usfoods.com

314-518-7240

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One topic: 10 facts

QSR Franchise Marketing and the Demand for Original Content 1

Today, the demand for effective marketing is as high as it has ever been. Eighty-five percent of marketers said there is more demand for brand content in the present day than the pre-pandemic era. With media channels as crowded as ever, standing out amongst your competition is crucial to a franchisee’s success. Forty-seven percent of foodservice operators agree that their competitors are more intense in 2023.

3 4

Is the average customer consuming brand content? Yes! Eighty percent of them watch restaurant-related videos.

This content is fruitful as well, with 70% of consumers saying they are more likely to visit a restaurant that creates personalized promotions.

With every visit to your restaurant(s), your customers are building a relationship with your brand. Loyal customers are emotionally connected customers, as 64% of consumers felt an emotional connection to their favorite brands.

Your emotionally connected customers, staff and stakeholders are the people perpetuating the brands you manage. They are the ones that keep your customers coming back and generate new traffic. After all, 92% of customers trust recommendations from a loved one or notable public figure.

Believe it or not, your customers want to hear from your business. Forty-nine percent of patrons who subscribe to receive promotional alerts from their favorite restaurants prefer to get them weekly.

The key to effective marketing is transparency. A survey of 2,000 customers found that 94% will be loyal to a transparent brand. Meanwhile, 39% will even change brands in pursuit of brand transparency.

By returning to vintage colors, logos and menu items, brands are honing in on one concept – nostalgia. Around 75% of consumers enjoy marketing that allows them to recall the “good old days.”

If you want to earn a ‘follow’ on your brand’s social media, you will have to earn it. Fifty percent of customers only follow one to four brands on social media, with another 26% following fewer than 10 brands. *Note: This is a compilation of web articles strictly for engaging your thoughts. Sources: Business News Daily, BuzzStream, Bynder, Fit Small Business, Menu Tiger Salesforce, National Restaurant Association, New Epsilon Research and WARC

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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. 10

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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.

In Shelly Sun’s “Grow Smart, Risk Less: A Low-Capital Path to Multiplying Your Business Through Franchising,” she shares practical advice, insights and her own compelling experiences to help readers discover their power and avoid the pitfalls in franchising their businesses.

Are you looking for an integrated franchise platform to grow your franchise that has multiple tools to manage your franchise? With the BrandWide app, you can consolidate all your tools into one platform. BrandWide helps you grow your brand and make your units successful by providing everything you need in one integrated franchise software system.

In Jeff Dudan’s “On the Homefront” podcast, Dudan aims to inspire and empower individuals to transform their lives, make a positive impact in their communities and enhance the well-being of those they cherish most through responsible franchising and entrepreneurship.

Marketing 360 helps manage and grow small businesses. Not only do you get the tools you need to scale, but you also get the do-it-for-you marketing programs you need to grow.

Whether you are considering getting into a franchise or have made the commitment, “Franchising Demystified” by Wayne Maillet provides you with a deep understanding of the franchisee-franchisor relationship. This definitive franchise handbook provides the tools to effectively assess the right franchise opportunity for you and then maximize the return on your investment.

In Chris Wilson and Boynton Weekes’ podcast “Winning Franchise,” they dive into the world of franchising and share the secrets to selecting a successful franchise. The two discuss the latest trends and developments in franchising, share success stories and lessons learned and provide practical advice and tips for navigating the complex and competitive world of franchising.

Jolt is a franchise management system for franchisees in any industry. It is an entire operations suite with consistent forms, intelligent checklists, integrated probes and sensors, automated reporting, food safety label printers and more — all seamlessly integrated and organized together.

Peter Daly-Dickson and Andrew Priestley gather successful international franchisors and franchising experts for their book “Franchising Freedom” to candidly share their current, best-thinking strategies and insights for finding the right franchise to start building and growing a sustainable, profitable franchise business.

”FranchiseU!” provides education and inspiration to those in or considering careers within franchising. This podcast is produced by Yum! Center for Global Franchise Excellence at the University of Louisville and hosted by Dr. Kathy Gosser. The Center’s vision is to empower communities to create and sustain generational wealth using the franchising business model.

The FranConnect app is a platform that provides all your departments — including sales, operations, finance, support and marketing — a single, shared view of your franchise business. FranConnect has solutions for every stage of your franchise growth. l

