.
.
The
MAINE INGREDIENT I
45 Melville St. • Augusta, ME 04330
207.623.2178
December 2013
www.mainerestaurant.com
info@mainerestaurant.com
Association Salutes Dick Grotton Longtime President & CEO Feted Upon Retirement
MAINE INGREDIENT I
The
Maine Restaurant Association President & CEO Dick Grotton will retire on December 31st. On October 18th a veritable “Who’s Who” of the hospitality and tourism industry turned out at the Harraseeket Inn in Freeport for “A Salute to Dick Grotton”. Association staff and executive committee members led by Past Chairman of the Board Mike Carney planned the event to celebrate Mr. Grotton’s nineteen years of service to the association and to highlight his accomplishments in the leadership role for Maine’s food service industry.
p i T t Ho
Calculating Overtime for Tipped Employees
/
The proper method to determine the overtime rate for tipped employees is often a subject of much consternation for restaurateurs in Maine.
Here’s the appropriated calculation: State Minimum Wage (hourly rate) Multiply by 1.5 (overtime rate of time and a half) equals:
$7.50 x 1.5 $11.25
Then, subtract the tip credit (50% of minimum wage) Maine overtime wage rate for tipped employees equals:
- $3.75 $7.50
As always, feel free to call the association office for questions or clarifications.
The evening was truly a food extravaganza starting with a cocktail reception featuring hors d’oeuvres specially prepared in Dick’s honor by chefs representing member-restaurants including Azure Café, David’s Restaurants, DiMillo’s On the Water, and The Nonantum Resort. The festivities continued to the banquet hall where Harraseeket Inn’s Chef Eric Flynn presented a sumptuous duo of filet mignon and stuffed lobster tail. Chef Flynn informed Dick that he had personally cut every steak and stuffed every lobster tail assuring that each meal served had his signture touch in honor of the evening’s guest of honor. Current and former members of the board of directors of the association offered video-taped testimonials or spoke during the evening of their appreciation of Dick’s efforts on behalf of the industry and of their sentiments for their leader. Senator Susan Collins, who regretfully could not attend the event, sent a moving video tribute in which she thanked Dick for his work with her office in support
of the Maine hospitality industry. Maine State Senator Brian Langley, chef-owner of the Lobster Pot Restaurant in Ellsworth, presented Dick with a Declaration of Legislative Sentiment. Knowing of the friendship between Dick and nationally renowned singer-songwriter Aaron Barker, Broadcast Music Inc. brought the accomplished artist from Nashville to celebrate Dick’s retirement by performing the national anthem and entertaining guests with hit songs he has written for country-western performing artists. During the celebration, Dick was presented with the Maine Restaurant Association “Bill Zoidis” Lifetime Achievement Award and a large collection of restaurant and hotel gift certificates to permit Dick and his wife, Barbara, to visit his many industry friends at hospitality venues statewide in retirement. As a final gift from board members and a grateful association, Executive Committee member John Kyle presented Dick with a silver Rolex Submariner watch in appreciation for his nearly two decades of vigilance in representing, promoting and educating the Maine food service industry. The association extends special appreciation to the Gray family and their staff at the Harraseeket Inn and to all of members that contributed financially to ensure that the celebration was befitting our retiring President and friend, Dick Grotton.
...more details on page 4
Tips vs. Service Charges: Maine vs. Federal Law Restaurants often add a mandatory charge for service to large parties in the dining room setting to ensure that servers are appropriately compensated for their service. Federal and Maine law are in conflict on the terminology and financial handling of such charges leaving restaurant operators in a precarious position. The IRS’s interpretation is that this type of fee is a “Service Charge” - defined as an amount of money added to a customer’s bill over which the customer had no control or voice, whereas a “tip” or “gratuity” is a gift from the customer that is freely given and not required to be paid. The IRS considers service charges to be taxable income to the business and any portion distributed to waitstaff must be paid out as W2 wages, rather than as tipped income. Maine law holds the opposite point of view; that the amount added to the customer’s
...continued on page 11
IN THIS ISSUE:
Chairman’s Message
2
President’s Report
3
Schedule of Upcoming Events
3
Grotton Retirement Celebration
4
Food Code Changes
9
Restaurant & Lodging Expo
1O
The
Maine
INGREDIENT I
Maine Restaurant Association
Chairman’s Message:
Annual Golf Classic
Tips vs. Service Charges...
By Todd Maurer, King Eider’s Pub & Restaurant - Damariscotta
The View from Maine Street The temperature this morning was a brisk 29° and the traffic on Main Street was very light. The window washers were bundled up as they polished up our view of the world and there’s a broom outside the front door waiting for me to sweep away the last of the autumn twigs and leaves and the first dusting of snow. It is the end of a very full and busy tourist season here on the coast and my “to do” list is still long, but the items listed are of the “caretaking” variety! First on my list and very important to the wellbeing of my company, I will get in touch with the Association and be briefed on what is happening in Washington and Augusta and how that picture will be affecting my business decisions. I may have been totally focused on the day-to-day of the “frantic” season, but I know the Association has been staying on top of all the issues that have such a direct impact on all of us. Going down the list, I see maintenance issues that need attention. The sheer numbers of feet that enter the door and walk through
December 2013
this space leave floors and walls, tables and chairs and just about everything else in the building in need of care, cleaning and often replacement. Time to tackle the housekeeping! Paperwork, regardless of the technology of iPads, QuickBooks and Email, is still paperwork! Closer attention to scheduling, ordering and staffing is called for and those adjustments are crucial to the efficiency that makes such a difference in the bottom line. Insurance? That needs to be on the list of items that should get a closer inspection. When there is time for a little breathing space, another worthy task is a review of those insurance policies for cost and effectiveness. As the screens come down to be replaced by storm windows and doors, heating issues could use a closer inspection. The cost of energy is something that never is far from mind and now as a Maine winter waits just off stage, might be a good time to take a look at what projects could tighten up the building. My list is long and detailed and it nags for attention. Like you, I know how important each “bullet”on the sheet is. So no more delaying. As the first winter snow flies I will get the jobs done. And if you happen to drive down Main Street in Damariscotta and see me replacing weather stripping on the front door, honk and wave and cheer me on – ‘tis the season!
