The Mail-Journal, Volume 6, Number 21, Milford, Kosciusko County, 25 June 1969 — Page 19

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VOLUME 6

Hard Work Pays Off ■■ Phil Clauss Story Hitched To Fried Kentucky Chicken

(EDITOR’S NOTE: This story about Phil Clauss was written by a Fort Wayne newspaper reporter four years ago as he was about to open a new pancake house on road 30 at New Haven, near Fort Wayne. We found the material so complete and absorbing, we are reprinting it as part of the Phil Clauss retirement story.) At the age when most successful business men are either entering retirement or considering it with great pleasure, one of Fort Wayne’s distinguished citizens, Philip Clauss, is enmeshed in the trials and tribulations of a new business grand opening and planning still newer enterprises. Clauss, president of Hobby House Restaurants, Inc., 230 E. Wayne, held grand opening ceremonies at his new Pancake House on Route 30, New Haven, recently. A series of unique promotions made the grand opening one of the most talked about in our memory. They came by car, by bus, by truck, station wagon, and horsedrawn cart to spin the drumstick. They won their pancakes and pails of potato salad and cheered their neighbors when they won a barrel of Kentucky Fried Chicken. A Mardi Gras spirit was prevalent throughout the four days the Pancake House held its grand opening. It was not only unique: it was fun. Everybody had a ball including Clauss. Hobby House Restaurant, parent company of the chain of five fine Fort Wayne restaurants, is Clauss’ brainchild. It’s an overgrowth of the business career he launched in this city in 1929. Clauss, one of 11 children, was born on an Illinois farm and moved with his family, at age five, to Bremen, Indiana. In those days a farmer was successful because his sens energetically worked with him

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"A 3 ■ PHIL AND EMMA (SCHORI) CLAUSS

to bring in good crops. This required many hours of work and each child had his "tasks” or assigned jobs to perform . . . Most of these would be considered “backbreaking jobs” by today’s youth. The Fort Wayne restaurant owner attended school spasmodically. He quit after failing (he fifth grade. He then worked full time for his father on the Clauss farm. At 17, Phil Clauss decided there w'ere bigger and better opportunities in the big cities than on the farm. It was then that he left home to take his first job, helping to manufacture shoes at Ball Band factory in Mishawaka. In addition to his shoe factory job, Clauss found employment as a part-time dish washer in one of the Zimmerman dairy stores. He worked at both jobs for a year and a half . . . Clauss would leave the factory, washup and begin work at the dairy store at 6 p.m., working through

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Consolidation of THE MILFORD MAIL (Eat. 1888) and THE SYRACUSE -.WAWASEE JOURNAL (Eat. 1907)

until midnight. His zeal, hard work and pride in a job-well-donewas noted by management. Clauss was given the job of counterman. The opportunity was of such magnitude to the hard-working farm boy that he quit his factory job. Promotions came rapidly and at the end of three years Clauss was manager of the company’s Elkhart store. He held this position for two years, leaving to enter business in Fort Wayne. Clauss had saved more than SSOO from his manager earnings. He used SSOO of his savings to make the down payment on a popcorn machine and then he opened the Orange Bowl. It was next door to the Old Colonial Theatre. He redesigned the interior of the store room and began selling “Sweet Lady” popcorn, candy, ice cream cones and bottled soda. In 1930, after a successful first year in business, Clauss learned the full meaning of the word * Depression”. He strove to find new ways of creating business and came up with a new product, Carmel Krisp -a tasty concoction similar to today’s carmel corn. Carmel Krisp was made in deep copper kettles and sold in slabs, by the pound, at the Orange Bowl. Business was good, Fort Wayne people liked Clauss’ way of doing business and they also liked Clauss. He moved across the street to larger quarters on Calhoun street. He launched business in the new location by adding sandwiches to his list of items for sale. But the depression was creating joblessness and hungry people wanted something hot to eat - not reasonable but almost give-away prices.

