Florida Restaurant & Lodging Magazine Oct/Nov 2012 by John Baker

O F F I C I A L P U B L I C AT I O N O F T H E F LO R I DA R E S TA U R A N T & LO D G I N G A S S O C I AT I O N

FEEDING THE FIRE Firehouse Subs Co-Founder Robin Sorensen Named to FRLA Hall of Fame

WWW.RESTAURANTANDLODGING.COM

THE NOVEMBER 2010 ELECTIONS What the Outcome Means to Florida’s Hospitality Industry

Firehouse Subs Robin Sorensen

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FO OD FOR T HOUGH T

What the Election Outcome Means To Florida Hospitality

lection night results proved successful for the Republican Party. Republicans emerged with a Governor and all 3 seats on the Florida Cabinet, which include the Attorney General, the Chief Financial Officer and the Commissioner of Agriculture and Consumer Services. Election night also witnessed gatherings throughout the state of hopeful candidates. Richard and I were in Miami, along with U.S. Senator Elect Marco Rubio, Congressman Elect David Rivera, and State Representative Elects Carlos Lopez-Cantera, Erik Fresen watching political history being made. In addition, former Governor Jeb Bush together with several GOP elite were in attendance to share in this history-making moment.

In the United State Senate... Former Speaker of the Florida House, Marco Rubio, the Republican nominee was elected to the U.S. Senate by a sizeable margin over Governor Charlie Crist, the Independent candidate and Congressman Kendrick Meek, the Democratic nominee.

In the United States House of Representatives... Republicans also unseated several members of the U.S. House of Representatives across the state. The Florida Congressional delegation now includes 19 Republicans and 6 Democrats. This is a dramatic change that will have both national and statewide implications. Scott’s message to the Republicans retained thousands of Floridians who a solid majority in both are hurting: “Don’t give up. the Florida Senate and the Better days are coming. House and even managed And I won’t rest until we are to pick up a few new seats previously held by the model for our nation in Democrats. As a result, job creation.” Republicans now have a veto proof majority in both the Florida Senate and House. The Florida Senate now consists of 28 Republicans and 12 Democrats. The Florida House now consists of 81 Republicans and 39 Democrats. Of the 6 constitutional amendments on Florida’s ballot, 3 received voter approval by the required 60 percent threshold. Approved by the voters, Amendment 2 provides a Homestead Ad Valorem Tax Credit for deployed military personnel, and Amendments 5 and 6 limit the majority party’s influence in the redistricting process. Redistricting takes place every 10 years to redraw legislative district lines.

Carol B. Dover

long hours that so many of you put in to help us turn Florida around. “The people of Florida have been through terrible economic times and a bruising political season. Through this campaign, I have talked to so many people who have lost their jobs, lost their homes, and just about lost all hope. “I have a message for the thousands of Floridians who are hurting: Don’t give up. I’m giving you my word. Better days are coming. And I won’t rest until we are the model for our nation in job creation.”

Republicans Gain Veto-proof Majority In Florida Legislature in the Florida House... Republicans have seized a veto-proof majority in the Florida Legislature as the GOP picked up both seats in the House and the Senate on Tuesday night. The result means a stronger and more conservative Legislature. The initial count appeared to be 81-39 in the Florida House as Republicans defeated five Democratic incumbents: Reps. Debbie Boyd, Janet Long, Keith Fitzgerald, Bill Heller and Adam Fetterman. “Tonight’s successes demonstrate the strength of our slate of Republican members and candidates and highlight the fact that Republican values of lower taxes, less spending and limited government continue to resonate with voters across the Sunshine State,” said incoming House Speaker Dean Cannon.

Rick Scott: “An Incredible Victory”

In the Florida Senate...

During his post-election press conference Governor Elect-Rick Scott said, “What an incredible victory! I am so grateful for the hard work and

Meanwhile, the Florida Senate will have a 28-12 GOP majority. Republicans took hold of the state Senate seat held by outgoing Sen. Dave

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F LO R I DA R ESTAU R A N T & LO D G I N G

contents OCTOBER/NOVEMBER 2010 • WWW.RESTAURANTANDLODGING.COM

3 What the Election Outcome Means For Florida Hospitality The Republican-led Legislature may now have enough the momentum it needed to tackle tough issues facing Florida in the upcoming 2011 Legislative Session.

15 So, What Is Lurking in Stadium Food? There isn’t enough money in the world to buy back a good reputation after it is tarnished by bad publicity due to a foodborne illness outbreak. But this is preventable. Learn how. By Cynthia Walker

17 Optimizing Your Distributor Relationship In today’s rapidly evolving foodservice world, operators can take comfort in knowing that the expert advice and counsel they need to improve their business is no further away than someone they already know — their foodservice distributor. By Kathy Perry

21 FRLA to Offer Online Marketing Courses You’ve heard the buzzwords: social media, SEO, SEM, locationbased services, SMS, reputation management, user-generated content. But what do these terms mean? And how can they be applied to successfully marketing your restaurant or accommodation? Soon, just logon to an FRLA webinar.

DEPARTMENTS 3 6 8 11 19 20 23 25 27 30 31

Food for Thought What the Election Outcome Means | Carol Dover Business Climate Restaurant Performance Index Reaches 3 Year High Hot Chefs Chef Craig Berkower, WDW Swan and Dolphin Hotel CEO Forecast Richard C. Kessler, The Kessler Collection FRLA Fishing 22 Boats Compete in 2010 Fishing Tournament Gulf Coast Recovery Songwriter’s Series Attracts Tourists to NW Florida Marketing Summit Yelp, Open Table Lead FRLA Fall Seminar Hot Havana Nights This Big Party was Hot, Hot, Hot! FRLA Golf Celebrating 10 Years of FLRA Celebrity Golf CPFM Exam Schedule Register at www.SafeStaff.org Wage Hour Update Fact Sheet for FLSA Employees Who Receive Tips Cover photo courtesy Daryl Bunn Studios, Jacksonville, FL • www.DarylBunnStudios.com

Zero to 600 (exhibitors) in three days flat. Get your ďŹ rst look at the next big thing. For your FREE ticket to the largest foodservice equipment and supplies show of 2011, stop by booth #1467 at the Florida Restaurant & Lodging Show.

