January 2016 Bar Business

Let’s Czech In:

Spirits from the Czech Republic find U.S. fans through craft cocktail artistry.

The How-To Publication

BAR BUSINE$$ January 2016

M A G A Z I N E

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BAR BUSINE$$

On Tap JANUARY 2016

CONTENTS

SHot & A Beer

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HOW TO

18

15

18

21

We’re all mixed up

Playing at politics

Here’s a Tip: No more?

The latest edition of our bi-monthly section for digital issues only, where we provide a collection of cocktail recipes for mixologists. www.barbizmag.com

While taverns were first created to promote political discussion, today the local political environment can directly affect business.

Our leading legal contributor looks behind the curtain to examine what might be the real reason for the tip system fading.

January 2016 Bar Business Magazine

1

On Tap

BAR BUSINE$$

CONTENTS

Features 24 Taxing times

15 Departments 4 Bar room drawl

32 Big six

6 Booze News

As temperatures in Chicago dip into the single digits, a new Caribbean bar called Coconutz is warming up this Windy City winter.

Wild new glassware from Europe; Perlick’s Tobin Ellis bar wins big; Lillet joins the Pernod Ricard portfolio; Wild Turkey bottles get an aesthetic overhaul for 2016.

10 liquid Assets Norwegian aquavit and Czech spirits find new fans through craft cocktail artistry here and abroad as the flavors of central Europe get a new spin in Southern California.

36 Inventory

It’s too late to do anything about 2015 taxes, but now is the best time to take steps to minimize Uncle Sam’s bite out of your bar’s income for 2016.

28 Who got next?

Bob Johnson and Kevin Tam talk about what they are seeing from the next generation of bartenders, managers, and owners making their way into this business (plus some tips for success).

28

38 h oliday happenings 40 owning Up Parking can be a contentious issue for bar tenants when seeking a new space, so keep those spaces in mind.

10 “Bar Business Magazine” (ISSN 1944-7531 [print], ISSN 2161-5071 [digital]) (USPS# 000-342) is published February, April, June, August, October, & December for $45.00 per year and January, March, May, July, September, & November will only be offered in a digital format at no charge by Simmons-Boardman, 55 Broad St, 26th Fl., New York, NY 10004. Periodicals postage paid at New York, NY and additional mailing offices. Copyright © 2016 Simmons-Boardman. All rights reserved. Printed in the U.S.A. No part of the magazine may be reproduced in any fashion without the expressed written consent of Simmons-Boardman. Qualified U.S. bar owners may request a free subscription. Non-qualified U.S. subscriptions printed or digital version: 1 year US $45.00; Canada $90.00; foreign $189.00; foreign, air mail $289.00.

2 years US 75.00; Canada $120.00; foreign $300.00; foreign, air mail $500.00. BOTH Print and Digital Versions: 1 year US 68.00; Canada $135.00; foreign $284.00; foreign, air mail $384.00. 2 years US $113.00; Canada $180.00; foreign $450.00; foreign, air mail $650.00. Single Copies are $10.00 each. Subscriptions must be paid for in U.S. funds only. For subscriptions, address changes, and adjustments, write to: Bar Business Magazine, PO Box 1172, Skokie, IL 60076-8172. Instructional information in this magazine should only be performed by skilled crafts people with the proper equipment. The publisher and authors of information provided herein advise all reader to exercise care when engaging in any of the how-to activities published in the magazine. Further, the publisher and authors assume no liability for damages or injuries resulting from projects contained herein. All rights reserved. POSTMASTER: Send address changes to Bar Business Magazine, PO Box 1172, Skokie, IL 60076-8172.

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Bar Business Magazine January 2016

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Bar Room Drawl

By Chris Ytuarte Editor

Takin' Care of Business " If you really look closely, most overnight successes took a long time." — Steve Jobs

Legend has it, at one point in his illustrious life Elvis Presley wore a necklace from which dangled a threeletter acronym: TCB. I also know (for a fact, this time) that the episode of Seinfeld where Kramer shows up to a 9-to-5 office job for which he was never actually hired features him describing what he does there as “TCB.” In other words, two of my heroes utilized the same philosophy towards life; they were both “Takin’ Care of Business.”

Sure, some of you might prefer the Bachman Turner Overdrive song of the same name, but BTO doing TCB never really did it for me. I’m sticking with Kramer and The King. But any way you look at it, 2016 — and in particular, this issue of Bar Business — is all about takin’ care of business.

As owners and operators, it can sometimes be easy to gloss over the less glamorous aspects of this industry, especially considering the great cocktails, craft beers, and social benefits of running a bar. But in the end, it’s a 4

Bar Business Magazine January 2016

business like any other, and you need to stay focused on the business components that can keep your bar safe, sound, and successful.

So we decided our first issue of 2016 should be all about the business. There is more to this than making drinks, and we've selected a few topics about backof-the-house tasks that may seem like more of a hassle than they actually are.

In this issue, we're all business (hence my photo, no cocktail in sight).

We start out with one of our signature How To columns examining the real reasons behind what appears to be a full-scale phasing-out of the tipping system as we’ve known it; then we focus on a particularly hot topic for 2016— politics. While bar room banter has always leaned toward such rhetoric, with this article we talk about ways in which bar owners and operators can get involved in their own local politics in order to benefit their business. It's those smaller elections that can shift regulatory policies affecting your bar.

We also look at ways to tackle your taxes early in 2016 in order to get the most out of your returns; and the Lease Coach talks about making parking spaces a priority when considering a new venue.

Don’t worry, we left a little room for fun. We review the new influence of European spirits on American cocktailing, and we visit a Caribbean bar buzzing through a Chicago winter.

But even if you enjoy a few drinks this month, keep Kramer and Elvis in mind, and make sure you're ready to TCB.

BAR BUSINE$$ MAGAZINE

January 2016 Vol. 9, No. 1 Bar Business Magazine (ISSN 1944-7531) is published by Simmons-Boardman Publishing Corporation 55 Broad St 26th Fl., New York, NY 10004 executive offices

President Arthur J. McGinnis, Jr. Publisher Arthur J. Sutley 212-620-7247; fax: 212-633-1863 asutley@sbpub.com editorial

Editor Chris Ytuarte 212-620-7223; fax: 212-633-1863 cytuarte@sbpub.com art

Creative Director Wendy Williams wwilliams@sbpub.com Art Director Sarah Vogwill svogwill@sbpub.com Associate Graphic Designer Nicole Cassano ncassano@sbpub.com production

Corporate Production Director Mary Conyers mconyers@sbpub.com circulation

Circulation Director Maureen Cooney mcooney@sbpub.com advertising sales

Art Sutley 212-620-7247; fax: 212-633-1863 asutley@sbpub.com circulation department

800-895-4389 Bar Business Magazine is published monthly.

All rights reserved. Nothing herein may be reproduced in whole or in part without written permission of the publisher.

To Purchase PDF files of covers, layouts or hard copy reprints, please call Art Sutley at 212-620-7247 or email asutley@sbpub.com.

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Booze News Round the Way:

Unique glassware allows drinks to be served upside down

D

irect from the Czech Republic comes a new way to sip cocktails. The Quido is a globe-shaped cocktail glass that keeps liquids contained with a giant silicone stopper. The Quido vessel features two glass straws that are held in round puncture-holes in the top of the receptacle. The Halm — a precursor to Quido – allows drinks to be served upside down by balancing on its stopper. Both are hand-blown in the Czech Republic by product designer Martin Jakobsen ( www.jakobsendesign.com].

What could be more unique than a lemonade glass that, in the hands of top bartenders from around the world, turned into an absolutely exclusive product for high-end cocktails? The Halm and Quido glass lines, with the ability to turn it upside down, brought a new view to mixology in Eastern Europe, and has since began to spread globally.

What is Quido ( https://vimeo.com/136363543)?

Zoomorphic design? A cocktail glass? It is a new challenge in the hands of all creative enthusiasts.

The brand was founded in 2010 by Jakobsen, whose work is mainly influenced by minimalism and a

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Bar Business Magazine January 2016

penchant for finding innovative solutions. Brand philosophy is based on detailed work in terms of creating a simple, yet functional and aesthetic design.

Jakobsen studied at several universities including The Royal Danish Academy in Copenhagen, Academy of Arts, Architecture and Design in Prague, Academy of Fine Arts in Lodz and The Technical University of Liberec. Nowadays he runs one of the leading Czech author’s design brands.

All of Jakobsen’s glass products are marked by the designer’s signature and each piece is hand-blown in the Czech Republic. The collection is used in the best hotels, restaurants and bars all around the world.

U.S. customers include such famous names as The Ritz-Carlton, Hard Rock International, The Setai Hotel, and The Cosmopolitan of Las Vegas. The collection is also featured in The Swedish Glass Museum in Vaxjo, Prague Gallery of Czech Glass, Museo del Vidrio in Segovia, Moravian Gallery in Brno, Museum of Glass and Jewellery in Jablonec, Museum of Decorative Arts in Prague, and Museum of North Bohemia in Liberec.

Why not exhibit them in your bar? www.barbizmag.com

LILLET TO JOIN PERNOD RICARD USA PORTFOLIO

P

ernod Ricard USA is pleased to announce that Lillet®, a wine-based aperitif produced in Bordeaux, France, has joined the Pernod Ricard USA portfolio of premium spirit and wine brands, effective January 1, 2016. Lillet is owned by Pernod Ricard but previously was distributed in the U.S. by William Grant & Sons.

“We are very excited to welcome this growing, profitable and delicious brand into our portfolio,” said Bryan Fry, President and CEO of Pernod Ricard USA. “Lillet is a premium product with a long history of quality and craftsmanship, and worldrenowned reputation within the bartender and mixology community as well as among loyal consumers. We are pleased to welcome Lillet into our organization and look forward to further unlocking its potential.”

Lillet is a versatile drink that can be enjoyed in different ways. The traditional method is on ice with a slice of orange peel but there are also more modern ways to enjoy the product such as in a long drink with ice, tonic water and fresh fruit slices. The brand is also widely used as an ingredient in classic cocktails like the Vesper and the Corpse Reviver #2.

Bordeaux’s first and only aperitif, Lillet, was founded in 1872 by merchants of fine wine, Raymond and Paul Lillet. Made in the village of Podensac, south of Bordeaux, the awardwinning brand is created with a blend of carefully selected wines that are blended with fruit liqueurs and quinine in a recipe passed down through generations. Available in Blanc, Rose and Rouge, Lillet is featured in top cocktail bars around the world.

Wild Turkey Unveils Bold New Packaging

W

ild Turkey® has debuted a new look for its premium bourbon and rye whiskey range. While making no changes to the award-winning liquid, Wild Turkey has designed new packaging for its global family of products that better reflects the core values of the historic brand. A detailed new turkey illustration, found on every expression and most prominently displayed on Wild Turkey 101, depicts a spirited bird that is authentic, proud, and bold – characteristics that have always defined the conviction at the heart of the Wild Turkey brand.

