2016 PARTNERSHIP SURVEY RESULTS - Constant...

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CONFIDENTIAL: May be used only by KFC and its franchisees and licensees. Unauthorized use, sale, or reproduction is strictly prohibited. This presentation may contain sales and other financial information. No reporting of past or anticipated results should be construed as a guarantee of future performance. ©2016 KFCC FRANCHISE RESPONSE FINDINGS 2016 PARTNERSHIP SURVEY RESULTS

Transcript of 2016 PARTNERSHIP SURVEY RESULTS - Constant...

Page 1: 2016 PARTNERSHIP SURVEY RESULTS - Constant Contactfiles.constantcontact.com/a476bcf9001/b5749d53...Sales and Profits (n = 22) • “Actually making some money in this brand. it has

CONFIDENTIAL: May be used only by KFC and its franchisees and licensees. Unauthorized use, sale, or reproduction is strictly prohibited. This presentation may contain sales and other financial information. No reporting of past or anticipated results should be construed as a guarantee of future performance. ©2016 KFCC

FRANCHISE RESPONSE FINDINGS

2016 PARTNERSHIP SURVEY RESULTS

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PARTNERSHIP SURVEY OBJECTIVES

• Understand Franchise opinions, attitudes, and concerns regarding the business

• Partner with the AKFCF, NCAC, OEC, and entire Franchise community to turn feedback into action and strengthen our commitment to work together efficiently and effectively

• Evaluate how the overall Franchisor/Franchisee relationship has grown over the past year

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FRANCHISE PARTICIPATION RATE

Non-Participating, …

Participating, 39%

SURVEY PARTICIPATION

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HIGHEST SCORED ITEMS –CONSISTENT

StatementPercentage Agree or

Strongly Agree

I believe we need to support both the high end (group meal) and low end (individual meal) of our business.

96%

I believe winning on taste is the Brand’s #1 priority. 92%

I believe the 3 year Brand Positioning is a top priority. 88%

I believe effectively leveraging technology is crucial to our brand’s future. 86%

= highest scored item in 2015

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LOWEST SCORED ITEMS –CONSISTENT

StatementPercentage Agree or

Strongly Agree

I believe we have made the RGM’s job easier than last year. 25%

I use the HR tools (AMP & TM Selection) to drive the selection of great talent in my restaurants.

37%

I am satisfied with the innovation pipeline. 44%

I am satisfied with the overall leadership and direction provided by KFCC Technology.

46%

= lowest scored item in 2015 = new question for 2016

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ITEMS OF GREATEST IMPROVEMENT

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Statement 2016 Score 2015 ScoreDifference from 2015

I am satisfied with the taste and flavor of our current core menu products.

69 49 20

I am satisfied with the innovation pipeline. 54 44 10

I am satisfied with the overall leadership and direction provided by KFCC Food Innovation.

58 49 9

Training is easily accessible to franchisees, managers and team members.

71 65 6

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ITEMS OF GREATEST DECLINE

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Statement 2016 Score 2015 ScoreDifference from 2015

I am satisfied with the taste of our sides and biscuits. 58 71 -13

KFCC provides open and frequent communication regarding brand strategy, initiatives and important decisions.

70 75 -5

I believe we can and will turn around this great brand together.

78 80 -2

I am satisfied with the overall leadership and direction provided by KFCC Operations.

67 69 -2

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RESPONSES BY TOPIC

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PARTNERSHIP

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Statement 2016 Score 2015 Score Difference

KFCC and Franchisees are making real progress towards working collaboratively in the spirit of mutual trust, respect and partnership.

77 77 --

I believe we can and will turn around this great brand together.

78 80 -2

Partnership – Overall Results 77 78 -1

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BRAND STRATEGY

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Statement 2016 Score 2015 Score Difference

I believe the 3 year Brand Positioning is a top priority.

81 77 4

Brand Strategy – Overall Results 81 77 4

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COMMUNICATION

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Statement 2016 Score 2015 Score Difference

KFCC provides open and frequentcommunication regarding brand strategy,initiatives and important decisions.

