At Your Service, Summer 2021 by NC Restaurant & Lodging Association

AT YOUR

Official Magazine of North Carolina Restaurant & Lodging Association

SERVICE +

PLUS Tip Pooling 101

Future of Hospitality

Meet three NC hospitality trailblazers

Summer Legislative Update

Inside the fight for North Carolina’s hospitality industry

Ready for Our Comeback Summer 2021, Vol. 10, Issue 3 NCRLA.org

The NCRLA Chef Showdown Is Back! Monday, August 9 6 p.m. – 8:30 p.m.

The Angus Barn’s Bay 7 Durham, NC

Mark your calendar for North Carolina’s premier culinary and cocktail competition. Join us in person as we name the NCRLA Chef of the Year, NCRLA Pastry Chef of the Year, and NCRLA Distillery & Mixologist of the Year.

CHEF

OF THE YEAR

PASTRY CHEF

OF THE YEAR

DISTILLERY & MIXOLOGIST OF THE YEAR

Follow the action @ncrlachefshowdown on Facebook, Twitter, and Instagram!

Interested in Sponsorship Opportunities? Contact Laura Hayden at lhayden@ncrla.org for more details. Learn more at NCChefShowdown.com

Contents

NCRLA BOARD OF DIRECTORS EXECUTIVE COMMITTEE:

NISHITH “NISH” PATEL, CHAIR Beacon IMG, Inc AMBER MOSHAKOS, VICE CHAIR LM Restaurants

BURNEY JENNINGS, TREASURER Biscuitville Fresh Southern TOM PASHLEY, SECRETARY Pinehurst Resort STEVE THANHAUSER, IMMEDIATE PAST CHAIR Angus Barn Ltd

Features

JIM BELEY, TRAVEL & TOURISM BOARD LIAISON The Umstead Hotel & Spa LANCE TRENARY, NRA LIAISON Golden Corral Corporation LYNN MINGES, PRESIDENT & CEO FRANK GRAY, GENERAL COUNSEL AND LOBBYIST

BOARD MEMBERS:

NCRLA Hosts First In-Person Events

Summer Legislative Update

Prepping for the New Food Code

Highlights from Rally in Raleigh and the Future of Hospitality Golf Tournament

Latest news and insights from the North Carolina General Assembly

Is your business ready for the food code changes?

Navigating Tip Pooling

Cover Story: Ready for Our Comeback

Tactics for Utilizing Brand Influencers

Helpful tip pooling guidance from Cranfill Sumner LLP

Meet three of hospitality’s trailblazers

How to maximize your social media reach

SHERI ERHART CMC Hotels

DAN FREELAND Concord Hospitality Enterprises PHIL FRIEDMAN Salsarita’s Fresh Cantina TIM GOSS Firehouse Subs DORIS HUEBNER F & D Huebner, LLC RUSS JONES Davidson & Jones SCOTT MAITLAND Top of the Hill Restaurant, Brewery & Distillery AKSHAT PATEL Comfort Inn / Sleep Inn — Choice Hotels SHAUNAK PATEL Parks Hospitality Group GONZA SALAMANCA Gonza Tacos Y Tequila

In Every Issue 5

Welcome New Members Welcome to our latest members from across North Carolina

Letter from NCRLA Chair and NCRLA President & CEO Returning to Business

Upcoming NCRLA Events Mark your calendar and plan to join us

TOM SASSER Burke Hospitality Group IAN SAUER Summit Hospitality Group, LTD BILLY SEWELL Platinum Corral, LLC

Benefits of Membership How NCRLA gives your company a competitive advantage

DOUG STAFFORD Griffin Stafford Hospitality, LLC

JOHN WINKENWERDER South Asheville Hotel Associates, LLC

CHARLES THOMPSON The Inn on Biltmore Estate

Member Moments Philanthropic efforts from across North Carolina’s hospitality industry

GOVERNMENT AFFAIRS CO-CHAIRS:

JASON SMITH 18 Restaurant Group

A la Carte A sampler of hospitality-related news stories

VINAY PATEL SREE Hotels, LLC

ALLIED BOARD MEMBERS: PATRICK AIELLO Ecolab ANDY CLARK US Foods

At Your Service | Summer 2021

Welcome New NCRLA Members Together, we can protect and advance the hospitality industry. Go to NCRLA.org/membership to learn more about NCRLA and to download a membership application.

Allied

Restaurants

AD-LINK MKTG INC. Capsur Business Solutions ERC Today Greasecycle Great Eastern Sun MarginEdge Oasis/A Paychex Company Smithfield Culinary Upshift

Aviator Bar & Bistro, Kitty Hawk Blue Moon Beach Grill, Nags Head Boo Radley’s Tavern, Inc, Greensboro Boxyard, RTP Cadillac Ranch, Leland City Cellar, Lincolnton Crawford and Son Restaurant, Raleigh The Dunes, Nags Head Fine & Fettle, Charlotte Heavenly Fudge Shoppe, Bryson City Kelly’s Catering, Nags Head Khan’s Mongolian Grill, Kill Devil Hills La Fogata, Kitty Hawk The Little Cake Company, Winston-Salem Lost Colony Brewery, Manteo

Lodging Hampton Inn & Suites, Raleigh Midtown Homewood Suites, Charlotte—Ballantyne KBS Management Corporation, Asheville The Mayton, Cary

Mahi Mahi Island Grill, Manteo Midpoint, Highlands NC Coast Grill & Bar, Duck Noodles & Company, Raleigh Pine State Public House, Raleigh Red Zone Sports Bar and Grill, Randleman Rundown Cafe, Kitty Hawk Saints & Scholars Pub, Raleigh Sanya Sushi Bistro, Kitty Hawk The Seahorse Eats & Drinks, Oak Island Shipwrecks Taphouse & Grill, Nags Head Single Fin, Kill Devil Hills Sun Dogs, Corolla TEETS, Raleigh Thai Room, Kill Devil Hills Wine & Brine Oyster Bar, Kitty Hawk

Thank You to Our Corporate Partners

Corporate Partners support the endeavors of the North Carolina Restaurant & Lodging Association in a variety of ways, including event sponsorships, advertising, and more. NCRLA thanks those who help make the association strong.

