Chairman`s Message Inside this Forum
Transcription
Chairman`s Message Inside this Forum
Spring 2014 Chairman’s Message Greetings from the Denny’s Franchisee Association Board of Directors! We hope your summer is off to a fantastic start, with strong sales and special family times already underway. The first half of the year has been busy as always, with substantive focus on Denny’s fee ‘rebalancing’, formation of the Supply Chain Oversight Committee and our 12th annual Allied Partner Summit. As discussed in the system-wide communication, the change to Denny’s fee structure was consistent with our alignment and constant focus on improvement of restaurant level margins (in this case by ½% of sales.) This change will benefit almost 50% of the Denny’s domestic restaurants over the next four years. The amendment offered by Denny’s was the result of collaboration between the DFA Board and Denny’s leadership that was comprehensive in its review of multiple considerations related to long term brand impact. In conjunction with the amendment relative to fees, our Brand now has more formalized oversight Committees around the Brand Building Fund and strategic supply chain management. Importantly, while franchisees (primarily through the DFA Board) will have a prescribed role in managing the supply chain, Denny’s will continue to fund procurement services consistent with historical practice for the next seven years. The DFA Board believes all these changes are beneficial to the franchise community and support the long term health of our wonderful Brand. As you will see on pages 8 through 9, our 12 th annual Allied Partner Summit continues to be a successful element for our Brand relative to food, suppliers and supplier interaction. For 2014, we hosted 100 Brand suppliers and over 250 total attendees. Over the course of one day, the suppliers made presentations regarding existing and new products or offerings to corporate and franchisee leaders. This year, we continued the evolution of our event Craig Barber program and all panelists, (DFA Board, franchisee guests and Denny’s leadership), were able to sample offerings from over 20 suppliers during our morning session. We believe the event is truly beneficial to our Brand. We appreciate the support of Denny’s leadership and the sponsorship by MBM and Coca-Cola to make our event so effective. As always, we appreciate the support and participation of our supplier partners. As the pictures reflect, the event provides a valued time of networking with peers and supplier companies along with joy of gathering with folks who care so deeply about the Denny’s Brand. We encourage you to register on-line for the DFA convention which begins November 3rd in Phoenix at the Arizona Biltmore. Our convention theme is “Uniquely Designed for Success”, which as always, has multiple meanings within our Brand. From our facilities to our menu and beyond, Denny’s is unique and must be to compete in today’s fight for market share. As you consider your plans, please (Continued on page 2) Inside this Forum Chairman’s Message………………...….…………1-2 Brand Advisory Council Updates …….…….….....3-5 DFA Updates...........................................................6 Allied Partner Summit meeting……...........……..8-11 News to Know...................................................12-17 Sponsors’ Spotlight.................................................18 Membership............................................................19 DFA Calendar ........................................................20 Chairman’s Message Board of Directors Craig Barber, Chair 615-277-1212 - Phone craigbarber@dennys.org Sam Wilensky, Vice Chair 850-525-2737- Phone samwilensky@dennys.org Dawn Lafreeda, Treasurer 210-694-0707 - Phone dawnlafreeda@dennys.org Glenn Beattie, Secretary 480-722-9196 - Phone glennbeattie@dennys.org ### Holly Agassi 877-206-0951 - Phone hollyagassi@dennys.org Kevin Coveney 740-586-2889 - Phone kevincoveney@dennys.org Robert Duskin, CPA 602-248-8223 - Phone robertduskin@dennys.org Carl Ferland 919-303-3300 - Phone carlferland@dennys.org register early, as after September 15th your registration is subject to fees approved by the DFA Board as part of our financial planning for the Association (details on page 20). We encourage our exhibitors to reserve their booth for the trade show, as we are more than half-full for that important time during our convention. (Continued from page 1) Our keynote speaker for 2014 will be Connie Podesta, who is a hall of fame keynote speaker and award winning author along with being a board certified therapist and licensed professional counselor. Her latest book “10 Ways to Stand Out from the Crowd” contains real-life success strategies that can help us all. Finally, we continue to be pleased with the collaborative work with Denny’s, Inc. leadership in support for this important Brand gathering where we Share in community, Renew our commitments, Align with clarity and Hear important calls to action. On pages 3 through 5, you will find important updates from the Brand Advisory Councils while page 6 provides key details on a new supplier agreement with Ecolab. All three Brand Advisory Councils continue to meet regularly and continue to improve the integration between the councils to maintain the needed alignment and focus to elevate Brand performance. We appreciate the collaborative leadership with our franchisor as key initiatives and challenges are reviewed, discussed and adjusted. As highlighted on page 18, we want to recognize and welcome Stampede Meat and CTI Foods as new sponsors of the DFA while also thanking Dakota Provisions for their upgrade in sponsorship. We hope you will read the sponsor spotlight on a long term partner for the Denny’s Brand – Basic American Foods. Page 19 includes our heartfelt welcome to 17 new Allied Partners. As always, it is an honor to serve you and serve with the DFA Board. We appreciate your support and your commitment to our Brand. A final and important thought is my encouragement for your participation in Share Our Strength’s No Kid Hungry campaign. As a Brand, our goal is to raise $1 million and have participation by 100% of the restaurants in our Brand. Over the first three years, we helped provide 14 million meals for children in need. Our efforts this year will continue that good and worthy assistance to young people who truly need our help. Best regards, Board Chairman Bob Gentz 480-829-5090 - Phone bobgentz@dennys.org Bob Langford 615-277-1234 - Phone boblangford@dennys.org Register at Dennys.org, Rahul Marwah Important 562-777-2249 - Phone rahulmarwah@dennys.org Do Not Miss The Jim Wainwright Free Franchisee 303-601-1569 - Phone jimwainwright@dennys.org Registration DFA Management Office Opportunity Tiffany Danley, Tiffany@dennys.org Bobi Magro, Bobi@dennys.org Rich Danley, rich@dennys.org (888.433.6697) info@dennys.org www.dennys.org 36 Thorn Oak Dove Canyon CA 2679 See page 20 for more details. 