Their restaurant chains – including Swiss Chalet and Harvey’s – served millions of meals and cranked out millions in profits for parent company Cara Operations Ltd., now known as Recipe Unlimited Corp. Patriarch Paul James Phelan – PJ to those who knew him – wanted the 100-year-old business to remain in family hands for another century. It wasn’t to be.A bruising, years-long battle for control of the company pitted PJ Phelan and his son against two of his daughters, Gail and Rosemary.
Based in Halifax, Mr. Kimber is the author of two novels and 12 non-fiction books. He taught at the University of King’s College journalism school and co-founded the university’s masters program in creative non-fiction He spoke to The Globe and Mail last week.Two Phelan family members, sisters Gail and Rosemary, reached out with their story in 2022. I initially thought the TV seriesmust have been their motivation, but Rosemary and Gail hadn’t seen it.
But the dynamic in their dysfunctional household is fascinating. The matriarch, Helen Phelan, was part of Toronto’s Gardiner family. For years, it ran Kentucky Fried Chicken’s Canadian operations while her husband ran Swiss Chalet. Helen was considered something of a feminist icon, but she also championed her son, Paul David, over her daughters as the best next-generation heir. He wasn’t.
It’s the story of a leader who set up his family for conflict. PJ spent years telling his son, Paul David, he would be the successor. Then he brought his daughter Gail into the business, encouraged her to take an MBA, but never offered her a meaningful role in the company. None of the children were ever put in a position to succeed. It’s actually a sad story, for all concerned.The lesson for founders is to be clear-eyed about succession. Founders have to be able to see the big picture.
Family businesses are critically important in Canada. If you can launch a company and build it over 30 or 40 years, that is still an incredible achievement. The Phelans’ Cara survived more than 130 years. There should be no shame in handing the business over to someone outside the family.As an author, I am loathe to pick a side. However, this is a commissioned book, and I was working with the two surviving members of their generation, Gail and Rosemary. This is their story.
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