How did you adapt your franchised restaurant locations during the global pandemic, and what lasting changes do you anticipate in the restaurant industry post-pandemic?

“Ch-ch-ch-ch-changes…” Forgetting about AI for a moment (if you can), this issue looks at how multi-unit restaurant franchisees adapted during Covid—and what lasting ch-ch-changes they see for the restaurant industry. For an “AI-scraped” view from across the Internet about which changes have become permanent, click here.

Franchisee Bytes this week: “How close are you to operations?”

Subscribe here.

How did you adapt your franchised restaurant locations during the global pandemic, and what lasting changes do you anticipate in the restaurant industry post-pandemic?

DAVID BLACKBURN

Company: CEO, Southern Rock Restaurants

Brands: McAlister’s Deli, 155 in 13 states

Years in franchising: 12

David Blackburn was named the 2022 Single-Brand Leadership MVP (Most Valuable Performer) for achieving brand leadership with one brand. He is McAlister’s largest franchisee, was GoTo’s (formerly Focus Brands) 2023 Developer of the Year, and has signed development deals for 69 more McAlister’s.

The entire industry had to learn to do more with less. Now this isn’t always sustainable, we all focused on adding staff and returning to former service levels, but we did learn that we could slightly restructure how we do things and perform now at our all-time highest satisfaction scores. The labor-hour savings have been reinvested in much higher wages that have made us more competitive to attract and retain our team members.

JOHN METZ

Company: CEO & Founder, RREMC Restaurants

Brands: 62 Denny’s, 5 Hurricane Grill & Wings, 2 Wahoo’s Fish Taco

Years in franchising: 22

John Metz is Past Chair of the Multi-Unit Franchising Conference and former franchisor of Hurricane Grill & Wings, which he sold to FAT Brands in 2018.

A little more than 4 years after the pandemic started, we are barely back to our pre-pandemic staffing levels at our restaurants. We’ve learned to live with less—both staff and customers—because of the pandemic. We’ve managed to make do, but full-service guests expect more.

The pandemic has forced us to be more system-oriented. I’m looking for ways to reduce labor using computers, automation, robotics, etc. So how did we adapt?

1. All our salaried managers had to do line positions—cook, clear, serve, etc.
2. We limited hours because of staffing shortages.
3. We paid a lot of overtime.
4. Our managers were not available to hire—they were cooking!—so we brought our recruiting and interviewing process into the home office. That’s one change I think we’re going to keep. I’d rather have the managers manage.
5. For HR, we went paperless, investing in a human capital management system from UKG. It handles wage rates, job codes, annual reviews, payroll, HR, etc. Recruitment, hiring, and onboarding all go into the management system, everything from being hired to being fired.
   Both 4 and 5 were unexpected, positive changes the pandemic forced us to do.
6. One more change is that we’re now keeping more careful track of all our equipment and maintenance—when we bought it, every time we fix it—through an equipment management system.

TOYA EVANS

Company: Co-owner, Healthy Living Ventures

Brands: 6 Tropical Smoothie Cafe, 3 Hand & Stone Massage and Facial Spa, 1 Via Skin Medical Spa

Years in franchising: 9

Toya Evans, the 2022 Spirit of Franchising MVP (Most Valuable Performer), was selected for her extraordinary and enduring performance, growth, and community giving. She was profiled in the Q3 issue of Multi-Unit Franchisee magazine.

During the pandemic we were under severe stress not knowing if our business would survive. When our governor announced that all restaurants were closed, we were devastated. Fortunately, we had two things working for us: 1) the governor clarified the statement and deemed us an essential business so we were able to open; and 2) my daughter had convinced us months earlier to join the digital age and join third-party platforms such as DoorDash, Uber Eats, and Grubhub. So while other QSRs were scrambling to navigate the new world order, we were ready. We just had to keep our PPE in stock.

HARSH GHAI

Company: CEO, Ghai Management Services

Units: 140 Burger King, 36 Taco Bell, 28 Popeyes

Years in franchising: 14

Our first reaction was to take care of our people and be sensitive to everyone’s needs. We implemented hazard pay for our employees for the first 3 months, and we didn’t hesitate to shut down dining rooms or install shields between customers and staff to protect them. Every day was a challenge, especially in the first 45 days. It was difficult to find employees last year, but open positions receive two to three times more applicants this year. The question now is how to find a way to pay those employees without hurting the bottom line.

BUT WAIT, THERE’S MORE! Earlier this year, we asked four 2024 restaurant MVPs, “What have been the biggest impacts of Covid-19 on your business?”

JIM BALIS

Company: CEO, Sizzling Platter

Brands: 345 Little Caesars, 105 Little Caesars Mexico, 139 Wingstop, 92 Jamba, 30 Dunkin’, 22 Jersey Mike’s Subs, 7 Sizzler, 5 Red Robin Gourmet Burgers, 2 Cinnabon

Years in franchising: 20

Jim Balis is the 2024 Multi-Brand Leadership MVP (Most Valuable Performer) for achieving brand leadership with multiple brands.

It certainly varies by brand. In Jamba, we saw a big uptick from the government subsidies, but when they expired, we tried to maintain the momentum. In Red Robin, it was trying to retain off-premises use cases that skyrocketed during Covid. For all brands, it has been managing the new people dynamic post-Covid.