“While sticking with our traditional recipe and authentic values, we are excited to present new global packaging for Wild Turkey. Proudly and prominently featuring our turkey brand icon, this new premium look is the result of in-depth research, consulting with our distillery, and listening to bartenders and consumers,” said Melanie Batchelor, global vice president for spirits at Gruppo Campari.

She added, “With the explosion in interest we’ve seen in the bourbon and rye categories, driven by classic cocktail trends, we’ve seized the opportunity for bold premiumization. With this new, proud, and striking design, our packaging for Wild Turkey will now stand out amongst the competition as well as our award-winning liquid has done for decades.”

The change of packaging comes on the heels of recent positive attention for the Wild Turkey brand stemming from critical and commercial success of its super premium limited time offerings, including Forgiven®, Diamond®, and Master’s Keep®, and is the

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latest example of Gruppo Campari’s efforts to further popularize the iconic brand worldwide. To date, the company has invested more than $100 million to thoroughly modernize and expand the Wild Turkey distillery experience, including the construction of a new visitor center and packaging facility.

The new look for the entire range of bourbon and rye whiskies also reflects Eddie Russell’s recent promotion to Master Distiller. The packaging now makes it clear to consumers that Wild Turkey Bourbon (originally named Wild Turkey 81) is Eddie’s creation, while his father and living legend Jimmy Russell is the creator of Wild Turkey 101.

January 2016 Bar Business Magazine

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Booze News

AVIATION NAMES TRAVIS TOBER BRAND EDUCATOR

H

ouse Spirits Distillery, now celebrating more than a decade as a leader of America’s craft distilling community, welcomes Austin, TX bartender and beloved cocktail consultant Travis Tober, who joins the company today as a fulltime member of the Brand Supporter team. Travis, who was recently a judge at the 2015 Bar Business Sprits Competition in Austin, will serve as Director of

Education & Advocacy for the company’s flagship brand, Aviation American Gin, and he will work under the guidance of Brooke Arthur, the company’s longtime brand educator, to continue to grow the brand.

Since 2012, he has served as a critical member of the Aviation American Gin Brand Supporter team in a parttime capacity, where he worked hand-in-hand with bartenders and beverage leaders to build affinity.

In addition to Travis’ appointment, Brooke, who became a partner in the company last year, will take on an expanded role as Vice President, Global Education and Advocacy for House Spirits Distillery.

The promotion comes at the end of a landmark year for her, having also earned the 2015 award for Best American Brand Ambassador at Tales of the Cocktail to become the first-ever craft spirits brand ambassador to earn this distinction. Brooke will continue to manage a growing team of Aviation American Gin Brand Supporters across the United States and Canada.

“We are thrilled to have Travis as a full-time member of our Aviation American Gin Brand Supporter team, and are excited to share the news of Brooke’s promotion and expanded role,” said Thomas Mooney, CEO, House Spirits Distillery. “2015 was our biggest and most successful year to date, due in large part to our talented family of Aviation American Gin Brand Supporters and Brooke’s unwavering dedication."

Perlick's Tobin Ellis Signature Cocktail Station Earns Global Acclaim

F

or the second time, Perlick has been recognized internationally for superior product design and functionality, receiving a 2015 GOOD DESIGN™ award for its Tobin Ellis Signature Cocktail Station. Perlick was selected for the honor, also known as the “Oscars of industrial design,” from thousands of companies throughout the world.

“The coveted GOOD DESIGN award confirms that the Tobin Ellis Signature Cocktail Station is a superstar that empowers bartenders to work better and ultimately provide superb customer service,” says Jim Koelbl, Perlick Vice President of Sales.

Perlick engineers partnered with six-time national bartending champion and renowned bar designer Tobin Ellis to create the cocktail station. Launched in February 2015, the station functions as a “cockpit” for bartenders, putting everything at their fingertips to enable fast, high-volume service in an ergonomically sound work area.

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Bar Business Magazine January 2016

The station houses refrigerated drawers, 24” drain board top, insulated bottle well, 30” sectioned ice bin, and rounded speed rail. To watch Tobin Ellis work his signature cocktail station, click here.

Family owned since 1917, Perlick’s award-winning commercial product lines have maximized profitability of the world’s finest restaurants, bars, and hotels. www.barbizmag.com

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Liquid Assets

Lost and found: Rediscovering Traditional European Spirits

By Elyse Glickman

Norwegian aquavit and Czech spirits find new fans through craft cocktail artistry here and abroad as the flavors of central Europe get a fresh spin in Southern California.

H

ow can you lift spirits of your customers during the downtime between the Holiday season and the first bloom of spring? Introduce them to something new! Take your clientele out of its comfort zone with old spirits from Europe just waiting to be discovered by a new generation of cocktail drinkers!

Something in the Water…

Aquavit, as the people of Norway, Denmark and Sweden know it, is not just spirit but a tradition passed on from 10

Bar Business Magazine January 2016

generation to generation, often in a shot glass. While many countries have a spirit whose name translates to “water of life,” Scandinavian Aquavit is different…and can be intimidating until you and your customers get to know it.

So why are some enterprising bartenders seeking out this once-obscure but now increasingly popular spirit?

Its flavor profile is one big reason. Whether served as a shot or as part of a cocktail, aquavit packs a mighty but complex punch, with a blend of herbs, spices and flavors widely associated with the holidays and winter. www.barbizmag.com

“You can take any classic cocktail and swap it out with a clear and unaged or aged aquavit depending on the recipe and it is going to work,” states Chris Grøtvedt, Bar Manager at The Thief (Oslo’s hottest boutique hotel).

“If you’re looking to update a Negroni, take away the gin and use aquavit. Unaged aquavit has fennel and anise notes while the aged aquavit has vanilla and crème brulee notes, which makes it a good alternative for a drink taking a bourbon or an aged rum.”

If you’re looking for a good way to introduce your bartenders and customers to aquavit, you can follow the lead of U.K.-born Jacques Langston, beverage manager at the Losby Gods resort near Oslo. Though Langston admits aquavit wasn’t his favorite when he set roots down in Norway, today he relishes teaching his guests about the strong and stalwart spirit. While he is particularly keen on staging wine and whiskey tastings, he finds himself fielding many requests for aquavit tastings. In fact, “the spirit of Norway” has been ordered so often at Losby Gods’ bar that the hotel now offers its own house label of aquavit.

According to Langston, drinking traditions differ between countries. In Sweden, drinking it is a summer tradition, while in Norway it is served in shots at Christmas time or at young man’s (or young woman’s) coming-of-age celebration. Danish and Norwegian aquavit spirits are distilled from potato while Swedish aquavit is made from grain. The 40% alcohol-by-volume spirit’s distinctive flavor derives from spices and herbs, with caraway or dill dominating the palate. Other prevalent notes include cardamom, cumin, anise, fennel and citrus peel.

Langston points out there are many theories on how aquavit came into existence in Norway, and recalls one about how a Danish lord presented the spirit to a Norwegian archbishop in 1531. He then explains many trace the start of aquavit production to the late 15th or early 16th century. “It could have been around for longer, but from that point on, the focus evolved into how to make it better,” he explains.

Lysholm Linie is perhaps the best-known brand of Norwegian aquavit on the U.S. market for its mellow flavor, derived from maturation in sherry oak casks.

During aging, the potato-based Linie Aquavit’s newest release gains notes of caraway, aniseed, sherry and vanilla, which create a rich, herbaceous flavor and a warming sensation that’s as welcoming as a crackling fire. Linie, which gets its name from the Norwegian word for “line” (for being aged on a ship that crosses the equator twice, aged like this since its inception in 1805) also includes aged and unaged expressions that end up being nice foundations for a variety of cocktails.

Conjuring Up Old Spirits in the Czech Republic Becherovka (beck-ur-OHV-kuh) is enjoying a resurgence among bartenders and cocktail fans at home and abroad.

Originally created in 1807 by a British doctor and a Czech www.barbizmag.com

apothecary as a medicinal elixir in spa town Kalovy Vary, it was later repositioned as a spirit because of its strong accents of cinnamon, clove, and ginger. Thanks to its recent acquisition by international liquor conglomerate Pernod Ricard, it is now increasingly recognized as the cure to the common gin in some cocktail recipes and as a flavor-enhancing liqueur in others.

Slivovitz, or plum brandy, has also been around for generations. Since 1934, R. Jelinek’s slivovitz was a part of many Jewish-American households, as Rudolf Jelinek focused on introducing his Kosher spirits to his fellow Jews. Some people not familiar with slivovitz may write it off as an “older person’s drink.” However, the histor y and the spirits’ versatility make the line today ripe for rediscover y…like the plums annually har vested for distillation.

We believe excellent service and beautifully crafted drinks should be the rule and not just the exception.

TAKING A DISTILLERY TOUR A trip to the R. Jelinek distillery (www.rjelinek.us) in Vizovice (a few hours from Prague by car or train) is a foray into both history and good taste, especially for bar professionals. One of the most compelling parts of the R. Jelinek story covered on the tour is that its products were peril of disappearing internationally when Nazis seized the Jelinek family’s assets in World War II, and in 1948, went under state control. Although though R. Jelinek products retained some distribution channels in the U.S. and elsewhere, the company returned to private ownership in 1994 after the Czech Republic’s political tides changed. Andre Lenard, the founding family’s surviving grandnephew, became a member of the revitalized company’s advisory board.

Daughter company R. Jelinek U.S.A., meanwhile, has steadfastly worked to bring slivovitz back into the American bartender’s vocabulary. Thanks to demand January 2016 Bar Business Magazine

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Liquid Assets

Whether you have 200 crowns ($8 U.S.) or 2,000 ($80 U.S.), we are going to make sure you know your money and your presence is good here. This attitude results in people coming for one one drink and instead ordering several. among creative bartenders in Prague as well as in the 30 U.S. states where the spirits are now available, the line has expanded to include different expressions of the slivovitz, Poire William liqueur, Bohemia Honey and bar staple Fernet.

Achim Šipl, a brand ambassador for the distillery, notes bartenders around Prague have updated the Manhattan as the Moravian Cock (Rooster) with the slivovitz in place of whiskey and the Old Fashioned with the Poire William and other fruit slivovitzes.

“While we have world-famous bartenders and bars who have brought world trends to customers in the Czech Republic, it is their accommodating nature, talent and sense of fun which has allowed them to introduce elements of our culture and cuisine into the mix,” says 12

Bar Business Magazine January 2016

Šipl on Prague’s emergence as a world cocktail capital. “As me and my fellow bartenders see it, the bar experience in Prague is about gastronomy, the visual experience, the integration of local raw materials and domestic products that make customers question what they think they know about cocktails.”

Cloud 9 Sky Bar & Lounge, at the top of the Hilton Prague Hotel, is the kind of place where Prague’s youngand-fabulous trendsetters easily mix with foreign visitors. One of its best-selling cocktails celebrates R. Jelinek Slivovitz’s original inroads into the U.S. market.

“We are especially proud of ‘Made in U.S.A.’ because it serves as a metaphor for how R. Jelinek’s Slivovitz went into the international scene when Rudolph Jelinek made the first import shipment of the Kosher line into the USA www.barbizmag.com

in 1934,” says Ladislav Gabor, who was finishing his stint as a principal bartender at Cloud 9. “By mixing the new R. Jelinek 5-Year-old Bohemian Honey with cranberry, vermouth and a dried plum garnish, this drink is the perfect way to introduce young customers to plum brandy, in a refreshing, modern way.”

