MAY 2010 - $25.00 National Ice Cream Retailers Association SUPPLIER MEMBER SPOTLIGHT Aim for your Target by Kasia Wilk Lucks Food Decorating Co. Knowing your target market for your decorated ice cream cakes will help you hit that target with designs that sell. The primary celebration cake is for a birthday, because birthdays are celebrated every day of the year. As summer approaches, ice cream sales increase. Since August is the month with the largest percentage of birthdays, it’s also time to gear up for decorated ice cream cakes. Offer the right birthday cake designs that will appeal to your customers. Birthday cakes are not one size fits all. Children’s Birthday Themes Children’s birthday themes are easier to execute in the cake department. This is where you will be asked to do most of your licensed cake designs. Major suppliers of cake decorations will offer legal options for fulfilling these types of cake orders. The more decorations put on a child’s cake, the more they like it. Lots of frosting, color, candies, and licensed characters will make your children’s birthday cake selections a hit. There are new licensed edible wrap around designs for the sides of your ice cream cakes as well. Children also love themes, so make sure to understand what the theme party trends are and have designs that coordinate. You can also offer a single scoop ice cream in a cup and decorate the scoop with monster faces, googly eyes, clown faces or flowers and butterflies. Keep the flavor profile simple for the kids: vanilla or chocolate. Keep the decorations and colors on trend for eye-catching sales. Designing for Teens Tweens and teens can be a difficult group to please. To appeal to this group, create designs that are on-trend and bit more edgy. Try a zebra print with hot pink, a graffiti style Happy Birthday inscription or just the words “You Rock.” Keep the colors bright and bold. Neons are perfect for this age group. IN THIS ISSUE Aim For Your Target..........................................................1 by Kasia Wilk Two New Board Members Appointed...............................2 NICRA Partners with Terminix Pest Control....................4 Face Time: It Matters........................................................4 Costs For Getting Into the Ice Cream Business................6 by Jim Ross, Flat Pennies New Active Members.....................................................10 Kids Hurry Up and Hunt in Bonita Springs, Florida......10 Butter Prices...................................................................10 Margaret Anderson Named a Woman of Influence.........12 Dingman’s Dairy Purchases Welsh Farms Bulk.............12 The Ice Cream Club Wins All Star Award......................12 Retirement/Succession....................................................14 by Dr. Tom Davidow 2010 Officers, Board Members & Supplier Officers......16 Cakes for Men A top theme for men’s cakes is sports. You can make the whole top of your cake into a basketball, baseball, football or soccer ball. Be sure to understand the popular hobbies for men in your area. Fishing, golfing, hunting and poker designs all make great cake themes for men. Less is More for Women When it comes to making a cake for moms or an office gettogether, sometimes less is more. Bringing an upscale look to these cakes can be accomplished by taking a cue from the more European style, minimalist decorations. Flavor and decadence are sellers here. A single, well-made and well-placed flower can make an ordinary cake into an extraordinary cake. Things like chocolate ganache drizzle and caramel drizzle add eye and flavor appeal. Chocolate shavings or chocolate curls can make that ho-hum cake into an ooo-ahhh cake. You can make chocolate shavings or curls by pulling a sharp knife along a block of chocolate, or run blocks of chocolate through a food processor with the cheese grater attachment on low speed. There are suppliers for fancy chocolate decorations, but you can also make your own. 1. Draw a series of swirl patterns, fans, or diamond shapes on a piece of paper. 2. Lay a piece of parchment paper or waxed paper CALL YOUR NICRA SUPPLIER MEMBERS FIRST over your patterns. 3. Melt some chocolate and put it into a paper cone or plastic pastry bag. • Dark Chocolate or Milk Chocolate can be used, but it needs to be tempered. Follow tempering instructions from your supplier, but usually a good rule is to heat your chocolate to 115-120 degrees and then bring it down to 85-90 degrees before piping your designs. Or you can use a baker’s coating or couveture that does not require tempering. 4. Pipe your chocolate on the parchment or waxed paper using your template of patterns. 