Taco Bell Franchisees Remain Resilient

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. January 19, 2009

JANUARY 19, 2009 - 2008 was a tough year for restaurant operators and it only seems to be getting tougher. According to Bureau of Labor Statistics, over 2.6 million jobs were lost in 2008, the worst jobs performance since 1945.

With consumer sentiment at historical lows, retail sales in December 2008 were down 9.8% versus December 2007. Meanwhile, the outlook released last week by the International Council of Shopping Centers calls for a 6.1 percent decline in total retail sales during the first six months of 2009.

While it may appear that Chicken Little's mass hysteria is prevailing, it is important to note that many quick service restaurant chains and franchisees have posted impressive sales growth. McDonald's corporation reported 7.7% comparable-store sales growth in November. Burger King and Yum Brands' business units Taco Bell and Pizza Hut have also posted strong growth. Based on conversations with several multi-unit Taco Bell franchisees using JobApp Network's hiring management system, many units experienced 8-10% increases in comparable-store sales for 2008.

According to Rodney Walker, the president and co-owner of 42 Taco Bell and KFC restaurants in Michigan, 'while comparable-store sales are up significantly, we always focus on the fundamentals. Rain or sunshine, recession or economic exuberance, we have always believed that the key to multi-unit success is people, people, and people.' Rodney continued to say, 'for this reason, we decided to pilot the JobApp Network hiring management system for franchisees earlier this year-and now have signed a multi-year contract for all 42 of our restaurants after extremely positive results and feedback from our managers.' According to Walker, 'the true advantage of JobApp over other solutions is that JobApp is extremely effective with crew positions, not just management positions. Further, JobApp includes the ability to accept to applications by phone and web for the same price.'

Rodney Walker, and his business partners, started in 1987 with a single Taco Bell restaurant in Michigan. Today they successfully operate 42 restaurants with their sights set on 100.

Gordon McKinnon, another Taco Bell franchisee, who also started with a single restaurant, now co-owns and operates over 20 restaurants. McKinnon stated that, 'a lot of operators believe that hiring in today's high unemployment environment is easier. I would argue that unless you have the right tools in place, it is actually more difficult because the haystack has become much bigger.' He went on to state, 'we have been using JobApp Network's hiring management system for Taco Bell franchisees since 2007 and have experienced strong results and excellent feedback from our managers. I believe that JobApp Network has been the difference in improving our ability to hire better people and has greatly reduced the amount of time our managers spend on hiring.'

JobApp Network's Taco Bell restaurant employee hiring management solution has been in use since 2007 and has had outstanding success. JobApp Network also provides solutions for other leading QSR restaurant brands, including Church's Chicken, Burger King, KFC, Pizza Hut, and Arby's.