The
Maine Ingredient is published six times a year by the Maine Restaurant Association. 2013 © All Rights Reserved 45 Melville Street Augusta, Maine · 04330 Tel: 207.623.2178 · Fax: 866.711.5408 www.mainerestaurant.com info@mainerestaurant.com ../mainerestaurantassociation @mainerestaurant MAINE RESTAURANT ASSOCIATION OFFICERS Todd Maurer
Chairman of the Board King Eider’s Pub & Restaurant Damariscotta
Tina Hewett-Gordon Vice Chair The Nonantum Resort Kennebunkport
Bud Hall
Second Vice Chair Angler’s Restaurants Hampden, Newport, Searsport
Bruce Woodard, CPA, CFP
Treasurer Woodard & Associates, CPA’s Auburn, Portland
John Kyle
Secretary Pat’s Pizza - Yarmouth / Grill 233 Yarmouth
Gus Tillman
Senior Advisor Holiday Inn By the Bay Portland
STAFF Richard A. Grotton, FMP
President & CEO dick@mainerestaurant.com
...continued from page 1 bill, even without their consent, must still be “treated as a tip” and therefore the property of the server. Either way the server generally gets the money in the end, but the process is different.
net zero tax consequence.) This complies with federal law and, other than the menu terminology, complies with the Maine requirement to treat the money as a tip and disperse all the funds to employees.
Should the house retain a portion of the charges and not disperse ALL the service charge to employees as W2 wages, the house is also responsible for sales tax on the entire amount. (Some case law suggests the state should only charge sales tax on the retained portion.) In addition, by not dispersing the entire amount to employees the business would be in violation of Maine law which requires that ALL the so-called tip be given to employees.
Option 3 - Offer sample calculations of suggested tip amounts on the bill (e.g., 15%, 18%, 20%) but leave the actual tip line blank. This allows the customer to determine the tip satisfying both Maine and federal definitions of a tip while providing guidance as to a customary and appropriate gratuity.
Here are the options the association suggests restaurants follow in order to be as compliant as possible with both federal and Maine law: Option 1 - Eliminate the menu advisory regarding large parties and explain to waitstaff that conflicts in state and federal law make this practice untenable. Option 2 - Leave the large party advisory on the menu as you always have, but refer to amounts added to a customer’s guest check as a service charge, NOT as a gratuity. Retain the collected funds, declare it as taxable income and pay ALL the collected sums to employees as W2 wages, NOT as tipped income at the end of the pay period, and document the payments as service charges. (This should result in a
Make sure your waitstaff understand how these charges must be handled and that they will receive the service charges for large parties as W2 wages at the end of the pay period with all taxes deducted. In the banquet setting, Maine and federal law concur that sums added to the customer’s guest check for the banquet are service charges and taxable income to the house. Maine law also requires that the house explain to the customer in writing that the service charge is not a tip. If this statement causes customers any concern, you may also need to explain that service charges are used to pay ALL the staff that assist with the function, not just the servers and that all employees are fairly compensated for their respective roles in the banquet process and no other compensation from the consumer is expected or required. Once again, if you retain any portion of the
service charge for the house then all of the service charge may become eligible for sales tax if you are audited. The house is free to disperse the service charge among any or all employees as it sees fit as it is not a tip subject to commonly tipped employee rules. A Note About Tip Pools: The practice of restaurants requiring employees to share tips among those who assist in customer service has been a confusing legal issue in Maine for years. Until 2010, it was not legal for a restaurant to enforce a tip pooling requirement. That is now changed. The restaurant now can require waitstaff to share what the IRS calls “a reasonable percentage” of their tips with those who assist in serving the customer. Some potential pitfalls to consider: Each employee should sign a statement agreeing to abide by the terms of a prescribed tip pooling arrangement. The tip share required should not exceed 20% of a server’s tip income. The sharing should only be done between “commonly tipped employees” generally defined as those in direct service to the consumer such as: bussers, cocktail runners, bartenders and hosts/hostesses. Back of the house workers are NOT considered commonly tipped employees, nor are managers or supervisors even though they may occasionally play a “tipped employee” role in customer service.
Maine Restaurant Association
Annual Awards Banquet Join us in celebration of Maine’s Restaurant Community Monday, April 7, 2014 ∙ Holiday Inn By the Bay 5 pm - Restaurant Showcase Reception ∙ 6:30 pm - Awards Dinner
Award Categories
Becky Jacobson
Operations Manager becky@mainerestaurant.com
Rebecca Dill
Marketing & Events Director rebeccad@mainerestaurant.com
2
Restaurateur of the Year Lifetime Achievement Award Chef of the Year Allied Member of the Year
Now Coordinating Event Sponsorships 11
The
Maine
INGREDIENT I
Maine Restaurant Association
MAINE RESTAURANT & LODGING EXPO 2O14
Upcoming Events
December 2013 President’s Report: By Dick Grotton, President & CEO, Maine Restaurant Association
Tuesday, April 8, 2O14 ∙ 10 am - 4 pm ∙ Cumberland County Civic Center ∙ Portland, Maine
Not Goodbye, but a Change of Pace On December 31st I retire as President of the Maine Restaurant Association. When I was hired in 1994, I told the search committee that I would serve five years. That time is long gone with some 600,000 miles traveled and more legislative battles than I can count, it is time.