5. These decorations can be made ahead and stored in a cool dry place and used as needed. Higher End Decorating Ideas Add a high end look to your cakes with toasted sliced almonds arranged as flower petals, with a dollop of chocolate for a flower center, stem and leaves. Or use whole blanched peeled almonds as your flower petals, or fancy pecan halves. Pecans are a softer nut and lend themselves well to eating frozen. These fancy nuts are not for mix-ins, but rather decorations, so keep them separate from your mix-ins. Consider using chocolate covered espresso beans as a high-end design cake topper. Another eye-catching decoration is sugared fruit. Wash your fresh fruit and dry thoroughly, then brush the fruit with either dissolved plain gelatin or dissolved powdered egg whites. Sprinkle the fruit with superfine granulated sugar. Small fruits work best for this: grapes, blueberries, strawberries and mint leaves. Be sure to wash and dry your fruits thoroughly or you will have clumpy sugar. Fruits will stay nicely in the freezer and will be consumed before they have a chance to thaw or for the ice cream to melt. This type of cake and decoration does not carry a long shelf life, so photograph your work if you do not plan on keeping these high end designs on hand in your show case. Designer Prints™ decorations on the sides of your cakes designs are also eye-appealing and require very little work. A cake with decorated sides needs only a single top decoration. Of course, an appropriate inscription makes it a party celebration cake. Hitting your sales target requires the right ammunition as well as good aim. TWO NEW BOARD MEMBERS APPOINTED Roberta Rudolph, Custard Cone, Poplar Grove, Illinois and Neil McWilliams, Spring Dipper, Mammoth Spring, Arkansas have been appointed to the Board of Directors to fill two open seats. Roberta Rudolph and her husband Bruce of Custard Cone Frozen Custard, have resided in northern Illinois for most of their lives. They went to the same high school, worked at the same grocery store during their high school years and grew up within 4 blocks of each other. Bruce and Roberta have been married for 20 years. Custard Cone Frozen Custard located in Poplar Grove, Illinois was launched in July 2006 as a 20 plus year dream of Bruce’s. When the couple was dating in the 1980’s after a cold 5-below day and a short drive up to Kopp’s Frozen Custard shop in Milwaukee, Wisconsin, Bruce shared his vision of buying land to build a custard shop where they could serve cones, shakes and sundaes, and be a part of delicious moments. After many years of obstacles and almost starts they finally made it happen, and together they built a walk up stand with a drive thru after buying property in the fall of 2005. With Bruce’s experience working for his dad in the commercial masonry business they built their building. The two of them framed their entire roof; dry walled, painted and poured concrete. The Rudolph’s have grown the business from a walk up with a patio and drive thru, to enclosing the patio in 2008 for a sit down eating area where they can now serve burgers, Chicago style hot dogs, chicken, homemade pulled pork sandwiches, fries and onion rings. 2 http://www.nicra.org NICRA May 2010 NICRA May 2010 3 CALL YOUR NICRA SUPPLIER MEMBERS FIRST They are proud to be NICRA members for 3 years and have gained invaluable advice from Dan and Kelle Messer, Eskamoes Frozen Custard, Pat, Ted and Hank from Classic Mix and several other NICRA members they have met. Roberta is gracious to have been nominated to be on the board of directors for NICRA thru 2011. Neil McWilliams has always been a South side of Chicago native, except for a short time in the service in the early 70’s. Before getting into the ice cream business, Neil was deeply involved in the electronics industry as a result of a degree from Purdue and continuing education in the Air Force. Upon leaving the service, he continued with electronics by becoming an international service technician. He also met his future wife Jill, while working there. The Spring Dipper was started up by chance when a local ice cream shop went out of business and they were looking for someone to do a package buyout. In late 2003 this shop was then packed up and moved from a Chicago suburb (with lots of people to draw on) to a small town in northern Arkansas (pop. 1200). The business has grown slowly but steadily and they are now operating a small diner to support the total business package. The business operates in two directions. First using a 75 seat sit-down environment and then using portable equipment, serving ice cream at local schools, festivals and county fairs. The Finest Cold Extracted Vanillas in the World • Super Premium Pure Vanillas • Vanilla Vanillin Extracts • Natural and Artificial Blends • Real Vanilla Bean Specks If you want to sell lots and lots of ice cream and frozen custard, and have people actually travel across town just to buy it, use the best ingredients money can buy. Use Lochhead vanillas! For samples & helpful information, ask for George at 1.888.776.2088 Email: [email protected] www.lochheadvanilla.com A family owned business for three generations 4 NICRA PARTNERS WITH TERMINIX PEST CONTROL National Ice Cream Retailers Association welcomes Terminix Commercial pest control as a partner to its preferred provider program. Terminix offers a 12% discount for each ice cream store that is a NICRA member. Additionally NICRA members will receive a 10% discount on any equipment that is purchased from Terminix such as tincats, exterior rodent bait stations, misters, illuminated flying insect traps, biosys, etc. Terminix pest control services include ants (excluding fire ants, carpenter ants and pharaoh ants); American, Asian, German and Oriental cockroaches; house mouse; filth, fruit, moth (drain) flies; centipedes; earwigs; millipedes; silverfish; sowbugs/pillbugs; and ground spiders. Call the NICRA office toll free at 866-303-6960 to get your pest control program started. FACE TIME: IT MATTERS The Convention Industry Council (CIC), in conjunction with the industry’s leading trade associations, commissioned the development of a public information campaign to identify and promote the unique benefits associated with meeting face-to-face. The effort began with in-depth interviews of the industry’s leading association executives, and was followed by focus groups hosted with both meeting planners and attendees in New York and Washington, DC. The research revealed that: • Face-to-face meetings build trust and relationships • Both education and training are more effective in a live setting • Live meetings actually save time and money • Live meetings facilitate problem solving through a more effective exchange of ideas • Face-to-face meetings provide the human connection that powers business • Face-to-face meetings create jobs and powers the economy With these observations in mind, several campaign themes were created and subsequently tested for their resonance with both meeting planners and attendees. One captured the unique benefits associated with hosting live meetings more than all others: Face Time. It Matters. So, make your plans now to attend NICRA’s 77th Annual Meeting and Convention, November 10-13, 2010 at the Millennium Maxwell House Hotel in Nashville, Tennessee. http://www.nicra.org NICRA May 2010 emery thompson batch freezers MADE IN THE U.S.A. FOR 105 YEARS PRICES START AT $8,450 Why pay thousands more for an Italian import When you could invest in a hand crafted Emery Thompson from The people who invented the batch freezer! Email us for your free DVD’s on how to make any air content Hard Ice Cream Artisan Gelato, Old World Italian Ice, Frozen Yogurt, Sorbet, Sherbet and Sorbeto [email protected] WWW.EMERYTHOMPSON.COM 718-588-7300 Speak direct with our CEO, Steve Thompson our mission statement: to make money and have fun doing it. We hope it will be yours too! NICRA May 2010 5 CALL YOUR NICRA SUPPLIER MEMBERS FIRST ACTIVE MEMBER SPOTLIGHT is substandard and service is poor, location is of little value. This holds true across the board for manufacturing, retail and wholesale. COSTS FOR GETTING INTO THE ICE CREAM BUSINESS By Jim Ross Flat Pennies Ice Cream The costs for getting into the ice cream business varies greatly, determining these costs depends on your business plan and the details you have included in the plan. The following article will provide information that may assist you in several areas of interest. This is an overview of the session from our 2009 NICRA convention in Scottsdale, Arizona. Advertising Let’s begin with advertising. This should be one of your first thoughts as you begin the journey of creating your business. You will want to know what advertising mediums are most effective for your type of business. If you are getting into manufacturing ice cream, know who you need to sell to. If you are starting in retail, wholesale or both be sure to research the area. Learn what’s an effective means of advertising: newspaper, magazines, radio, e-mail blasts and a web site that is updated often. Brochures can be effective for the tourist crowd, distributed to local hotels and other businesses can be a very direct and useful tool. Keep costs low and do not be afraid to say NO to an advertisement that you feel is a poor fit for your business. Ad dollars are a precious commodity and results can be difficult to gauge, a return on your dollar is a must. If you hold events that will land you in the newspaper or local media you will be getting FREE advertising. Well, as long as the event is positive! It’s important to note that you can advertise yourself right into bankruptcy, so exercise caution. The best advertising of all is word of mouth. We tend to trust the word of a friend or family member far more than any ad. Think in advance and in the earliest stages of the endeavor how you will create an image for your business. Location, Location, Location In these trying times we may need to rethink these common words of wisdom. Perhaps a simple change is in order to Location, Product Quality and Service. Product Quality A quality product may very well trump location. If you cut costs by choosing a low grade product you have premeditated your company’s demise. Using our word of mouth advertising tool comes into play here. If you serve a weak product, your fan base will be nil, few will mention you to their friends and family, or worse yet give a bad review. There are several vendors that are members of NICRA. This vast resource can help you determine what is right for you. Service Service is advertising. There is little distinction between the two. A smile when the order is taken from the customer and again when they receive their treat or product has more value than any other assets you hold. Service includes cleanliness of your plant, store, vehicles and employees. Every aspect of your company creates an opportunity to shine for the customer. Don’t miss the chance to leave a first or lasting impression. The true costs of getting into business requires