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WEDNESDAY, JUNE 25, 1969

Clauss answered the cry for hot food by serving a cooked meal for 25 cents. Having no facilities for food preparation in the Calhoun street store. Phil launched his first successful venture into catering. Th© catering business’ first customer being its owner. He commandeered the talents of Mrs. Clauss. Considered by friends and relatives as a "great cook”, the warm hearted Mrs. Clauss set about helping her husband achieve the success he was working so hard to attain. She would cook the meals at home and her ambitious husband would take them, to his store on Calhoun street. There they were served "piping hot” to discouraged people in search of employment and to low salaried workers in the downtown area. In 1934, Clauss opened the first of his restaurants with facilities for food preparation. It was the 20th Century Lunch at 134 E. Wayne. He operated the lunch room independently until 1935 the building was razed. Clauss then moved out into the country. He built two service stations and a restaurant at the junction of Routes 6 and 15, near Goshen. He worked hard at developing the corner and the two service stations still operate today. The highway business was incorporated as 20th Century Oil Corporation. Clauss’ love for Fort Wayne and its people caused him to chaff at the bit for their companionship and business. He returned to the city to launch the building program that has resulted in six restaurants. The corporate name was changed to 20th Century Foods, Inc., in 1936 and construction of the first restaurant at Wayne and Clinton was completed. It was at this time that Clauss first envisioned Hobby House Restaurants, Inc. That building, now used as a dress shop, will soon be razed to make way for a motel. It is located at Wayne and Clinton. Since 1936, Clauss has erected six buildings in the Fort Wayne area. They have cost more than $2 million to construct and more than half were built at pre-war prices. The second Clauss building became the first Hobby House Restaurant. It was on Jefferson street near Clinton. It was erected in 1939. In 1948, Clauss built the Wayne Hobby House, with seating capacity for 150, at 230 E. Wayne street. The energetic Fort Wayne business man seemed content for the next ten years. Hie kept himself and his associates busy creating as enviable reputation as a server of fine food. Then in 1958, Class formed Hobby Shop, Inc., and built the Ranch House on North Anthony. It seats 450. In 1961 the Original Pancake House was opened. It seated 85. Demolished by fire January JO, 1965 it has been replaced by a larger, more distinctive Pancake House with a seating capacity of 185. It was completed late in 1965. Preparations for the grand opening have recently been complet-

ed and the program gets under way this week. Hobby Shops operate all take home stores, the Ranch House and the Pancake House. All Clauss’ restaurants have take home departments and Kentucky Fried Chicken franchises. Clauss was one of the first Kentucky Fried Chicken franchise operators. He and Colonel Harland Sanders have become fast friends as well as business associates. Clauss has b|een serving Kentucky Fried Chicken for more than eight years., Colonel Sanders recently said, "Phil Clauss was a tremendous help to me at the time when I was just getting started. He toured the nation and Canada with me, urging progressive restauranteers to get on the Kentucky Fried' Chicken bandwagon. To this day Clauss remains a director of Kentucky Fried Chicken Corporation and a share holder in that corporation. “Phil Clauss was one of the first to recognize the potential of the bucket and barrel of chicken. The famous bucket design was originated in Fort Wayne. Phil and his advertising man, Jim Chamberlin, developed the color motif and "the mug” used world-wide to this day on all Kentucky Fried Chicken packaging and paper goods, and in most newspaper and print advertising”. In a business notorious for employee turnover, Clauss has a reputation for being "A great person to work for” and “A guy who knows how to hold onto good help”. His top 36 employees have a combined total of 585 years of employment with Hobby House Restaurants; the next 36 in line tally 197. Several of Clauss’ first employees are still working for him. A former Hobby House Restaurant manager was quick to point out that many of those who left Clauss’ employ did so to enter business for themselves. He continued, "and in some cases with more than just Phil’s blessing.” They also had his financial assistance. R. David Thomas, president of Kentucky Fried Chicken of Columbus, Ohio, Inc., says, “Phil Clauss is one of those unusual men who believes success is measured more by the happiness he brings people than by the money he banks. His encouragement and financial assistance, more than anything else, have attributed most to my success. Phil has been like a father to me. I go to him with my problems, even today, and he is never too busy to listen and counsel.” Thomas’ chain of six Kentucky Fried Chicken take homes in Columbus did in excess of a $1 million business in 1965. At 33, he was recently elected president of TEB-CO, Inc., a real estate holding company that owns the Al-Rick Motel and other property in Ohio. He recently served as finance sub-committee chairman on the Columbus Blue Ribbon Citizens for Urban Renewal committee, and as secretary - treasure of Washington Brokerage, Inc., of Columbus. Five short years ago Thomas was manager of the Hobby House in Fort Wayne. Omar Wuthrich, owner of the Carriage Inn, Fort Wayne, recognized as one of the nation’s outstanding supper clubs, a worked for Clauss for 18 years. He say?, "All I know about the preparation of fine food, the business of serving and satisfying those who dine out, and business administration I learned from Phil Clauss. He was more than my mentor, he also was my father confessor and to this day remains my conscience. "Phil is one of the cities truly grand people. He’s a good friend, a dedicated citizen, a fine employer and a man of honor and integrity. I sincerely hope he will be most happy in his new venture. I know he’ll be successful because success ahd Phil Clauss are synonymous.”

The Beauticians At GERARD'S BEAUTY SHOP SERITA — JEANETTE — TOL LEE Next to the Methodist Church in North Webster Phone: 834-1422 Welcome You To The Mermaid Festival

