Mission, Promise, Family, Fun

By: Kerry Pipes | 6,256 Reads | 58 Shares

Featured in: Franchise Update Magazine: Issue 3, 2020

%3Cp%3ETom+Krouse+joined+the+Donatos+family+in+2000.+The+former+Wendy%27s+vice+president+of+marketing+brought+his+restaurant+marketing+and+branding+skill+set+to+the+Midwestern+pizza+brand%2C+which+was+still+managed+at+the+time+by+founder+and+CEO+Jim+Grote.+Over+the+past+two+decades%2C+Krouse+has+served+in+leadership+positions+throughout+the+company%2C+including+its+Jane%27s+Dough+Foods+subsidiary%2C+and+Donatos%27+menu+development%2C+marketing%2C+franchise+growth%2C+IT%2C+and+supply+chain+management.%3C%2Fp%3E%0D%0A%3Cp%3EThe+move+to+Donatos+turned+out+to+be+a+life-altering+decision+for+Krouse%2C+who+worked+his+way+up+the+ladder%2C+eventually+becoming+CEO+in+2010.+Then%2C+Donatos+founder+Jim+Grote+became+his+father-in-law+when+Krouse+married+his+co-worker%26mdash%3BGrote%27s+daughter%2C+Jane+Grote+Abell.+A+family+business+indeed%2C+as+all+three+remain+active+in+the+business+today.%3C%2Fp%3E%0D%0A%3Cp%3EFor+the+past+decade%2C+Krouse+has+overseen+the+56-year-old+company%27s+restaurant+division+and+consumer+products+division.+It%27s+a+job+he+has+a+careful+reverence+for%2C+considering+he%27s+only+the+fourth+CEO+in+the+company%27s+history.+Today%2C+the+brand+has+56+company-owned+and+105+franchised+restaurants+in+9+states.%3C%2Fp%3E%0D%0A%3Cp%3EUnder+Krouse%27s+leadership%2C+the+company+has+increased+its+revenue+by+30+percent+and+its+profitability+sixfold.+All+of+the+brand%27s+locations+combine+to+generate+%24200+million+in+annual+revenue.+Jane%27s+Dough+Foods%2C+a+subsidiary+created+in+2008%2C+sells+its+products+in+7%2C000+grocery+stores+across+the+U.S.%2C+and+its+sales+are+up+20+percent+over+the+past+5+years.%26nbsp%3B%3C%2Fp%3E%0D%0A%3Cp%3ELast+year%2C+in+a+unique+marketing+deal%2C+Donatos+teamed+up+with+burger+chain+Red+Robin+to+offer+its+pizza+in+25+Red+Robin+locations+in+Cleveland%2C+Arizona%2C+and+North+Carolina.+The+response+was+overwhelmingly+positive%2C+says+Krouse%2C+so+the+two+brands+expanded+the+agreement+to+cover+100+Red+Robins%2C+20+percent+of+the+chain%27s+total+units.+The+main+takeaway+for+Donatos+is+the+opportunity+to+expand+its+name+recognition+west+of+the+Mississippi.%3C%2Fp%3E%0D%0A%3Cp%3ENumbers+and+marketing+strategies+aside%2C+Krouse+says+he%27s+proud+of+Donatos%27+people+and+its+culture.+%22Our+company+is+aligned+around+what+we+call+our+Mission+and+Promise%2C+which+are+rooted+in+doing+something+bigger+than+just+pizza%2C%22+he+says.+%22We+hold+regional+meetings+with+our+store+staff+where+we+collaborate+on+issues+and+build+business+plans+together.+This+active+involvement+connects+with+our+people+in+a+way+that+builds+trust+and+a+sense+of+belonging.%22%3C%2Fp%3E%0D%0A%3Ch2+style%3D%22text-align%3A+center%3B%22%3ETom+Krouse%3C%2Fh2%3E%0D%0A%3Cp+style%3D%22text-align%3A+center%3B%22%3ECEO%2C+%3Cspan+style%3D%22font-family%3A+Arial%2C+Geneva%2C+Futura%2C+sans-serif%3B+font-size%3A+9pt%3B%22%3EDonatos+Pizza%26nbsp%3B%3C%2Fspan%3E%3C%2Fp%3E%0D%0A%3Cp+style%3D%22text-align%3A+center%3B%22%3E%3Cstrong%3EUnits%3A+%3C%2Fstrong%3E160+in+9+states%26nbsp%3B+%7C%26nbsp%3B%26nbsp%3B%3Cstrong%3EAge%3A%3C%2Fstrong%3E+60%26nbsp%3B+%7C%26nbsp%3B%26nbsp%3B%3Cstrong%3EYears+in+franchising%3A%3C%2Fstrong%3E+33%26nbsp%3B+%7C%26nbsp%3B+%3Cstrong%3EYears+in+current+position%3A%3C%2Fstrong%3E+10%3C%2Fp%3E%0D%0A%3Ch3%3E%3Cstrong%3ELEADERSHIP%3C%2Fstrong%3E%3C%2Fh3%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+is+your+role+as+CEO%3F%3C%2Fstrong%3E+To+work+with+our+teams+to+solidify+our+vision%2C+values%2C+and+destiny.