AN ANGEL ON YOUR SHOULDER Black Angel’s, which has won numerous accolades as one of the best bars in the world (including New Orleans-based international competition Tales of the Cocktail), is noted for transforming Sazerac, Tiki drinks and other things familiar to the U.S. and European consumer into the best cocktails you’ve not yet tried.

“When we first opened, the local customers played it safe and ordered familiar things like Mojitos and Cuba Libres,” recalls general manager Pavel Šíma. “We were determined to keep those kinds of drinks off the menu.

Instead, we retooled and decided to start with forgotten classics such as the Sazerac (today, reinvented with R. Jelinek Slivovitz), Old Fashioned and other things our local customers were not drinking. From there, we integrated in some Czech spirits and local ingredients to put a new spin on these.”

Adding to Black Angel’s mystique are their many closely guarded secrets, and photography in this wonderfully photogenic bar is strictly forbidden.

As Siman took me behind the scenes (including an innovative prep kitchen that blurs the lines between craft cocktails and volume production), imaginative theme spaces, and even a UNESCO-designated well from the Middle Ages (doubling as a table, with its plexiglass topper), he pointed out one of the bar’s goals is to turn the notion of exclusivity on its head.

“We don’t have waiters—only bartenders—and we circulate them so at some times, they are behind the bar and the other times they are taking orders and getting to know the customers,” continues Šíma. “Whether you have 200 crowns ($8 U.S.) or 2,000 ($80 U.S.), we are going to make sure you know your money and presence is good here. This attitude results in people coming for one hour for one drink and instead ordering several drinks and staying until closing.”

Black Angel’s is in good company, with Bugsy’s having laid the groundwork for Prague’s craft cocktail culture since 1995 and Tretter’s New York Bar (named for master bartender Michael Tretter) getting high marks on sites like WorldsBestBars.com.

“There are so many new trend coming ups in our bars, to the point where we’ve been described as a second London,” Jan Braniš, Bugsy’s bar manager says as he adeptly prepares the Bugsy’s Rose signature cocktail.

“What makes or breaks a bar in Prague, besides the drinks, is the quality of our people and the atmosphere.

We believe excellent service and beautifully crafted drinks should be the rule and not just the exception.” www.barbizmag.com

Recipes Nordic Mule North Shore Aquavit Distillery Staff 1-1/2 oz North Shore Aquavit – Private Reserve 1/2 lime Ginger beer Squeeze half of lime into tall glass. Add aquavit. Fill with ice, top with ginger beer. Garnish with lime wedge.

Made in the U.S.A. Roman Uhlir, Cloud 9 at the Prague Hilton Hotel 2/3 oz R. Jelínek Kosher Five Year Gold Slivovitz 1/3 oz Grahams Tawny Port 3/4 oz dry vermouth 2/3 oz Dom Benedictine 2/3 oz cranberry juice 3 dried plums, skewered Combine spirits and juices in a mixing glass and stir. Fill a rocks glass with ice. Pour into the glass slowly, Top the glass with dried plums.

Almond Cigar Jan Braniš, Bugsy’s Bar, Prague 2nd place in world final Havana Club Grand Prix 1998 1¾ oz Havana Club añejo 3 años (or other aged rum) ¾ oz Amaretto di Saronno ¾ oz Rose’s Lime Cordial Cinnamon stick and long lime peel for garnish Combine ingredients in a shaker. Strain into a v-shaped cocktail glass. Garnish and serve.

Made in the U.S.A.

January 2016 Bar Business Magazine

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Liquid Assets

Recipes

Bugsy’s Rose

Yakuza

Jan Braniš, Bugsy’s Bar, Prague

Josef Zelenka, Bar Manager, The Mandarin Oriental Prague

1¼ oz vodka of choice ¾ oz fresh lime juice ¾ oz Rose’s Lime cordial ½ oz rose extract 1¾ oz natural spring water Rose petals

1 oz Bombay Gin ½ oz lime juice ½ oz sugar syrup 1 oz Monin Passion Fruit Syrup ½ oz Aperol 1½ oz pineapple juice 1 egg white

Combine ingredients in a shaker and shake. Pour into an Old Fashioned glass over ice cubes. Garnish with rose petals and serve.

Cuban Apple Smash Jan Braniš, Bugsy’s Bar, Prague 2 oz Havana Club añejo 3 años (or dark rum of choice) ½ oz sour apple liqueur ¾ oz caramel syrup 1 oz fresh lemon juice 1 tbs fresh ginger juice Mint and caramelized apple slices for garnish Combine ingredients in a shaker and shake. Pour into a julep cup over crushed ice. Caramelize apple slices with a hand torch.

Arrange apple slices and mint on top of the cup.

1st Crescit Sour Tretter’s New York Bar, Prague 1 oz Bols Genever ¼ oz Chartreuse 1 egg white ¾ oz honey water ¾ oz fresh lime

Combine all ingredients in a shaker with the egg white.

Add ice cubes to the shaker to create foamy texture of the cocktail. Strain into a large martini glass without the ice cubes. Garnish with passion fruit seeds or a passion fruit half.

Bartender’s note: The flavor profile is based on the Bon Pari, a traditional Czech candy.

Honey Kiss Zuzana Pavlíčková 1½ oz Bohemia Honey 2 oz pear-infused vodka 1 tsp simple syrup infused with orange and apple 2 oz ginger ale or tonic water Garnish with cinnamon skewered with apples and pears dipped in honey and cinnamon In a shaker mix all ingredients. Pour into a glass with ice.

Top up with ginger ale or tonic. Garnish and serve.

Yakuza

Pour ingredients into a cocktail shaker. Fill with ice and shake for 10 seconds, or a touch longer because of the egg white. Strain into a chilled or ice-filled Old Fashioned glass. Garnish with a cherry, a slice of orange, or whatever is fresh.

Aperol Cherry Julep Tretter’s New York Bar, Prague 1¼ oz Aperol Dash orange bitters Top with Thomas Hanry elderflower tonic Garnish candied Marachino cherry Pour Aperol into a julep cup. Add bitters and top with tonic.

Gently stir. Garnish with a cherry.

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Bar Business Magazine January 2016

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How To:

Master Mixology

MIXED UP: Cocktail Ideas for the On-premise Mixologist

W

ith winter weather upon us and National Hot Toddy Day landing on January 11th, we wanted to start this month’s edition of Mixed Up with a recipe for the ultimate cold-weather cocktail, the Toddy.

And while we follow that up with a few more whiskey-based drink ideas, we also throw in a few rum recipes and tequila ideas from Justin Timberlake’s personal Sauza® 901® mixologist, Eddy Buckingham.

We start off, however, with the Castle Hot Toddy, a classic winter cocktail made with Knappogue Castle Single Malt Irish Whiskey. Reconstructed by Joann Spiegel,

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Taproom Manager at the award winning Dead Rabbit in New York City, the Castle Hot Toddy is a great hot beverage for the looming colder months. Then we try more Knappogue in the Emerald Old Fashioned, a recipe designed by Joaquín Simó, named 2012 Best US Bartender at Tales of the Cocktail and co-owner of award winning cocktail bar Pouring Ribbons.

Kicking off 2016 and the winter season with some heavy-hitter mixologists, we hope you can use some of these whiskey and tequila recipes on-premise this year. And don’t forget about the rum!

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How To: Mexican Café

Emerald Old Fashioned

By Joaquín Simó, 2012 Best US Bartender (Tales of the Cocktail) "The Emerald Old Fashioned is my attempt to bring civility and deliciousness back to a holiday desecrated with green beer and disrespectfully-named shots,” says Simó. “Knappogue Castle 12 year's fruit and spice notes serve as a rich base to layer upon whispers of herbal complexity and lashes of floral honey. The whiskey remains front and center in this elegant ode to the original cocktail, with only a refreshing sprig of mint to add brightness to the nose and eye while echoing the alpine herbs in the modifiers.”

2 oz Knappogue Castle 12 year Single Malt Irish Whiskey 1 tsp honey syrup (2 parts wildflower honey : 1 part water) 1 tsp Green Chartreuse 1 tsp Dolin Genepy des Alpes Add all ingredients into a rocks glass. Add ice and stir briskly until chilled and combined. Garnish with a mint sprig, spanked and inserted.

CHILLY TEQUILA TASTES

RECIPES: A WHISKEY WINTER Castle Hot Toddy Recipe courtesy of Joann Spiegel, bartender at the award winning Dead Rabbit in New York City, winner of the prestigious Spirited Award for World’s Best Cocktail Bar and Cocktail Menu (Tales of the Cocktail 2015).

1 oz Knappogue Castle 12 Year Old Single Malt Irish Whiskey 1 oz Celtic Honey Liqueur Lemon wheel 5-6 cloves 1 cup hot water Add Knappogue Whiskey and Celtic Honey to an Irish Coffee glass.

Insert the cloves into your lemon wheel and drop it into the glass.

Very gently muddle the lemon a few times to release the juices.

Fill the glass with hot water.

It looks like winter is finally here with these frigid temperatures.

Here are a few warming cocktail recipes on behalf of superpremium Sauza® 901® Tequila, founded by Justin Timberlake. All recipes were created by Justin Timberlake’s personal Sauza 901 mixologist, Eddy Buckingham.

Chocolate Caliente 2 parts Sauza 901 Tequila 1 cup whole milk 2 oz dark chocolate bar, chopped Pinch of cayenne pepper Pinch of cinnamon Splash of agave syrup Whipped cream for garnish

Emerald Old Fashioned

Laphroaig® Ginger[Bread] Man Created by Tyson Buhler (New York, NY) 1.5 parts Laphroaig 10 Year Old 3/4 parts cantaloupe juice 3/4 parts lemon juice 1/2 part ginger syrup Combine ingredients in a cocktail shaker with ice.

Shake and strain into coup glass.

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Bar Business Magazine January 2016

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Heat milk and chocolate on hot stove and stir. When chocolate is fully melted, remove from heat and introduce other ingredients.

Pour into mug and top with whipped cream.

Laphroaig® Ginger[Bread] Man

Mexican Café 1.5 parts Sauza 901 Tequila 1 part vanilla liqueur 1/2 part coffee 1/2 part heavy cream Add all the ingredients to a shaker and fill with ice. Shake, and strain into a chilled rocks glass filled with fresh ice.

Mexi Toddy 2 parts Sauza 901 Tequila 1 part honey syrup 1 cup hot water 1/2 part agave syrup Lemon wedge Cinnamon stick Cloves Star Anise Combine all ingredients in large mug. Stir gently and allow the cocktail to steep for two minutes.

Baja Blitz 1 oz Peligroso Cinnamon Tequila 1 pint of your choice Pour chilled Peligroso Cinnamon into shot glass. Enjoy with your favorite pint of beer.

RE-USING RUM Looking to clean out your bar to start the New Year off fresh?

Don’t let your spirits go to waste – instead, here are two delicious ways to incorporate rum into your winter festivities.