"I remember he was always asking employees for suggestions and new ideas. He’d study the suggestions given him, try them, refine them and in most instances make them work. He was always telling you what a great job you were doing and how important you were to Hobby House Restaurants. "The one thing that stands out most in my mind about Phil is the fact that I have never heard one of his employees ever say an unkind thing about him. We all loved Phil because he lavish-, cd love on us. He helped us with our problems and he counseled us on business ventures.” Glen Moser, owner of the Dutch Mill in Bluffton, another Clauss alumni, said, "Phil was a fine person to work for. I recall that once he learned that I had ambitions to own my own restaurant he continually encouraged me. He’d give me little suggestions, bits of information that have helped and always he’d keep saying “Glen, some day you’ll have a fine restaurant of your own.” This is rather unusual, few employers like to lose good help. But Phil Clauss never regretted the loss of an employee who was headed for better things, actually he rejoiced in their success." The Dutch Mill Restaurant in Bluffton has been real good to me, and I thank Phil because he suggested the location to me and recommended me to the realtor as the person that should be the new owner. Soon after I started my own Restaurant. Clauss in announcing plans for the Pancake House grand opening said, “This is only the beginning, the first act really. We’ve just begun to get the show on the road. Act two’s curtain, and that of act three, will go up when construction starts on two additional Hobby Take Home Stores. The future looks bright. We plan continuous expansion and renovations of all our existing establishments.” One of the founders of the Fort Wayne Convention Bureau, Clauss served that organization as a director. He is a past president of the Indiana State Restaurant Association. He has also served many terms as an ISRA director and is one of but three Indiana men to have been elected to the board of the National Restaurant Association. At present, Clauss is board chairman, president or a member of the board of six corporations. Clauss received the ISRA "Man of the Year” honor plaque in 1949. This is the highest award conferred by the Indiana association. Hie also received NRA’a “Certificate of Award for 1960." Another of the many honors conferred on Clauss was the citation for service given him by the national office of Kentucky Fried Chicken. In making the presentation, Jack Massey, KFC board chairman, and John Y. Brown, KFC president, jointly stated, “few people have v/orked so hard to help others to be successful in their businesses as has Phil Clauss.” The 36 employees whose service totals 587 years are: Phil Clauss, 36; Charles Clauss, 34; Ethel Fowler, 30; Jennie Heinkel, 30; Susan Zofchak, 31; Emma Clauss, 34; Anton Walz, 18; Esther Stoffels, 22; Klea Wray, 10; Mary Storey, 10; Leah Shingledecker, 14; Sylvon Pulver, 18; Creola Morgan, 13; Rosalie Mohler, 7; Vesper McMahon, 14; Wilbur Holloway, 12; Susie Gebhart, 12; Letha Fleck, 16; John Beeman, 16; Henry Stewart, 12; Carol Plank, 10; Amanda Mills, 6; Esther Marquart, 32; Marion Main, 11; Elizabeth Kczah, 11; Denise Jones, 16; Margaret Grace, 18; Betty Evard, 11; Dorothy Chrzan, 10; James Chamberlin, 25; Felix Blair, 7; Eshimon Blair, 8; Richard Clauss, 8; Loren Carmichael, 6; Arthur Welling, 6; and Lorraine Schubert, 11.

Clauss Story Lives Up To Horatio Alger Proportions

If the lakeland community ever produced a son whose life story comes near matching that of the mythological Horatio Alger — the poor but honest boy who rose from rags to riches — it would have to be Philip Clauss. Clauss, who grew up as a ; boy northeast of Milford, recently sold his Hobby House and Kentucky Fried Chicken Takehome chain, including eight takehome units in Fort Wayne, Columbia City and Warsaw, for a figure over $2 million to David House, a division of Davis Foods Service, Inc., Atlanta, Ga. His Fort Wayne-based stores had sales of more than $2 million in 1968. Earlier Clauss sold his five stores at Columbus, Ohio, which were declared a failure five years ago when he took them over, for $2 million. He still holds stock in Kentucky Fried Chicken Corporation, which he helped found in the amount of over $4 million. And he owns and has stock in a number of other smaller companies. Not bad for a farm boy who failed the fifth grade then decided to quit school! Phil Clauss is well known around the Milford community where he grew up, and Mrs. Clauss, the former Emma Schori, is also a former Milford resident, having graduated from Milford high school in 1927. In 1927 Clauss went to Fort Wayne, and used a SSOO grubstake he had saved up to buy a popcorn machine and go into business for himself. This was the beginning of a business colossus in food preparation and marketing that brought Clauss to national prominence. At a retirement party for him over 300 friends, associated and past employees from many states attended.

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NUMBER 21

While his cherished possessions do not include a high school or college diploma, he has received many honor plaques from state and national organiations, including an Honorable Kentucky Colonel Certificate for life. He is a former director in the National Restaurant Association. Kentucky Fried Chicken Clauss states: “However, besides all this, the greatest feeling of pride and satisfaction I have inside is the work and accomplishments I had with and in Kentucky Fried Chicken. “I was aware that I started with it when the corporation was first started. However, I did do many things that were adopted and still used today. The bucket idea was started and created by me in Fort Wayne. The color and design of all paper goods was made and designed by me in Fort Wayne. The greatest trademark in the world today, the Colonel Mug, was my suggestion or demand because the Colonel had no trademark, other than the name “Kentucky Fried Chicken” when I took on the franchise. “I spent over $15,000 per year, selling the product and we felt we needed "lore protection on a trademark design. It was a hard battle because the Colonel had no money and I had to finance the cost of this work. I never received any reward. However, I believe the Good Lord has away of taking care of many things. To date I have been more than well paid in different ways.” Charles Clauss, brother to Phil, will continue as general manager of the Fort Wayne area stores.