+But+my+%26lt%3B%3Cem%3Emain%3C%2Fem%3E%26gt%3B+job+is+to+get+involved+when+clarity+is+needed+and+to+get+out+of+the+way+when+our+people+are+on+a+roll.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+has+Covid-19+affected+the+way+you+have+led+your+brand%3F%3C%2Fstrong%3E+It+has+highlighted+the+importance+of+something+we+already+knew%26hellip%3B+communications.+In+this+crisis%2C+we+tried+to+really+lean+in+and+communicate+regularly+and+transparently+with+our+entire+system.+I+think+by+staying+close+we+were+able+to+build+trust+and+reduce+fear.+We+will+carry+that+forward+in+non-crisis+times.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EDescribe+your+leadership+style.%3C%2Fstrong%3E+I+believe+in+collaboration+and+following+a+discipline+to+gain+focus+and+clarity.+I+work+hard+to+try+and+stay+connected+to+what+the+real+issues+are+in+the+company+so+we+can+remove+barriers+and+make+people%27s+work+life+enjoyable.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+has+inspired+your+leadership+style%3F%3C%2Fstrong%3E+In+my+past%2C+I+have+observed+how+top-down+management+and+unfocused+priorities+lead+to+chaos+and+a+lack+of+fulfillment.+In+addition%2C+my+natural+state+is+to+be+more+creative+and+conceptual.+So%2C+out+of+necessity%2C+I+have+had+to+bring+my+%26lt%3B%3Cem%3Eown%3C%2Fem%3E%26gt%3B+guardrails+to+my+work+to+not+only+seek+out+possibilities%2C+but+to+actually+get+stuff+done.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+transmit+your+culture+from+your+office+to+front-line+employees%3F%3C%2Fstrong%3E+Our+company+is+aligned+around+what+we+call+our+Mission+and+Prom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esire+and+means+to+pay+for+those+premium+experiences.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+is+the+economy+driving+consumer+behavior+in+your+system%3F+%3C%2Fstrong%3EThere+are+times+in+the+year+where+value+is+more+important+than+at+other+times.+We+also+are+using+our+data+to+target+the+right+messaging+to+the+right+customers+based+on+their+needs.+That+allows+us+to+deal+with+the+economy+on+an+absolute+micro+level.+In+other+words%2C+it+helps+insulate+us+a+little+more+from+broad+economic+forces.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+are+you+expecting+from+your+market+in+the+next+12+months%3F+%3C%2Fstrong%3EWe+are+in+major+growth+mode+right+now.+The+demand+for+%22premium+pizza+delivered%22+is+high%2C+so+we+are+responding+with+a+more+exponential+growth+plan.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EAre+your+franchisees+bullish+or+bearish+about+growth+and+adding+additional+units%3F+%3C%2Fstrong%3EThey+are+more+bullish+than+ever+before.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EAre+commodity%2Fsupply+costs+any+cause+for+concern+in+your+system%3F+%3C%2Fstrong%3EOne+of+our+bigger+concerns+is+on+the+area+of+distribution.+With+costs+naturally+rising+and+our+brand+growing+nationally%2C+it%27s+a+challenging+puzzle+for+us+to+satisfy+the+needs+of+our+franchise+partners+while+fulfilling+our+responsibility+for+growth.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+are+political+and+global+issues+affecting+the+market+and+your+brand%3F+%3C%2Fstrong%3EInasmuch+as+these+trends+are+rooted+in+consumer+demands%2C+I+don%27t+worry+too+terribly+much.+But+if%2C+for+example%2C+customers%27+concerns+about+nutrition+drive+the+need+for+menu+labeling%2C+then+so+be+it.+It%27s+the+customer+that+dictates+what+we+need+to+focus+on%2C+not+the+government.%26nbsp%3B%3C%2Fp%3E%0D%0A%3Ch3%3E%3Cstrong%3EPERSONAL%26nbsp%3B%3C%2Fstrong%3E%3C%2Fh3%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+time+do+you+like+to+be+at+your+desk%3F%3C%2Fstrong%3E+I+don%27t+really.