Baja Blitz

Cali Kiss 1.5 oz Caliche Rum 3/4 oz St-Germain French Elderflower Liqueur 1/2 lemon cut in quarters 1 oz chilled Prosecco (or any dry sparkling wine) In a mixing glass muddle the lemon, Caliche and St-Germain, fill with ice and shake until chilled. Strain into an ice filled flute and top with sparkling wine.

Cali Tidings Punch 1 liter bottle Caliche Rum 1 bottle of sparkling wine 16 oz of Ruby port 12 oz curaçao liquor 12 oz fresh squeezed and strained orange juice 12 oz unsweetened pineapple juice 8 oz fresh squeezed strained lemon juice 8 oz light agave nectar 1 large block of ice For garnish: 1 cup of hulled and sliced strawberries 2 large lemons pitted and sliced Handful of mint leafs In a large punch bowl combine the caliche, port, curaçao, fruit juices and agave nectar, stir until well incorporated, refrigerate for at least 4 hours. When ready to serve add the large block of ice and garnishes to the bowl, gently stir in the champagne.

Serve in small punch cups.

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January 2016 Bar Business Magazine

17

How To:

Bar’s r u o Y d r a u G Business Landscape

Bar Room Po lit ics

How to Pull the Strings Your Way

W

ith the 2016 elections quickly approaching, business owners everywhere are wondering who will win the presidential race and how the political makeup of Congress will change. Important as the federal elections are, though, your business operations will likely be impacted more profoundly by decisions made at a much lower level of the political food chain: Your city.

“It’s all too easy to focus our attention on legislation and regulations from the federal government,” says Sean W. Hadley, a Moorestown, NJ-based attorney active in government relations. “But the reality is that businesses are more affected by ordinances passed by their local communities than by anything that goes through—or doesn’t go through--Congress and the federal agencies.”

All Politics ARE Local The good news is that you can make your voice heard. “The small business owner can have the greatest effect at the local 18

Bar Business Magazine January 2016

government level, where the politicians can be the most approachable,” says Marc H. Pfeiffer, Assistant Director at the Bloustein Local Government Research Center, New Brunswick, NJ (blousteinlocal.rutgers.edu/staff/).

Local governments typically control a host of missioncritical “quality of business” issues. Among them are business licensing (including liquor) and expansion, the design of storefronts and building exteriors, parking, billboards, and any activities that affect the environment.

An unfriendly ordinance passed in any of those areas can throw a monkey wrench into your bar’s business engine.

Consider the control that local governments have over roads, including their quality, their cleanliness, and the placement of navigational signs making it easy or difficult for customers to find a business. Even the direction of traffic depends upon local regulations. Imagine waking up to discover the street in front of your business changed to a one-way conduit—in a direction not favorable to your customer pool.

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Shutterstock/ Asier Romero

Politics at the municipal level can have a profound effect on small business operations like bars and nightclubs, as local ordinances can change the business environment in terms of licensing and zoning requirements, employment law and even traffic patterns. By Phillip M. Perry

Business ambitions can often be stymied by apparently arbitrary regulations. “Zoning issues are a local concern and an issue many people don’t worry about until they start to expand or make business improvements such as installing new signs or larger and brighter windows,” says Hadley. “Then they can run into problems with a requirement to preserve structural elements or utilize certain themes or colors.”

Business-government conflicts can also arise when measures are passed that affect employment practices— paid sick leave and minimum wage laws among them.

“Changes to city and state regulations can only be addressed by your local representatives, not by Congress or the President,” Hadley points out.

Stay Alert Given the realities of local politics, how can you protect your business from damaging regulations? First, you need to be informed about what’s going on in your town hall, including pending legislative initiatives. “Ignorance is not bliss when it comes to local laws and regulations,” says Nancy Bocskor, a political consultant in Arlington, VA (nancybocskor.com).

Second, you need to set up your own early warning system so you hear about harmful regulatory changes before they are so far advanced that you can no longer effectively counter them. “When a story about a new regulation appears in your local press, it’s too late for you to make an impact,” says Fairfield, Conn.,-based attorney Cliff Ennico, author of Small Business Survival Guide (Adams Press). “A lot of debate occurs before votes are taken on a proposed measure, and you need to get your voice heard early in the decision cycle. If there’s a hearing in three weeks about rezoning the downtown business district, and that’s where your business is located, you want to be at that hearing.”

So how do you set up an early warning system? One way is to take advantage of existing resources. “Most municipalities have a web site,” says Pfeiffer. Many local agencies now post their calendars on line making it easy to check their activities. Is a meeting scheduled for the near future? Obtain a copy of the agenda to see what topics might impact your business.

“Your town web site may offer news feeds, e-newsletters, Facebook pages, or Twitter posts,” says Pfeiffer. All such media are conduits for news about proposed regulations.

“Also look for ‘hyperlocal’ websites where people write blogs or maintain online newspapers about local government.”

Speak Up Making your voice heard at town meetings is one way to influence your local political establishment. Another way is to reach out to local politicians, make your presence known, and become a trusted source for feedback on how proposed legislation might affect the small business community.

Start with the council person who represents your specific neighborhood. Call that person’s office and make an appointment to discuss topics of interest to the business community. While there, ask for the names of other local movers and shakers with whom you should initiate a dialog.

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You can also invite your representatives to visit your.

“Let the politicians see what you do and how many people you employ and how much tax revenue you generate,” says Bocskor. “You need to be proactive in making sure they understand the value you bring to your community.”

Whatever the venue, establish a dialog rather than a oneway diatribe. Consider emphasizing your potential to help the politician do a better job. This plants an important seed that can flower into a measure of influence: The politician will see you not only as a spokesperson for your own interest, but also for those of the business community at large.

Offer to Help Helping a politician do a better job promotes the kind of win-win relationship that goes a long way toward building your power base. “Politics is all about back scratching,” says Ennico. “Tell the politician how you will help him or her in exchange for support for your position on proposed legislation.” If the politician supports a bill you want passed, will you invite him or her to speak before your civic group on the topic? That can help garner more voters.

While you can employ the process described above for as many politicians as you like, your time is limited so you will need to be selective. “Find out who the powerful people are,” suggests Ennico. “In every community there are people who are effective in making things happen and people who are not. And the former might not be the people with the biggest offices. In one town, for example, it might be the head of the local Democratic party rather than the mayor.” Your informal talks with local politicians will reveal the names of these power players. Those are the ones you want to cultivate.

----------- Know the RuleS OF THE GAME ---------Respect ethical boundaries when you deal with politicians. “You have to follow the rules regarding expenditures or gifts,” says Hadley. “This is true even for smaller social gratuities.”

You might be tempted to invite your local mover and shaker to lunch, for example, given that meal’s traditional role as a business negotiation ice-breaker.

Bad idea. You do not want to offer a favor with a financial component, no matter how modest.

Offering to treat the politician to lunch (or even a beer), warns Hadley, can put the individual in the awkward position of having to turn down a social offer.

You don’t want to start your relationship on a sour note.

“Even if a luncheon is not technically bribery, politicians are very suspicious of anything that might be misinterpreted that way by a third party,” says Ennico.

“In today’s world a politician is only one scandal away from being worthless.”

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How To: Reach Out As the above suggestions imply, your first contact with a politician should be to establish a dialog. Avoid making a request right away. “It’s never good to start a relationship with your needs at the forefront,” says Hadley. “Remember you will need this person’s assistance over the long term.”

Once you have cultivated a growing

relationship, feel free to approach the politician with your own ideas.

Perhaps you want to block a proposed regulation. Or perhaps you want to promote an entirely new businessfriendly ordinance. You will be happy that you have a friendly person to call.

Despite the relationship you have established with the politician, you want to present your case as benefitting

Water soda Goblet

World’s Best Glass alternative

the community at large rather than your business in particular. That requires doing your homework.

When speaking about how a proposed regulation will affect your revenues or your employment activity, do so in the context of how your activities, and those of other businesses in your town, help the region grow and prosper. Do the numbers. “Back up your story with data,” says Bocskor. “Show the official how a certain proposed regulation will affect x, y and z. People need to know the consequences of government actions that too often sound good before you do the math.”

Budget Concerns • Made of high quality, durable polycarbonate • Safer environment with no exposure to broken glass • All products can be chilled and are dishwasher safe • An elegant appearance with the same clarity, weight and feel of glass

Speaking of numbers, few are as important as the ones in your town’s budget. “Budget issues are really issues of priority,” says Hadley. “Suppose you need improvements to the roads leading to your place of business, and you were able to convince your town to pass an ordinance requiring that. You think you have accomplished your goal, but if the town budget does not allocate the requisite funds you will see no road improvements over the coming year.

“You can’t just walk into your town hall and say ‘I want to know everything about the budget and want to influence it.’ Your town officials will not be forthcoming. You have to get to know them first as a small business owner.”

Team-up for Success

Contact us for more information: Innova Products US LLC Ph: 1 800 884 4543 usinfo@innovaproductsltd.com www.strahlbeverageware.com

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Bar Business Magazine January 2016

The suggestions above have championed the political power of the small business owner acting alone.

But there’s no doubt that scheduling constraints can hamper the most wellintentioned effort. “We are so busy running our bars and working 24/7 that taking time out for civic involvement is a lot to ask,” says Ennico. “It’s easy to let things slide being too busy.”

Reach out to your fellow business owners for assistance. Working together can improve the climate for everyone.

“If you don’t reach out, you will become invisible to local politicians,” says Ennico. “And when you become invisible, bad things can happen.”

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How To:

Inside Tip:

d the n a t s r e d n U Gratuity Shift

By Jonathan M. Boulahanis

The Unspoken Reason That the Hospitality Industry is Moving Away From Tips

Shutterstock / Carolyn Franks

J

oe's Crab Shack made headlines recently when it announced that it is doing away with "tipping" and raising wages for all traditionally tipped employees. Joe's became the first chain restaurant company in the country to make this change. However, Joe's is not the first to do away with tipping. In fact, there has been a movement making a push across the country. Last month, Danny Meyer's Union Square Hospitality Group in New York City did away with tipping. In recent years, Thomas Keller’s Per Se in New York and French Laundry in Yountville, Calif., Alice Waters’ Chez Panisse in Berkeley, Calif., and Grant Achatz’s Alinea in Chicago all did away with tipping.

There are many reasons that restaurants and bars are moving away from the traditional tipping model. Any number of articles on the subject point out that there are arguable benefits for the employee, the employer, and the customer. For example, restaurants that shift the compensation model away from tipping pay the employees a higher

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hourly wage. This provides for a more stable, consistent, and meaningful living wage for employees who do not have to be concerned with the risks of customers failing to tip. For the restaurant itself, it increases menu prices 10-15% to offset the higher labor costs. Additionally, the prevailing thought is that employee retention would increase, creating lower turnover rates that result in lower labor costs.

However, noticeably absent from the news reports related to the shift away from the traditional tipping model is that the shift may actually be driven in large part as a response to the aggressive focus on the restaurant industry by plaintiffs' attorneys and the United States Department of Labor.