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MOBILE APP

TAKEOVER

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by Tyler Ryan

or the past 28 years, QDOBA Mexican Eats® has been dedicated to bringing flavor to people’s lives. As time passes, the brand is tasked with finding new methods of delivering flavorful Mexican eats that can account for a shift in the world of customer service — a technological shift. The way people connect to food establishments has evolved over the years, as the world we live in has embraced more and more digital interaction. We can look to our mobile devices for almost anything we need – some transportation, goods delivered straight to our doors and meals waiting for us at our favorite restaurants. The growing incorporation of technology into the food industry has been an entirely expected development by some. In 2021, Forbes published the article “Restaurant Industry Outlook for 2022: Five Trends to Watch” in which the first listed trend was that restaurants would become increasingly digital, possibly as a response to the COVID-19 pandemic. While the U.S. has passed the stages of the pandemic that once required strict physical distancing, practices like ordering food over mobile apps to minimize interactions have since become a staple in the customer experience. Like countless other beloved brands, QDOBA has adapted to such a shift and found new ways to satisfy customers’ needs that transcend the classic, face-to-face method of fulfilling orders, such as offering mobile app ordering as a convenient and quick alternative. The QDOBA app, which is marketed as being “the easiest, fastest way” for people to order their food, allows customers to customize their experience with the restaurant so that it always suits their needs. Customers can personalize their orders, save their favorite meals for future orders, sign up for QDOBA Rewards and redeem exclusive offers and choose take-out or delivery from the closest locations. Randy Key, QDOBA franchisee of 20 years and owner of Delicio LLC, has witnessed several transformations in the customer experience since the introduction of mobile app ordering. He attributed some of the appeal of the QDOBA mobile app to the convenience of it and the sense of independence it gives customers. “Consumers who have gotten used to the convenience factor of the app have stayed pretty dedicated to ordering that way,” he said, “and that is a huge shift everywhere.” Key also acknowledged the role that the pandemic played in ushering in a new digital era, saying, “My percentage of sales from online ordering has increased by four times the amount it was before the pandemic. People really started appreciating the convenience and the safety of it during that time.” In order to accommodate the growth of mobile app ordering, many of the most popular food chains across the world have adjusted the everyday operations within their stores. QDOBA, in response to the addition of mobile orders to the existing queues for in-person orders, has developed systems designed to support the new ordering style while maintaining efficiency and organization within stores. Key reflected on certain adjustments that stores have made to ensure that customers could deliver their in-store orders and online orders in a timely manner, commenting, "Some changes needed to be made to the procedures present on the service line, and there's sometimes even the creation of a brand-new, smaller-scale line made to handle digital orders on its own. Depending on a store's sales volume, they've had to find ways to adjust to this new dynamic." The popularity of the QDOBA mobile app is a testament to the benefit of restaurant chains and their franchisees adapting to changing times in food service. With an average rating of 4.8/5

stars on the Apple App Store, QDOBA’s app has aided customers looking for their experience to not only be one of convenience, but also accuracy, satisfaction and even kindness. One review reads: “I rarely go in the store to eat as I am always on the run. I order, and within a few minutes my order is ready, and I can run in and grab it. The folks behind the counter are always kind and agreeable. It is nice to be able to order online and save my favorite three orders!” If mobile apps are going to stick around as one of the primary tools people use to receive their food, then it is imperative that franchisees continue to take advantage of the features customers seem to appreciate most about the digital era — as well as the moments when human interaction still finds a way to shine. As everyday life is further impacted and shaped by technological advances, there is no telling how the world around us will continue to change. For the food industry, the changes customers and franchisees alike are witnessing have created a restaurant culture more concerned with speed and convenience than ever. Digital ordering has become a new norm, right alongside the classic sit-down experience. While the relationship between restaurants and customers has evolved, the values of a beloved brand like QDOBA have remained the same, as have their core missions: to serve quality Mexican eats and bring flavor to people's lives. l TYLER RYAN is the QFA communications copywriter. You may reach Ryan at tylerr@qdobafa.org or 678-439-2300.

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Emerging Restaurant Technology – Is It the Solution To the Labor Issue?

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by Jared Johnsen

he labor issues wreaking havoc in 2023 have laid the foundation of the restaurant industry for years to come. High inflation, rising costs and a wilting labor market have caused restauranteurs and restaurant brands to pour resources into innovative technology and artificial intelligence (AI) to make up for where human capital fails. With innovation taking the industry by storm, is technology the solution to the labor crisis? The COVID-19 pandemic instigated an unpredictable three years following for recruiting and maintaining employees, with many not returning to their previous positions. Many restaurant workers transitioned into alternative industries offering greater security or benefits. Others pursued job training, education or started new careers in professional fields. Among those who returned to the restaurant industry, some opted out due to pandemic-era challenges, including staff shortages, reduced hours and lower tips. According to the Bureau of Labor Statistics, five million restaurant workers left the industry in March and April 2020. Fast forward to December 2023, the situation has improved notably but with obstacles yet to come. With recent legislation, such as the Food Accountability and Standards Recovery (FAST) Act, COVID-19 repercussions and economic downturn, many restaurant operators are forced to find solutions to maintain operations at a lower cost. “Unfortunately, labor costs drive everything,” QDOBA Mexican Eats® franchisee and QFA Secretary, Matt Herridge, said. “We make great efforts to control labor costs and thus pricing while still providing great service to our guests.” According to QSR Magazine, the restaurant industry has over one million positions available. Advanced technology, such as kiosks, robots and AI, is teed up to try and stabilize the labor market. As manufacturing and operating costs for this equipment decrease and innovate year after year, technology is a compelling option to use for labor. Programmed robots don’t need days off, cannot quit and do not steal. They can also perform the same task they are assigned perfectly each time, often faster than a person can.