Tuesday, February 4, 2014 5:00 pm - 8:00 pm
Legislative Reception Senator Inn & Spa, Augusta
Mark your calendar and plan to join us for the only comprehensive business-to-business trade
Saturday, March 8, 2014 8:00 am - 4:00 pm
show for Maine’s foodservice and lodging industry. Everything you need to operate your business -
3rd Annual Maine ProStart Competition
from products to services to solutions - will be on display.
Southern Maine Community College, South Portland
Restaurants that are members of the Maine Restaurant Association are entitled to two complimentary passes which will be mailed about a month prior to the Expo.
FMI: Visit www.mainerestaurant.com ∙ Follow the Expo on Twitter @MaineExpo Contact Rebecca at events@mainerestaurant.com, 207.623.2178
Now Accepting Exhibitor Booth Reservations
Tuesday & Wednesday March 18 & 19, 2014
Governor’s Conference on Tourism Cross Insurance Center, Bangor
Monday, April 7, 2014 5:00 pm - 9:00 pm
Annual Awards Banquet Holiday Inn By the Bay, Portland
Tuesday, April 8, 2014 10:00 am - 4:00 pm
President’s Column... ...continued from page 3
Maine Restaurant & Lodging Expo Cumberland County Civic Center, Portland
Greg and Chris are very knowledgeable and will be readily available to answer your queries over the coming months and years. Your experience in reaching out to the Association for guidance will not change. I look forward to some travel, some time at home, and with grandchildren, and not commuting to Augusta every day. I will miss responding to the emerging issues that threaten our industry and the challenges that arise with each phone call. I will miss the daily interaction with you, our members, and helping with your questions
and concerns. I am proud of our new leadership team; I am proud that the organization they inherit is debt free, financially and politically strong, exceptionally well-staffed, and highly respected. Some have said that I arrived just in time to save the Maine Restaurant Association. I think it’s really the other way around; I believe the Restaurant Association arrived just in time to save me. I have served you faithfully and I leave you in good hands and well prepared for the future.
1O
Wednesday, June 4, 2014 3:00 pm - 5:00 pm
Membership Meeting Location TBD
Wednesday, June 4, 2014 5:00 pm - 7:00 pm
Membership Reception Location TBD
I have so many people to thank for all they have done for me and our Association: Our staff, Becky Jacobson and Rebecca Dill - both tremendous professionals who come to work every day committed to enhancing prosperity for our industry. They have saved me, and you, so many times. Our talented board members who freely give of their time and energy to serve all of us. And their terrific leaders, the ten board chairmen that I have worked so closely with over the years. The hundreds of Association members and allied industry companies whose financial support drives the organization forward. Our phenomenal and beloved Senators Olympia Snowe and Susan Collins; many hundreds of citizen legislators; Governors King, Baldacci and LePage with whom I have enjoyed the most respectful alliances; and agency professionals including the incomparable Sawin Millett; Anne Head and Will Lund; Nancy Beardsley, Lisa Roy, and Steve Giguere; Lt. Scott Ireland, Larry Sanborn, Gerry Reid and Tim Poulin; Peter Beaulier, Verna Eldridge, and so many others that have been so helpful over the years. Fellow association professionals of the Hospitality and Tourism Alliance, the Maine Society of Association Executives, the State Chamber and the many local chambers of commerce that support our industry. Thank you for all you have done! This is not goodbye, but it surely will be a
3
change of pace. I will be serving as a consultant to the Association and the industry, and perhaps doing some speaking and training which I will enjoy. On January 1st the Association will enter a new era of collaboration with the Maine Innkeepers Association. The organizations are not merging as you may have heard. Each organization will maintain its independence. Separate executive committees, separate boards of directors, separate staffs and separate budgets but with a common management team under the leadership of Mr. Greg Dugal as President & CEO. Greg is by no means new to our restaurant association. He is a past chairman of the board of directors. I am very proud to turn over the reins to Greg knowing that he is a phenomenal restaurant, hotel and association management professional. Greg will enjoy the assistance and professional restaurant management skills of Chris Jones who comes to both Associations in the new position of Chief Operating Officer with 20 years of restaurant experience and a master’s degree in business administration to go with it.
...continued on page 1O
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The
Maine
INGREDIENT I
Maine Restaurant Association
December 2013
2013 Maine Food Code Changes that will Impact Foodservice Establishments
A Salute to Dick Grotton
Upcoming Classes
03 There are numerous and extensive changes throughout the 2013 Maine Food Code. The new code was adopted earlier this year following a public hearing. This newly adopted version of the Maine Food Code is scheduled for increasing enforcement in 2014 following inspector training on the new code. The Maine Food Code can be viewed in its entirety by following the link posted at www.mainerestaurant.com.
01
It is highly recommended that members download the code, read it and become thoroughly familiar with its contents as this document guides the process under which foodservice establishments will be judged upon inspection.
02 06
04
08 05
07 10
Health Inspection Program (HIP) Director Lisa Roy explains that, in addition to a rigorous sanitation assessment, they view the inspection process over the next two years to be an educational opportunity. Inspectors will be working with each establishment’s Certified Food Protection Managers to update their food safety knowledge base as it relates to the new food code requirements.
