May 2012
Founded in 1933, the Indiana Restaurant represents over 1,600 member restaurant properties and industry-related services companies. It is these members that help make the foodservice industry the nation's largest private sector employer and one of the state’s most politically active and public service oriented industries. Our members are the cornerstone of the Indiana community and economy.
New Federal Employment Rules in Effect The NLRB’s Employee Rights Notice Poster has been “taken down” by the federal courts so at least for now private employers will not face legal jeopardy if the NLRB’s Notice was not posted by April 30. We will continue to keep you updated as the court proceedings march ever so slowly forward. A final ruling will not likely occur until next year. But even then the ruling will likely be appealed so it may be years until private employers will have a final answer – whether to post or not post the Notice.
Despite legal challenges that have yet to be resolved, the NLRB’s “Quickie Election” Rules went into effect on April 30. These rules were passed by the NLRB (with three recess appointees that are the focus of the legal challenge) and eliminate several procedural steps on the road to conducting a secret ballot election for union representation at private employers. The effect is that the NLRB elections that were usually held within 45 days of the filing of an election petition will now be held in about half that time. We will continue to monitor the legal battle over this rule as well. But for now private employers should make sure that management is doing all it can to confront the union challenge that may be heading your way.
The EEOC’s new regulations outlining the employer’s burden of establishing “Reasonable Factors Other Than Age” as a defense to disparate impact age discrimination claims also became effective on April 30. These regulations strongly suggest that employers need to: articulate the business justification for any employment action; train management in the proper use of discretion in applying selection criteria and consider all the facts and circumstances to find alternatives that would not adversely impact over the age of 40.
NRA Launches New Campaign that Harnesses the Power of Grassroots Initiatives The America's Restaurant Advocates program will build a coalition of politically-active restaurateurs to fight anti-restaurant legislation A new National Restaurant Association (NRA) initiative, America’s Restaurant Advocates, aims to strengthen the restaurant industry's grassroots power. The program will help build a coalition of politically-active restaurateurs who can get involved in legislative matters that impact the foodservice industry. Launched at the recent NRA Public Affairs Conference in Washington, D.C, America's Restaurant Advocates also serves as an information hub for restaurateurs with an interest in political affairs. Through an interactive website, America's Restaurants Advocates will educate and engage operators on key issues that affect the industry. The website also will allow restaurateurs to share stories about how those issues impact their businesses. The site features an action center, advocacy toolkit, issue briefs and much more. The online toolkit will help operators leverage their relationships with Congress, as well as network with their politically-active peers. By becoming one of America's Restaurant Advocates, restaurateurs can help advance the industry's priorities at various levels, including within their cities, their state houses and on Capitol Hill. The advocates are expected to contact policymakers, communicate their concerns and explain the industry's economic impact in their communities in order to better educate lawmakers on how the decisions they make impact the health of the nation’s foodservice industry
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March RPI Matches Post-Recession High Hit in December 2011 Operators’ outlook for capital spending at its highest level in more than four years Driven by solid same-store sales and traffic results and an increasingly bullish outlook among restaurant operators, the National Restaurant Association’s (NRA) Restaurant Performance Index (RPI) matched its post-recession high in March. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 102.2 in March, up 0.3 percent from February and equaling its post-recession high that was previously reached in December 2011. In addition, the RPI stood above 100 for the fifth consecutive month in March, which signifies expansion in the index of key industry indicators. “The first quarter finished strong with a solid majority of restaurant operators reporting higher same-store sales and customer traffic levels in March,” said Hudson Riehle, senior vice president of the NRA’s Research and Knowledge Group. “In addition, restaurant operators are solidly optimistic about sales growth and the economy in the months ahead, which propelled the Expectations component of the RPI to its highest level in 15 months. Bolstered by improving sales and traffic results, restaurant operators’ outlook for capital spending reached its highest level in more than four years. This will have positive implications throughout the supply chain of the restaurant industry.” Restaurant operators reported positive same-store sales for the tenth consecutive month in March, with sales results similar to their February performance. Sixty-five percent of restaurant operators reported a same-store sales gain between March 2011 and March 2012. Meanwhile, 21 percent of operators reported lower same-store sales in March, compared to 18 percent who reported similarly in February. Restaurant operators also reported positive customer traffic results in March. Fifty-five percent of restaurant operators reported higher customer traffic levels between March 2011 and March 2012, while 24 percent reported a traffic decline. Buoyed by improving sales and traffic levels, restaurant operators continued to report solid capital spending activity. Forty-eight percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, which ties for the highest level reported since before the recession. For the fourth consecutive month, a majority of restaurant operators expect their sales to be higher in the months ahead. Fifty-three percent of restaurant operators expect to have higher sales in six months with only nine percent expecting their sales volume to be lower. Restaurant operators are also generally optimistic about the direction of the overall economy. Thirty-eight percent of restaurant operators said they expect economic conditions to improve in six months, up from 35 percent last month. In comparison, 12 percent of operators said they expect economic conditions to worsen in the next six months, down slightly from 14 percent who reported similarly last month. Additionally, for the sixth consecutive month, restaurant operators reported higher expectations for staffing levels in the months ahead.