70 75 -5

I value KFCC Town Hall Calls with specific business topic agendas, best practices, recognition and pre-read emails.

72 73 -1

I intend to attend the 2017 AKFCF Convention in February in Austin, TX.

77 74 3

Team KFC is an effective tool to access the most important and relevant information I need to run my business.

75 75 --

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COMMUNICATION (CONT.)

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Statement 2016 Score 2015 Score Difference

The Association of Kentucky Fried Chicken Franchisees (AKFCF) website is an effective tool to access the mostimportant and relevant information I need to run my business.

66 63 3

Financial data used to make business decisions is shared in a timely and effective manner.

55 54 1

Communication – Overall Results 69 69 --

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LEADERSHIP / REPRESENTATION

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Statement 2016 Score 2015 Score Difference

KFCC Operations 67 69 -2

KFCC Training/Human Resources 66 62 4

KFCC Marketing 78 74 4

KFCC Food Innovation 58 49 9

KFCC Technology 55 56 -1

KFCC Franchise Administration 62 63 -1

KFCC Leadership Team 75 75 --

I am satisfied with the overall leadership and direction provided by…

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LEADERSHIP / REPRESENTATION (CONT.)

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Statement 2016 Score 2015 Score DifferenceThe National Council and Advertising Cooperative (NCAC)

69 67 2

The Operations Excellence Committee 66 63 3

The Association of Kentucky Fried Chicken Franchisees (AKFCF) Board & Committees

73 71 2

Restaurant Supply Chain Sollutions (RSCS) 66 65 1

Operations Sub Committee (OSC) 66 63 3

Leadership / Representation – Overall Results 67 65 2

I am satisfied with the overall leadership and direction provided by…

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OPERATIONS

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Statement 2016 Score 2015 Score Difference

We have clear operations performance standards for our restaurants.

71 69 2

I believe we have made the RGM’s job easier than last year.

42 44 -2

I believe winning on taste is the Brand’s #1 priority. 83 83 --

I believe the KFCC Operations team is supporting me to achieve success in my business (KFCC Operations Leadership and Operations Leaders).

66 63 3

Operations – Overall Results 66 65 1

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TRAINING / HUMAN RESOURCES

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Statement 2016 Score 2015 Score Difference

Relevant tools, knowledge and training are provided to achieve operational excellence.

72 68 4

Training is easily accessible to franchisees, managers and team members.

71 65 6

Learning Zone is an effective tool for accessing training material and tracking completion of training standards.

70 66 4

I use the HR tools (AMP & TM Selection) to drive the selection of great talent in my restaurants.

54 N/A N/A

I use the HR resources (Hiring Zone & Learning Zone) to drive action in my restaurants.

65 59 6

I use the People Promise and Your KFC Voice to help drive culture in my restaurants.

62 61 1

Training / Human Resources – Overall Results 66 64 2

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MARKETING

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Statement 2016 Score 2015 Score Difference

Our marketing plan is strategically sound. 71 68 3

I believe we need to support both the high end (group meal) and low end (individual meal) of our business.

87 88 -1

Our marketing plan is capable of driving +5% comp sales growth.

68 66 2

I am satisfied with our advertising. 73 67 6

I am satisfied with our merchandising. 67 65 2

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MARKETING (CONT.)

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Statement 2016 Score 2015 Score Difference

Our marketing plan development process is disciplined with proper lead time.

69 66 3

Our National Council and Advertising Cooperative (NCAC) process is efficient and effective.

67 65 2

I believe the best way to improve value perception is through delivering hot and fresh product within 5 minutes to all KFC guests.

76 74 2

I believe the best way to drive transactions is to create abundant value for Individual Meals, Group Meals, and snacking.

75 74 1

Marketing – Overall Results 73 70 3

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FOOD INNOVATION

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Statement 2016 Score 2015 Score Difference

I am satisfied with the taste and flavor of our current core menu products.

69 49 20

I am satisfied with the innovation pipeline. 54 44 10

I am satisfied with the taste of our sides and biscuits.