DIAMOND

TITANIUM

PLATINUM

GOLD

SILVER

View our Corporate Partnership opportunities at NCRLA.org Summer 2021 | At Your Service

At Your Service Volume 10, Issue 3 An official publication of the NC Restaurant & Lodging Association © 2021 STAFF President & CEO LYNN D. MINGES Chief Operating Officer/ Membership Development/ Health and Safety Regulations ALYSSA BARKLEY, IOM

Returning to Business What a difference a year makes. Last summer, we were in the middle of the worst economic disaster North Carolina’s hospitality industry has ever experienced. Restrictions, curfews, and mandates were in place, vaccinations had not yet arrived, and the public was reluctant to dine out and travel. Hospitality businesses across the state shuttered. Since then, we have been able to reopen, and business has been steadily picking up. Diners are once again visiting restaurants and travelers are booking hotel stays. Folks are remembering how good it feels to gather with family and friends around the table at their favorite restaurant or to get away from it all at their favorite hotel. These are the places where memories are made, and it’s time to make some new memories! Our resiliency was tested as we adjusted to many challenges presented by the pandemic. One current challenge is that restaurants, hotels, and bars cannot rebuild their staffs quickly enough to keep pace As business continues with rising consumer demand. A nationwide worker shortage is forcing many to limit their hours of to build, together we operation. Unfortunately, the struggle to find workers will look toward a bright isn’t likely to go away any time soon. Many predict future for North Carolina’s that staffing shortages will be an ongoing issue for our industry. However, the changing workforce presents an hospitality industry. opportunity for us to rethink labor issues in a way we never have before. NCRLA is working closely with our partners at the National Restaurant Association and the American Hotel & Lodging Association to develop both short-term and long-term workforce solutions for hospitality businesses. We are also continuing to push lawmakers at the national and state levels for additional economic support that will be vital to rebuilding our industry. Whatever challenges the coming months may bring, NCRLA will be working hard to advocate for you. As business continues to build, together we will look toward a bright future for North Carolina’s hospitality industry.

Chief Strategy & Communications Officer CHRIS MACKEY Director of Government Affairs ISABEL VILLA-GARCIA Database Manager & Membership Coordinator NATALIE COX Special Events & Project Manager LAURA HAYDEN General Counsel & Lobbyist FRANK GRAY COVID-19 Program Manager SHANNON MCGUIRE COVID-19 Communications Manager BETH O’CONNELL Administrative Manager MARY ARNOLD Editor SHANNON FARLOW Designer TRACIE EUBANK BUSINESS OFFICE 222 North Person Street, Suite 210 Raleigh, NC 27601 Phone: (919) 844-0098 Website: NCRLA.org For advertising and sponsorship inquiries, contact Special Events & Project Manager Laura Hayden at lhayden@ncrla.org. Published by Farlow+Co, LLC

Lynn Minges NCRLA President & CEO 6

At Your Service | Summer 2021

Nish Patel NCRLA Board Chair

/NCRLA @NCRLA Or search North Carolina Restaurant & Lodging Association

2021 EVENTS Network with hospitality industry leaders at one of NCRLA’s upcoming events. Learn more at NCRLA.org

August 9 NCRLA Chef Showdown Presented by Got To Be NC Bay 7 324 Blackwell St #700 Durham, NC 6 p.m. – 8:30 p.m.

August 25 Charlotte Chapter Meeting Hyatt Centric SouthPark Charlotte 3100 Apex Drive Charlotte, NC 3:30 p.m. – 5 p.m.

October 25 Manteo to Murphy PAC Fundraiser Angus Barn 9401 Glenwood Ave Raleigh, NC 5:30 p.m. – 9 p.m.

2021 NCRLA CHEF SHOWDOWN COMPETITION HEATS UP North Carolina’s top culinary talents are cooking to win the coveted titles of NCRLA Chef of the Year and NCRLA Pastry Chef of the Year. These six creative mixologists representing North Carolina distilleries will compete for People’s Choice honors and the title of 2021 NCRLA Mixologist & Distillery of the Year: Colleen Hughes representing Sutler’s Spirits Co. | Winston-Salem David Schmidt representing The Hackney Distillery | Washington Larisa Yanicak representing Mayberry Distillery | Mount Airy Max Barwick representing Fainting Goat Distillery | Greensboro

November 10 Charlotte Chapter Meeting Location TBD 10 a.m. – 11 a.m.

November 11 Asheville Chapter Meeting Location TBD 2 p.m. – 3 p.m.

COMPETING CHEFS: Abby Tetterton, Timberlake’s Restaurant at Chetola Mountain Resort | Boone A. Marie Barefield, Sweet Spot Studio | Charlotte Amanda Ezzell, Ezzell’s Catering | Warsaw Andres Prussing, Charlotte Marriott City Center | Charlotte Ashleigh Fleming, Blue Jay Bistro | Littleton Chayil Johnson, Community Matters Café | Charlotte Gerald Hawkins Jr., Gaston Country Club | Gastonia James Patterson, McConnell Golf | Wilmington Kyle Fletcher, Craft Concepts Kitchen | Cary Matthew Martin, Freshlist | Charlotte Matthew Rivers, Timberlake’s Restaurant at Chetola Mountain Resort | Boone Myles Scaglione, Heirloom Restaurant | Belmont Phillip Platoni, Southminster Senior Living | Charlotte Richard Carter, Catering Works/North Carolina Museum of Art | Raleigh Richard Miller, Five Loaves Catering | Winston-Salem Ryan Lawton, The StateView Hotel | Raleigh Saif Rahman, Vidrio | Raleigh Sam Hart, Counter | Charlotte

MJ Weber representing Durham Distillery | Durham

Savanna Brodar, Kimpton Tryon Park Hotel | Charlotte

Rhea Buck representing Muddy River Distillery | Belmont

Tiesha Whittaker, Buttermilk Boutique | Clayton

Join us for the Grand Finale! Monday, August 9, 6 p.m. – 8:30 p.m. The Angus Barn’s Bay 7, Durham, NC Open to the public! Limited tickets are available at NCChefShowdown.com Summer 2021 | At Your Service

NCRLA Hosts First In-Person Legislative Reception of 2021 On Wednesday, May 26, NCRLA hosted its annual Rally in Raleigh legislative reception. This event marked the first legislative reception hosted in person as we emerge from the pandemic. Legislators from across the state attended, including Speaker Tim Moore and many in House and Senate leadership. Labor shortages, PPP deductibility, the $300 million hospitality

grant program, and outdoor dining extensions were some of the pressing issues that NCRLA members were able to discuss with their elected officials. Thank you to our event sponsors, the Merrimon-Wynne House, Rocky Top Catering, and Alsco for the generous support of this event.