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National Restaurant Association Releases Guide to Restaurant Accounting Uniform System of Accounts for Restaurants 8th Edition helps operators record, report and leverage financial statements
(Washington, D.C.) The National Restaurant Association has released the eighth edition of its Uniform System of Accounts for Restaurants, a guide to preparing financial statements in standardized restaurant-specific format. Last released in 1996, the guide takes into account new technology and revenue streams so restaurant operators and managers can better identify ways to report financials and increase operational efficiency. The publication is primarily geared toward single-unit and small multi-unit independent operators. It is intended as a practical guide to accurately record detailed financial records and enhance productivity and build profitability. Hospitality educators, accountants and suppliers might also use the book to better understand restaurant operations. The book covers federal, state and local taxes and includes a list of nearly 800 P&L line items. It also contains a chapter on basic accounting and record-keeping, and sample balance sheets. Uniform System of Accounts for Restaurants is available in the National Restaurant Association’s online store for $79.95 for Association members and $159.95 for non-members. The publication was edited and revised by Jim Laube, publisher of RestaurantOwner.com, and Barry K. Shuster, editor of Restaurant Startup & Growth magazine.
BEWARE OF SCAM Some members have received notices from poster sellers claiming Indiana businesses need to buy a new mandatory compliance poster due to Indiana's smoking ban, set to take effect in July. This, however, is not completely accurate. As an employers •
You must inform current and prospective employees that smoking is prohibited inside the building. However, this does not need to be via an updated labor law posting. It could be done, among other ways, via staff notices, updated handbooks and hiring materials for interviewees.
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Employers impacted by the ban do need to post conspicuous signage (which we are providing one at NO CHARGE) at each public entrance, reading something similar to, "Indiana state law prohibits smoking within 8 feet of this entrance."
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Employers must also remove all ashtrays where smoking is prohibited.
We're offering our own signs to help you comply with the law, these posters will be sent to all members prior to the July 1 effective date of the smoking ban. (See more information about the Smoking Ban on page 6.)