2 Brand Advisory Council Updates Marketing After closing a solid first quarter, which saw us continue to drive positive sales, we head into the heart of spring and into summer with Module 2. With Module 2, we continue to emphasize our connection with the consumer through our “Welcome to America’s Diner” campaign, celebrating our authentic diner heritage that our guests love so much. The new module started on April 1 and is centered on the diner monthly specials, featuring three “Monthly Features” media messages strategically highlighting a specific value, core, or LTO product feature. The instore experience will consist of a free-standing menu featuring all three of the monthly features while the in-store restaurant stanchion posters will rotate each month, featuring the specific “Monthly Feature”. To achieve our objectives of sales with profitable traffic in Module 2 we feature the following M2 monthly features: April: Build Your Own French Toast May: $4 Baja Quesadilla Burger June: Avocado Season We know that our guests love the ability to get exactly what they want whenever they want it, so expanding on one of our key core platforms of French Toast, coupled with our popular Build Your Own umbrella platform, reinforces this critical guest benefit. Focusing primarily on the breakfast day part with a bulls-eye target of families with kids, this April media feature will certainly deliver on driving sales and traffic into our restaurants. From an operations standpoint, this platform was built on existing BOH and FOH procedures and requires only three new SKUs. The May media feature, Baja Quesadilla Burger, will appeal to millennials and meets guest needs with a focus on lunch and late night occasions. Being on the $2-4-6-8 menu at $4, the Baja Quesadilla Burger delivers a new every day affordability message through media that also leverages our popular burger platform. It reinforces how the $2-4-6-8 value menu extends into multiple day parts and occasions with an ideal mix of price point and craveability for late night guests. This feature dedicates media efforts to lunch and late night day parts after four consecutive months of breakfast messaging. Having already been a part of the $2-4-6-8 menu, no new training needs and no new SKUs will also make this an operationally friendly feature. Continuing with our strategy of driving in with hot price points and upselling in the restaurant to higher margin items, the $4 product will be line listed on the menu but not purposefully not called out in other inside-the-four-walls merchandising. Rounding out Module 2 in June, media will feature Avocado Season. This feature will appeal to all, with a skew toward young adults, females, and has a very strong appeal among our Hispanic guests. We know this feature has momentum within the industry, as well as consumer momentum. The avocado was named as “Ingredient of the Year” for 2014 by Nation’s Restaurant News and consumers say they are more likely to order menu items made with avocados since it is viewed as a healthy, satisfying, premium treat. Avocados pair perfectly with a number of our favorite brand platforms, allowing us to build recipes that promote operational consistency, plus there are no new SKUs required. While there is some level of regionality to avocadoes, we expected and early results confirm, solid appeal in all regions across the country. Additionally, the “Add Avocado” message throughout all of M2 provides a strong opportunity for profitable upsell. While the ‘Monthly Features’ menu features will be available in the restaurant throughout the Second Quarter, our new breakthrough TV campaign will air a unique commercial each month promoting the ‘Monthly Feature’ and encouraging “gotta get there” behavior from our guests. The “Slice of Diner” TV campaign includes new :15 spots showcasing the energy of a diner and the freshly prepared ‘Monthly Feature’, with an additional new “4 for $4” $2-4-6-8 spot available for local DMA use and mixed in as needed nationally. National media began April 7th with a powerful broadcast programming lineup on late night, syndicated, premium cable and cable sports. In addition to TV support, a robust Hispanic, digital, mobile and social program will continue to reinforce menu items and drive traffic. M2 also kicks off some exciting initiatives like the partnership with National Geographic and the new “Kids Adventure Menu”. This provides us the opportunity to get families together at the “Diner” table. The new Kids Adventure Menu is the centerpiece of efforts to encourage interactivity around the table for families with children dining at Denny’s. The initiative will highlight the new BYO platform, respective products and National Geographic Kids signature activities designed to engage kids and parents in meaningful conversation and interaction as they select and order menu items. Families and kids are important to Denny’s, so this new partnership provides the channel to attract not only our current guests, but lapsed users as well through the wide voice of the National Geographic platforms, including their digital and print properties (parents and kids). All of our initiatives will continue to be supported with our industry-leading digital and social support, with particular focus socially on Facebook (both general market and our newly launched Latino Facebook page), Twitter and Tumblr. Additionally, a new and improved mobile app is now available to guests featuring a “Build Your Own” App format featuring familiar items like menu and restaurant locator along with new and engaging games and activities. Guests visiting the restaurant can scan a QSR code on the placemat and directly download the free app. Finally, focus on maximizing margin continues. Many of you