4th Quarter, zooo

lies in our people KRYSTAL COWORKERS SHARE THEIR STORIES Krystal People: Our Most Valuable Asset by Roger Rendin, vice president of Human Resources s you will observe in this edition of the Gazer, we have beaten all the largest have dedicated a good deal of space and time to companies in the United Ahonor our most valuable asset, the people that States! make up the Krystal community. I hope that as you read While these statistics are this magazine, you gain a sense of pride in who we are a source of pride, they don't and what we have accomplished. touch on the many accom­ The people of Krystal have built a great brand and a plishments of the Krystal great company in the past 68 years. That fact is obvious family and the uniqueness to anyone who has visited us. Not everyone is aware, of our company. Our educa­ however, of the truly outstanding employees that we all tional achievements include Ph.D. and master's degrees, work with side by side every day. This issue will tell you but we have many, many individuals who have used the more about whom we are and introduce you to some of Krystal experience to be their education beyond or in the members of our team. place of formal education. Most important of all is that Who are the people of Krystal? There are more than they are still learning. We have Krystal people who have 10,000 of us who make up The Krystal Company, and flown F-14s, been shot in Vietnam, played professional about another 5,000 people in our franchise community. sports and run for elected office. We also have Krystal We are one of the most diverse companies in America, people who have raised families, gone to night school and with more than 63 percent female employees and more given of their personal time to charities. It is easy to be a than 69 percent of our employees representing minority fan of Krystal people. groups. Our management groups are more than 55 per­ As you can see, there are a number of impressive indi­ cent female and more than 51 percent minority. Recently viduals who make up the Krystal team. Many of these Fortune magazine named the 50 best companies for people have answered the question, "Can any one person minorities. Krystal is not yet in the "Fortune 1000", so we really make a difference?" The people of Krystal are leav­ were not included in the survey. However, we would have ing their footprints on their jobs, their families and their ranked number one in percent employment of minorities communities, day in and day out. We are a better compa­ in management and total workforce. We literally would ny because of them. In This Issue Krystal People: Our Most Valuable Asset by Roger Rendin 1 inf.ljJ'.rJllirH 4th Quarter,IOOO~ On the Road to Success by James F. Exum Jr. 1 The Power Lies in Our People: Stories of Krystal Employees 4-n Krystal of the Year Awards Announced Soon n Promotion from Within: Jeff Krause Named Northern Regional Director The Krystal Gazer is published by 1? McKinney S Silver Named New Ad Agency The Krystal Company for employees and franchisees. 14 Krystal Welcomes Two New franchisees 15 Franchisee of the Tear Named March 7 15 Please address all correspondence to: The Three R's of Krystal: Recruitment, Retention & Referral 16 Krystal Gazer Editor ©11 the ClOCk ...a section specially for hourly employees Communications Department lki The Krystal Building Criss-Cross Method Key to Loading New Plastic Bags u One Union Square The Coca-Cola Center: Soft Cup Set Shift V Chattanooga, TN 37402 ^rd Quarter 1000 Standards Scores u BMT Program Revamped lb Restaurant Openings ib Campaign 2000 Comes to Krystal Aviation 17 Deborah Luehrs Editor/Designer Safety Seconds-. A Good Defense is the Best Offense by Gregg Whalen 28 Five Directors Join Home Office Staff V Modern Menuboards: New Design Often Ultimate in Style and Flexibility V Great Crew: Part

any of you are blessed with what is known as a having to work and wanting to work. We want great crew. Poor or inexperienced management people who want to work in your restaurant. Mrecognize a restaurant with a great crew, but often We are in the people business. It is impossible to be do not know how to create one in their own restaurants. successful in this business if you do not like people. A Many of these managers will attribute a great crew to luck crew person who values people is courteous and under­ or just good fortune. Many will say that a great crew can standing toward customers and his team members. The only come from a great neighborhood. If these manage­ benefits of this kind of crew are numerous. This is one of ment persons are themselves fortunate, they will learn those things that affects everyone involved positively. This that a great crew only comes from management that has crew smiles and tries to help each other. They create a a plan and the desire to create an environment that positive work atmosphere. Customers notice the courtesy attracts great people. Let's explore many of the different and feel welcome. The crew themselves work less, since actions that make a great crew possible. everyone is pulling together. The management can coach First, we must be honest with ourselves. Nearly all and council newer crewmembers, and since turnover is restaurants have a large turnover percentage. If that annu­ lower, they will spend less time interviewing and more al turnover rate is 300 percent, that means that the entire time training. crew has be replaced three times during the year. To have You might say, "How do I find these people?" First, be the people to have that kind of turnover is proof that advised that they are not going to walk through your door. there are plenty of people to work. In other words, we do They are not likely to respond to your sign in the window. not have a problem The crew we want has finding people; we to be recruited. They have a problem must be sought out retaining people. We want to hire successful people. by management. Too Therefore, how can many managers think we retain the people that recruiting is put­ we hire? Retention We must go get them. ting up a sign. This starts with hiring the ______usually results in the right person from the manager hiring the start. The first step to unemployed. In most hiring the right person is to decide what attributes we cases, the employed are out of work for a reason. In this want our people to have. Let's discuss them. economic environment, that reason is usually not good. • We want our people to look neat and be clean. We want to hire successful people. We must go get • We want them to be excited about working. them. Churches, clubs and other organizations are the • We want them to like people. best places to start. Any group that is involved with peo­ • We want them to be honest. ple is a great source for quality employees. Talk with the • These people in general wear clean neat clothes. leaders of these kinds of organizations in your community. The dress code is not often discussed since these Most are all too willing to help someone they know. people would not think of coming to work any And don't forget, your own successful crewmembers are other way. your best recruiters. In most cases, no one will recom­ • They have a smile on their face or are easily mend someone to work with them that they know to be made to smile with a nice comment. lazy or a poor worker. • They want to work with you. Do not confuse this Once you acquire a strong crew person, you must make with having to work. With few exceptions, we all every effort to retain them. We will discuss retention in have to work. There is a major difference in detail next quarter in part II.

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lies in our people Krystal Kareer$: Two women make Krystal a lifetime employer PEGGY MASSEHGILL: 42 yean with Krystal As Peggy Massengill prepares to retire from The Krystal Company in January, she can't help but become nostalgic about her first experi­ ences with the company. "I was working at a dime store downtown when a girl I had worked with before came down and showed me her paycheck from Krystal," said the Q.S.C. specialist from the Knoxville #5 Krystal on Magnolia in Knoxville, Tenn. "I said, 'Wow! That's a lot!' I came and interviewed on Tuesday, got the call on Wednesday and started on Thursday." Massengill has seen many changes during her tenure at Krystal. "When I started, Krystals were a dime and we'd have sales where they were five for a quarter," she said. "We had our own bakeries for a time, made chili from scratch and served meals on china." But while Krystal changed with the times, Massengill never gave more than a minute's thought to changing jobs with them. "I felt like I had found my home with Krystal. I always thought I'd stay here until I retired," she said. That premonition has come true. "Everybody tells me I'm going to be bored, but I've been working since I was 15. Surely I won't be bored after all these years — I'm looking forward to the rest!" she laughed. Massengill KNOXVILLE #5 plans to travel with her husband after she retires; but you can bet that you'll still see her at the Krystal sometimes. "My husband has joked with j AGE: 62 me that I'll have to go out there once a week to see how they're doing," she said. HIRE DATE: 9/24/58 Massengill's retirement will affect customers and employees alike, said Dennis Jones, general manager of the restaurant. "I've got regulars that will IN HER WORDS: ask, "Who's cooking this morning?' and if I don't say Peggy, they look at me 'I ALWAYS FELT KRYSTAL WAS funny" he said. "Everyone looks up to her and is going to miss her when MY HOME. THEY COULDN'T RUN she's gone." ME AWAY." The

lies in our people Is 40 years a long time to work for one company? Not when the company is Krystal, according to one Q.S.C. specialist and one assistant manager. These two employees hold the titles for the longest hourly and management careers with Krystal

EMMA GRIGLEY: 41 Years with Krystal Emma Grigley walked through the doors of a Krystal restau­ rant at 23 years old ready to work; at 64 years old, she still is. Grigley, an assistant manager at the Macon #8 Krystal on Bloomfield Road in Macon, Ga., says she did not have plans to make a career with Krystal when she applied for the job 41 years ago. "I was just looking to get a job and work," she said. But her loyalty to Krystal has grown to a point that she cannot imagine being anywhere else. "I've been here so long, it seems like home. When you're not here, you wonder what's going on," she said. Grigley's formula for success has focused around attitude, TITLE: ASSISTANT attitude, attitude. "It's a good place And while being a mother to to work, and it's what you make it," four children and a grandmother MANAGER to 13 can be a full-time job, she said. "When you come here, you RESTAURANT: MACON #8 can't come with the attitude that you Grigley says she hasn't decided know it all. As long as I've been here, when to retire yet. "I'm just loyal to Krystal," she said. "I enjoy I don't know it all. I'm still learning AGE: 64 something new every day." working with all of my people." That attitude makes Grigley a natu­ HIRE DATE: 3/2/59 ral to manage her employees, espe­ cially teenagers, said Linda Mitchell, IN HER WORDS: district supervisor. "She focuses on IT'S A GOOD PLACE TO WORK, people, inside and outside Krystal. AND IT'S WHAT YOU MAKE IT. Through the worst crisis, she comes YOU'VE GOT TO GET IN THERE out smiling," Mitchell said. AND GET THE JOB DONE." The

lies in our people Thp (nirit nf Family- Ro(lneyBrelan(l ^mthe ^°^ami|y IIIC 3|lll li U| lOlllliy. to Children with Disabilities odney Breland is an award- Rwinnin g dad. Currently parents of eight chil­ dren — two biological sons, three adopted children and three foster children — Breland and his wife Johnna have been named the 2000 National Foster Parents of the Year. This is the first time the National Foster Parents Association's high­ est honor has been awarded to a family from . Breland, the general manager of the Decatur # 1 Krystal on Sixth Avenue in Decatur, Ala., has cared for more than 20 children in the 11 years he and his wife have Above, the Breland family include!, left to right, biological son Andrew, 13; adopted son Nigel, 7; adopted daughter Beverly, 11; foster daughter Aimee, 5, been foster parents. All of their in the process of being adopted by the Brelands; Johnna Breland; long-term foster son Bobby, sitting in a wheelchair, 8; Rodney Breland; adopted foster children are medically frag­ daughter Chanel, ]; and biological son Michell, 15. The Breland's long-term foster son (hristin, 6, is not pictured. ile, meaning they have serious medical conditions including heart but others they have chosen to adopt permanently. "Most defects, problems associated with cocaine and crack of the kids have somewhere to go, so we're keeping them addiction, cerebral palsy, the effects of fetal alcohol syn­ for a short time," he said. "The one's we've adopted are drome and developmental delays. But after more than a they ones that have major problems in their families, and decade, the Brelands have become used to dealing with there's no way they are going back." The Brelands are in the effects of these disabilities. "The very first child we the process of adopting a fourth child, Aimee. Aimee lives took had heart problems," Breland said. "We handled it with the family as a foster child, is three years old and has fine, and ever since then, we've taken medically fragile been diagnosed with fetal alcohol effect. The two other children. foster children, Christin, 6, and Bobby, 8, are long-term "We just started doing it; one kid became two kids," he foster children, meaning they will stay with the Brelands said. "Basically, when my kids got big enough to get out of permanently. the crib, we kept the crib." The challenges of tending to eight children — especially Caretaking for their brood means feeding some through those with tubes, constant trips to the doctor and handling the emo­ severe dis­ .... ••••'•RODNEY BRELAND tional and physical effects of serious illnesses, but the abilities — Brelands maintain that their family is just like any other — are consider­ 1 TITLE: GENERAL just bigger than most. "We do everything other families able, but MANAGER do," Breland said. The family regularly goes out to eat, Breland sim­ attends church and is involved in music and other activi­ ply sees this RESTAURANT: DECATUR # 1 ties. And each of the children attend school in regular CO as his family's • ALABAMA classrooms. mission. Mrs. Breland, very active in several state and local fos­ b "These kids AGE: 41 ter parent and disability advocacy organizations, learned have to have g __. the rewards of foster parenting from her parents, who somewhere HIRE DATE: 10/26/92 took care of children until their adoptions were final. They to stay," he :__ also adopted Mrs. Breland's brother, originally a foster said. "We're V IN HIS WORDS: child in their home. doing it for ZD "WE'RE DOING IT FOR THE Many of the 20 children the Brelands have cared for them." KIDS." over the years stay 30, 60 or 90 days in their household, a b The [3__-R- lies in our people Ann James: The Will to Live