NCRLA Golf Tournament Raises Nearly $70K for Hospitality Industry The sight of hospitality leaders teeing off at the Future of Hospitality Golf Tournament was one of the clearest signs yet that life is finally returning to normal. On April 19, 150 golfers, volunteers, and vendors came together at Prestonwood Country Club in Cary to raise nearly $70,000 for the NCRLA Foundation. Participating golfers enjoyed exciting raffle prizes, a great variety of food and beverage donated by industry peers, and interactive contests along the course. Your generous donations and participation made this year’s tournament a great success. The future of hospitality was the day’s biggest winner, with all of the proceeds benefitting the NCRLA Foundation, dedicated to rebuilding our NC hospitality workforce. A special thank you to Presenting Sponsor US Foods! Thank you to all of our sponsors, food and beverage donors, hardworking volunteers, and each and every golfer who joined us. Together, we chipped in for the future of North Carolina’s hospitality industry. 8

At Your Service | Summer 2021

First Place: Alsco Rick Ethridge, Eric Cua, Chris Strickland, and Freddy Morton

Second Place: Insurance People Cristina Piascik, Steve Griffin, Bryan Simpson, and Becca Griffin

Third Place: FreshPoint/Old East Tavern Scott Redden, Lew Hendricks, Matt Shytle, and Chris Rogers

Summer Legislative Update AND

Blueprint for Revival REQUEST FOR ADDITIONAL ARPA FUNDS FOR HOSPITALITY INDUSTRY

On June 17, NCRLA released an addendum to our Blueprint for Revival as a way to address the dramatic needs around the labor shortages we are seeing across the state and to update the loss of revenue and jobs to the industry. The American Rescue Plan Act (ARPA): Opportunities for Hospitality Industry Relief and Recovery asks that the budgets and appropriation of federal ARPA funds include $300 million direct grant relief for North Carolina’s restaurants, hotels, and taverns; $5.24 million for a hospitality-specific workforce analysis and recruitment initiative; $2 million for a hospitality training and certification program; and $400,000 for ProStart/Hospitality & Tourism Management Program. The state has never had this much money available

to spend, both in state revenue surplus along with the over $5 billion in ARPA federal COVID relief funding. NCRLA is fighting for a large piece of those funds to go to the hospitality industry, which has been uniquely devastated by the pandemic.

ASSISTANCE FOR NC HOSPITALITY BUSINESSES INCLUDED IN GOVERNOR’S RECOMMENDED BUDGET AND IN SENATE BUDGET PROPOSAL NCRLA’s efforts to advocate for the needs of North Carolina’s hospitality industry, which were outlined in our Blueprint for Revival and for which we have been fighting all year, have led to positive signs of relief for our industry. In April, Senator Summer 2021 | At Your Service

Chuck Edwards filed Senate Bill 715: Hospitality Business Assistance, allocating $300 million for direct grants to the hospitality industry. On May 19, when Gov. Cooper outlined his recommendations for investing federal American Recovery Plan funds in North Carolina, NCRLA was pleased to hear that he included this $300 million grant program in his plan. Then, when the Senate released its budget proposal in June, it included $500 million in small business grants. Although not specific to the hospitality industry, eligibility requirements ensure that those eligible are primarily businesses in hospitality. The Senate’s budget proposal also included several business grant programs, workforce development initiatives, and funding for tourism promotion. As the House works on its budget, NCRLA continues to fight for support for North Carolina’s hospitality industry and to advocate for full deductibility of business expenses paid through PPP funds.

to return to the Senate. The House and Senate negotiated an agreement that included rejecting the $300/week supplemental unemployment payment, appropriating $250 million for childcare subsidies, and strengthening of the work search requirements. As expected, Gov. Cooper vetoed the legislation.

WORKFORCE DEVELOPMENT FUNDS

Creating hospitality workforce development funds would support the continuation of Count On Me NC training for the hospitality industry and funding for work-based learning and national credentialing for high school students enrolled in industry-sponsored hospitality programs. At the request of NCRLA, Senator Lazzara filed Senate Bill 344: Funds/Workforce Development Hospitality, granting $400,000 in funding for the biennium for the ProStart program. The grant will help rebuild our North Carolina hospitality workforce by providing nationally certified programs in career and technical education focused on developing critical skills necessary for students to succeed in the hospitality sector. NCRLA continues to advocate for this funding through the ongoing budget process.

PAYCHECK PROTECTION PROGRAM (PPP) EXPENSE DEDUCTIBILITY

WORKER SHORTAGE SOLUTIONS

NCRLA will continue to advocate for comprehensive long- and short-term solutions to help the hospitality industry recover, as well as to engage in finding creative solutions to the workforce issues faced by the hospitality industry. House Bill 128: An Act to Reemploy NC’s Workforce, sponsored by Sen. Chuck Edwards (R-Henderson), would give bonuses to North Carolina’s unemployment benefit recipients who get a job soon. The legislation would help businesses struggling to fill vacancies, as well as help residents return to work. It passed the Senate to return to the House. The U.S. Department of Labor would have to authorize the state to use supplemental federal unemployment benefits for this purpose. Senate Bill 116: Putting North Carolina Back to Work Act represents a different approach to the labor crisis offered by the House. It does not favor bonuses, but instead proposes to reject the $300/week supplemental unemployment payment from the federal government. To address concerns about available childcare, an amendment to the bill includes $250 million from federal American Rescue Plan funds to support childcare for low- and moderate-income families. This bill passed the House 10 At Your Service | Summer 2021