have heard details from us directly at your market-level DMA meetings. Here we have discussed the M2 changes to the $2-4 -6-8 menu – three new cost-engineered dishes at $8, along with the deletion of the “free” beverage at the $8 price point (with the exception of Grand Slam Slugger, which will continue to include juice and coffee), as well as the addition of the popular Eggs in a Basket (formerly Hobbit Hole Breakfast) at $6. These changes alone have lowered the $2-4-68 food cost by over a full point, with addi- (Continued on page 4) 3 Brand Advisory Council Updates tional testing underway to make even more of an impact on food cost – while still keeping the consumer appeal – of the $2-4-6-8 menu. Additionally, we have discussed our heightened focus on LTO margin targets and strong progress of joint marketing/operations efforts to core menu optimization. We will share full details in our next communication before the M3 launch. In our future communications you will also hear more about our upcoming August national print drop. While at press time we do not yet have full analysis of the March national drop, early returns are very encouraging and we are optimistic the vehicle has achieved its objective of delivering motivating news to our guests and compressing frequency into our restaurants. This approach of efficient national print combined with targeted local print drops selected by DMAs/co-ops has proven to be a solid formula, and we continue to analyze for future improvements. Profitable traffic is all of our focus, and we appreciate all you do to bring an outstanding experience to each and every one of your guests each day. Please reach out with questions or comments, and we’ll see you at America’s Diner! Contributor: John Development (Continued from page 3 ) The Development BAC had its monthly call on April 7, 2014. Franchisees participating were Dawn Lafreeda, Bob Gentz, Rahul Marwah, Carl Ferland, Farooq Ghias, Robert Duskin, Adam Jacobs, Doug Koch and our newest franchisee participant Adam Jacobs.. Company representatives were Steve Dunn, Tim Flemming, Mark Burgess and Joe Giordano. The MSIP enrollment deadline will be extended and announced. Likewise, we will announce an extended deadline for Sunrise remodels which are due. There are 31 franchise and 16 company remodels complete so far in 2014. We expect 140-160 franchise and over 30 company remodels over the whole year. Steve Dunn presented the Phase 3 scope for the Sunrise to Heritage. This is a concept and the detail is yet to be finalized. We currently have 12 franchise stores participating in a test, which includes up to $10,000 towards carpet purchase and installation. We Dillion VP Marketing, jdillion.dennys.com Marketing Chair- will define success criteria based on the investment cost. man: Sam Wilensky, samwilensky@dennys.org We looked at the latest results for all Heritage remodels. There is a 5.2% lift and 8.6% comp sales improvement for the large group of 58 restaurants, with better results in old image stores. We need to send the list of Heritage restaurants so people can visit. Steve talked about new food offerings at Flying J. Pilot has agreed to remove obstructions from the travel path. Contributor: Tim Flemming, Denny’s Inc Senior VP, tfleming@dennys.com Co-Chair Robert Duskin, CPA robertduskin@dennys.org. New Store Openings Locale Franchisee Opening Toronto, ON (CN) Soma, Dan 5/18/14 New York, NY Marwah, Rahul 6/4/14 Medford, OR Navran, Hamid 6/22/14 Hazelton, PA Gill, Hardy 6/29/14 Gatlinburg, TN Ferland, Carl 7/13/14 Domestic: International: Corporate: Total Units: 1433 102 161 1696 Total Dennys Units (Continued on page 5) 4 Brand Advisory Council Updates Operations The following represent just a few of the initiatives we are working on throughout 2014. We welcome your feedback and comments. 2% Margin Improvement We all know it’s a penny profit business and rising costs are always a challenge each year. We are working hard to identify specific Margin Improvement Opportunities to prioritize, address and attack at the restaurant level. One of the first areas of opportunity: 2013 food waste. From the DINE system, we saw over $22M in opportunity that we feel can be attacked. To help communicate some of these opportunities and recommendations, we have developed a WOW (War on Waste) monthly newsletter. Look for the first edition the end of May on the Day to Day Portal and your Denny’s Mailbag. We encourage all suggestions and recommendations from the field, and can be submitted to the Margin Opportunity Committee, included in the newsletter. We look forward to sharing some great savings opportunities in the weeks and months to come. Menu Optimization The Operations BAC and Marketing BAC are working together with Product Development to continue to Optimize our Menu offering. Most recently, the OPs BAC, John Miller and Lead Cooks & General Managers met in the Orlando, FL market over two days just to talk about Menu Optimization. The outcome was over 60 menu opportunities that needed to be addressed. Of those, we have taken action on 34 of the items, launched by the July core menu. Look for us to take the Menu Optimization meetings on the road to continue to capture further recommendations and suggestions from the field in our ongoing effort to maximize our menu. Operations Simplification Restaurant Operations Simplification and Efficiency for Managers, Cooks and Servers is another focus the OPs BAC is working on, designed to improve the execution of Shiftily, Daily and Weekly Job functions & responsibilities, procedures and standards. One project underway is “Hold Time Families" to review and implement more consistent hold times by product family. Another test is a Scoops test in Phoenix, shutting off the water to the cook’s line dipper wells by placing a portioning device in every product. Look for the work to continue in parallel path with our Menu Optimization & Margin Opportunities projects. Day 2 Day Communications Portal We are in the final stages of launching the Day-2-Day Communications Portal to all restaurants in the US. Now the real challenge begins…the learning of a new routine. This is where above restaurant management is needed to assist in coaching the new behavior. Through multiple webinars, they have been equipped with the knowledge and benefits of using the system so they can help reinforce