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Indiana restaurateurs meet with Representative Mike Pence in Washington during the NRA Public Affairs Conference L-R: John Frenz, Montana Mikes, Vincennes; Randy Shields, McDonald's Indianapolis; John Livengood, President Indiana Restaurant Association; Representative Pence, Russ Adams,Strongbow Inn, Valparaiso, Perry Krause, McDonald's, Jeffersonville, Craig Huse, St. Elmo Steakhouse, Indianapolis
Court invalidates ambush-election rule
A federal court nullified the National Labor Relations Board's ambush-election rule. The U.S. District Court for the District of Columbia held the rule invalid due to the fact a quorum of three members was not present when the rule was adopted Dec. 16, 2011. "The restaurant industry, the nation's second-largest private sector employer and an industry comprised mostly of small businesses, is pleased that another shot-gun regulation, and one of our top targets for repeal, has been invalidated by the courts," said Angelo Amador, vice president of labor and workforce policy for the National Restaurant Association. "Last month, more than 3,000 members contacted their senators seeking legislative relief from this regulation, which failed on the senate floor on a party line vote. We are pleased that yesterday's ruling makes legislative relief unnecessary." The NLRB rule would allow union representation elections to be held in as few as 10 days after the filing of a union petition. This move would shorten the period between petition to elections to such a degree that it would deny employees the time and information needed to make an informed decision on union representation. The National Restaurant Association, as part of the Coalition for a Democratic Workplace, was among the plaintiffs in the case filed by the U.S. Chamber of Commerce and the CDW. The court did not address the merits of the rule. NLRB is expected to appeal, but the earliest a court would rule on the appeal would be in October or November. NLRB also may attempt to reissue the rule, which the NRA said would invite an additional legal challenge. Page 4
Find Out How Indiana’s Restaurant Industry Serves the State’s Economy New fact sheet provides data highlighting the valuable role foodservice plays in fueling the state’s economic engine Annually, the NRA generates "Restaurant Industry at a Glance" fact sheets that reflect the important role the restaurant industry plays in driving states’ economies. To download the Indiana “Restaurant Industry at a Glance” fact sheet, visit http://www.restaurant.org/pdfs/research/state/ indiana.pdf
EEOC Issues New Guidance on Criminal Background Checks The agency last week revised 25-year-old enforcement guidance on employers' use of criminal background checks in the hiring process. The NRA and nearly 50 other organizations had asked the EEOC to solicit more employer input before issuing changes that could impede employers' ability to use criminal-background checks – but the agency went ahead with new guidelines anyway. EEOC did delay its review of guidelines on employers' use of credit checks in hiring. Read EEOC guidelines http://1.usa.gov/IQzkac , EEOC FAQ http://1.usa.gov/ITT7ai .
Are You Paying Too Much in Payroll Tax Recent media investigations led by WISH-TV in Indianapolis have shown that the Department of Workforce Development over-collected millions of dollars in payroll taxes in 2010. Payroll taxes are paid by companies to help finance unemployment insurance benefits for out-of-work Hoosiers. In 2010, the Indiana General Assembly chose to delay implementation of payroll tax increases that were a part of the unemployment insurance reforms passed in the Legislature in 2009. The delays were enacted because businesses felt they were being unfairly burdened during an economic recession. It now appears that DWD went ahead and collected the higher level of payroll taxes from businesses across this state for a period of time. However, DWD has made no effort to advise businesses of the mistake. The WISH-TV investigation showed that business owners must take it on themselves to contact the state agency to find out if they have overpaid and are due refunds.
National Restaurant Association and Share Our Strength Partner to Triple Funds Raised for No Kid Hungry® Campaign by 2013 Association commits to help grow revenues for Share Our Strength's Dine Out For No Kid Hungry™ program through the generosity of restaurant industry The National Restaurant Association announced that it is committing to work together with Share Our Strength® to triple the funds raised for Share Our Strength's No Kid Hungry® campaign through 2013, raising an incremental $5 million to end childhood hunger in the United States.
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Indianapolis Tougher Smoking Ban Effective June 1 After Indiana passed its first state-wide ban, The Marion County City-County Council passed a more restrictive ban that includes bars. Operators must follow the strictest components of each ban. Below highlights the stricter component from the two bans. The Indianapolis ban does not include the towns of Speedway, Lawrence and Beech Grove. The State-wide No Smoking Law takes effect on July 1, 2012. The Indianapolis changes take effect June 1, 2012 EXEMPTIONS While state law exempts bars, the Indianapolis ban does not. Only current Tobacco Specialty Bars will be exempt under the new Indianapolis ban beginning June 1, 2012. All other bars must be smoke-free. The Indianapolis ban also removed the exemption for hotel and motel rooms rented to guests. The club exemption is the same in the state law and Indianapolis, however an additional requirement in Indianapolis includes sending a notice to the Health and Hospital Corporation of Marion County by September 1, 2012, that a majority vote of its membership has elected to allow smoking. State law requires that the club have a separate, enclosed, designated smoking room or area that is adequately ventilated. DISTANCE FROM AN ENTRANCE The State ban prohibits smoking within 8 ft of an entrance, while the Indianapolis ban does not allow “smoke from smoking” to enter any area where smoking is otherwise prohibited. The state law is stricter so Indianapolis establishments must prohibit smoking within 8 ft of an entrance. ENFORCEMENT The state ban is enforced by the Alcohol & Tobacco Commission, but may also be enforced by state and local health departments, fire and building safety or law enforcement officers in cooperation with the commission. The Indianapolis ban is now enforced by the Marion County Health Department as well as Code Enforcement, Fire Department and Indianapolis Metropolitan Police Department. State Law requires the owner, operator, manager, or official in charge of a public place to: • Ask a person smoking in a “public place” to refrain from smoking. (A ”public place” is an enclosed area where the public is invited or permitted); • Cause to remove the person from the “public place” who fails to refrain from smoking • Indianapolis ordinance requires the owner, manager, operator, or employee of an establishment to: inform persons violating the law to refrain from smoking. SIGNAGE The state law requires “public places” to prominently post signs at each public entrance that reads “State Law Prohibits Smoking within 8 Feet of this entrance”, or similar language. Signage available for members prior to July 1st when this section becomes effective.