Conceptually, replacing human capital with this technology can seem like an obvious choice, but there can be too much of a good thing. For Herridge, converting all his workers to robots could damage the hospitality his restaurants provide to his customers. “From start to finish, if you dine inside a QDOBA, you likely will interact with at least five people before you receive your food,” Herridge said. “Human interaction is expected when you walk in. It is instrumental to the fast-casual experience. Some people go to restaurants to interact with other people, so I don’t think that aspect of the business will change too easily.”

back-of-house or in the drive-thru. There, machinery can be hidden and can operate quietly without sacrificing quality restaurant hospitality. “Often, people go through the drive-thru or order ahead for convenience, not expecting a customer experience,” Herridge commented. “For the people that just want to grab their food and leave, that is where AI and robotics make the most sense.” Beyond restaurants, Herridge thinks that robots have great promise to dominate the convenience scene. “If you are on the go in a mall, gas station or airport, for example, those are great places for AI,” Herridge said. “Customers will be more patient with a machine than a person when speed and convenience is important.” Some major industry competitors, such as Chipotle Mexican Grill, have already invested millions of dollars to help automate their make line for the near future. In October, Chipotle unveiled Hyphen, a robot that can work in tandem with workers to help create bowls and salads. Not only that, but they are also exploring machinery that fries chips and cuts avocados. – Matt Herridge With 35% of restaurant chains franchisee and QFA Secretary hoping to utilize AI within the next year to improve their business Some patrons stand by the old-fashioned operations, QDOBA Mexican Eats is on way. Although AI will be implemented trend and testing new technologies in to reduce human error, technology has certain markets across the U.S. bugs of its own. For example, the speech All-in-all, the present-day challenges of recognition software that some brands running a restaurant franchise are driving are planning to implement is only 84% operators to invest heavily in restaurant accurate. Humans are no better at times technology. If labor issues persist, they but are often able to turn around customer could potentially hurt a lot of operators. situations. However, once technology fails, Thankfully, help is within metallic reach. that raises many concerning points for “It’s coming, and I expect significant restaurant owners, wondering how long changes,” Herridge finished. “I hope in advanced equipment like this takes to be the midst of it all, we do not lose the repaired, who will be there to do it and the hospitality and human interaction that potential damaging effects on restaurant restaurants provide.” l operations. Even though robots are not JARED JOHNSEN is the QFA communicafront-facing and cannot solve complex customer situations, Herridge believes tions specialist. You may reach Johnsen they potentially have a purpose working at 678-439-2291 or jaredj@qdobafa.org.

“For the people that just want to grab their food and leave, that is where AI and robots make the most sense.”

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Storytelling As a Leadership Tool

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by Dennis & Danny Snow

f you have read some earlier articles of mine, you know that I am an advocate of using stories to perpetuate the culture of your organization. The advice to make use of storytelling has been buried in the previous articles, and I feel that the subject merits its own discussion. In communicating a point of view, a principle or a value, there are few techniques more powerful than a well-told story. A story provides a “mind picture” for the listener and gives color to an otherwise abstract concept. As a leader, for example, I could advise new supervisors to “treat employees with respect.” No one could argue with such a suggestion. The following story, however, gives meaning to the principle. I’ve used this story hundreds of times because it happened to me (in 1982), had an impact on my leadership style, and others have told me that the story has an impact on them. I had recently been promoted to my first management position at Walt Disney World: Supervisor of Fantasyland (my all-time favorite job title). I was preparing to give my first “verbal reprimand” to an employee, and I was actually excited about it. Finally, I was giving a reprimand instead of getting a reprimand. I was mentally rehearsing what I was going to say to this cast member regarding his poor attendance. It was going to be a verbal bombardment designed to get him to beg forgiveness and to be ashamed of his irresponsibility. Moments before the cast member was to arrive at my office, my boss, a wonderful leader named Bruce Fox, sat down in the chair across from me. He looked at me and said something that I have never forgotten. He said, “Dennis, no matter what you have to do as a leader, whether you have to reprimand someone or even fire someone, when he walks out of the door, you make sure he walks out with his dignity.” Bruce’s words not only changed how I handled that situation, but how I’ve tried to conduct myself as a leader ever since. Admittedly, telling the above story takes longer than saying, “treat employees with respect,” but I think the point is much more vivid. Stories allow people to peak behind the curtain of things that have happened to you as a leader, to the company and to others in the organization. Another example comes from Southwest Airlines. “Don’t take yourself too seriously! Have some fun!” Hundreds of organizations say the same thing. Southwest Airlines, however, has a story that they share that demonstrates commitment to fun from the very top of the organization. The airline was in a legal battle with another company regarding the rights to a marketing slogan. Southwest CEO Herb Kelleher and the CEO of the other company decided to settle the matter by holding an arm-wrestling match dubbed, “Malice in Dallas.” The event had all the trappings of a WWE wrestling match, complete with trash talking, cheating and hoopla. The winner would get the rights to the slogan, and the loser would donate $15,000 to charity. Everyone had a lot of fun, charities received $15,000, and it was agreed that both companies could use the marketing slogan. Kelleher was carried out of the event on a stretcher complaining that he had lost because he had earlier hurt his arm trying to save a little girl from being hit by a bus, had overexerted himself walking up a flight of stairs and had a case of athlete’s foot. This is a CEO that believes in not taking himself too seriously! Southwest loves to tell that story.