the use of the Portal. Operations will be supplying regular weekly content to help drive managers to the site. We are also looking at the possibility of a campaign that includes incentives for those who use the system consistently. Denny’s Pride Restaurant Review The Operations Coaches have gone live April 7 conducting Pride Reviews. There have been over 75 restaurants visited over the first four weeks with very positive comments from DFA members that have gone through the process. Denny’s will continue the Introduction, Education & Training process across the Brand with workshops, communications on the Day to Day Portal and Train ing Videos. Brand Protection Update Health Inspections Received: Health Inspection Failures: Jan. – Dec, 2012 -3408 Jan. - Dec, 2013 – 3177 Jan. – Mar. 16, 2014 - 532 Jan. – Dec, 2012 -153 Jan. - Dec, 2013 – 212 Jan. – Mar. 16, 2014 - 29 BPR Failures: Jan. – Dec, 2012 – 196 Jan. – Dec, 2013 – 312 Jan. – Mar. 16, 2014 - 57 Guest Complaints Received (Cleanliness/Food Quality/ Pest): Jan. – Dec, 2012 – 9,876 Jan. – Dec, 2013— 13,222 Jan. – Mar. 16, 2014 – 1301 New Labor Model Project OBJECTIVE – Improve labor deployment throughout the restaurant leading to improved Service Guest Execution and Frequency of Visit. A Project Team of Kevin Coveney, Tom Rossetti & key General Managers will be working with Denny’s Inc and Altametrics to complete a Time in Motion study and Manning Level Table recommendations to better support in restaurant scheduling and staffing needs. P&L Formatting OBJECTIVE - To streamline formatting across the Brand A more consistent P&L format will allow for Baselines & Comparisons that will in turn allow for faster discussion & review of cost savings opportunities. We are working with Robert Duskin & Denny’s Inc to partner with the formatting and will go hand-inhand with the 2% margin opportunity realization. Contributor: Jeff Levy, Director, Operating Systems & Initiatives jlevy@dennys.com Glenn Beattie, Operations Co-Chairman glennbeattie@dennys.org 5 DFA Updates New Member in the DFA Sponsors’ Club DFA Operations Committee Special Report Good News from Ecolab Special report from an ‘Operations’ effort. Glenn Cox, Denny’s Inc, assisted by franchisees Sam Wilensky, Craig Herman and Bill Cox have renegotiated the new Ecolab chemical program for the next 3 years. The new contract has reduced your dish machine monthly lease expenses down to $0 for the first eighteen (18) months of the contract and in addition we now have a "Cost Guarantee" (based on unit sales) provision contained in the contract. The cost guarantee basically will rebate dollars, up to a certain amount to those restaurants that use more than the normal amount of dish machine detergent and specifically identified cleaning chemicals. In the effort to help this new “cost guarantee” process run as smooth as possible , Denny’s Corporate has agreed to furnish your quarterly sales information to Ecolab. Ecolab in turn will calculate the chemical use as a percentage of sales amount for each one of your restaurants. However, in order for the “cost guarantee” to be applied to your restaurants you must have completed the following two tasks: 1. Sign the new contract ~ New contract forms can be obtained by contacting Scott Meltzer with Ecolab Join with the DFA Board in ‘welcoming a new member’ to the DFA Sponsors’ Club. CTI Foods announced at the Allied Partner Summit meeting last month that they are joining Denny’s Franchisee Association as bronze annual sponsor. CTI is currently providing 100% of the soups and 70% of the beef hamburger meat to the Denny’s brand. CTI manufactures processed beef, pork, chicken, turkey, soups, sauces and tacos for packaged food manufacturers and foodservice chains in North America. Headquartered in Wilder, ID, CTI Foods is a culinarydriven company that offers a diverse range of custom food solutions to the foodservice industry, including raw and pre-cooked protein, soups and sauces and dehydrated beans. CTI Foods has seven state-of-the-art food processing facilities and has over 1,000 employees at its Idaho, California, Kentucky and Texas locations. Submitted: Fred Moye 972.804.9899 fmoye@ctifoods.com 2. Sign the “sales release” amendment in the new Ecolab contract ~ If you have already signed your new contract the “sales release” amendment can be obtained by contacting Scott Meltzer with Ecolab At the end of each quarter Ecolab will calculate your chemical spend as a percentage of sales if you have completed the two tasks mentioned above. If the restaurant has used more product than it should have, up to a specific amount you will receive a rebate check from Ecolab. This supplier agreement was negotiated in the effort to help franchisees cap their detergent / cleaning supplies cost. Suppliers and Franchisees working together for the benefit of both. Classically trained culinary and technical R & D professionals Ecolab contact: Scott Meltzer scott.meltzer@ecolab.com 678.921.6614. Suppliers and Franchisees working together. Testing, temperature controls & tracking provide safety assurances . Register at dennys.org, click this icon 6 Allied Partner Summit Event ~ Meetings, Meetings and more Meetings At this popular annual event there were 102 Allied Partner companies in attendance and each had a separate ‘face to face’ - ’top to top’ meeting. These meetings, (food sampling and showcases), networking and a golf tournament were compressed into 2 1/2 days of high energy. Purpose: The Allied Partner Members Summit is an exclusive event for current DFA Allied Partners! The purpose of the meeting is to share information, ideas and goals to build our Brand and discuss issues and initiatives that are pertinent to this group. Attendees: Participants at this meeting are supplier members to Denny’s restaurants, DFA Board of Directors, Denny’s Inc. Leadership and special franchisee owners. Thank you to all of Allied Partner Companies who invested their time and energy to share their products and services with us and our panelists: Denny’s Inc. Leadership, DFA Board and the following franchisees: Caleb Barber Nathan Barber Judy Barreras Cindy Conyers Lupita Corbell Craig Herman David Kahre Ray Kayati Doug Koch Kori Langford John Metz Bobby Naicker Holly Pietz Anthony Shorrosh Jack Thompson In the next few following pages we have shared comments, observations and candid photos of this meeting. “CTI Foods found the Allied Partners event to be a huge success. The format provided, allowed suppliers to have intimate conversations about our business plans and how strategic alliances can be built between our two companies. We feel this allows for a true partnership that leads to a “win win” for both companies. The interaction between the Franchisee’s and Denny’s Corporation is amazing. You can actually see the synergies between both groups working on parallel paths, to continue the promotion of the Denny’s brand. We are truly excited about our partnership and long term growth.”