At Your Service, Summer 2019

AT YOUR

Official Magazine of North Carolina Restaurant & Lodging Association

SERVICE

Summer Legislative Update Fighting for commonsense legislation

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PLUS

Regional Roundup

What you should know about CBD

Hospitality updates for your area

Celebrating a Legend Angus Barn’s Van Eure receives national lifetime award

Summer 2019 Issue, Vol. 8, Issue 3 NCRLA.org

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Contents

NCRLA EXECUTIVE BOARD OF DIRECTORS VINAY PATEL, Chair SREE Hotels, LLC

18

JIM BELEY The Umstead Hotel & Spa SCOTT BREWTON Pinehurst Resort ANDY CLARK US Foods

10

22

DAN FREELAND Concord Hospitality Enterprises PHIL FRIEDMAN Salsarita’s Fresh Cantina TIM GOSS Firehouse Subs

Features

JOEL GRIFFIN Griffin Stafford Hospitality, LLC

10

16

18

21

22

Complying with FLSA

Celebrating an Industry Legend Honoring Van Eure’s lifetime of achievement

Prepping for NCRLA Chef Showdown

Surveillance Footage Tips

Critical details about the Fair Labor Standards Act

Summer Legislative Update The latest news from the North Carolina General Assembly

A look at this year’s Preliminary and Regional Rounds

How your surveillance footage can protect against claims

ALAN HILTON S & D Coffee, Inc. DORIS HUEBNER F & D Huebner, LLC BURNEY JENNINGS Biscuitville Fresh Southern SCOTT MAITLAND Top of the Hill Restaurant, Brewery & Distillery MICHAEL MARTINO Sheraton Imperial Hotel & Convention Center AMBER MOSHAKOS LM Restaurants

In Every Issue 5

Upcoming Events Network with hospitality industry leaders at NCRLA’s upcoming events

6

Fighting for Commonsense Legislation Letter from NCRLA Chair Vinay Patel and President & CEO Lynn Minges

8

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

13

Guest Column: Serving Up CBD? What you should know about this popular ingredient

4

At Your Service | Summer 2019

23

ProStart Highlights from the National ProStart Invitational

25

Regional Roundup News and updates from NCRLA local chapters

27

Benefits of Membership How NCRLA gives your company a competitive advantage

28

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

29

A la Carte A sampler of hospitality-related news stories

RASHMIKANT “HAJI” PATEL Ex-officio Asian American Hotel Owners Assoc.

NISHITH “NISH” PATEL Beacon IMG, Inc. GONZA SALAMANCA Gonza Tacos Y Tequila TOM SASSER Burke Hospitality BILLY SEWELL Platinum Corral, LLC JASON SMITH 18 Restaurant Group RON STORTO Biltmore Farms, LLC STEVE THANHAUSER Angus Barn, Ltd. CHARLES THOMPSON The Inn on Biltmore Estate LANCE TRENARY Golden Corral Corporation

2019 EVENTS Network with hospitality industry leaders at one of NCRLA’s upcoming events.

Learn more at NCRLA.org

August 6 Charlotte Chapter Meeting Salsarita’s Corporate Office Charlotte, NC August 7 Asheville Lodging Association Meeting Cambria Hotel Downtown Asheville Asheville, NC

September 19 Uptown ‘Que & Brew — Charlotte Chapter PAC Fundraiser Location TBD. Please check NCRLA.org for updates.

September 30 NCRLA Chef Showdown The Angus Barn’s Bay 7 American Tobacco District Durham, NC

August 12 Pitt Independent Eateries Chapter Meeting Basil’s Restaurant Greenville, NC

October 1 Outer Banks Restaurant Association Meeting Rotating location

September 9 Pitt Independent Eateries Chapter Meeting Basil’s Restaurant Greenville, NC

October 14 Pitt Independent Eateries Chapter Meeting Basil’s Restaurant Greenville, NC

September 10 Outer Banks Restaurant Association Meeting Rotating location

October 21 NCRLA Board of Directors Meeting NCRLA Corporate Office Raleigh, NC

September 10 – 11 AHLA Legislative Action Summit Washington, DC

October 21 Manteo to Murphy PAC Fundraiser The Angus Barn Raleigh, NC

November 5 Outer Banks Restaurant Association Meeting Rotating location November 11 Pitt Independent Eateries Chapter Meeting Basil’s Restaurant Greenville, NC November 12 Charlotte Chapter Meeting Location TBD. Please check NCRLA.org for updates.

