It Can Be Done Aslam Khan Leadership Strategies

“It Can Be Done” Aslam Khan Leadership Strategies University of Texas - Arlington August 13, 2014 1

Who I am q Giovanna Koning - Chief Financial Officer § § § 9 plus years in Public Accounting ( CPA) 15 plus years in restaurant finance Extensive knowledge in restaurant industry § Finance § Accounting § Human Resources § Information Technology § Acquisition Due Diligence 2

Summary o It is my privalage to speak on Aslam’s behalf o Present – Background o Business – Success o Leadership – Strategies o Success – Learning Objectives 3

Aslam Khan 4

Who is Aslam Khan? o Aslam Khan is a restaurant executive who rose from a team member washing dishes to the CEO of multi-unit company and is considered the turnaround artist in the industry. He joined Church's Chicken as a team member washing dishes earning a little more than $3 an hour; he then developed expertise in both operations and marketing. Khan now owns and operates more than 200 Church’s Chicken, Long John Silvers, A&W and Schlotszky’s franchises. He was named a "Hometown Hero" by Church's Chicken for his success and involvement in the community. He is credited with building business and developing effective teams to his “People First” philosophy 5

Cont. o If there is an individual that defines the American Dream it is Aslam Khan. Aslam came to the United States in 1987 from rural Pakistan with $20 in his pocket and started as a dishwasher earning $3 an hour in the fast food restaurant Church's Chicken. As the CEO of Falcon Holdings, he is the largest franchisee in the Church's Chicken system 25 years later. Aslam's personal background has led him to devote himself to helping others who are at a disadvantage by enabling them to value their own strengths and determination. 6

Cont. o By 1999, he was CEO and owner of 97 -restaurant enterprise which has now grown to more than 165 locations in 13 states. Under his leadership, his company has made drastic improvements in human resources, financial status and growth. He credits his exceptional track record of building business and developing effective teams to his "People First" philosophy. He is an active member of several trade associations including the IFA Board of Directors and has been a leader in helping to advance diversity in franchising. 7

Cont. o He has implemented many programs in his company to promote a diverse work force and helping employees purchase franchises and realize the American Dream of being a business owner. He is true example of someone who has taken advantage of the opportunities available through franchising, but more importantly, has given back to the franchise industry and the communities he operates in tenfold. 8

Background - Childhood o Born in Pakistan n Dirt Poor n Oldest of 10 Children n Lost his Mother at age 17 o Age 14 left home to go to school n Traveled 1 hour to school n Thru the elements and climate o First job in Pakistan – Tea Boy n Was able to work and then go to school 9

Background – Young Adult o Worked very Hard to Move Forward o Completed School o Successfully Attained Job n US Embassy n Worked as the Manager of Restaurant Club n Learned English and the Culture n Met Dignitaries n Decision to come to United States – Land 10 of opportunities

Background - Adult Came to this United States 1987 Arrived in Los Angles, California Expecting to obtain a Manager role Started as a dishwasher Moved quickly through the ranks of management o Started bottom up – worked thru all the ranks to arrive at the top o o o 11

Business Success o 1997 First Turnaround effort in California o 1999 Second Turnaround opportunity in Midwest § § § Strong people development skills Solid business acumen Strategic planner Analytical marketing expertise Extensive turnaround experience Visionary 12

Aslam Khan’s Mission Statement To provide operational excellence through welltrained individuals and outstanding service that provides high quality of product that is delivered to the customers. Manage by consent and empower individuals to make decisions that support and move the organization forward. 13

Aslam Khan’s Guiding Principles q “Inform, Influence and Engage” q This statement speaks volume of the approach and principles that apply to the organization and how the leadership provide direction and support q You need to inform individuals of where, how and what they are to do to obtain the best performance q Providing guidance to influence their decisions in everyday tasks and service to the customers q If you engage your employees and customers you will provide the direction to all succeed 14

Knowledge IT’S WHAT YOU DO WITH IT… n What’s involved… POS Technology, Back Office Systems, Above Store Reporting, Terminal Monitoring n Technology provides information… Humans put it in action n What do you do with oceans of information? Break it down to the lowest level to gain the best understanding of the business n Create meaningful management information 15

Dashboard Reporting for Key Performance Indicators o Create a dash board that is relevant to your organization: n Sales Comp and Customer Traffic Counts n Daily, Weekly and Periodical Sales comparison to previous year o Daily, Weekly Sales trend comparison to YTD and last period… and to last year’s trend for same time period n Cost of Goods monitoring o It is not just one percentage, it is about 100 s of items whose percentage must be broken down o Manage COGS Every Week, Every Day, Every Shift, Every Guest… n Labor Matrix comparisons o o Generate correct hourly matrix for your business Manage exceptions to matrix daily Inventory levels Cash short & over 16