Ann James learned important lessons about life, love loss of her mother and husband were hard on her, the and loss in 2000. support she received from friends and family — including After losing both her husband and mother this year, the her Krystal family — helped her through. "When I looked general manager of the Augusta #5 Krystal on Peach up [at my mother's funeral], what did I see but the Krystal Orchard Road in Augusta, Ga., was diagnosed with breast family from ; I was ecstatic," she said. cancer. But the diagnosis, chemotherapy and a mastecto­ But her challenges did not stop there. After recuperat­ my (surgical removal of a breast to remove diseased tis­ ing from her surgery, James had to begin chemotherapy sue) have not left her down; in fact, they have served as a treatments to try to shrink the cancer. "I started chemo reminder to appre­ on my husband's ciate life every day. birthday," she said. James's story "I just knew I was begins on the day going to die; I had after Christmas in lost so much 1999. "I was laying weight, and I was a in bed and I felt a nervous wreck." big lump in my Every Friday she breast," she said. took her treat­ An appointment ments, which make with her doctor on most cancer Jan. 5, 2000 — patients very sick. exactly one year "Through it all, I after her husband's just lay there and death — confirmed cried and prayed." her fears: she had After nine cancer. treatments, James After discussing is taking a break options with her from chemo, but the cancer is still physician, James Senior District Supervisor Leonard Evans holds Ann James' award at the iqqq Krystal of the fear Banquet, as James was very sick from her there. And while decided to have a chemotherapy treatments. Pictured left to right are Phil Sanford, chairman and CEO; Marian Reed, Southern Regional Director; James; mastectomy to Evans; and James f. Exum Jr., president and (00. she has lost her remove her cancer­ hair in addition to ous breast. During this time her mother was sick, too; in her breast and 16 lymph nodes, she has not lost her posi­ fact, she and tive spirit. Returning to work in March has been a large her mother part of keeping her spirits up. "I see my customers. I talk had surgery to them. And I enjoy it. I do what I can to make them feel on the same better. I'm go glad I've treated my people right, because day "They it's so important. It's sad that it takes something so bad wheeled me to make you realize how important people are," she said. AUGUSTA #5 up to see her Soon after her return to work in March, James was rec­ ognized at the Krystal of the Year banquet in GEORGIA after her sur­ gery, and that Chattanooga. She won a second place award for her 45 was the last restaurant's performance in 1999, but the evening was time I saw my tempered by her health. "I was one sick somethin' at that 12/18/77 mother Krystal of the Year banquet, but everyone was so nice," alive," James she said. "I'm just so blessed to be working for a company IN HER WORDS: said. Her that cares about its people." "I'M JUST SO BLESSED TO BE mother WORKING FOR A COMPANY THAT passed away CARES ABOUT ITS PEOPLE." Feb. 7. While the See JAMES, Page ^o

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lies in our people Naser Fazlullah Weds Bangladeshi Following Tradition: Bride in Marriage Common to Culture

aser Fazlullah met the girl of low the tradi­ his dreams, got to know her tional cus­ N and got married — but not in tom. "When that order. guys get mar­ Fazlullah, district supervisor of the ried, they Memphis North district in Memphis, basically Tenn., wed recently through a mar­ know this is riage arranged by his parents and the my wife, this family of his new bride, Shila. Both is my life, this born and raised in Bangladesh, it is is my future," common in the couple's culture for he said. marriages to be arranged by families When a to ensure good matches for their chil­ child reaches dren. marrying age, Parents look for a variety of factors Bangladeshi in a spouse for their child, including parents begin education, religion, family values and searching for Naser fazlullah and his new wife, Shila, were married Jan. v\ in a traditional Bangladeshi ceremony. yes, even good looks. While Western an appropri­ definitely left to the man and woman. culture may find this practice unusu­ ate spouse through word of mouth, "It took 10 days for us to decide. By al, Fazlullah says more than 90 per­ or they may use a professional then, we had both decided we were cent of the marriages are arranged in matchmaker, Fazlullah said. His par­ right for each other," he said. his country, and the strong commit­ ents began sending photos of avail­ On Jan. 19, the couple tied the ment to family values contributes to able women to him in 1998. "No knot during a ceremony in the low 1.5 percent divorce rate. telling how many girls have my pic­ Bangladesh. And while Fazlullah was "My parents were married through ture!" he joked during a recent tele­ able to spend two days honeymoon­ an arranged marriage, and so was phone interview. "I looked at the pho­ ing with his new bride, he then had to most of my family," he said. Marriages tos, and finally found a picture I really liked — and she really liked mine." return to the United States without do not have to be arranged — her — and hasn't seen her since. Fazlullah's brother married a woman Once his parents arranged a meet­ Shila is completing her college from the United States that his family ing, Fazlullah, living in the United degree in Bangladesh before moving adores — but Fazlullah chose to fol- States since 1989, flew home to to Memphis "hopefully by March," Bangladesh to meet his potential Fazlullah said. But the couple makes bride. "We met in a shopping cen­ NASER FAZLULLAH up for the separation with an ava­ ter and walked and talked. Our lanche of pictures, email, letters and TITLE: DISTRICT families would let us get a few feet phone calls. "I'm still learning about away in the mall so we could talk SUPERVISOR her, and we talk about everything," privately, but they trailed behind," Fazlullah said. He receives two or LOCATION: MEMPHIS he said. After speaking to each three letters from Shila each week, NORTH other for about a half hour, and spends an average of $1,200 a Fazlullah went home to do some month on telephone calls to her. AGE: 32 serious thinking about his future. But Fazlullah doesn't care — he's HIRE DATE: 2/16/92 That was the only time he falling in love. "I feel I've been mar­ was to see Shila before their wed­ ried forever because I know her so IN HIS WORDS: ding day. "Dating isn't really well, and she knows me," he said. 'All "I TIE MY CULTURE TO MY allowed, but I did get to talk to this time I've been looking for her, LOCAL MARKETING EFFORTS; WE her over the phone," Fazlullah and now I've found her." USE ALL RESOURCES AVAILABLE said. While the parents do the ini­ TO ACHIEVE SUCCESS." tial searching in the arranged mar­ riage process, the final decision is The

lies in our people Secret Santa Jacksonville Shift Leader Reflects the True Spirit of the Season

aroline Moran gives more than 200 children a wonderful to Christmas present each year, but never hears a see their Cthank-you. faces." And that's just the way she wants it. Moran A shift leader at the Jacksonville # 12 Krystal on Beach shrugs off Boulevard in Jacksonville, Fla., Moran has made a tradition praise for of anonymously supplying gifts for the children who live in her charity, her apartment complex. The Harold House Apartments but she has are an affordable property where tenants qualify for made a last­ reduced rent based on their income. Many tenants are ing impres­ single mothers with more than one child, said Shirley sion on Hildebrandt, Harold House property manager. those who While many give lip service to the true spirit of the holi­ know about day season, Moran, known as "Granny" by most everyone her covert who knows her, is a living testament to the old adage that kindnesses. it is better to give than receive. The thought that any one "It's nothing of the children may go without a present for Christmas elaborate, prompted Moran to start her season of giving 18 years but no one ago. "I heard some kids around years ago say that they else thinks didn't have anything for Christmas, so I asked the com­ of these kids plex office if I could do this, and they said okay. I can't see but her," kids doing without, especially at Christmas," she said. Hildebrandt She starts right after the holidays and buys throughout said. "She is the year, making sure to keep a close tally on the total truly a great number of presents she needs. She completes her "Secret lady." Santa" routine by supplying Krystal Sunrisers for the resi­ Moran's Carol Moran plays Secret Santa each year to more than 200 children in her apartment complex. Why? "I can't see kids doing without, especially at dents' annual holiday celebration as a volunteer dressed yearlong Christmas," she said. as Santa passes out the gifts she has worked so hard to activities are supply. kept in the The children strictest confidence, as she sneaks in the gifts to the : CAROLINE MORAN do not know complex office while the children are at school. And she A.K.A.: GRANNY to thank takes great pains to make sure only the apartment com­ Moran for the plex staff knows her identify — for sure, anyway. "If our TITLE: SHIFT LEADER gifts, but the residents ask, we tell them [the gifts come from] 'a lady RESTAURANT: JACKSONVILLE feeling she on the property,' but some parents know it's her," gets from her Hildebrandt said. Moran is serious when it comes to #12, charity is swearing the few parents who do know to secrecy, howev­ AGE: 61 thanks er. "I tell them, "Don't spoil it for the kids,'" she said. enough. And while many strive to save or spend each dollar they HIRE DATE: 11/8/91 "These kids earn, Moran believes the gift she receives in return for her I IN HER WORDS: are very efforts is priceless. "Money isn't everything," she said. As grateful," she long as I have food, a roof over my head, a ride to and i PUT MY NAMEPLATE UP AND said. "I love from work and a little money for myself, that's all I need. J THE CUSTOMERS SAY, 'WHERE'S kids, and I The rest is for the kids." j GRANNY?' IT'S LIKE A HOME love giving to Now that's the holiday spirit. IAWAY FROM HOME." them. It's The •SJ lies in our people Triumph Over Disability: «yir *** tag* P™ the Value of A Positive Attitude Sam Davis has proven that a can- and say, "Check 5?' And another can do," he said. do attitude, applied daily, trumps a employee will say, 'Yes Sam, that's a Even some Krystal employees do a physical disability every time. five-dollar bill.' Then I count back the double take before they realize Davis A service leader at the change to the customer." cannot see. "I've had Standards Murfreesboro #2 Krystal on South These are just a few of the duties assessors in here that didn't realize it Church Street in Murfreesboro, Tenn., Davis does — and does well — at until lunchtime," said Sonya Argo, Davis has been visually impaired Krystal. "I've done several things ... general manager of the restaurant. since birth. While he can see some Davis' success on the job is not light and shadows, he cannot read unusual. Research shows that people print and uses a cane to walk. His with disabilities make good employ­ disability hasn't stopped him from ees in many areas of the workforce. much, however; with a few accommo­ They are typically very dependable dations and a positive attitude, Davis and want to work, if given the oppor­ has excelled as a drive-thru order tunity. But of the 16.9 million work­ taker, order filler and yes, even a ing-age Americans with disabilities, cashier. 12.1 million, or 72.2 percent, do not How? Davis uses a Braille register have jobs. overlay, one which he made himself. It has been proven that a job can Braille is a system of touch reading enhance self esteem, provide educa­ and writing for people with visual tional opportunities, increase social impairments in which raised dots rep­ contacts and offer important fringe resent the letters of the alphabet. benefits such as health insurance — The groups of raised dots are read by Sam Davis asks a sighted coworker to check a bill before making very important to all people, especial­ moving the hands from left to right change for a customer. With a little help, he runs the drive-thru at ly those with disabilities. "I think it's along each line. Using this system, the Murfreesboro #i Krystal. an important need," Davis said. "I Davis can "read" the correct button had friends at the school for the to push on the register and ring up a just not cooked in the kitchen. That blind who are now running conces­ customer's order. wouldn't be a good idea," he joked. sion stands in government buildings But taking money? "With a little After graduating from Middle and factories. They feel good about sighted help," Davis explains. "I've got Tennessee State University with a for­ it; they are happy to have a job." it down to a science. When I take a eign language degree, Davis heard Of those 12.1 million people with bill from the customer, I'll hold it up about Krystal while training at the disabilities without jobs, more than Tennessee Rehabilitation Center. 79 percent would like to work. SAM DAVIS "There was a person there working Usually, employer attitudes are the for Krystal. I said I would try it. I biggest barrier to jobs; then, it is TITLE: SERVICE wasn't sure how long it would ensuring that the necessary accom­ modations are made for the worker to LEADER work, but I've been here ever since," he said. He even uses his complete his duties successfully. As is LOCATION: MURFREESBORO degree by taking some orders in typical in many cases, Davis required #2, TENNESSEE Spanish. "If I greet a car two times small, inexpensive accommodations in English and don't get an answer, to succeed; a Braille keyboard and a AGE: 47 I'll greet them the third time in small amount of sighted help. HIRE DATE 4/18/88 Spanish and wait." While Davis shrugs off his personal Some of his regular cus­ accomplishments, he points to the IN HIS WORDS: tomers do not realize that he is efforts of all employees with disabili­ "I GET TO TALK TO PEOPLE AND visually impaired, but if a cus­ ties in changing the way employers PUSH AN ITEM TO RUN UP tomer does ask questions, he is feel about hiring them. "With a little SALES. I THINK THAT'S MY happy to answer them. "I don't help sometimes, we can do almost FORTE HERE: TRYING TO SELL." think even nowadays people real­ everything someone else can do," he ize what visually impaired people said.

