When the minimum wage in the province of Ontario increased by approximately 21 per cent to $14.00 per hour on January 1, two franchisees in Cobourg, Ontario (about an hour east of Toronto), sent a letter to employees stating that benefits would be scaled back to offset the cost.
Other franchisees followed suit, cutting back on everything from medical insurance to paid breaks and a free drink at the end of a shift. While we could argue that some of these seem petty, there is an economic reality here of which we shouldn’t lose sight.
The increase in minimum wage will hurt franchisees, costing approximately a quarter million dollars per location. This is money that comes directly out of owners’ pockets. And it will hurt. Their profitability has been declining. About a year ago, they formed a franchisee association to bring this fact to the attention of the owner of the Tim Hortons brand, Restaurant Brands International (RBI)—months before anyone in Ontario even heard of a $14.00 minimum wage.
For managing their businesses to adjust to labour costs that could rise from 30 per cent to 43 per cent of franchise costs, franchisees have been labelled “bullies” for picking on workers by Ontario’s premier Kathleen Wynne and “rogue(s)” for messing with the Tim Hortons brand by RBI.
Quite the tempest. And nary a teapot to be found!
Advising the Franchisees
With an issue like this (which is not yet a crisis), if I were advising the franchisees, I would encourage them to not back down. I would strongly urge them to not stoop to the name-calling tactics of the premier and brand owner—to instead tell the honest story of how this impacts their stores, their families and their communities. I would also suggest that they consider focusing on the profitability of the Tim Hortons brand owner as a lever to get the corporation's attention.
The objective of any media relations activity would be to motivate the premier to acknowledge that franchisees are hard-working, tax-paying contributors to Ontario society and the communities in which they operate—ideally she should apologize for calling franchisees bullies—and to entice RBI to work with franchisees to find some middle ground while subtly reminding the brand owner that the minimum wage will soon rise elsewhere across the country.
This can only be done with a balanced, logical response—not by stooping to the name-calling tactics of the other players in this drama.
Advising the Brand Owner
If I were advising Restaurant Brands International, Inc., I would encourage them to sit at the table and listen—really listen—to what franchisees are saying. There are many hints that franchisees believe the brand owner is not listening— the formation of a franchisee association and an article in The Globe and Mail last September that highlights declining profitability.
As I’ve pointed out to clients for nearly 30 years, the phrase “you’re not listening” is either one or two things, and it’s their choice which. “You’re not listening” is always an early warning sign in issues management. If the warning isn’t heeded, “you’re not listening” can become the kiss of death in a crisis.
How likely is RBI to truly listen? Not likely, I’m afraid. A recent study showed that the very best organizations at listening devote less than one-third of their resources to listening—i.e. they talk twice as much as the listen.
For RBI’s sake, I hope they’re different. Right now, failing to listen may be the biggest threat to the Tim Hortons brand. (And make no mistake, other franchisees are watching.)
Advising the Government
If I were advising Kathleen Wynne, I would first urge her to quit being a bully by calling franchisees bullies. (If you’re interested in more about bullies, look me up on Facebook and read my post there.) And I would point out that she may have missed a glorious opportunity to come out of this smelling like a rose.
A quick search would have revealed that franchisees feel they’re being squeezed. Instead of calling them names to champion the downtrodden, she could have advocated on behalf of franchisees—perhaps not a bad thing to do during an election year.
She could have said that she knows they’re under pressure. But she could also could have used her spotlight to publicly encourage Restaurant Brands International to meet with franchisees and work out a solution beneficial to all. After all, as the company has publicly said: “Owner profitability is the backbone of our system.”
A media-savvy premier would encourage them to put their profits where their policy appears to be.
Contact Eric if your organization needs assistance with managing polarization effectively.
First of all, it offers protection during media interviews and hostile exchanges during all forms of presentations, when being quoted out of context or having words twisted is an issue.
Does your legal counsel tell you to pause-answer-stop because he or she wants you to reduce or eliminate your credibility as a witness? No, the lawyer wants you to protect yourself and protect your credibility.
Does the lawyer want you to pause-answer-stop so that you can put the case or organization at risk, which will then translate into increased billable hours? No. Although that's a bit tougher to answer (especially the part about more billable hours), the lawyer tells you to pause-answer-stop so you can protect the organization.
If pause-answer-stop offers protection in a court of law, wouldn't it offer similar protection in a court of public opinion when someone is answering questions from a print journalist, or when a presenter is answering questions from a hostile community group, a semi-hostile management team, or a board of directors?