58 71 -13

Food Innovation – Overall Results 60 55 5

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TECHNOLOGY

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Statement 2016 Score 2015 Score Difference

I believe effectively leveraging technology is crucialto our brand’s future.

80 79 1

I am satisfied with the support I receive from the MERIT Restaurant Helpdesk.

66 64 2

I am satisfied with the support I receive from MERIT Data Management.

65 65 --

The features of the MERIT system help me run better operations.

64 65 -1

I subscribe to a third party vendor to enhance the reporting I receive from MERIT.

63 N/A N/A

Technology – Overall Results 68 68 --

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OPEN ENDED QUESTIONS

(PREVALENT THEMES)

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AS I LOOK INTO THE FUTURE FOR OUR PARTNERSHIP, I AM MOST

ENTHUSIASTIC ABOUT...

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Representative Comments (n = 135)

Partnership (n = 30)• “What seems to be a spirit of ‘relationship building’ between the corporate and franchise leadership. I believe that

the continuity in the leadership is essential to lasting results.”• “The fact that the corporation and franchisees are listening to each other and operating in the best interests long

term of the Brand.”

Product Innovation (n = 22)• “Building consumer confidence in a brand with innovation and facilities the are appealing to customers.”• “New product development and emphasis on quality and procedures.”

Sales and Profits (n = 22)• “Actually making some money in this brand. it has been a long time since we have had restaurant economics that

drove profit and this year has been a big turn around in that area.”• “Sales and traffic are positive and this is good momentum and makes decisions like investing in ASAP remodels

much easier.”

Brand Turnaround (n = 21)• “Being part of a brand that is beginning to gain ground on our competition.”• “The focus and partnership on turning the brand around that we have invested in the past few years.”

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AS I LOOK INTO THE FUTURE FOR OUR PARTNERSHIP, I THINK OUR

BIGGEST OPPORTUNITY IS...

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Representative Comments (n = 132)Product Innovation (n = 34)• “Is bringing products to the brand that will attract the younger generation. Boneless products, sauces etc.”• “Becoming the #1 destination for all chicken sandwiches and other portable chicken products. Also, maximizing cost savings in

food and paper costs through innovation.”

Operations, including standards and simplification (n = 28)• “Creating brand loyalty through maintaining higher standards in operations.”• “Restaurant Operations - particular service speed - as move into sandwiches -- we will competing with the QSR industry --

customers expect excellent service and service speed - particular through the DT.”• “Simplify operations from a product standpoint as well as clerical. The amount of work our management staff has to keep track

of is unbelievable. “

Financials (n = 23)• “Profits! Increasing min wage and other costs of labor as well as food inflation over the next couple of years will bring margin

pressure.”• “We need to get away from the $5 fill-ups, it’s killing our food and paper!”

Partnership (n = 23)• “Making Franchisees feel like they are heard and helping them grow the business.”• “I believe the synergy between corporate and small franchises like myself are poor. I don't believe most people at the

corporate office understand how difficult the volume of email communications, the disjointed technology, and the corporate promotion machine at believing their own rhetoric does not convert into effective action to the small franchisee.”

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AS I LOOK INTO OUR FUTURE FOR THE BRAND STRATEGY, I AM MOST

ENTHUSIASTIC ABOUT...

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Representative Comments (n = 100)

Product Innovation (n = 22)• “Sandwich program. I believe we can really add sales and profits if we come up with great sandwiches…”• “Winning on Taste and developing new products that will drive new customers.”

Brand Turnaround and Relevancy (n = 21)• “Getting younger people - the millennials to come to our restaurants.”• “Capitalizing on the opportunity to regain an industry leadership position.”• “Getting this once great brand being great again.”

Facility Remodels (n = 20)• “American Showman and remodels that go hand in hand with brand turn around.”• “To have the new ASAP sweep the country to bring excitement to the public that we are unique and

relevant with appealing to all age groups.”

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AS I LOOK INTO OUR FUTURE FOR THE BRAND STRATEGY, I THINK OUR

BIGGEST OPPORTUNITY IS...

