Winter Edition 2016
PROVISIONS OF
SIGNIFICANCE IN THIS
ISSUE
PROTECTING AMERICANS FROM TAX HIKES ACT OF 2015 Pg. 14
MISSOURI PROSTART STATE COMPETITIONS SCHEDULED
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US Foods proudly sponsors the 速
Missouri Restaurant Association
At US Foods, expertise and commitment to your success go beyond simply helping to put the highest-quality food on the plate. We do whatever it takes to ensure you reach your goals and keep your guests coming back. Kansas City
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502 S. Carty St. Salem, MO 65560 800.392.0921 or 573.729.6131
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8543 Page Ave. St. Louis, MO 63114 800.888.4855 or 314.426.4100
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2016
MRA SERVSAFE COURSES UPCOMING CLASS SCHEDULE
Class information and registration at www.morestaurants.org
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Inside
morestaurants.org
Features
9
12
Missouri ProStart® State Competitions Set
14
Congress Passes Protecting Americans from Tax Hike Act
25
What to Consider Before Your Child Works in Your Restaurant
28
Missouri State University – Advancing Hospitality Industry Education
20
Other stories 5
Lex on Tech
6
A Letter from Our President
26
MRA Riddle
28
On the Cover We welcome the long-anticipated news that Congress, with passage of the Protecting Americans from Tax Hikes Act of 2015, has at last provided the certainty restaurants need to make business decisions that create jobs. The days of making important decisions and hoping that Congress would pass an eleventh-hour extension of favorable tax provisions are over. MRA’s coverage of the Act provides detailed information on four provisions of significance to restaurants.
Winter Edition 2016
PROVISIONS OF
SIGNIFICANCE IN THIS
ISSUE
PROTECTING AMERICANS FROM TAX HIKES ACT OF 2015 Pg. 14
MISSOURI PROSTART STATE COMPETITIONS SCHEDULED
February2016.indd 1
1/8/2016 3:43:40 PM
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EDITORIAL STAFF Publisher, Bob Bonney Executive Editor, Lex Nepomuceno Managing Editor, Andy Cook Contributing Editor, Barb Hergenroether Contributing Editor, Paul Schlienz Art Director, Lisa Ellefson MRA Executive Officers Chairman, Vic Allred Jazz, A Louisiana Kitchen
Lex on Tech
How Important is Reputation Management to Your Restaurant? By Lex Nepomuceno, Executive Editor By now, almost every restaurant owner understands the importance of having an online and social media presence at some level. However, this understanding often drops when you factor in online reviews and reputation management.
President, Bob Luke Rib Crib BBQ
What exactly is reputation management, and why is it so important?
Vice-President, Buddy Lahl Kingswood Senior Living Community
Reputation management simply means the ability to track your online listings, reviews and social buzz surrounding your business. This aspect of a restaurant’s online presence is becoming increasingly important because of the growing consumer adoption of sites such as Open Table and Yelp. Oftentimes, new customers are influenced significantly by what they read on review sites such as Yelp. This can benefit a restaurant positively or negatively depending on the nature of the review.
Treasurer, John LaRocca University Club of Missouri University Secretary, Herman Styles Colton’s Steakhouse MRA Executive Team CEO, Bob Bonney Director of Operations, Barb Hergenroether Executive Director GKCRA, Shannon Hickey Southwest Regional Director, Shelli Luke
Missouri Restaurant Association 1810 Craig Road, Suite 225 St. Louis, MO 63146 Phone 314.576.2777 | Fax 314.576.2999 morestaurants.org
Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification. Reproduction of articles appearing in Missouri Restaurant Magazine are authorized for personal use only, with credit given to Missouri Restaurant Magazine and/or the Missouri Restaurant Association. Articles written by outside authors do not necessarily reflect the views or positions of the Missouri Restaurant Association, its Board of Directors, staff or members. Products and services advertised in Missouri Restaurant Magazine are not necessarily endorsed by the MRA, and do not necessarily reflect the opinions of the MRA, its Board of Directors, staff or members. ADVERTISING INQUIRIES MAY BE DIRECTED TO: Missouri Restaurant Association Bob Bonney, CEO Mobile 636.432.9506 bbonney@morestaurants.org Barb Hergenroether, Director of Operations Office 314.576.2777 | Fax 314.576.2999 bhergenroether@morestaurants.org Missouri Restaurant Magazine is published quarterly for Association members. We welcome your comments and suggestions. email: bbonney@morestaurants.org