all these things. Location, Product Quality and Service have a real cost associated with them. Equipment New or used? This is an important question to ask yourself and your equipment supplier. It serves you well to use good equipment for the business. The steep upfront costs of new will hold real value. If the equipment were to fail, the damage to your customer base can be both immediate and long-term. If new equipment has problems you will have someone to turn to for a quick fix. Using a reputable dealer is priceless. Energy efficiency is important too. The cost of utilities in your facility adds to your operating costs. Every penny saved will help the bottom line. Today’s equipment throws off less heat with can save on the air conditioning bill as well. It’s important to note that being energy efficient or “going green” may be one way to get into the newspaper with an article highlighting your efforts. NICRA May 2010 http://www.nicra.org Location You have the best location money can buy but if your product 6 If you are leasing or buying, be mindful of the cost of the contract for leasing or the price of the real estate you are purchasing. This seems like an obvious statement. However, much thought should go into the long term costs for this important tool. If the building requires a great deal of maintenance and repairs, that you are responsible for, costs can skyrocket very quickly. These fixed costs should be realistic and hold real value to your company’s long range objectives. NICRA May 2010 7 CALL YOUR NICRA SUPPLIER MEMBERS FIRST Cash Registers This is often overlooked until shortly before opening. Yet, it is a very important part of your strategy and vital to your company. You would benefit from knowing in advance what type of cash register(s) you need. Cost comes into play here, of course, but so does the value associated with the data the unit obtains for you. For example, past sales, estimated sales, sales by time period and number of units sold by product, just to name a few. Much more information is provided as well. Often the cash register can double as a time clock saving a purchase and maintenance of a separate time clock. Whichever cash register you choose, think about what is important to you. How will an order be viewed by you and your staff, type of receipt, size of the unit (how much space will you have for the cash register on the counter)? Receipt paper can be expensive, this should be a consideration for your long term costs. Suppliers This group of folks will be your life-link. They are as important as staff, customers or the facility you operate from. Product quality starts here. The ability to work with them and understand how they can help you can greatly reduce the upfront and long-term costs for the business. Your longevity is their longevity. Think of it as a partnership, many (if not all) will sit down with you and help determine your cost of sales for their product and what it will cost you to bring a completed product to the customer. Remember, quality counts. In tough economic times and good times too, the public demands real value for their money. Your suppliers will get you there. We use NICRA supplier members in our company. We know their value has been tested and is true. It is one of many perks to being a member of NICRA. Community Involvement Why is this a “cost of getting into the ice cream business”? Simple, your involvement matters to those around you. Getting to know local groups and organizations may provide avenues that will help future growth. You can become an asset to the community by participating in events that surround your place. Parades, church dinners, community picnics, etc. Show an interest in the area and they will show an interest in you. Taxes and Insurance Plan high! The real tax cost from real estate, labor and many others can be expensive and should be considered. Ensuring you have a qualified CPA or professional at your side is very important. Subscribe to The National Dipper ® The only magazine that keeps you up-to-date in the retail frozen dessert industry. Regular columns include: • New Products • Industry News • Calendar of Events • Classified Special features include: • Equipment Reviews • Management Articles • Association Events • Employee Training • Promotions • Annual Source Book Also Available: • Dipping Tips Training Posters • Manuals for Costing Products • Employee Training Posters • Point of Sale Posters • Magazine Binders ® 8 Call or write for a subscription today! 