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May 27, 2021

JIB Managment Talks Nice About Franchisees

Jack in the Box Celebrates 70 Years

Notice in these discussions how Jack in the Box management values their franchisees. Well, value might be a strong word but they certainly are concerned.

That's because the franchisees spent all of 2019 calling for the ouster of the CEO, who "retired" in December of that year.This new team has been on the job for less than a year and they apparently know who carries the big stick.

May 25, 2021

Owner to Owner

Enough copies of this came through by E-mail and as anonymous comments that I know it's legit. And we got many anonymous comments about the content.

We are back in the Headlines… 

I understand the challenges of servant Leadership, but I cannot stand silent while the process for which I and many others worked to establish is undermined.  We find ourselves in an environment that not only has degraded our relationship with the Company but is stifling dialogue and input from O/O.  

Do you know what made this company successful?  “We had principles when we were poor.”  A quote Ray Kroc often employed.  But even more powerful when offered to a McDonald’s manager in the Fairmont hotel in 1974.  The theme that year “Nothing recedes like success”. 

The recent news reports of a threatened lawsuit over the Tech Fee payments and encouragement to withhold support for the Board of Directors are the latest in a pattern of Leadership tactics that are dividing our brand and damaging the relationship with our Franchisor. 

The irony is not lost as these same leaders opine for the good old days and champion a culture of partnership and collaboration, paying homage to the Three-Legged stool, McFamily and personal access to corporate leaders.  

Demagoguing these principles is undermining our relationship and our ability to have honest and open dialogue.  Conversations are one way. Trust in the integrity of the process is undermined.  

Picking a fight with the Board of Directors doesn’t seem like the way to get their support. 

The “fight over Tech Fees” is a twisted attempt to embarrass the company and to avoid paying fees based on their billing mistake.  An audit is in process, but a personal review of P&L’s show less was paid during 2017 than was due then or in the previous year.  The Tech-board and Leadership had been briefed on the issue early on and then disavowed any knowledge when it became public. 

Integrity - “person of integrity displays a principled dedication to values and beliefs. They always seek to reflet ethical standards and do the right thing regardless of the circumstances.” 

Our integrity is at stake here. Do we take advantage, or do we do what is right?  

The Company made a mistake, should we take advantage of that, when we owe the money? Do you believe the company would go to these lengths if they weren’t obligated as a part of their fiduciary duty? The integrity of the company was staked on requesting this payment arrearage collection.  Ultimately the challenge to their integrity by leadership left no room for negotiation. 

The claims of 75% or 90% of Operator Support are statistical magic tricks.  75% of 225 respondents is only 168 out of 2100 Franchisees. The real damage is the misleading headlines and false claims of support marginalize the voice of the average Owner Operator.  

It further strains the credibility of this “fight” when the Leaders managed to get a carve out that exempts this arrearage from SBO’s to their benefit before the announcement was made. 

This is politics not leadership.  I have served with many great operators in leadership and on teams because collaboration improves our system. The Goal was always solutions that enable success for all legs of the stool. Our Operator Leadership organizations exercise influence not authority. The ability to influence has been powerful but that power is being squandered. 

As Franchisees we understand that the Franchisor has rules and policies that are integral to the business. We eagerly invest and vie for expansion.  Ray and Fred understood that franchisees engagement would benefit the brand. But make no mistake… they made the rules. 

What is the incentive for the Corporation to engage in collaboration when a political or legal battle hangs over the process?  If our influence is only to be exercised in the press or a courtroom the secret sauce of our business culture will be lost.  We lose and so does McDonald’s, falling back on our franchise agreements misses opportunities to partner for success. 

The Company contributed $100 million to launch Travis Scott and the celebrity trays.  Billions have been co-invested by the Company and Owner Operators in brand revitalization and partnering programs that our competitors’ envy and don’t even come close to emulating.  All a result of partnership and collaboration.  Take a look at their UFOC’s not a deal I want. 

Our success this year is unprecedented.  While other restauranters are fighting for survival our Leaders are fighting with the Company and throwing shade on our Brand. 

I will continue to work to influence our Franchisor to adopt policies that will benefit all legs of the stool.  I will do so with Integrity and adherence to the principles and culture that built this great Brand. 

Don’t be fooled into believing that your opinion is in the minority  Take a stand against these destructive tactics and encourage our leadership to get back to the business of collaboration.  

We have urgent and real issues that need the Corporation and Owner Operators working together to solve.  

“Nothing recedes like success” . 

.



 

May 2, 2021

Suicide By Politics Cuts Both Ways

We've often discussed the brand damage done by getting a company involved in politics. We've primarily been critical of liberal corporate CEOs who want their brand to be "Woke". But it's not just liberals who make this mistake. Case in point: the "My Pillow Guy", one Mike Lindell.

Don't jump to conclusions, I don't much like this guy. I think he's a wannabe and a hanger-on and those who get close to him will end up embarrassed. No matter how much he continues to spend on advertising a certain percentage of the population will decline to buy his bedding products because they are aware of his political activities.

But, now that I've jumped ugly on Lindell, I'll come to his defense. He's likely doing damage to a company that he built and (as far as we know) he owns 100%. He will be the sole victim of his political missteps.

That's far different than an accidental CEO who wanders in off the street, rides around in corporate limousines for a few years, and unexpectedly ends up in control of the entire brand. In other words, if you built it, you have a right to burn it down. If you're just a temporary caretaker of other's decades of hard work you need to proceed with caution.