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 Drink 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. ] The 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.