1028 West Devon Avenue • Elk Grove Village, IL 60007-7226 Phone: (847) 301-8400 • Fax: (847) 301-8402 e-mail: [email protected] Subscribe on-line at: www.nationaldipper.com http://www.nicra.org NICRA May 2010 NICRA May 2010 9 CALL YOUR NICRA SUPPLIER MEMBERS FIRST Insurance is really worth checking into. For the first time NICRA has an option you may want to consider. A discount is offered from Trahin Miller Insurance Company for members. There are many considerations for you as you begin on the path to a successful ice cream business. The goal of this article was to help identify some of the less obvious considerations. I hope this was accomplished. NEW ACTIVE MEMBERS At 11:00 A.M. on April 4, 18,340 colorful, candy-filled eggs glistened in the sun across two huge fields. Five minutes later, every egg was gone. Eggs that took more than two months to stuff were in the baskets of about 2,000 children who attended the 16th annual Royal Scoop Egg Hunt on Saturday. But the 5-minute egg hunt, better known as an egg dash, was just the beginning of festivities. After examining their bounty, the youngsters headed back to the field for a series of games. They raced with an egg on an ice cream cone. They ran with an egg on a spoon in their mouth. Then they did a raw egg toss throwing the eggs farther and farther until they splattered on the ground. Kids also zipped down a giant double inflatable slide or jumped in a bounce house. The day was topped off with an ice cream eating contest. By the Scoop 2905 Auden Ct. Abingdon, MD 21009 443/286-7940 Fax: 410/692-2869 Erin Maynard Michael Meola 1 DD, SS, II “It’s wonderful,” said Connie Hobbs, of Bonita Springs, who came with her children Tatyana, 5 and Anastasia, 18 months. “They have lots of activities for the kids as well as the egg hunt.” The Dairy Godmother 2310 Mt. Vernon Ave. Alexandria, VA 22301 Elizabeth Davis 1 FC Not only was this the biggest egg hunt ever for Royal Scoop, it also was the largest community effort. Volunteers from Forest Bay and Marbella stuffed most of the eggs. First Baptist Church donated its lawn for the event. Dancers from Angelic Academy of Dance along with several other groups volunteered. Hopkins Farm Creamery, Inc. 18475 Dairy Farm Rd. Lewes, DE 19958 302/645-7163 www.hopkinsfarmcreamery.com Walter Hopkins, Jr. 1 DD “We have about 30 volunteers” said Sarah Zimmermann, who owns Royal Scoop with her husband David. “It’s great to see so many people wanting to help.” J. P. Licks P. O. Box 301810 674 Centre St. Jamaica Plain, MA 02130 617/524-2020 Fax: 617/524-2017 Vincent Petryk 1 MP, DD, YD, SS, II BUTTER PRICES April 1, 2010 - Grade AA Butter finished at $1.4950. The weekly average was $1.49188. (2009 price was $1.1800) April 9, 2010 - Grade AA Butter finished at $1.5000. The weekly average was $1.4970. (2009 price was $1.1800) Make Your Plans NOW to attend NICRA’s 77th Annual Meeting November 10-13, 2010 Millennium Maxwell House Hotel Nashville, Tennessee 10 KIDS HURRY UP AND HUNT IN BONITA SPRINGS, FLORIDA April 16, 2010 - Grade AA Butter finished at $1.5600. The weekly average was $1.5370. (2009 price was $1.2025) April 23, 2010 - Grade AA Butter finished at $1.57. The weekly average was $1.57. (2009 price was $1.2095) Support prices for butter start at $1.05. Butter prices are reported from the Chicago Mercantile Exchange every Friday. The Merc is considered a spot market for butter. Merc prices are important to dairy farmers because the value of the fat and fat differentials in raw milk are established from the prices quoted from the Exchange, and Merc prices are used in the BFP update. NICRA May 2010 http://www.nicra.org EMERY THOMPSON BATCH FREEZERS BROOKSVILLE, FLORIDA U.S.A. 2010 CUSTOMER DIRECT PRICING NEW!! CB-350 Counter-Top Infinite overrun control* LIST YOUR COST $12,900 $8,450. ______________________________________________________________________________ 12-HSC 1 OR 3 PHASE water-cooled $25,000. $16,900. air-cooled $26,600. $17,900. _________________________________________________________________________________ 12-HSC-I.O.C. 1 OR 3 Phase 24NW INFINITE OVERRUN CONTROL* water-cooled $27,400. $18,900. INFINITE OVERRUN CONTROL* air-cooled $28,800. $19,900. $28,900. $18,900. WATER COOLED 24 QUART 1 or 3 phase 24LA AIR COOLED 24 QUART $29,900. $19,900. _________________________________________________________________________________ 24NW-I.O.C. INFINITE OVERRUN CONTROL* water-cooled $30,440. $20,900. 24LA–I.O.C. INFINITE OVERRUN CONTROL* air-cooled $31,440. $21,900. 44BLT 3 PH. water-cooled $46,900. $28,900. 44BLT-A 3 PH. Air-cooled w/remote condensing unit $48,900. $30,700. INFINITE OVERRUN CONTROL water-cooled $49,950. $30,900. 44BLT-I.O.C. Note: All 44 quart batch freezers are 3 phase. American made rotary phase converter is available thru Emery Thompson. *Our INFINITE OVERRUN CONTROL Batch Freezers are designed to give you any air content ice cream, frozen custard and Gelato that you desire. All our machines also produce Italian Ice, Sherbet, Sorbet, Frozen Lemonade, Sorbetto and Frozen Lemonade. Locking casters are standard on all 12 and 24 qt. models. Due to the size and weight of the 44 quart machines, casters are not advisable but are available at an additional cost. ALL PRICES QUOTED ARE F.O.B. BROOKSVILLE, FLORIDA USA. Pricing, specifications, availability and terms of offer may change without notice. Taxes and shipping charges are the responsibility of the purchaser and are not subject to discount. All prices are based on new purchases only. Emery Thompson Machine and Supply Company cannot be responsible for errors in typography or photography. NICRA May 2010 11 CALL YOUR NICRA SUPPLIER MEMBERS FIRST MARGARET ANDERSON NAMED A WOMAN OF INFLUENCE THE ICE CREAM CLUB WINS ALL STAR PURCHASING AWARD Margaret Anderdson, Taylor Freezer of New England, was named a Woman of Influence in the food industry by The Griffin Report of Food Marketing. She has been with the company for nearly 24 years and is the sales and trade show