This phenomenon is supported by statistics. According to Department of Labor (DOL) statistics, from 2009 to 2013 Fair Labor Standards Act (FLSA) investigations into hotels and restaurants increased from approximately 4,500 investigations to approximately 7,300 investigations. In 2013, investigations into restaurants and hotels made up January 2016 Bar Business Magazine

21

How To: sharing in the tip pool, improper service charges, employees working dual jobs, employees being charged for uniforms, and many other violations. The Act provides for harsh penalties for employers, including liquidated damages in the amount of two times the backpay, and provides for recovery of attorneys' fees and costs. The law also provides for a mechanism to bring a quasi-collective action, called a collective action, that allows notice to be sent to all employees no matter the size of the employer.

Third, many employment practices insurance liability policies actually carve out coverage for wage and hour violations because of the high frequency that restaurants are hit with lawsuits. Most insurance carriers will offer wage and hour coverage, for a substantial additional cost, and with the limitations that the insurance coverage (1) would not apply to government investigations, (2) only provides for defense costs up to a certain point, and (3) would not cover any type

approximately 53% of all DOL investigations. In 2014, that percentage remained above 52%. As part of the DOL's P3 initiative (Plan/Prevent/Protect), nearly 2,000 investigators have been added in the last three years. On top of DOL investigations, each state and many local municipalities regulate wage and hour violations.

So why is the industry shifting the whole model of compensation, as opposed to merely complying with the tip credit provisions and regulations? The problem is three-fold.

First, compliance is not as easy as it sounds. The regulations associated with tipping and payment of employees are vague and unclear at best. The FLSA and DOL fail to set forth regulations that provide a restaurateur with easily comprehensible guidelines on how to comply with its regulations.

For example, restaurants have been forced to defend the "dual job" regulation by proving that servers actually spend 80% of their time waiting tables or doing other tip producing work, and less than 20% of time doing other tasks like cleaning, making coffee, and rolling silverware. It is nearly impossible to prove, and impractical to try to regulate.

Second, the FLSA provides a friendly way for plaintiffs to get into court, to plead a violation, and turn the case into a collective or class action. The law has evolved in this area to include allowing for violations that arguably drop servers below minimum wage (knowing that the vast majority underreport tipped earnings) because of employees being charged for walkouts or breakage, improper employees 22

Bar Business Magazine January 2016

of monetary settlement. Not a lot of bang for your buck.

The benefit of shifting away from the traditional tipping model is that by paying tipped employees above minimum wage and doing away with tips, tip sharing, and tip pooling, restaurants can avoid the costs of complying with the additional regulations that come with the tip credit. There would be substantially less risk and less concern about investigation or litigation involving improper employees sharing in the tip pool, employees working dual jobs employees' wages falling under the minimum wage, the reporting requirements associated with taking the tip credit, documenting and reporting amount of tips received, and calculating the proper amount of overtime wages.

It is clear that the trend has been increased litigation, regulation, and governmental oversight in tipped occupations — with a focus on the restaurant industry. Many in the industry actually call the tip credit a "tip penalty." Moving away from tipping is, at least in part, a reaction to these trends. The costs and risks associated with taking the tip credit outweigh the benefit of taking the tip credit for many. For this reason, without significant clarification and amendments to the Fair Labor Standards Act and its enforcement for the restaurant industry, it is likely that the industry will continue its shift away from tips.

Jonathan M. Boulahanis is a partner in the Chicago law office of Gordon & Rees. Contact him at jboulahanis@gordonrees.com.

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Shutterstock / bogdanhoda

Many in the [SERVICE] industry actually call the tip credit a "tip penalty."

Moving away from tipping is, at least in part, a well-thought-out reaction to these trends. The costs and risks associated with taking the tip credit outweigh the benefit of taking the tip credit for many.

What is the Fair Labor Standards Act (FLSA)?

As described by the United States Department of Labor on its website, www.dol.gov: The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

FLSA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.

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FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.

Hours Worked: Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.

Record keeping: Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.

Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.

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The Taxman Cometh: Ten Easy Ways To Cut Your Income Tax Bill for 2016 (And All the Years to Come)

By By William J. Lynott important to remember the draining effect that taxes have on those beforetax dollars. Here are ten easy tax planning tips that will help you to maximize your net income in 2016 and all the years to come.

1

Organize Your Records Now

“If you scramble at tax time looking for receipts and other records to pass along to your accountant, you’re probably missing out on some healthy deductions,” says Blumenthal.

“By keeping your records up-to-date and easy to understand, you’ll make your accountant’s job easier; and an easier job for your accountant means a savings on your tax preparation bill as well as your taxes.”

2

Look for Deductions You May Have Missed

Many business owners and managers miss out on important deductions by waiting until the last minute say the pros. “I’m willing to bet that every taxpayer misses at least one deduction on their tax return each year,” says Roni Deutch, tax attorney and author of The Tax Lady’s Guide to Beating the IRS. “Keep receipts for everything,” says Bridget Crawford, Professor of Law and Associate Dean, Pace Law School. “The cost of office supplies and internet service are easy to track, but keep in mind those ‘minor’ expenses that keep your business going day-to-day.”

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Bar Business Magazine January 2016

left: Shutterstock / Johavel; right: Shutterstock/ haveseen

I

t’s too late to do anything about 2015 taxes, but now is the best time to take steps to minimize Uncle Sam’s bite out of your income for 2016.

If you’re like many busy bar owners, you don’t pay much attention to income taxes until the filing deadline looms.

“That can be a costly mistake,” says Public Accountant, Jay Blumenthal, Abington, Pa. “One of the most effective ways to pare your business as well as personal income taxes to the legal minimum is to make tax planning a year-long effort.”

CPA Genevia Gee Fulbright agrees.

“Proactive tax advisors suggest that you take an active role in tax reduction strategies throughout the year,” she says. “Because tax laws change often, it’s best not to wait until the end of the year or after to decide whether you can take advantage of important tax deductions.”

While it’s only natural for you to devote the biggest share of your time to maximizing your income, it’s

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TIP #5: Combine pleasure trips with some business in order to deduct some of your travel expenses.

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January 2016 Bar Business Magazine

25

3

deduct Purchases Financed

By Loans or Credit Cards

“Most of the time financing purchases on your credit card is a bad idea,” says Deutch. “However, since the interest paid on business expenses is tax deductible, there are exceptions, especially toward the end of the year when you need to rack up a few more deductions. Simply pay some business expenses or purchase some office supplies on a business credit card just before December 31. You get the deduction on your 2016 tax return, but you don’t have to pay the bill until next year.”

4

T ake Advantage of Section 179

Most new business equipment can be depreciated over its useful life or expensed immediately under Internal Revenue Code Section 179. This provision of the law permits you to deduct the full cost of capital assets in the year of purchase up to a maximum deduction of $25,000. “If you’re not taking advantage of the Section 179 deduction, you’re missing out,” says Deutch.

Taking the 179 Deduction is easy for you or your accountant. Simply fill out Part one of IRS form 4562, available free from the IRS ( www.irs.gov). Attach it to your tax return as you would any other additional form, such as a Schedule C. Consider making any capital expenditures you’ve been planning before year-end 2016 in order to lower that year’s tax bill. Purchases made right up to December 31 2016 are eligible for the Section 179 tax deduction.

5

Maximize Your Tax-Deferred Retirement Account Early

Make the maximum allowable deposits into your 401(k) or IR A account as early in the year as possible. This is universally regarded by financial experts as one of the most important tax- savings techniques.

“When you’ve got a stack of bills, it’s easy to forget the person you should be paying first – yourself,” says Crawford. “I don’t mean a salary. I mean contributions to your retirement account, even if you can only manage $50 to $100 each month don’t wait until next year hoping that you’ll have extra cash; you want to ride that train of compounding interest as long as possible.” Maximum allowable contribution as of this writing is $18,000, or $24,000 if you are age 50 or older.

7

Will You Make Charitable Contributions in 2016?

If you plan to make charitable contributions in 2016, consider donating long-term appreciated securities instead of cash. You’ll receive a full fair market value deduction and pay no capital gains tax on the securities.

Or sell depreciated securities for the tax-deductible loss and then give the cash from the sale to charity.

Combine Pleasure Trips with Some Business

If you’re planning any pleasure trips in 2016, consider adding in a little business. Can you visit a beverage business or trade association in your destination city 26

6

Bar Business Magazine January 2016

Start saving for college payments with a 529 plan. www.barbizmag.com

top: Shutterstock / iQoncept; bottom: Shutterstock/ zimmytws

Being charitable means gaining deductions.

to discuss business techniques that may help to improve your management skills?

When you travel away from home, you may deduct fares, meals, lodging, and incidental expenses (as long as they are not extravagant). The definition of “away from home” is any trip that takes enough time that the traveler could reasonably be expected to need sleep or rest.

The definition of home is your regular place of business. When the primary purpose of the trip is business, you may deduct travel expenses even if you enjoyed some non-business extracurricular activities.

If more than 50 percent of the time you spend away from home is spent on pleasure, the cost of transportation will be disallowed. However, if more than 50 percent of your time is devoted to business, all travel expenses are deductible.

8

Balance Investment Gains and Losses

Keep a close eye on your personal investments during the year. By selling appreciated assets and liquidating under-performing investments, you may match gains and losses to minimize your personal income taxes.

If you have sufficient losses to offset your gains, you may deduct the losses on sales completed by December 31. Note, however, that the amount of capital losses that you can use to offset ordinary income is limited to $3,000.

If your net loss totals more than $3,000, you may carry losses over $3,000 forward every year until you use them up.

9

Having a Blessed Event?

If you’re expecting the stork to visit your house next year, remember to obtain a social security number for babies born any time during 2016, right up to December 31. Put the newcomer on your personal tax return to receive the benefits of claiming the child as a dependent or claiming head of household status.

10

Saving for College?

If you’re facing college tuition expenses in the years ahead, a 529 College Savings Plan can help to build your college fund and save on taxes while you’re doing it. Offered by 49 states and the District of Columbia, 529 plans allow a lifetime contribution as much as $250,000 to pay for children’s’ college. Contributions compound tax-free and withdrawals are tax-free as long as they are spent for higher education. Savings Account, the plan must have an annual deductible that is not less than $2,250, up from $2,200 for tax year 2015; but not more than $3,350, up from $3,300 for tax year 2015. For more information on college plans: http://www.savingforcollege.com/intro_to_529s/whatis-a-529-plan.php.

Other Tax Adjustments for 2016 The standard deduction for heads of household rises to $9,300 for tax year 2016, up from $9,250 for tax year 2015. Other standard deduction amounts—$6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly— remains unchanged. The personal exemption rises to $4,050, up from the 2015 exemption of $4,000. However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $259,400 ($311,300 for married couples filing jointly).

Keeping your annual contribution to Uncle Sam to the legal minimum is the smart way to increase those valuable after-tax dollars. Get an early start and keep tax reduction in your plans all year long. www.barbizmag.com

DON’T MESS WITH THE IRS

B

enjamin Franklin said there were only two things certain in life: death and taxes. But perhaps another certainty is this: Bar owners who choose to mess with the IRS will find themselves in serious trouble.