Chapter 4 - Equipment, Utensils, and Linens
Following are some of the more substantive changes that restaurant operators should note and the sections of the Maine Food Code specifically referenced:
Chapter 6 - Physical Facilities
Chapter - 1 Definitions Should be reviewed as several defined terms are new. Chapter 2 - Management & Personnel
09 (01) Maine Restaurant Association President & CEO, Dick Grotton pictured with his son, Major Chris Grotton of the Maine State Police and wife Barbara Grotton. (02) Hors d’ouevres by Chef Chris Bassett of Azure Cafe in Freeport. (03) Past chairmen of the MeRA Board - Bill Zoidis (left), formerly of the Pilot’s Grill, Jack Crawford (center) of Ground Round and current Treasurer of the National Restaurant Association and John Kyle (right) of Pat’s Pizza - Yarmouth and Grill 233. (04) Hors d’oeuvres by Chef David Turin of David’s Restaurants. (05) NRA Director Michael Carney from Governors Restaurants served as master of ceremonies and retirement party committee chairman. (06) A trio of desserts by the culinary team at the Harraseeket Inn. (07) Dick Grotton accepting legislative sentiments from State Senator, chef and restaurateur, Brian Langley of the Union River Lobster Pot in Ellsworth. (08) BMI hit songwriter and longtime friend of Dick Grotton, Aaron Barker, performed his award-winning country songs including George Strait’s “Baby Blue” and Lonestar’s “What About Now”. (09) Dick Grotton alongside Executive Chef Eric Flynn of the Harraseeket Inn in Freeport. (10) Tina Hewett-Gordon, MeRA Vice Chairman representing The Nonantum Resort in Kennebunkport, assists MeRA Board Secretary John Kyle in presenting Dick Grotton with a Rolex watch in appreciation of his 19 years of service to the association.
Special Thanks! Many thanks to the members who made contributions to Dick’s retirement party: Maine Hospitality & Tourism Alliance · BMI · Bev-Tech · David’s Restaurants · Heartland Payment Systems · Holiday Inn By the Bay · Headlight Audio Visual · Maine Beer & Wine Wholesalers Association · Pepsi Bottling Group · Performance Foodservice NorthCenter · Sysco of Northern New England · Governor’s Restaurant & Bakery · Azure Café · DiMillo’s On the Water · The Great Lost Bear · Gritty McDuff ‘s · Maine Lobster Promotion Council · The Nonantum Resort · Oakhurst Dairy · Pine Tree Food Equipment · Testa’s Restaurant · Dennis Paper & Food Service · Cole Farms · Gepetto’s.
4
• MAJOR CHANGE NO bare hand contact with ready to eat foods 3-301.11(E); • • Heat Temperature of Food Table 3-401.11; • • Non-Continuous Cooking of Raw Animal Foods 3-401.14; • • Date Marking of Ready-to-Eat Potentially Hazardous Foods 3-501.17; • • Time as Public Health Control 3-501.19; • • Reduced Oxygen Packaging, Criteria 3-502.12.
• Certified Food Protection Manager Sections 2-102.12 & 2-102.20; • • Responsibilities of Person In Charge for Ill Employees (Restrictions and Exclusions in section 2-201.11, 2-201.12 & 2-201.13); • • Cleaning Procedures in Section 2-301.12; • • Responding to Contamination Events in Section 2-5. Chapter 3 - Food • Juice Treated at 3-202.110, Juice Criteria 3-801.11;
Tuesday, Jan. 14, 2014 Westbrook - SYSCO of Northern N.E. 8:30 am - 5:00 pm
Tuesday, Jan. 21, 2014 Augusta Armory 8:30 am - 5:00 pm
Tuesday, Feb. 18 , 2014 • Auto Dispensing of detergents and sanitizers, Section 4-204.117; • • Warewashing cleaning, Section 4-301.12; • • Warewashing Equipment, Sanitizer Concentration Table 4-501.114.
• Maine revised the requirement for the minimum number of toilets and urinals in Section 6-302.10. Chapter 7 - Poisonous or Toxic Materials • Chemicals Section 7-204, Drying Agents, Criteria, Section 7-204.14.
Westbrook - SYSCO of Northern N.E. 8:30 am - 5:00 pm
Tuesday, Feb. 25 , 2014 Augusta Armory 8:30 am - 5:00 pm
Registrations must be made at least ten days prior to the class so that text books may be mailed in time for students to study in advance.
Register Online
Chapter 8 - Compliance and Enforcement • At a minimum, inspections will occur every two years, though inspections may increase in frequency at the discretion of the inspector based on risk factors, Section 8-401.10; • • Aggrieved parties are allowed 30 days to appeal agency decisions in compliance with the Administrative Procedures Act. All substantive Maine Food Code changes are listed at www.mainerestaurant.com. As always, members with specific questions regarding how these changes will affect their business are encouraged to call the association office for guidance.
9
www.mainerestaurant.com $119 per person (member rate) $170 per person (non-member rate)
For More Information call: 207. 623 . 2178 or email: becky@mainerestaurant.com Online training is also available.
Consistent marketing in Maine magazine’s Eat section offers your business credible connectivity with an affluent and passionate community. Our readers love Maine and want to participate in the state thoroughly. A 14-issue contract supports and expands your overall marketing program and bolsters your business goals. With frequency and consistency, you have unparalleled visibility for your business and you also earn a better rate.
Well read in Maine magazine. Well regarded on Facebook. Well respected in a blog.
Call us today and start a dialogue to position your business for results.
207.772.3373
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Well, what are you waiting for? Advertise in Maine magazine and get your message in front of thousands of hungry people who care about one thing:
Great Maine restaurants.
themainemag.com
You'll be in good company.