If your restaurant is established and already has a good reputation in the offline world, this trait is not always transferred to the online world. As inaccurate as it may be, a negative review can have a ripple effect across your business. More and more, potential employees and business partners use online feedback as a factor that helps determine with whom they do business. In a way, it’s like a credit report that the whole world can see. The tricky part about managing online reputation is the amount of time it could take from already busy restaurateurs. Owners and/or managers would have to look through a number of review sites on a daily basis and jump from site to site in order to respond to reviews effectively. Fortunately, the same technology that has made it so easy for upset customers to leave negative feedback has also made it easy to track and respond to such reviews. What should you look for when considering a reputation management tool? 1. Make sure the service allows you to easily track your reviews on sites such as Yelp, Open Table, Google and others. The best online tools will generate daily reports that are emailed to you with snapshots of reviews so that it will not be necessary to log into an online tool on a daily basis. 2. Any reputation management tool should allow you to monitor social activity on the major sites, such as Facebook, Twitter and Instagram. Oftentimes, a negative review can take the form of an unflattering photo or video. Or, a disgruntled customer may simply check in via Facebook at your location and do a quick post like “This place is awful!” Any good reputation management tool will help you keep these types of activities in check. 3. An ability to keep track of key competitors is also an important component of any reputation management tool. You should be able to compare your reviews with other similar restaurants in the area, so that you can identify trends and manage your restaurant’s online presence effectively. You’ve spent a ton of money making your restaurant the best it can be. A lot of time and effort has been dedicated to establishing your online presence, and your marketing budget isn’t getting any bigger. So, make sure you get the most out of your investments by spending a little more time and resources on protecting your company’s online reputation. ■ Winter 2016 | 5
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A Letter from Our President My year of service as president of Missouri Restaurant Association will end on January 30, 2016. I have heard past MRA presidents comment about how quickly it seemed their year as president passed. Having experienced it for myself, I now know they are right.
Bob Luke, MRA President
Although the year flew by, MRA was able to accomplish many good things in 2015. Some of those accomplishments occurred at the Capitol in Jefferson City. During the 2015 legislative session, MRA worked to pass legislation of importance to the restaurant industry in the state. 1. MRA received word from several restaurant members who had received assessments from the Missouri Department of Revenue for employees’ personal state income tax when the Department believed employees had failed to claim all cash tips received. Arguing it was improper to remove the tax burden from employees who the Department believed had failed to report all tip income and place that burden on the employer, MRA successfully passed legislation to prevent the assessments. MRA is aware of restaurants receiving refunds of previous assessments. 2. Realizing that, in order to retain and attract businesses and jobs, Missouri needs one statewide standard for wages and benefits and not a confusing patchwork of local laws, MRA worked alongside a coalition of business groups to pass legislation that prevents a city, town, or other political subdivision from mandating a higher minimum wage or greater employment benefits than required under state or federal law. When the Governor vetoed the bill, MRA worked with the coalition to secure the necessary two-thirds majority in the Missouri Senate and House of Representatives to override the veto. All Missouri restaurants owe a debt of gratitude to three MRA members in particular who worked tirelessly to secure passage of this legislation. Greg Hunsucker (V’s Italiano Ristorante in Independence), Vic Allred (Jazz, A Louisiana Kitchen in Kansas City & Columbia) and Todd Hulse (Jack Stack Barbecue in Kansas City, Martin City and Lee’s Summit) spent many hours in Jefferson City speaking with legislators, testifying at committee hearings, and meeting with the Department of Revenue. Due to the frequency and passion with which these gentlemen work on behalf of the industry, it was suggested all three should register as lobbyists – which they did. MRA’s affiliated chapters around the state stepped up once again to fund scholarships for students envisioning a career in the foodservice and hospitality industry. In 2015, 46 students were awarded scholarships totaling $75,300. That amount includes funds received from the National Restaurant Association’s matching scholarship program. Numerous fundraising events were held to raise the scholarship funds. I was honored to attend many of these events and am proud of the many hours MRA members volunteer to help our future industry leaders as they pursue their education.