As a leader, you can use stories in just about any situation. Here are three very appropriate opportunities for using stories: Celebration/Recognition – How many times have we heard a leader say, “The whole team came together on this one. Congratulations to everyone!”? Well, that’s nice, but so what? I’d like to hear some stories about how the team came together and how they overcame the challenges thrown their way. And maybe some inside stories from team members. I’m much more likely to be engaged in the celebration when there is some real emotion involved. Let’s hear the story! Change/Challenges – The business landscape changes faster than most of us can keep up with. All of these changes cause frustration and skepticism regarding the flood of new initiatives that keep coming down the pike. While stories don’t eliminate frustrations, stories can help illuminate the reason the change is happening. Using a specific customer experience to illustrate the need for change can help employees picture what is happening and, more importantly, what needs to happen. Training – We have all sat through boring training classes in which an instructor or leader recites a bunch of policies and procedures. Our eyes glass over and while we’ve “been told,” we don’t really understand. Stories of employees doing an exceptional job and stories of the results of exceptional work bring the training to life. We all have thousands of experiences that can provide the foundation for stories that help perpetuate an idea, concept or culture. You simply have to think about those things that have had an impact on you, a customer or an employee. Am I saying that it is important for you to become a good storyteller? Yes. However, good storytellers were poor storytellers first. Good storytellers got to be good by telling stories. That’s really the only way to get good at it. The setup tells the listener why you are telling the story. The setup doesn’t give away the ending, but it lets the listener know that the story is about having fun or the importance of providing good service, etc. The story itself is exactly that, and it will get better each time you tell it. The point tells the listener about the lesson the story illustrates. The reprimand story noted earlier, for example, provides the foundation for a discussion on methods for maintaining the dignity of an employee while taking corrective action. It is very satisfying to hear a story that you have told repeated by others. The re-telling may bear little resemblance to the original, but that’s okay. Sometimes a story takes on a life of its own. Sometimes a story becomes part of the folklore of the organization. That’s how cultures are perpetuated, and that is the point. l DENNIS SNOW is a business author, speaker and consultant who helps organizations develop world-class customer service. He is the author of two books, “Lessons From the Mouse: A Guide for Applying Disney World’s Secrets of Success to Your Organization, Your Career, and Your Life” (Snow & Associates), and “Unleashing Excellence: The Complete Guide to Ultimate Customer Service” (Wiley). Dennis can be reached at www.snowassociates.com, or at 407-294-1855.

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3 Countdown to

Year-End:

A Payroll Checklist for QSR Restaurant Owners and Office Staff

contributed by Mize CPAs

s the calendar inches closer to December, many of us are busy preparing for the holiday season. While that is all well and good, payroll processors find themselves immersed in a different kind of festivity: preparing for year-end financials. The objectives of this period extend far beyond the routine processing of paychecks. It encompasses a complex and critical set of responsibilities that require precision, attention to detail and an unwavering commitment to compliance with ever-evolving tax laws and regulations. To help you and your team prepare, we have assembled the easy-to-follow checklist listed in this article.

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n Ask all employees to verify their SSN and mailing address.

If You...

Have You?

Print your own W-2s

Ordered the forms and envelopes? Test print before January!

Submit your own W-2s

Updated your SSA BSO password? You can test your W-2 file using AccuWage with the SSA prior to submission.

Are an Applicable Large Employer (ALE)

Ordered Forms 1095-C, Forms 1094-C and envelopes? Test print before January! Registered with the IRS for electronic filing if you have more than 250 forms to be filed (electronic filing required)?

Prepare your own Forms 1099

n Run a preliminary Form W-2 prelist and determine if any employees are missing SSNs or address. Review for any that have an SSN beginning with “9” or something that looks obviously wrong (for example 123-45-6789). n Review your vendor payment list to determine if there have been any payments in Accounts Payable that should have run through payroll and need to be reported on a Form W-2. n Verify whether you have foreign workers that need special treatment on Form W-2 (J-1 VISA or other types exempt from SS/Medicare). n Check the due date of any state reconciliation forms and/or W-2 filings. n Reconcile your bank accounts and deal with outstanding paychecks. • Unclaimed property reports are required in all 50 states.

Ordered the forms and envelopes? Review a current list of payments to verify how many 1099s you will need and add a cushion. Test print before January!

• “Negative reports” may be required when you do not have any property to report.

Updated your Accounts Payable system with current Forms W-9 information for vendors.

n Review your Form 941 tax deposit requirements for 2024. If you have been paying monthly, check your “lookback period.”