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FINES State: A person who smokes in a non smoking area commits a Class B infraction and a Class A infraction if they have at least 3 prior violations. An employer that fails to comply with its obligations also commits a Class B infraction, unless the employer has committed at least 3 prior violations, in which case it is a Class A infraction. The penalty for a Class B infraction is a fine of up to $1,000 and up to $10,000 for a Class A infraction. Violations under the Indianapolis ordinance are subject to up to a $2500 fine per violation, with a minimum fine of $200 for any subsequent violation. Each day is considered a separate violation. Additionally, business owners may lose permits or licenses issued. Tobacco Specialty Bar License Required The Department of Code Enforcement (DCE) will be responsible for administering a Tobacco Specialty Bar license under the new smoking ordinance. A Tobacco Specialty Bar is defined as a business that, as of January 1, 2012: (1) Is licensed to sell alcoholic beverages pursuant to a permit issued by the Indiana Alcohol and Tobacco Commission for on-premise consumption and in which the service of food is only incidental to the consumption of such beverages and the sale of cigars or Hookah tobacco; (2) Is engaged in the business of selling cigars or Hookah tobaccos and where at least twenty percent (20%) or more of its total annual gross income over the preceding calendar year was derived from the on-site sale of cigars or Hookah tobaccos; (3) That is not physically located within a business otherwise required to be smoke free and (4) That does not sell cigarettes or allow smoking of cigarettes on the premises. Additional information, including a more in-depth FAQ document, license requirements and license applications, is available online at www.indy.gov/licensing. Indiana’s New No Smoking Law is designated as House Enrolled Act No. 1149 and creates a new Chapter of the Indiana Code I.C. 7.1-5-12 and can be accessed at: http://in.gov/legislative/bills/2012/HE/HE1149.1.html Indianapolis Ordinance No. 136: http://www.indy.gov/eGov/Council/Proposals/Documents/2012/ PROP12-136.pdf
BEWARE OF SCAM (See page 3.)
ATC Issues New Guidelines for Banners Recently the Indiana Alcohol & Tobacco Commission issued new guidelines for banners provided by wholesalers. The ATC has also determined that window clings fall in the temporary category and are considered banners. Contact Debbie Scott at the association if you have any questions. BANNERS/OUTSIDE SIGNS * Wholesalers are prohibited from creating banners that contain both brand name and pricing information. * Wholesalers are also are prohibited from creating banners that that contain both brand name and d/b/a information. * Wholesalers are allowed to create a banner that contains both brand name and non-alcoholic beverage info (i.e. sport schedules). The sports schedules that are facing outward in a window would still need to meet the requirement of 21 days prior and ending 5 days after the event. For example, NASCAR schedules would only meet the guidelines if placed prior to the Brickyard 400. Colts/Pacers schedules should normally be ok provided they are not on the road for a lengthy period. The commissions policy is that any sign designed to be read from the outside (whether it’s inside or out) to be a banner. The banner must be temporary and commemorate a sporting event, festival or holiday held in Indiana. These are temporary and are to be displayed 21 days prior to the event and ending 5 days after the event. 905 IAC 1-38-1(c); IC 7.1-5-2-7. INDOOR/SIGNS (POSTERS) Indoor signs (posters) must conform to 905 IAC 1-5.2-5 - Advertising Specialties . These need to be for inside point of sale purposes only. These may have package and pricing information on them but the wholesaler can't add the name of the retailer/dealer. Any sign that is facing out in retailer/dealer windows with pricing info has the intent of outdoor advertising and is prohibited. RETAILERS/DEALERS -The retailer/dealer that creates and is paying for a banner at their own expense with no wholesaler involvement is allowed. The digital light boards that have brand name and pricing info up all year with no wholesaler involvement is also allowed. NEONS 7.1-2-3-16.5 The law was changed in 2006 which allows wholesalers to provide neons as long as it’s being done on a non-discriminatory basis. The neon cannot be personalized by the wholesaler. Once the recipient has been given the illuminated sign it is their property and responsibility and the maintenance of the sign is not the wholesalers.