coordinator. She is responsible for day-to-day coordination of sales in the New England territory and around the country for national accounts. She is the Associate Vice President of the New England Ice Cream Restaurant Association; President of the National Ice Cream Retailers Association Suppliers Board and a committee member of the Boston Food Show and member of the Massachusetts Restaurant Association. She credits her success to her parents who instilled her work ethic. The Ice Cream Club of Boynton Beach, Florida was given the 2010 “All Star Purchasing Award” by the All Star Association, Inc. at its 52nd annual convention at the Green Valley Ranch Resort in Las Vegas, Nevada on March 24, 2010. The All Star Purchasing Award is given to the member company with the best performance in several key purchasing categories over the past year. “The Ice Cream Club has been a member of the Association since 1994, and has set itself apart with high quality product and service. Additionally, they were a great supporter in the past year,” said Jeff Sterne, Executive Director. All Star is an association of dairy, ice cream, water, beverage, food and packaging companies throughout the United States. It presently has 203 member companies representing over 350 plants in 48 states, Puerto Rico and Nova Scotia as well as 24 affiliate members. The award, an original oil painting depicting the company and the South Florida area, was presented to Richard and Heather Draper. DINGMAN’S DAIRY PURCHASES WELSH FARMS BULK ICE CREAM Dingman’s Dairy is proud to announced the purchase of Welsh Farms Bulk Ice Cream Brand; a household name throughout New Jersey for over 100 year. The value of “old fashioned” quality and service still continues to be important to us all. Memories of those simpler times continue to inspire our imaginations and desire for goodness of years gone by. Welsh Farms was founded in 1892 in Long Valley, New Jersey with the ice cream plant opening in West Caldwell, New Jersey shortly after. The Welsh brand was always known for its simple, pure quality. Welsh Farms always used only the highest quality cream from hand picked dairy farms and today our farmers have all signed pledges that they are rBST free to maintain that standard. Dingman’s Dairy is dedicated to bring all these values back to production and deliver the best ice cream possible. Dingman’s will be producing a variety of Welsh Farm 3-gallon bulk ice cream flavors for dip shops throughout the tri-state area. For more information call 800-958-6838 or visit the web site at www.dingmansdairy.biz. 12 From Left: Heather Draper, The Ice Cream Club; Bruce Daily, All Star Association; Rich Draper, The Ice Cream Club; and Jeff Sterne, All Star Association. Make Your Plans NOW to attend NICRA’s 77th Annual Meeting November 10-13, 2010 Millennium Maxwell House Hotel Nashville, Tennessee http://www.nicra.org NICRA May 2010 NICRA May 2010 13 CALL YOUR NICRA SUPPLIER MEMBERS FIRST Retirement/Succession by Dr. Tom Davidow I encourage you to embark on the Retirement/Succession journey, to take the risk, to move on to your next challenge. But, I have another, equally important message for you: go slowly. Retirement is about change. We all resist change. Families muster resistance to it even more formidably than individuals. You may think that you will be able to adjust your role in the family business and move towards retirement when you are ready. Would that it were that simple. A family is like a group holding on to a common rope. If any member pulls on that rope everybody feels it. As the head of both your business and your family, you are not just any member. The impact of your retirement, even the announcement of the possibility of your retirement, will ripple through your family, your employees, and in some instances, your bank, stirring up every family and business issue imaginable. The primary issue which will arise in your retirement/succession process is loss. Every transition in life, from the first day of school, to college graduation, involves loss of some kind, and as such can trigger insecurity, doubt, sadness, etc. The loss that family and business members experience during the succession process comes from a change of authority. Unlike democratic institutions, businesses and families rely heavily on the person in charge. As the authority in your family and your business, you have been the cornerstone of both. A change in that authority will be perceived as a threat to the stability of the structures to which your family members have become accustomed. Therefore, you will need a serious commitment to seeing the succession process through. Your family will have ambivalent feelings. Any mixed messages that you send them will result in their sending mixed messages back to you. Always a challenging process, succession is made more difficult when family members act out their feelings and concerns unconsciously. Ivan Lansburg, Ph.D., in his insightful article, “Succession Conspiracy,” in Family Business Review, points out that once the process begins in earnest, the next generation generally experiences fear and concern, even if they had initially pushed for succession. The same family members who said they were ready, willing and