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In Kansas City, nearly 200 restaurants agreed to donate a portion of their sales from October 17 to benefit the families of two local firefighters killed in the line of duty. The two families were awarded equal shares of the more than $123,000 raised in the program named Dining for Heroes. In St. Louis, nearly 100 restaurants pledged a share of their sales proceeds from November 10 to fund memorial scholarships to honor the memory of a hotel manager killed in an early morning robbery attempt. The Scott Knopfel Memorial Dine Out will fund scholarships, to be awarded for the first time in 2016, to current restaurant and hotel employees for multiple semesters as they pursue their degrees. As you can see, the generous spirit of the Missouri restaurant community is alive and well. I have been an MRA officer for the past four years. I am also a past-president of my local Springfield/ Branson MRA chapter, a position I held for several years. The longer I am involved in MRA and the more I learn of its mission of service to the industry and the community, the more I appreciate the Association and the inherent goodness of its members. I encourage all of you to take a closer look at your Association. Attend a meeting of your local MRA chapter. Learn more about the benefits of membership. Become involved in MRA’s legislative efforts. As you do, you will have an even greater appreciation for Missouri Restaurant Association. It has been my distinct honor and privilege to serve Missouri Restaurant Association as its 2015 president. I hope all those who preceded me and those to follow me as president will find my work faithful and consistent with the noble purpose for which this storied organization was formed. I wish you every success in the New Year. Sincerely yours, Bob Luke, MRA President Senior Regional Manager, Rib Crib BBQ Winter 2016 | 7
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GREA TE R N
ati
100
YEARS ona
ION AT CI O
Celebration of the Century
RESTAUR AN CITY T AS S AS N A S K
100th Anniversary Gala
irthplace ion B l Restaurant Associat 1916-201 6
CENTENNIAL ANNIVERSARY & INAUGURAL GALA Saturday, January 30, 2016 • Sheraton Kansas City Crown Center The success and strength of the last 100 years has been undoubtedly driven by the generous and consistent support of the MRA and GKCRA members. Ensure the 100th Anniversary Inaugural Ball is the “Celebration of the Century” by pledging your support today!
DIAMOND
PLATINUM
FOOD SERVICE EQUIPMENT
Anheuser-Busch & Family of Local Distributors
GOLD L&C MEAT
SILVER
SPECIAL CONTRIBUTORS
®
®
KANSAS CITY AT CROWN CENTER
Become a sponsor today! Exclusive benefits, signage, advertising opportunities and much more. 8 | morestaurants.org
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Visit www.gkcra100.com for more information. 1/18/16 8:30 AM
CO TA LU ST MB E IA FU SC ’S ND HO ULT RA LA IM IS RS ATE ER H IP
31st Annual
MONDAY, MARCH 14, 2016 5:30PM - 8:00PM
• COLUMBIA, MISSOURI • THE UNIVERSITY CLUB 107 Reynolds Alumni Center | MU Campus Columbia, MO _________________________ Tickets $25 in advance $30 at the door 2016taste.eventbrite.com
Bring a date or your favorite group of friends, and experience the best treats Mid-Missouri has to offer. Sample delectable bites from over 30 area restaurants, with a variety of beverages from local distributors, all in the comfort of Mizzou’s University Club in the Alumni Center.
TICKETS AVAILABLE AT:
Winter 2016 | 9
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March 2 - May 24, 2014
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Missouri ProStart® State Competitions Set
Passion
and Discipline – these are recurring themes throughout the fifteen year history of the annual Missouri ProStart® State Invitational competitions. Management and culinary teams put in the time to prepare and practice for this annual event – day after day, after school, on weekends, and even on snow days. The students understand the skills required of a winning team. But beyond learning how to create an award-winning dish, students gain what industry calls soft, transferrable employability skills – dependability, problem solving, a good work ethic, and teamwork. On February 19, 2016, students, educators, chefs, and industry leaders will gather at the Ramada Plaza Hotel and Oasis Convention Center in Springfield, MO for the Fifteenth Annual Missouri ProStart Invitational. More than 150 top ProStart students from across the Show-Me state will demonstrate their mastery of restaurant leadership skills — culinary and management — in a fast-paced competition to win their share of scholarships and the opportunity to represent Missouri at the National ProStart Invitational in April in Dallas, TX. What about the event makes it so unique and why do industry leaders embrace it? Michael Frommel, a returning floor judge says of the competition, “I truly love to see a new generation engage
their passion. The culinary competition floor is alive with the precision of a choreographed ballet as the team works together with discipline.” Chef/Mentor Wes Johnson of Metropolitan Farmer in Springfield says of his continued support of the program, “By mentoring I believe that I am investing time in the industry and helping students into our field. There is a lack of skilled/passionate workers in our industry and I want to see that change. It is great to mentor students because you get to see their passion.” ProStart is a two-year career technical education program where high-school students learn from an industry-derived, competency-based curriculum that teaches culinary techniques and restaurant management skills, coupled with real-life restaurant sector experiences. In the 20152016 academic year, the Missouri Restaurant Association in partnership with Family, Consumer Sciences and Human Services at the Missouri Department of Elementary and Secondary Education is working with over 100 high schools and career centers across the state to introduce over 5,000 students to career opportunities in the restaurant industry through the ProStart program. ProStart teaches the culinary and management skills required by the nation’s top restaurant, hospitality and foodservice employers.