10 The

lies in our people James Preaster: It's Never Too Late to Learn

At 72 years old, James Preaster has a new lease on life. Every Tuesday he meets Russ at the library. "I get kind Three years ago, his wife died after 40 years of marriage of tickled — at 72, I'm in school," he chuckles. Slowly he Her death not only took away Preaster's partner in life; it has learned to read more and more, even reading pas­ also took away an important link to the outside world. sages from the Bible in front of his church congregation. Mr. Preaster could not read. He's made other changes, too. "My first wife took care of all He's learning to type, and he's the paperwork, buying cars, pay­ checking books out of the library ing bills," he recollects. After I with his very own library card. lost her, I had to try to do it all And people aren't honking now; by myself, and there's not many he reads billboards as he cruises people you can trust nowadays." to work. A product of the Depression Preaster credits his tutor with era, Preaster was born and raised having the patience to help him in rural Georgia and was only with such an important accom­ able to attend school sporadical­ plishment. "She's a wonderful ly. He and his siblings — more teacher. There's so many things than a dozen from his father's she's taught me, and she's not three marriages — were expect­ through yet," he said. ed to work and contribute to the Preaster himself made the hard­ family's income. est decision to find help at an He worked as a truck driver for older age, and it's one that he years to support his wife and appreciates daily "I was just three sons, but his inability to existing before — that's all I was read took its toll. "I had to listen very carefully whenever I doing," he said. "I feel much better about myself now. I'm was told to do anything, then try to remember it. I would independent." watch other people and see what they do, then do that, In fact, other areas of Preaster's life have changed, too. too," he said. "I had to keep a job by working hard and His friend Thornton — the one who helped encourage fast, and remembering as much as I could. him to learn to read — is now his wife. "We did some "I wasn't lazy; I've been honest and smart," he said. "But reading together last night — it was fun," he said. without education, you can't hardly live comfortable." Drawing from his experience, Preaster shares his story Even the smallest things were difficult. Preaster received with others to encourage them to follow their dreams. "I insurance at his job, but couldn't read the forms. So he tell everybody now, 'go to school.' If I had [learned to signed up for the same insurance his boss had, hoping he read] 20 years ago, there's no telling what I could have had made a wise choice. And driving caused other prob­ been." lems. "When you can't read, you slow the whole world But he's not ; JAMES PREASTER down. People would honk at me in the car because I bitter over his would go slow, looking for location markers." past; Preaster TITLE: SERVICE Writing checks was troublesome, too. He relied on is truly thank­ ASSOCIATE ful to have money orders instead, as he was unsure that he would LOCATION: ORLANDO #5 write the amount on a check correctly. "I was scared of been given the writing $500 when I meant $5," he said. chance to FLORIDA learn at all. "I £ In October 1997, lonely and scared, Preaster realized he AGE: 72 had to make a change. A friend, Bertha Thornton, con­ thought I was h vinced him to find a tutor. He teamed with Nanelle Russ happy before; HIRE DATE: 7/12/99 now I have < with the Adult Literacy League of Orlando, and soon his LC IN HIS WORDS: world was expanding. something to ^ "I LIKE MY WORK. I TRY TO DO Just three years later, the service associate at the be happy IT RIGHT. I TAKE EXTRA TIME TO Orlando #5 Krystal on South U.S. Highway 17 & 92 in about," he {J Fern Park, Fla., says he feels as if he's been let out of a said. ~} DO IT RIGHT. I HATE SLOPPY cage. "I'm learning things that I never knew existed. The WORK." world looks different to me now." o Krystal of the Year Awards Announced Soon Winners to be Named Krystal of the Year Awards at Banquet March 27 Selection Criteria On March 27, Krystal will name the top-performing Operations Financial 1 Human Resources I General Managers and District Supervisors in the compa­ S09S 4.0% I 10% H ny to receive the 2000 Krystal of the Year Awards.

The five top GMs in the company and the top DS in Annual Service Check Percent Percent Employee each region will receive cash prizes, with $1,750 awarded Standards Complaint Sales Cash Retention to each winning GM and $2,200 to each winning DS. Assessment Ratio per Increase Operating (tow 10,000 Over Profit Turnover Percent Criteria based on 2000 operational, financial and human Transactions Budget 20% Percent) resources results (see graphic) will determine the winners. 40% 10% 10% Competing restaurants will be ranked in each category or For OS awards, human resource! results will be measured by management retention instead of employee retention. subcategory to achieve overall rankings. Winners will be determined in February after all year-end the Year Meeting and Banquet. information is available. March 27 and 28, the winners of Events will include business meetings, workshops, exec­ the KOTY awards, along with Krystal's Regional Directors, utive speeches and an evening banquet honoring the DAOs and DSs, will join key staff members for a Krystal of KOTY award winners.

The trip itself ViQy;- ^X/W-^ttfytf/Ww-r' > •• ! 1999 Award Winner Lisa Witt Describes was a fantastic motivator, but Prize as "Trip of a Lifetime" the appreciation 10 ^M for the extra RnF M* M Lisa Witt, general manager of the Kimball #1 Krystal on effort is what • Hwy 72 in South Pittsburg, Tenn., planned to be number Witt admires one long before her restaurant was named the 1999 most about the Krystal of the Year. Krystal of the "That was our goal. We sat everybody we hired down in Year award pro­ orientation and told them that was our goal. We were seri­ gram. "This com­ ous," she said. That planning paid off; in March 1999, Witt pany is out for its earned the top spot at the Krystal of the Year awards ban­ people," she " •;. 1 •PSn quet, complete with an all-expenses paid vacation for her said. "They just and her family. really make sure ^,'^!%/. .* :' Witt, her husband and two children left Oct. 7 for four you know that days of fun at the Disney Beach Club Resort, then spent UP they appreciate * JSlrS four luxurious days on a Disney cruise. "It was wonderful. what you've The Witt family enjoyed an all-expenses paid vacation compliments of It was really a vacation of a lifetime," Witt said. "lust the done. That just prestige of winning was such an honor, and then the trip The Krystal Company for Lisa Witt's achievements at the Kimball #1 makes you want Krystal in iqqq. Above, they pose with several Disney characters on the on top of that ... that was the icing on top of the cake." to do better." Disney cruise portion of their trip. While Witt could have chosen from several vacations as And do better part of her award, she believes she made a good choice she will. Witt has by choosing a trip her whole family could enjoy. A lot of entered a developmental program to start building toward people would not have chosen to take their kids, but they a promotion to a district supervisor. "It's been a new chal­ give all year long, and it was time for me to give back to lenge for me; I'm learning new stuff every day," she said. them." And her ambition to achieve hasn't waned in her new Although she would love to win the top honor again duties. "[North Region Director] Jeff Krause calls this pro­ this year, Witt says she hopes everyone strives to compete gram 'DS Wannabe;' I call it 'DS Gonnabe.'" for the top spot. "It should be everybody's goal to earn Go for it, Lisa! that. From what I've heard, last year's award has really stirred up some ambition," she said.