Establishing PPP expense deductibility would enable the NC state tax code to mirror the federal tax code. NCRLA has been lobbying the legislature on this issue for months and has activated an all-member call to action asking for outreach to elected officials. Lack of action by the legislature would cost North Carolina businesses $600 million in unexpected state taxes. House Bill 334: Temp Align PPP Treatment to Federal Treatment was changed by the Senate into a major tax reduction bill—reducing state income tax rates and phasing out the corporate franchise tax. In lieu of deductibility, the Senate created a grant program for those businesses that previously received a COVID-related grant or loan, including PPP. Grants would be capped at $18,500 per business. This substitute version of HB 334 passed the Senate to go back to the House. Meanwhile, the House reiterated its support for full PPP business expense deduction by incorporating the same provisions it had previously passed into Senate Bill 116: Putting North Carolina Back to Work Act. SB 116 goes back to the Senate. The Senate included their grant proposal in their budget, and now that the tax filing date has passed, it is expected that this item will be negotiated between the House and Senate as part of the budget process. NCRLA will be working with leaders in both chambers to continue to advocate for PPP business expense deduction. This is a critical piece of our Blueprint for Revival.

INCREASED FUNDING FOR TOURISM PROMOTION

Increasing promotional funding for tourism at the state and local levels would benefit North Carolina’s restaurants, bars, and hotels. $3 million was appropriated in the legislature’s first COVID relief bill in 2021. The Senate included an additional $30 million to VisitNC in their budget proposal to promote tourism to North Carolina. NCRLA will continue to advocate for this funding through the budget process.

OUTDOOR DINING AND SOCIAL DISTRICTS

NCRLA successfully negotiated outdoor dining through Executive Order. After COVID-19 mandates and restrictions were lifted, the ABC Commission confirmed to NCRLA that the Temporary Extension of Premises policy remains in effect until further notice. We are thrilled that hospitality businesses across the state have this flexibility. We will also continue to advocate for House Bill 781: Bring Business Back to Downtown, which would make outdoor dining extensions permanent and create new social districts that municipalities could adopt. These social districts would allow on-premise permittees parity with bar carts during street closures and festivals as it would allow patrons to purchase mixed beverages and freely walk through the designated social district with their beverage. Businesses requesting to temporarily extend their licensed premises should consult with their local law enforcement and/or ALE District to seek approval/permission to use the area.

and Senate on whether this is an allowable use of the funds. Leadership has given us assurances that the bill will remain a waiver of the ABC fees. A fiscal note for the bill shows the potential cost of this legislation—and savings for the hospitality industry—of $14.2 million. NCRLA has been fighting for this waiver as much-needed financial assistance to every permittee across the state and will continue to track this issue until the final bill passes. This policy is a major component of our Blueprint for Revival.

PROPERTY TAX PAYMENT FLEXIBILITY AND PROPERTY TAX REVALUATION

Hospitality businesses that incurred significant revenue losses during the pandemic would receive property tax payment flexibility. Commercial properties that experienced diminished real estate value due to COVID-19 would be allowed to request a property tax revaluation ahead of the normal revaluation schedule in NCRLA-initiated House Bill 119: Property Tax Relief for COVID Affected Businesses, which addresses both of these property tax issues. Over 40 bipartisan members of the North Carolina House of Representatives, including Speaker Tim Moore, signed on as co-sponsors in February. NCRLA continues to work on the passage of HB 119, which would provide property tax relief and an opportunity for business owners adversely impacted by COVID-19 to request revaluation from their local county tax office. Unfortunately, due to major opposition by the North Carolina Association of County Commissioners, we do not expect movement on this legislation.

HOTEL SAFETY ACT ABC PERMIT EXTENSION

House Bill 4, which was signed into law on Feb. 25 by Governor Cooper, represents a significant step toward the goal of suspending annual fees for renewal applications and registration fees for on-premise permittees, including restaurants, bars, and hotels. No ABC fees will be due until 90 days after the last of the COVID-related restrictions were lifted from these businesses on May 14, 2021. NCRLA initiated House Bill 73: Temporarily Waive ABC Permit Fees. The bill has passed the House and through the Senate. However, the Senate made major changes to the bill and no longer waives the permit fees. The bill went back to the House where they did not “concur,” so now the House and Senate will negotiate on this bill to a point where both chambers can agree. The Senate is insistent that the money to waive the fees comes from federal COVID relief funds and not from state funding. This has led to a dispute between the House

House Bill 352: Hotel Safety Issues was introduced at the start of this legislative session to address an ongoing ambiguity in the law as to when a hotel guest becomes a tenant. Industry practice had been to draw the line at 90 days when occupancy taxes were no longer remitted. This issue was exacerbated last summer when Attorney General Josh Stein’s office sent a letter to hoteliers across the state essentially stating that guests could not be removed. NCRLA worked hard for months to advocate for clarity and a change in position with the Attorney General’s office. Although his office made some clarifications to the original letter, it was clear that a change in the statute to clarify when a guest becomes a tenant was necessary. HB 352 has passed through the House and is waiting to be heard in the Senate. The language is also part of House Bill 366: Regulatory Reform Act, along with a number of other unrelated provisions. HB 336 has gone through the House and two committees in the Senate and is waiting a final vote in the Senate as this publication went to press. Summer 2021 | At Your Service

Member Update:

2017 FDA Food Code Adoption The US Food and Drug Administration (FDA) released the 2017 Food Code on February 12, 2018. Over the following months, NCRLA pushed North Carolina lawmakers to adopt the updated code, which reduces regulatory burdens on restaurants and allows for operations to continue in emergency situations. Governor Cooper signed it into law in July 2019. Then the COVID-19 pandemic halted everything. The process of adopting the 2017 FDA Food Code resumed this year, and a public comment period opened in June. NCRLA shared details from the state Food and Lodging Program with members and then gathered their feedback. The current goal is for the state of North Carolina to begin enforcing the updated code in October 2021.