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ANNUAL LEGISLATIVE DAY TUESDAY, MARCH 15, 2016
9:00 AM - CAPITOL PLAZA HOTEL Briefing on the Issues FULL BREAKFAST PROVIDED
Capitol Plaza Hotel 415 W. McCarty | Jefferson City, MO 65101
10:30 AM
- STATE CAPITOL
Visit with Legislators
5:30 PM
- STATE CAPITOL, 3RD FLOOR ROTUNDA
“Taste of Missouri” FEATURING FARE FROM MRA MEMBERS
RSVP - BARB HERGENROETHER
314-576-2777 BHergenroether@MoRestaurants.org
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Congress Passes Protecting Americans from Tax Hikes Act Legislative victory for restaurants, other small businesses Just prior to recessing for the holidays, Congress passed important tax legislation that is easily the most positive action taken for small business in the past several years. The Protecting Americans from Tax Hikes (PATH) Act of 2015, signed by President Obama on December 18, 2015, makes permanent or extends several tax provisions of particular importance to restaurants, including: 1. Increased IRC Section 179 Expensing Election 2. 15 year Depreciation for Restaurant Improvements & New Construction 3. Work Opportunity Tax Credit 4. Enhanced Deduction for Charitable Contributions of Food Inventory for All Taxpayers Some of the provisions originally became law with the passage of the Small Business Jobs Act (SBJA) of 2010. When the 2010 law was passed by the U.S. Senate, a press release issued by the Senate Finance Committee contained the following preamble: “Small businesses are the backbone of America’s economy and the principal engine of job creation. In fact, over the past 15 years, small businesses have created two-thirds of all new jobs. The Small Business Jobs Act helps create the right economic conditions for small businesses to create new jobs.” However, when provisions of the SBJA expired at the end of 2011, Congress failed to act on a timely basis to extend or make permanent the tax breaks contained therein. For the ensuing tax years, the provisions were extended for a year or two at a time, always at the end of a particular year and made retroactive to the beginning of the year. Accordingly, small business owners were placed in an uncertain position with no reasonable basis to determine the tax impact of decisions made during the year.
PROTECTING AMERICANS FROM TAX HIKES (PATH) ACT OF 2015 Increased IRC Section 179 Expensing Election 15 year Depreciation for Restaurant Improvements & New Construction Work Opportunity Tax Credit Enhanced Deduction for Charitable Contributions of Food Inventory for All Taxpayers
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Since the expiration of the SBJA, Missouri Restaurant Association members had implored our U.S. senators and representatives in personal visits to their Washington offices, and numerous letters, to enact legislation that would provide the certainty small business owners need to make sound business decisions that allow for expansion and the creation of jobs. Each spring, a delegation of MRA members travels to Washington as part of the National Restaurant Association’s Public Affairs Conference. The importance of enacting legislation such as the PATH Act has been a topic of discussion with our federal legislators since 2011. The impact of the PATH Act (or the Act) on four provisions of particular importance to restaurants is indicated below.
INCREASE OF IRC SECTION 179 EXPENSING ELECTION: For tax years beginning after December 31, 2014, the Act makes permanent the $500,000 Section 179 expensing limit, thereby enabling a small business to elect to immediately expense and deduct up to $500,000 of investment in equipment and other qualifying property instead of depreciating the cost over a period of years. The expensing limit is subject to gradual reduction once the total qualifying
property placed in service during the tax year exceeds $2 million. MRA observation: Without passage of the PATH Act, the expensing limit would have reverted to the previous $25,000, and the phase-out would have begun when qualifying property exceeded $200,000. The PATH Act also makes permanent the eligibility for expensing of qualified real property, including certain leasehold improvements and restaurant property and removes the $250,000 annual cap on such expenditures for tax years beginning in 2016. MRA observation: The definition of qualified restaurant property includes a building or improvement to a building, if more than 50% of the building’s square footage is devoted to the preparation of, and seating for on-premises consumption of, prepared meals. Under law existing prior to the passage of the PATH Act, air conditioning units and heating units were specifically excluded from eligibility for Section 179 expensing. Fortunately, that is no longer the case. The Act specifically makes air conditioning and heating equipment eligible to be Section 179 property. MRA observation: Unlike some of the other changes to IRC Section 179, the provisions for air conditioning and heating units is not retroactive; i.e., the change does not apply to units placed in service in tax years beginning in calendar year 2015.
PATH ACT PROVISIONS FOR INDIVIDUAL TAXPAYERS In addition to the four provisions of significance for restaurants, the ACT contains the following provisions for individual taxpayers.
