#117 Kat Cole: The Power of Possible

Episode Summary

Executive Summary: Kat Cole reflects on leadership shaped by early family responsibility and a fast hospitality career. She argues that gratitude must not excuse harmful circumstances, believing in people is worth the occasional disappointment, and leaders must pair humility with the courage to act. Through Cinnabon’s turnaround, she describes repairing trust, using frontline insight to drive change, and balancing work with intentional personal relationships.

Main Topics: Gratitude, agency, and recognizing the need for change: Cole’s mother stayed in an alcoholic marriage partly out of gratitude for material security. Cole describes gratitude’s dark side as accepting harmful conditions instead of pursuing something better, while still valuing gratitude as a leadership practice. Believing in people and leading with humility: Cole sees people as unfinished potential and argues that treating them accordingly often helps them grow. She accepts occasional disappointment as a small cost relative to the benefits, while emphasizing that humility needs courage and curiosity to be effective. Career growth and the shift from peer to leader: Cole’s progression from restaurant jobs at Hooters to senior executive roles came through saying yes, learning on the job, and taking on responsibility. Promotions within the same company created friction, which she addressed by owning past imperfections and applying standards consistently. Cinnabon turnaround, trust, and innovation: During the recession-era turnaround, Cole expanded beyond malls and airports into retail and other channels. A product launched at Costco without adequate communication damaged franchisee trust; she withdrew it despite the financial cost, then used improved processes and restored credibility to pursue later partnerships. Listening to customers and making change practical: Cole describes adapting Hooters’ menu to local expectations in Argentina and using frontline observations at Cinnabon to identify demand for smaller portions. Her change approach includes confronting the consequences of inaction, recruiting willing supporters, and letting them help shape and champion rollout. Resilience, personal well-being, and intentional relationships: Cole explains that leaders sometimes need to step into difficult moments and sometimes step out, while communicating enough for teammates to offer support. She and her husband use monthly relationship check-ins to surface concerns, gratitude, and ways to improve as partners.

Key Arguments: Gratitude can become harmful when it encourages people to tolerate damaging circumstances; humility should coexist with the agency and responsibility to seek improvement. Believing in people is a practical leadership choice: Cole says people often rise toward the potential others recognize in them, and that the occasional disappointment is outweighed by the upside. Humility without courage can prevent leaders from asking questions their role requires. Cole’s failure to challenge a product-development process contributed to a breach of franchisee trust. Trust is more important than exercising every legal right. Cole chose to withdraw a Costco product despite millions in foregone EBITDA, helping preserve franchisee relationships and enabling later growth through a Burger King partnership. Business change should be grounded in customer and frontline evidence. At Cinnabon, repeated requests for smaller portions and reports of uneaten product made a smaller, lower-priced option a compelling response to the recession. Leaders can manage resistance by making the case for change, identifying people already willing to try it, involving them in the solution, and sharing their results with others. Strong leadership includes self-care and openness: deciding whether to stay in or step out of a demanding situation is personal, and communicating appropriately gives teams a chance to support one another. Intentional, recurring conversations can improve relationships and management. Cole’s monthly questions with her husband helped her recognize differences in how they processed a miscarriage and informed her approach to team one-on-ones.

Data Points: Cole’s age when her mother left her father: 9 years old - Cole recalls her mother leaving her father, who struggled with alcoholism. Family food budget: $10 per week for three years - Cole says her mother supported the family while working three jobs. Restaurants opened internationally before college dropout: 7 restaurants on 3 continents - Cole says she had opened these locations by age 20, while working with Hooters. Time at Hooters: 15 years - Cole’s career there included restaurant operations, training, and executive roles. Cinnabon leadership transition: President at 31; COO at 32 - Cole took on senior leadership during the recession-era turnaround. Cinnabon growth constraint: 1,000 units in 25 years - Cole cited the pace as a reason to expand distribution through alternative channels. Costco product decision: Millions in EBITDA foregone - The company withdrew an initiative after franchisees felt the launch had damaged trust. Later Burger King distribution: 7,000 locations - A later Minibon opportunity was presented to franchisees after communication and systems improved. Small Cinnabon price point discussed: $2.50, compared with a $5 large roll - Cole advocated for a smaller, less expensive option as customers faced recession pressures. Relationship check-in cadence: Monthly, with a shorter weekly check-in - Cole and her husband discuss relationship experiences, concerns, gratitude, and goals.

Pivotal Quotes: "We can be so grateful that we forget to look around at the opportunity and the responsibilities we may have for something better." — Kat Cole: On gratitude becoming a reason to remain in harmful or limiting circumstances. "The upside of believing in people is so high, and ... some will let us down." — Kat Cole: On why she believes in people despite the occasional disappointment. "Just because you can do something does not mean you should, and we did not handle it the right way." — Kat Cole: On acknowledging the company’s legal right to sell the Costco product while taking responsibility for its handling.

Implications: Leaders can build trust and performance by combining belief in people with accountability, acting on frontline evidence, and addressing mistakes transparently. Companies pursuing new channels should protect franchise relationships through clear communication, while individuals benefit from deliberate boundaries and regular conversations at home.