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BUS I N E S S C L I M AT E

Restaurant Performance Index – October 2010

CHAIRMAN

Keith Overton

TradeWinds Island Resorts, St. Pete Beach CHAIRMAN-ELECT

Dave Reid Miller’s Ale House, Jupiter 2009-2010 SECRETARY-TREASURER

Bruce Craul Legendary Hospitality Inc., Destin

Andrew Reiss

Andrews 228 and Andrews Capital Grill & Bar, Tallahassee

Tony Gallo Midtown Catering, Palmetto

Restaurant Performance Index Reaches Three-year High

ueled by improving sales and traffic levels in October, the National Restaurant Association’s Restaurant Performance Index (RPI) rose to its highest level in more than three years. “October’s RPI gain was driven by continued improvements in the same-store sales and customer traffic indicators,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Most notably, a majority of restaurant operators reported higher same-store sales in October, the first such occurrence since August 2007.” The RPI stood at 100.7 in October, up 0.4 percent from September and strongest level since September 2007. In addition, the RPI stood above 100 for the second consecutive month, which signifies expansion in the index of key industry indicators. The RPI is a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry. “In addition to improving current situation indicators, restaurant operators are increasingly optimistic about sales growth in the coming months, and also reported a positive outlook for staffing levels for the first time in six months,” Riehle added. The RPI consists of two components, the 6

O CTO B ER / N OV EM B ER 2010

Jim McManemon, Jr. Ritz-Carlton, Sarasota

IMMEDIATE PAST CHAIRMAN

Andy Haas

Smokey Bones Bar & Fire Grill, Orlando PRESIDENT/CEO

Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor, and capital expenditures), and the Expectations Index, which measures restaurant operators’ sixmonth outlook in the four indicators. The Current Situation Index stood at 100.0 in October – up 0.6 percent from September and its second consecutive solid gain. In addition, the Current Situation Index reached the 100 level for the first time since August 2007. Fifty-one percent of restaurant operators reported a same-store sales gain between October 2009 and October 2010, up from 44 percent of operators in September and the first time since August 2007 that a majority of operators reported higher same-store sales. In addition, 44 percent of restaurant operators reported an increase in customer traffic between October 2009 and October 2010, up from 38 percent the previous month. The Expectations Index stood at 101.4 in October – up 0.3 percent from September and its strongest level in six months. The full report is available online and more detailed data and analysis can be found on Restaurant TrendMapper. Watch a video of Hudson Riehle provide an industry update, including the October RPI and an outlook for the holiday season.

Carol B. Dover, FMP EDITOR

Camron Becker EMAIL: CBECKER@FRLA.ORG

M AG A ZINE

PUBLICATION MANAGER

John M. Baker

john@restaurantandlodging.com ADVERTISING

Leslie L. Baker 850-545-5023 • leslie@restaurantandlodging.com

Lynne Edwards 850-251-7477 • lynne@restaurantandlodging.com PUBLISHED BY

Destination Commuications, Inc. 1334 TIMBERLANE RD., TALLAHASSEE, FL 32312 Phone: 850-545-1362 • Fax: 850-907-8245 Florida Restaurant & Lodging magazine is the official publication of the Florida Restaurant & Lodging Association, Inc. (FRLA). FRLA reserves the right to accept, modify, or reject any and all content submitted for publication, whether paid or otherwise, solely at its discretion. Unless otherwise expressly indicated, FRLA does not endorse or warrant any products or services contained herein. In addition, unless otherwise expressly noted, the opinions expressed herein are those of the authors and not necessarily those of FRLA, its directors, officers, members, or staff. Content submissions may be made to the Publisher’s Office by regular mail or by e-mail. Please note that submitted materials will not be returned. FRLA Headquarters 230 S. Adams St. Tallahassee, FL 32301 850/224-2250 Fax: 850/224-9213

Publisher’s Address 1334 Timberlane Rd. Tallahassee, FL 32312 850/545-1362 Fax: 850/907-8245

Ad Rates and Submission Guidelines at www.RestaurantAndLodging.com Florida Restaurant & Lodging magazine (USPS 002-629; ISSN 104403640) is published bi-monthly. FRLA Members receive this publication as part of their membership dues. Non-members receive it as a marketing and promotion effort to inform the Florida foodservice and lodging industry of efforts made on its behalf by FRLA. Printing and mailing services: Boyd Brothers Printing, Inc., Panama City, FL. Address changes be sent F LO R I DAmay R ESTAU R Ato: N TFRLA, & LOPO D GBox I N G 1779, A S SOTallahassee, CI AT I O N FL 32302 or via email to susana@frla.org. Subscription address changes (digital or US Mail, can be made at www.RestaurantAndLodging.com, AUGUST/SEPTEMBER 2010 and click the Manage Subscription tab.

Booth 1731

Chef Craig Berkower

he Walt Disney World Swan and Dolphin Hotel has named Craig Berkower chef of Garden Grove restaurant. Berkower will lead his

team in serving a variety of casual fare at the restaurant offering Disney character dining experiences. In addition, he will be responsible for the 24-hour in-room dining offerings available at the Swan. Prior to joining the culinary team at the Walt Disney World Swan and Dolphin Hotel, Berkower was executive sous chef at the Westin Diplomat Resort & Spa in Hollywood, Fla. where he shared responsibility for overseeing the culinary operation of eight outlets. Berkower has 30 years of professional cooking experience spending time at noted restaurants such as Chef Allenâ&#x20AC;&#x2122;s in Aventura Fla., Strings in Denver, Colo. and Flagstaff House in Boulder, Colo. He describes his style as combining regional American, Latin American, Caribbean, Asian, and Indian flavors with a classical French technique. The Walt Disney World Swan and Dolphin Hotel is a nationally respected and recognized leader in the convention resort arena. Ideally located in the heart of Walt Disney World Resort, the resort offers 2,265 guest rooms and over 329,000 square feet of meeting space.

HotChef? Are You Considered Among O CTO B ER / N OV EM B ER 2010 Floridaâ&#x20AC;&#x2122;s Hottest Chefs?

Do you know a chef in your area who is creating a buzz with innovative cuisine, exceptional presentation or fresh new ideas? FRLA wants to tell the state about them in a bi-monthly feature in FR&L Magazine. Submit your favorite chef du jour to cbecker@frla.org. Please include a brief explanation of why your submission should be considered one of the hottest chefs in Florida. toRinclude F LO R IBe DA sure R ESTAU A N T & LOrestaurant D G I N G A S SOand CI AT I O N contact information. Selected submissions will be featured in FR&L magazine as Chefs That Sizzle!

NEXT ISSUE Sorensen, Bos, Reid To be Honored at Winter Board Gala

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On January 19, 2011, the Florida Restaurant & Lodging Association will honor Robin Sorenson, Co-Founder of Firehouse Subs (featured on this issue’s cover) with the Restaurateur Hall of Fame Award. Also being honored are Peter Bos, Founder of Legendary, Inc., as Hotelier Hall of Fame award recipient, and American Express, Supplier of the Year. The gala evening features a ceremony inducting our 2011 officers and installing Dave Reid, Executive Vice President of Operations for Miller’s Ale House Restaurants, as 2011 Chairman of the Board. This evening includes an elegant blacktie dinner and live entertainment celebrate the achievements of these leaders in Florida hospitality.