Let’s start with some housekeeping questions. Next, here are some items you should complete before Dec. 31. n Prepare and review your year-end holiday payroll processing schedule and prepare your 2024 payroll processing calendar for the processing dates (with holidays and direct deposit considered) and paycheck dates. n Identify potential taxable benefits to add to payroll before Dec. 31, 2023.

• Never filed unclaimed property? Contact your Mize CPAs staff for assistance.

• If you pay semi-weekly, be sure to deposit NEXT DAY if a liability exceeds $100,000 in your normal deposit period. n Review IRS Notice 931 for specific rules. Then, after Jan. 1, you will want to do the following: n Gather employee health insurance premium amounts paid during 2024 to be shown on Form W-2 (Box 12, Code DD) if you filed more than 250 Form W-2s in 2023. n Check to see if you have any third party sick pay to report on W-2s.

• Personal use of company owned/leased auto

• Group term life insurance policies

n Plan for disaster recovery! Don’t wait until the last day to print your Forms W-2 in case you experience a disaster (water leaks, floods, inability to enter your office for various reasons, no electricity during storms, etc.).

• Third party sick pay

n Perform a year-end reconciliation.

• Year-end bonuses • Holiday bonuses or gifts

• Do 941s & 941-Xs tie to Forms W-2?

• Gift cards/certificates

• Check Federal Taxable wages, Social Security & Medicare taxable wages.

• Two percent S Corp. shareholder benefits • Moving reimbursements (now taxable!) • Educational benefits

n Identify all exempt items.

• Severance or settlement agreement payments

In summary, year-end preparation for payroll professionals is essential to ensure legal compliance, provide accurate tax documentation to employees, meet reporting deadlines and maintain financial integrity within your organization. It also contributes to overall organizational efficiency and employee satisfaction. l

• Manual checks not already entered to payroll • Void checks not already entered to payroll n Remind employees to complete a new Form W-4 if their address, withholding allowances, name or SSN needs to be updated. Watch the IRS website for the updated Form W-4 for 2024. n Run a list of your W-4 exempt employees and remind them they must provide a new W-4 for 2024 prior to Feb. 17, 2024 (single standard deduction).

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Mize is a full-service accounting firm that has provided the Elevanta payroll and accounting solution since 2003. 19

Elements of the Entrepreneurial Mindset Series Element No. 1:

Freedom and Responsibility

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by Dan Coughlin

he drive for almost every entrepreneur begins with a desire for freedom. This was the case for me. I’m the fourth of six kids. Growing up, I often felt I had five parents telling me what to do. My parents and siblings are all wonderful folks, but my position in my family drove me to want freedom in making decisions. I started out as a college soccer head coach and high school math teacher, which provided me with about as much freedom as you can imagine. Ultimately, I started my own business because I wanted to teach ideas on individual and group performance, and that isn’t what high schools and colleges were looking for me to do. I wanted the freedom to teach what I wanted to teach. Other entrepreneurs land on this desire for freedom in other ways. Perhaps they were the oldest child, used to being in charge, and being the head of their own business just made the most sense to them. Other people worked for an entrepreneur and liked the idea of running their own show. No matter how they got there, they found a deep desire to be in charge of their destiny and were willing to put up with the long, hard hours of entrepreneurship. Ironically, many non-entrepreneurs think that money is the driving force for an entrepreneur, but in my experience of being an entrepreneur and working with entrepreneurs, I have found that freedom is actually the most important factor. Many, many business ventures fail within five years. And yet, entrepreneurs try again and again. Why? Because they want the freedom to make their own decisions, even if it leads to another failure. How important is freedom to you? Do you prefer working for a manager or a business owner who provides you with clear parameters on what to do and what to achieve? For many people, total freedom to figure out what to sell and what customers to pursue would not be an enjoyable experience. It would feel like too much pressure. For other people, this type of pressure is what fuels them and keeps them energized. It's very important for you to decide how important freedom is for you in your work life. It’s not that one way or the other is the better way. It’s just that the desire or lack of desire for freedom in your work is a very important first step for you to discern. If you choose freedom and entrepreneurship, then you will have to deal with the upside and the downside of that decision.

The Responsibilities of Entrepreneurship The freedom part is actually the easy part. The hard part is taking on the responsibilities of entrepreneurship.

Responsibility No. 1: You Are Your Brand

Everything you do and say affects the way people think about your business. If you tell a dirty joke, scream at a kid during a youth baseball game, get drunk, use filthy language with employees in front of a customer or sell a faulty product, you affect the way people think about your business. If you treat employees and customers with respect, if you are a positive force in your community, if you avoid taking shortcuts to impress people and if you back up your promises regarding your products and services, then you affect the way people think about your business in a positive way. Everything you do and say affects the way you and your business are perceived.