...Fred Moye, CTI Foods “The roundtable format really allowed us to get to know everyone and have a casual conversation. It really let us hone in on the major points” Winsol Chen, Bill.com “Best 25 minutes in the business” Ric Quinn, Clipper Corp. “This event is excellent because we get quality face time and the format is different than most event I attend.” Bryan Taylor, ConAgra Foods. “One of the best components is the interaction with the franchisee owners and the corporate folks.” Jim Isenhour, Tiger Natural Gas Save the date: 2015 Allied Partner Summit Meeting Picture 1/2 Page 8 Allied Partner Summit Event ~ Picture Page 9 Allied Partner Summit Event ~ Picture Page 10 Allied Partner Event ~ Participating Members Thank you to the following companies for your participation in the very successful 2014 Summit meeting. Please see the ‘buyers’ guide’ at dennys.org for listings of all our partners who handle our restaurant A-1 Restaurant Equipment EveryWare Global Inc. National Franchise Sales AdvancePierre Foods Fair Oaks Farms LLC Old Seville Expense Reduction American Tax Credits Group Fairmont Sign Company Pacific Premier Franchise Capital Atlantic Micro Systems First Franchise Capital Corp. Pactiv Barry Callebaut FM Facility Maintenance Patcraft Flooring Basic American Foods Franklin Machine Products Pay1 Payroll Services Bill.com Fontanini Meats Payless ShoeSource Brink's Inc. Food Service Concepts Pelican Group Bruce Foods Corp. Franchise Signs International Pinnacle Commercial Capital California Milk Advisory Board Fresh Mark Precision Services, Inc. CareerBuilder Frozsun Foods Public Imagery Cargill Genesis Baking Company RBS Citizens Restaurant Finance CF Sauer Foods GOJO Industries Red Mountain Lighting Cholula Food Company Haliburton International Foods Restaurant Technologies, Inc. Christopher's Hobart-Traulsen-Vulcan Rich Products Clipper Corporation Impulse Industries Roses Southwest Papers Coca-Cola Company Kemps S & D Coffee, Inc. CrewSafe Kerry Ingredients & Flavours Sara Lee Foodservice CTI Foods Kraft Foods Group Schreiber Foods, Inc. Daily's Premium Meats Lamb Weston / ConAgra Foods Service Ideas Dakota Provisions The Leavitt Group Shoes For Crews Dart Container Corporation Lewis, Thomason, King, et al Smithfield Farmland David Miller Holdings, LLC Libbey Stampede Meat Design Team Sign Company Little Insurance Group Superior Uniform Group Destiny Packaging Maniaci Insurance Services SureGrip Footwear Direct Capital Franchise Group MBM Corporation Success Unlimited Diversified Foods & Seasonings McCain Foods TCF Franchise Finance Domino Foods Inc. McClancy Tiger Natural Gas, Inc. Dominion Enterprises McIlhenny Company Trident Seafoods Corporation Dr Pepper Snapple Group Merric Tundra Restaurant Supply Duskin & Duskin CPAs Middleby Corp Ventura Foods Ecolab The Miniat Companies ENCOTECH Services, Inc. Mood Media National Entertainment Network News to Know ~ From Allied Partners Extender Legislation 2014 On April 1st (No April Fool’s Joke), the Senate Finance Committee publicly noted that they would begin working on the “Expiring Provisions Improvement Reform & Efficiency” Act, to be known as the “EXPIRE” Act. This is the legislation that would/will address certain provisions of the tax code that are near and dear to our hearts (and wallets, for that matter). The three major provisions being considered for extension are as follows: 1. Bonus Depreciation 2. Sec. 179 expensing of capital assets 3. Work Opportunity Tax Credit (WOTC) As of January 1, 2014, Bonus Depreciation completely sunsetted, as did the WOTC. Further, the ability to expense Sec. 179 property was reduced to $25,000 for a company that does not purchase more than $200,000 of capital assets in one year. If this legislation was to pass in its current form, it would restore the limits as they were in 2013. Thus, Bonus Depreciation would be 50% of the cost of “First Use” assets. Sec. 179 expensing would be increased to $500,000 on $2,000,000 of capital assets purchased in one year. Finally, WOTC would be calculated based on the same formulas we have used for the past seven years, including a 40% credit on the first $6,000 of wages paid to a qualifying individual. I will keep you apprised on what I consider to be very important legislation for our Brand and our industry. Submitted: Robert Duskin, CPA 602.248.8223 raduskin@duskincpas.com Register at Dennys.org, click this icon 12 News to Know ~ From Allied Partners Heritage Remodel Update! Heritage remodels are in full swing throughout the Denny’s system with many of the projects financed by Direct Capital. Denny’s has partnered with the direct lender to provide a franchise financing program specifically tailored for Denny’s franchisees growing their businesses. The program is simple, fast and cost effective, giving single and multi-unit operators the ability to access funds quickly and efficiently. Remodel projects financed through Direct Capital enjoy terms from 12-84 months, 100% financing for all costs associated with the project, and deferred payment options. Franchisees interested in securing up to $300,000 without a financial review for remodels and other projects, or larger amounts with an expedited financial review, can log in to the dedicated Denny’s financing portal at Dennys.LendEdge.com. There, they will be approved instantly, and appreciate a convenient electronic documentation process. *All financing subject to approval by Direct Capital. Contact: Matt Goyette 888.501.6846 or 603.433.9415 mgoyette@directcapital.com the requirements mandated under the ACA. Low- Cost Alternative Benefit Solution to the Affordable Care Act Your employees are your first customers. They are the first point of contact with your restaurant, so their satisfaction