INDUSTRY FRIENDLY UPDATES

Emergency Plans—In the past, when a fire, flood, or other emergency situation interrupted water or electrical service, food service establishments were required to immediately discontinue operations. Under the 2017 code, operators will be allowed to continue to serve guests provided they establish an emergency plan that is pre-approved by the local inspection team. Hand Contact—The current code requires employees to wash their hands after every glove change, even if they continue the same function. The new code will only require hand washing between different procedures.

12 At Your Service | Summer 2021

Reduced Oxygen Packaging (ROP)/Vacuum Packaging—In the past, all ROP plans required applying for a variance, which can be costly and time-consuming. The new code will exempt from the variance requirement any ROP processes that require less than 48 hours to complete. In addition, ROP cook/chill and sous vide products chilled to 41 degrees can be held up to seven days (currently only 72 hours). Time as a Public Health Control—The 2017 code simplifies this process for certain foods by allowing it to begin at 70 degrees and eliminating the cooling step. Certified Food Protection Manager Certification (ServSafe)—The 2017 FDA Food Code requires the Person In Charge (PIC) to have the Certified Food Protection Manager Certification (ServSafe), but it also allows for the PIC to verbally demonstrate knowledge through conversation during inspection. NC has approved variances for some businesses making this request. Cleaning Biohazard Spills—Procedures for proper cleanup after a biohazard spill (bodily fluids such as vomit, blood, and diarrhea) are clarified under the 2017 FDA Food Code.

LEARN MORE ABOUT THE 2017 FDA FOOD CODE AT NCRLA.ORG.

TIP POOLING 101 By Attorney Zachary Anstett, Cranfill Sumner LLP

“Tip pooling” is not a new concept for employers in the hospitality industry. While it’s designed to fairly compensate employees who do not outright receive the federal minimum wage and do not directly collect tips from customers, tip pooling can raise a lot of questions for employers and employees. Here’s how to navigate tip pooling in North Carolina. THE FAIR LABOR STANDARDS ACT AND TIP CREDITS

The Fair Labor Standards Act (FLSA) primarily requires minimum wage for employees and governs when they are entitled to overtime pay. Under the FLSA, an employer can take advantage of a “tip credit” by paying tipped employees (1) a cash wage of $2.13 per hour plus (2) an additional amount in tips that brings the total wage to the federal minimum wage. For an employer to

use the tip credit to help meet the minimum wage requirement for employees, the employee must be informed of this fact and the employee must also be permitted to keep tips, unless the employee is part of a tip pool with other employees who regularly receive tips. To keep a tip pool valid, the employer needs to make sure that only employees who regularly receive tips participate.

TIP POOLING

Whether or not tip pooling is permissible depends on whether the employer utilizes the tip credit. If an employer utilizes the tip credit to pay below minimum wage, that employer may only allow tip pooling for those employees who customarily and regularly receive tips. Such employees have regular interaction with the customer and work in an industry where undesignated tips are common (waiters/waitresses, bellhops, bartenders, etc.). On the other hand, employers that do not take advantage of the tip credit may establish a tip pool calling for tips to be shared between customarily tipped employees and those who are not customarily tipped, such as kitchen personnel. Importantly, under no circumstances may employers retain any portion of tips. Tips belong to employees—period. » Summer 2021 | At Your Service

IMPORTANT DEFINITIONS APPLICABLE MINIMUM WAGE: $7.25 per hour of work performed

TIP: A sum of money presented

by a customer as a gift or gratuity in recognition of some service performed when both the decision to pay the gratuity and the amount of the gratuity are determined solely by the customer.

For example, in North Carolina, those 20% gratuities that are automatically added to a party of six or more persons do not qualify as tips under the FLSA. Thus, such gratuities could be pooled and shared with typically non-tipped employees.

TIPPED EMPLOYEE:

Any employee engaged in an occupation in which he or she customarily and regularly receives more than $30 a month in tips.

Zachary Anstett is an attorney at Cranfill Sumner LLP. Zachary works with the employment law, business law, and municipalities and public entities sections. He also serves on the Cranfill Sumner LLP COVID-19 Response Team. CSHLaw.com 14 At Your Service | Summer 2021

Ready for Our

Comeback

After months of reinventing business models, strategizing over safety protocols, and wondering what the next governor’s press conference would bring, hospitality businesses across the state are thankful to be open and to see business coming back. Occupancy rates and revenue per available room are steadily rising as hotels welcome tourists and business travelers. Restaurant dining rooms are once again filling with the sounds of happy patrons. Along with this new activity, the memories of North Carolina’s booming hospitality industry are resurfacing, and these memories fuel a shared sentiment that we are ready for our comeback! While diners and hotel guests are returning, many hospitality workers are not. As shown in the chart below, from February 2020 to April 2020, the number of hospitality jobs in NC fell from 433,000 to 251,000. As of June 2021, the number of employed hospitality workers in NC has slowly climbed to 408,000. While we are narrowing the gap, we are still short of what is actually needed. Since the nationwide worker shortage is expected to continue, what can be done in the meantime to fill this gap? Looking further ahead, how do we ensure that our industry builds a strong workforce for tomorrow?

ACCOMMODATION & FOOD SERVICES JOBS (THOUSANDS)

SHORT-TERM FIXES

NC Hospitality Job Board—Launched by NCRLA in May, the first-ever NC Hospitality Job Board provides a one-stop shop for us to actively promote jobs across North Carolina to the displaced workers who reached out to us for relief through the NC Workers Relief Fund. The job board also gives businesses the opportunity to get double posts to Google jobs and integrates with ZipRecruiter, helping us to reach a broader audience. Through social media and digital media markets, NCRLA is actively promoting the career opportunities in the hospitality industry by linking back to the job board. Unemployment Insurance—Senate Bill 116: Putting North Carolina Back to Work would end the $300 per week supplement to the federal unemployment benefits, include $250 million in childcare subsidies, and strengthen work search requirements. The bill stipulates that an unemployed person must respond to a job interview request within 48 hours and attend the interview. Vetoed by Gov. Cooper, we do not expect that it will be overridden. However, when federal unemployment benefits in North Carolina end in September, this transition, combined with growing vaccination rates, a strong availability of jobs, and a rebounding economy, will provide a much-needed workforce boost.

