Charitable Giving | July 2013 | By Mary Avant
Call of Duty
It's a sad reality that many find difficult to accept: A shocking number of U.S. veterans are struggling to find a job and, even worse, are often left homeless.
A report from the U.S. Veterans Administration shows the number of veterans returning home from Iraq and Afghanistan who end up homeless has doubled in just two years, with more than 26,500 veterans living on the streets or at risk of losing their homes. And while the unemployment rate for veterans fell by 2.2 percentage points it 2012, it still remains at a high 9.9 percent.
Timothy Lewis was living proof of these bleak statistics. After spending three years in the Navy—during which he served as a machinist in Malaysia, East Timor, and Thailand—he was faced with a civilian world full of economic uncertainty. The 23-year-old found himself on the streets of San Diego with no job and no roof over his head for five long months.
But, channeling the spirit so many in the military possess, he didn’t give up. Instead, he turned to People Assisting the Homeless (PATH), an organization working to end homelessness throughout Southern California. Through the program, he was given a list of job leads in the area, one of which pointed him to a Firehouse Subs unit in San Diego.
Store owner Charlie Glandling was impressed with the drive he saw in Lewis during the interview process. “It was just his go-to attitude, and I think that comes probably from the military background,” Glandling says. “Not accepting ‘no,’ but [asking], ‘What is it I can do to get this job?’” From the day Lewis joined the Firehouse team last October, Glandling says, the veteran has stayed true to this drive and tenacity.
Lewis’s story is just one of many that illuminate the ways in which quick serves are doing their duty to help those who lay down their lives in defense of the country. When they’re not bringing vets on staff, they’re often creating incentive packages to attract veteran franchisees, offering on-the-job training, or writing checks to veterans organizations. And though this assistance is generally given without a single thought as to what they’ll get in return, operators can receive a huge payoff: top-notch employees and franchisees.
Much to his disappointment, Tariq Farid, CEO of Edible Arrangements, says it took him several years to understand the true power of veterans in his company. “I personally never really paid attention to what made them so unique,” he says. “You just called them great entrepreneurs and said, ‘Wow, these people are really good.’ But then you tend to notice some things that they do and, come to find out, they spent either very little time in the military or a lot of time in the military, and they had those disciplines of taking things and running with it and being focused.”
This discipline and unparalleled work ethic is ingrained into soldiers by the military and carried throughout the rest of their career, Lewis says. “[The military] teaches you to be there where you’re supposed to be at the time you’re supposed to be there,” he says. “Somebody tells you to do something, you do it. You don’t ask why or tell them no or get all fussy about it.”
Veterans are also natural-born leaders who understand what it means to have somebody’s back and to work in a team environment, says Justin Livingston, director of global franchise development for Hawaiian coffee and smoothie brand Maui Wowi, which actively seeks veterans as franchising candidates. “There just isn’t a better candidate out there for us,” he says.
Because many processes in the military are highly structured, veterans enter civilian jobs with the ability to follow procedures and rules seamlessly. “The discipline, the chain of command, and the standard operational procedures that you live and die by in the military, that truly works and that’s why I believe franchising is a great mechanism for anybody, but certainly for a military veteran,” says Mike Manzo, chief operating officer of Jersey Mike’s Subs, a brand known for recruiting veterans and contributing to veteran organizations.
The huge contribution veterans make to the health of the U.S. economy can’t be dismissed, either. According to an International Franchise Association (ifa) Education Foundation survey, one out of every seven franchised units in the U.S. is owned and operated by a veteran. These operators employ more than 800,000 people and contribute more than $41 billion to the U.S. GDP.
But the relationship between veterans and limited service isn’t one-sided; foodservice has a lot to offer former servicemen, too, including the guidance and training they need to successfully transition to a healthy and functional civilian life. In addition, being involved with quick service—whether as an hourly employee or a franchise owner—allows returning warriors to connect with the community once again, Livingston says. “It gets them into communities and interacting with people and kind of plugs them back in, which can be really difficult.”
Creating a smoother path and greater job opportunities for veterans were two primary goals that led to the creation of the VetFran program. Launched in 1991 in an effort to aid Gulf War veterans in their transition into civilian life—and relaunched by the IFA after the September 11 terrorist attacks—VetFran now partners with more than 560 companies across a wide range of industries to provide best-deal incentives for veterans interested in franchising.
Since making a commitment in November 2011 to recruit 75,000 veterans and their spouses—in addition to 5,000 soldiers and veterans wounded during service—to franchising by 2014, VetFran has made impressive progress. Nearly 65,000 veterans have entered franchising in the last two years alone.
Josh Merin, senior manager of research and strategic initiatives for the IFA, says franchising is a business in which veterans tend to thrive. One VetFran franchisor, for example, recently studied veterans’ performance within its system, finding that each veteran franchisee ranked in the top 85 percent of the system.
Franchising is also a business that makes veterans happy, Merin says, citing a November 2012 VetFran survey in partnership with Franchise Business Review that showed veterans have higher satisfaction rates with franchising than the majority of franchisees.
But while veterans excel in the world of franchising, financial barriers mean it’s often a struggle to get started in the industry. That’s one reason many quick-service brands offer incentive packages to make ownership easier for ex-military individuals.
Baskin-Robbins’ program, for example, waives its initial $25,000 franchise fee for veterans, in addition to charging nothing in royalties for the first two years (and only charging a fraction of the royalties for the following three years).
“That’s an enormous pickup for a veteran to walk into an environment with zero franchise fee,” says Bill Mitchell, senior vice president and brand officer for Baskin-Robbins. He adds that, in crafting this incentive package, the brand wanted to ensure veterans weren’t forced to invest their life savings directly after completing their service. “In my mind and my analogy, we built an annuity and said, ‘Let us help you in your transition.’”
Maui Wowi offers a veteran discount, helping it to a “Military-Friendly Franchise” designation three years in a row by G.I. Jobs magazine. “That shows how serious we are,” Livingston says. “It’s our humble way of saying ‘thank you’ to folks for the service that they have in their background.”
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