01
STATE & LOCAL SALES TAX DEDUCTION
02
AMERICAN OPPORTUNITY EDUCATION CREDIT
03
CHILD TAX CREDIT
04
EARNED INCOME CREDIT
05
QUALIFIED TUITION & FEES DEDUCTION
06
MORTGAGE DEBT EXCLUSION
Made permanent
Made permanent
Reduced earned income threshold made permanent
Increased 45% credit for 3 or more children made permanent
Extended for 2 years
Exclusion of debt up to $2 million extended for 2 years Winter 2016 | 15
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15 YEAR DEPRECIATION FOR RESTAURANT IMPROVEMENTS & NEW CONSTRUCTION: The Act permanently extends, for tax years beginning after December 31, 2014, 15-year straight line depreciation for qualified leasehold improvements, restaurant buildings and improvements, and retail improvement property. If Congress had not passed the PATH Act, depreciation over a period of 39 years would be required. MRA observation: This provision and the Section 179 election (above) provide a significant tax benefit. The immediate expensing (Section 179) and the shorter depreciable life (15-year depreciation) greatly reduce the after-tax cost of fixed assets. As important, because they reduce income tax liability, the provisions directly impact the lifeblood of a business: cash flow.
PATH ACT AS PART OF TAX REFORM AGENDA “I think this is one of the biggest steps toward a rewrite of our tax code that we have made in many years, and it will help us start a pro-growth bold tax reform agenda in 2016. In addition to all of that, we are ending Washington’s days of extending tax policies one year at a time.” - House Speaker Paul Ryan (R - Wisconsin) December 16, 2015.
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When it enacted a 15-year depreciation schedule for qualified restaurant property, Congress stated that, unlike other commercial buildings, restaurant buildings generally are more specialized structures. Restaurants also experience considerably more traffic, and remain open (for longer hours in a day, and for more days in a week) than most retail properties. This causes rapid deterioration of restaurant properties and forces restaurateurs to constantly repair and upgrade their facilities. Thus, restaurant facilities have a much shorter life span than other commercial establishments. Thus, the 39-year recovery period (that usually applies for buildings and their structural components) is reduced to more accurately reflect the true economic life of the properties. MRA observation: In its communications with our federal legislators, Missouri Restaurant Association had been stating exactly this since the spring of 2009.
WORK OPPORTUNITY TAX CREDIT: The Act retroactively restores back to the beginning of 2015, and extends through December 31, 2019, the Work Opportunity Tax Credit (WOTC or the Credit). In addition, the WOTC is available for the first time to employers who hire
qualified long-term unemployment recipients. MRA observation: A “qualified long-term unemployment recipient� is a person who is certified by a designated local agency as being unemployed for a period of not less than 27 consecutive weeks which includes a period in which the individual was receiving unemployment compensation under state or federal law. The Credit was enacted by Congress to encourage employment of workers in a targeted group. MRA observation: A partial list of the targeted group includes the following: 1. Unemployed Veterans (including disabled veterans) 2. Temporary Assistance for Needy Families (TANF) Recipients 3. Food Stamp (Supplemental Nutrition Assistance Program) Recipients 4. Vocational Rehabilitation Referred Individuals 5. Ex-Felons 6. Supplemental Security Income Recipients 7. Summer Youth Employees (living in empowerment zones)
QUALIFIED TUITION & FEES DEDUCTION STATE & LOCAL SALES TAX DEDUCTION
$608 MILLION
$42.44 BILLION
CHILD TAX CREDIT $87.8 BILLION SECTION 179 EXPENSING $77.01 BILLION BONUS DEPRECIATION $28.2 BILLION
COST OF SELECTED PATH ACT PROVISIONS OVER 10 YEARS Winter 2016 | 17
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As restaurants frequently hire employees for whom the credit would apply, it was important that Congress retroactively extend the credit, which expired at the end of 2014, to include wages paid in 2015. While the PATH Act’s five-year extension of the WOTC is welcome, MRA believes a better decision would be to make the Credit a permanent feature of the Internal Revenue Code. MRA observation: A tax credit is a dollar-for-dollar reduction of income tax liability. The amount of the WOTC is significant and generally ranges from $2,400 to $9,600 per employee depending upon the target group of the individual hired, the wages paid to the individual, and the number of hours the individual worked.
