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Sunday, April 4, 2010

Jimmy says what?

DISCLAIMER - Sorry this isn't on one of the more popular blogs I usually post things like this to. However, since it is 100% personal and not related to any projects I'm a part of - I felt my rather underutilized personal blog was a better home for this rant...

I've been a fan of Jimmy John's subs for over ten years. When I was working in radio in Michigan I was even involved with developing marketing campaigns to promote their subs and local stores. I'm not sure how many subs I've bought from them over the years - but if I count subs I bought or encouraged others to buy in my presence - it would be in the hundreds. If I were bold to say I was involved in influencing the purchases of folks when I wasn't with them - it would be in the thousands.

Like most companies I've given that much money to - I follow it relatively closely (as time permits). While I was aware that the owner (it's privately held), founder and leader is not of a similar political mindset to mine - I believe in respecting other people's personal political choices (with the possible exception of Domino's founder Tom Monaghan - who goes out of his way to make my complicate my private life - so I like to return the favor to him and his company). However, when they get their company involved in their shenanigans (like Tom did with Domino's Farms) - I feel all gloves are off. If you want to use your company to dive into politics and advance the rights of people - I think you're in safe territory (although others disagree). However, when you use your company to complain about politics strictly for self-gain, in my opinion you're making a very poor business decision and potentially giving your company a black eye - it's just not worth the risk.

However, Mr. James John Liautaud, founder/owner of Jimmy John's, seems to feel his company is a great platform for personal political statements. In a company blog entry this week, the privileged rich white man had this to say...
"Barack Obama's lack of respect for free enterprise and how hard it is to make a buck. This alone is the biggest threat to America and our chain. My operators scrape together 300 grand, risk it all, open a store, work 100 hours a week, create 40 new jobs, pay 45% of their income in tax and the president wants to tax them more. We don't get a summer break like congress does, we are 24/7/365 and they just crap on us. This is a disgrace and this is what America who is entitled doesn't realize. That half needs us a lot more then we need them and they better start to praise and respect us who pay for their free ride and BS inexperienced rhetoric."
I have so many problems with that statement, I'm not even sure where to start. Needless to say, I disagree with his conclusions. However, I'm blown away by him using his company to essentially complain on behalf of his fellow millionaires. Does he honestly think this is something his customers are going to go along with? Apparently someone at his company doesn't think they will and they've since removed the entry from their blog.

However, thanks to the wonders of Google Reader and cache services - it's out there forever - no matter how much they might want to make it disappear. Here's a link to Bing's cache of their blog from that day.

Since Mr. Liautaud has opened the doors to talking about his political activities, I thought it might be good for folks to know where the money you give his company winds up... I'm not implying this giving is "bad" - just passing along the info.

In 1998...
- He gave $2,000 to former Illinois Governor George Ryan (R)

In 2002...
- His wife (I think) gave $1,000 to Illinois State Senator Rick Winkel, Jr. (R)
- He gave $1,000 to Illinois State Senator Dale Righter (R)

In 2006...
- He gave $1,000 to Michigan State Senate hopeful Antoinette Schippers (D)
- He gave $31,000 to Illinois Secretary of State hopeful Dan Rutherford (R)
- He gave $500 to Illinois Gubernatorial hopeful Steven Rauschenberger (R)
- He gave $5,000 to the Republican Party of Illinois
- He gave $1,000 to US Representative Timothy Johnson (R-IL)

In 2008...
- He gave $25,000 to State Senator Dan Rutherford (R)
- He gave $5,000 to the Arizona Republican Party
- He gave $2,300 to Presidential hopeful Rudolph Giuliani (R)
- He gave $2,300 to Presidential hopeful Mitt Romney (R)
- He gave $2,300 to Presidential hopeful John McCain (R)
- His wife gave $2,300 to Presidential hopeful Mitt Romney (R)

This year...
- He gave $50,000 to Illinois Gubernatorial hopeful Andy McKenna (R)
- He gave $50,000 to Illinois State Treasurer hopeful Dan Rutherford (R)
- He gave $2,400 to US Representative Aaron Schock (R-IL)
- He gave $5,000 to Free & Strong America PAC
- His wife gave $2,400 to US House of Representatives hopeful Ethan Hastert (R-IL)


To be fair and complete, here's the giving for the company itself...