12 Promotion from Within Former Chattanooga DAO Named Northern Regional Director restaurants for more than just train­ ing new managers that come into the company. Their scope and level of involvement on a regional basis will be greatly expanded." But training on business topics is only one goal Krause has for his team. At every DAO meeting, there will be a management piece, a train­ ing piece and a personal develop­ ment piece; that triad is what I believe in," he said. And his management style reflects a devotion to developing people and challenging them to succeed. "That old style of "my way or the highway' is gone because it just doesn't work longterm; my style is directive, but very people focused. I want a person Jeff Krause, former director of area named the new Northern Regional to make their own decisions, hopeful­ operations in Chattanooga, Tenn., Director. ly more good than bad, because that's the only way they learn and has been named to succeed Delmas Krause's extensive history with the grow. Arthur as Northern Regional Director. company and the relationships he "I'm ecstatic, but it hasn't really has developed with its people is evi­ "Put simply, it's a common-sense sunk in yet," Krause said during a denced by the excitement over his based management style that recent visit to the Krystal home office promotion. "I had 67 emails and sev­ revolves around logical thinking," he in Chattanooga. "How can I not be eral voice mails congratulating me," said. "My style is all about training, excited? If you look back on all the Krause said. And that support is inte­ developing, planning and then exe­ places I've been with this company — gral to his — and the company's — cuting; to me that's what manage­ from training, to being a part of the success, he said. "I want to publicly ment is supposed to be." KP-2000 project to becoming a DAO thank the home office staff for the Krause will spend December travel­ — it's just all come together." support they've shown me, especially ing to each market in the region, then Places with Krystal he definitely has since I took over the Chattanooga plans to unveil his 2001 business been. Krause joined Krystal's Training market as DAO. They, in their own plan at his first DS/DAO meeting in Department in late 1985 to write and way, helped make this happen," January. His team can expect an excit­ teach multi-unit management. Shortly Krause said. ing, challenging and rewarding year, after the company was purchased in Though the dust has not yet settled one that Krause is anxious to begin. 1997 by Phil Sanford, he left corpo­ on the promotion, Krause already has "For the last two or three years, I've rate headquarters to move back into distinct plans for the Northern Region seen the company making all the right moves for explosive growth and his favorite area of the business, that puts a major emphasis on train­ success," he said. "The company defi­ operations. His task? Help develop ing. "It's been said by Fred Exum that nitely has been positioning itself for the company's new KP-2000 restau­ what we should do is spend 90 per­ long-term success, and I believe we're rant project. In 1999, he moved to cent of our time training and 10 per­ seeing all of that work coming togeth­ Mobile, Ala., to serve as director of cent doing the rest of the job, and er. I'm very excited about being part area operations in the North 2 area. what I do will reflect that philosophy," of this company's team and its In July 2000 he returned to he said. "We'll be putting a lot of future." Chattanooga to take over the market effort toward using the certified train­ as DAO; just five months later, he was ing managers and certified training 3 McKinney S Silver Named Hew Ad Agency "Krystal Meter" Theme Created for Advertisements fter a comprehensive search of is their first venture into the quick base, the challenge was to apply the more than 100 firms, Krystal service industry — as marketers, not corporate business strategy to a cre­ Ahas selected McKinney & Silver consumers. ative platform that would drive sales. based in Raleigh, North Carolina, as "We have a lot of people here who Krystal believes McKinney & Silver its new advertising agency. are Krystal loyalists; they really love has done just that; the new "Krystal Many factors went into the deci­ the brand," said Lisa Hughes, Meter" commercials have tested well sion, but one of the most important account supervisor for McKinney & with consumers. was finding a business partner that Silver. "But beyond being general The new advertisements are unique understood Krystal's strategy and consumers, we're excited about being in the quick service industry, one rea­ consumers, said Mike Williams, direc­ son Williams believes they are effec­ tor of system marketing. "Quite tive. "We didn't want our customers frankly, they were head to say, 'Oh, there's another and shoulders above fast-food commer­ [the competi­ cial,'" he said, tion]," he said. "but rather be "It was a drawn into clear-cut, the commer­ unanimous cials, decision." because they Krystal offi­ are unique and cials believe the different in the QSR agency's medium size is category." the right fit for the Krystal As the business partnership brand. "They have done a lot of good between Krystal and McKinney & work and are building a good reputa­ a part of Krystal. It's such an icon and Silver grows, customers will see more tion for themselves," Williams said. unique within our region, and we're of the Krystal Meter. Krystal plans to The agency services other companies happy to be working with the market­ expand the campaign to other areas including Audi automobiles, Bacardi ing team to take the brand to the of the business, including billboard USA, Ben & Jerry's Ice Cream and US next level." advertising. Aetna insurance. And while they have Once the agency proved that it worked with some food products, this understood Krystal's loyal customer

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• .ftfti-ftft: l^vftifti|:ft'ftftft:i'-liftft^:ftift^^ : : : ; 1 Deck the Doors ,, 3^S^:««^^c^®: :W -..' ft. ftlftSftl; ?ft:ftftv-—1 - ••|ftftft;ftft" ftft$fft ftftftftftft'ftftft. &m£::S?S&:- "H%ftl;ft.| ftftfc*#ft I f Mft; /: ftftftft r*ftftft*iftif' *- Jfftftftftft The team at the Pensacola #1 Krystal on Navy Boulevard <.,J l#;-.ftift"-f 'life 11'••:.*< . .ft ;. • - sift," ft,<€ ftiftft . III i- ,.M : .''.'• '^ftllil */s*;#§SI?fe ! in Pensacola, Fla., gets out its brushes and paint to wish cus­ III " S!iUSii»S :V K.;':. m tomers and passers by a happy holiday season.

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•'. ftftftftft'iftlftftftftftftft.ft \ . : U ''• v 111 ft-t:ft|t ;"* ,it'W:--%f:',--\.'iJi:-A-j the windows of the restaurant each holiday season. ^H m$* W$*\ H Hr Robinson draws the pictures of various cartoon characters

: 111 ; x: on the windows, then the restaurant employee team pitches ''ttv'ft*'* '" ftj;'ft- , ' g; ftS/ gft¥ft!ftll :: : : W^'- y ' y-:-^P^- "*'"'*" 'ft i^ftftftftA Sftftft-v.'ftft v;^i!£ fS%^?% ft-' Er ^L«2t. JB in to participate in painting Robinson's creations.

14 This Brand it HOT! Krystal Welcomes Two New Franchisees Franchise Interest Grows Far and Wide The brand is hot! Krystal franchises are selling fast, with Krystal is used to the tales of customers who miss the more and more people wanting to be a part of the growth taste of those square burgers because they now live in of the brand. areas that do not have Krystal restaurants. But now, Two new franchises have signed on to help expand people from far and wide don't just want to buy a burg­ Krystal to new markets, and many more deals are in the er; they want to buy a restaurant. works, said Mark Levis, director of franchise sales. Krystal "I get emails every day from people inquiring about welcomes its two latest business partners: franchises from Hawaii, Alaska, Puerto Rico, the Pacific • William Saveh Northwest, California, London and Germany. The excite­ ment is catching on," said Mark Levis, director of fran­ Krystal franchisee William Saveh is chise sales. no stranger to the food industry. He currently operates two full-service While Krystal is planning for aggressive growth that could easily take the brand to these places, the first step steak houses in western Tennessee is to saturate the Southeast markets where Krystal which offer everything from country already exists, Levis said. "This is our home turf - where favorites to Italian specialties. He we were born," he said. "The plan is to build out our recently signed an agreement for 15 William Smn underdeveloped markets, then expand into untapped Krystal restaurants in and around the Jackson, Tenn., areas." Corinth, Miss., and Murray/Union City, Ky, areas. Saveh says he became interested in partnering with Krystal plans to develop more than 40 franchise restaurants in 2001, both from new franchise develop­ Krystal after tasting those hot, fresh burgers. "Quite frankly, ment and current franchise expansion. I tried them a few times and I enjoyed the flavor, and the price was great. Then I checked it out and found out that it's a wonderful business opportunity, too. You can walk in and get good food for next to nothing at Krystal," he said. Saveh broke ground on his first restaurant recently in Franchisee of the Year Brownsville, Tenn. "We're excited; our staff is ready to go." • Jason Gordon, Kevin Gordon and Dan Brinton to be Named March i Operators of four doughnut stores in Houston, , Jason Gordon, Kevin Gordon and Dan On March 7, the top the Kwik, Non-Traditional Brinton decided to expand franchisees and their and Full-Service cate­ into the burger business for restaurant crews will be gories are awarded hon­ two reasons. "First, we honored during the ors in three categories: believe Krystal is a strong Franchise of the Year Top Sales in 2000, Speed and powerful brand. In award banquet. of Service and Standards Krystal's existing markets, Much like the Krystal of Scores. customers attribute quality the Year awards Company executives, and uniqueness to the Jason Gordon, Dan Brinton and Kevin Gordon bestowed on company regional directors, direc­ Krystal brand. restaurants, the FOTY tors of area operations, "We believe the Krystal brand and product will be accept­ awards recognize the and district supervisors ed well in our development territory," Kevin Gordon said. franchise restaurants attend the annual awards "Second, we were and have been very impressed with the which meet criteria banquet. management team in place at The Krystal Company. We including Standards Last year, Krystal are excited about the future of the Krystal brand and are Assessment results, sales Franchisee John Jewell IV very excited to be a part of the growth plans of the compa­ performance and speed of BKJF LLC won the top ny." of service. honor. Who will it be this The Gordon/Brinton franchise agreement includes the During the banquet, year? Tune in to the rights to 12 Krystal restaurants in the Lafayette/Lake franchise restaurants in Gazer to find out! Charles, La., areas and Beaumont/Port Arthur, Texas, areas.

15 The Three R'$ of Krystal: GOOD PEOPLE NEEDED: INQUIRE AT KRYSTAL! Everyone knows that it's hard to find employees these days. With unemploy­ ment rates in many areas weighing in at under two percent and the competi­ tion stiff for qualified appli­ cants, Krystal, like most other companies, has had Knoxville area Trainer and Recruiter Dottie Berry interviews a likely candidate for a position with Krystal. to become creative with its recruiting efforts. and newspaper advertise­ forces are looking for new advertise for workers, and The Internet has become ments are still useful tools career opportunities, and Cole says that is important a hotbed of recruitment to find qualified applicants, this creates a positive for customer perception. activity for employees at but being creative and applicant pool, said "That gives the wrong the management level, said using less obvious tactics Jennifer Pipin, South Region impression to the public Marlene Cole, North recruiter. "The military is that we're not staffed effi­ Region recruiter. ciently," she said. "Monster.com is Instead, restaurant truly a monster," she management should said. "People use it a Quick Tip: focus on recruiting lot. And it's allowed inside the restaurant us to move so much Krystal's 24-hour operation can be a plus to some by asking current faster. Somebody employees to refer might call me at candidates. Having a third shift allows employees qualified friends or rel­ nine, I get back to atives to Krystal (see them by nine-thirty, the flexibility of choosing to work non-traditional referral program infor­ and we'll have them hours, which gives them more "traditional" time mation on Page 17). scheduled for their "Word of mouth is a second interview by off with their friends and family. great way to advertise," the next day. But if _ Cole said. "And local you don't react store marketing efforts quickly, they are can help spread the gone because of all their can make all the difference very active in trying to seek word that Krystal is a good options out there." in a tight labor market. For out employers for their employer, too." More traditional recruit­ example, many men and people." ment sources like job fairs, women ending their service Krystal does not use its school placement offices with branches of the armed restaurant readerboards to

16 Recruitment, Retention & Referral RETENTION EFFORTS INCREASED Once an employee is hired to work not be employed longterm. However, team atmosphere, all which lead to at Krystal, how can we ensure that there are costs associated with ori­ improved retention. they will stay with the company? enting and training each employee Employee feedback is one of the That's the question being asked by who crosses through Krystal's doors, most important things a manager can many Krystal staffers challenged to and the costs escalate for manage­ do to improve retention — as well as improve employee retention ment candidates. Therefore, retention general morale — in the restaurant, companywide. is still a high priority in both hourly Cole said. Retaining quality employees is a and management circles. "Letting our employees know that hurdle for all quick service restau­ A pilot program in two Krystal mar­ they are appreciated is crucial," she rants, and Krystal is no exception. kets is helping the company research said. "That's one of the main reasons But while the numbers of termina­ new ways to improve both hourly I came to work here; every time I vis­ tions may seem high, some consider­ employee and management employee ited a restaurant, the employees ation must be made due to the retention, but there are small things seemed to be having a good time. It's nature of the quick service industry, that all levels of supervisors can do important to set that tone." said North Region Recruiter Marlene to help keep good employees. Many A pat on the back or a few words Cole. Restaurants like Krystal employ creative ideas to help managers of encouragement can go a long way many hourly staffers who are looking improve retention in their restau­ to helping retain quality employees for seasonal or part-time work while rants, districts and areas are available and make every Krystal restaurant a they complete their education, or use in the Krystal Staffing and Retention fun and friendly work environment. the position as a second job to sup­ Manual. The manual offers creative Look to the Staffing and Retention plement their income; it is accepted incentive programs, employee recog­ Manual for more ideas! that many of these employees will nition methods and ways to build a

If you have a good employee you would like to clone, ask them if they have a friend that needs a job! The employee gets a bonus and you get a quality employee; that's a LET THE win-win situation, said Jennifer Pipin, South Region recruiter. "We get good people and employees receive a generous bonus. It helps our employees enjoy their work environ­ ment, too, because they bring in other good people. They also get to work with their REFERRAL friends or family." Freshen up on the referral program basics below, and remind your employees that they can refer multiple candidates to earn more cash! MANAGEMENT REFERRALS: All general managers and below who refer a management candidate (assistant manager or general manager) that completes 90 days with Krystal receive a $349 Sears Debit Card for the first referral. For each referral after the first, the referring employee receives $500. HOURLY REFERRALS: All assistant managers and below who refer an hourly employee (associate through supervisor) that completes 90 days with Krystal receive $25.