is also important to your business. Benefits also have a positive impact on one of the biggest employment-related issues facing restaurants: employee turnover. When turnover rates are high, it can also affect workers’ compensation rates, state unemployment rates, and overhead costs. High turnover also affects your employees, who may have to take additional time to train and establish a new workable relationship with the new hire. Thus, keeping employees happy and loyal to your restaurant is good for your business and your bottom line! The cost of creating the planned documents is relatively inexpensive, and the benefits are numerous. For one thing, you, as the employer, are complying with the ACA mandate. Your employees will appreciate you running their healthcare coverage plan through your payroll system. Your employees will save money on taxes. Your company will save money on taxes. Payroll will likely become more complicated for Denny’s Restaurants beginning next year as a result of the Affordable Care Act. Pay1 Payroll Services will be conducting a webinar in August exclusively for Denny’s Restaurants. For more information, please contact Yasmin Ismail, There are a variety of employee benefits that can be offered at lit- Yasmin@pay1online.com. tle cost, and even some at no cost, and in previous issues we have outlined several options. Another one of the low-cost soluAlongside payroll processing, Pay1 Payroll Services oftions Pay1 has found effective for restaurants is creating a taxfers Human Resources and Benefits Solutions for reseffective strategy to provide and implement the mandates of the taurants. Pay1 can help both with the administrative Affordable Care Act (ACA). Once employee coverage becomes a tasks of hiring employees, as well as provide resources requirement under the ACA, employers will be responsible for offor retaining, rewarding, and appreciating your workfering healthcare coverage. Many Denny’s restaurants will fall unforce. der this mandate. Pay1 has researched and reviewed several compliance strategies for Denny’s Restaurants, and one opportunity to save employer contributions to employee plans. One low-cost way to save is by creating a planned document within the business that allows employees to save on FICA taxes, and employers to save on their matching contributions. Run through your company’s payroll, employees and employers can save money on taxes while meeting 13 See what customized solutions we can offer for your restaurant: visit us at ww.Pay1online.com or call 1-888-700-Pay1 (7291). Submitted: Yasmin Ismail 404.919.1616 yasmin@pay1online.com News to Know ~ From Allied Partners Straight Facts About Low & No Calorie Sweeteners Red Mountain Lighting Opens East Coast Office Are your guests asking questions about low- and no-calorie sweeteners and health? Here are some straight facts that may enable you to respond with confidence. Red Mountain Lighting, a long time Allied Partner of the DFA announced today that it will be opening a new east coast sales office and distribution center in Orlando, FL. effective June 1, 2014. Company owners are expected to see this sales and distribution center fully operational by June 1st with inventory and energy managers ready to assist customers. Should Consumers Care About Low & No-Calorie Sweeteners? Preference for sweetness is innate among humans. But, as most health professionals would agree, managing this preference wisely is important. This expanded division of Red Mountain Lighting will be run and operated by founder Bruce Sweeny. Mr. Sweeny has over 20 years’ experience in the lighting and energy industry. When asked about this expansion, Mr. Sweeny stated, “I am extremely excited to announce this new branch for Red Mountain Lighting. This will give us an opportunity to better service our customers in a quicker fashion. As well, this will cut down freight costs to both the business and our customers.” All foods and drinks can fit into a healthy, active lifestyle that includes a sensible, balanced diet and regular physical activity. But for many, striking a healthy balance (managing both calories in and calories out) to maintain a healthy weight can be a challenge. Fortunately, this is where low- and no-calorie sweeteners can help. Most low- and no-calorie sweeteners are several hundred times sweeter than sugar, which means their sweet taste comes with few, if any, calories. It’s also good to know that the Academy of Nutrition and Dietetics has reviewed the research and concluded that lowand no-calorie sweeteners do not increase appetite or promote weight gain. The east coast division will immediately create new jobs with hopes to increase each year. Red Mountain Lighting’s home office will remain in Phoenix, AZ. however, this new east coast division will provide a direct cost savings to every customer east of the Mississippi river. Safety First Low and no-calorie sweeteners are safe. In fact, they are among the most studied food ingredients in the world and underwent extensive testing and safety evaluations before being permitted for use in foods and beverages. Experts ranging from the U.S. Food and Drug Administration (FDA), U.S. National Cancer Institute and others have found aspartame and other sweeteners do not cause cancer or other adverse health outcomes. About Red Mountain Lighting Red Mountain Lighting opened its doors in 1998 in Phoenix, AZ. RML is owned by Peter Barovich and Bruce Sweeny. RML has enjoyed 16 years as an independent company. Red Mountain Lighting will continue to uphold its promise to stimulate the local economy. Known for its green solutions through efficient lighting, the company also intends to maintain its commitment to environmentally friendly business practices. Submitted: Bruce Sweeny 480.325.8315 bulbs@redmtnlighting.com Specifics About Aspartame Because many of the low & no calorie beverages in Coca-Cola Company’s portfolio contain aspartame, your customers may appreciate knowing the facts about this commonly used sweetener: Totally Green in Mokena Joey Terrell, a past DFA Board member and a long time Denny’s franchisee has recently received word that their unit 6505 (in Mokena, Illinois) is now an officially LEED (Leadership in Energy and Environmental Design) certified unit. Developed by the U.S. Green Building Council (USGBC), LEED is intended to help building owners