INVESTFEST 8.7.22 DAVID SHANDS AND DAN CATHY

 FIRESIDE CHAT

 DAVID SHANDS, FOUNDER OF SOCIAL PROOF PODCAST

AND DAN T. CATHY

DAVID: WATCHING CHICK FILLET BEING BUILT. I would love to hear, if you could tell us about the journey. 

DAN CATHY: FAN OF SHERLY TEMPLE. GREW ON WEST SIDE OF ATLANTA. IF I WANTED TO SPEND TIME WITH MY DAD, HE TOOK US TO WORK. WE WOULD HAVE LITTLE JOBS. ONE OF JOBS was to pull gum from tables and chairs. back in 50s people smoked cigarettes. they would put gum to clear their pallet, then eat the food. I had to scrape the gum underneath the table. 

those of kinds of things you learn in a family business. it's been remarkable thing. as child, teenager, just had my 69 birthday. sometimes i feel like, David, in a grand stands watching this whole thing evolve.

I want to go and talk about this video you just saw. 

video was from blood benefit for 2019. skipped 2 years cause of COVID. I was watching 60 minutes on Sunday evening, 5-6 years ago. story of Paul Tutor Young. he was convicted for a social net. he had this event, robin hood event. raise 20, 30 billion dollars and raise it for Manhattan. I thought we have the same struggles here in Atlanta. 

We partnered. we didn't know what we were gonna call it. Steve Harvey was our MC. artist from ATL as well as outside of town. Bruno Mars, was impressed we saw eye level. this part year was focus on economic mobility. there were metrics that measure your ability to transcend out of poverty. 

only 4% likelihood that you can escape that cycle (if you are born into a family of poverty). Our focus was whole issue of economic mobility. education, financial literacy, help people escape this cycle of destruction. 

a lot of that has to do with models. educational opportunities. this year, Usher, was highlight of entertainment. 40 min convo on how he can be involved with us. we raise 2 (billion? million? dollars) that went to organization in Atlanta.

DAVID: HOW DID YOU FIGURE OUT WHAT ORGANIZATIONS QUALITY FOR THIS?

DAN CATHY: We begin to die when we quit CARING ABOUT THINGS THAT REALLY MATTER.

I want to be moved by conviction, by compassion. We could use the power of conviction to make a difference. In the world that you live in today. 

DAVID: I READ ANOTHER STAT, THAT 80% OF BILLIONAIRES ..... WEALTH DOESNT TRAVEL WELL.WHATS HAPPENING

DAN CATHY: I'm a big believe in privately held family business. even warren buffet loves them. if you think of the nurturing and development of character, leadership skills of compassion and understanding. the idea of forgiveness. patience with people. work ethic. wonderful built, and strong family environment. I had that in my generation. my mom and my dad did not have that.

my dad, his father went through his depression. my dad i can never remember my father saying to me I love you. my dad took his last breath 8 years ago, i hope my dad gets to hear i love you from this father. my mother, fer father deserted her when she was infant. between the two of them, they became the most incredible wonderful parents. these family patterns.. 

So fortunate to have a dad that loved people, love hospitability. his passion was joy. i got that inside of me as well. 

Steve Harvey, favorite quote. career is what we are paid for, but our calling is what we are made for. 

i believe there is a God in heaven that put us together. all the talents and abilities. even the circumstances we have. regardless of that, if we can find not just a career but also God's calling in our life. what we were uniquely made to do. I discovered that at 17 years old. 

DAVID: 

not at all. I put 2 and 2 together. my teenage years I realized that's my responsibility or duty. i knew that he wanted me to make my own decision. It's a tremendous responsibility. 

Cindellera story, if I'm able to grow a business sand succeed, who am i going to turn that over to?

nurtured in that environment. hospitality plus digital stuff plus social media.

Andrew my son is new CEO as of Nov 1. 

DAVID: CLAP FOR GENERATIONAL SUCCESS. some built something to sell. is the design to keep it in the family forever?

Covenant is that we want to continue to be a family built business. we have to reinvest in our existing restaurants as well. in third generation usually family grow faster than the business does. if you don't build an infrastructure, its 65 of us now. you don't organize for them, it can come apart, they're gonna be married, people will be married into the family. understanding how the family will share, everyone will have their own space, respect each other.

DAVID: DO YOU HAVE FAMILY REUNIONS? if so, can I come?

dad takes play time very seriously. getting together kind of thing is kind of WD40, keeps the family smooth. we just came back spent a week (somewhere). 16 going to 2 years old. 2 more members in generation 4. 