V I i ©n the (lock Win $100 and a Krystal T-Shirt! Prove you correctly clean in the 4th quarter Gazer contest Cleaning and sanitizing are very important to Krystal, and it's every employee's job to keep Krystal a clean and safe environment. Below Krystal's Kel-San reps are determined to test your knowledge — show them what you know! Send in this page with your completed quiz to Krystal's Communications Department, c/o Gazer Editor, One Union Square, Chattanooga, TN 37402, or drop it in your restaurant's weekly mail. We'll draw from all of the correct responses to pick a winner and announce the winning employee in the next issue of the Gazer. All restaurant employees up to Q.S.C. specialists are eligible to win. (Answers are located on Page 27; No ] 1. Hot water helps detergents clean better. • True • False 2. Employees should read labels and Material Safety • True • False Data Sheets before using any cleaning chemicals. 3. Quat test strips should be used regularly to test sanitizer strength. • True • False 4. To properly sanitize pots, pans, and utensils in the three • True • False compartment sink, they must be completely submerged for 30 seconds. 5. Non-food contact surfaces such as buckets, mops, and brushes • True • False do not need to be cleaned, rinsed and sanitized. 6. Hand washing is allowed at the three compartment dish sink. • True • False 7. After using the toilet and before leaving the restroom, employees must properly wash their hands, then wash their hands a second time before returning to work. • True • False 8. Rings, watches, necklaces and bracelets can be worn while preparing or cooking foods. • True • False 9. If employees are wearing gloves, they do not have to wash their hands after sneezing or coughing. • True • False 10. Employees must wash their hands before changing into a fresh pair of gloves. 11. Garbage containers need to be properly cleaned and sanitized on a regular basis. • True • False 12. Spray bottles used to dispense cleaning chemicals do not need to be labeled. • True • False • True • False Your Name: Restaurant Number: Tour Title: Congrats to 2nd Quarter 2000 Gazer Contest Winner Congratulations to Debra Mayo, Q.S.C. specialist at the Memphis #8 Krystal on Frayser Avenue in Memphis, Tenn.! Debra strutted her safety know-how by answering all of the questions correctly, then was picked from the correct entries to become the winner. Denise received a prize package containing a check for $100, a Gazer contest winner certificate and a Krystal "Bite-Me" T-shirt. And this is the second contest in a row that a Q.S.C. specialist from the Memphis #8 Krystal has won. Last issue, Denise Jackson was named the Gazer contest winner. YOU could win the next Gazer contest! lust answer the questions above about Krystal's cleanliness regulations, then send in your completed entry to the home office for your chance to win! 18 .a section specially for hourly employees • Athens, Tenn., Employee Big Order Met with Great Composes Krystal Poem Service at Memphis #5 Teresa Brown, general manager of the Krystal on Check out this poem written by Helen Poplar Avenue in Memphis, Tenn., recently received Ferguson, manager trainee at the Chattanooga #21 kudos for her crew's efforts on a big order: Krystal on Decatur Pike in Athens, Tenn.: It's a great day at Krystal, don't you know, Dear Teresa and Krystal Staff, We take orders to dine in and also orders to go. On behalf of the East High School Class of 1975 reunion group, I want to thank you for the excellent service on our We always smile, say thank you and please, big order Saturday, Aug. 5. We suggestive sell by asking if you want that with cheese. We took all those Krystals and fries back to the school We try really hard to keep the kitchen nice and neat, and everyone enjoyed eating them there. We wipe everything down, then grab a broom and sweep. That restaurant has been there for a very long time and We sweat, we grumble and we gripe away, it, like the school, is really a landmark for the neighborhood. We Yet, we all come back day after day. have many happy memories from eating there over the years. We shine up the windows and clean around the doors, Thank you so much for helping to make our day special. We clean the counters and then mop the floors. Sincerely, We work and work but we never get done, Beth Gooch 'Cause we are constantly trying to make Krystal number one. Quality, service, cleanliness and friendly at what we do, And we manage to enjoy our jobs here too. I'm so glad this little Krystal came to our town, For it's the best place to eat for miles around. We are a family, we are a team, Hot, square, fresh and also neat and clean, Service to the customers is our way, So the guests will come back another day... Customer Thanks Knoxville #2 Employees for Extra Effort This letter was sent to the Krystal home office We are so very grateful for the fact that Karen had made a rou­ praising the efforts of three women at the Knoxville tine walk in the dining area and had discovered my purse on the #2 Krystal on Cumberland Drive in Knoxville, Tenn.: floor by the chair where I had sat, and that she and her coworkers were honest enough to put it safely away for me. This should Dear Friend, always be the case, but it so often is not] You are to be commended On Sunday, }une 3, my husband and I were returning home for having these three women in your employ. from Cleveland, Tenn., and stopped in for a Krystal at I felt compelled to report this event to Krystal headquarters and your restaurant at 1702 Cumberland in Knoxville. This has been a secured your address from the women. Perhaps you might be routine stop for us whenever we are in that city. inclined to reflect this incident in their personnel records. After driving about 83 miles toward Virginia, I noticed that I did We have enjoyed Krystal for over 40 years, and have not have my purse. I had failed to pick it up after eating. My hus­ never been disappointed in your product or your employees. In fact, band remembered reading your 800 number on the restaurant door. when we returned for my purse, I ate another hamburger and my He found a side road and, using his cell phone, called the 800 husband had two, remarking that the last was the bestl Thank you number and was given the Knoxville telephone number. for years of enjoyment. Karen Miller, shift leader, answered the phone and said that she had discovered my purse and had placed it in the safe. When we Cordially, returned to the store, Karen, Manager ]ulia Cooper and Mindy Helen Newbold Ragsdale rejoiced with us in the safety of my purse.

19 k i ©n the (lock "2 Fer" Contest Pushes ist Quarter Contest Medium Fries, Named Soon! The 4th Quarter 2000 KNXW KNX-12 Incentive contest helped BIRN BIR-13 increase add-on sales of BIRS Area Winner Stay on the lookout for information medium fries and drinks with BGKA BGK-02 10- and 12-count Sackful MUFA TUL-01 orders, plus offered employ­ NSHC NSH-20 coming to your restaurant in late ees great prizes! NSHE Region Winner Congratulations to the win­ NSHN CTN-02 ners listed below. NSHS NSH-01 January about the ist Quarter 2001 Region Winners: MFSE MFS-06 ($75 in Krystal Kredits for each employee) MFSN Area Winner North NSH-03 MFSW MFS-11 Employee Incentive Contest! South MAC-03 FLOA DCA-01 HTVE SCA-02 Area Winners: HTVW Area Winner The contest will help restaurants push ($50 in Krystal Kredits for each employee) North 1 CHN-14 South District Winners: North 2 PEN-01 ($100 per restaurant for a pizza party) a new Krystal menu item — and North 3 NTN-01 MACA Region Winner North 4 BIR-09 VALA VAL-01 North 5 Region Winner WRGA MAC-08 the grand prize is BIG! North 6 MFS-03 COLN Area Winner North 7 CBT-02 COLS ALB-02 South 1 Region Winner MNTA MNT-04 South 2 COL-2 JAXE JAX-19 South 3 JAX-15 JAXN BWK-01 South 5 MAR-24 JAXW Area Winner South 6 ATL-25 ATLE ATL-12 South 7 SAV-05 ATLN ATL-21 South 8 ORL-01 MARA Area Winner RMEA CAL-01 North District Winners: ATLC ATL-08 ($100 per restaurant for a pizza party) ATLE ATL-02 ATLS Area Winner CHNC CHN-04 ATLW MAR-15 CHNE Area Winner AUGA ATH-02 CHNN CHN-07 SAVA Area Winner CHNS DLT-01 DAYA BCF-02 CHNW CHN-19 ORLA ORL^05 JCME JCM-07 ORLB Area Winner JCMW HTB-02 Memphis #8 Wins Regional Prize in 3rd Quarter Contest MBLA MBL-02 The Memphis #8 Krystal on Frayser Avenue in Memphis, Tenn., claimed the top spot PENA Area Winner in the North Region during the "Cheddar is Beddar" 3rd Quarter Incentive Contest. KNXE Area Winner Each qualifying employee won $75 in Krystal Kredits. Above, employees celebrate with KNXN KNX-04 KNXS KNX-03 GM Subernia Jasper (middle), OS Naser Fazlullah (right) and North Region Trainer Toni Repko (second from right). zo .a section specially for hourly employees: Krystal Employees Recognized for Years of Loyal Service 40 Years 20 Years Rose Broadus, QIC. Specialist MBL-05

Top Left: Linda Blue, general manager of MBL-06

Top Right: Patty Robinson, general manager of PEN-01

Bottom Right: Mattie Solomon, Q.S.C. Specialist at MBL-05

10 Years 5 Years Bottom Left: Lovella Hegwood, Q.S.C. Specialist at NSH-21 Darlene Deaton, Service Leader at MBl-oi Bottom Right: Nancy Blair, Q.S.C. Specialist at MUF-OJ