+Mostly+I+try+to+do+thinking+time+in+my+office.+I+get+fairly+antsy+and+need+to+get+out+to+talk+to+people.%26nbsp%3B%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EExercise+in+the+morning%3F+Wine+with+lunch%3F%3C%2Fstrong%3E+I+exercise+in+the+morning.+I+do+my+fair+amount+of+%22whining%22+during+exercise.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EDo+you+socialize+with+your+team+after+work%2Foutside+the+office%3F%3C%2Fstrong%3E+Once+every+couple+of+months+we+have+a+social+gathering+with+the+leadership+team.+We+also+attend+functions+together%26hellip%3B+although+my+partner%2C+CPO%2C+and+chairwoman+is+my+wife%26hellip%3B+so+we+tend+to+see+each+other+quite+a+bit+outside+of+work%21%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3ELast+two+books+read%3A%3C%2Fstrong%3E+%26lt%3B%3Cem%3EThe+Devil+in+the+White+City%26gt%3B+%3C%2Fem%3Eby+Erik+Larson%2C+%3Cem%3E%26lt%3BThe+Way+of+Zen%26gt%3B%3C%2Fem%3E+by+Alan+Watts.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+technology+do+you+take+on+the+road%3F+%3C%2Fstrong%3EPhone%2C+earbuds.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+relax%2Fbalance+life+and+work%3F%3C%2Fstrong%3E+I+play+music+in+a+band%2C+mainly+on+weekends.+It+allows+me+to+exercise+different+parts+of+my+mind+and%2C+frankly%2C+let+loose.+I+also+have+a+big+family+with+6+kids+and+3+grandkids%26hellip%3B+so+there%27s+that%21%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EFavorite+vacation+destination%3A%3C%2Fstrong%3E+Italy.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EFavorite+occasions+to+send+employees+notes%3A%3C%2Fstrong%3E+We+send+every+salaried+associate+in+the+company+hand-signed+birthday+and+key+anniversary+cards.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EFavorite+company+product%2Fservice%3A%3C%2Fstrong%3E+Our+new+cauliflower+crust+pizza%26mdash%3BThe+Cauliflower+Garden+with+plant-based+sausage.%3C%2Fp%3E%0D%0A%3Ch3%3E%3Cstrong%3EBOTTOM+LINE%3C%2Fstrong%3E%3C%2Fh3%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+are+your+long-term+goals+for+the+company%3F%3C%2Fstrong%3E+To+be+a+%22billion-dollar+company+that+gives+more+than+it+receives.%22%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+has+the+economy+changed+your+goals+for+your+company%3F%3C%2Fstrong%3E+As+I+type%2C+we+are+in+the+midst+of+the+Covid-19+health+crisis%2C+so+we+are+certainly+fighting+to+maintain+our+sales+and+staffing.+I+believe+we%27ll+come+out+even+stronger+on+the+other+end+of+this.+Our+intra-company+communication+and+our+collaboration+is+second+to+none.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhere+can+capital+be+found+these+days%3F%3C%2Fstrong%3E+Finding+capital+is+not+the+issue+these+days.+We+have+mostly+traditional+lending+and+are+not+heavily+leveraged.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EHow+do+you+measure+success%3F%3C%2Fstrong%3E+Raving+customers%2C+highly+engaged+associates%2C+strong+profits%2C+and+high+growth.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EWhat+has+been+your+greatest+success%3F%3C%2Fstrong%3E+Leading+a+deal+with+Red+Robin+Gourmet+Burgers+that+will+have+a+significant+impact+on+the+above.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EAny+regrets%3F%3C%2Fstrong%3E+I%27m+too+busy+to+have+regrets.%3C%2Fp%3E%0D%0A%3Cp%3E%3Cbr+%2F%3E%3Cstrong%3EWhat+can+we+expect+from+your+company+in+the+next+12+to+18+months%3F+%3C%2Fstrong%3E%26lt%3B%3Cem%3ESignificant%3C%2Fem%3E%26gt%3B+growth%2C+once+this+virus+is+contained.%3C%2Fp%3E

Published: August 25th, 2020