ENHANCED DEDUCTION FOR CHARITABLE DONATIONS OF FOOD INVENTORY FOR ALL TAXPAYERS: The Act permanently extends for tax years beginning after December 31, 2014, the enhanced (above basis) deduction for charitable contributions of food inventory for all taxpayers, including sole proprietorships, S corporations, partnerships and LLCs. The enhanced credit allows taxpayers to take an enhanced deduction for donations of apparently wholesome food to an IRC Section 501(c) (3) charitable organization to be used to care for the ill, the needy, or infants. The enhanced deduction equals the lesser of: a) The cost of the food, plus one-half of the profit that would have been recognized if the food had been sold at fair market value (typically menu price) on the date of the donation, or, b) Twice the cost, or basis, of the food. MRA Illustration: Barry’s Bagels, a sole proprietorship, donates 50 dozen bagels to a local 501(c)(3) organization that provides food for the needy. Barry’s normally sells the bagels for six dollars a dozen, so the bagels are valued at $300 for purposes of determining the charitable deduction. Barry’s cost, or basis, in the bagels is $75. The basis of the bagels, plus one-half of the profit that would have been recognized if the bagels were sold for their FMV, is $187.50 ($75 + (($300 - $75) ÷ 2)). Twice the cost, or basis, of the bagels is $150 ($75 x 2). Barry is allowed a charitable deduction equal to $150, the lesser of the two amounts calculated above. In the absence of the enhanced deduction for contributions of food inventory, Barry’s deduction would have been limited to $75, the cost of the bagels. Clearly, this is a significant tax provision for restaurants. 18 | morestaurants.org
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MRA observation: This enhanced deduction was previously available only to C corporations. MRA lobbied our U.S. Senators and Representatives to emphasize the importance of a level playing field for all taxpayers, including the many restaurants that are not C corporations. To encourage maximum donations of food inventory, Congress included all restaurants regardless of the type of tax entity they chose when establishing their business. Making the enhanced deduction for donations of food inventory available to restaurants operating as sole-proprietorships, S Corporations, partnerships and LLCs is, MRA believes, fair and balanced public policy. There are additional provisions of the PATH Act that will improve the enhanced deduction. For tax years beginning after December 31, 2015, the limitation on the deduction for food inventory donations is increased from 10% to 15% of income. In addition, and also effective for tax years beginning after December 31, 2015, the FMV of donated food inventory will be deemed to be the amount for which the food would have been sold by the donor at the time of the contribution, and many taxpayers will be able to use a basis for the donated food equal to 25% of its FMV. This is important because it will eliminate many of the challenges the Internal Revenue Service has made in the past regarding the FMV and basis used by taxpayers.
MRA conclusion: Missouri Restaurant Association applauds Congress on the passage of the PATH Act of 2015. MRA remained a part of the legislative process over a period of several years. Commenting on the passage of the Act, Greg Hunsucker, Chairman of MRA’s powerful Government Relations & Public Policy Committee, noted, “The PATH Act will provide the certainty America’s small business owners need to make business decisions that allow for business expansion and job creation. The days of business owners being forced to make important decisions while attempting to forecast whether the expired tax benefits would be extended retroactively at the eleventh-hour are finally over. The tax benefits contained in the Act will assist Americas restaurants in the creation of jobs, which the industry has historically done at rates in excess of the overall national economy.” Note from the Publisher: MRA hopes this summary of the voluminous Protecting Americans from Tax Hikes Act of 2015 will be helpful. Business owners should discuss the ACT, and this article, with a competent tax advisor.
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THE GREATER ST. LOUIS RESTAURANT ASSOCIATION, US FOODS AND ACF CHEFS DE CUISINE ASSOCATION OF ST. LOUIS, INC. PRESENT
2016 TRIVIA NIGHT
PLUS CULINARY DELIGHTS!
Enjoy a fun-filled night of trivia accompanied by tasty treats prepared by area chefs and served by culinary students, along with complimentary beer and wine.
SUNDAY, APRIL 3, 2016 4:00 PM - 8:00 PM Doors open at 4:00 • Trivia starts at 4:30 Orlando’s Event & Conference Centers 2050 Dorsett Village Plaza
Maryland Heights, MO
$200 per table of 8 Sponsored By
Benefitting Greater St. Louis Restaurant Association Education Foundation
ACF Chefs de Cuisine Association Education Foundation
PLEASE CONTACT Barb Hergenroether | Missouri Restaurant Association 1810 Craig Road, Ste. 225 | St. Louis, MO 63146 (314) 576-2777 | Fax: (314) 576-2999 BHergenroether@MoRestaurants.org
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Culligan Commercial. A Difference You Can Taste. Ask us how you can lower operating costs by as much as 30% and save 25-30% on detergent & chemical costs.
Culligan of Greater Kansas City 800-478-3454 www.culligankansascity.com
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With sous vide, your work becomes more profitable.
Cooking under vacuum makes your working processes easier to plan, and you can cook with less time pressure and without risk.