able to assume control, become consciously and unconsciously daunted by the shift in responsibility, and suddenly make errors and bad decisions, signaling their ambivalence at taking over the business. For example, one client of mine began the retirement/succession process over ten years ago. His commitment and strength of purpose to do it right has been ferocious. Everything is now in place. Collectively, he and his family have structured family governance, business governance, ownership transfer, and management transfer. He has his successor in place, trained and ready to go. He has made the announcement for the change and has set the date. Lately, however, 14 he has been thinking of moving it forward for a few more months, (he’s delayed it twice before) to time it with some other event. What is going on here? Do we need a degree in Psychology to figure it out? Is it him? Yes! Is it him alone? No! People close to him are sending him mixed messages. Some have selfish reasons; others know on some level that the change will create loss. They are going to miss him; it will be the passing of an era. Defending against the feelings stimulated by that loss, they are suggesting that it would be better if he did not leave yet. Although no one knows how the change in power and influence will get played out, they all know that, for better or worse, things will be different. Their uncertainty creates mixed feelings. What none of them yet understand is that he is not going anywhere. He will continue to have enormous power and influence, despite the institutional change. If I were a betting man, I would wager that after struggling through his and others’ ambivalences, my client will finally appoint the next head of the business on the original date scheduled. I have confidence that the strength of his intellect and his commitment to the process will over ride his concerns. Once he steps down, the thoughtfulness and wisdom with which he planned his succession will come to fruition. Through the systems he helped create, family and business members will dedicate themselves to keeping the legacy of the family business together. Getting there, however, will have been neither neat nor simple. At the same time, the retirement succession process will not be easy for you, the person initiating the change. What you face is not just the inevitability of his death; in fact, facing death is not the most challenging difficulty. I have found that it is easier for people to think about death-to purchase life insurance policies, and work with their estate planning attorneys to minimize federal and state inheritance tax-than it is for them to address the change in identity that succession will bring. One’s identity is not only associated with the image of one’s business, it is also connected to the many relationships and daily activities associated with the business. Since our identity and sense of self nurtures the strength of our life force, the older we get the more frightening it is to contemplate a change which could threaten our identity and, thereby, our life force. Given that change is scary, that it will stimulate issues and themes that are often unrecognizable at first, and difficult to sort out, one must proceed cautiously and gradually. Otherwise too many issues, and the powerful emotions they trigger, will surface all at once. Making important changes has a pace and timing of its own. The following description, outlined in Prochaska and DiClemente’s “Stages of Change Model,” may be useful to examine. Recognizing what category you fall into may make it easier for you to take appropriate steps: http://www.nicra.org NICRA May 2010 CALL YOUR NICRA SUPPLIER MEMBERS FIRST • Pre-contemplation: “Ignorance is bliss;” Not currently considering change. • Contemplation: “Sitting on the fence;” Ambivalent about change; • Preparation: “Testing the waters;” Some experience with change; trying to change. • Action: Practicing new behavior. • Maintenance: Continued commitment to sustaining new behavior. •Relapse: “Fall from grace;” Resumption of old behaviors. Once you have reached either the “Contemplation” or “Preparation” stage, the first step is to sit down with your family and have a conversation about how they feel, what they want, and what they think the next steps should be. Expressing their ambivalences about your retirement/succession will abate some of their fears. Furthermore, allowing your family to participate throughout the process is in itself a departure from unilateral decision-making and places a measure of responsibility on the next generation. By being involved in the planning of your retirement/succession, your family will have an immediate experience of the shift in authority. You will benefit as well from the process. You will have the opportunity to design a relationship both to your family and to your business, and to create structures which will allow you to remain connected to your “life force.” The planning process will allow you to gain control over the direction of the family and the business. This experience of control will encourage you to think positively about your future and theirs. When you feel good about yourself, it is easier to think positively about change, to make a