LONG-TERM SOLUTIONS

Workforce Development—NCRLA is actively seeking federal funds through various channels to support an active campaign to help introduce potential job seekers to career opportunities in the hospitality industry. As a part of those efforts, NCRLA is continuing to meet with leaders at the NC Department of Public Instruction and the NC Community College System on curriculum and training opportunities to engage high school and college students in local communities. Summer 2021 | At Your Service

ProStart—Now, more than ever, ProStart is vital for engaging high school students and developing the best and brightest talent into tomorrow’s industry leaders. It is critical that we receive funding and use it wisely—the future of hospitality is at stake. By bringing industry and classroom together, ProStart gives students a platform to discover new interests and talents. We must use that platform wisely—to help spread the message about exciting, dynamic careers in hospitality. Immigration Reform and Temporary Visas—Another factor that has contributed to the workforce shortage is the challenge in getting immigrant and temporary workers to fill some of the jobs. NCRLA is continuing to work with policymakers to provide viable solutions for immigration reform, while also working to ease the process for guest workers to obtain temporary visas. ReToolNC—The Senate budget includes $20 million for the “ReToolNC” program, which contains several allocations that will boost community college efforts to prepare students for in-demand careers such as those in the hospitality industry. Approximately $5.2 million would help community colleges develop new programs in fields that “require significant start-up funds.” To attract more students to those workforce development programs, the Senate wants to spend $3 million per year on grants of up to $750 for each student “pursuing workforce credentials.” The bill also contains a $1.5 million allocation for childcare grants to help community college students who require childcare while pursuing their studies. ARPA Funds—NCRLA is pushing for the appropriation of federal ARPA funds to include $300 million in direct grant relief for North Carolina’s restaurants, hotels, and taverns. We are also fighting for $5.24 million for a hospitality-specific workforce analysis and recruitment initiative; $2 million for a hospitality training and certification program; and $400,000 to support a ProStart/Hospitality & Tourism Management Program.

The Future of NC Hospitality As we look to the future and the opportunities to rebuild, we wanted to pause to highlight the successes of three up-and-coming trailblazers who represent the future of hospitality right here in North Carolina. Meet Orlando, Simon, and Teresa.

Orlando Murphy

Two years ago, Orlando Murphy was 16 and just getting started in the ProStart program at Cary High School. He imagined that his personality might make him a good fit for a future in hospitality. ProStart, a nationwide, two-year course for high school students, develops tomorrow’s industry leaders with a curriculum that covers all facets of the restaurant and foodservice industry. By giving students a platform to discover new interests and by opening doors for fulfilling careers, ProStart inspires students to succeed and sets a high standard of excellence. Looking back, Orlando is thankful for the opportunity to gain experience that other people his age did not have. “ProStart has prepared me mentally and physically for a job in hospitality. We were able to get a lot of hands-on training from people who have either recently opened a business or chefs who have multiple staple restaurants in our area, such as Saltbox Seafood Joint,” Orlando said. Then he landed a paid apprenticeship with Rocky Top Catering through the program and now thrives in the fastpaced environment. When asked about recommending the ProStart program to other students interested in hospitality careers, Orlando’s reply 16 At Your Service | Summer 2021

was “Yes, absolutely!” For advice to other ProStart students, Orlando said, “Have patience and also trust the process. You’ll never know your real capability until you have the opportunity to gain experience from working under chefs and managers in hospitality.” After Orlando finished the ProStart program, Dean Ogan, owner of Rocky Top Catering, hired him as a permanent employee. He describes Orlando as “the shining example of how awesome this program can work.” Likewise, Orlando was excited about the opportunity to continue working in catering, an environment where every event is unique, every day is a change of scenery, and variety is built into the business. “It will always be different, and that’s a guarantee,” he said. For young people considering a career in hospitality, Orlando’s advice is, “Follow your heart. Make sure you always take opportunities to learn something new. Be open to change as this career field is always changing!”

Simon Harris

When Simon Harris was young, his parents sometimes had to work late. It was during these evenings that Simon cooked dinner for his family. He was comfortable in the kitchen from a young age and says

he spent “a large portion of his childhood cooking.” Somewhere along the line, he had the idea that he might want to open his own restaurant someday. Fast forward to when Simon was studying Parks, Recreation, and Tourism Management at North Carolina State University, with an internship being one of the degree requirements. Simon was paired with Jason Smith at Cantina 18, which he says has been “nothing short of fantastic.” He learned the ropes, successfully completed the internship, and stayed on. When a management position opened up, he applied and landed it. Now Simon says he wakes up excited to go to work and take on whatever challenges each day presents. Comfortable in both the front-of-the-house and the backof-the-house, Simon feels his degree helped prepare him for a career in hospitality. “The thing that I like the most about my job is the customers that I get to interact with on a daily basis. I love meeting new people, and half of this job is making new customers feel welcome and making them want to come back. People from all different walks of life come here to have a good time. I’m the facilitator of that,” he said. “I also really love just being around the staff here. We try our hardest to focus on the holistic approach, and it makes our staff feel more like a tight-knit family.” When asked what kind of advice he would give others considering a career in hospitality, Simon had two pieces of advice. “Be ready to work hard, work fast, and work smart. Working hard means that you are ready to face whatever challenges come toward you. Working fast means that you keep a steady pace and keep providing service in a quickened manner. Working smart means that you try and find the things that make your job easier, without taking shortcuts,” Simon explained. “The last piece of advice I would offer is to just have fun. If you go into your job with a smile on your face and a positive attitude, the people around you will notice and it will make their moods better as well.”