Responsibility No. 2: Every Employee Affects Your Brand This is true of all your employees. If your employee is rude to customers, then the customers will assume that you are rude and that your company is not something they want to deal with. This is a major responsibility. You might be a great person to be around, but if you allow your employees to act in ways that reflect poorly on your business, then it’s just the same as if you did those things. Clarifying, attracting, selecting, placing and developing the type of employees you want representing your brand and removing employees that you don’t want to represent your brand are very important responsibilities of the entrepreneur.

Responsibility No. 3: You Strengthen or Weaken Your Culture Every Day A company’s culture is how people across the organization act on a consistent basis. It doesn’t matter what is written on the walls. And the number one person who affects a culture is the owner of the organization. Think about that for a moment. Your attitude, words and actions have a tremendous and immediate impact on your culture. Before you move into action, really consider whether you are building the culture you want or one you don’t.

Responsibility No. 4: Every Day You Have to Clarify Important Items When the business day gets rolling, it’s very easy to lose sight of the core pieces of your business. Here are a few questions that you are responsible for answering every day: a. What is the value we are selling? b. What types of customers are we trying to sell that value to? c. What products and services will deliver that value to those customers? d. How will we let those types of customers know that we have this value to offer them? It’s your responsibility to coordinate the efforts of other people to market, sell, deliver and charge for this value to those customers. It sounds so simple, but it’s very easy to fall into the trap of losing sight of these four questions. Freedom comes with responsibility. They are the two sides of the same coin. They are the starting point of entrepreneurialism. l 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. He also guides strategic decision-making meetings. Now, he is also focused on helping people to develop their entrepreneurial mindset. Visit his free Business Performance Idea Center at www.thecoughlincompany.com

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contributed by Lockton Cos.

How To Improve Cyber Security in Just One Month contributed by Lockton Cos.

ver the last few years, franchises have become a favorite target of cyber criminals. Hackers have stolen password credentials, franchise business records and customer credit card data from thousands of well-known establishments. It is true that cyber-attacks target all sorts of businesses, and many recent high-profile hacks include big names outside the industry. However, some cybercriminals prefer franchises because they’re easier targets. • Franchises have less robust defenses than banks and other prime targets. • General awareness of cyber threats and hacking techniques is lower. • Employees tend to have less training on how to protect the business from cybercrime. • Franchises have a high sales volume.

The consequences of a hack are serious. According to a recent report by IBM, the average data breach cost for businesses with fewer than 500 employees is $2.98 million, and the average cost per breached record is $164. Cyber security is important, but for a busy business like yours, it may be hard to focus on. You may worry it will take too much time or money, or perhaps you feel like cyber security is a topic best left to the experts. But as it turns out, taking control of your cyber security is easier, cheaper and quicker than you think. Improving cyber security at your business can be as simple as taking a few easy steps over a few weeks’ time, but the resulting improvements can last much longer. Here’s a simple plan you can implement at your business any time of the year to improve cyber security in just one month.

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Improve Cyber Security Week 1: Inventory At your business, you understand the importance of taking an inventory. It gives important information that helps you make better decisions. The same is true for cyber security. You need to know what you have in order to protect it. In your first week, focus on taking an inventory of all your digital systems. Answer questions like: • How many computers and devices do you have? • What apps and software does your business use? • Are systems and software lacking any updates? • Are all your passwords secure and up to date? • What access privileges do staff members have? • What protections do you already have in place? Taking an inventory will tell you where you are already doing well and where you have vulnerabilities that could benefit from improvement. Improve Cyber Security Week 2: Housekeeping Good cyber security doesn’t have to be difficult. While the technology can be complex, it’s simple cyber housekeeping that helps keep your business and data safe and secure. Spend your second week focusing on some key housekeeping tasks to improve your protection. First and foremost, take care of any vulnerabilities you identified last week: • Perform recommended update and patch maintenance to your systems and software. • Update any passwords that are weak, old or otherwise compromise your security. • Turn on beneficial security protections you already have, like spam filtering, firewall protection and multifactor authentication. If you’re not sure about whether and how to do an update, or how to use your software’s security features, get help from your local IT expert or contact the product’s customer support. Improve Cyber Security Week 3: Planning At your business, you are probably well aware of the importance of advanced planning and development of emergency procedures. They can be crucial for responding quickly and appropriately if there is a fire, an injury or a robbery. With cyber security, having a plan is also key for making sure you stay a few steps ahead of cyber criminals. For your third week, focus on creating a cyber response plan. Some key steps are to: • Conduct a risk assessment. • Identify cyber vulnerabilities. • Define conditions for action. • Develop a detection plan. • Plan an incident response. • Draft communication templates. • Create an event log template. A formal plan can make an important difference in a cyber incident. It helps you identify and respond to problems quickly while taking the right steps in situations where the wrong steps can often magnify the problem and its cost.

Improve Cyber Security Week 4: Training Just as they are crucial for managing risks in other areas of your business, your team will play a big role in the cyber security of your business. It’s important to include everyone in making your business safer online. Spend your last week of the month focused on employee training. • Train employees on the dangers of cyber-attacks and the importance of cyber security. • Teach team members how to use newly acquired or activated security features. • Provide your staff with information on common scams like email phishing and malware. • Organize drills to teach the team how to follow your new cyber response procedures.

