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Interview with Tom Garrett, President and CEO, Arby’s Restaurant Group

Tom shares some innovative ideas from Arby’s appreciation practices and why they are so appreciation oriented.  He also highlights some of the specific benefits he has seen from the direct link between the employees he’s serving as President and CEO and the customers that they’re caring for and they’re serving.

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Transcript

CE:  Hey, this is Chester Elton with your Carrot Culture Podcast, coming to you live, and in color, from beautiful Atlanta, Georgia.  It’s a real pleasure to invite to our podcast today Tom Garrett—I know, like Garrett the Carrot, which is awesome—who’s the President and CEO of the Arby’s Restaurant Group.  Welcome to the podcast.

TG:  Thank you, Chester.

CE:  Hey, listen, we just had a ton of fun with your leaders.  You guys really “get” recognition, I mean, at a deep level.  Tell me why that’s important in your culture.  Like one of your values is Fun and People.  Why is that so important to you? 

TG:  Well, if you think about the restaurant business, and it’s…all the negative comparisons in our society, you know, we think that creating opportunities for people to win is part of what we do.  So, I’ll go into a restaurant and I’ll look at people’s goals, that are on the board, and some people it’s to learn to speak English, some people it’s to get promoted, some people it’s to buy a car, so we have 35,000 employees.  They’re all trying to grow.  They’re all trying to improve and we have to figure out what makes all those people tick.  Plus, they all, they all enjoy being recognized and patted on the back.

CE:  Yeah, when you talk about these goals about being promoted and stuff, I mean, you started with Arby’s when you were 18? 

TG:  18 years old.  I started, actually as an assistant manager out of, over in a restaurant in Gaston, Alabama, and so I’ve kind of been the “up through the ranks” guy, but I had the opportunity to work for a franchisee at the time.  The name of the company was RTM.  RTM stood for ‘results through motivation,’ so for years I grew up understanding how powerful it is to recognize and reward people and help people grow.  So, it’s been part of our culture and that’s transtitioned to become a part of Arby’s culture, so…

CE:  You know, that is so great.  I mean, I love when companies have a bigger mission.  I mean, yeah, you have restaurants and you sell food, but that’s not really what you do is it?  You’re developing leaders.

TG:  Absolutely.  Absolutely.

CE:  That is so cool!  Well, tell me some of the recognition things that you do that you’re particularly proud of.  I mean, are there certain things that Arby’s does on this line that you think are a little unique to you?  People are always looking for ideas and, clearly, you guys are best-in-class in some of this.

TG:  Well, as you know, one of the things that happens, the bigger companies get, they just lose touch with what happens in each restaurant.  And one of the things we work very hard to do is really push down accountability, push down ownership to the absolutely lowest denominator.  And, you know, to that point, we have an Operating Partner program where restaurant managers can sort of buy into the profitability of the store.  They run it like they own it, which means they put a little more care and effort into their employees.  They put a little more care and effort into taking care of their guests, and so forth.  And I think if it’s one thing that makes us incredibly unique, outside of just the total number of awards that we do as a company, it is really trying to foster this “ownership mentality”, which, you know, for a lot of companies that grow and become beaureaucratic and lose touch with, really, what goes on with its people and the challenges they face, I think that is one of the things that makes us stand out.

CE:  Not only are you being good citizens, but there’s a business results end of this and what are you seeing as far as how you treat people?  What’s the impact to your bottom line?  Is there one?

TG:  Well, we think it’s immeasurable.  But, first of all we think it’s, you know, when we look at, you know, our growth, and so forth, and of course we have huge business goals to not only grow Arby’s, but to grow with the acquisition of other brands, and so forth, we think that the denominator that really allows us to be able to grow at all is people.

CE:  You have three things that you hammer home all day.  The first one was “people”.  The next one was “customers” and the third one was…?

TG:…”hitting our numbers”. 

CE:  “Hitting our numbers”, yeah.

TG:  You know, if you have people engaged in all three of those things, you’re going to win.  You’re going to win!

CE:  Well, you guys are winning a lot lately and you guys are totally engaged.  Now, you know obviously we always look at things through the recognition lens, you know, that powers and accelerates results and what not.

TG:  Recognizing employees is important, but you know, I think there’s…you take care of your employees, they’re going to take care of your customers.  And I think helping people understand that, that even if people don’t necessarily fully buy into the all the employee recognition and so forth, helping people understand that there is a direct link between your people that you’re caring for, and you’re serving, and the customers that they’re caring for and they’re serving.  There is a direct link.

CE:  That’s awesome.

TG:  And, that’s what keeps us going.

CE:  Is there any measure you use with your managers to make sure they’re doing it or is it by observation?  Do you have—because I know you guys are big on numbers—do you look at who’s using your programs and who’s not?  Do you look at turnover numbers?  Are those some of the metrics you use?

TG:  We look at turnover.  We look at guest numbers, and so forth, but you know, while we look at metrics, and we’re metrics-based, we’re very hands-on, and the best way to really know what’s going on is go out and visit stores, talk to employees, talk to customers, talk to managers—“How are you doing?  How are we doing in the corporate office?  Give us feedback, and so forth.”  That resonates more than anything, is really getting out and talking to people.

CE:  Perfect.  Hey, listen Tom, thanks for your time.  I know you’re a real busy guy, and it’s late and you guys started, like, at 8 o’clock this morning, but listen, I have enjoyed meeting your people more than you can imagine.  This is more fun than a human should be allowed.

TG:  Very good.

CE:  They’re engaging.  We’re big fans of Arby’s and we hope you will become a big fan of the Carrot.

TG:  Excellent!

CE:  I’ve got one little thing for you, a last little presentation.  This is the official Carrot lapel pin.

TG:  Oh my goodness!

CE:  Ooooo…

TG:  Oh my goodness!

CE:  Ahhhh…made by the same guys that made the Olympic Gold Medal.  I hope you wear it with pride.

TG:  Very good.

CE:  I love, I love talking to leaders that “get it” and you get it!  Thanks so much for your time.

TG:  Thank you.

CE:  Awesome.