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Firehouse Subs Robin Sorensen

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12/10/10 11:29:27 AM

In our next issue, find out how Sorensen – and the Firehouse Subs Public Safety Foundation – used these pickle buckets to help raise $2.2 million to purchase life saving equipment for police and fire departments. Full articles on incoming FRLA Chairman and Hall of Fame winners will also be included in next issue. For advertising information to show your support of these leaders, contact Leslie Baker, 850-545-5023 or email leslie@restaurantandlodging.com.

F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

F L OR I DA R E S TAU R A N T & L OD GI NG A S SO C I AT ION

forecast Richard C. Kessler The Kessler Collection

Richard C. Kessler is a visionary, entrepreneur, astute businessman and philanthropist. During his 37 years in the field of hotel development and operations including nine as President and Chairman of Days Inn of America and 23 as President and CEO of The Kessler Enterprise, Inc., Kessler has become a nationally recognized industry leader. Having served seven years on the Industry Advisory Council of the American Hotel and Motel Association, he has helped to develop outstanding hospitality practices nationwide. His hotel company today is known as The Kessler Collection, a portfolio of ten boutique three, four and five star quality properties located in Florida, Georgia, Colorado and New Mexico.

What changes has your business made as a result of the downturn in the economy? We started to see price sensitivity and a decrease in occupancy about half way through 2008, which continued into 2009 and the first few months of 2010. The hospitality and restaurant industry experienced a high degree of volatility in 2009 and 2010 unlike any time in my 40 years in the business. This created challenges in revenue generation, expense control and flow-through of profitability throughout the industry. Operationally, we had to eliminate positions and keep tight controls on our expenses. It was, at times, extremely unpleasant. However the upside of a downturn is that it forces you to look at processes and efficiencies that are critical but that may otherwise be less of a focus in a strong economy. Many of our cuts and tough decisions were seamless to our guests and were ultimately improvements in how we operate. There were other changes in the corporate and field structure. The first was a consolidation of our sales efforts from the property level to clusters of centrally located sales professionals. This enabled those sales managers to more easily cross sell our properties. This resulted in reduced overhead costs and increased sales volumes. Secondly, we centralized our Information Technology support. This increased efficiency and communication resulting in reduced overhead and a higher quality of service to the properties. The third and most drastic change was to affiliate with a hospitality franchise program. Each of our independent boutique hotels was the leader in their respected competitive sets, yet as owners and operators we were not satisfied with our results. We determined that we needed more horsepower to extend our margins against our competitors Continued on Page 12

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F LO R I DA R ESTAU R A N T & LO D G I N G

C E O FOR E C A S T

What issue would you most like to see positively addressed by Florida’s legislature?

We must continue to promote Florida as a meetings destination and support lodging and tourism as a vital component to Florida’s economy and employment base. and deliver improved financial results to our own bottom line. We elected to franchise with Marriott’s newest concept: Autograph Collection. Bill Marriott and I announced the inclusion of seven of The Kessler Collection hotels into the Autograph Collection in January 2010. We completed the conversion of these seven properties in April. The Autograph Collection enables The Kessler Collection properties to maintain their independent personality and to broaden our appeal and exposure. We are pleased with the results to date.

What is the single greatest factor in the success of your business? Historically, there has been no greatest single factor in the success of our business, rather it is a combination of factors such as our attention to detail in both product and service quality, and integration of design, art and music in all that we do to create a unique guest experience, The focus on the experience has allowed us to differentiate ourselves and we believe has resulted in higher room rates and occupancy as well as higher ancillary revenues versus others in our comp set.

Positive trends are evident in the lodging industry and there will be gradual positive movement for the balance of 2010 and into 2011 and 2012. The connection between the lodging segment of the tourism industry as a generator of the tax base to construct facilities such as the recently completed Amway Events Center and planned Dr. Phillips Center for the Performing Arts in Orlando has never been more evident. The impact of these types of facilities on the hotels and restaurants provide a stimulus for the local economies through destination tourism and enhances the lives of the residents and future generations of Floridians. The importance of the corporate group and convention business and its associated food, beverage and catering business to Florida has never been more prominent than in the last two years. We must continue to promote Florida as a meetings destination and support lodging and tourism as a vital component to Florida’s economy and employment base. The Kessler Collection prides itself on delivering a hospitality product in each community in which we are located that the local residents and lodging guests embrace, utilize and promote. We strive to be the social center in a community that provides exceptional service, quality and a culture that guests and local residents enjoy. To create exuberant guests by offering inspiring places with spontaneous service has been a successful formula that we will continue to employ into 2011 and beyond.

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O CTO B ER / N OV EM B ER 2010

F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

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F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N ��

FO OD S A F E T Y

Certified Food Manager Requirements

Sports Venues

So, What Is Lurking In That Stadium Food?

By CYNTHIA WALKER, M.S., R.S., C.I.T.O.

ood service managers have a tough job – so don’t let them tell you otherwise. They are expected to be the place where the buck stops (and I don’t mean literally), the rubber meets road and any other cliché for responsibility you can imagine. Truth be told, managers can make or break a business in more ways than one. Every good decision made by the manager on hiring or firing, purchasing or conserving, record keeping or public relations can be undermined in a moment with one bad decision on food safety. There isn’t enough money in the world to buy back a good reputation after it is tarnished by bad publicity due to a foodborne illness outbreak. From that moment on, every time another outbreak story hits the media, it will end with a summary of every recent related incident – rehashing every illness, symptom or complaint ad infinitum. This can crush the life out of any business. Recent national media outlets have screamed out headlines like “Scary Violations at Sports Stadiums” and “What’s Lurking in Your Stadium Food?” Vendors were accused of selling food that “might pose a serious risk for foodborne illness”. It is most important that consumers focus on inspection results, and business managers take steps to ensure safe operations. The good news is that even though foodborne illw w w.Res t au ra n t A nd Lodgi ng.co m

ness in the U.S. is a major cause of personal suffering, death and loss of income – it is preventable – with the right preparation and tools. You must arm your business with a trained and knowledgeable manager and a food safety management system that works. In a word, your business must achieve active managerial control (AMC). The first step in this process is to have at least one trained and certified Food Protection Manager (CFPM) responsible for all periods of operation that has passed a test from one of the three approved testing organizations. . Once hired, managers have a period of 30 days to pass the required test that verifies a manager has demonstrated knowledge of basic food protection practices. Every

employee designated as a manager – whether a salaried manager, hourly manager, or shift manager – must be a CFPM. Managers must renew their certification every five (5) years by passing the required test. At each regulatory inspection, the person in charge will be asked to provide a list of all employees designated as a manager and the certified manager will be asked to provide proof of certification. The certified manager(s) should monitor, correct and verify that your food safety system is working and have direct authority, control and/or supervision over employees who engage in the storage, preparation, display, or service of foods offered to the public. The best way such oversight can occur is if the manager is present when food service activities are occurring so that immediate corrective action is taken if proper procedures are not followed. The minimum code requirement is that a certified manager be present at all times when four or more employees are engaged in food activities – but need not be present at all times with fewer than four employees. (Volunteers working in food service establishments are considered employees of the establishment.) There must always be a designated person in charge – even if it’s not the certified manager. The certified manager’s knowledge, actions and expectations significantly impact the control of the Food and Drug FLL O R I D A R E S T A U R A N T & L O D G I N G