Consistent marketing in Maine magazine’s Eat section offers your business credible connectivity with an affluent and passionate community. Our readers love Maine and want to participate in the state thoroughly. A 14-issue contract supports and expands your overall marketing program and bolsters your business goals. With frequency and consistency, you have unparalleled visibility for your business and you also earn a better rate.
Well read in Maine magazine. Well regarded on Facebook. Well respected in a blog.
Call us today and start a dialogue to position your business for results.
207.772.3373
Maine magazine Eat Section Rates 1- 4 x
5- 13x
14 x
Net Rate w/Contract
Full Page
$1400
$1200
$1000
$900
Half Page
$950
$800
$650
$585
Quarter Page
$850
$725
$575
$517.50
10% off the 14x rate with a 14x contract
MAINE MEDIA COLLECTIVE, LLC | 75 Market Street | Suite 203 | Portland, Maine | 04101 207.772.3373 | themainemag.com | mainehomedesign.com
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5% off for a credit card on ďŹ le with a 14x contract
The
Maine
INGREDIENT I
Maine Restaurant Association
December 2013
2013 Maine Food Code Changes that will Impact Foodservice Establishments
A Salute to Dick Grotton
Upcoming Classes
03 There are numerous and extensive changes throughout the 2013 Maine Food Code. The new code was adopted earlier this year following a public hearing. This newly adopted version of the Maine Food Code is scheduled for increasing enforcement in 2014 following inspector training on the new code. The Maine Food Code can be viewed in its entirety by following the link posted at www.mainerestaurant.com.
01
It is highly recommended that members download the code, read it and become thoroughly familiar with its contents as this document guides the process under which foodservice establishments will be judged upon inspection.
02 06
04
08 05
07 10
Health Inspection Program (HIP) Director Lisa Roy explains that, in addition to a rigorous sanitation assessment, they view the inspection process over the next two years to be an educational opportunity. Inspectors will be working with each establishment’s Certified Food Protection Managers to update their food safety knowledge base as it relates to the new food code requirements.
Chapter 4 - Equipment, Utensils, and Linens
Following are some of the more substantive changes that restaurant operators should note and the sections of the Maine Food Code specifically referenced:
Chapter 6 - Physical Facilities
Chapter - 1 Definitions Should be reviewed as several defined terms are new. Chapter 2 - Management & Personnel
09 (01) Maine Restaurant Association President & CEO, Dick Grotton pictured with his son, Major Chris Grotton of the Maine State Police and wife Barbara Grotton. (02) Hors d’ouevres by Chef Chris Bassett of Azure Cafe in Freeport. (03) Past chairmen of the MeRA Board - Bill Zoidis (left), formerly of the Pilot’s Grill, Jack Crawford (center) of Ground Round and current Treasurer of the National Restaurant Association and John Kyle (right) of Pat’s Pizza - Yarmouth and Grill 233. (04) Hors d’oeuvres by Chef David Turin of David’s Restaurants. (05) NRA Director Michael Carney from Governors Restaurants served as master of ceremonies and retirement party committee chairman. (06) A trio of desserts by the culinary team at the Harraseeket Inn. (07) Dick Grotton accepting legislative sentiments from State Senator, chef and restaurateur, Brian Langley of the Union River Lobster Pot in Ellsworth. (08) BMI hit songwriter and longtime friend of Dick Grotton, Aaron Barker, performed his award-winning country songs including George Strait’s “Baby Blue” and Lonestar’s “What About Now”. (09) Dick Grotton alongside Executive Chef Eric Flynn of the Harraseeket Inn in Freeport. (10) Tina Hewett-Gordon, MeRA Vice Chairman representing The Nonantum Resort in Kennebunkport, assists MeRA Board Secretary John Kyle in presenting Dick Grotton with a Rolex watch in appreciation of his 19 years of service to the association.
Special Thanks! Many thanks to the members who made contributions to Dick’s retirement party: Maine Hospitality & Tourism Alliance · BMI · Bev-Tech · David’s Restaurants · Heartland Payment Systems · Holiday Inn By the Bay · Headlight Audio Visual · Maine Beer & Wine Wholesalers Association · Pepsi Bottling Group · Performance Foodservice NorthCenter · Sysco of Northern New England · Governor’s Restaurant & Bakery · Azure Café · DiMillo’s On the Water · The Great Lost Bear · Gritty McDuff ‘s · Maine Lobster Promotion Council · The Nonantum Resort · Oakhurst Dairy · Pine Tree Food Equipment · Testa’s Restaurant · Dennis Paper & Food Service · Cole Farms · Gepetto’s.
4
• MAJOR CHANGE NO bare hand contact with ready to eat foods 3-301.11(E); • • Heat Temperature of Food Table 3-401.11; • • Non-Continuous Cooking of Raw Animal Foods 3-401.14; • • Date Marking of Ready-to-Eat Potentially Hazardous Foods 3-501.17; • • Time as Public Health Control 3-501.19; • • Reduced Oxygen Packaging, Criteria 3-502.12.
• Certified Food Protection Manager Sections 2-102.12 & 2-102.20; • • Responsibilities of Person In Charge for Ill Employees (Restrictions and Exclusions in section 2-201.11, 2-201.12 & 2-201.13); • • Cleaning Procedures in Section 2-301.12; • • Responding to Contamination Events in Section 2-5. Chapter 3 - Food • Juice Treated at 3-202.110, Juice Criteria 3-801.11;
Tuesday, Jan. 14, 2014 Westbrook - SYSCO of Northern N.E. 8:30 am - 5:00 pm
Tuesday, Jan. 21, 2014 Augusta Armory 8:30 am - 5:00 pm
Tuesday, Feb. 18 , 2014 • Auto Dispensing of detergents and sanitizers, Section 4-204.117; • • Warewashing cleaning, Section 4-301.12; • • Warewashing Equipment, Sanitizer Concentration Table 4-501.114.
