Golden assets: Adam Kelly is prepared to work hard to keep his staff through VCE and beyond.
JARROD BARNES
If there’s such a thing as McDonald’s Australia royalty, Adam Kelly, 38, would be close to the throne. His father, Paul, is the longest-serving McDonald’s Australia employee – he started with the company in Sydney in the early ’70s as its first accountant – and Adam crewed at outlets in Brighton and Elsternwick from the day he turned 15.
But it wasn’t always going to be McDonald’s for life. At university, the private school-educated Kelly aimed to study marketing but missed out on the course he wanted. He took up arts, discovered quickly that it wasn’t for him and deferred, at which time his parents did what parents tend to do when you bomb out of uni; they cut off his money supply. “I begged them for a full-time job at one of dad’s stores and from there my career has almost happened by default,” says Kelly, laughing with no apparent regret.
And why would there be? One promotion followed another, from crew to trainee manager, to first assistant, second assistant and then store manager. “I moved my way up,” Kelly remembers. “I enjoyed it – the people you work with, the fast environment.”
Just under 20 years after he flipped his first burger, Kelly bought his first outlet. In the four years since, he’s bought a lazy five more. Is that kind of capital expansion common? “I think that it’s the most rapid growth of an individual store-owner’s stock ever in Australia, um, as far as I know,” Kelly mumbles shyly at his coffee.
In 2007 father and high-achieving son formed the Kelly Company Group (Kelly Company was formed by father Paul in 1983), which owns and operates nine outlets and employs 700 staff, including 60 managers. All are in blue-chip locations: Hawthorn, Bourke Street West (corner Hardware Lane), St Kilda Road, Elsternwick, Ormond, Malvern East, Kew, Holmesglen and the recently opened Chapel Street. Their mission as a company is lofty: to be the “best employer of 15-24-year-old youth in the world”.
Despite some glowing testimonials to this end (see breakout), all is not well in the empire, which brings us to Malvern McDonald’s Family Restaurant (pictured) where we lay our scene. There may be no ancient grudge – apart from the one Kelly has with late-night revellers who occasionally set upon his restaurants, such as the “Glenferals” who made front-page news by trashing the Hawthorn McDonald’s two weeks ago – but new mutiny occurs annually with tedious monotony for Kelly Co Group, as its 16- and 17-year-old staff quit part-time work in droves to focus on the Victorian Certificate of Education (VCE).
“What we’ve found in our stores is that so many of the kids leave at the end of year 11 or the start of year 12 to focus on VCE and they don’t come back,” Kelly says, ruefully. “What we’re saying is that we understand VCE is our crew’s priority.
“I say to them, your first priority is to their family,” he continues, ticking them off on his fingers. “Your second priority is to your school or sporting club or whatever other commitments you have. We just want to be your third priority, before your social activities on the weekend. That’s where we see ourselves fitting in the scheme of things.”
Adam Kelly with students Jack, Emily and Peter.
JARROD BARNES
Kelly Co Group is putting its money where its mouth is by not only offering understanding, but also a host of benefits and incentives for VCE students among his crew to stay. Unable to put a fine point on how much the program will cost – “I can’t tell you that yet and I can’t tell McDonald’s that yet, all I know is we’ll run at a loss, that’s for sure” – Kelly has his eyes fixed firmly on the prize of improved staff retention as well as intangible benefits such as: “a happier culture of people wanting to go to work and being motivated to do a good job. This is just gold. There are no short cuts to it and you can’t manufacture it.
“It’s already well documented that McDonald’s on your resumé for certain areas is a real advantage,” Kelly says, adding he “wouldn’t hesitate” to send his two primary-school aged children to work at McDonald’s when they come of age.
“I heard the other day that a Melbourne law firm reduces its 4000 applicants for articles to 400 by applying 10 criteria. One of them is ‘Has the applicant worked at McDonald’s?’ It opens doors for you because of the world-class training.
“I want to extend that great reputation for training in my stores to life skills as well as food and bev skills. If you want to be the best at something you’ve got to step out and look at things in a different way and we’re prepared to do that to keep our crew. We’ve realised they’re our real customers. It’s as important for them to be happy as it is for our actual customers to be happy.”
