....Fast food firms try to create careers

Fast-food restaurants, commonly viewed as a first job for teen-agers and a dead end for everyone else, are attempting to pitch themselves as viable long-term career options by showering employees with stock options, 401(k)s, all-expense-paid vacations and even birthday cards.

It's a tough sell for the industry that has become a synonym for mindless work and rock-bottom wages. Teens often earn spending money by part-timing at McDonald's or Burger King, yet most would cringe at the thought of a lifetime spent "flipping burgers."

"They usually think of it as something to work their way through school until they get a real job,'" said food-service consultant David Talty, a professor at Florida International University's School of Hospitality Management.

But fast food has already become the fast-track to success for some employees, like Eunice Allotey, who immigrated to Detroit from the west African nation of Ghana 20 years ago. Beginning in 1982 with a minimum-wage job behind the counter at what was then Kentucky Fried Chicken, Allotey worked her way up to her current position as KFC's Detroit region operations coach overseeing 53 company-owned restaurants in Michigan.

She now earns an annual base salary of more than $100,000, plus up to 25% more in bonuses based on individual and company performance — more than enough for the single mother to raise her two children.

KFC points to Allotey to illustrate the possibilities for advancement that the fast-food industry can offer. The Louisville, Ky.-based chain owned by Tricon Global Restaurants, is among those trying to get the word out that hard-working employees can rise to the top quickly, even if they don't have the skills or experience to climb the career ladder elsewhere.

About eight of 10 salaried employees at fast-food chains are promoted from hourly positions.

"There really is a level playing field for anybody who wants to be successful in the industry," said Ray Kavanaugh, who heads Purdue University's Hospitality & Tourism Management Department.

"The lack of a formal education will not hold them back until they get to reasonably high levels. What we're talking about is a career that has a progression of positions and earnings, not that someone would come in and be cooking french fries for the rest of their life."

Sales at quick-service restaurants, as they're known within the food industry, are projected to reach $112 billion in 2001, according to the National Restaurant Association. But while they're not hurting for customers, fast-food operators are struggling to lower their notoriously high employee turnover rates.

The average quick-service restaurant replaces its entire staff at least once a year, said Talty, who teaches a course on fast-food management at Florida International. More than 60% of their workers are part-timers who likely have no intention of staying long-term.

People don't think of fast food as a potential career, he said, because as customers they see only the hourly employees working the cash registers and deep fryers. But at the managerial level and above, fast-food outlets are operated like any other business.

Talty, a former Burger King vice-president who helped the fledgling chain grow from 22 restaurants in 1960 to more than 500 units eight years later, is frustrated by the stereotypes he's watched blossom since the industry first took off.

"There's a lot of misperceptions," he said. "The TV/media version of the quick-service restaurant is hamburger flippers who are young, dumb and underpaid."

Low wages also contribute to the industry's lackluster image, and while chains are trying to pay more competitively, they're more notably focusing on benefit packages and reward programs. Tricon gives employees up to five raises in their first year but admits that's still not enough to compete with other jobs.

"We don't believe that the key to success is to use wages. We'll never win on that," said Mark Cosby, KFC's chief operating officer.

"We try to make the environment a place where people want to work. What we have found is that the No. 1 reason people leave our business is not money. The No. 1 reason people leave is they don't feel they're recognized."

Tricon, which owns and franchises 30,000 KFC, Taco Bell and Pizza Hut restaurants worldwide, encourages workers to stick around with 401(k) plans and by giving them birthday cards, anniversary gifts, flowers and other rewards for their performance.

Dublin, Ohio-based Wendy's International invites employees to career day receptions to discuss advancement potential within the company.

Oak Brook, Ill.-based McDonald's, the world's largest restaurant chain with 28,000 units, allows hourly workers at its company-operated restaurants to choose from a menu of benefits including 401(k) accounts, credit union membership, day care and a recently expanded health insurance program. Franchisees have the option to extend those benefits to their employees in addition to any they offer on their own.

Companies have also paid special attention to restaurant managers.

McDonald's flew 127 top-performing managers to its headquarters in April for an award ceremony and a three-day stay in downtown Chicago. The Ray Kroc Award program, which began two years ago, includes a trophy and $2,500 in cash.

Managers at Tricon-owned restaurants are given at least $20,000 in stock options each year and can earn numerous performance-based rewards. During Allotey's stint as a restaurant manager, she received two gold and diamond rings and a free trip to Orlando, Fla., including a private, after-hours party and parade at Universal Studios for top KFC employees.

Many chains also offer tuition reimbursement programs to encourage workers to attend college and come back to manage a restaurant.

"I have students in my classes all the time who are working at quick-service restaurants whose employers are paying for them to come get a degree," Talty said.