November 13 Asheville Lodging Association Meeting Location TBD. Please check NCRLA.org for updates.

December 5 Outer Banks Restaurant Association Meeting Rotating location December 9 Pitt Independent Eateries Chapter Meeting Basil’s Restaurant Greenville, NC

Summer 2019 | At Your Service

5

At Your Service Volume 8, Issue 3 An official publication of the NC Restaurant & Lodging Association © 2019

Fighting for Commonsense Legislation The legislative session has been incredibly busy for the NCRLA team with several proposed bills on ABC reform up for consideration. While much work remains, one of our biggest victories to date this year is the passage of HB 130, which allows charities to legally host fundraising events that feature casino-style games. Gov. Roy Cooper signed the legislation on May 10 and the law went into effect on June 1.

Prior to the passage of HB 130, offering games of chance with prizes while also serving alcohol was a violation of North Carolina state regulations. However, this didn’t stop many groups from breaking the law. As a result, hotels, restaurants, and other businesses who abided by the state’s rules were continually subject to losing business.

HB 130 allows nonprofits, trade associations, and certain employers to host occasional The road to commonsense fundraising events, up to four annually, to support charitable causes. Nonprofit organizations are regulation of charitable required to obtain a permit and pay a $100 fee. casino nights in North Game night vendors must obtain permits and register with the Alcohol Law Enforcement (ALE) Carolina was a long one. branch in the Department of Public Safety.

NCRLA has been fighting to The road to commonsense regulation of change the laws for the past charitable casino nights in North Carolina was a long one. NCRLA has been fighting to change 10 years. the laws for the past 10 years. Working side by side with legislators from across the state, we were able to achieve broad bipartisan support for HB 130 in both the NC House and Senate. We are grateful to Rep. Jamie Boles and Sen. Rick Gunn who spearheaded the most recent effort on this commonsense legislation.

NCRLA will host a forum between hotel, restaurant, and game-night operators to discuss best practices for holding “Casino Night” fundraisers for non-profit organizations. Look for details of this event on our website and in our weekly newsletters. To receive critical updates on bills that affect your hospitality business, text NCRLA to 52886.

STAFF President & CEO LYNN D. MINGES Chief Operating Officer/ Membership Development/ Health and Safety Regulations/ ALYSSA BARKLEY, IOM Director of Government Affairs ISABEL VILLA-GARCIA Director of Communications MARGO METZGER Director of Marketing and Business Development MINDY WHARTON Director of Hospitality Education KARA HAMILTON Area Director, Charlotte & Asheville JOHN BEATTY Database Manager & Membership Coordinator NATALIE COX Executive Assistant/ NCRLA Board Liaison AMY BERENSON Special Events and Projects Manager LAURA HAYDEN General Counsel & Lobbyist FRANK GRAY 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 Director of Marketing and Business Development, MINDY WHARTON, at mwharton@ncrla.org.

Lynn Minges NCRLA President & CEO

Vinay Patel NCRLA Board Chair

Published by Farlow Communications, LLC

/NCRLA @NCRLA Or search North Carolina Restaurant & Lodging Association 6

At Your Service | Summer 2019

Thank You to Our Corporate Sponsors

Corporate Sponsors 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

PLATINUM

TITANIUM

GOLD

SILVER

View our Corporate Sponsorship opportunities at NCRLA.org

For more information on how you or your organization can become a Corporate Sponsor of NCRLA, including the Hospitality Education Foundation and the NCRLA Political Action Committee, call Mindy Wharton, NCRLA Director of Marketing and Business Development, at 919-277-8585.