KADIRALI “ALI” CHUNARA 

Company: President, Chunara Group of Companies

Brands: 62 Checkers & Rally’s, 50 Dunkin’, 10 TGI Fridays, 10 Take 5 Oil Change, 9 My Eyelab, 7 Popeyes,7 Blaze Pizza, 5 Kale Me Crazy, 4 BurgerFi, 3 Nothing Bundt Cakes, 2 Church’s Texas Chicken, 1 Jimmy John’s

Years in franchising: 35

Kadirali “Ali” Chunara is the 2024 Noble Cause MVP (Most Valuable Performer) for his organization’s passionate, unwavering support for those in need. His son, Shehzaan Chunara, responded on behalf of his father.

A lot of free money has given us a false sense of optimization surrounding some of our businesses.

AL BHAKTA 

Company: Founding Principal, CMG Companies 

Brands: 143 KFC, 101 Sonic Drive-In, 90 Rent-A-Center, 38 Ace Hardware, 35 KFC/Taco Bell, 22 Little Caesars, 2 Taco Bell

Years in franchising: 22

Al Bhakta is the 2024 Mega-Growth Leadership MVP (Most Valuable Performer) for achieving excellence in growth and expansion.

Initially, in March 2020, it was scary having the responsibility of 7,000 team members on our shoulders. We just put our heads down and focused on overcoming the challenges that came along. Having self-belief that together we could get through it proved to be very effective, and most of our businesses came out stronger as a result.

JOSEPH OMOBOGIE 

Company: President/Owner, Golden Management LLC

Brands: 14 Golden Chick, 11 Tropical Smoothie Cafe, 4 Marco’s Pizza, 2 Thai Express, 1 Captain D’s,

Years in franchising: 19

Joseph Omobogie is the 2024 American Dream MVP (Most Valuable Performer) for achieving remarkable success in his new country.

Employees—nobody wanted to work. I think everyone was just scared. It was something we hadn’t faced. We had to adjust, and our community still needed to be fed. In the beginning, some days we only had two or three people in the store, but they still showed up, adjusted to the safety guidelines, and were there.

FRANCHISEE BYTES

How close are you to operations?

As close as I can be. Without a good grip on operations, you can never be able to solve problems even if operational leadership is well placed to manage day-to-day. To grow, it is paramount to have an accurate pulse of current operations.
—Nadeem Saleem Bajwa, CEO, Bajco Group, 207 Papa Johns

I’m very close to our COO, and he keeps me in the loop on what is going on in our restaurants operationally. All three founders started working inside our Little Caesars, and we have never forgotten the importance of running great restaurants. Michael Trifari’s views are very in line with that, and under his leadership as president and COO we have continued to raise the bar.
—Irfaan Lalani, CEO/Co-Founder, Vibe Restaurants, 76 Little Caesars, 60 Wingstop, 3 Whataburger

While I’m not in the store every day, I consult with my chief of operations several times during the day to ensure that he, the general managers, and my marketing manager have what they need to operate successfully.
—Stephanie Moseley, President, Pisa Pie Enterprises, 6 Marco’s Pizza

Very close. Some of the best ideas come from being inside the four walls, directly interacting with the day-to-day operations.
—Keith Johnson, COO/Franchisee, Amazing Food Concepts, 20 Qdoba Mexican Eats, 15 Captain D’s, 1 Epic Wings

You will definitely find me directing traffic at new store openings. On any given day, you can find me pulling shots of espresso at 7 Brew, making a Double Steakburger or Turtle Sundae at Freddy’s, or tidying up around the stores. I have to pull myself away because I love the operations and could do it every minute of the day.
—Alex Carney, Vice President/Franchisee, TR Hospitality Group, 11 Freddy’s Frozen Custard & Steakburgers, three 7 Brew Drive-thru Coffee

Very close. We meet with our operations teams multiple times a week and spend considerable time in the stores. Managing a business from an ivory tower through spreadsheets is a recipe for failure.
—Mike James, Founder, Managing Partner, Guernsey Holdings, 122 Sonics, 20 Zaxby’s, 3 Take 5 Oil Changes, and a 53-unit development agreement with 7 Brew Drive-thru Coffee

I speak to my brother, who is my VP of operations, daily. I check the bank accounts and company sales and labor each day, and I visit stores weekly.
—Bill Aseere, CEO, Space Cowboys Restaurant Group, 17 Donatos Pizza, 3 Guthrie’s Chicken, 2 Whit’s Frozen Custard

Very, very, very close. I speak to my chief operating officer probably three to four times a day. I am in-market in both brands several times during the month as well. Without operations you have nothing, so if you’re not involved your business is at risk.
—Randy Pianin, CEO, Royal Restaurant Group, 61 Burger King, 4 Potbelly

Our team remains heavily involved in day-to-day operations of our locations. While I cannot be onsite at every location each week, we continually are in contact with store leaders to collect updates. I personally carve time into my schedule to visit stores in my area on a frequent basis.
—Phillip Scotton, COO, Primo Partners, 23 Ben & Jerry’s, 2 Starbucks