It can’t be overstated how important your team is when it comes to cyber security. Managers can’t be everywhere at once, and frontline staff are often the first to notice something usual. More Ways to Protect Your Business from Cyber Security Risks It’s true that cyber security can be intimidating and often isn’t given the attention it deserves. But protecting your business from cyber risks is probably easier than you think. It is possible to improve cyber security in just one month with these few simple steps. It’s also possible to do more to protect your business from the risk of cybercrime. Contact co-brokers Lockton Affinity and Elevanta to learn more about Cyber Liability insurance and cyber security resources that can help protect your business. Visit Elevanta.LocktonAffinity.com to learn more. l 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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Should You Care About the National Labor Relations Board (Whatever That Is)?

by Doug Duerr

ost people, to the extent they know about the National Labor Relations Board (NLRB), mistakenly believe it only has to do with unions. This is actually not correct because although the NLRB is often in the news in connection with unionized employers or targets of union organizing activities, the NLRB enforces the National Labor Relations Act (NLRA), a 1935 law which applies to most employers. Unless you are an airline, railroad, government or very, very small business, you are covered by the NLRA and, thus, subject to enforcement action by the NLRB. “So what?” you might ask, “In all my years of business, I have never come across them.” If that is the case, you are far luckier than a number of businesses that learned the hard way in 2012 that disciplining employees who were exercising rights under the NLRA

could result in substantial penalties and bad publicity. The “Fight for $15” campaign, a “grass roots” movement, supported by the SEIU national labor union, began in 2012 with around 200 fast-food workers who were not unionized, walking off the job and picketing their employers, demanding $15/hour. A number of those picketed employers disciplined, including with termination, the picketing/striking employees. Not surprisingly given the publicity and the involvement of the SEIU, those employers received a swift lesson about employees’ rights under the NLRA and the procedures

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Employees shall have the right to self-organization, to form, or assist labor organizations, to bargain collectively through representatives of their choosing and to engage in other concerted activities for … mutual aid or protection, and shall also have the right to refrain from any or all activities …

What does this mean? While it could take a textbook to explain it fully, stripped to the bare minimum, it means that if two or more employees (or one with the authority of one or more employees or as a logical outgrowth of communications/actions with one or more employees) engage in activity that is intended to improve the conditions of employment, that conduct is protected. Indisputable examples of the exercise of §7 rights include work stoppages, picketing, leafletting and other forms exerting economic, political or public relations pressure on an employer to improve workplace conditions. To be clear, not all conduct is permitted. For example, vandalism, violence, work slowdowns, maligning the employer’s products/services, deliberately false statements and the like are not protected. So, again, since the Fight for $15 has been largely out of the news since 2012/2013 (although it still has an actively updated website), why does this matter, and who cares about the NLRB? Being aware of the rules stated by the NLRB matters; and you should care because there have been some relatively recent developments that increase the potential for you and your business having contact with the NLRB. First, public support for big labor is the highest it has been in many decades. A Gallup® poll from last year found that 71% of Americans have a favorable opinion of labor unions. Couple that with a steady stream of news of workers organizing at Starbucks®, Apple® retail stores and Amazon® locations, workers throughout the U.S. and in industries not normally targets of union organizing are beginning to take action. In addition, the NLRB increased its active presence on social

media to target younger workers, now regularly posting regarding legal developments and expansion of employee rights. In fact, I recently heard an anecdote from an NLRB official about members of the public finding out about changes in the law even faster than the front-line personnel of the NLRB’s field offices. Combine that with changes enabling workers to file charges against employers electronically, and it is clear why there has been a dramatically increasing workload at the NLRB. Second, the top lawyer for the NLRB has been aggressively and openly pushing an agenda intended to facilitate unionization by removing from workplaces any rule, policy or practice that might “chill” employees from exercising their rights under §7. Similar to what the NLRB did during the Obama administration, the NLRB is targeting “standard” clauses in policies and employment contracts and separation agreements requiring confidentiality of compensation, settlement terms or other matters relating to the terms and conditions of employment as well as policies/contract clauses prohibiting employees (or former employees) from disparaging their employer. Does all this mean that your business is next for union organizing or activity or that the NLRB will be knocking on your door as I complete this article? Probably not, however, it does mean that you need to make sure your managers and supervisors, before issuing discipline or warnings, have been trained to recognize employee activity that might be protected by §7. You should also have your handbooks, personnel policies and employment/separation agreements reviewed to lessen the likelihood that the NLRB finds your business has committed an unfair labor practice requiring an economic or other remedy (e.g., having the CEO make a public statement regarding the unlawful conduct and promising not to violate the NLRA in the future).