Year-in and year-out we hear tales of those who decided to tangle with the tax monster, and they always seem to lose. In 2014, a Brooklyn, New York bar owner who suddenly closed down his seemingly prosperous venue called reBar left a string of crying soon-to-be brides in his wake, as dozens of couples had put deposits down to hold the space for upcoming wedding receptions. After shuttering the doors of his bar unannounced, owner Jason Stevens literally disappeared. Some of the couples had paid Stevens upward of $20,000 to host their nuptials at reBar, and went without a refund when he fled and eventually filed for bankruptcy.

Stevens unscrupulous behavior, however, did not end with the wedding rip-offs. In June of 2014 he pleaded guilty to tax evasion, and following a plea agreement, was sentenced to serve a prison term between three and ten years. Stevens had failed to pay New York State some $1.4 million in taxes on revenue earned by reBar over the course of nearly three years of business.

Meanwhile, in California, a less nefarious bar room tax scenario played out in 2015, where an aging owner failed to focus on payment habits of the men to who he leased his business to for nearly six years.

According to a report on www.taxrates.com, 86-year-old John Schireck, longtime owner of the Outpost bar in San Ramon, California, may be held liable for nearly $400,000 in unpaid taxes on $3.3 million in sales recorded by two men who leased his business from 2008 to 2014.

While Schireck himself did not operate the venue dayto-day, the sales tax permit for the Outpost remained in his name. ““[A] seller’s permit holder is the one liable for taxes, regardless of who runs a business,” said Venus Stromberg of the California State Board of Equalization.

Schireck claims to have no knowledge of any inappropriate tax filings as he was not directly involved in daily operations at the bar. The state, however, will continue to view him as a liable party in the process.

Ignorance is not generally an accepted form of defense when it comes to taxes. In California, sellers are “responsible for paying the correct amount [of sales tax] to the BOE.” In an effort to “make doing business in California as easy as possible,” the BOE provides an enormous amount of information on its website.

The lesson learned: Whether you’re a cheating owner or a negligent owner, taxes are one of Ben Franklin’s certainties, and getting caught mishandling them may be one of ours. So pay up!

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The Next

Generation?

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Bar Business Magazine January 2016

www.barbizmag.com

As a new era of nightlife employees come of age and apply for jobs at bars and clubs across America, two industry veterans and regular Bar Business contributors — Bob Johnson and Kevin Tam — talk about what they are seeing from the next generation of bartenders, managers, and owners making their way into this business. And while they are not overly optimistic, they do have some tips for success.

Breaking News (and Rules)

By Bob Johnson (aka BobTheBarGuy.com)

I

t’s amazing what you can glean from a newspaper that often times relates to the nightclub and bar business. Some of my best ideas for articles have been fueled by interpretation and imagination from articles in daily newspapers that crossover to the nightlife industry — sometimes in a positive way, sometimes not.

Ultracrepidarian Bar Managers While reading columnist Bill Kirby’s article in the November 8th Augusta Chronicle last summer, he mentioned his “Word for the Day,” and I have never heard a word that better describes the mindset of so many of the bar owners I have worked for over the years: Ultracrepidarianism. Defined as “he habit of giving opinions and advice on matters outside of one’s knowledge,” in the bar business it relates to those who are good at one thing and think that makes them an expert on other things. Do you know a manager like that? Do you think Jon Taffer would agree with this fitting definition? I do.

left: Shutterstock / Daxiao Productions

Entitled Newbies Another favorite newspaper feature of mine is “Today’s Joke,” which often enables me to better adapt my human resource management understanding when hiring new people. You see, I’ve always had a problem understanding today’s “millennial” generation and their lack of a work ethic (I’m sure I’m not the only one), and this particular joke brought me some insight — and a laugh: A young man hired by a big nightclub reported for his first day of work. The manager greeted him with a warm handshake and a smile, gave him a broom and said, “Your first job will be to sweep out the liquor storeroom and the dressing rooms.”

“But I’m a college graduate,” the young man replied indignantly.

“Oh, I’m sorry. I didn’t know that,” said the manager.

“Here, give me the broom – I’ll show you how.” www.barbizmag.com

Dear Abby Bar Etiquette I recently read syndicated columnist Dear Abby’s discussing one of her fans who inquired about drinking from water glasses in restaurants. Her complainant wrote, “I was served a glass of water with the server placing her fingers over or around the rim of the water glass – the part of the glass you drink from. I experience this quite often, in restaurants and bars, and immediately switch to bottled water! Should I tell them about their ‘improper etiquette?’”

Abby’s response: “You are correct that there is some risk of contamination if fingers touch the rim of your glass. Just say, ‘Hey, could you do me a favor and not touch the rim of the glass with your fingers? I’m worried about cross contamination!’”

Abby ought to know that bartenders are constantly reminded that they are not allowed to touch any garnish going into a drink with their bare hands.

Bartenders or bar backs preparing fruit are supposed to stick a sword pick through the rind then place the fruit on top of the drink without touching the fruit with their fingers. Fruit garnishes should be cut and prepared before opening, which means when the shift starts the sword pick should already be in the fruit.

The Millennial generation is now moving into bar jobs.

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Bombay Brand Ambassadors Another example of what I learned from a newspaper occurred last year when I made a weeklong journey to New Delhi, India. Before teeing off at the Delhi Golf Club on the second day, I was reading the English version of the New Delhi Times while sipping coffee.

I came across an article about Indian nightclubs using “brand ambassadors” to promote their club from within — forget about the expensive advertising American nightclubs have always relied on, such as television ads, radio ads, newspaper ads, magazine ads, and huge billboards to attract customers. That doesn’t even count in-house promo tents at the tables, on-site signage or DJ’s promoting upcoming events.

All of this costs money!

While we in America are all familiar with the brand ambassadors behind spirits and beer, in India, a “crowd puller” or “brand ambassador” is a regular patron who is usually at his favorite nightclub every night and promotes his favorite club during the day while socializing with school buddies, by word-ofmouth or texting. He spends a lot of time on social media and probably has over a thousand followers.

A brand ambassador’s only goal is to get people into their favorite club by posting special events or nightly specials via social media and encouraging them to “meet me at the club!”

Brand ambassadors have to be over 21, usually in college, and have to be well-connected on social media 30

Bar Business Magazine January 2016

with a formidable following. Sometimes the brand ambassador is allowed to give his followers a discount at the door, or maybe the first drink free.

There are endless possibilities for creating this concept in America as modern extension of the antiquated club promoter of our past. Set up some form of accounting for each brand ambassador’s guest who comes to the club and identifies himself/herself with a brand ambassador’s code or password. This gives the credit for the customer’s visit to the brand ambassador that was responsible for them being there.

While similar in concept to a club promoter, the Indian reliance on social media and exclusive dedication to one venue are upgrades.

But remember: brand ambassadors are NOT employees. They do not go on the payroll. Yes, you should have a weekly meeting with your brand ambassadors to compare notes, to share ideas, to help each other, but attendance should not be mandatory.

Yes, I can gripe about the present, but I know there are ways to make the future of our business better.

Bob Johnson, Bar Management expert, is a multi-unit beverage director who specializes in inventory control, bar management and bartending. His latest book release, “Manage Your Bar My Way!” is a compilation of 50 years of making mistakes and finally getting it right. It’s a “one of a kind” publication that every owner/manager should have. Contact Bob at 800-447-4384 or check out his website at BobTheBarGuy.com. www.barbizmag.com

Shutterstock / Dmitry Kalinovsky

People are constantly allowing their concentration to be diffused in too many directions at once, known as multi-tasking. Effective multi-tasking is a myth.

2016 and a New Regime

By Kevin Tam

D

ecember being the last month of the year conjures up a plethora of emotions. The natural seasonality plays a big role. The bar business usually sees a large influx of corporate business from company parties, bar operators get slammed with incoming, work hours increase. Stress, responsibilities, and managing multiple tasks become part of the day-to-day grind.

I always tend to use this time to look back at the past year and see how well I did in pursuing my goals.

I can say with confidence that achieving goals is more about the effective management of time than any one magic bullet.

After becoming good friends with many successful people who own bars and nightclubs of all shapes and sizes, I can assure you, those at the top are not that “different,” per say, than anyone else in terms of ability. The biggest bar owner I know is a terrible bartender, and has very little “nightlife charisma.”

He spends most of his time doing big-picture work like raising capital, scouting new locations, creating new concepts and marketing the hell out of his venues. He is not an expert (nor an ultracrepidarian) on any of this stuff; he just keeps these tasks as the focus for most of his workday. For day–to-day operations, he hires managers who have the charisma and knowledge to attract the public and run the business.

We all only have a limited supply of time to work with each day. How you use your time and what you spend that time on is vital to success. Many aspiring bar operators are woefully unproductive, completely reactive, have too much free time, move very slowly, and have poor work habits. If you’re looking back at the past year and you’re not happy with the progress you made towards achieving the goals you set at New Years Eve last year, here are four tips to help you manage your time better this time around:

1. Set uninterruptable appointments with yourself.

Everyone has plans, schemes, ideas and things they’ve always wanted to do, but never got around to doing.

Most of these thoughts never become materialized in the real world due to a lack of actionable progress. This is avoided by setting appointments to work on these ideas with the same seriousness you would take as an appointment you set with a doctor or lawyer. This is an appointment you cannot miss.

2. Know what you’re going to do before you do it.

Too many operators are unproductive because they do not have their workday written down and scripted.

There are specific steps to everyone’s routine that most people just follow in their head. However, when a www.barbizmag.com

business grows and the responsibilities grow with it, your memory cannot be relied upon to store all the information you need. People that forget things consistently add more tasks to their day that prevent them from working on their plans for growth. Have your workday and important details in a central location, like the calendar in your phone, so you know exactly what you have to do and when you have to finish it by. Knowing this information allows you to move seamlessly from one task to the next, and complete more work in less time. When you spend less time thinking about what you have to do, you spend more time getting ahead.

3. Put a price on your concentration.

Concentration is the state-of-mind you reach when you are at your creative apex. You are coming up with your best ideas in this state. If you want to think at your best, be at your best, and do the best work you’ve ever done, you cannot allow yourself to be interrupted frequently by inquiries that are not worth your time. These disruptions come in many forms, from incompetent staff, the cell phone, and the Internet.

If you want to enter your genius state more often, you must put a high value on being unreachable for some time each day, so you can work on your efforts to grow your business. Too many people are constantly allowing their concentration to be diffused in too many directions at once — otherwise known as multitasking. Effective multi-tasking is a myth. The best work we produce is when we fully focus on one task for a set period of time.

4. Set daily task deadlines and try to beat them.

Deadlines are the difference between things actually getting done and just being talked about. One of the biggest things I took away from going to University was not necessarily the body of knowledge I studied (I was a Finance major), it was getting into the habit of completing work by a deadline. Everyone who has gone to post secondary school knows what it is like to cram for the exam and still get through it. Deadlines sometimes make you do superhuman amounts of work, which despite any amount of struggle you go through, is delivered on time. Completing the work you commit to on time is the key to getting ahead. If you know when you need to have things due, you step up your game and stay on schedule. People who set goals without tasks and deadlines usually only watch as time goes by without any progress.