commitment to it, and to facilitate it. Since 1918 Leading dairy, ice cream and frozen dessert manufacturers have depended on Oringer for the finest quality ingredients. Bases Fruits Variegates Flavor Systems Syrups and Toppings Furthermore, having a positive attitude affects not only how we see events and those around us, it also affects our health. Yale University Psychologist Becca Levy suggests through her study, printed in the Journal of Personality and Social Psychology (vol.83, No.2, pages 261-270), that one’s personality, attitude toward aging and other psychosocial variables may grant extra years or shorten life. Put more simply, as Flip Wilson, a comedian from the seventies, used to say, “What you see is what you get.” At a recent gathering, a friend of mine was complaining about getting older, how awful and depressing it is. I did not agree. Of course getting older has its drawbacks. No longer walking the face of the earth is not a thought that any of us chooses to embrace. But you can maintain a different perspective. Having addressed and resolved the struggles that you have encountered over the years, having acquired wisdom the “hard way,” (and I do not believe that there is any other way) you can now maximize the emotional and financial investments you have made. You can capitalize on A division of Concord Foods, Inc. what you have learned and put it to good use. Once you have 10 Minuteman Way, Brockton, MA 02301 moved from the contemplative to the preparatory stage of 508-580-1700 Fax 508-584-9425 change, you have available to you the many processes that have allowed you to come this far. Use them once again. NICRA May 2010 http://www.nicra.org 15 2010 NICRA OFFICERS President Bob Turner, Dairy Corner, Urbana, Ohio President Elect Lynn Dudek, Ruth Ann’s, No. Muskegon, Michigan Vice President Dan Messer, Eskamoe’s Frozen Custard, Monroe, La. Secretary/Treasurer David Zimmermann, Royal Ice Cream, Bonita Springs, Fla. Secretary/Treasurer Elect Nanette Frey, Frey’s Tasty Treat, Inc., E. Amherst, New York Immediate Past President Vince Giordano, Sno Top, Manlius, New York Executive Director Lynda Utterback, Elk Grove Village, Illinois 2010 BOARD OF DIRECTORS Terms Ending Annual Meeting 2010 Mary Leopold, Leopold’s Ice Cream Savannah, Georgia Neil McWilliams, Spring Dipper Mammoth Spring, Arkansas Jeff Myers, The Double Dip Lebanon, Ohio Charles Page, Page Dairy Mart Pittsburgh, Penn. Kasia Wilk, Lucks Food Decorating Tacoma, WA Terms Ending Annual Meeting 2011 Terry Michels, Queen City Creamery & Deli, LLC Cumberland, Maryland Rod Oringer, Concord Foods Brockton, Massachusetts Rick Pizzi, Pizzi Farm Ice Cream Waltham, Massachusetts Jim Ross, Flat Pennies Ice Cream Bay City, Wisconsin Roberta Rudolph, Custard Cone Roscoe, Illinois Terms Ending Annual Meeting 2012 Carl Chaney, Chaney’s Dairy Barn Bowling Green, Kentucky Cliff Freund, Cliff’s Dairy Maid Ledgewood, New Jersey Juergen Kloo, Joy Cone Co. Hermitage, Pennsylvania John Pitchford, JP’s Custard Cart, Albuquerque, New Mexico Joe Venuti, Bedford Farms Ice Cream Bedford, Massachusetts Secretary/Treasurer Mary Kircher, Dingman’s Dairy, Paterson, New Jersey Chairman Rich Draper, Ice Cream Club, Inc., Boynton Beach, Fla. MISSION STATEMENT FOR NICRA The mission of the National Ice Cream Retailers Association (NICRA), a non-profit trade association, is to be the leader in the frozen dessert industry that others look to for help, support and education. NICRA will promote business growth and development throughout the industry. VISION OF THE ASSOCIATION NICRA will associate with similar associations dedicated to the same interests. NICRA will facilitate communication and education that both newcomers and veterans in the industry desire to be successful. NICRA will maintain a feeling of family within the association as it grows, and be dedicated to responsibly managing the association while maximizing value to the members. NONDISCRIMINATION POLICY NICRA is committed to a policy of nondiscrimination in all of its endeavors. To that end, NICRA shall not tolerate any words or acts of discrimination, harassment or any inappropriate behavior in general against any person affiliated with NICRA, including its members and guests, with regard to race, sex, color, creed, religion, age, national origin, disability, marital status or sexual orientation. This Bulletin is published by: National Ice Cream Retailers Association 1028 West Devon Avenue Elk Grove Village, IL 60007-7226 847/301-7500 - Fax: 847/301-8402 e-mail: [email protected] - Web: www.nicra.org Bob Turner, Chairman Publications Committee Lynda Utterback, Editor ©2009 National Ice Cream Retailers Association Vol. 31, No. 5 This issue of the NICRA Bulletin is now available online at http://www.nicra.org. Click on the Members Only button and enter your Username and Password. If you cannot find your Username and Password, call the NICRA office at 866-303-6960 or send an e-mail to info@ nicra.org requesting the information. 2010 SUPPLIER OFFICERS President Margaret Anderson, Taylor Freezer of New England Norwood, Massachusetts Vice President Tom Zak, Concord Foods, Brockton, Massachusetts 16 http://www.nicra.org NICRA May 2010
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