July 8, 2020

The Best Business Leader in America? | Kat Cole on Pomp Podcast with Anthony Pompliano

Key Takeaways

• If something is consistently going wrong and you’re the common denominator, you need to change your actions
  • “It’s not them, it’s me and what do I do about that and how do I figure it out?” – Kat Cole
• “Anytime you’re criticized, assume first that it’s correct” – Kat Cole
  • Then look at what parts of it are true and which aren’t
• Seek experience, not money
• College graduates usually take one of three paths:
  • Join an existing large corporation
  • Launch your own company
  • Join a startup 
    • Pomp recommends doing the last one. You’ll learn a lot and if the startup becomes successful, it will be a huge boost on your resume.
• If you want to know where the action is, get close to the transaction
  • “The people who are closest to the action know what the right thing to do is long before the leader does” – Kat Cole
• Questions to ask frontline workers and managers:
  • When do we say ‘no’?
    • If customer or employees are asking for something consistently over time, then there’s an employee or market opportunity there
  • What do we throw away?
    • This will help you identify what resources are being wasted
  • If you were me, what’s one thing you would do to improve the business?

Intro

• Kat Cole (@KatColeATL) is the President and Chief Operating Officer of Focus Brands, a company doing nearly $5 billion in annual revenue. She is the former president of Focus Brands’ subsidiary Cinnabon. Prior to that, she was an Executive Vice President of Hooters.
• Host: Anthony “Pomp” Pompliano (@APompliano)

Books Mentioned

• Kat says Give and Take by Adam Grant is the most important book she’s ever read
  • The book explains a lot of what Kat believes in and codifies it

About Kat Cole

• Kat is currently the President and COO of Focus Brands
  • Focus owns Schlotzsky’s, Carvel, Cinnabon, Moe’s Southwest Grill, McAlister’s Deli, Auntie Anne’s and Jamba brands
• She grew up in Jacksonville, Florida
  • Kat’s father was an alcoholic so her mother took her and her siblings and moved away. Kat’s mother worked three jobs to support the family.
• At 17, Kat went to work for Hooters as a hostess
  • At 19, she was opening Hooters franchises around the world
    • She helped train employees, managers, and get the business off the ground
      • At 20, Hooters offered Kat a corporate position. She dropped out of college and took it.
        • “By the time I was 26, I was vice-president of the company” – Kat Cole

Leadership Lessons From Hooters

• If you’re only humble and curious, you’re a student and no one will follow you
• If you’re only courageous and confident, you’re a bull in a china shop and people will perceive you as an asshole
  • Be humble and curious enough to ask questions, but also be courageous and confident that you can figure things out
• If something is consistently going wrong and you’re the common denominator, you need to change your actions
  • “It’s not them, it’s me and what do I do about that and how do I figure it out?” – Kat Cole
• “Anytime you’re criticized, assume first that it’s correct” – Kat Cole
  • Then look at what parts of it are true and which aren’t
• You have to be able to admit you were wrong and explain what and why tasks are important  

Climbing The Career Ladder Quickly

• College graduates usually take one of three paths:
  • Join an existing large corporation
  • Launch your own company
  • Join a startup 
    • Pomp recommends doing the last one. You’ll learn a lot and if the startup becomes successful, it will be a huge boost on your resume.
      • This is essentially what Kat did. She went from waitress to vice-president at Hooters in a short period of time.
• When you get promoted, don’t let being part of the crew hold you back, you have to step up and now lead your peers 
• “Respect the experience, culture, and ways of other countries and other people” – Kat Cole
• Seek experience, not money:
  • “Anything that tried to get me to trade off learning for cash was not an acceptable trade-off then and it’s not an acceptable trade-off for me now” – Kat 

Lessons From Cinnabon

• Kat eventually went back to school to get her MBA (certain programs allow you to enroll without a bachelor’s degree) and later became the President of Cinnabon
• Once at Cinnabon, she worked in the restaurants and spent time with the franchisees to get a better grasp of the business
• If you want to know where the action is, get close to the transaction
  • “The people who are closest to the action know what the right thing to do is long before the leader does” – Kat Cole
    • However, first-line employees often lack the language to articulate the power and the authority to do something about it
      • It’s the leader’s job explore the action, ask a lot of questions, find patterns, and make improvements
• You have to create a layer of trust with both management and employees. Don’t freak out if you discover something wrong or people will try to hide problems from you
  • “I need to prime those layers of leadership so that I have optimal access” – Kat Cole
• When you’re going to work on the frontlines, expect to put in work
  • Kat would put her hair up, put on gloves, and come ready to work in the restaurants
• Questions to ask frontline workers and managers:
  • When do we say ‘no’?
    • If customer or employees are asking for something consistently over time, then there’s an employee or market opportunity there
  • What do we throw away?
    • This will help you identify what resources are being wasted
  • If you were me, what’s one thing you would do to improve the business?
• How did Kat improve Cinnabon?
  • She diagnosed and addressed the deficit of belief at the company
  • She focused on the fundamental business model
  • She launched a multi-channel business 

Adjusting To A New World

• How does Cinnabon compete in a world that is shifting to healthier foods?
  • People still likes sweets and enjoy the occasional indulgence
    • “It’s a moment and an escape, it’s not breakfast, lunch or dinner” – Kat Cole
  • Cinnabon bakes their food everyday at their store so that it’s fresh
  • They are experimenting with gluten-free and sugar-free products
• Most of Cinnabon stores are in malls and airports, how are they adapting to the lack of foot traffic?
  • Only one-third of Cinnabon’s are in malls
  • Cinnabon is opening up more drive-thru and delivery options
  • They started looking a food kits and other products outside of the mall that could help drive revenue
  • They are also experimenting with food trucks and pop-up stores
  • Cinnabon has been opening more street side stores instead of more mall locations
  • They have been investing in their own apps and loyalty programs to deepen their relationship with customers

Additional Notes

• How do you run a large business and still maintain a good relationship with your partner?
  • Do a monthly check-in and talk about any problems that either of you are facing
• Constantly learn not just from your mentors but from people younger than you and outside sources like the internet
• Prioritize the most important tasks 
  • “Do the most uncomfortable, least pleasing things first” – Kat Cole
• Procrastination is often a sign of stress and that you need to say no to more things
• The hotshot rule: Imagine another person was in your position, how would they handle the role and tasks at hand?
• Develop a process of asking, answering, and acting
• Kat says Give and Take by Adam Grant is the most important book she’s ever read
  • The book explains a lot of what Kat believes in and codifies it
    • The takeaway: Healthy givers always win in the long-run
• Kat believes in aliens

Pomp Podcast : cinnabon, hooters, leadership, management
Notes By Alex Wiec