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Representative Comments (n = 99)Product Innovation (n = 48)• “The new product pipe line is moving to slow. Lets get going and talk about something new. The 5 Dollars fillups cannot continue on forever.”• “Lunch business and possibly breakfast. Simple breakfast like Chic Filet would be fine. We are in the stores early so we might as well sell

coffee, biscuits, chicken, etc.”• “Menu simplification and then migrating to more off of the bone products.”• “To get aggressive about our sandwich line...and offer the consumer what they can have at other QSR---steal their business and make us the

#1 Chicken choice in everyone's mind.”

Operations, including simplification and standards (n = 22)• “Part of our problem… is that customers feel rushed because of our speed of service goals. My team meets there speed of service but we can

not get our customers to fill out a VOC survey online…We have tried everything. So our crew feel like they are failing to meet the standards so they quit trying.”

• “Menu complexity. To many products for RGM & teams to order, stock, prepare, hold, & sell.....all while trying to meet service time goals and Food costs!”

• “Operation simplicity for the RGM. This brand is extremely complex and it takes the Manager away from always being able to do what's most important. Taking care of our guests.”

Value and ensuring long-term profit, especially around $5 / $20 Fill Ups (n = 12)• “We have a lot of "eggs in the $5 / $20 Fill Up basket"... I'm hoping that the leadership (KFCC and NCAC) are ready with alternatives when

this tactic has run it's course.”• “$5 fill up as previously stated. Other brands (Subway and Pizza Hut) have struggled to get away from $5 Footlong and $10 any pizza. We

need to have an exit strategy or all the gains we have made will erode away.”

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AS I LOOK INTO OUR FUTURE FOR COMMUNICATION, I AM MOST

ENTHUSIASTIC ABOUT...

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Representative Comments (n = 66)

Transparency (n = 12)• “I truly believe that the brand is more driven to have bottom up communication with respect to what are managers

are saying and the heartbeat of the store. Products are much better with respect to how the teams execute in the stores.”

• “That the brand understands that more communication is the right thing to do.”• “KFCC having open & honest communications with operators about success & failures.”

Partnership (n = 9)• “A blending of KFC and AKFCF information.”• “KFCC's willingness to listen to feedback and find win-win solutions.”

Technology (n = 8)• “The new year-round AKFCF App.”• “Continuing to make Team KFC more and more user friendly.”

*Note – The majority of comments (n = 23) referenced not being enthusiastic about the future of communication.

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AS I LOOK INTO OUR FUTURE FOR COMMUNICATION, I THINK OUR

BIGGEST OPPORTUNITY IS...

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Representative Comments (n = 68)

Method, including language used, simplifying accessing information, and allowing Q&A on calls (n = 23)• “...to make sure that the communication is presented in the right verbiage so franchisees understand the

information.”• “Town hall calls at least every 2 months.”• “Would be nice to be able to log onto one site and get everything from Brand, AKFCF and Region communications.”• “Q&A on town hall calls.”

Technology (n = 15)• “Improved ease of navigating on Team KFC . Make it more intuitive (ie like Apples' IPhone and IPad.)”• “Team KFC is still clunky. Learning zone is still a mess. I think our best opportunity to push marketing news and

training to our employees would be a dedicated app on their phones that allows them to quickly do it. “

Partnership and Transparency (n = 12)• “Need a forum where franchisees can compare sales, best practices like old DMA meetings.”• “Open communication and honest, actual results concerning return on investment from remodels.”

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AS I LOOK INTO THE FUTURE OF OUR LEADERSHIP, I AM MOST ENTHUSIASTIC ABOUT...

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Representative Comments (n = 67)

Talent and enthusiasm of stable Leadership Team (n = 27)• “Most leadership have an enthusiastic outlook and are seeking the same positive goals I am.”• “Keeping the current team in place. We are heading in the right direction, we do not need leadership

changes to make us pause and regroup as it has happened in the past.”• “The quality of our leadership team and the enormous improvement in training.”