In 2004...
- They gave $5,500 to Illinois State Senator Dan Rutherford (R)

In 2006...
- They gave $74,900 to Illinois Secretary of State hopeful Dan Rutherford (R)
- They gave $5,000 to Illinois Gubernatorial hopeful Judy Baar Topinka (R)
- They gave $1,000 to Illinois State Senate hopeful Judith Myers (R)
- They gave $500 to Illinois State Treasurer hopeful Christine Radogno (R)

In 2008...
- They gave $250 to Illinois House Representative Tom Cross (R)

This year...
- They gave $10,000 to Illinois Treasurer hopeful Dan Rutherford (R)

Now in comparison to other business leaders, this giving history is a drop in the bucket. Especially when you notice most went to Dan Rutherford. Presumably either a friend of Mr. Liautaud or one of JJ's former Employees of the Month. :) BTW - does he know that many of the above are a part of "That half (which) needs us a lot more then we need them and they better start to praise and respect us who pay for their free ride and BS inexperienced rhetoric."

Since Mr. Liautaud feels strongly enough about taxes to use scare tactics to attack them in company marketing tools - I think we should help him out. So, I'd like to offer a solution to his woes. Let's help him move to a tax bracket he's more comfortable with. If we all stop using Jimmy John's - he'll be happy to know that those of us not making millions have smaller tax rates. Perhaps he'll find the tax rates for a $60,000 income (high income for a manager in his company) more to his liking. If our current President and tax structure (in place LONG before Obama arrived) is such a threat to his company, perhaps he'll find the taxes in Canada, the UK or Mexico more to his liking?

By the way, I'm not a totally unreasonable person. While I will do not plan on spending any more money there - and have added them to my short list of companies I try to educate the public on whenever I can (and luckily I'm afforded many opportunities) - I could be brought back to Jimmy John's - especially given how much I love their subs...here are some suggestions in no particular order...any one of which would be a good sign that the company isn't a danger zone.
  • A resignation by Mr. Liautaud from his post and sale of his stake in the company
  • Public apology with a commitment to end all political giving to candidates, parties and divisive PACs using either corporate funds or private earnings from the company as well as a massive contribution (of at least how much they've given in the past decade combined) to a social cause (and preferably not one that benefits primarily privileged white people)
  • Turn JJ into a publicly traded company with a plan in place to cut all management ties with Mr. Liautaud
Any suggestions on other possible solutions to pass along to the company?

3 comments:

  1. Hey Greg, I work with Domino's and just wanted to make sure you are aware that Tom Monaghan no longer has any involvement whatsoever with the company. Good summary of the company's independence from him here:

    http://www.chron.com/disp/story.mpl/life/dailycols/6934867.html

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  2. Good article - thank you for sharing.

    My ongoing gripe with Tom is that - as I understand it - he's still getting money from them through different channels. The rent on Domino's Farms, his dividends, consultant fees, etc.

    I know that Domino's has done some intentional PR efforts to distance themselves from him. But my interactions with folks in their corporate office led me to believe it's more for show than a reality.

    The corporate headquarters is on a large farm owned by Tom. Most of the space not used by Domino's is used by an onsite Catholic Church and various Catholic causes.

    Domino's pays rent to Tom for their space - and it's been reported in the past that the amount they pay is suspiciously large.

    It doesn't help that Tom himself has bragged about his connections to the company from time to time.

    So it's true that he's no longer an owner or an active executive in the company. However, he still receives all of his income from them and they've continued to find creative ways to help him keep his pockets full. I'm not saying they shouldn't be doing that - he founded the company - and this is not at all unusual behavior for companies. However, I'm confident in saying that Domino's indirectly is paying for all the hate mongering that Tom is out there doing. They may not sanction it - but they also haven't done much to slow down the money flowing into his operations from Domino's funds.

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  3. Nice to read your blog. This last post was a bit fun to read. There is a lot going on also here in Sweden were we tend to follow the US but 10 years behind. We have our big election now this fall. And now you can see popular artist who are on political parties tours (we have 7 big parties in Sweden).

    That might boost their sales as they sing of political stuff... but also commercial owners are staring to take a side.

    Well... I have no smart conclusion just wanted to.. write something to support you to write even more.. :)

    Keep it up, Elias, Sweden

    ReplyDelete