Administration’s (FDA) foodborne illness risk factors which include 1) unsafe holding temperatures (including hot and cold holding and cooling), 2) inadequate cooking, 3) contaminated equipment (including cross contamination and sanitization), 4) food from unsafe sources and 5) poor personal hygiene (including handwashing and cross contamination). The Journal of Environmental Health documented that “Inspections alone cannot guarantee prevention of foodborne outbreaks. Supervision and education of food service workers and consistent adherence by food service workers to good hygienic practices are critical and perhaps neglected elements in the control and prevention of foodborne disease. The responsibility of all persons involved in food preparation particularly food service managers, needs to be emphasized.” What a daunting task – certified managers are held responsible to inform all employees under their supervision and control who engage in the storage, preparation, or serving of food, to do so in accordance with acceptable sanitary practices as required in the applicable food safety regulations. Additionally, certified managers and designated persons in charge must monitor employee health and make decisions about whether it is safe to allow an ill employee to work (in a limited capacity) or send the employee home. Certified managers and persons in charge must also report certain employee illnesses to the Department of Health. Informational employee health signs are available on the division’s website at http://www.myfloridalicense.com/dbpr/hr/forms/sign_ and_charts.html. So, whether your business is upscale and five star or serving hot dogs and chili in a stadium or arena, the skill and knowledge of 16

O CTO B ER / N OV EM B ER 2010

your certified manager can tip the scales in favor of food safety. In review, • Every licensed food service establishment must have at least one certified food manager. • The certified food manager must be present at all time when four (4) or more employees are engaged in food activities. • The certified food manager need not be present at all times if fewer than four (4) employees are engaged in food activities. • The same certified food manager cannot be the designated certified manager for more than one food service establishment. • Each establishment must maintain a list of all certified food managers for that location. • Certified food managers have specific code required mandates to train their staff, monitor adherence to sanitary regulations and report employee illnesses to the health authority. • The certified food manager must be able to provide proof of certification when requested by the regulatory authority. • Food manager certification must be obtained within 30 days of employment and is good for three (3) years. Remember, it’s not the location of your food service establishment that matters; it is the knowledge, skill and oversight of the certified manager that can guide the behavior of your employees through active managerial control. Food safety doesn’t happen by accident – it’s the result of purposeful action, continuing training and innate dedication. So, let’s “play ball”. Visit www.safestaff.org or call FRLA for a CPFM Compliance Check at 866-372-7233. Cynthia Walker, M.S., R.S., C.I.T.O. os Training Coordinator, Division of Hotels and Restaurants, Florida Department of Business and Professional Regulation.

F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

BUSI N E S S SI DE

Optimizing Your Foodservice Distributor Relationship By KATHY PERRY

n today’s rapidly evolving foodservice world, operators can take comfort in knowing that the expert advice and counsel they need to improve their business is no further away than someone they already know — their foodservice distributor. The relationship between operators and distributors is the most important in the industry. Operators face increasing competition for consumer dollars. They must balance time spent deciding from whom to purchase goods and services against the other demands of running their business. Many operators try to handle this by price-shopping from a range of distributors, but there’s a better way. By working strategically with a single broadline distributor, operators can obtain the best prices and gain more time to devote to other issues. Distributors also face lots of competition for an operator’s business, so they’re

always looking for ways to differentiate themselves and stand out. By working more strategically with their clients, and by offering value-added and consultative services, they can increase their worth to operators and create a win-win for both the distributor and the operator. Operators should remember that there are hidden costs to buying strictly on a bid-basis from many different distributors. Switching strictly on price makes it hard for an operator to offer a consistent dining experience to the customer. And the time operators must spend on purchasing takes them away from other areas of their business. By creating a prime-distributor relationship with a single broadline distributor, an operator becomes more important to that distributor as the dollar value of their relationship grows. Distributors become more motivated to offer consultative services such as providing insights into present and future market conditions, as well as support on topics like controlling costs and staffing issues. The Benefits of Working Together Operators should consider placing a majority of their business (typically 80 percent) with a single broadline foodservice distributor as a prime-distributor relationship. Concentrating purchases in this way gives the distributor a greater incentive to offer value-added services such as helping an operator control costs, increase sales, manage staffing and be compliant with regulations. The benefits to operators and distributors are many: • Deliveries are minimized. • Online ordering and payment are consolidated, allowing both operators and distributors to operate more productively. • Operator time spent managing invoices, deliveries and accounts, as well as dealing with sales representatives from multiple companies, is greatly reduced.

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• There is improved access to information and resources. Distributor salespeople are highly trained foodservice professionals; they have broad knowledge of market conditions and more extensive resources than most independent operators. This means they can alert operators to emerging opportunities and warn of product shortages, price increases and other matters that will help with mid- to longrange planning. • There is greater access to additional resources. Good broadline distributors will understand that operators may have unique needs outside the scope of their core service and can target services to meet those needs. Once you’ve established a secure primedistributor relationship, don’t be shy about asking for help. The more you let your distributor help you with value-added services, the more you both can succeed. Get to Know Your Distributor Establishing a prime-distributor relationship means going beyond the sales representative who takes your order each week. Distributors have many resources dedicated to customer support, such as product specialists, in their organizations. Learn how these resources can help, and work with your sales representative to bring them into the relationship as needed. Don’t forget that your distributor’s core competency is food and that it has experts in each major food category to help you develop, manage and control your menu. A distributor also may be able to help you obtain the food items that make the best sense for your operation. The scale of this operator-distributor relationship always needs to be in balance. As you require more services to help grow your business — as you put more of your eggs into one basket — you need to align with a distributor that can help with strategy and tactical advice. Don’t forget F LO R I DA R ESTAU R A N T & LO D G I N G

that the relationship must work for the distributor, too. Maintaining a Successful Distributor Relationship Seek out distributors that share your vision. Look beyond price and seek out distributors whose values and standards are consistent with your own. Take stock of your distributors Consider what your distributor brings to the table. The best sales representatives will continually ask questions about your business. They should have resources — their own or access to external ones — to meet your needs. They know what fits your market. They also keep you informed about price changes and market conditions. They are dedicated to your success and always follow through.