• Maine revised the requirement for the minimum number of toilets and urinals in Section 6-302.10. Chapter 7 - Poisonous or Toxic Materials • Chemicals Section 7-204, Drying Agents, Criteria, Section 7-204.14.
Westbrook - SYSCO of Northern N.E. 8:30 am - 5:00 pm
Tuesday, Feb. 25 , 2014 Augusta Armory 8:30 am - 5:00 pm
Registrations must be made at least ten days prior to the class so that text books may be mailed in time for students to study in advance.
Register Online
Chapter 8 - Compliance and Enforcement • At a minimum, inspections will occur every two years, though inspections may increase in frequency at the discretion of the inspector based on risk factors, Section 8-401.10; • • Aggrieved parties are allowed 30 days to appeal agency decisions in compliance with the Administrative Procedures Act. All substantive Maine Food Code changes are listed at www.mainerestaurant.com. As always, members with specific questions regarding how these changes will affect their business are encouraged to call the association office for guidance.
9
www.mainerestaurant.com $119 per person (member rate) $170 per person (non-member rate)
For More Information call: 207. 623 . 2178 or email: becky@mainerestaurant.com Online training is also available.
The
Maine
INGREDIENT I
Maine Restaurant Association
MAINE RESTAURANT & LODGING EXPO 2O14
Upcoming Events
December 2013 President’s Report: By Dick Grotton, President & CEO, Maine Restaurant Association
Tuesday, April 8, 2O14 ∙ 10 am - 4 pm ∙ Cumberland County Civic Center ∙ Portland, Maine
Not Goodbye, but a Change of Pace On December 31st I retire as President of the Maine Restaurant Association. When I was hired in 1994, I told the search committee that I would serve five years. That time is long gone with some 600,000 miles traveled and more legislative battles than I can count, it is time.
Tuesday, February 4, 2014 5:00 pm - 8:00 pm
Legislative Reception Senator Inn & Spa, Augusta
Mark your calendar and plan to join us for the only comprehensive business-to-business trade
Saturday, March 8, 2014 8:00 am - 4:00 pm
show for Maine’s foodservice and lodging industry. Everything you need to operate your business -
3rd Annual Maine ProStart Competition
from products to services to solutions - will be on display.
Southern Maine Community College, South Portland
Restaurants that are members of the Maine Restaurant Association are entitled to two complimentary passes which will be mailed about a month prior to the Expo.
FMI: Visit www.mainerestaurant.com ∙ Follow the Expo on Twitter @MaineExpo Contact Rebecca at events@mainerestaurant.com, 207.623.2178
Now Accepting Exhibitor Booth Reservations
Tuesday & Wednesday March 18 & 19, 2014
Governor’s Conference on Tourism Cross Insurance Center, Bangor
Monday, April 7, 2014 5:00 pm - 9:00 pm
Annual Awards Banquet Holiday Inn By the Bay, Portland
Tuesday, April 8, 2014 10:00 am - 4:00 pm
President’s Column... ...continued from page 3
Maine Restaurant & Lodging Expo Cumberland County Civic Center, Portland
Greg and Chris are very knowledgeable and will be readily available to answer your queries over the coming months and years. Your experience in reaching out to the Association for guidance will not change. I look forward to some travel, some time at home, and with grandchildren, and not commuting to Augusta every day. I will miss responding to the emerging issues that threaten our industry and the challenges that arise with each phone call. I will miss the daily interaction with you, our members, and helping with your questions
and concerns. I am proud of our new leadership team; I am proud that the organization they inherit is debt free, financially and politically strong, exceptionally well-staffed, and highly respected. Some have said that I arrived just in time to save the Maine Restaurant Association. I think it’s really the other way around; I believe the Restaurant Association arrived just in time to save me. I have served you faithfully and I leave you in good hands and well prepared for the future.
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Wednesday, June 4, 2014 3:00 pm - 5:00 pm
Membership Meeting Location TBD
Wednesday, June 4, 2014 5:00 pm - 7:00 pm
Membership Reception Location TBD
I have so many people to thank for all they have done for me and our Association: Our staff, Becky Jacobson and Rebecca Dill - both tremendous professionals who come to work every day committed to enhancing prosperity for our industry. They have saved me, and you, so many times. Our talented board members who freely give of their time and energy to serve all of us. And their terrific leaders, the ten board chairmen that I have worked so closely with over the years. The hundreds of Association members and allied industry companies whose financial support drives the organization forward. Our phenomenal and beloved Senators Olympia Snowe and Susan Collins; many hundreds of citizen legislators; Governors King, Baldacci and LePage with whom I have enjoyed the most respectful alliances; and agency professionals including the incomparable Sawin Millett; Anne Head and Will Lund; Nancy Beardsley, Lisa Roy, and Steve Giguere; Lt. Scott Ireland, Larry Sanborn, Gerry Reid and Tim Poulin; Peter Beaulier, Verna Eldridge, and so many others that have been so helpful over the years. Fellow association professionals of the Hospitality and Tourism Alliance, the Maine Society of Association Executives, the State Chamber and the many local chambers of commerce that support our industry. Thank you for all you have done! This is not goodbye, but it surely will be a
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change of pace. I will be serving as a consultant to the Association and the industry, and perhaps doing some speaking and training which I will enjoy. On January 1st the Association will enter a new era of collaboration with the Maine Innkeepers Association. The organizations are not merging as you may have heard. Each organization will maintain its independence. Separate executive committees, separate boards of directors, separate staffs and separate budgets but with a common management team under the leadership of Mr. Greg Dugal as President & CEO. Greg is by no means new to our restaurant association. He is a past chairman of the board of directors. I am very proud to turn over the reins to Greg knowing that he is a phenomenal restaurant, hotel and association management professional. Greg will enjoy the assistance and professional restaurant management skills of Chris Jones who comes to both Associations in the new position of Chief Operating Officer with 20 years of restaurant experience and a master’s degree in business administration to go with it.