Summer 2019 | At Your Service

7

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 A-B Tech Community College, Asheville Blanchard, Miller, Lewis & Isley, P.A., Raleigh Charlotte Destination Group, Charlotte Ponce D. Moody, Raleigh SpotOn, San Francisco, CA The Kitchen Raleigh LLC, Raleigh Lodging

Fairfield Inn & Suites by Marriott, Mebane

Dram Yard, Wilmington

Holiday Inn Charlotte-City Center, Charlotte

Gan Shan Station, Asheville

Tara Hospitality, Charlotte Homewood Suites Charlotte Ballantyne, Charlotte

Fraziers Tavern LLC, Asheville Gan Shan West, Asheville Hero’s Pub, Raleigh Meridian Restaurant, Winston-Salem

Canopy by Hilton Southpark, Charlotte

NC Bagel Station, Winston-Salem

Restaurants

Porchetta Catering, Durham

Big Ed’s, Garner

Arrive Hotels, Wilmington

Burney’s Sweets & More, Raleigh

Courtyard by Marriott Charlotte/ Gastonia, Gastonia

CMJ Hospitality, Raleigh DBD/Monroe Holdings, Graham

Days Inn, Greensboro

Dot Dot Dot Organization, Charlotte

Nino’s Cucina Restaurant, Greenville Red Dogs, Wrightsville Beach The Blind Pig LLC/AUX Bar, Asheville The Emporium, Kernersville The Simple Greek, Raleigh

t e G iced! t o N

Place your brand in NCRLA’s At Your Service, In the Mix, View from Jones Street, and more.

Be seen by foodservice establishments and lodging properties across the state, as well as a vast network of suppliers, purveyors, educators, and hospitality leaders.

Contact Mindy Wharton at mwharton@ncrla.org or 919-277-8585 to learn more.

8

At Your Service | Summer 2019

THANK YOU Donors Strengthen the Voice of NC’s Hospitality Industry

Government decisions impact virtually every aspect of the hospitality industry, from the way food is prepared to how it is taxed. As a result, it is important to support candidates who understand that a healthy hospitality industry translates into a stronger North Carolina economy.

With your donations, NCRLA maintains two funds to help advance good policy and protect your bottom line from onerous government mandates.

1. The NCRLA Political Action Committee (PAC) backs the political campaigns of candidates who understand the issues affecting our state’s hospitality industry.

Contributions must be from personal funds and are limited annually. Learn more at NCRLA. org/PAC.

2. The NCRLA Advocacy Fund, our newest tool, helps strengthen our political prowess.

Contributions may be from a business or personal account.

There is no limit and they are not subject to public disclosure.

NCRLA will use these funds for special advocacy initiatives allowed by law. Learn more at NCRLA.org/advocacy-fund.

2019 PAC CONTRIBUTORS Silver Burney Jennings, Greensboro | Nishith Patel, Matthews | Billy Sewell, Jacksonville Brad Hurley, Morrisville | Tim Goss, Charlotte | Scott Brewton, Pinehurst Phil Friedman, Charlotte | Gonza Salamanca, Raleigh Bronze

Contributor

Vinay Patel, Charlotte

Scott Maitland, Chapel Hill

2019 Advocacy Fund Contributors ($100+) Tim Goss (Firehouse Subs) | JAX,LLC dba Golden Corral | The Umstead Hotel & Spa Hilton, Asheville Biltmore Park | Drum & Quill, Kevin Drum, Pinehurst Ambica LLC Holiday Inn, Asheville Biltmore West | Billy Sewell Hilton, Duke University, Durham | Clarion Inn | Doris Huebner | Phil Friedman Gonzas Tacos & Tequila

Become a Donor: Contact Isabel Villa-Garcia at ivilla-garcia@ncrla.org or 919-861-0942.

Under North Carolina law, we are required to report the name, mailing address, employer, and job title of any individual who contributes more than $50 to the NCRLA Political Action Committee in any election cycle. The law requires that contributions to the PAC, including purchases of silent auction items, be made by individuals, not by corporations.

From the US Department of Labor

Are You in Compliance with the Fair Labor Standards Act (FLSA)?

