
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?
- When do we say ‘no’?
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
- At 20, Hooters offered Kat a corporate position. She dropped out of college and took it.
- She helped train employees, managers, and get the business off the ground
- At 19, she was opening Hooters franchises around the world
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.
- 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.
- 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
- However, first-line employees often lack the language to articulate the power and the authority to do something about it
- “The people who are closest to the action know what the right thing to do is long before the leader does” – Kat Cole
- 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?
- When do we say ‘no’?
- 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
- People still likes sweets and enjoy the occasional indulgence
- 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
- The book explains a lot of what Kat believes in and codifies it
- Kat believes in aliens