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The
Maine
INGREDIENT I
Maine Restaurant Association
Chairman’s Message:
Annual Golf Classic
Tips vs. Service Charges...
By Todd Maurer, King Eider’s Pub & Restaurant - Damariscotta
The View from Maine Street The temperature this morning was a brisk 29° and the traffic on Main Street was very light. The window washers were bundled up as they polished up our view of the world and there’s a broom outside the front door waiting for me to sweep away the last of the autumn twigs and leaves and the first dusting of snow. It is the end of a very full and busy tourist season here on the coast and my “to do” list is still long, but the items listed are of the “caretaking” variety! First on my list and very important to the wellbeing of my company, I will get in touch with the Association and be briefed on what is happening in Washington and Augusta and how that picture will be affecting my business decisions. I may have been totally focused on the day-to-day of the “frantic” season, but I know the Association has been staying on top of all the issues that have such a direct impact on all of us. Going down the list, I see maintenance issues that need attention. The sheer numbers of feet that enter the door and walk through
December 2013
this space leave floors and walls, tables and chairs and just about everything else in the building in need of care, cleaning and often replacement. Time to tackle the housekeeping! Paperwork, regardless of the technology of iPads, QuickBooks and Email, is still paperwork! Closer attention to scheduling, ordering and staffing is called for and those adjustments are crucial to the efficiency that makes such a difference in the bottom line. Insurance? That needs to be on the list of items that should get a closer inspection. When there is time for a little breathing space, another worthy task is a review of those insurance policies for cost and effectiveness. As the screens come down to be replaced by storm windows and doors, heating issues could use a closer inspection. The cost of energy is something that never is far from mind and now as a Maine winter waits just off stage, might be a good time to take a look at what projects could tighten up the building. My list is long and detailed and it nags for attention. Like you, I know how important each “bullet”on the sheet is. So no more delaying. As the first winter snow flies I will get the jobs done. And if you happen to drive down Main Street in Damariscotta and see me replacing weather stripping on the front door, honk and wave and cheer me on – ‘tis the season!
The
Maine Ingredient is published six times a year by the Maine Restaurant Association. 2013 © All Rights Reserved 45 Melville Street Augusta, Maine · 04330 Tel: 207.623.2178 · Fax: 866.711.5408 www.mainerestaurant.com info@mainerestaurant.com ../mainerestaurantassociation @mainerestaurant MAINE RESTAURANT ASSOCIATION OFFICERS Todd Maurer
Chairman of the Board King Eider’s Pub & Restaurant Damariscotta
Tina Hewett-Gordon Vice Chair The Nonantum Resort Kennebunkport
Bud Hall
Second Vice Chair Angler’s Restaurants Hampden, Newport, Searsport
Bruce Woodard, CPA, CFP
Treasurer Woodard & Associates, CPA’s Auburn, Portland
John Kyle
Secretary Pat’s Pizza - Yarmouth / Grill 233 Yarmouth
Gus Tillman
Senior Advisor Holiday Inn By the Bay Portland
STAFF Richard A. Grotton, FMP
President & CEO dick@mainerestaurant.com
...continued from page 1 bill, even without their consent, must still be “treated as a tip” and therefore the property of the server. Either way the server generally gets the money in the end, but the process is different.
net zero tax consequence.) This complies with federal law and, other than the menu terminology, complies with the Maine requirement to treat the money as a tip and disperse all the funds to employees.
Should the house retain a portion of the charges and not disperse ALL the service charge to employees as W2 wages, the house is also responsible for sales tax on the entire amount. (Some case law suggests the state should only charge sales tax on the retained portion.) In addition, by not dispersing the entire amount to employees the business would be in violation of Maine law which requires that ALL the so-called tip be given to employees.
Option 3 - Offer sample calculations of suggested tip amounts on the bill (e.g., 15%, 18%, 20%) but leave the actual tip line blank. This allows the customer to determine the tip satisfying both Maine and federal definitions of a tip while providing guidance as to a customary and appropriate gratuity.
Here are the options the association suggests restaurants follow in order to be as compliant as possible with both federal and Maine law: Option 1 - Eliminate the menu advisory regarding large parties and explain to waitstaff that conflicts in state and federal law make this practice untenable. Option 2 - Leave the large party advisory on the menu as you always have, but refer to amounts added to a customer’s guest check as a service charge, NOT as a gratuity. Retain the collected funds, declare it as taxable income and pay ALL the collected sums to employees as W2 wages, NOT as tipped income at the end of the pay period, and document the payments as service charges. (This should result in a
Make sure your waitstaff understand how these charges must be handled and that they will receive the service charges for large parties as W2 wages at the end of the pay period with all taxes deducted. In the banquet setting, Maine and federal law concur that sums added to the customer’s guest check for the banquet are service charges and taxable income to the house. Maine law also requires that the house explain to the customer in writing that the service charge is not a tip. If this statement causes customers any concern, you may also need to explain that service charges are used to pay ALL the staff that assist with the function, not just the servers and that all employees are fairly compensated for their respective roles in the banquet process and no other compensation from the consumer is expected or required. Once again, if you retain any portion of the
service charge for the house then all of the service charge may become eligible for sales tax if you are audited. The house is free to disperse the service charge among any or all employees as it sees fit as it is not a tip subject to commonly tipped employee rules. A Note About Tip Pools: The practice of restaurants requiring employees to share tips among those who assist in customer service has been a confusing legal issue in Maine for years. Until 2010, it was not legal for a restaurant to enforce a tip pooling requirement. That is now changed. The restaurant now can require waitstaff to share what the IRS calls “a reasonable percentage” of their tips with those who assist in serving the customer. Some potential pitfalls to consider: Each employee should sign a statement agreeing to abide by the terms of a prescribed tip pooling arrangement. The tip share required should not exceed 20% of a server’s tip income. The sharing should only be done between “commonly tipped employees” generally defined as those in direct service to the consumer such as: bussers, cocktail runners, bartenders and hosts/hostesses. Back of the house workers are NOT considered commonly tipped employees, nor are managers or supervisors even though they may occasionally play a “tipped employee” role in customer service.