Restaurants and fast-food businesses with annual gross sales from one or more establishments that total at least $500,000 are subject to the Fair Labor Standards Act (FLSA).

Likewise, any person who works on or otherwise handles goods that are moving in interstate commerce is individually subject to the minimum wage and overtime protection of the FLSA. For example, a server or cashier who handles a credit card transaction would likely be subject to the act.

10 At Your Service | Summer 2019

REQUIREMENTS Minimum Wage: Covered non-exempt workers are entitled to a federal minimum wage of not less than $7.25 per hour effective July 24, 2009. Wages are due on the regular payday for the pay period covered. Deductions made from wages for items such as cash shortages, required uniforms, or customer walkouts are illegal if the deduction reduces the employee’s wages below the minimum wage or cuts into overtime pay. Deductions made for items other than board, lodging, or other recognized facilities normally cannot be made in an overtime workweek. Tips may be considered as part of wages, but the employer must pay not less than $2.13 an hour in direct wages and make sure that the amount of tips received is enough to meet the remainder of the minimum wage.

Food Credit: The employer may take credit for food which is provided at cost.

This typically is an hourly deduction from an employee’s pay. However, the employer cannot take credit for discounts given employees on food (menu) prices.

Tips: Tipped employees are those who customarily and regularly receive more than $30 a month in tips. Employees must be informed of the provisions of FLSA section 3(m) in advance if the employer elects to use the tip credit.

Also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement.

Overtime: Overtime must be paid at a rate of at least one and one-half times the employee’s regular rate of pay for each hour worked in excess of 40 hours per week. In determining the regular rate for a tipped employee, all components of the employee’s wages must be considered (cash, board, lodging, facilities, tip credit, etc.).

Youth Minimum Wage: The 1996 Amendments to the FLSA allow employers to pay a youth minimum wage of not less than $4.25 an hour to employees who are under 20 years of age during the first 90 consecutive calendar days after initial employment by their employer. The law contains certain protections for employees that prohibit

employers from displacing any employee in order to hire someone at the youth minimum wage.

YOUTH EMPLOYMENT Youths 14 and 15 years old may work outside school hours in various nonhazardous jobs only under the following conditions: no more than 3 hours on a school day, 18 hours in a school week, 8 hours on a non-school day, or 40 hours in a non-school week. Also, work may not begin before 7:00 am, nor end after 7:00 pm, except from June 1 through Labor Day, when evening hours are extended to 9:00 pm. Permitted occupations for 14- and 15-year-old employees include those such as cashier, office/clerical work, bagging orders, cleanup work, hand-cleaning vegetables, etc. Cooking and baking cannot generally be performed by minors under age 16.

Youths 16 and 17 years old may perform any non-hazardous job for unlimited hours. Examples of equipment declared hazardous in restaurants include power-driven meat processing machines (saws, patty forming machines,

grinding, chopping, or slicing machines), commercial mixers, and certain powerdriven bakery machines. Employees under 18 are not permitted to operate, feed, set up, adjust, repair, or clean such machines. Generally, no employee under 18 years of age may drive or serve as an outside-helper on a motor vehicle on a public road; but 17-year-olds who meet certain specific requirements may drive automobiles and trucks that do not exceed 6,000 pounds gross vehicle weight for limited amounts of time as part of their job. Such minors are, however, prohibited from making time-sensitive deliveries (such as pizza deliveries or other trips where time is of essence) and from driving at night.

TYPICAL PROBLEMS If uniforms are required by the employer, the cost of the uniform is considered to be a business expense of the employer.

If the employer requires the employee to bear the cost, such cost may not reduce the employee’s wages below the minimum wage or cut into overtime compensation. When an employer claims an FLSA 3(m) tip credit, the tipped employee is considered to have been

paid only the minimum wage for all non-overtime hours worked in a tipped occupation and the employer may not take deductions for walkouts, cash register shortages, breakage, cost of uniforms, etc., because any such deduction would reduce the tipped employee’s wages below the minimum wage.