The NLRB increased its active presence on social media to target younger workers, now regularly

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of the NLRB. The consequences were legal bills, orders of reinstatement of terminated workers, backpay, posting of notices and other remedies. With the passage of 11 years, the memory of those events has faded for many, if not most, retail employers, and many of the supervisors and managers working now had not entered the workforce and are not likely to know of these events. Why does this matter? The employee rights under the NLRA still apply and continue to apply even when there is no union. The rights are set forth in Section 7 of the NLRA and are as follows:

posting regarding legal developments and expansion of employee rights.

There is no doubt that the rules of the game are changing constantly, making an ever-challenging environment for your business. This means that even if you could ignore the NLRB in the past (which you really couldn’t), you need to make sure you pay more attention to it now and for the foreseeable future. l DOUGLAS H. DUERR is a partner at Elarbee Thompson, 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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Generation Z Productivity: What to Expect From the Newest Worker Demographic

“…A …A new generation is on the rise, and the first step to communicating with them is understanding they aren’t just another Millennial.“ Millennial. – Pamela La Gioia, American business author

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by Laura Stack

he post-Millennial generation of workers, born from about 1995 -2010, has now entered the American workplace in earnest. Some 74 million strong, this diverse cohort comprises about one-quarter of our population, and almost 40% of the workforce. They’re more plugged into the digital world than any generation before them and have never known any other lifestyle. Although Generation Z’s oldest members have worked steadily for a decade, some business pundits still don’t know what to think of them or how to handle them. And as with Millennials, many of the experts’ expectations regarding Gen Z have proven mostly wrong.

The Entitlement Refrain

It’s amusing, sometimes, to look at early opinions of changing business paradigms. As Millennials were still getting firmly established, older business generations often misconstrued their independence and lackluster corporate loyalty — fueled by the ways businesses treated their parents during the dotcom bust and Great Recession — as lack of focus and laziness. Some observers initially assumed the newest generation of workers would wind up acting even more entitled, self-indulgent and self-centered than they thought the Millennials were. Fast forward ten years or so, and there’s still little consensus about what to expect of Gen Z overall. However, there are a few things that most observers agree on. It turns out Generation Z is more conservative than Millennials, moving back toward the Baby Boomer/Generation X idea of business, though they still have an entrepreneurial mindset. Some experts are disturbed by the perception that Gen Z’s devices seem grafted to their hands and think this will certainly diminish productivity, but that doesn’t seem to be the case. Here’s what you can expect of Generation Z workers in terms of productivity:

If they get the feedback they crave, they’ll give freely of their time and energy.

They’re not just a bunch of geeky kids. They’re just more tech-savvy than older generations, since they grew up with the technology. Some view their reliance on social media as distracting and isolating, though Gen Z members themselves see it as a way to connect with people all over the world. To them, it’s a form of global networking — which can become productive, as they make connections with potential business partners, the worldwide audience and the global workforce. They often see their devices as extensions of themselves. All they need to do is harness and channel these interconnective tendencies to leverage them productively. Furthermore, they’re comfortable with digital data and analytics and tend to be creative and design oriented. In most ways, their digital competence serves as a strength, and smart

managers, no matter their generation, will take this into account.

They’re motivated to make contributions to the world, and by extension, to their organizations. If they get the feedback they crave, they’ll give freely of their time and energy. They enjoy volunteering and participating in community work the company gets behind. They’re more conservative than Millennials. Gen Z workers are more likely to follow older generations’ ideals of structured work and hierarchies than Millennials. Despite their digital orientation, they value the human connection with their teams and prefer face time with their leaders, with frequent feedback. As a group, they’re less prone to expect validation and view failure as a chance to learn — the old “fail forward” concept older work generations will find familiar. They’re also very competitive and driven by financial and career goals.

They prefer personalized work experiences. In this, Gen Z workers do resemble Millennials. More than a third of them (fewer so far than Millennials) see work/life balance as a priority and take this into account when choosing jobs. While more are loyal to their employers, they still want to have things their way — and in many cases they can get that, with remote working and by leveraging the gig economy. They’re also quite entrepreneurial and like their “side hustles,” though perhaps less so than Millennials. They value independence, though prefer job security more than Millennials.

Engage, Engage, Engage!

For the foreseeable future, Generation Z will comprise a significant portion of the workforce, and within a decade, they may well dominate it. If you can engage their drive to achieve and contribute, you’ll enjoy fantastic productivity from them … but isn’t this true for every generation? Business insiders suggest mentoring and managing them with Millennials, letting them try and fail if necessary and encouraging them to think on their feet. Let them use their devices for research and connection and take advantage of their familiarity with technology in any other way that benefits your business. l © 2023 Laura Stack. LAURA STACK, MBA, CSP, CPAE, is an awardwinning 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, Walmart and Bank of America, and she has been featured on the CBS “Early Show,” CNN and in The New York Times. To have Laura Stack speak at an upcoming meeting or event, call 303-471-7401.

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Elevanta Health

678-797-5160

www.elevantahealth.com/qfa

Lockton Affinity

844-403-4947

www.Elevanta.LocktonAffinity.com

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915-309-8771

www.jarritos.com

Pinnacle Commercial Capital 941-809-7691

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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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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.