1. “Professionals from Wisconsin to Florida”
Chikol’s
experience
in
the
field
of
“QSR”
National
Chain
Restaurants
is
derived
as
owners
and
operators
of
one
of
the
largest
“QSR”
(Quick
Service
Restaurant)
franchise
in
the
country.
We
can
be
of
assistance
to
you
within
this
industry
and
wanted
to
provide
some
additional
background
that
time
sometimes
does
not
permit.
Background:
• Chikol
Partner
owned
and
operated
the
Franchisor
second
franchise
in
the
nation.
• The
franchise
was
the
second
largest
in
units
and
sales
before
they
exited
the
restaurant
business
• Their
markets
included
Ohio,
Great
Buffalo
New
York
and
Orlando,
Florida
• Over
the
course
of
20
years,
they
built
and
operated
over
100
units.
He
exited
the
business
in
1986,
with
86
operating
units
doing
approximately
$70MM
in
annualized
sales
Accomplishments:
• First
with
their
restaurant
in
a
college
student
union
• First
with
their
restaurant
in
a
shopping
mall
food
court
• First
market
to
introduced
late
night
drive
thru
• Highest
average
drive
through
window
volume
as
a
percent
of
sales
• Organized
advertising
co-­‐op
in
all
markets
in
which
we
had
units,
where
every
franchisee
in
the
ADI
-­‐
pooled
their
marketing
funds
to
jointly
purchase
TV
and
Radio
advertising
• The
Cleveland
ADI
budget
was
over
$2MM
per
year,
marketing
co-­‐ops
became
mandatory
with
other
franchisees
over
time.
• Conducted
numerous
cross
marketing
events
with
local
charities
involving
local
TV,
Radio
and
Newspaper
to
promote
the
event
as
public
service
announcements.
• Was
a
major
test
site
for
the
Franchisor
on
new
product
introductions.
• Served
on
the
national
advertising
committee
for
15
years.
• Developed
in
house
training
school
for
managers,
which
the
Franchisor
certified.
• We
had
the
only
certified
training
school
at
the
time
for
managers
• Reduce
manger
turn
over
to
less
than
15%
from
over
80%
annually
with
training
and
goal
setting
of
metrics
• Won
several
marketing
awards
from
suppliers
including
PepsiCo.
• Awarded
from
Franchisor
for
“self-­‐innovation”
that
was
promoted
to
other
franchisees.
One
example
was
the
placement
of
banners
on
the
back
of
the
units
visible
from
the
pickup
window
order
station.
The
result
was
sales
of

2. “Professionals from Wisconsin to Florida”
one-­‐liter
soft
drinks
tripled
and
total
soft
drink
sales
as
a
%
of
customer
count
increased.
(Soft
drinks
being
the
most
profitable
product
sold
at
the
time).
• Established
an
in
store
management
by
objective
training
program
for
all
employees.
Each
store
turned
in
a
weekly
plan
for
their
unit
listing.
a. Each
training
objective
had
to
identify
the
task
to
be
trained,
who
was
to
do
the
training
and
which
employee
was
to
be
trained
each
shift
b. Written
training
procedures
were
provided
by
our
training
department
c. Area
to
be
trained
each
week
include:
1. One
service
objective
such
as
suggestions
on
promoting
items
like
large
soft
drinks
(upsell)
2. One
product
quality
issue
like
batch
right-­‐sizing
of
french
fries
dropped
to
ensure
hot
fries
on
each
order
reducing
waste
(part
of
shrink)
3. One
foot
cost
item
such
as
how
to
“brick”
soft
drink
syrup
(adjust
sugar
content-­‐
which
has
flavor
and
cost
outcome)
or
portion
size
of
french
fries
to
package
size.
4. One
cleaning
operation
such
trash
cans
or
lighting
d. Overall
food
cost
decreased
by
2%
of
revenue
in
addition
to
a
positive
effect
on
customer
satisfaction.
• Arranged
for
funding
for
land,
building
and
equipment.
This
was
done
by
a
combination
of
bank
financing,
equipment
leasing
and
using
investors
to
build
and
“lease
back”
real
estate.
The
average
building
lease
was
at
a
fixed
dollar
amount
for
20
years
or
5%
of
annual
revenue.
Most
leases
contained
two,
five-­‐
year
renewal
options.
• Built
well
over
75
units
from
greenfield
at
a
cost
averaging
$600,000
each
Hopefully
some
of
these
bullet
points
projected
our
knowledge
of
not
only
the
operations
of
the
business
sector,
but
the
financial
models
used
during
ownership
as
well.
David
A.
Kebrdle
–
Partner
www.CHIKOL.com
Davidkebrdle@chikol.com