Exemptions from Overtime: Section 13(a)(1) of the FLSA provides an exemption from FLSA monetary requirements for an employee employed in a bona fide executive, administrative, or professional capacity, or as an outside salesperson. An employee will qualify for exemption if all pertinent tests relating to duties, responsibilities, and salary, as set forth in Regulations, 29 CFR Part 541, are met. The salary and duties tests for the exemptions are fully described in Regulations Part 541.

ADDITIONAL INFORMATION For additional information, visit WageHour.dol.gov or call 1-8664USWAGE (1-866-487-9243). 

This is for general information and is not to be considered in the same light as official statements of position contained in the regulations.

Summer 2019 | At Your Service

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Serving Up CBD: The Legal Status of this Wildly Popular Ingredient The cannabidiol (CBD) industry is exploding. Hemp and hemp-derived CBD were considered Schedule I controlled substances until Congress passed the Agriculture Improvement Act of 2018 (Farm Bill) on December 20, 2018. The Farm Bill, among other things, decriminalized hemp and CBD. That, coupled with the fast-growing popularity and public interest in CBD, has resulted in a nationwide rush for retail businesses, including restaurants, bars, and breweries, to incorporate CBD into food, beverages, and other products.

Continued on next page

The CBD industry is incredibly dynamic, and it is far outpacing the existing legal and regulatory structure.

The FDA is taking steps to create a framework for the lawful marketing and sale of CBD food and supplement products.

Summer 2019 | At Your Service

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What is CBD? Hemp is not marijuana. Both come from the cannabis plant family but they are chemically different. Each contains various chemical compounds called "cannabinoids,” including CBD and tetrahydrocannabinol (THC), but the hemp plant only contains trace amounts of delta-9 THC. CBD is not intoxicating and is believed to be non-habit forming. Its proponents often claim that the cannabinoid offers a calming effect without the "high" associated with marijuana. As it stands today, hemp and CBD are legal so long as the plant (or the products derived from the plant) contain 0.3% delta-9 THC or less by dry weight.

Regulations Remain Hemp-derived CBD is still subject to a host of laws and regulations. The Farm Bill did not change the authority of the US Food and Drug Administration (FDA) to regulate hemp and its derivatives, like CBD, under the Federal Food, Drug and Cosmetic Act. On the same day the Farm Bill passed, the FDA opined that CBD cannot be lawfully sold in food or beverage products or as a dietary supplement.

The North Carolina Department of Agriculture & Consumer Services (Department) followed suit in February. Since then, the Department has inspected several retail businesses and issued warning letters, taking the position that it is illegal to sell any human food or animal feed in North Carolina that contains CBD. Any product that contains CBD and makes health-related claims must be approved by the FDA prior to sale. For now, however, the Department is following an "educate first" approach instead of taking enforcement action.

Other regulatory bodies have also followed the FDA's lead on CBD. For example, the Federal Tax and Trade Bureau (TTB), the federal body that regulates the production and sale of alcohol, recently issued an industry circular to reinforce the

FDA ban on CBD in alcoholic beverages. The North Carolina ABC Commission has also indicated that it is drafting rules that address the use of CBD in alcoholic beverages. Although the FDA and TTB prohibit the use of CBD in food and beverages, they allow retailers and product manufacturers to use Generally Recognized As Safe (GRAS) ingredients — like hemp seeds and seed oil — in certain instances. Meanwhile, savvy entrepreneurs have identified several loopholes and workarounds to these general regulatory concerns.

The Future of CBD The CBD industry is incredibly dynamic, and it is far outpacing the existing legal and regulatory structure. The FDA is taking steps to create a framework for the lawful marketing and sale of CBD food and supplement products. The FDA held a public hearing on May 31 for stakeholders to share their experiences and challenges. It has formed a high-level internal working group to advance those goals. But there is still much work to be done to legitimize the CBD industry and to fully realize its viable economic benefits for our state, businesses, and citizens. Commonsense guidelines that promote a safe, robust, and credible marketplace for the production and sale of CBD products are necessary. Having clear rules in our state will foster and create a welcoming business climate that invites additional hemp-related investments, jobs, taxes, and wealth creation.