Calling the initiative, to be introduced next year, the “Wall of Knowledge”, staff at Kelly Co Group McDonald’s restaurants will enjoy benefits on top of their wage, including paid study groups every second week and free English tutoring for VCE students; a halving of the current minimum shifts (to one four-hour shift every two weeks); a paid safe-driving course and a range of workshops aimed at improving basic life skills, such as time and financial management.
As for the official view of McDonald’s Australia on Kelly’s “Wall of Knowledge”, the praise is effusive before a stone has even been laid. You get the sense that Kelly is a star performer among McDonald’s Australia’s franchisees, who make up more than 70 per cent of the 700-plus stores operating in the country.
“We’re extremely proud to have operators like Adam in our system, who are constantly innovating and creating opportunities for their people, going above and beyond to meet their needs, and finding creative but effective solutions where potential challenges exist,” says its vice-president director of people resources, Joanne Taylor, in a tightly worded email response to questions about Kelly Co Group’s proposed scheme.
“It’s one of the great things about our system – we have a long history of collaboration with our franchisees and constantly learn from each other. We understand that each market, and even each restaurant, is unique and we support Adam’s efforts to expand on the benefits he’s already offering. We’ll continue to liaise with Adam as these particular programs progress and he assesses their success. They may be initiatives other franchisees choose to adopt for their employees in the future.”
So with head office support and a new, expensive, bag of benefits to dole out, Kelly is genuinely excited about the year ahead, and he’s spent much of the interview leaning forward in enthusiasm as he details his plans, which also include new programs and courses for the pre-VCE crew too.
“We’re launching this all for next year, for the next batch of people,” Kelly says. “Applications are open in October-November for next year’s intake. The kids that are already employed with us will be invited to a meeting with their parents over the next couple of months to hear about the financial program we’re implementing for them next year, which will be open to all ages, not just VCE kids.
“The time-management and teamwork courses we’re adding for all staff will be based around technology that kids use, like apps and iPhones and Outlook. We want to help organise them in using their actual daily resources and gadgets. Working in teams is another big one. We want to help the kids that perhaps aren’t doing group sports and are more individual in their approach. We can offer so much more than just a job.”
» Parents interested in attending an information evening regarding Kelly Co Group McDonald’s 2012 intake should email: joedie.robinson@kellycogroup.com.au.
The McTimeline
Year \ 9 & 10
Thirteen hours work a week to build up core skills, including food service and customer service. Year 12 accredited Certificate II and III Retail is offered at no cost but with conditions. Basic financial training to be offered in 2012.
Year \ 11 & 12
Option to reduce hours to the minimum shift – about four hours – every second week. Offer of paid study groups, tutoring, life-skills workshops, safe-driving group instruction.
Post-VCE
Option to step up to management position and to receive full management training. Chance to be “so far ahead” of similar-aged people in terms of leadership training and experience.
University and beyond
Opportunity for experienced staff to “pick and choose” hours that suit uni timetable. Available certifications for those seeking ongoing training include Certificates III and IV in Retail Management, Diploma of Retail Management and Advanced Diploma of Business Management.
The Parent’s Perspective \ Sal Paterson
My son Thomas sought employment at McDonald’s Holmesglen about six months before he turned 15. He was offered the job and McDonald’s committed to employ him as soon as he turned 15. I thought it was a fantastic opportunity for him, because he’s doing the national tennis circuit at the moment.
I’m a sole parent so the plan was for Thomas to work part time and pay his way around the circuit. Before he had a job it was a real strain for both of us. He’d have to ask for money for strings, or new kit; the extra money has taken the pressure off him and it’s taken the pressure off me. He’s performing academically and on the circuit better than he ever has before. He is also less anxious, because the training has given him confidence and his work timetable has helped with structure.
The benefits the Kelly Company Group is proposing will be fantastic and not just financially but in terms of time, too. It takes time for me to organise a safe-driving course and an English tutor and often, as a single mother, time is what I lack. Giving the kids life skills will work both ways too; it’s a real win-win, as they’ll no doubt be happier, better-balanced employees as a result.