Just Apply Yourself and Do It: Interview with Jack Penrod, Founder of Nikki Beach
I recently went one on one with Jack Penrod. Jack is the founder and owner of Nikki Beach Global and the author of the new book One Grand Adventure: Becoming Rich in Business, Family and Life. In the 1980s, Jack was the largest McDonald's franchise owner in Florida.
Adam: Thanks again for taking the time to share your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks, or challenges have been most instrumental to your growth?
Jack: When I was twelve, I promised my mom I’d be rich and she’d be able to stop working. And that was one of my drivers. She was working in coffee shops and long hours and I didn’t want that for her.
From a young age, I was always positive. When I was younger, I got the nickname “Smilin’ Jack” because I always had a pleasant look on my face. My optimistic outlook showed. My attitude helped me advance in my jobs and meet new people. A smile and a happy disposition are great assets to have—not only when you’re young, but throughout your life.
I also always looked for what was next in the world and when I heard of McDonald’s, I knew that was the answer. The concept caught my eye because they had a good system in place, people liked them and they had good values on how they made their beef. So I decided I was going to pin my coattails to McDonald’s but I went through many years of hard times at first because people didn’t know McDonald’s yet. These years taught me a lot.
One thing that helped me was my tenacity. However, I didn’t learn how to be tenacious, it was built into my system from birth. Even though I had to work long hours, I made it happen and as I put in the time, I realized there was way more opportunity to be had than I initially thought.
As I immersed myself into my work, I knew there were certain outside forces that might derail my success. America was in the midst of the Vietnam War, and as the conflict escalated, there was a threat that the US would institute a military draft, and I could be chosen to fight overseas. If I volunteered before I was drafted, my time in the service would be much shorter. My McDonald’s boss and I decided I would voluntarily go in for six months and get it out of the way and that when I returned, there would still be a job waiting for me at McDonald’s.
When in the Marine Corps. I placed high on a fancy test they made everyone take and they wanted me to stay in the Marine Corps. to be a pilot. I thought about it and while the thrill of being a pilot sounded great I remembered the promise of becoming rich to my mom and I wanted to help her. I turned down the pilot offer and found myself back at McDonald’s.
I thought about how to change McDonald’s and I ultimately did. As I look back, I’m sure Jerry, the owner of the franchise I was working for, saw me as an over-optimistic twenty-one-year-old with his head in the clouds. I once asked Jerry, “What’s the busiest McDonald’s in the world?” Jerry responded, “Well, I think they are doing about $400,000.” We were doing way less than that. The average McDonald’s was grossing about $90,000 per year, and the profits were about 15%. To which I replied, “Jerry, I can make this McDonald’s the busiest McDonald’s in the world.” I told Jerry that if I reached that goal, I wanted a percentage of the gross and Jerry agreed.
I gave it everything I had. I wrote a pamphlet called “76 Ways to Promote McDonald’s” that would later become my Bible for marketing the restaurant to families, college students, children, and senior citizens. For example, one idea I had was a birthday club where you would give the birthday kid a free lunch, but he had to throw his party in your McDonald’s. Everyone else had to pay—a cost that was still very affordable to them, while driving up sales for us.
I was noticed by Ray Kroc, the owner of McDonald's, who flew down in a small plane to see what this Penrod kid was doing. He told me I could do whatever I wanted to do. Over time, Ray put a lot of trust in me, and I didn’t want to violate it. Although some of my ideas were radical, they all had a purpose. Every move I made was calculated to increase volumes and profitability.
I eventually became one of the biggest McDonald’s franchise owners in the south with 16 locations and when I finally sold and got my stock, my value in today's dollars was about a $55 million net worth. I stuck to my guns and did much more than just pay off my mom’s house.
Adam: What do you hope readers take away from your new book?
Be happy. I loved working with McDonald’s and that translated into success. I never asked anyone to do anything I wouldn’t do and I did it all - from mopping the floor to flipping burgers. I didn't tell people what to do, I showed them what to do. I had the most loyal team and I led by example all while being positive and happy. My positive attitude is a huge contributor to my success.
Adam: How did you come up with your business idea and know it was worth pursuing? What advice do you have for others on how to come up with and test business ideas?