DAVID: I couldn't tell you how many, i can tell you take family seriously. 

DAN CATHY: they have to discover their calling in life. hopefully we get to discover not just owners but also leaders. They don't have a choice. they will be future owners. but they may not be involved in the management int he business. you are not compromising the quality of the leadership because of someone's last name. 

case studies, involved in family business, about ebb and flow of successful family business. only 3rd of family business survive in 2nd generation. and few into 3rd generation. so we study a lot and (something about God and wisdom)

DAN CATHY:

you are the composer. you have to decide with clarity, what you want that sandwich to look like. then pick a conductor that can do the music. Don't dumb down the music based on the musicians that is sitting the orchestras. You gotta get the right people on the bus and the right seat on the bus... but if this isn't clear. if there is a miss in the pulpit there is a fog in the pew. 

::HANDS DAVID TOILET PAPER;;

what is this, David?

DAVID: IS THAT TOILET PAPER?

DAN CATHY: THAT'S RIGHT. I find that when toilet paper is folded, you pay about $100 more at the hotel than the hotels that toilet paper are not folder. and i realized that starts at home.

watch this careful, we all need to score points. It's all the details. I ask my wife, why am i folding the toilet paper? she says: because you love me.

He goes on to demonstrate how to fold a toilet paper (little detail). 

showing courtesy, showing respect to people. if that's one way they show respect, maybe I'll do that in my life too. it's about accumulating inventory of words, values, and behavior that we can consistently do. wife can say I'm very consistent. been in habit of doing it. I'd love to get the reaction and Atlanta airport has folded toilet paper that's part of the Atlanta I want to be in.

::DAVID IS HOLDING SOMETHING:

DAN CATHY: GET THIS, SUCCESS IS ALL ABOUT SUCCESSION.

if you build a successful organization and it dies when you do, but if you can think of success for succession. who are you nurturing, grooming, who can travel with you, who can be with you?

when i travel i always take young people with me. took my young son Ross and his son with us. so we got 2 generations. if son or daugther can be with you, you'd be surprise what they would pick up. they watch how fast you walk down the mall. life's work expressed in your business enterprise can be carried on. there are folks that are sequels to the story.

DONT MISS THE BATON, WE HAVE TO PASS THIS ON TO SOMEONE. (the item was a baton).

It's the team that gets the baton around the track that wins, it's not the fastest runner. 

runners have to be in perfect balance together. values and principles have to be synced up. 

our work ethic, our values, our principles.

You don't want to drop this baton. When I feel you pull this out of my hand, that's when I let go. when someone is ready to get the baton our of your hand. Best leadership transition is when next leader is ready to lead, not when the current leader is ready to leave. 

imagine you gave it all you got, trained all live for the Olympics and when you pass it on to the 3rd or 4th generation you hear this sound (drops the baton). It's a horrible sound.

DAVID: EVEN WORSE, GIVE IT.

DAN CATHY: Andrew, 43 years old. 2020, we had social unrest issue. we were all separated. Andrew stepped up into a leadership role. he took the microphone we are going to have some different conversation. take 7 different groupings in our corporate staff about racial inequity within our corporate structure. 

I didn't know the talk you had to have with your black teenager you had to do if they were stopped in the side of the road. I never knew about it, learned about it in those little conversations Andrew had us have. 

DAVID: Can I have a franchise?

DAN CATHY: We will be happy to have an application. we had 180k applications and we chose 120 out of the 180k.

DAVID: ONE OF THE MOST PROFITABLE FRANCHISE.

DAN CATHY: no, not guarantees in entrepreneurship. we provide all the capital, we buy the land, build it, and turn into an individual to operate to the individuals. sales and profit that business generates is their income. we share the profits. tremendous income for restaurant operators. well over half a million in one location. we enjoy 98% retention rate. only 2% turn over. kid of loyalty and commitment to each other. 70% of our operators, they stay with us and now they run their own business. so we are all about upward mobility. 

DAVID: ANY CLOSING WORDS?

DAN CATHY: the desire to be successful, is a noble thing in life. accomplish the goals God gave you to do in life. ignore any of those four: family, health, physically, spiritually. 

Accomplishing the goals god help you to set in your life. 

big hairy, audacious goals. go for it! be the total person God wants you to be. 

ACCOMPLISHING THE GOALS GOD HELPS YOU SET IN YOUR LIFE. 

12:39pm