This article is not intended to give, and should not be relied upon for, legal advice in any particular circumstance or fact situation. No action should be taken in reliance upon the information contained in this article without obtaining the advice of an attorney. 

Tyler Russell and Allen Trask are attorneys at Ward and Smith, PA in Raleigh, NC. You can reach Tyler at tjr@wardandsmith.com or Allen at ant@wardandsmith.com.

14 At Your Service | Summer 2019

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A legacy of helping others.

Van Eure (right) with her sister Shelley Belk, the executive director of the Foundation of Hope.

Honoring a Legend:

Angus Barn Owner Van Eure Receives Industry Legends Award

O

n the evening of May 18, restaurant industry leaders from around the world gathered at the 2019 IFMA Gold & Silver Plate Awards gala in Chicago. For 65 years, the International Foodservice Manufacturers Association has recognized operators who have “gone above and beyond to set a new standard of excellence.” During this year’s event, the National Restaurant Association honored Van Eure, owner-operator of Angus Barn in Raleigh, with the prestigious Industry Legends Award for her lifetime of achievement.

“Purely and simply, Van epitomizes everything good about our industry: warmth, gracious hospitality, commitment to teamwork, and the acknowledgment that we are all here only because we stand on the shoulders of others," said Dawn Sweeney, president and CEO of the National Restaurant Association. "Van is all that, and above everything, she is about service.”

Eure is only the third recipient of the prestigious Industry Legends Award, joining legendary restaurateurs Ted Balestreri and Joe Fassler.

“Angus Barn is one of the great steakhouses in the world. I’ve known Van most of her life, and her family has been kind of a legend in this industry. I can tell you that if you don’t love what you’re doing, you can’t be a legend in this industry. She loves what she does. She personifies it,” said Ted Balestreri, owner of the Sardine Factory restaurant in Monterey, CA, and inaugural winner of the award.

The daughter of restaurant pioneers Thad and Alice Eure began working in the industry at the age of 14. Van Eure eventually took over leadership of the

Angus Barn after the death of her father in 1988. Since then, Eure has cemented the restaurant’s place in history by working tirelessly to expand her parent’s legacy.

Her approach to management empowers her team to make their own decisions, which she believes boosts morale and increases loyalty.

“She’s all about making people feel good, helping families enjoy celebrations, and providing extraordinary service not only to her customers but to her employees, to those less fortunate, the industry, and to her peers,” said NCRLA President & CEO Lynn Minges. “She’s very giving and generous. When Van Eure speaks about a policy to policy makers, it makes a huge impact. She honestly gives because she desires to make other people feel good. She carries that legend and that responsibility with her every single day because she’s committed to providing the same level of customer service, the same quality product every single day.”

In addition to her contributions to the restaurant industry, Van Eure was also recognized for her extensive charitable work. Eure leads an annual fundraising walk for the Foundation of Hope, which funds scientific grants in mental health research. She also launched the Cheyenne Foundation, a charitable organization that rescues and rehabilitates abused horses and dogs.

"I'm truly honored to be a recipient of this award, and humbled to be included with such incredibly talented previous recipients," said Van Eure. “Even though my name is on the award, it would not be possible without the help of the entire Angus Barn team that works so hard each and every day to make sure every guest has a memorable experience.”  Summer 2019 | At Your Service

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Summer Legislative Update As of press time, the legislative session has reached a fever pitch. The budget negotiated between the NC House and Senate was released and passed by both chambers. Gov. Roy Cooper later vetoed the budget. It remains to be seen if Republican leadership can persuade enough Democrats to override the veto.

In the meantime, the NCRLA government affairs team is working tirelessly on both offense and defense as the session nears its end. Here are the latest updates from the General Assembly:

NCHEF Receives Budget Appropriation for Workforce Development

NCRLA’s foundation, The North Carolina Hospitality Education Fund (NCHEF), has received a dedicated grant of $200,000 for each of the next two years.