11 CriH-CroH Method Key to Loading New Plastic Bags Krystal's new plastic bags for drive-thru and carryout orders have made an impact on both customers and employees alike, See the diagrams below for instructions but more emphasis on proper loading is necessary to ensure the bags are used successfully. on bagging perfect Krystal combos The change from a paper sack to a clear plastic bag was a big step in many areas including training, according to Mark Fuller, manager of product development. "The initial learning every time! curve [for employees] was big, but once our TIP: employees get the hang of it, they do great, Combo #i he said. However, learning the "criss-cross" PLACE NAPKINS j. Krystals, Medium Frj method of loading the bags, particularly in OVER FOOD TO drink bagged separately. combo meals, has yet to be mastered by all Comba #1 HELP RETAIN 4 Krystals, M Fry (In* host Sipaittir) markets. HEAT. The criss-cross method ensures that boxes are loaded properly so the bags have a square Layer Two: Two Krystah,- facing front bottom and stand up on their own. "If loaded properly, the bags stand up nicely," Fuller said. Layer One: Two Krystals,- If all sandwich boxes are loaded in the bag facing one way, facingside the boxes tend to fall over and the presentation to the cus­ tomer is impaired. However, if the boxes are loaded using the criss-cross method — with one layer facing front, the next layer facing the side — the bags offer a clean, neat and com­ Combo #2 and #3 pact presentation to customers. 1 Krystals or (hiks, Medium Fry In addition to proper loading, choosing the proper bag size IWiffl.fimfr'IWlr.iHi helps ensure customers receive tomboy #2 S # j j Krystili or j Chiks. Medium fry (on* Base* kpineiy) TIP: their order neatly. For example, HOLD BAGS WITH HANDLES combos #1, #2 and #3 should FREE SO CUSTOMERS CAN all be placed in the A" (8#) Layer Two: One Krystal/ Chik, facing front GRASP THEIR ORDERS EASILY. bag. If these combos are placed in a larger bag, the products inside may shift and fall over, again impairing the product pres­ Layer One: Two Krystals/ entation. Chiks, facing side The bags were introduced to the Krystal system originally as a cost-saving tool, but other advantages were noticed quickly. "We found that they increase order accuracy, save space and decrease drive-thru time," Fuller said. And they keep the food hotter, longer." Because the bags are clear, customers and employees can tell at a glance if orders are correct, increasing speed of service. And the space-saving benefit is huge; plastic bags take up one-fifth the storage space of their paper coun­ Layer Three: Four Krystals— terparts. facing side Fuller spearheaded the development of a computer-based training CD that includes video segments on proper installa­ Layer Two: Four Krystals, - facing front tion of bag hooks, placing bags on the hooks and loading the bags with menu items. All Krystal directors of area operations Layer One: Four Krystals, _ received a CD at the December DAO meeting in Chattanooga facing side to aid in training their markets.

11 The (oca-Cola (enter: mm^vtm

by Jennifer Murray, Krystal national account executive, (oca-Cola USA Fountain

rystal restaurants implemented a upsizing incidence (number of pur­ Knew cup set on October 30. Why chases made). Also, the small, medi­ did we make this change, and why is um and large cup mix (percent of it so important to the Krystal system? each size purchased) stayed the Read on to find out. same. In other words, our customers did not change their purchasing What habits. This is particularly important Cup set sizes shifted from since the cup set shift included pric­ 16/21/32-oz. cups to 16/32/44-oz. ing adjustments. Our customers are cups. Soft drink pricing changed to willing to pay more for their soft $.99/$ 1.29/$ 1.39. In addition, we drinks and combos because now they changed large fry pricing to $1.29 and get a bigger drink and all medium and increased combos by $.20. large sizes include a plastic, portable Go Cup. That means extra value for A point-of-purchase "dangler" was used in the test markets to show Why our customers and more profit for off the ]i- and 44-oz. tups to customers. Many of our competitors have Krystal. implemented larger cup sets (e.g. counter. Finally, if our customers have McDonald's, , Sonic, How any questions about the new cup set, Checkers, etc.) due to consumer pref­ It's important we tell our customers we should have the most frequently erence for larger size soft drinks. In about this exciting change. That's why asked questions and answers posted fact, did you know that a 20-oz. bot­ we want to ensure our menu board on the back of the register toppers. tled soft drink is equal to a 32-oz. pricing is updated and we proudly fountain drink with ice? We wanted to display our new point-of-purchase Timing take advantage of consumer trends materials. General managers need to Complete implementation by and the additional profits resulting be especially careful to order the 12/31/00. from the sale of larger soft drinks. right amount of 32-oz. cups since our The new cup set was tested in two prior medium (21-oz.) had 1,200 cups Again, this program is a unique test markets (Columbus and per case and our new medium (32- opportunity to give our customers Montgomery) to ensure that cus­ oz.) has 300 cups per case. GMs what they want and help grow the tomers liked the new sizes and to should plan to use at least 20 per­ profitability of our system. Please ensure that the change was a prof­ cent more syrup. Also, we have a new, contact me at (404) 676-2250 if you itable one. The test yielded no signifi­ longer straw and straw dispenser, have any questions regarding your cant changes in soft drink, combo or which should be displayed on the new cup set! Krystal Wedding What's a wedding without flowers, family and... Krystals? Hal Clements, Krystal's labor attorney from the Miller and Martin law firm, recently purchased 150 Krystals to serve as a late-night snack at his daughter's wedding reception. At 1030 p.m., Krystals were served alongside (oca-Colas to the guests. "They were nice and hot, and we put them on silver platters. All the young folks made a rush for them," Clements said. "As the bride's father, I felt like a politician -1 couldn't get anything to eat! The one thing I had to eat was four Krystals; if I didn't do that, I don't know that I would have gotten anything to eat that night." While many locals enjoyed the hot, fresh taste they love, some members of the wedding party were new to the Krystal craving. "We had a groomsman from Texas and one from Michigan, and they didn't know what Krystals were," Clements said. "They found out real fast!" Pictured above, groom Reggie Vachon, bride Stephanie Braswell vachon and the bride's father, Hal Clements, help celebrate the couple's big day with a few hot, fresh, small, square Krystals. n Quarter 2000 Standards Scorn Percent RestID Percent RestID Percent BIR-01 95.67% NSH-04 90.37% ATL-48 87.47% PANF-03 84.90% PEN-01 94.83% ATL-25 90.31% BIRF-02 87.40% COL-02 84.83% HTV-03 94.15% KNX-04 90.20% ATLF-08 87.38% MFS-11 84.80% BIRF-01 94.11% ATL-49 90.14% KNXF-05 87.33% KNX-17 84.78% ATL-53 94.00% HTVF-02 90.09% MFS-17 87.33% MFS-05 84.71% ATL-08 93.76% ATL-47 89.87% ORL-03 87.28% PEN-04 84.63% NSHF-02 93.57% JCM-07 89.86% SAVF-02 87.26% ATL-42 84.40% MUF-02 93.43% SAV-04 89.72% ATLF-12 87.21% MBLF-07 84.34% CHN-14 93,40% KNX-06 89.70% CHNF-01 87.15% VAL-01 84.33% MBL.-07 93.17% MAL-01 89.70% KNXF-07 87.15% ATLF-04 84.27% MBLF-03 93.17% ATL-05 89.70% MBLF-04 87.13% BKJF-03 84.15% COL-07 92.82% MTN-02 89.69% NSH-13 87.08% KNX-05 84.13% HTVF-01 92.78% ATLF-1I 89.56% MNT-03 87.06% COL-01 84.13% JCM-02 92.57% ROS-02 89.53% DAY-02 87.06% GPMF-01 83.94% HTV-05 92.48% ATL-12 89.44% FLO-01 87.01% BIR-02 83.93% NSH-10 92.47% ATL-09 89.39% SAV-05 86.89% JCM-04 83.89% MBLF-02 92.46% AUGF-02 89.38% GRF-01 86.85% KNX-11 83.85% MCM-01 92.40% HTVF-03 89.38% KNXF-06 86.78% ATL-31 83.83% CTN-01 92.35% GAD-01 89.34% CHN-19 86.75% ORL-10 83.74% CHN-09 92.33% IONF-01 89.33% PEN-03 86.75% ATL-54 83.74% KNX-14 92.17% DAY-04 89.22% DLT-02 86.64% GPMF-03 83.69% KIM-01 92.11% BCF-02 89.11% ATLF-07 86.60% MFSF-01 83.62% ATL-55 92.07% ATN-OI 89.00% MAC-08 86.56% ORT-01 83.57% MBL-06 92.07% KNX-09 88.89% NSHF-03 86.43% MAR-24 83.57% AUG-05 92.06% CBT-01 88.73% WRG-01 86.41% MFS-16 83.56% BIRF-05 92.01% ATL-21 88.73% CHN-05 86.39% WRG-02 83.56% COLF-01 91.98% ATL-22 88.67% CTN-02 86.23% JAX-19 83.56% HTV-01 91.96% DAY-OI 88.67% AUG-04 86.21% CAR-01 83.50% ATL-39 91.93% SAVF-03 88.60% VAL-02 86.19% MNTF-01 83.48% BIR-06 91.83% MFS-09 88.60% MAC-07 86.19% MBLF-01 83.36% NSHF-01 91.49% KNX-16 88.53% MACF-01 86.19% PANF-01 83.31% NSHF-07 91.36% FAV-01 88.46% CDL-01 86.17% AUG-06 83.26% ATL-27 91.20% CTV-01 88.44% CHN-07 86.14% KNX-10 83.11% MERF-01 91.16% ATL-2 6 88.33% CHN-13 86.02% ORL-07 83.07% LWG-01 91,04% NSH-14 88.31% COL-05 86.00% MAR-04 82.94% PMS-01 90.97% KNX-01 88.22% SAVF-04 85.99% MNT-06 82.91% KNXF-01 90.92% 1WAC-0 3 88.17% BGK-02 85.89% JCMF-06 82.87% JCM-08 90.86% SAV-03 88.11% ALB-01 85.89% HTB-01 82.86% NTN-01 90.73% KNX-18 88.08% ATL-20 85.67% CHN-11 82.85% MFSF-05 90.72% . JWFS-1 4 88.08% MAC-10 85.52% AUG-02 82.68% ATL-32 90.70% ] AX-20 88.08% LEXF-02 85.50% MBL-02 82.52% KNX-07 90.67% ALB-04 87.86% ATH-02 85.50% AUG-01 82.51% JCM-09 90.66% ATL-38 87.81% BKJF-01 85.39% KNXF-08 82.50% TALF-01 90.56% 1HTVF-0 4 87.78% MSA-01 85.36% KNX-12 82.50% TUS-02 90.54% 1WLFS-0 3 87.61% NSHF-08 85.22% MFSF-06 82.50% MAC-06 90.51% 1WAR-1 5 87.50% KNXF-03 85.17% NSH-12 82.46% CHN-18 90.48% 1KNX-1 3 87.47% JAXF-05 84.97% BKJF-02 82.44% BKJF-05 90.44% IVIFS-1 5 87.47% ATLF-09 84.93% JAX-01 82.41% v\ RestID Percent MACF-02 82.40% Congratulations to the employees who helped their COL-06 82.39% VM lr\n^\n1rt IT rt vA Mm txvs AA \^t¥ i ft I i "% W+fl AUB-02 82.33% ae last i r. "Gold res [aurann rr -•" '• i ATLF-13 82.31% idKe tne gra parte NSH-20 82.29% HTV-04 82.29% level" restaurants are highlit [hted iivit h MNT-04 82.28% .' V< ; • ; ••% MUF-01 82.25% MNT-05 82.24% a shaded box on thiE oppositepa g e. : : : CHN-17 82.18% .'• •'-.'-".: ."--"-."." ATL-2 8 82.18% MAR-17 77.22% ALBF-01 72.18% JAX-21 65.00% ATL-2 3 82.12% MBL-03 77.00% RME-02 72.10% MACF-03 64.44% ALBF-03 82.10% MFSF-09 76.93% ATL-10 71.89% MBLF-06 64.34% ATL-37 82.07% JCM-03 76.91% GVL-01 71.71% ATL-34 64.28% JCMF-04 82.03% NSHF-06 76.80% NSH-15 71.68% CLV-01 64.25% MEDF-01 81.82% MFS-13 76.78% JAX-05 71.66% NSH-02 64.20% MAR-29 81.60% NSH-22 76.78% MNTF-04 71.53% NSHF-U 64.09% MAC-04 81.57% FOL-01 76.72% CHN-03 71.38% NSH-08 63.60% WRG-03 81.46% ATL-01 76.67% BIR-07 71.36% JTNF-01 63.51% SCA-02 81.28% MFS-12 76.51% JAXF-04 71.24% JAX-15 63.25% MNTF-03 81.25% IAX-09 76.28% NSH-16 71.23% JAX-13 62.64% MFSF-02 81.21% CBT-02 76.28% LEXF-07 71.17% LEXF-05 62.58% MBLF-05 81.17% AXF-03 76.27% NSH-03 71.05% BIR-11 62.57% JAX-10 81.12% MFS-07 75.84% DOAF-01 70.97% JCMF-07 62.38% SAV-02 81.12% fCNXF-09 75.83% KNXF-04 70.85% JAX-03 62.36% BIRF-04 81.06% MFS-06 75.72% GFLF-01 70.72% ORL-09 62.28% TUL-01 81.00% NSHF-04 75.56% NOLF-01 70.63% JAXF-02 62.02% HTV-02 80.96% ATLF-01 75.29% ATL-43 70.62% JAX-11 61.08% KNX-02 80.67% LEXF-01 75.26% JAX-16 70.60% ATL-52 60.83% NSHF-09 80.54% BGK-01 75.17% BIR-13 70.44% SAV-06 60.72% MNT-02 80.35% \TL-51 75.14% KNX-03 69.98% JAXF-01 60.63% TIF-01 80.23% CMF-01 75.03% CHN-16 69.65% JAX-22 59.38% MBL-01 80.11% MSH-11 74.83% KNX-15 69.56% GPMF-04 59.23% ATLF-16 80.07% LEXF-06 74.77% JAX-04 69.43% MBL-05 58.94% MNT-01 79.94% ZBTF-01 74.73% ATL-46 69.30% ORL-08 58.44% MFSF-03 79.86% =>HC-01 74.61% BIR-09 69.27% JAX-14 58.30% JCMF-02 79.79% \TLF-15 74.51% NSH-OI 68.94% SAV-07 57.22% JCM-06 79.78% ] ?GA-01 74.44% ATLF-02 68.89% LEXF-09 57.19% JAX-08 79.78% :HN-06 74.44% CHN-04 68.82% CHN-02 56.17% LEXF-03 79.72% N1SH-05 74.44% ORL-05 68.81% GVMF-01 55.89% AUGF-01 79.58% 3CA-01 74.41% ORL-04 68.56% MFSF-04 55.63% ATLF-14 78.89% ) CMF-05 74.34% NSH-06 68.32% CDR-01 54.96% HTB-02 78.74% ATL-02 74.17% BIR-05 68.05% NSH-09 54.90% KNXF-02 78.74% ( TVMF-04 73.81% ATLF-05 67.91% ORL-06 53.72% KNX-08 78.51% ATLF-06 73.75% BIR-12 67.81% CHN-08 52.61% JCM-05 78.46% TMPF-01 73.57% CLTF-01 67.48% ATLF-17 50.77% AUB-03 78.44% MAC-09 73.33% RME-03 67.13% ORL-01 49.27% BIR-10 78.26% BIR'08 73.24% ATL-07 66.70% JAX-12 48.26% NSHF-10 77.80% MFS-08 73.22% BKJF-04 66.48% MFSF-07 46.28% DLT-01 77.62% LFXF-08 72.91% GPMF-02 65.94% BWK-01 44.06% MBL-08 77.62% ATLF-03 72.85% JCMF-03 65.92% MNTF-05 40.39% Z^LJM i n 72.72% NSH-21 65.37% CLTF-02 77.57% TOTPM MQUS. ALB-02 77.56% MFSF-08 72.23% LEXF-04 65.11% BIR-04 77.54% MNTF-02 72.18% CAL-01 65.11% 79.80 % y BMT Program Revamped: In•**""* Store for Trainees * An overhaul of Krystal's Basic Management Training trainees more than one day to get through day one's program has produced a leaner, meaner version designed manual, for instance — you have to complete the day to ensure new management trainees have the tools they one manual before you advance to day two." need to run a shift at Krystal successfully. And while the previous program put most of the The new BMT program, shortened to responsibility on the trainee, the new four weeks of on-the-job training and program is trainer driven, Baker said. three days of classroom training (the "You've got to have a certified trainer in Basic Management Course), compacts place in a certified restaurant to be suc­ the necessary information into a chal- * cessful with this," he said. lenging learning model designed for max- f • I To ensure each market has a imum efficiency. "BMT used to be 12 qualified trainer in place to roll out the weeks; now it's 20 days," said Gary Baker, * new BMT program, Krystal is conducting manager of training and development. train-the-trainer sessions at the home "This is high impact training." ^^^^S office in Chattanooga. One session took The new course is contained in the place in November; another is scheduled updated BMT manual, which now for January. The certification classes will includes 20 one-day "mini manuals" for the trainee. Each occur on an ongoing basis as needed. mini manual contains the activities and resource materi­ The certification class is mandatory for any trainer who als used on that given day of training. A trainer's guide is plans to teach the BMT program, Baker said. "This simply included, too. verifies that the trainer has the skills necessary to suc­ "Now, the trainee must complete each book in cessfully train others," he said. sequence to advance through the course," Baker said. The new BMT manual will be available to those trainers "While there's no formal schedule — it may take some who complete the train-the-trainer class. Franchise Openings... Company Openings...