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Get top value for your money Request regular business reviews that cover your needs, not just the needs of the distributor. Of course, you will discuss topics like cost, but make sure the distributor understands your needs and offers a plan to deliver the resources to achieve your mutual goals.

Be open Share your short- and long-term goals and concerns. Help your distributor understand your strategic plan. Treat your distributor like a valued team member Evaluate all costs to your distributor as you balance the scale between service and cost. Evaluate your number of deliveries, credit terms and the way you place your orders. Managing these in proportion to your request for additional services keeps the win-win relationship alive. Weigh price and value equally Price is important, but don’t switch to a new distributor just because of a lower up-front price quote. Anybody can take a shortterm loss to win new business. Remember, too, that no distributor has the “best” price on every line item. When evaluating price as part of the operator/distributor equation:

• Balance food cost against consistency. Buying on price alone means having to change product lines regularly to account for variations over time, which can alter the finished product and diminish customers’ dining experiences. • Seek out a distributor with the best overall pricing over a measurable period, typically a year. This allows you to account for variations such as market conditions, vendor rebates, forward buys and price jockeying. • Stick with the distributor that gives you the best mix of price, quality and service. It’s better to cultivate a long-term relationship with a distributor you can trust.

Make the best use of your distributor’s time A sales representative’s time is very limited. It’s to your advantage and theirs to use it wisely to free up time to consult about ways to improve your operation and cut the distributor’s costs of doing business with you. Consider: • Whether you really need a weekly visit for order-taking. • Ordering online so you can spend time with your sales representative discussing your business. • Having the check ready before your sales representative arrives. Or, better yet, pay online. Keep your relationship professional Don’t let tickets or other goodies offered by a sales rep sway your buying decisions. Who do you think pays for these perks?

F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

C E L E BR I T Y F I SH I NG TOU R N A M E N T Tournament Winners Biggest Fish 39.4 lbs King Mackerel caught by Austin Marler with Team SYSCO Ocoee. Prettiest Fish 1.9 lb Mingo (Vermillion Snapper) caught by Jason Decker with Team CTB Rewards. Ugliest Fish 22.5 lb Barracuda, Caught by Kenny Wesmore with Team SYSCO Ocoee. Most Unusual 16.8 lb Cobia caught by Rob Larkin with team FHM Insurance. Calcutta 1st place 39.4 lbs King Mackerel caught by Austin Marler with Team SYSCO Ocoee. 2nd place 30.8 lbs King Mackerel caught by T.C Hallford with Team SYSCO Ocoee. 3rd place 24.6 lbs King Mackerel caught by T.C Hallford with Team SYSCO Ocoee.

22 Boats, Celebrity Anglers Compete In 2010 Wild & Crazy Fishing Tournament The 2010 Wild & Crazy Fishing Tournament was a great success! The weather could not have been better as 22 boats took to the beautiful emerald green waters off Destinâ&#x20AC;&#x2122;s coast to vie for the biggest fish. Thank you to the team at the Emerald Grande and Harborwalk Marina and to our valued sponsors for another great year! Photos from the event can be viewed in the Photo Gallery on FRLA.org

T H A N K YOU

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SPONSOR S

F LO R I DA R ESTAU R A N T & LO D G I N G

GU L F C OA S T R E C OV E RY

FRLAâ&#x20AC;&#x2122;s Northwest Florida Songwriterâ&#x20AC;&#x2122;s Series November 19 and 20 in Destin and Miramar Beach, Florida. 13 songwriters from Nashville, south Georgia, Texas, California and Alabama as well as BMI executives joined FRLA for a great weekend along the coast. The purpose of the event was to attract tourists and others to the Beaches of Northwest Florida during the fall shoulder season. 20

O CTO B ER / N OV EM B ER 2010

F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

E DUC AT ION

FRLA Offers New Online Marketing Courses • Improve your knowledge of online marketing tools and options • Improve your ability to evaluate, select and manage online marketing partners • Improve the performance of your online marketing programs

ou’ve heard the buzzwords – social media, SEO, SEM, locationbased services, SMS, reputation management, user-generated content. But what do these terms mean? And how can they be applied to successfully marketing your restaurant or accommodation? FRLA is providing its members with the opportunity to expand their knowledge of online marketing tools, improve the performance of their online marketing efforts and evaluate, select and manage online marketing partners. Several online courses are being offered over the next four months: Search Engine Optimization and Content Marketing; Search Engine Marketing Concepts and Tactics; Social Media Marketing, User-Generated Content and Reputation Management; and Managing Revenue for Lodgers. Each course consists of three one-hour webinars. Attendees will have a choice for the third webinar based on their specific needs, depending on whether they handle these forms of online marketing in-house or need to find a qualified partner and whether they are a lodging or restaurant professional. Every webinar includes follow-up materials such as glossaries, best practices and how-to tips. Webinars are $75 each for FRLA members or $150 for a three-webinar course. FRLA members who complete an entire course will be recognized at a future FRLA event and will receive a certificate of course completion and free admission to a future marketing summit. Register online at www.frla.org/ social-media-webinar-series. w w w.Res t au ra n t A nd Lodgi ng.com

FRLA Webinar Series

COURSE SCHEDULE • Each course consists of 3 one-hour webinars • Attend a single webinar or a complete course • Visit www.FRLA.org for seminar dates

Presenters

Search Engine Optimization and Content Creation This course covers the fundamentals of search engine optimization in a straightforward and easily understandable way. Intended for restaurant and lodging owners, operators and marketing personnel. Search Engine Marketing Concepts and Tactics This course covers the fundamentals of search engine optimization in a straightforward and easily understandable way. Intended for restaurant and lodging owners, operators and marketing personnel. Introduction to Search Engine Marketing (Pay-Per-Click) This webinar covers the basic concepts and terminology of Search Engine Marketing including demonstrations of SEM in practice and explaining why SEM can be a powerful and cost-effective tool in your marketing toolbox. Advanced Search Engine Marketing The advanced webinar builds on the terminology and concepts presented in SEM1 to cover in-depth how to maximize the ROI for your SEM campaign. What kinds of ad creative to use, what offers work best, as well as how to measure and refine your SEM program. Tactical SEM This webinar uses three case studies to explore the dos and don’ts of Search Engine Marketing for restaurateurs and lodgers. Learn how you can maximize your return on investment from SEM and stop spending money on programs that don’t yield measurable results.

The FRLA Online Marketing Courses will be presented by C.A. Clark, Vice President, and Kimberly Palmer, Director of Online Marketing, for Miles360. A boutique online marketing firm for the hospitality industry, Miles360 is a division of Miles Media. We look forward to C.A. and Kim sharing their extensive experience working in online for travel and hospitality organizations. C.A. has been directly responsible for the strategy and architecture of VISITFLORIDA.com and dozens of other destination and hospitality websites over the past 10 years. If you have attended the recent FRLA Marketing Summits, you have seen C.A. present the “Futurecast” keynote on technology trends affecting the hospitality industry. Kim Palmer has worked in online marketing specifically for travel since 1995. Her experience has encompassed web analytics, search engine optimization, search engine marketing and online content marketing, from tactical planning to hands-on implementation.