Partnership (n = 10)• “How KFCC and KFC franchisees are truly working together as a team.”• “That the Corporation is better at understanding the needs and desires of the franchisee.”

Turnaround and fresh ideas (n = 8)• “New Leaders coming into the picture with new fresh ideas.”• “Moving forward with getting new customers in our doors.”

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Representative Comments (n = 71)

Partnership (n = 13)• “Different Franchisees willing to step up and lead our franchisee organizations NCAC/OEC/AKFCF etc.”• “Making sure we remove the silos and actually work together as one brand.”

Operations (n = 12)• “The timing and delivery of tools from the technology department has been disappointing.”• “Operations simplification.”

Talent (n = 8)• “Making sure we have the right people in the right places! Leaders who understand operations and what

its like to run a KFC restaurant.”

Technology (n = 8)• “Our IT is ancient even when I bought it 3 years ago. Hate, hate, hate paying for KFCCs IT department.”

Turnaround (n = 8)• “Making certain that the direction that has gotten us thus far be maintained.”

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AS I LOOK INTO OUR FUTURE FOR OPERATIONS, I AM MOST ENTHUSIASTIC ABOUT...

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Representative Comments (n = 68)

Operations Simplification (n = 21)• “Spending less time on the computer and more time working in the restaurant.”• “The focus on operations is helping us get more consistent with taking care of the customer.”

Turnaround (n = 13)• “The packline has made us competitive with other brands and allowed us to have the speed we need.”• “Growing sales by winning on Taste and new products.”

Standards and Performance Measurements in Place (n = 9)• “The new customer facing direction of ROCC inspections and operations simplification.”• “...the systems, processes that have been developed and clarity of the goals.”

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Representative Comments (n = 81)

Operations Simplification (n = 24)• “We are too forms driven. Simpler operational forms focused on times and temps.”• “Operation simplification reducing actual labor hours in the store.”• “Our RGM job is extremely time consuming and difficult. The KFC business as a whole is just difficult.”

Product Innovation (n = 11)• “Menu development, how do we make it easier for our teams to make the products correctly”• “The world loves chicken sandwiches and KFC should have always had an original recipe premium

sandwich better than any sandwich you can get anywhere else.”

Standards and Performance Measurements in Place (n = 11)• “I would focus more on friendliness and accuracy than speed. We really need to focus on correct orders

and hospitality.”• “Ops leadership seems to focus on what ever the bonus is put against. I guess that's what you want but I

believe it creates gaming of the measures across the board.”

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AS I LOOK INTO OUR FUTURE FOR HR & TRAINING, I AM MOST ENTHUSIASTIC ABOUT...

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Representative Comments (n = 55)

Learning Zone (n = 16)• “Learning Zone just keeps improving. It has come a long ways and makes a big difference in our

restaurants.”• “The improvement in the quality of training through LZ.”

Training (n = 11)• “New product training. It has improved 1000% in recent years.”• “Training tools have improved.”

Tools (n = 7)• “The great tools that are available.”• “Improvement of the tools over the years.”

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Representative Comments (n = 66)

Training (n = 23)• “Courses are still too long and not completely effective. Videos are the most helpful tools to train as visual

memory is easy to retain.”• “Have training put on screens in front of the work station that employee is training at this will allow then

to visually see the task they are to learn.”• “Continue to make it easy to teach team members procedures. There is a lot of maintenance for the RGM

pertaining to training and the learning zone.”

Learning Zone (n = 12)• “While this is probably more of an individual franchisee issue, we need to guard against the idea that LZ

will solve all of our training problems. It tends to turn into a "check the box" exercise as opposed to being used as a tool to assist in our training.”

• “Learning Zone needs continued improvement its a great tool but has bugs and needs to be made available on ipads etc.”

Hiring Zone (n = 9)• “The Hiring Zone is not effective for me.”

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Representative Comments (n = 68)

Advertisements (n = 14)• “Our current Colonel ads.”• “Driving new customers to KFC through media!”