• 9/26/00: New Capital Dimensions • 7/10/00: Golden Bird Enterprises •10/25/00: (HH-08 on Broad Street in Chattanooga, Tenn. MACF-04 on West Clinton Street in dray, Ga. BIRF-06 on Forrest Road in Hueytown, Ala. • 9/14/00: Faye Foods • 7/10/00: Jerrico Foods MFSF-io on Highway 51 North in Covington, GPMF-05 on Canal Street in Gulfport, Miss. Tenn. • 10/25/00: TAG Management Group • q/izj/oo: Goldt, LLC BIRF-07 on East Meighan Boulevard in ATLF-zo on Jimmy Lee Smith Boulevard in Gadsden, Ala. Hiram, 6a. • 10/29/00: Cherokee Foods BKJF-06 on West Elk Avenue in Elizabethton, •8/21/00: Georgia-Carolina Foods Tenn. ATLF-iq on Eatinton Highway in Madison, Ga. • 11/6/00: Tim Beals & Jimmy Mortimer •Woo: IB. of Starke, Inc. BGKF-01 on South L Roger Wells Boulevard in MFSF-10 Opens Glasgow, Ky. The Covington, Tenn, Krystal (Faye Foods) celebrated its grand opening with a JAXF-06 on Wot Highway 90 in Lake City, Fla. Froggy i)4 remote including Dixie (hicks ticket giveaways, a color TV drawing and (ace painting for the kids. ib Campaign 2000 Comes to Krystal Aviation On the Friday before the 2000 presidential election, BV ^thy Owsley Moates, Krystal Aviation CSR Krystal Aviation went on Red Alert. We were told that a major campaign event was to take place on our ramp Monday morning. Republican presidential nominee George W. Bush was com­ ing to Chattanooga! Aviation Director Terry McDowell assem­ bled his troops, and the Herculean task of transforming an FBO hangar into a national event location began. Krystal employees Patrick Kelly and Brad Crane went to work as field commanders, spending the next 48 hours per­ forming a minor miracle. Plans were made and tasks assigned. Crews relocated planes so platforms could be built. Miles of electrical wiring was run for lights and sound equipment. The Secret Service and local law enforcement secured the area. Balloons, posters, and banners appeared all over Airport Road, as thousands of locals turned out to be part of Thousands in Chattanooga helped welcome Republican presidential candidate George W. Bush to the area. the event. Local and national media filled the lobby. Elected officials from around the area came to meet their constituents. Country music singers posed for pictures with staff. When Bush's plane touched down, the crowd went wild. The Chattanooga rally was a huge success; video clips of the event were shown repeatedly on CNN News. As Bush left, he shook hands with as many people as he possibly could, but not before he thanked McDowell and Krystal Aviation for providing him with one of his last campaign stops before Election Day. Gazer Contest Answers Thanks to Kel-San for providing the questions for the prep areas. These stations have the proper anti­ 4th Quarter Gazer Contest (see Page 18)! Answers to the microbial hand soap and supplies, while the stations questions are as follows: found behind the counter and in the food prep areas 1. True. Hot water helps the detergent dissolve grease also have a hand sanitizing gel available. and other soils quicker. 7. True. It is recommended that after using the rest 2. True. All chemicals should be considered hazardous, room, employees wash their hands a second time and employees should read and familiarize themselves before returning to work. with all labels, warnings and MSDS Sheets before False. Never wear jewelry (except for plain wedding using. bands) while preparing or cooking foods. 3. True. The parts per million of Quat Rinse Sanitizer False. Even if you are wearing gloves, after sneezing or used in the 3rd compartment dish coughing, you must properly wash sink should be no more than 200 and dry your hands and then PPM and should be checked using change into a new pair of gloves. the Quat test strips after the initial San Meaning Korner 10. True. Employees must properly wash fill. Kel-San also recommends that it their hands after changing into a be checked regularly while in use. If fresh pair of gloves using the anti­ the PPMs fall below 150, Kel-San microbial hand soap found at the recommends dumping and refilling. handwashing stations. Do not use 4. False. A minimum of 60 seconds is required and items the hand sanitizing lotion or gel in its place. should be completely submerged. True. Even garbage containers need to be cleaned and 5. False. Pots, pans, tabletops, and non-food contact properly sanitized to help reduce the risk and spread surfaces such as brushes and trash containers need to of disease and to control offensive odors. be rinsed before sanitizing. False. All spray bottles used to dispense chemicals 6. False. Never use the three compartment sink to wash must be properly labeled. Kel-San has three properly your hands. Use only the handwashing stations found labeled spray bottles available (Super 4, Window/ in the restrooms, behind the counter and in the food utility cleaner, and Sanitizer spray bottles). v by Gregg Whalen, Krystal corporate risk manager A Good Defense is the Best Offense