Please help welcome the newest Members of the IRA family! We are proud to announce our newest members. Please extend a warm welcome to them! Azura Café & Grill - Jasper www.azuracafe.com Nickolas Hostetter (812) 634-2211 Chef Mike's Charcoal Grill Indianapolis www.chefmikescharcoalgrill. com Mike Atherton (317) 295-9490 Rosatis Pizza - Schererville Nancy Healy 219-864-1114
Tavern on South Steve Geisler 317-602-3115 Indianapolis www.tavernonsouth.com ASSOCIATE MEMBERS Beuter Corporation Indianapolis Brian Beuter 317-876-3213 bbeuter@beutercorp.com
Indiana Waste Solutions Indianapolis indianawastesolutions.com Adam Ittenbach (877) 591-0133 aittenbach@ indianawastesolutions.com IWS is a full service restaurant and hotel maintenance company. Services include Kitchen hood cleaning, grease trap disposal, complete floor, tile and patio cleaning
Zesco.com Andy Helmrock (317) 269-9300 andy@zesco.com Indianapolis www.zesco.com We offer a wide spectrum of foodservice equipment and supplies with 140,000 sq. ft. facility. Our services include expertise, technical skill and design consultants.
Save the Date "fore" the IRA Oven Door Open
QUESTIONS? Contact Stephanie Higgins 317.673.4211 ext. 135 800.678.1957 toll-free or shiggins@LMVconsulting.com Page 7
Daily/Weekly Controls That Work
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DATES AND LOCATIONS Chicago June 11, 2012 9:00 am to 5:00 pm at the Holiday Inn 6624 South Cicero Road Chicago, IL 60638 Can’t Make it to Chicago? Attend our Webinar Two 4 hour sessions April 30 and May 1 or June 5 and 6 8:00am to Noon PST Top Ten Financial Controls That Will Improve Restaurant’s Profits Immediately
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7 Tips for Reducing Labor Costs in a Struggling Economy Lean Accounting for Getting Quicker and More Useful Information Profit Increasing Tips And much more...
This CPE Course has been specifically designed by a Restaurant Owner and a CPA to increase restaurant profits. “Great presentation style, ezpecialoly the real life stories and examples. If only my partners had attended as well.” —Peter Branklen, NY Restaurant Owner
For More Information or to Register Call 1 (800) 526-5798 or visit www.restaurantseminars.com Page 8
A One Day Intensive Seminar Designed and updated by a CPA and a working restaurant owner For 30 years the #1 Restaurant Financial Seminar “I implemented a few of the controls and this is the first time in three years I’ve made money.” —Jack Richfield, Restaurant Owner, Seattle, WA
RESTAURANT ACCOUNTING AND CONTROLS 2012 Restaurant Owners We will teach you everything you want to know about financial statements and how to apply this information to increase profits and survive tough times.
Restaurant Managers and Key Employees Every restaurant manager needs the latest financial knowledge to run a successful restaurant in 2012. We will show you how to calculate and apply financial ratios. Plus, the newest food costing, menu pricing and labor saving techniques. Includes a 165 page Manual for reference.
CPAs and Accountants We provide you with the newest industry benchmarks and techniques to help your clients. We will also share with you the 25 most common questions your clients will ask, and the answers. From the authors of PPC’s
Guide to Restaurants and Bars