Continued on Page 22 F LO R I DA R ESTAU R A N T & LO D G I N G

2011 Social Media

Marketing Summit

Webinar Series Continued on from Page 21

Social Media Marketing, User Generated Content and Reputation Management This course covers the broad spectrum of social media marketing opportunities available to restaurateurs and lodgers. The webinars in this course will expose you to websites and tools you can use to build and manage your social marketing as well as hands-on tactics for maximizing your benefit. Social Marketing Overview What exactly is “social marketing”, and how is it relevant to my business? Cut through the buzzwords and get an understanding of what “social marketing” means, why it’s an opportunity for your business and what sites and tools are available to you Marketing with Location-Based Services for Restaurants Targeted specifically to restaurant marketers, this course goes step-by-step through setting up profiles for your business with foursquare.com and shows you exactly how you can attract new customers and reward your most loyal customers. Also covers other locationbased services.

Thank You 2010 Sponsors

Virtual Concierge – Using SMS, Twitter and more On-property Targeted specifically for lodgers, this webinar covers the concepts and tactical concerns for properties using social messaging to communicate with guests while on-property. Instead of creating posters for your guests, talk to them directly with powerful social media tools. Webinar covers available technologies and companies as well as industry examples for leisure and group. Claim and Respond – Reputation Management Online Dive into an educational and tactical webinar showing why online reputation management is so important to restaurants and accommodations today. Learn where to go to claim and manage your listings as well as how to respond and manage bad reviews and customer complaints.

O CTO B ER / N OV EM B ER 2010

F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

M A R K E T I NG S U M M I T

Yelp, Open Table Lead FRLA’s Fall Marketing Seminar

Industry pros: Luther Lowe, Yelp; Robert Ramos, Open Table. (Above right) Marketing Summit panelists included: (back row) Jamie Miller, Carrabbas; Monique Yeager, Sonny’s Bar-B-Q; Dave Reid, Miller’s Ale House (front row) Lorrie Hero, Columbia Restaurant Group; Carlos Molinet, Hilton Ft. Lauderdale Marina; Tim Petrillo, The Restaurant People

New Receipt Requirement As of December 31, 2010, MasterCard requires your electronically printed payment card merchant receipts exclude the payment card expiration date. It is strongly recommended that your merchant receipts display only the last four digits of the payment card number. Both of these criteria are also mandated by the card brands for customer receipts. Are your receipts compliant? Review them today to determine if you need an upgrade. • If you process using point-of-sale (POS) software, contact your POS software vendor to schedule an upgrade. • If you process using a POS terminal, contact your processor to assist you in becoming compliant. For more information regarding receipt requirements and what they mean for your business, contact Heartland Payment Systems – FRLA’s exclusive endorsed providerfor card processing – at 866.941.1HPS (1477). w w w.Res t au ra n t A nd Lodgi ng.com

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These energy savings are no small potatoes FPL can help serve up signiﬁcant savings through our free Business Energy Evaluation. More than 129,000 businesses have participated in our program since its inception. An FPL energy expert will do a complete review of your energy usage and you’ll receive speciﬁc recommendations on how to control your energy costs. Then, you can put a healthy portion of the savings back where it matters most: in creating a great dining experience. Call your FPL Customer Manager or the FPL Business Customer Care Center today at 1-800-375-5566.

O CTO B ER / N OV EM B ER 2010

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F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

HO T H AVA N A N IGH T S

This VIP Party was Hot, Hot, Hot!

Dave Reid, Moriah Murphy, Harry Price, Andy Haas.

Over 600 industry executives and hospitality VIP’s joined together to celebrate this annual event. This year’s theme was Hot Havana Nights, and where better to celebrate than Cuba Libre Restaurant & Rum Bar inside Pointe Orlando. Situated on two floors, FRLA guests were entertained throughout Cuba Libre with professional salsa dancers, Orlando’s hottest Latin DJ and even a cigar roller on the patio under the stars. Cuba Libre indulged FRLA in fifteen tastes of Cuba with the help of SYSCO Food Services and Southern Wine & Spirits. FRLA was also proud to welcome Governor Charlie Crist as our honored guest for the evening. Special thanks to the Allied Member Council and all of our event sponsors for helping to make this year’s party the best yet. The gang from Fishbowl with Dan Murphy.

Central Florida & Space Coast Chapter Board Members (left to right) Kash Ramnarain, Al Gardner, Jean-Louis, Alan Findlay.

Conrad Carney (right) and the team from CMS Text. w w w.Res t au ra n t A nd Lodgi ng.com

F LO R I DA R ESTAU R A N T & LO D G I N G

F R E SH F ROM F L OR I DA

Florida Chefs Deliver Message to Washington, D.C.

‘Florida Seafood is Safe’

he Florida House, the state’s embassy in Washington, D.C., VISIT FLORIDA, the Florida Department of Agriculture and Consumer Services, Florida Department of Citrus and Florida Fish and Wildlife Conservation Commission sent the nation’s capital one simple message: Florida seafood is safe. And to get their point across renowned Florida Chefs Dean Max, 3030 Ocean, Jim Shirley Great Southern Café, Joshua Butler, Executive Chef of Florida’s Governor’s Mansion, and Justin Patrick Timineri, Executive Chef and Culinary Ambassador for Fresh From Florida, were on hand cooking for the various politicos and other guests on hand. To drive the point home, each chef created and served foods using fresh Florida seafood. Chef Max presented a delightful

O CTO B ER / N OV EM B ER 2010

Dog Island Grouper Burgers by Chef Joshua Butler

Sebastian Inlet Clams BBLT (Bacon, Basil, Lettuce and Tomato) with the clams presented over a piece of oil brushed ciabatta bread, the clams atop to be dressed in a red sauce of tomatoes, garlic, shallots and thick, double-smoked bacon that added texture and an earthy aroma to the dish. “Tomatoes are in season now and they are good,” Chef Max said.