and operators be environmentally responsible and use resources efficiently. Aspartame does not increase hunger. Studies show that the impact of aspartame-sweetened drinks on appetite is the same as water. Aspartame does not increase intake of sweet foods or promote overeating. Aspartame’s safety is supported by more than 200 scientific studies. Aspartame never enters the bloodstream and thus cannot build up in body tissues. Upon digestion, aspartame is broken down into food components that are found naturally, and in much greater amounts, in everyday foods like chicken, milk and orange and tomato juices. Aspartame is approved for use in more than 100 countries. Aspartame does not raise blood glucose levels. People do not over consume aspartame. Studies show that aspartame intakes, even among the heaviest users, are far below the safety limits set by regulatory experts. Want to Know More? For more information and additional resources, visit beverageinstitute.org. The Coca-Cola Company Beverage Institute for Health & Wellness is part of our ongoing commitment to advance scientific knowledge, awareness and understanding of beverages. Submitted: Heather Trotter 404.676.4130 htrotter@coca-cola.com If you are considering updating and ‘greening’ your unit contact Joey Terrell and he will be happy to steer you in the right direction. Several of our Allied Partners are environmentally certified suppliers. Joey Terrell 708.478.6064 JoeTerrell@Comcast.net. 14 News to Know ~ From Allied Partners Coca-Cola Announcement Coca-Cola is making changes within our customer marketing organization to align our resources with the needs of our customers. With this, Abbe Kantor who is celebrating 25 years with Coke, will be transitioning off of our Denny’s team to work on other areas of the business. A big thank you to Abbe for her great work on Denny’s over the past 3 years! She will continue to work on the projects which are in progress as we transition. Dan Redler Dan Redler will join the Denny’s Coca-Cola Team in the role of Senior Customer Marketing Manager. Dan has over 24 years’ experience in brand, customer and consumer marketing. He has been with Coca-Cola for 13 years and during this time has worked across channels including FSR, QSR, Education, Military, Travel, Retail, and Cruise Lines to name a few. Needless to say, like Abbe, Dan has extensive knowledge of the Coca-Cola System, Brands, Packages, Equipment, Assets and New Innovation and he is in position to fully leverage our resources for Denny’s. In addition, Dan has a strong emphasis on strategy and long term planning. I know you all will enjoy working with Dan as much as we do. Dan has lived in Georgia for 23 years, he has a beautiful wife Dara, who also works at Coca-Cola, and he is the father of 3 boys. You can find Dan cheering for the Nebraska Corn Huskers or the Kansas Jay-Hawks when he’s not drinking an ice cold Coca-Cola. Thank you for welcoming Dan to the Denny’s team! 15 News to Know ~ From Allied Partners Hidden Costs ~ Workers Comp Claims As a business owner you are always aware of the hard cost of workers compensation insurance. However, there are hidden costs that are not so obvious. Over time, these costs can take their toll on a business. Most restaurant schedules already run lean and not too many businesses could afford to have a valued team member off the schedule due to an injury. This article discusses some of the hidden costs of workers compensation claims. Time is Money When an employee is injured in the workplace, there are a variety of responsibilities you must take care of that all require your time and attention. Immediately after an injury has occurred, you must investigate what caused the incident and identify what corrective action must be taken to ensure it doesn't occur again. In addition to filling out the paperwork necessary to process an injury, you must document your findings of the investigation, get witness statements (if applicable), and follow up on the care of the injured employee. After the cause of the injury is found, your options may include replacing a piece of equipment, changing a procedure, or even training or re-training employees on new procedures or on how to safely use new equipment. To Hire or Not to Hire If it is determined that your employee will be off your sched- ule for a period of time, you may have to decide if you will need to hire another person to cover the absent employee. There can be costs associated with advertising the position, not to mention the time taken to interview several candidates for the position. After a candidate is selected, a trainer will need to be assigned to oversee the training of the new employee in addition to completing their normal job tasks. Once the injured employee is cleared to return to work, what do you do with the person you hired to cover those shifts? Should you decide that you will not hire a new person to cover or replace the injured employee, you may incur overtime to pay for employees to work additional shifts or hours. Having people cover until the employee returns to work can cause undue stress to team members as they may not be used to working extra hours or handling other duties. This can often lead to compromising the level of service given to customers. Over the long run, inadequate service eventually results in diminished sales. Generally customers who receive substandard service do not say anything – they just do not return. Morale Issues When a restaurant is missing a valued team player, it can change the dynamics of a team. If the injured person was key in the leadership of your employees, your employees can feel the absence and deal with it in many ways. Sometimes it shows in producing sub-quality menu items, taking shortcuts to pick up the slack of the missing 16 News to Know ~ From Allied Partners person, developing bad habits, and experiencing undue stress. Overall productivity can be affected when a key person is missing from the team. This can happen whether or not you hire someone to take the injured employee's place. If not properly handled, a different type of morale issue can be occurring with the injured employee while recovering at home. They will be worried about many things, "How am I going to pay my bills? What about groceries and rent? Do I still have a job? Will they replace me with someone else? If I come