Ken Rumney Compact Sales Representative 800.827.6853 816.313.7921 Ken.Rumney@multivac.com MV 127
C 200
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LArgest LOCALLy grOwn PrOduCe suPPLier in tHe Midwest distribution & delivery servicing Missouri, Kansas, iowa & nebraska Full selection of Broadline items wide Variety of specialty Produce grande Cheese & stanislaus sauces Full Fresh Cut division; Cool Creations On-site
816-241-4425 • www.ccproduce.net 1100 Atlantic Ave., Kansas City, MO 64116 • nickc@ccproduce.net
Official Produce supplier of the Kansas City royals
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Proud of the company we keep To learn more, contact Ken Tow 314.452.6453 or ken.tow@e-hps.com heartlandpaymentsystems.com All logos and trademarks are property of their respective owners
Š 2016 Heartland Payment Systems, Inc.
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What to Consider Before Your Child Works in Your Restaurant By Bret Curtis, CPA, JD, LLM Mize Houser & Company, P.A.
Owning a business comes with challenges including staffing or needing help with a special project. Rather than turning to a temp agency, you may consider drafting one of your children to fill a temporary gap or take a project off your hands . . . while enjoying certain tax breaks! Before your kids work for you after school or on a school break, there are a few things you need to consider: Set expectations with your child. Before bringing your child into your restaurant, be sure to clarify the job requirements. If your child has a busy extracurricular schedule at school, be realistic about the number of hours he or she can give to your restaurant. The good news is that you can be more flexible with your child’s schedule than your employees. Be clear on the number of work hours you’re expecting them to work. Do you have uniform or dress requirements for the job? Your idea of what is appropriate for your restaurant might be different than your child’s. What is your restaurant’s culture? Do you have older, conservative or younger, more contemporary customers? Be sure your child is following the same policies as are your employees. Your child has to be a bona fide employee. The work your child is going to do has to be necessary and ordinary for your business, whether that’s designing menus, taking phone or online reservations, hostess duties at the front of the house, or washing dishes. Working in the family business is a terrific learning opportunity. If you have dreams of passing the family
restaurant to the next generation, having your child work with you is a great way to gauge not only their interest in the business, but whether or not they are capable of running it. From allowance to a paycheck. How are you going to compensate your child? If you’re not familiar with child labor laws, it will behoove you to brush up on the laws and requirements. You should also pay the market rate for whatever job your child is assigned to do and pay them on a regular schedule. Don’t forget to document in writing the precise work that’s done and hours worked. Paying Social Security. If your business is operated as a sole proprietorship, you will be exempt from paying Social Security taxes for your child if he or she is under 18. If you operate your business under another structure, you may have to pay Social Security on the wages (ask your CPA for guidance). Enjoy a tax break. Your child can use his or her standard deduction to shelter up to $6,300 in wages from federal income taxes in 2016, meaning they may owe absolutely no federal taxes under this arrangement. A thrifty child would contribute the earned income to a Roth IRA where it can grow to a larger sum for retirement. Your side of the equation is also excellent. First, you get a Schedule C business deduction (Schedule E if you run a husband-wife partnership) for money you might have just handed over to your child anyway. The write-off reduces both your federal taxable income and self-employment income, thus usually reducing both income and selfemployment taxes. Your adjusted gross income is lowered too. That means less chance of all those unfavorable phase out rules biting you in the pocketbook. Always be sure to check with your tax advisor to see how this technique impacts your personal tax situation. Winter 2016 | 25
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Your Authority In Point-Of-Sale Excellence
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MRA Riddle MRA will send a $50 gift certificate to the member restaurant of your choice to the first reader who provides the correct answer via email to bbonney@ morestaurants.org. If one-half of 24 were 8, what would one-third of 18 be? SER THE VING ST AREA . LOUIS SIN 199 CE 8
Congratulations to MRA member Ericka Cooper of Paris Brothers Specialty Foods who provided the first correct answer to the last riddle. Archie recently returned from a trip. Today is Friday. Archie returned four days before the day after the day before tomorrow. On what day did Archie return?
WWW.PYROTECH-INC.COM
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Answer: Archie returned on Tuesday. The day before tomorrow is today. The day after that is Saturday. Four days before Saturday is Tuesday.