“I source our bacon from Benton’s Family Farm. And the clams come from Sebastian Inlet.” The spice of the peppers is perfectly smoothed from the fat of the bacon and together it is a tasty dish would make a perfect, comfort food dish. It wouldn’t be Florida seafood without Grouper and Chefs Butler and Timineri worked together to present Dog Island Grouper Burgers, a mélange of grouper and shrimp tossed into a “cake” with red onion, bell pepper, celery, breadcrumbs, whole grain mustard and mayonnaise creating a juicy, flavor burger served alongside Chef’s Florida Slaw made with lime juice, Greek yogurt, grapefruit and tangerines tossed together with cabbage, carrots and onion. Chef Shirley spooned out Grits à Ya Ya, a wonderful dish in which the grits are made with smoked

Chef Jim Shirley

gouda cheese and creamed corn, then garnished with “The Ya Ya,” a sauce of applewood-smoked bacon, shrimp, Portobello mushroom, fresh spinach and more, then garnished with smoky chili spiced, grilled shrimp. The evening’s intent was to convey Florida seafood is safe to eat and tourism to Florida for beach activities, fishing and eating that fish should not be avoided as the beaches and water are clean, an important message as the seafood industry contributes to Florida tourism.

F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

F R L A G OL F

Rich Peterson, Abacus, and Don Potter, winner of the $1,000 Helicopter Drop.

Sysco Central Florida Team.

Team AmeriGas. John Caparella, Nick Vojonovic and Pinnacle’s James Clark and Don Potter.

Dave Hadelman and the Hooters girls.

10 Years of FLRA Celebrity Golf The NRA/FRLA Celebrity Golf Tournament celebrated its 10th anniversary on the greens of ChampionsGate Golf Club after the 2010 Florida Restaurant Show where over 300 golfers took part in FRLA’s signature event. Co-Chairs for this year’s event included Bob Basham, Co-Founder, Outback Steakhouse; Doug Ridge, GM, Orlando World Center Marriott; Robin Sorensen, Co-Founder, Firehouse Subs, Peter Kacheris, Managing Director, Waldorf Astoria & Hilton Bonnet Creek Orlando; and Jim Valentino, President, Tropical Smoothie Café. Thanks also to the 1st Annual Jeff Grayson Steering Committee and all of the event sponsors for your tremendous support!

Winning Teams National Course: Richard DeAngelis, Brianna Carson, Jeff Lewis, Linda Brown International Course: Bob Dearden, Michael Gibbons, Robin Sorensen, Chris Sorensen w w w.Res t au ra n t A nd Lodgi ng.com

F LO R I DA R ESTAU R A N T & LO D G I N G

Food for Thought

Big Bucks Partner

Continued on Page 3

Aronberg. Lizbeth Benacquisto easily defeated Rep. Kevin Rader in the Senate District 27 race, while former Sen. Jack Latvala won the Senate District 16 seat that had been held by Sen. Charlie Justice. In other key races, Republican Party of Florida John Thrasher defeated Democratic challenger Deborah Gianoulis to maintain Senate District 8, and Sen. Steve Oelrich defeated his Democratic challenger Perry McGriff to maintain his Senate District 14 seat. Republicans also maintained control of Senate District 25, when Rep. Ellyn Bogdanoff, R-Ft. Lauderdale, defeated Rep. Kelly Skidmore, D-Boca Raton. “This increase will allow our Republican-led Legislature to tackle tough issues facing our state in the upcoming 2011 Legislative Session – from balancing our state’s budget to reforming Medicaid and cutting wasteful government spending, all with our conservative principles in mind,” said incoming Senate President Mike Haridopolos.

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Join FRLA in Tallahassee For Legislative Tourism Days, March 15 & 29, 2011

RLA is your representative in Tallahassee – defending the needs of Florida businesses against taxation, fees and unnecessary regulation. While we are continually working on your behalf, the most powerful voice we have is yours. Your State Senators and Representatives need to hear from those in the industry about the changes that impact your business. To give you the opportunity to make your voice heard, FRLA schedules two Legislative Days in the States’ Capitol each year during Legislative Session. We hope that you will make plans to attend one or both of these days. Dates are tentatively set for March 15 and 29, 2011. Check www.FRLA.org to confirm dates. Legislative Days are your opportunity to join your colleagues in Tallahassee to visit with your elected representatives. Meetings are scheduled to give you a face-to-face opportunity to express your opinion on the issues that impact your business. Many critical issues will come before our Legislature during the 2011 Legislative Session. Our most powerful weapon in affecting these debates is a strong and unified showing from Florida’s hospitality industry. Please plan to join FRLA and your fellow members for the 2011 Legislative Days. F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

Since 1992, Americaʼs top restaurants and hotels have trusted us to defend them against suits across Florida. Our statewide coverage, specialized industry knowledge, and experienced attorneys have saved our clients millions over the years with low settlements and defense verdicts. For a Firm Resume and Client References contact Anna Pham at apham@hightowerlaw.net or call 305.539.0909.

Sonny’s Character Summer Camp Earns NRA Statewide Restaurant Neighbor Award

onny’s Franchise Company, the parent company of Sonny’s Real Pit Bar-B-Q (Sonny’s), was excited to host its Third Annual Sonny’s Summer Character Camp in partnership with the Boy Scouts’ Learning for Life program at Wheatley Park in Apopka this year. Sonny’s Summer Character Camp is a weeklong day camp that offers a free opportunity for at-risk students in the surrounding Apopka area to receive critical life lessons in character development and positive team-building activities. This year, the Camp server more than 90 underprivileged children in the Apopka area. Each Character Camp child shared in many activities they would not normally have the opportunity to experience, such as a visit from a balloon artist, face painter, participation in a puppet workshop, cooking presentation, cupcake decorating and much more! A Community Kick-Off Bar-B-Q was also part of the activities and all families were welcome. This gave parents the opportunity to register their child for the Summer Camp, began the next day. Now in its thurd year, the Sonny’s Summer Character Camp has served more than 250 children. Learning for Life State Chairperson and former Secretary of State for Florida, Glenda Hood, explains, “This is a program that allows Orlando’s youth to enjoy their summer in a safe, fun and educational camp that ordinarily would not be available to them. Sonny’s Bar-B-Q is a staple in the Central Florida Community and their commitment to Orlando’s youth is commendable.” Floyd “Sonny” Tillman founded Sonny’s Real Pit Bar-B-Q in 1968 in Gainesville, Florida. Today, Sonny’s has more than 125 restaurants with over 6,000 team members in nine southeastern states. w w w.Res t au ra n t A nd Lodgi ng.com

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F LO R I DA R ESTAU R A N T & LO D G I N G

Food Manager Training & Testing Schedule www.safestaff.org

To register, call toll-free 1-866-372-SAFE (7233) or visit www.safestaff.org. Registration for training begins at 8:00 a.m. and for exam at 12:30 p.m. unless otherwise noted. Dates subject to change. Bradenton

Daytona Beach

Ft. Lauderdale

Ft. Myers

Ft Walton

Naples

12/22

12/15, 1/5

12/21

1/20

12/6, 1/11

12/2, 1/27

Courtyard Marriott 100 Riverfront Drive

Homewood Suites by Hilton Daytona Beach SpeedwayAirport 165 Bill France Blvd.

Hilton Ft Lauderdale Marina 1881 SE 17th St Causeway

Holiday Inn 2431 Cleveland Ave.