Maine Restaurant Association
Annual Awards Banquet Join us in celebration of Maine’s Restaurant Community Monday, April 7, 2014 ∙ Holiday Inn By the Bay 5 pm - Restaurant Showcase Reception ∙ 6:30 pm - Awards Dinner
Award Categories
Becky Jacobson
Operations Manager becky@mainerestaurant.com
Rebecca Dill
Marketing & Events Director rebeccad@mainerestaurant.com
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Restaurateur of the Year Lifetime Achievement Award Chef of the Year Allied Member of the Year
Now Coordinating Event Sponsorships 11
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The
MAINE INGREDIENT I
45 Melville St. • Augusta, ME 04330
207.623.2178
December 2013
www.mainerestaurant.com
info@mainerestaurant.com
Association Salutes Dick Grotton Longtime President & CEO Feted Upon Retirement
MAINE INGREDIENT I
The
Maine Restaurant Association President & CEO Dick Grotton will retire on December 31st. On October 18th a veritable “Who’s Who” of the hospitality and tourism industry turned out at the Harraseeket Inn in Freeport for “A Salute to Dick Grotton”. Association staff and executive committee members led by Past Chairman of the Board Mike Carney planned the event to celebrate Mr. Grotton’s nineteen years of service to the association and to highlight his accomplishments in the leadership role for Maine’s food service industry.
p i T t Ho
Calculating Overtime for Tipped Employees
/
The proper method to determine the overtime rate for tipped employees is often a subject of much consternation for restaurateurs in Maine.
Here’s the appropriated calculation: State Minimum Wage (hourly rate) Multiply by 1.5 (overtime rate of time and a half) equals:
$7.50 x 1.5 $11.25
Then, subtract the tip credit (50% of minimum wage) Maine overtime wage rate for tipped employees equals:
- $3.75 $7.50
As always, feel free to call the association office for questions or clarifications.
The evening was truly a food extravaganza starting with a cocktail reception featuring hors d’oeuvres specially prepared in Dick’s honor by chefs representing member-restaurants including Azure Café, David’s Restaurants, DiMillo’s On the Water, and The Nonantum Resort. The festivities continued to the banquet hall where Harraseeket Inn’s Chef Eric Flynn presented a sumptuous duo of filet mignon and stuffed lobster tail. Chef Flynn informed Dick that he had personally cut every steak and stuffed every lobster tail assuring that each meal served had his signture touch in honor of the evening’s guest of honor. Current and former members of the board of directors of the association offered video-taped testimonials or spoke during the evening of their appreciation of Dick’s efforts on behalf of the industry and of their sentiments for their leader. Senator Susan Collins, who regretfully could not attend the event, sent a moving video tribute in which she thanked Dick for his work with her office in support
of the Maine hospitality industry. Maine State Senator Brian Langley, chef-owner of the Lobster Pot Restaurant in Ellsworth, presented Dick with a Declaration of Legislative Sentiment. Knowing of the friendship between Dick and nationally renowned singer-songwriter Aaron Barker, Broadcast Music Inc. brought the accomplished artist from Nashville to celebrate Dick’s retirement by performing the national anthem and entertaining guests with hit songs he has written for country-western performing artists. During the celebration, Dick was presented with the Maine Restaurant Association “Bill Zoidis” Lifetime Achievement Award and a large collection of restaurant and hotel gift certificates to permit Dick and his wife, Barbara, to visit his many industry friends at hospitality venues statewide in retirement. As a final gift from board members and a grateful association, Executive Committee member John Kyle presented Dick with a silver Rolex Submariner watch in appreciation for his nearly two decades of vigilance in representing, promoting and educating the Maine food service industry. The association extends special appreciation to the Gray family and their staff at the Harraseeket Inn and to all of members that contributed financially to ensure that the celebration was befitting our retiring President and friend, Dick Grotton.
...more details on page 4
Tips vs. Service Charges: Maine vs. Federal Law Restaurants often add a mandatory charge for service to large parties in the dining room setting to ensure that servers are appropriately compensated for their service. Federal and Maine law are in conflict on the terminology and financial handling of such charges leaving restaurant operators in a precarious position. The IRS’s interpretation is that this type of fee is a “Service Charge” - defined as an amount of money added to a customer’s bill over which the customer had no control or voice, whereas a “tip” or “gratuity” is a gift from the customer that is freely given and not required to be paid. The IRS considers service charges to be taxable income to the business and any portion distributed to waitstaff must be paid out as W2 wages, rather than as tipped income. Maine law holds the opposite point of view; that the amount added to the customer’s
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IN THIS ISSUE:
Chairman’s Message
2
President’s Report
3
Schedule of Upcoming Events
3
Grotton Retirement Celebration
4
Food Code Changes
9
Restaurant & Lodging Expo
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