It can. And it does. If you wish to reduce the risk of being quoted out of context by print journalists, the simplest solution is to reduce the context. Stop talking.
Communicate More Effectively
But beyond that, pause-answer-stop enables someone to communicate more effectively. By asking more questions, the person or people receiving the information can better educate themselves about the topic in question to create better understanding.
Some years ago, we decided to put ceramic tile in our entranceway and kitchen. We were undecided about whether to do the job ourselves or to hire a contractor.
One evening, I went to my local Home Depot to do some research. I had the good fortune of encountering a very confident young man who had obviously installed a lot of ceramic tile. How did I know he was confident? He did not feel compelled to talk endlessly whenever I asked him a question.
In fact, he simply answered each question and stopped talking, waiting patiently for the next question.
In the 15 or 20 minutes that we chatted, I easily asked more than 100 questions. My son was with me and, as we were walking out of the store he remarked: "Dad, that was amazing. I can't believe how much I learned. I know exactly how to install tiles and what needs to be done. You asked great questions."
Actually, I didn't ask great questions. I was simply given the opportunity to ask a lot of questions -- which I would never have gotten if the person answering did not pause-answer-stop.
We ended up hiring someone to install the tiles, so some could argue that he lost a sale and didn't achieve his organization's objectives. However, that's short-sighted. The reason? Based on that experience, this local Home Depot is my first stop whenever I'm even thinking about any kind of improvement to our home. I don't know who's coaching them, but I have been pleasantly surprised by the ability of a number of their staff to answer questions clearly, concisely and effectively.
The same applies to other situations. Want a reporter to trust you? Want the management team or board of directors to trust that you'll deliver? Want to be more transparent? Teach yourself the same simple tactic.
Pause. Answer the question asked and only the question asked. Stop talking.
The journalist is steering the interview to why Adobe charges Australian users $1,400 more to download the same Creative Suite software than users in the United States. It seems like a reasonable question. After all, if the premise is true, it’s cheaper for Australian users to fly to Los Angeles to purchase a boxed copy than download the software from down under.
The CEO, however, doesn’t want to go there. He keeps trying to take the vehicle over a bridge to the destination that appeals to him—his belief that “the Creative Cloud is the future of creative.”
But the journalist ignores the bridge and keeps steering the vehicle to where he’d like it to go.
Who wins? In this case (and in many, many others I’ve seen), not the spokesperson.
By the end of this YouTube clip, other journalists start asking why Adobe charges more. The story then becomes:
- It is cheaper to fly to US than buy Adobe software in Australia
- Adobe has its head in the clouds over pricing
- Adobe Catching Fire For Gouging Customers Down Under
The best interviews are carefully negotiated in advance, with the intent of building to win-win outcomes. With negotiation, Adobe would discover that the journalist is intensely curious about a pricing issue, and the pricing destination will need to be visited before any new destination can be considered.
If the company is unprepared to visit that destination, it should not conduct a news conference to announce a new product offering. The risk is too great. Any credible media training consultant would tell them that.
If, as a result of effective negotiation, the pricing issue is resolved with a positive announcement, the vehicle can then be driven over the new bridge of “the Creative Cloud as the future of creative.”
The journalist wins because the story can answer a question that the journalist clearly states “readers have been asking.”
The company potentially wins twice.
Not only could it have a positive announcement for Australian customers if pricing can be synchronized, it is demonstrating what lies over the bridge with a business partner that actually listens to their concerns.
About the Author
Eric Bergman is Canada’s most experienced and credentialed media training consultant. Media training has been his core business for more than 25 years. During that time, thousands of spokespeople from five continents in the private, public, corporate, professional, entrepreneurial and not-for-profit sectors have benefited from Eric’s approach, coaching and feedback.
Eric holds a bachelor of professional arts in communication studies from Athabasca University and a two-year diploma in advertising and public relations from Grant MacEwan College.
He is an accredited business communicator (ABC), an accredited public relations practitioner (APR), and a master communicator (MC)—which is the highest distinction that can be bestowed upon a Canadian member of the International Association of Business Communicators (IABC). In 2014, he was named a member of the College of Fellows of the Canadian Public Relations Society (CPRS).
Contact Eric if you’re interested in applying his proven approach. Your spokespeople will gain the competence and confidence to manage exchanges with journalists to win-win outcomes, while protecting themselves and their organization every step of the way.