The people she has met and worked with along the way have added value to Teresa’s work. Michael Martino, former NCRLA Board Chair, was Teresa’s previous supervisor and mentor, and NCRLA Board Member Russ Jones of Davidson & Jones is her current boss. “Every day, I’m able to come and work with some of the best people I know, from the ownership to each and every staff member.” When asked what she likes most about her job, Teresa’s strengths in both service and leadership are apparent. “There is nothing as rewarding as working alongside others who share your passion and allow you to be the best version of yourself,” she said. “This is enhanced further by the joy which comes from the opportunity to serve others and further coach and grow a team. As a leader I now have the ability and responsibility to mentor others and There is nothing as develop the leaders of the future. This is my rewarding as working favorite part.” alongside others who When asked what share your passion and advice she has for young people allow you to be the best considering a career version of yourself,” in hospitality, Teresa Teresa said. “This is shared several nuggets of wisdom. enhanced further by the “Now is the time to joy which comes from start! I truly believe there are unlimited the opportunity to serve possibilities for growth others and further within our industry coach and grow a team.” for self-motivated individuals who wish to maximize both their earning and advancement possibilities,” Teresa said. “Lastly, don’t be afraid to work your way up. Often, we want to start on top managing others, but I have found the experience you develop as you work your way up will ultimately make you a better leader and more in tune with the true workings of the operation. At a time when many of us need to wear multiple hats, you never know when the hands-on experience will be a huge benefit.”

Teresa Thorb

Teresa Thorb, General Manager of the Sheraton Imperial Hotel at Research Triangle Park, cannot remember the exact moment that she decided on a career path in the hospitality industry. “In fact, if I am truthful, it feels more like my career chose me,” she said. “Being someone who loves to face new challenges, continuously learn new things, and serve others—it always feels like this is the perfect fit for me.” Teresa Thorb successfully worked her way up through the ranks of the hotel industry with positions such as Front Office Manager and Director of Rooms along the way. It’s evident that she found the career that was right for her. In 2012, Teresa was recognized by NCRLA as Lodging Employee of the Year, one of the annual Stars of the Industry awards. Now she is General Manager of the Sheraton Imperial Hotel. “When you work in hospitality, every day is different and each day presents its own unique challenges, which appeals to my desire for constant self-development,” she said. Summer 2021 | At Your Service

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Linda Nguyen

THREE TIPS FOR WORKING WITH INFLUENCERS— STRAIGHT FROM THE SOURCE By Danielle LaPerche, Largemouth Communications The term “influencer” is relatively new, yet it represents a rapidly growing and lucrative industry. From local bloggers to national brand ambassadors, influencers can develop content that results in widespread brand recognition and direct sales in many cases. While there are many benefits to working with influencers, each content creator may have a slightly different approach to brand collaborations. Some are glad to post in exchange for a gift card, comped meal, or gratis hotel stay, but others have established rate cards and talent managers to coordinate sponsored and promoted posts. As local North Carolina food blogger and portrait photographer

Linda Nguyen (@lindaeatsworld) puts it, “It’s a bit like the Wild West.” Largemouth Communications, a locally-based public relations firm that works with leading restaurant and hospitality industry clients, sat down with Nguyen to compile some tips to help marketers create successful and mutually beneficial partnerships with influencers.

BE UPFRONT WITH EXPECTATIONS

Like any other business transaction, it’s important to practice mutual respect. “There is a common misconception that being an influencer is an easy job. I have heard many times, ‘You Summer 2021 | At Your Service

“Growing a following takes time and persistence, just like acquiring new customers through traditional business channels.”

just post pictures, right?’ However, it can take hours to stage, photograph, and edit just one impactful post for your page,” said Nguyen. Growing a following takes time and persistence, just like acquiring new customers through traditional business channels. While some influencers pursue an online community as a passion or hobby, it’s important to keep in mind that more and more content creators use their digital platforms as a primary source of revenue. With that in mind, you don’t want to send a free gift with “no strings attached” and assume—or worse, expect—it will guarantee you coverage on their sites. Coming to the table with clear expectations and remaining open to negotiation is always the best policy.

NUMBERS AREN’T EVERYTHING

When looking for influencers to partner with, don’t focus solely on their follower count. Instead, focus on the quality of their content and the makeup of their audience. For instance, for a local grand opening it may be more important for you to reach a hyper-local, highly engaged group of followers rather than a large number of people who live across

the country and have no way of attending your event or engaging with your brand. Also, think about longevity. “If you work with an influencer that has a smaller following but would be willing to write a blog post to accompany a social post, that can increase your search engine optimization (SEO) and make you more visible in internet searches,” Nguyen explained. In other words, don’t always judge a page solely by its followers; consider additional amplification channels or other tangible benefits.

MAKE IT PERSONAL

Building personal rapport with influencers is a great way to build a strong influencer network. Another good way to connect with an influencer is to humanize your business—tell your story and engage with theirs! “Sometimes knowing that the people behind a brand are good at heart is enough of a push to win someone over,” said Nguyen. While working with influencers requires a tactful approach, nurturing these relationships will add influential and authentic voices to your marketing mix.

For information about our services, visit Largemouthpr.com You can find Linda Ngyuen at @lindaeatsworld and via Curious Notions Photography. 20 At Your Service | Summer 2021

Member Moments Proudly Recognizing North Carolina’s Hospitality Leaders

Oceanic Fills Giant Champagne Flute with Orangina in Fundraising Event

On May 16, Oceanic Restaurant in Wrightsville Beach partnered with beverage brand Orangina to raise money for the NC Restaurant Workers Relief Fund. They filled what is believed to be the world’s largest champagne flute with Orangina, in recognition of National Mimosa Day. A portion of all proceeds from Orangina mimosa sales and Orangina glass bottles were donated to the NC Restaurant Workers Relief Fund. “This event’s really kicking off summer for us, the tourism that’s going to come down here for the season,” said Oceanic general manager Mark Zecher.

Luxury Hotel in Uptown Charlotte Ranks Among Best in the Nation As travel begins to pick up after a long struggle for the industry through the COVID-19 pandemic, several lodging options in the Carolinas—including one in Charlotte—are included on a list of the best places to stay. The Travelers’ Choice Best of the Best Awards for Hotels by Tripadvisor puts The Ivey’s Hotel at No. 7 among its picks for the top 10 hotels in the U.S. for 2021. That luxury boutique hotel in uptown Charlotte opened in the spring of 2017, following a $25 million remake of the building that once housed the Ivey’s department store. It quickly started racking up accolades, with Architectural Digest naming it among the nation’s “most beautiful” hotels in December of that year. More recently, U.S. News & World Report named The Ivey’s and two other uptown properties among North Carolina’s best.