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I N S P I R E D
L O C A L F O O D C U L T U R E
feast delivers your culinary message to food lovers and industry insiders across the state of missouri FOR INFORMATION, CONTACT ANGIE HENSHAW AT 314.475.1298 OR AHENSHAW@FEASTMAGAZINE.COM
FEASTMAGAZINE.COM
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Missouri State University Advancing Hospitality Industry Education By Abigale Ehlers, MS, CHE
“I graduated from Missouri State University’s hospitality program.” Chances are, if you are in the food and beverage industry, you’ve heard these words from an employee, a manager, a business owner, a job applicant, or perhaps you’ve spoken these words yourself. Since 1987, Missouri State University has been graduating young professionals from the Hospitality and Restaurant Administration (HRA) department. To date, over 1,900 students have graduated from the program. Currently, the HRA department ranks 9th in the number of degrees awarded at the University. Exciting changes are occurring for the HRA department. Along with the Bachelor of Science degree and Bachelor of Applied Science (AAS), the department now offers graduate coursework opportunities. Students may elect to complete a hospitality emphasis in either the Master of Science in Administrative Studies or the Master of Business Administration degree programs. Additionally, the department will begin offering a Hospitality Graduate Certificate in the fall of 2016 for those working professionals who may not have the time to commit to a full masters degree program. Our dual credit enrollment continues to grow allowing high school students to earn hospitality college credit while still in high school. These partnering schools are following the ProStart® curriculum. ProStart is a two-year high school Culinary Arts and Restaurant Management program developed by the National Restaurant Association Educational Foundation and administered in Missouri by the MRAEF, a 501(c)(3) organization established to support the educational objectives of the Missouri Restaurant Association, and the Missouri Department of Elementary and Secondary Education, Division of Family Consumer Sciences and Human Services. Earlier this year, Missouri State University and the HRA department received a Missouri Innovation Campus grant through USA Funds. The grant helped establish the Hospitality Leadership Academy, a partnership with Missouri State
Pummill Hall Exterior
Pummill Hall Training Kitchen
The program provides a streamlined pathway to degree completion and reduces the cost of obtaining a bachelor’s degree.
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Hospitality And Restaurant Administration
University, Ozarks Technical Community College, Springfield Hotel Lodging Association, Springfield/Branson Chapter of the Missouri Restaurant Association and select southwest Missouri high schools. The program is designed to increase the number of academically and professionally prepared graduates to service the hospitality industry. The program provides a streamlined pathway to degree completion and reduces the cost of obtaining a bachelor’s degree. Thanks to the current University and academic leadership the HRA department is now housed in a new facility. In August 2015, the department moved to the newly renovated, state-of-the-art Pummill Hall on main campus. Built in 1958, Pummill had been an unappreciated and underutilized building for many years. Following a complete architectural renovation the building has found new life. The 3rd and 4th floors now serve as the dedicated home of the HRA department.
Carrie’s Cafe - Student operated cafe in Pummill Hall
Missouri State University’s President Clif Smart challenged the department to become a signature program for the university and grow the number of students enrolled in the major.
Originally designed by nationally recognized architect, Richard Stahl, Pummill Hall was one of the first buildings to utilize a glass curtain wall system. Floor to ceiling windows on the north and south sides of the building provide light and beauty throughout the building. The complete architectural remodel was handled by Springfield architectural firm Dake Wells who brought a modern, student friendly focus to their design. The new facility provides students with a 25 seat dedicated computer lab, 6 “smart” classrooms, 2 training kitchens, a 68 seat student operated café space, and a student study lounge. At the recent “Pummill Hall Launch Party”, held for champions of the HRA department, Missouri State University’s President Clif Smart challenged the department to become a signature program for the university and grow the number of students enrolled in the major. With the new facility, support from academic and industry leadership, as well as a faculty and staff committed to student success you will doubtlessly hear many more people proudly saying “I’m a Hospitality grad from Missouri State.”
Pummill Hall Launch Party September 2015 Left to right: President Clif Smart, Stephanie Hein - HRA Department Head, Matt Krupa - HRA Board of Advisors Chair
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From generation to generation, our family farmers and ranchers remain dedicated to raising delicious, nutritious beef. We’re part of a community – from pasture to plate – that’s dedicated to excellence. Passionate about the details. Inspired by tradition. And we’re proud to help you bring your best to the table every day.
Congratulations, Missouri Restaurant Association, on leading the Missouri culinary community, and beyond, for 100 years!
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WHEN THE UNEXPECTED HAPPENS, EXPECT NOTHING BUT THE BEST Restaurants’ #1 Resource for Disaster Restoration When a disaster strikes, you want your restaurant back in business as quickly as possible. At ServiceMaster Recovery Management, we have the experience with specialized services vital to restaurant restoration to make that happen. Call us today to get a FREE pre-loss plan for your restaurant!
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Don’t take the Don’t take therisk riskthat thatyour yourinsurance insurance company will company willleave leaveyou youhanging hangingwhen whenyou you need them the need them themost. most.InInthe thefood foodand and beverage industry beverage industryyou youneed needan aninsurance insurance specialist from specialist fromIllinois IllinoisCasualty CasualtyCompany Company your side.We Weoffer offercustom-tailored custom-tailored onon your side. protection businesseslike likeyours, yours,and and protection forforbusinesses there aggressivelydefend defendyour your willwill bebe there totoaggressively innocence anyunwarranted unwarrantedclaims. claims. innocence ininany We’re there whenyou youneed needus. us. We’re there when
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