Although the dollar amount is the same as last year, the money is now a directed appropriation. This allows NCHEF more flexibility in using the funds for ProStart expansion since the foundation no longer 18 At Your Service | Summer 2019

has to work through the Department of Public Instruction. The grant also gives NCHEF a line-item in the budget, making it easier to attain funding in future years.

Tourism Receives $1.5 Million in State Funding

The state budget also gives a boost to tourism. The Economic Development Partnership of North Carolina (EDPNC) received a $1.5 million appropriation for tourism promotion. This increase in state funds will go directly to tourism marketing and advertising. NCRLA and the NC Travel and Tourism Coalition fight for this financial support every year. The additional funding will help bring more travelers to North Carolina and boost our state’s hospitality industry.

2017 Food Code Bill Approved by Senate

HB 735 (Adopt Rules Incorporating 2017 Food Code) received unanimous support from both the Senate Agriculture/ Environment/Natural Resources

Committee and the Senate Rules Committee before being passed by the full Senate. HB 735 will go to Gov. Roy Cooper, who is expected to sign the bill into law. The NCRLA team spent countless hours advocating for passage of this important legislation.

House Passes Key Alcohol Reform Bill

HB 536 (ABC Omnibus Regulatory Reform) includes many provisions modernizing the ABC system in NC, including electronic payment for mixed beverage (MXB) customers, delivery of liquor to MXB customers, and allowing single-bottle special orders of liquor. HB 536 was passed by the House. The bill will now move on to the Senate.

Distillers Bill Would Ease Path for Restaurants to Get Local Spirits Under Senate Bill 290, ABC boards would be required to expediently fill restaurant orders from resident distilleries, giving local boards the option to buy directly

Stay Informed: Text NCRLA to 52886 to get updates on bills. from a local distillery and avoid the circuitous route through the state’s single warehouse in Raleigh. The bill would also allow distilleries to offer cocktails that feature their liquors as well as beer and wine. It would enable distillers to sell unlimited bottles to a patron who has taken a tour, and allow for tastings at ABC stores. SB 290 passed the House ABC Committee and now goes to House Rules.

available to shopping malls across the state for common areas of the mall. The permit would allow brick-and-mortar stores at malls to sell alcohol during special events at the mall as long as they have an active alcohol permit and follow certain regulations from the ABC Commission. Currently, beer is being served at these events from mobile beer taps, but the restaurants at the mall are prohibited from selling alcohol outside their doors. The bill now moves to the Senate Finance Committee.

Harmful Franchisee Language Becomes a Study

Bill May Allow Mall Restaurants to Serve Alcohol at Events Senate Bill 344 cleared the Senate Commerce and Insurance Committee.

The bill would establish an ABC permit

A provision in SB 523 Rev. Clarifying Laws & Administrative Changes would have required a large amount of data to be reported by franchisors and franchisees, including sales numbers. NCRLA worked very hard to educate legislators about the impact and burden this legislation would place on businesses. During the interim, the provision was changed to a study aimed to ensure that franchisees are

accurately reporting to NC Department of Revenue. We will continue to engage members on this very important issue throughout the study process.

Congress to Vote on Minimum Wage and Tip Credit

The US House of Representatives will likely vote on the “Raise the Wage Act” this summer. This legislation would increase the federal minimum wage from $7.25 to $15 per hour by 2024 and fully eliminate the tip credit. NCRLA is working closely with the National Restaurant Association to educate congress about the impact an increase would have on hotels and restaurants, particularly tipped employees. 

» Help protect our industry by contributing to our PAC and Advocacy Fund. Learn more at NCRLA.org.

Summer 2019 | At Your Service

19

KICKING OFF THE NCRLA Chef Showdown!

Dozens of North Carolina’s most talented chefs competed in the 2019 NCRLA Chef Showdown Preliminary Rounds that were held at Carteret Community College in Morehead City, the Princess Anne Hotel in Asheville, Heirloom Restaurant in Charlotte, and The Painted Plate in Greensboro. The final Preliminary Round is scheduled for July 22 at The Great Room at Top of the Hill in Chapel Hill.

Ready for the Regionals?