Kevin Tam is a bar and nightclub consultant with over a decade of experience. He can be reached directly at kevintam@bevintel.com.

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Big

6

CHICAGO Boston

Las Vegas Los Angeles MIami NEW YORK

Going Nutz in The Windy City

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Bar Business Magazine January 2016

By Chris Ytuarte

www.barbizmag.com

This time of the year in Chicago can make people a little nuts as the winter weather kicks in, but a new Caribbean bar off the city’s Gold Coast called Coconutz will warm you up this season.

C

hicago can be a cold, harsh place to live. Fortunately, a new tropical island has formed off the Gold Coast at 13 West Division Street. So this winter, Windy City residents can set sail toward the warm Caribbean ambiance of Coconutz Chicago, where island-inspired fare will transport patrons to a fun and relaxed paradise setting.

As a less expensive alternative to escaping sub-zero temperatures in Chicago by booking a flight to the Bahamas, locals this season can instead venture into Coconutz, a new “island oasis cocktail and wine bar” featuring sharable small plates, and plenty of Caribbean casualness that opened in December in the city’s Division Street Entertainment District. At Coconutz, they say, every day is a vacation day.

“We wanted to build a place that would make customers forget about what was going on outside weather-wise and would transport them, in a way, to where we all really want to be when the temperature is freezing in Chicago... to a warm and tropical place,” explains Coconutz Chicago General Manager Josh King. “Indoors albeit, but warm, relaxing and tropical nonetheless.”

“We designed the venue to cater to the three types of places that you usually find at an island resort in the Caribbean and US Virgin Islands: the casual bar, the comfortable restaurant, and the island-themed lounge,” says King. “So when you enter Coconutz, you can walk your way through each of the above rooms and find which one suits you best that night.”

Venture further into Coconutz to discover the “Bamboo Bar” and enjoy island infusions and exotic sangrias on tap, while bartenders open and fill coconuts with a signature house punch. Or take a seat in the “Luau Lounge” where

All Photos: Eliaz Rodriguez

This area specifically was in need of a higher quality concept. Not just quality cocktails but a specialized wine list and elevated dining as well.

The tropical oasis feel inside Coconutz begins immediately with sand-inspired floors leading through the front door. Patrons can grab a drink at the main bar or have a bite at the counter-style seating and bask in the warmth of a captivating electric fireplace recessed in a sprawling amber mirror. Follow the beach path and have dinner and drinks in the “Mainland,” where a cream-colored, leather bench and booth adorn one wall and large tables with leather chairs line the other. With a stunning, eightfoot electric fireplace and atmospheric cloud lighting, the mood is set for a cozy, tropical dining experience. www.barbizmag.com

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CHICAGO Boston

Las Vegas Los Angeles MIami NEW YORK

Coconutz offers small plate “Cabana Bites.”

We hope to thrive more than others by providing a warm, island feel to help escape from the harsh Chicago winter outside. cabana couches and LED tables rest underneath the glow of a warming third fireplace and a mesmerizing ocean wave wall. Prefer more of a vacation-style party? Dance the night away as the DJ starts every Friday and Saturday at midnight and goes until close.

“Entertainment is a very important component and part of any great vacation,” King notes. “There is everything from underground reggae to 80s music. If it’s fun, we’ll play it. We will have live music, including late night DJs, reggae bands, and Spanish guitarists.”

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The cocktail program at Coconutz — hand crafted drinks with fresh ingredients — is a tropical collaboration of Caribbean classics, New World discoveries, house-made infusions, and exotic punches served in real Thai coconuts.

“The cocktails are island inspired,” says King. “The ‘Classics’ highlight original recipes dating back to the 20s, while the ‘New Discoveries’ section features all original cocktails created in-house using modern techniques.

The focus is freshness — everything from fresh squeezed orange and pineapple juices, house made grenadine and other syrups, to house made liqueurs like Falernum and Pimento Dram.”

The small plate “Cabana Bites,” meanwhile, are a celebration of island food cultures incorporating Caribbean, Asian, South American, and Puerto Rican influence. With offerings from the land and sea to snacks and sweets, the menu is perfect for unwinding after work, a date night, or for large group parties. The wine list is an exploration of flavors, taking one on a journey through the coastal regions of the Old World, highlighting delicious and unique varietals not www.barbizmag.com

often found on the beaten path. Specialty sangrias on tap and craft draft beer round out the new and improved Division Street experience, sure to attract food and beverage explorers alike.

“The food and drinks pair very well together and cross utilize many fruits, herbs and spices,” King points out.

“We also will be offering a special menu with featured wine pairings on certain evenings.”

While the tropical menus and atmosphere are on point, it’s the stellar team assembled that will make Coconutz a locals “staycation” and destination spot for everyone, King suggests. Executive Chef Sean Welker (Saigon Sisters, Belly Q, Farmhouse) has a love for cooking and comfort food that began as a child in his grandmother’s Southern kitchen. His creative inspiration comes from his passion for Asian and Caribbean flavors, having traveled extensively throughout Southeast Asia before settling in Chicago.

King himself, who is also the house Sommelier in addition to General Manager, has been in the service industry for over 15 years in Chicago (Sable Kitchen & Bar, The Purple Pig) as well as the Caribbean and U.S. Virgin Islands. Beverage Director and fellow Sommelier Brendan Smith (Francesca’s Forno, The Purple Pig, Spiaggia) and Head Bartender Benjamin Kaplan (Chicago Distilling Company, Chop Shop, The Harding Tavern) complete the accomplished Coconutz team.

With a stellar team assembled, design ideas implemented, and operational aspects such as food and beverage and entertainment running smoothly, the only thing left to tackle for the Coconutz crew is attracting patrons, something that can often be a challenge during the harsh winters of Chicago. When it’s -15 degrees outside, staying home with a bottle of wine and some order-in food starts to sound quite appealing. But King is confident that the Caribbean scene at Coconutz will be a great antidote to those winter-time doldrums in Chicago.

“Who doesn’t want to feel like they’re on vacation?” asks King. “We also felt this area specifically was in need of a higher quality concept. Not just quality cocktails but a specialized wine list and elevated dining, as well. Our target demographic is the 30s and 40s crowd who appreciate fine wine, spirits and food without sacrificing a fun and relaxing environment. However, we really have something for everyone, depending on the time of night you come in. Of course there will be some flux in the colder months, but we hope to thrive more than others by providing a warm, island feel to help escape from the harsh winter outside. We have three fireplaces lining the walls and frozen drinks are poured year round and we provide a serious food, wine and cocktail program fit for Chicago, all in a laid back atmosphere where you can just relax and enjoy — the best of both worlds.” www.barbizmag.com

As Coconutz Chicago swings into full operation this winter, King and his team aim to bring something special to this area of the city, and perhaps, someday, to others.

“We want to help usher in the next generation of Division Street, where the product and service is exceptional, and as always, it’s still a place to have fun,” says King. “And in less than a week of being open, we have already been approached by two groups inquiring about expanding the concept to neighboring cold-weathered states, as well as one warmweather international destination.”

For now, though, Coconutz is a Chicago bar, and while Caribbean fare often features goat on the menu (a traditional staple of many tropical islands), it’s worth noting that Coconutz does not. Could that absence be a nod to local baseball fans who have witnessed a long-running World Series title draught at Wrigley Field boosted by the legend of a certain cursed goat that was banned from the ballpark many decades ago?

“We might be tropical themed, but we’re Chicago through and through,” says King. “Go Cubs!”

Cocktails at Coconutz Chicago are “island inspired.”

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Inventory Stern Pinball Debuts Spider-Man Edition Stern Pinball, Inc., the world's oldest and largest producer of arcade-quality pinball machines, announced today the release of its Spider-Man Vault Edition pinball machine. Inspired by the Marvel Universe Comic series, Spider-Man Vault Edition is an update of the pinball classic. The game features all-new art, animation and sound packages based on the legendary Ultimate Spider-Man comic series. Spider-Man Vault Edition features: The same amazing gameplay of the original, with an all new look and feel; All new art package, including: cabinet, backglass, decals, and playfield plastics are designed based on images from the actual Marvel Ultimate Spider-Man comics library; All new custommolded toys specifically designed and decorated to capture the Ultimate Spider-Man art style (Doc Ock, Sandman, Venom and Green Goblin); All new animation and dot matrix video art designed around the Ultimate Spider-Man comic art; All new custom speech and sound effects for all characters. Visit www.sternpinball.com.

Alaskan Brewing’s Newest Rotating Seasonal Named after a radical skiing and snowboarding maneuver, Alaskan Brewing Company’s newest Spring Seasonal Release, Hop Turn IPA offers a change in direction from the recent trends in West Coast IPAs. Meant as an alternative to the hop bitterness wars that have defined much of the current development in IPAs, Hop Turn seeks a more delicate taste experience influenced by legendary old-world beers. Each spring and fall, Alaskan Brewing introduces an exciting new beer style to the lineup for a limited run, which allows brewers to showcase their creativity and experimentation. That European influence also comes through in the beer’s name, derived from a skiing technique first developed in the Alps in the 1970s by adventuring skiers who negotiated chutes that could be well over 60 degrees in steepness for runs of 4,000 feet. Today that same move is used by skiers and snowboarders in Alaska’s biggest mountain ranges. Hop Turn IPA will be available through spring in all 17 states where Alaskan Brewing distributes. For more information, check out Alaskan Brewing’s website at www.alaskanbeer.com.

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The Return of Anchor Winter Wheat™ Anchor Brewing Company announces the return of Anchor Winter Wheat™, a classic winter warmer brewed with malted barley and five varieties of wheat. Anchor has been making wheat beers since the summer of 1984. In the winter of 2014, Anchor introduced their first dark wheat beer with the debut of Anchor Winter Wheat (7% ABV). For the second year, Anchor Winter Wheat joins Anchor Christmas Ale as a beloved and highly anticipated winter seasonal offering. In 1848, California farmers forsook their amber grain for golden fortune.

By 1878, California wheat was back big-time, winning gold at the Paris International Exposition.

There was even a wheat beer brewery in North Beach, one mile from Anchor’s first home. Anchor Winter Wheat is made with a unique blend of 2-row pale barley malt, Belgian roasted wheat malt, German pale spring wheat malt, “Midnight” and hard red wheat malts from the Midwest, and soft red winter wheat from a local family farm. The result is a smooth, complex, dark brew with a creamy head. See what’s brewing at www.anchorbrewing.com.