NC Biscuit Spot Ranks Among America’s Best Fast-Food Restaurants

Biscuitville Fresh Southern landed at No. 9 on the ranking of best regional fast-food brands, part of USA Today’s 10 Best Readers’ Choice Awards. Biscuitville’s scratch-made food uses locally sourced ingredients such as custom-milled flour from Henderson, coffee from Concord, and eggs from Monroe. It currently has more than 60 restaurants in North Carolina and Virginia. Summer 2021 | At Your Service

Cambria Hotel Downtown Asheville Named “Best of Choice” Award Winners Congratulations to Cambria Hotel Downtown Asheville, named as a “Best of Choice” award winner by Choice Hotels International, Inc., one of the world’s largest lodging franchisors. The winners rank among the top in Choice Hotels’ system for achieving high performance scores and exceptional guest ratings. At Cambria Hotel Downtown Asheville, guests can enjoy various upscale amenities, like sweeping rooftop views of the Blue Ridge Mountains, spa-inspired bathrooms, and a state-of-the-art fitness center, in addition to the brand’s hallmark craft beer program. The hotel is in the heart of the city, just minutes from award-winning restaurants, craft breweries, art galleries, music venues, and the iconic Biltmore Estate.

This Donut-themed NC Hotel “Sweet” with a “Donut Concierge” Duck Donuts teamed up with the Sanderling Resort on the Outer Banks to give guests a donut-themed room stocked with tons of donut decor and activities for National Donut Day on June 4. The “Sweet Escape” room is decked out with a donut theme and includes a donut wake-up call, an in-room coffee and donut decorating bar, and a tour at one of the original Duck Donuts stores in Duck, NC. Donut-themed souvenirs include branded beach towels, tote bag, koozies, cups, coupons, and more.

Hyperfocus on Community Fuels Mac’s Hospitality Group’s Pandemic Success In March 2020, Mac’s Hospitality Group, known for its award-winning BBQ concept Mac’s Speed Shop, did a warp-speed pivot, adapting to the surge of COVID-19. By March 2021, their pandemic strategy had produced a 520% increase in take-out and delivery sales, plus a 30% growth in fans on social media. They found and promoted new delivery partners through web carousels, pop-ups, and social media platforms; rolled out a new point-of-sale system more geared toward take-out and delivery; and added a third-party technology platform to fire every ticket directly into the kitchen. Mac’s also became hyperfocused on local marketing. Mac’s immediately joined forces with anyone who came to them with a local cause, from schools to Second Harvest Food Bank to the Isabella Santos Foundation for children with cancer. With out-of-pocket financial support and monetary donations from local companies and Mac’s “regulars,” they launched the Mac’s Give Back Program, which fed 10,000 people. 22 At Your Service | Summer 2021

“Top Chef” Alum to Open Mexican Restaurant in Cary LM Restaurants and “Top Chef” alum Katsuji Tanabe are teaming up for a Mexican restaurant in Cary. A’Verde Cocina and Tequila Bar will be located at 2300 Walnut Street in Cary. “It’s about showcasing Mexican food in an approachable way without being your traditional Mexican restaurant. We are bringing Mexican flavors in a more upscale, comfortable way,” Tanabe said. “I want you to enjoy my culture, yet you don’t need to be in the mood for Mexican food. This restaurant is a place where you can have fresh fish or good steak with some influences but without the heaviness that is associated with your typical Mexican food.”

À La Carte

A sampler of hospitality news stories

Count On Me NC Garners National, Regional Recognition North Carolina’s public safety initiative Count On Me NC continues to receive accolades within the marketing community. The collaboration between NCRLA, Visit NC, NC State University Extension and NC Department of Health and Human Services was recently recognized by the Out of Home Advertising Association of America. One of 137 national finalists, the campaign received a Bronze Obie for Nonprofits & Public Service. Count On Me NC won eight awards, including Best of Show, at the AAF Charlotte Awards. The multi-media, bilingual campaign earned Gold and Silver at the AAF District 3 Awards, which included North Carolina, South Carolina, and Virginia. Count On Me NC has also been named to the shortlists for two of the most prestigious global advertising and design competitions—The One Show and New York Festivals.

EMPLOYERS Insurance Offers 5% Credit to NCRLA Members EMPLOYERS Insurance continues to serve North Carolina’s restaurant and lodging community, providing workers’ compensation insurance and services to NCRLA members through their network of independent agents. EMPLOYERS is offering a 5% credit to all eligible NCRLA members along with low premiums and affordable payment plans. Visit Employers.com/NCRLA for more info.

Thank You for Helping Hospitality Workers In March 2020, NCRLA established the NC Restaurant Workers Relief Fund to provide immediate financial assistance to the state’s hospitality workers impacted by the COVID-19 pandemic. To date, we have raised over $1.4 million. Many thanks to the dedication and support of our most recent donors. The Oceanic Restaurant in Wrightsville Beach held an event on Mimosa Day, May 16, and contributed a portion of all Orangina sales to the fund. Rare Roots Hospitality organized a fundraiser and donated to restaurant workers in need. The Widmark Family Fund of Triangle Community Foundation chose the NC Restaurant Workers Relief Fund for their charitable contribution. Tito’s Handmade Vodka once again ran a campaign to donate $1 from every bottle sold, for a new contribution to the relief fund. Thanks to everyone who supported North Carolina’s hospitality industry and workers!

2021 Report Offers Positive News for Travel Industry Recent independent research on travel provides some uplifting insights for the hotel industry. A study conducted by RMS North America revealed that remote workers prefer working from hotels while traveling. This is extremely positive news for hotels because many businesses now plan to permanently offer remote work. When given the option, 42.3% of the 350 people surveyed choose to stay at a traditional hotel while working remotely. In addition to wanting to travel within driving distance, 22.3% of travelers are prioritizing specific travel destinations, such as the beach. While people are starting to fly more, the RMS data indicates that travelers still prefer local travel to a specific location. According to RMS, 35.1% of consumers indicated that review sites such as Yelp, Google, and TripAdvisor influence their travel decisions the most. These tools are far more influential than Facebook and Instagram. In a close second, word-of-mouth recommendations are influencing destination choices as well. Summer 2021 | At Your Service

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