t's football playoff time again! next task? Being prepared means having a Football teams work extra hard to For example: game plan for each task you com­ I prepare for this challenge; offen­ • Put out your wet floor signs plete. Discuss your restaurant's game sive and defensive plans are well BEFORE you begin to mop. This plan with the coach, your manager. thought-out. A favorite quote of mine gives customers and your Correct unsafe practices when you is "a good defense is the best co-workers warning that the floor can, and alert your coach to the ones offense," meaning that being proac­ will be wet. you cannot fix by yourself. tive is your best defense. This quote • Ask for assistance BEFORE you try Remember: you are a valuable mem­ works off the football field, too. to lift something by yourself. Once ber of your restaurant team. Your How can we stay on the offense you have lifted something too team cannot win if its players are when it comes to safety? We can heavy, it is too late. injured. And if the crowd — our cus­ avoid unsafe practices if we first iden­ • Make sure to gather all the tools tomers — get hurt, they will quit tify a task, then take the necessary you need to complete a project coming to the game! So, make sure steps to ensure it is completed safely. BEFORE you begin. This eliminates you have a good offense to help keep Think before you start ... what is the the need to leave your work area the team and the crowd safe at best and safest way to go about your unattended. Krystal. Words from the WEB Knoxville #6 on Clinton Highway in Knoxville, Tenn.: Macon #9 on x*v "Ok, as dumb as this might sound... my best friend and I are both poor college students. We love Zebulon Road in Krystal, simply because we get a lot for the value of our dollar. Seriously, if Krystal was a mecca, we would probably pray to it five times a day or so. Thank you for being open for me when I Macon, Ga.: need you most. "I come here at least once —Heather Patterson in Knoxville, Tenn. a week and as always the employees were on top of Atlanta #34 on Highway 138 in (onyers, Ga.: their game. Although the store was very busy for "Things have really improved since I e-mailed you last. I am thoroughly impressed with the serv­ lunch on Tuesday, the ice and people now working there. Thank you for getting people who care about helping their service was excellent. This store is one of the few that now matter what is going on, it is clean. customers and take pride in what they do. The General Manager is wonderful and has been there The management of this store is to be commended. Thank you for a job well done." every time I have been in there. I have not waited more than five minutes for my food the past —Sue Stepp in Macon, Ga. two times I have been in there. I really want to commend their TEAM on a job well done." —Karenda Martin in Covington, Ga. Chattanooga #19 on Highway 136 in Trenton, Ga.: Orlando #3 on Orange Blossom Trail in Orlando, Fla.: The dine-in customer stated that she left her purse. She was thrilled when she called 30 minutes later than it had been found and was completely intact since it contained her vacation money. "Mostly I just want to say that [Assistant Manager] Keith Chaney was VERT efficient, polite and She also stated that the female manager and the female employee refused to take any reward professional. Please give that man and his crew a round of applause for me! Great job! Krystal for finding it and holding it for her. The customer was extremely pleased with their actions. Fan for Life..." —1-800 -4-KRYSTAI call from Deb Stapanik —Steve in Orlando, Fla.

28 Local Marketing News... Chattanooga, Tenn. Visitors to the new Lookouts baseball stadium kept track of the team's strikeouts with a Krystal billboard. For every strikeout thrown, Krystal and the Lookouts donated money to the Chattanooga Boy's Club. At left, former Chattanooga OAO Jeff Krause presents a check for $5,718 to Boys Club representatives. Knoxville, Tenn. Brickey Elementary School was the proud recipient of $686 donated by Krystal. The money was raised through Brickey Elementary "Benefit Nights"; Krystal donated a percentage of profits on Monday night sales from March through May this year. At right, Brickey Elementary School Principal Susan Turner receives the check during a school assembly. The check was presented by Senior Local Marketing Coordinator Amy Rae Dunn. Memphis, Tenn. The annual Halloween Hayride spon­ sored by the Memphis #3 Krystal on Stage Road in Bartlett, Tenn. (Faye Stiles, franchisee), is always a treat for young customers. At left, the wagon is loaded to take the cos­ tumed ghouls and goblins for a ride. Newly Assigned at Krystal... Regional Directors Standards Assessment Team Home Office (continued) • ]eff Krause, Northern Region • Greg Fuller • Tim Edge, Corporate Trainer • Jill Herbert • Drew Hammett, Help Desk Directors of Area Operations • Samuel Ullery Technician • Andy Abbafay, Chattanooga • Bradley Young • Teresa Harwood, Payroll Clerk • Sharon Schletter, Jacksonville, Fla. • Larry Bolden • Jerry Haynes, Warehouse Clerk • Michael Burkey, Daytona/Orlando • Alfred Heacock, Maintenance • Carolyn Murray, Regional Offices Supervisor Columbus/Montgomery • Camellia Brissett, South Region • Allison Holder, Accounting Administrative Assistant Administrative Assistant • Stacey Christ, South Region • Beth Jeffers, Bank Recon Ross Adkison, CHN-South Administrative Assistant Supervisor Andy Alsobrook, CHN-South • Marlene Cole, North Region • Brian Jennings, Director of Field ]ames Bozeman, NSH-South Recruiter Marketing Nicole Carey, NSH • Valerie Whitten, North Region • Mark Levis, Director of Franchise Timothy Doyle, JAX-East 3 Administrative Assistant Sales Damon Eyster, JAX-East B • Nadine Zenno, South Region • Duane Meefes, Maintenance Darin Frase, CHN-North Secretary Supervisor Charles Hawks, )AX~West • Trish Palmer, Application Marva Jefferson, JAX-NortA Field Marketing Specialist Sherry Johnson, KNX-South • Terri Pruitt, Local Marketing • Rusty Patterson, Manager of Thomas Kamowski, JAX-East B Coordinator, Memphis Franchise Systems Thomas Kamper, Florence, Ala. • Amy Rae Dunn, Senior Local • Henry Proctor, Franchise Area Victor Nixon, BIR-North Marketing Coordinator, Director Steven Ray, BIR-SE Knoxville, Lexington & Tri-Cities • David Reid, Chief Information Maurice Reid, Atlanta East A Officer Scott Sabulsky, Marietta Home Office • Kathy Ritland, Technical Writer Marcellus Smith, BIR-Cewtral • Carolyn Anderson, Help Desfe • John Sorensen, Maintenance Calvin Walk III, MFS-East Technician Supervisor Bradley Williams, Macon • Troy Causey, Warehouse Clerk • Alan Vandergriff, Help Desfe Maurice Reid, ATL-East A • Cindy Cook, Franchise Technician Administration Coordinator • Leslie Widener, Maintenance • Robert Craigo, Director of Training Supervisor • Randy Dover, System Engineer • Jeff Williams, Controller

JAMES from Page 7 James credits the company with helping her stay know what? I take chemo. What's making you look so focused on recovering. "It could have been devastating," down?' And they say, 'What, Mrs. James? You?' And I tell she said. "People called and checked on me, and that them, Yes. So don't be sad for me ... but don't make my helped me through it. If I had been around people who day harder, either.'" weren't positive, I'm not sure I could do it." Her Krystal While the future is still unclear for James, she plans to family in Augusta has been a major source of support for keep working and taking each day as it comes, good or her, and she praises her district supervisor, Leonard bad. "I enjoy working now. I just have to keep a positive Evans, for his influence, too. "Mr. Evans is best boss in outlook; I could not be here." the whole world," she said. "He tells me all the time, 'Miss James, don't overdo it.'" Editor's Note-. Breast cancer is the leading cause of death in women age These days, James uses her experience to instill in her 40-44. The earlier a diagnosis is made, the more effective the treatment. employees that they should appreciate life, work and rela­ Screening for breast cancer with X-ray mammography is highly recom­ tionships. "I'm not afraid to tell them, 'Look, this is where mended, especially in women over the age of 40. And breast self-examina­ I've been.' I don't allow them to mope. I tell them, 'You tion is extremely important, too. Ask your doctor for more information.

JO Five Directors Join Home Office Staff New Hires Bring Industry Experience, Expertise to Krystal

ive new directors have joined the large food service chains, including He has also FKrystal home office staff. serving as region marketing manager served as a "V Joining the company's management for Fried Chicken's West programmer/ team are Robert Craigo, director of Coast operation and holding the consultant training; Brian Jennings, director of director of field marketing position with Kentucky field market­ with Papa John's International. He Fried Chicken. ing; Mark also has experience in international As Krystal's Levis, director marketing, including positions in chief informa­ of franchise Kuwait and Poland. tion officer, sales; David As director of field marketing for Reid will con­ Reid, chief Krystal, Jennings will focus on local tinue to information store marketing efforts systemwide. improve the officer; and He reports to company's David Reid Jeff Williams, Gordon business-to- controller. Davenport, business and business-to-customer vice president communications through enhanced of Marketing. technology. He reports to Larry D. Robert (raigo Bentley, chief financial officer. Robert Craigo joins Krystal as director of Mark Levis training from Inc., a joins Krystal Jeff WilliamS joins Krystal as the quick service restaurant chain based as director of company's controller. Before joining in Corpus Christi, Texas. Craigo has franchise Krystal, he held positions in finance more than 22 years of restaurant sales from and accounting with Willis Corroon industry experience, including direc­ Louisville, Ky., Corporation in Nashville, Tenn., and tor of training positions with where he Mark Levis most recently served as director of Whataburger and T.G.I Fridays based worked for financial planning and analysis for in Dallas, Texas. Papa John's International Inc. as man­ Cracker Barrel Old Country Store Inc. Craigo will lead the company's ager of print marketing, and previous­ in Lebanon, Tenn. ongoing hourly and management ly, as franchise sales manager for the Williams is responsible for The training efforts, as well as manage all company's U.S. market. Krystal Company's accounting, pay­ training Levis is responsible for overseeing roll, accounts resource Krystal's franchise sales process, payable, cash development. including the qualification of new management He reports to franchise developers throughout the and other Roger Rendin, United States. He reports to Thomas finance-relat­ vice president Ragan, vice president of Franchising. ed endeavors. of Human He also Resources. DaVifl Reifl has held positions in the reports to Mr. Bentley. PC industry since 1981, including Brian Jennings director of information technology has worked positions with Fazoli's Restaurants with several and Checker's Drive-in Restaurants. Brian Jennings Jeff Williams V Modern fienuboards New Design Offers Ultimate in Style and Flexibility Krystal has designed new inside and outside menuboards that grab customers' attention while offering the ultimate in style and flexibility. The new menuboards were installed in 10 restaurants after the prototypes were tested at the Chattanooga # 19 Krystal on Highway 136 in Trenton, Ga. The panels are made of dozens of tracks which act as holders for menuboard strips or pictorials. The strips and picto­ rials slide into the tracks for display much like Krystal's currently used mod­ els, but the difference is in the flexible layout options of the new boards, said Nancy Hoover, manager of advertising and promotions. "The tracks can be removed in any combination, which allows us to be The new menuboards mirror the sleek style of the KP-2000 restaurant design, plus offer more flexible display of menu items and combo meals. more creative in our layout of our menu boards," she said. nism allows four panels to rotate on the boards, giving us Another great feature allows the inside menuboard to the ability to promote breakfast during the breakfast rush, be customized for different dayparts. 'A turning mecha- then turn the panels around to promote Krystals and combo meals during lunchtime," Hoover said. Outside, the presell board — the area that promotes combo meals before a customer reaches the drive-thru menuboard — is now illuminated to ensure customers can see the information even when it's dark. "This way, we ensure that we plant the seed in our cus­ tomers' minds before they pull up to order," Hoover said. Besides new features, the new menuboards also offer an updated look, too. Both the inside and outside menuboards model the KP-2000 building design, featuring white metal and chrome endcaps for a clean, modern image. The new boards will be a part of all new restaurant con­ struction for both company and franchise restaurants, and a plan is being developed to consider retrofitting Panels on the inside menuboard rotate, allowing restaurants to change the message they present to existing Krystal restaurants. customers depending on the time of day. Above, the Krystal combo panel may be used at lunch time, while the breakfast panel will be displayed during breakfast hours only.

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