Holiday Inn Resort 573 Sana Rosa Blvd

Quality Inn and Suites 4100 Golden Gate Pkwy

Ft. Myers

Ft. Pierce

Gainesville

Ocala

12/16

12/2

12/14, 1/4

12/8

Deerﬁeld Beach

Clarion 12635 S. Cleveland Ave.

UF Indian River Research 2199 South Rock Rd.

Best Western Gateway Grand 4200 NW 97th Blvd.

Homewood Suites 4610 SW 49th Rd

Hollywood 12/16

12/13 12/13*

Holiday Inn 2905 Sheridan Street

Double Tree Castle Hotel 8629 International Drive

Islamorada

Panama City

1/25

12/14, 1/13

The Islander Resort MM 82.1, US Hwy 1

Gulf Coast Comm College Gibson Lecture Hall 5230 W. Hwy. 98

Clearwater 12/6, 1/10

Holiday Inn Select 3535 Ulmerton Rd.

12/7, 1/10

Hilton, 100 Fairway Drive

Jacksonville 12/6,1/3

Pensacola

Wyndham Riverwalk 1515 Prudential Drive

12/20, 1/18

Jacksonville Beach

Port Richey

Quality Inn Oceanfront 11 North 1st Street

12/13, 1/11

Days Inn & Suites 10826 US 19 North

12/2, 1/5

Sanford

Doubletree Grand Key Resort 3990 S. Roosevelt Blvd Tartuga Room A

12/7, 1/11

Kissimmee

12/1

12/2, 1/27

Hampton Inn 5995 Cattleridge Road

Seralago Hotel and Suites 5678 Irlo Bronson Mem. Hwy Lakeland

Springhill Suites Marriott 301 North Towne Road Sarasota

St. Augustine 12/9

Ramada Limited 2535 State Road 16

12/7

Lakeland Hotel & Conference Center 3260 Hwy 98 North Mandarin 12/22, 1/24

Ramada Inn Mandarin 3130 Hartley Road Melbourne 12/9

Holiday Inn 8298 N Wickham Rd Merritt Island

St. Augustine 1/26

Holiday Inn Express & Suites 2300 State Road 16 Tallahassee 12/16, 1/15

Day’s Inn Monroe Street Conference Center 2714 Graves Road Tampa (Spanish Dates*)

12/16

12/15 12/6*

Clarion Hotel 260 E Merritt Island Cswy

Clarion Hotel 2701 E Fowler Ave

Miami (Spanish Dates*)

West Palm Beach

12/13, 1/24 12/9*, 1/6*

12/8, 1/5

Hilton Miami Airport & Towers 5101 Blue Lagoon Drive O CTO B ER / N OV EM B ER 2010

Pensacola Civic Center 201 E. Gregory St

12/15, 1/12

Key West

Orlando (Spanish Dates*)

Holiday Inn Palm Beach Airport 1301 Belvedere Rd

F LO R I DA R ESTAU R A N T & LO D G I N G A S SO CI AT I O N

T I P R E P ORT I NG

This fact sheet provides general information concerning the application of the FLSA to employees who receive tips.

Tipped employees are those who customarily and regularly receive more than $30 a month in tips. Tips actually received by tipped employees may be counted as wages for purposes of the FLSA, but the employer must pay not less than $2.13 an hour in direct wages.

Requirements

If an employer elects to use the tip credit provision the employer must: 1) Inform each tipped employee about the tip credit allowance (including amount to be credited) before the credit is utilized. 2) Be able to show that the employee receives at least the minimum wage when direct wages and the tip credit allowance are combined. 3) Allow the tipped employee to retain all tips, whether or not the employer elects to take a tip credit for tips received, except to the extent the employee participates in a valid tip pooling arrangement. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the minimum hourly wage of $7.25 per hour effective July 24, 2009; the employer must make up the difference. Where to Obtain Additional Information Youth Minimum Wage : The 1996 Amendments to the FLSA allow For additional inforemployers to pay a youth minimum mation, visit our Wage wage of not less that $4.25 an hour and Hour Division to employees who are under 20 years Website www.wageof age during the first 90 consecutive hour.dol.gov and/or calendar days after initial employment call our toll-free inforby their employer. The law contains mation and helpline, certain protections for employees that available 8 a.m. to prohibit employers from displacing any 5 p.m. in your time zone, 1-866-4USWAGE employee in order to hire someone at (1-866-487-9243). the youth minimum wage. Dual Jobs : When an employee is employed concurrently in both a tipped and a non-tipped occupation, the tip credit is available only for the hours spent in the tipped occupation. w w w.Res t au ra n t A nd Lodgi ng.com

The Act permits an employer to take the tip credit for time spent in duties related to the tipped occupation, even though such duties are not by themselves directed toward producing tips, provided such duties are incidental to the regular duties and are generally assigned to such occupations. Where tipped employees are routinely assigned to maintenance, or where tipped employees spend a substantial amount of time (in excess of 20 percent) performing general preparation work or maintenance, no tip credit may be taken for the time spent in such duties. Retention of Tips : The law forbids any arrangement between the employer and the tipped employee whereby any part of the tip received becomes the property of the employer. A tip is the sole property of the tipped employee. Where an employer does not strictly observe the tip credit provisions of the Act, no tip credit may be claimed and the employees are entitled to receive the full cash minimum wage, in addition to retaining tips they may\should have received. Service Charges : A compulsory charge for service, for example, 15 percent of the bill, is not a tip. Such charges are part of the employer’s gross receipts. Where service charges are imposed and the employee receives no tips, the employer must pay the entire minimum wage and overtime required by the Act. Tip Pooling : The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), busboys/girls and service bartenders. Tipped employees may not be required to share their tips with employees who have not customarily

and regularly participated in tip pooling arrangements, such as dishwashers, cooks, chefs, and janitors. Only those tips that are in excess of tips used for the tip credit may be taken for a pool. Tipped employees cannot be required to contribute a greater percentage of their tips than is customary and reasonable. Credit Cards : Where tips are charged on a credit card and the employer must pay the credit card company a percentage on each sale, then the employer may pay the employee the tip, less that percentage. This charge on the tip may not reduce the employee’s wage below the required minimum wage. The amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company.

Typical Problems Minimum Wage Problems:

Employee does not qualify as a “tipped employee”, tips are not sufficient to make up difference between employer’s direct wage obligation and the minimum wage; employee receives tips only -- so the full minimum wage is owed; illegal deductions for walk-outs, breakages and cash register shortages; and invalid tip pools. Overtime Problems : Failure to pay overtime on the full minimum wage; failure to pay overtime on the regular rate including all service charges, commissions, bonuses and other remuneration. U.S. Department of Labor Wage and Hour Division Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA), Revised July 2009.

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