Jack: I go with my gut. I learn what I can and weigh the pros and cons.
For McDonald's, well I don't know, it just kind of came natural. I worked and I observed and then I took thoughtful risks. For example, when you’re limited to two windows to sell food out of, you’re limited on how much you can take in. All I did was add more windows and put in an area so people could stand inside and be out of the rain and the cold.
My other advice is to always listen to what clients are asking for and let that direct your decisions.
Adam: What are the key steps you took to grow your business? What advice do you have for others on how to take their businesses to the next level?
Jack: You have to be careful when you’re setting your sights on where you want your business to go. Never lose clarity on what your value is and don't ever take an easy route because it’s easy. Grow slow and steady and don’t cut corners just because you know you can get busy as a result. And most importantly, don’t just bring in anyone that wants to come. Know your target audience and be real careful to just market to them.
When we started Nikki Beach, for example, we stayed away from, and still do today, mass advertising strategies. We’re not looking for any guest, we’re looking for the right guest. That’s why the marketing strategy has always been our motto, “Tell Only Your Best Friends.” We’d tell our clients on their way out, “Come back. Oh, but tell only your best friends about us.” Not, “tell a friend,” but tell only your best friends—the people in your life like you. “Tell Only Your Best Friends” has been my most effective marketing strategy to date.
Adam: What are your best sales and marketing tips?
Jack: It’s pretty simple, have a target audience and make sure that’s who you're marketing to.
Understand and analyze your business and know what it’s going to take to make it work and be careful on how you market and advertise to get to that end result.
Adam: In your experience, what are the defining qualities of an effective leader? How can leaders and aspiring leaders take their leadership skills to the next level?
Jack: An effective leader should never ask anyone to do anything they wouldn’t do.
In terms of skills, tenacity and drive are the most important. To this day, I tell people all they need to do is start. They can get a job at McDonalds like I did to learn training, marketing and advertising. If you’re aware and willing to learn, you can learn anywhere. I taught myself on the job.
Adam: What is your best advice on building, leading, and managing teams?
Jack: An effective leader should never ask anyone to do anything they wouldn’t do.
Adam: What are your three best tips applicable to entrepreneurs, executives, and civic leaders?
Jack: I’m going to answer this one from my own personal experience. Here are the traits that led to my success:
Not knowing any better - When I was younger, I never saw a difference between the rich and poor and I was fearless. I just saw wealth as a way of life and it never occurred to me that it wasn’t attainable, I knew I was going to be rich
Being driven - To become the owner of 16 McDonalds stores I worked seven days a week for seven years straight, without a single day off. If you set a goal, do what you have to do to accomplish it
Having tenacity - I’ve always been of the mindset that when something doesn’t work, change it a little bit and try it again until you get it right. I was born with tenacity
Adam: What is the single best piece of advice you have ever received?
Jack: When I took my test in the Marine Corps., I learned that I had much more in me than I ever knew. In that moment I realized that you have to believe that you have it in you and you can actually do it because it makes it easier to stick to your guns and do it. And with that, don’t sell yourself short. I would say to always assume you can do something and try. I was raised with little education and thought I was just good at sports until I applied myself. So I’d say, don't really think about how to move to the next level, just apply yourself and do it.
Adam Mendler is an entrepreneur, writer, speaker, educator, and nationally-recognized authority on leadership. Adam is the creator and host of the business and leadership podcast Thirty Minute Mentors, where he goes one on one with America's most successful people - Fortune 500 CEOs, founders of household name companies, Hall of Fame and Olympic gold medal-winning athletes, political and military leaders - for intimate half-hour conversations each week. A top leadership speaker, Adam draws upon his insights building and leading businesses and interviewing hundreds of America's top leaders as a top keynote speaker to businesses, universities, and non-profit organizations. Adam has written extensively on leadership and related topics, having authored over 70 articles published in major media outlets including Forbes, Inc. and HuffPost, and has conducted more than 500 one on one interviews with America’s top leaders through his collective media projects. Adam teaches graduate-level courses on leadership at UCLA and is an advisor to numerous companies and leaders. A Los Angeles native, Adam is a lifelong Angels fan and an avid backgammon player.
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