Best Damn Root Beer Backs It Up Last month saw the official launch of the Best Damn Brewing Co., a brand platform with a simple mission: to bring you the Best Damn thing you’ve had all day. On shelves now, Best Damn Root Beer is the brand’s first mission released nationally and the first hard root beer produced by Anheuser-Busch. It’s a full-flavored, wellbalanced take on a favorite classic taste, aged on real vanilla beans during the brewing process. Best Damn Brewing Co. exists within the portfolio of Anheuser-Busch brands and leverages the talent of its brewmasters and its state-of-the-art brewing facilities across the U.S. to deliver great-tasting brews. To support the launch of Best Damn Root Beer, the brand plans to use some of Anheuser-Busch’s most iconic media assets, such as a 70-foot Jumbotron in Times Square, and tap into Anheuser-Busch’s extensive investment in sports properties, including over 80 professional team and stadium/venue partnerships. Best Damn Root Beer is available at bars, clubs and restaurants, as well as grocery and liquor stores across the U.S. in sixpacks of bottles, 16-oz. cans, and on draught. To learn more about Best Damn Brewing Co. and Best Damn Root Beer, fans are encouraged to visit bestdamn.com.

www.barbizmag.com

Introducing Santera™ Tequila; Drink Surreal This season, for the venturous drinker, we introduce to you: Santera™ Tequila. With offerings in Blanco, Reposado and Añejo imaginings, Santera invites tequila aficionados to experience an entirely new style of drink. Santera Tequila is distilled and bottled in Tequila, Jalisco, the heart of Mexico’s blue agave growing and tequila producing region. The creation of Santera Tequila begins with the perfectly matured blue weber agave.

The agave plant rises out of the red volcanic soil of the dormant Volcán de Tequila, in the northern highlands of Jalisco, holy ground to Jalisco’s tequileros. The 10,000-foot volcano last erupted 22,000 years ago, forming the only environment in the world for agave to grow in perfect harmony with the climate and create the lifeblood of Santera Tequila. Agave piñas (hearts) harvested for Santera are the product of sustainable farming practices resulting in lower yield and higher quality tequila. A slow roasting and extended fermentation of the piñas help to round out the flavors. For more info visit santeratequila.com.

Tequila Herradura Unveils New Limited-edition Maintaining its commitment to provide small-batch tequila experiences to discerning spirits drinkers who appreciate handharvested artisanal tequila, Tequila Herradura, crafted by the last true tequila-producing hacienda on the planet, announces the release of the fourth Colección de la Casa, Reserva 2015 – Directo de Alambique (Directo). The ultimate holiday gift for tequila aficionados, Directo is made from 100% blue agave, without barrel aging, to reflect a fresh tequila flavor. This smallbatch tequila is produced using only the finest blue agave plants, harvested at the peak of perfection. It is then fermented with natural yeast amid the warm breeze and citrus trees of Casa Herradura, a process entirely unique in the industry.

Finally, it is bottled direct from the still at 110 proof, preserving the fresh, youthful flavor of Herradura’s beautiful tequila, a taste unchanged since 1870. The result is a crystalclear tequila with robust notes of sweet agave, green pepper and citrus. www.herradura.com.

www.barbizmag.com

High West Shouts ‘Yippee Ki-Yay®’ Saddle up! High West Distillery, Utah’s first legal distillery since 1870, is celebrating Repeal Day with the limited release of its new whiskey, Yippee Ki-Yay®, on Dec. 5. High West’s blenders took to experimenting and one day, just for fun, they put the award-winning Double Rye into oak barrels originally used to age two different types of wine: Vermouth and Syrah. The mingled result is Yippee Ki-Yay, a delicious, all natural, nonetoo-sweet naturally flavored whiskey. Yippee Ki-Yay goes on sale as a very limited release of 3000 bottles starting Dec. 5, deliberately timed with High West’s annual celebration of Repeal Day and more importantly, Utah’s role as the critical 36th vote to repeal Prohibition. High West will be celebrating with Yippee Ki-Yay at both locations, Park City and Wanship. The Saloon in Park City will also be debuting the new winter menu with special Repeal Day cocktails and desserts. For more information about Yippee Ki-Ya, High West Distillery & Saloon, or High West’s new location at Blue Sky, visit highwest.com.

Committing Original Sin Original Sin Cider® celebrates its 20th Anniversary with the debut of its first canned release, Original Sin Extra Dry Cider.

Made in New York State, Original Sin Extra Dry Cider is produced exclusively with 100% freshly pressed New York apples. Hard apple ciders are in the midst of a renaissance and New York State is now a hotbed with dozens of cideries releasing exceptional new products. A standout addition to Original Sin's portfolio of traditional dry ciders, Original Sin Extra Dry Cider features the best locally sourced New York produce. Original Sin Extra Dry Cider is a complex and wellbalanced sessionable cider with 5.5% ABV. With its minimal residual sugar, Original Sin Extra Dry Cider appeals to seasoned cider aficionados seeking a drier pub-style alternative. An apple enthusiast in his own right, Gidon Coll (Founder of Original Sin) tested a wide range of New York apple varieties to develop a distinctive blend. Original Sin Extra Dry Cider includes Ida Red, MacIntosh, Jonagold, and several russeted apples. Original Sin Extra Dry Cider will be available as a 4-pack with 16oz cans in seven select states starting on January 10, 2016: Washington DC, Illinois, Pennsylvania, Ohio, Maryland, Florida, and North Carolina.

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Holiday Happenings

February 2016

2

Feb 1: Robinson Crusoe Day. In honor of Defoe’s ode to isolated island life, all rum drinks all night are on special.

Ol’ Robby sure could have used some.

Feb 2: World Play Your Ukulele Day. Invite your regulars to bring in their own ukuleles today for a jam session. Then let us know if anyone actually shows up.

We’re curious.

Feb 3: National Singing Day. Get that karaoke contest scheduled ASAP.

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18

22

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Feb 7: National Periodic Table Day. Have your bartenders keep a periodic table behind the bar today and challenge guests to name the element represented by specific symbols for a free drink. Unless you have a bar full of nerds (or scientists) you should be ok.

Feb 18: National Drink Wine Day. Encourage more bar sales of wine today by offering it in a familiar package — an aluminum can. We recommend stocking up on Alloy Wine Works Pinot Noir < https:// www.france44.com/ alloy-wine-works-canpinot-noir-2014>, which we have sampled and enjoyed.

Feb 22: Tex Avery Day. You owe your childhood to ol’ Tex, an American cartoonist responsible for creating Bugs Bunny, Daffy Duck, Porky Pig, and Chilly Willy, amongst others.

What have you accomplished? Honor this great man by showing some of his work on your TVs tonight. That’s all folks!

Feb 24: World Bartender Day. Celebrate this glorious holiday by giving your bartenders the night off. This may be a slow night.

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3

5 Feb 5: Weatherperson’s Day. Free drink to anyone who comes in tonight claiming to be a weather forecaster by profession. Then tell them that you predict things will dry up after that.

6 Feb. 6: Canadian Maple Syrup Day. The easiest way to honor this holiday is to serve up some cocktail specials featuring Crown Royal Maple Finished, a Canadian whisky blended with maple syrup from the Great White North — you hozers.

27 Feb 27: Anosomia Awareness Day. Anosomia is the clinical inability to perceive odor, which makes for the ideal bar employee. But tonight, help fight this affliction by giving a free drink to anyone who tells you that your bar stinks.

“Congratulations, you don’t have anosomia.

Drink up.”

www.barbizmag.com

Feb. 1: Joao Virissimo/shutterstock.com, Feb. 2: Ann Haritonenko/shutterstock.com, Feb. 3: YanLev/shutterstock.com, Feb. 5: UMB-O/shutterstock.com, Feb. 7: isak55/shutterstock.com, Feb. 22: Neftali/shutterstock.com, Feb. 24: Olena Yakobchuk/shutterstock.com, Feb. 27: Olena Zaskochenko/shutterstock.com

1

Index of Advertisers Company

web site address

page #

Barzz.net

www.Barzz.net

3

HarborTouch CA

www.iHarbortouch.com

C2

Innova Products US LLC

www.StrahlBeverageware.com

20

Night Club & Bar

www.NCBshow.com

9

Plug in & Pour

www.PlugInAndPour.com

C3

Touchtunes

www.TouchTunes.com

5

World Tavern Entertainment

www.WorldTavern.com

23

Inventory Companies

Alaskan Brewing Co.

www.AlaskanBeer.com

Anchor Brewing

www.AnchorBrewing.com

Best Damn Root Beer

www.BestDamn.com

High West Distillery

www.HighWest.com

Original Sin Cider

www.OrigSin.com

Santera Tequila

www.SanteraTequila.com

Stern Pinball

www.SternPinball.com

Tequila Herradura

www.Herradura.com

To advertise in Bar Business Magazine contact Art Sutley Phone: 212-620-7247 Email: asutley@sbpub.com

www.barbizmag.com

January 2016 Bar Business Magazine

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Owning Up

Parking Pitfalls for Bar Tenants

By Jeff Grandfield and Dale Willerton - The Lease Coach

Don’t take parking for granted. Depending on the time of day you visit a property, there may or may not be sufficient parking. The location of the parking and whether the parking stalls are designated are all part of the negotiating process. For many tenants, parking is often free for customers.

But for some, there may be hourly rates for customers and monthly parking charges for staff vehicles can range from $85.00/month to several hundred dollars per month. Even if you’re prepared to pay for parking, don’t assume that it will be available. When The Lease Coach negotiates on parking, there are three considerations: the number of parking stalls; the location of the stalls and the rental rate, if any.

Bar tenants should also pay attention to parking rights. Landlords typically address parking rights in one of two ways. Their lease agreement either totally ignores parking altogether or lays out a very detailed parking plan and list of regulations. Parking rights are too important to leave to chance; parking can make, or break, your business if your customers are deterred by a lack of convenient or cost-effective parking.

One of the first things we look at when visiting a prospective site for our tenant clients is the customer parking. Most properties offer what is called rush parking mean first come, first serve. If you are a first-time tenant or opening a business in a successful property or densely populated area, realize that insufficient parking can cost a tenant tens of thousands of dollars in lost revenue each year.

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Bar Business Magazine January 2016

You and your staff need a place to park when you come to work. A larger, more global problem occurs when staff park in the prime customer stalls.

Determine whether the landlord has a designated area for staff to park and whether there’s a parking policy that the property manager polices or regulates. Smart landlords require tenants and staff to provide their license plate numbers to the property manager for this exact purpose.

It’s nice to pull into the same parking spot each day or have the spaces right in front of your business designated for your customers. Of course, people abuse these designated stalls and the landlord doesn’t want to be the one responsible for policing the tenant’s parking. Nonetheless, you don’t want to skim over this opportunity and find out that the neighboring tenants have parking rights and designated stalls but you don’t.

We’ve seen landlords convert free parking to paid parking lots. We have also seen landlords give away or designate parking stalls right in front of one business to another tenant, especially if that’s what it takes to sign up the other tenant on lease deal. Furthermore, we’ve also witnessed landlords using parking as an incentive to attract new tenants and unfairly divvying up the parking lot to suit their own needs. Negotiate early for plenty of parking and get the agreement in writing to avoid confusion down the road!

Dale Willerton and Jeff Grandfield — The Lease Coach — are Commercial Lease Consultants who work exclusively for tenants. Dale and Jeff are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question?

Need help with your new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or visit www.TheLeaseCoach.com. www.barbizmag.com

Shutterstock / Ulrich Mueller

As we explain in our new book, Negotiating Commercial Leases & Renewals For Dummies, parking is often a contentious issue for bar tenants.

You will want sufficient space for you, your staff and your customers to leave vehicles while they are inside your place of business.

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