back, will I still get the same hours that I had before I was injured?" Unfortunately, while recovering, the injured employee may get ideas from friends, family, or even television commercials that they might do well by suing the business. This alone can result in thousands of dollars in possible litigation. What can be done to minimize the damage from these and other effects of hidden costs? It would be simple to say "Just don't have injuries!" That, however, is not realistic. The following are a few suggestions to help minimize the hidden costs of workers compensation claims: Hire the right people: Hire the most qualified people for the job. When hiring, look for potential employees who are keenly aware of their surroundings and already prone to work in a safe manner. Cross-train your employees: It is business smart to cross train your employees in the event of the sudden loss of a team member or even to cover vacations and sick leave. Employ- ees often view learning duties outside of their primary job as adding value to their worth and an indication that they are trusted by management. Doing so will ensure that productivity and service will not be as affected when one of your team members is out, either due to injury or simply vacation time. Follow-up often with the injured employee: Show genuine concern and interest in how your employee’s recovery is going. Note when their medical appointments are scheduled so that you can call afterwards to ask how they are feeling, how they are progressing, and what the doctors are recommending. Try to belay any concerns they may have about losing their job and remind them that their only concern at this moment is to focus on getting well. Your premium rests on several variables, so develop an improving three-year history. The time to start is NOW! Reduce frequency and severity of claims by managing a clean and safe operation, training employees to respond to hazards immediately, and continuing ongoing safety training with the monthly safety calendar training. Make staying safe a part of your existing culture. Give it the same importance as service and food quality. Being safe is just good business! Charlie Page 770.734.1516 Charliep@lgaltanta.com 17 News to Know ~ Sponsors’ Spotlight Basic American Foods In 1933, brothers Jack and Bill Hume set up a modest dehydration processing plant in Vacaville, California, using a technology that was later applied to potatoes. This was the beginning of Basic American Foods. In the mid 1950s, Basic American Foods established a potato processing plant in Blackfoot, Idaho, where the first instant potato product that could be rehydrated with boiling water was developed. This led to a series of innovative potato products for the foodservice industry that includes the brands Potato Pearls®, Golden Grill®, Classic Casserole® and Savory Series™. As the company grew, additional plants were built in Idaho and Washington. In response to a customer need for labor saving quick-prep beans, Basic American Foods introduced Santiago® Refried Beans in 1986. The technology that created this authentic-tasting bean product is now being applied to Santiago® Black Beans and Santiago® Quick-Start® Chili. Today, Basic American Foods is led by Jack's sons, George and Jerry. With nearly 40 patents to its credit, Basic American Foods is an acknowledged leader in research and development, earning universal respect for innovation, quality and customer service. The company continues to grow, staying focused on its customers and looks to the future with confidence. Their convenient potato and bean products are made from 100% USA grown potatoes and beans. They are cooked, dried and packaged utilizing our proprietary technology and stringent quality specifications to lock in flavor and texture for that "from scratch" taste in every batch. Today, Basic American Foods supplies Denny’s Restaurants with Denny’s Hashbrown Potatoes, Denny's Chili Denny's Custom Mashed Potatoes. Submitted: Randy Young 402-210-7783 rayoung@baf.com These new sponsors are joining with the current members of the DFA Sponsors’ Club Albertville Quality Foods ConAgra / Lamb Weston MBM Basic American Dr Pepper McIlhenny Co Bruce Foods Corp Cargill Ecolab Fair Oaks Farms Natl Entertainment S & D Coffee, Inc Cholula Food Fontanini Meats Schreiber Foods Christopher's Inc FreshMark Travel Media Group Kemps Ventura Foods Coca-Cola Leavitt Insurance Group 18 Membership Register at Dennys.org, click this icon Please view and use all of your Allied Partner suppliers who have invested in the Brand. Their support enables the Denny’s franchisee free registration to the annual convention. http://www.dennys.org/APalpha/AAlliedPartnersDirectory.asp or Dennys.org and view ‘find suppliers’. 19 DFA Calendar Important: Do Not Miss The Free DFA Board of Director Meetings May 20 Conference Call Telephonic June 17 Conference Call Telephonic registrations per paid restaurant unit. To qualify for July 15 Conference Call Telephonic free registration: Aug 12 Conference Call Telephonic Sept 9-10 BOD Meeting Las Vegas, NV Oct 14 Conference Call Telephonic Nov 2 & 6 BOD Meeting Phoenix, AZ Dec 9 Conference Call Telephonic Franchisee Registration Opportunity! Franchisee Members still receive two (2) free badge Your 2014-2015 dues must be paid by Oct 1, 2014 for all your units according to the DFA bylaws and, You must register all your attendees for the con- Allied Partner Suppliers ~ Mark the Date vention by Sun, Sept. 14th. Deadline to Qualify: Sun, Sept. 14th As of Mon, Sept. 15th registration is as follows. Sept. 15-30: $150 Per Person Oct. Oct. 1-28: $300 Per Person 28: Online registration closes 2015 Allied Partner Summit Meeting Tuesday, April 28 ~ Thursday, April 30 Convention SCAM ALERT Exhibitors and Suppliers Denny’s Franchisees Denny’s Inc. Register at Dennys.org, click this icon The DFA does not use any third party agencies or bureaus for your convention housing. It has been brought to our attention that there are scammers calling and emailing prospective attendees, representing themselves as the DFA and Denny’s to ‘sell’ you hotel rooms at a lower rate. They do not represent the DFA, Denny’s or the Arizona Biltmore resort. If you have any questions or have used their service please contact the DFA office using info@dennys.org. 20
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