Dashboard Reporting for Key Performance Indicators (Cont. ) o All of the above data should be: n n n Accurate Relevant Current Readily available Ranking o Absolute Key to All the Above: n TAKE ACTION… n It’s not about technology… It’s what you do with it!!! 17

Dashboard q Streamlined the flow of management reporting systems § § Leverage sophisticated management information systems to create change Daily Reporting sent via email to all operations and office individuals by 6: 00 am q Timely data distribution to the operation teams and training for full comprehension of information § § P & L compilation and distribution Manager awareness and understanding 18

Management Philosophy q Results driven incentives § Short-term operational-based incentives (excellent bonus program) § Focus on long-term wealth creation for stakeholders, management and the brand. 19

Management Philosophy (cont. ) q Support Organizations Culture and Mission § Focus on people development § Be the employer of choice § Create “open and honest” communication 20

Management Philosophy (cont. ) q Lead “by respect” to increase morale and retention § Operate a flat organization that is focused on creating superior operations § Invite communication at all levels to create cultural change with the organization § Create an environment that fosters loyalty through example and performance 21

Falcon Business Initiatives q Built budgets (bottom-up) to generate excitement and build buy-in § § Annual process begins with field operations Managers are involved at the ground level process then flows all the way up to corporate q Increased the frequency of internal operational assessments § § § Focus on training managers/director on acceptable standards Conduct audits of operations Develop actions plans for corrections 22

Falcon Business Initiatives (cont. ) q Continue and improve the crucial importance of proper scheduling with the base labor hours allowance § § Insure schedules are being approved and reviewed by the Market/Business Manager on weekly basis Post schedules in clear view in each restaurant q Recruit top caliber individuals § § Implement training programs to assist in hiring and attracting individuals Recruit individuals by attractive incentive program for increased earnings potential 23

Falcon Business Initiatives (cont. ) q Improve and expand on in-restaurant training § § Conduct training classes weekly and monthly on various critical areas of the operations such as hospitality, safety, cleanliness and operational excellence Certify training restaurants in each market along with certify managers q Initiate Sales and Speed of service contests § Ran contests on a daily, weekly and period basis to create competition among restaurants to do better and drive sales with improved customer service 24

Falcon Business Initiatives (cont. ) q Implemented weekly monitoring tools such as food cost and spending reports with ranking § § Create awareness of the key business drivers at the restaurant manager level for optimal performance Clearly post and communicate the performance of individual restaurants to the manager level for performance results q Completed a store by store assessment of strengths and weakness with a detailed action plan for correction and improvement § Created plan in conjunction with field personnel for buy-in and follow-through of execution of plans 25

Aslam’s Lessons on Success Tenacity Persistence Failure is not an option Used the resources to bring individuals to the level of success o People First o o 26

Lessons on Success (Cont. ) o Everyday we work with individuals of all colors and races it is important to me to make an impact in their lives. o We recently began to start partnerships in business with minority individuals that had the skills and passion to move themselves forward. I am personally funding these ventures to create the jobs and opportunities for these minority individuals. It means a lot to me to provide the opportunity to them that I had to work individually and alone after all someone gave me the opportunity. 27

Steps to Success Stay Relevant to Change (Are you relevant? ) Behave new way of thinking Be Transparent Clarify your Expectations (totally understand) Speak w/Confidence (Always know Your Subject) Attitude (Mind Set) Have Courage to test New Ideas Test Fast, Fail Fast and Adjust fast Take Risk – You can’t steal the 2 nd Base and Keep our foot on 1 st Base o Deliberate focus (Whatever you do or don’t do it at all) o o o o o 28

Steps to Success - Change o Change is hard because people overestimate. o What they have underestimate the value what they might gain. n n n Disrupt the Status Create Tension Challenge Support Offer help 29

Steps to Success Communication n Listen & Listen First n Learn n Build Relationship 30

Aslam’s Philosophy o The 9 most important words: “If it is to be, it's up to me” o The 8 most important words: “If not me, who? If not now, when” 31

Take Personal Accountability Aslam’s Approach o Control over your own destiny o Become an active contributor rather than a passive observer o Others look to you for leadership o Gain the reputation as a problem solver o Enhance your career opportunities o Enjoy the satisfaction that comes from getting things done. . . the power of positive doing o Experience less anger, frustration and helplessness - all leading to better physical health o Realize a positive spillover effect into your personal life at home 32

Closing Comments o Always fight for your Dreams o Never Give Up o Do you want to be Working Class Stiff or Entrepreneur Flex (Choice is yours) o If Aslam can do you it you can do it too…. . 33

Closing Comments (Cont. ) o It Can Be Done Really n You have to put your mind to n Hopefully I have provided teachings and lessons to achieve success n Hard work will pay off God Bless America!!! 34