Innovation (n = 10)• “Getting sandwiches started.”• “New products.”

Leadership (n = 7)• “Great leadership!”

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Representative Comments (n = 68)

Value and Finances, especially around the $5 Fill Up (n = 28)• “We need to find a way to reduce the number of items on the $5.00 box as labor is getting very expensive

hurting margins, when commodities start to increase we could be in trouble.”• “$5 meals need to change. We can't keep doing those with higher labor costs.”• “Offering value and still maintain our margins.”• “How to continue to do attractive price points and meet all the other surging financial obligations we are

facing and will face.”

Innovation (n = 15)• “It's always about coming up with the next twist or product that will keep the momentum going…”• “It takes way too long to bring a new product to market. The continued delays in the launch of sandwiches

has cost us millions in sales and put us further behind the competition.”• “Next generation of the fillups to drive bottom line profit.”

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AS I LOOK INTO OUR FUTURE FOR FOOD INNOVATION, I AM MOST

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Representative Comments (n = 65)

New Flavors (n = 26)• “The vision is to add flavors while minimizing additional meat blocks and SKUs.”• “The new flavors. This is a huge opportunity for news and new customers.”• “Being able to add flavor to current items to improve appeal to the new customers.”

Sandwiches (n = 17)• “Sandwiches are a way to increase sales!”• “I look forward to a sustained successful sandwich.”• “Better sandwiches. No reason we can't have the best chicken sandwich in QSR industry.”

Innovation (n = 9)• “The sauce bottle (Nashville Hot, Gold) application method opens up a lot of potential with ease of

execution.”• “The pipe line of new products.”• “Room for growth.”

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Representative Comments (n = 85)

Innovation (n = 25)• “New and different products. I think customers are getting a little bored.”• “From what I know the only thing in the pipeline for 2017 that is new is Zinger sandwich. That's not much

of a pipeline of products we need to have 3-4 proven products in the pipeline at all times in my opinion.”• “Having a strong pipeline of products that use existing smallwares and equipment.”

Improvement of the Quality of Sides (n = 25)• “Biscuits need more shortening and buttermilk taste they fall apart quickly and get hard quickly.”• “Sides improvement: Cole Slaw is no where near as good as making it from scratch. Crackling gravy.”• “GRAVY GRAVY GRAVY!!!! It ain't bad....But C'mon. Make a batch of Cracklin Gravy and tell me there is

any comparison.”• “Mac & cheese is never consistent along with the Cole Slaw”

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AS I LOOK INTO OUR FUTURE FOR TECHNOLOGY, I AM MOST ENTHUSIASTIC ABOUT...

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Representative Comments (n = 51)

Merit (n = 11)• “Merit not only being a company tool but Merit becoming the only tool I need for accounting and record keeping.

Merit being more labor friendly on managers and hourly training.”• “I do believe that MERIT saved our business due to the fact that we had actionable data so much quicker than in the

Pre-MERIT days.”• “Improvements to Merit.”

Technology Improvements (n = 4)• “Continued and improving ease of use.”

Hot Schedules (n = 3)• “Hot Schedules.”

Reporting (n = 3)• “Online/real time cloud based reporting is exciting.”• “Great tool with good reports.”

*Note – The majority of comments (n = 15) did not list anything in regards to being enthusiastic.

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Representative Comments (n = 66)

Merit (n = 13)• “Merit is too slow on credit cards.”• “Merit it too cumbersome and impossible to customize for my needs. I have to subscribe to third party

resources to get what we need in a timely manner.”• “Upgrading merits software. The hardware is fine, but the software is old.”

Tools (n = 12)• “Thoroughly investigating an holistic solution that integrates well with our reporting, forecasting,

documenting, training & communication systems.”• “Early credit card fraud detection…”• “Using technology for better ordering/ apps and improving online projections.”

Innovation (n = 11)• “Replacing high paid cashiers with innovative choices. I.e. Kiosks.”• “Need onboarding for Team members on line - employee handbooks- W-2, I-9.”• “Greater access to video monitoring.”

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THANK YOU!