The top scorers from the Preliminary Rounds will advance to the Regionals, which will be held on August 12 at Vidrio in Raleigh, August 19 at Central Piedmont Community College in Charlotte, and August 26 at Bluewater Waterfront Grill in Wilmington. The Regional judges include: • Chef Catherine Rabb, Charlotte Instructor at Johnson & Wales University and Co-Owner of Fenwicks Restaurant

Meet this Year’s Mixologists!

The final NCRLA Chef Showdown event will feature six North Carolina distilleries partnered with six top-shelf mixologists, all competing for the NCRLA Distillery & Mixologist of the Year award: • Jimmy Huyhn, representing Copper Barrel Distillery • Nicole Gubitosi, representing Lassiter Distilling Company • Hannah Forde-Smith, representing Mother Earth Spirits

• Chef Adam Hayes, Brevard Award-winning North Carolina chef

• Shannon Healy, representing Durham Distillery

• Chef Travis Myers, Winston-Salem 2018 NCRLA Chef of the Year and Executive Chef at Willows Restaurant

• Amanda Phillips, representing TOPO Organic Spirits

• Tim Parrish, Raleigh Domestic Marketing Manager at NC Department of Agriculture & Consumer Services Each of the winners from the Regionals will move on to compete at the Finals on Monday, September 30 at The Angus Barn’s Bay 7 at the Tobacco Campus in downtown Durham. The Finals are open to NCRLA members and the public, so mark your calendar and plan to join us!

• Johnny Burritt, representing Apothecary Beverage Company

Thank You to Our Sponsors!

Learn more about the 2019 NCRLA Chef Showdown sponsors at NCChefShowdown.com.

Follow the Action See the photos and get the latest details @ncrlachefshowdown on Facebook, Twitter, and Instagram.

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75%

Roughly 75 percent of our policyholders do not preserve their surveillance tapes after the claim has been reported to our team. Failure to save video can increase the payout of a claim up to $200,000 per claim.

What you need to know about keeping your surveillance footage for claims against your business Fights, theft, and vandalism are all unfortunate responsibilities of a business owner. In addition to security and staff training, having a surveillance system installed is one thing that can protect you from a possible lawsuit that could potentially shut down your entire operation.

INTERESTING FACTS Some cities have passed ordinances that require new alcohol licensees to install surveillance cameras before the establishment can officially open for business.

Be sure to preserve surveillance tapes for at least three years and store the footage on a thumb drive, hard drive, or back up the cloud.

Even if you’re a small operation, there are various surveillance systems on Amazon starting at $35 that would help keep you from going out of business!

IF something happens at your establishment, you should review and safeguard the surveillance tapes until the statute of limitations runs out, which is usually around three years.

IF you are aware of any incidents such as the police were called, a fight happened in the establishment, or a drunk driving incident — these are situations where we look to you to provide us that surveillance footage during the claims process.

We recommend testing your surveillance system regularly to ensure that your system is functioning and working correctly.

Surveillance footage is evidence. Policyholders can face harsh penalties if evidence is lost, destroyed, or erased following an incident.

Hospitality Insurance Group | 106 Southville Rd, Southborough MA 01772 | HMIC.com

NC ProStart Students Compete in National Invitational After finishing first at the 2019 North Carolina ProStart Invitational, the teams from Cary High School and SmithfieldSelma High School competed at the prestigious National ProStart Invitational in Washington, DC on May 8 – 10. Both teams completed a rigorous boot camp and training prior to the national event.

As part of the competition, the restaurant management team from Smithfield-Selma High School presented their proposal for a promising restaurant concept to a panel of industry judges. The students had to communicate their ideas clearly and use problem-solving skills to overcome daily challenges faced by restaurant managers.

The culinary team from Cary High School prepared a creative three-course meal in 60 minutes without access to running water or electricity, using only two butane burners.

They were evaluated on taste, skill, teamwork, safety, and sanitation.

“We are incredibly proud of all the students who represented North Carolina at this year’s national competition,” said Lynn Minges, President & CEO of NCRLA and NCHEF. “These students have worked hard and shown

2019 NCPI Culinary Winners from Cary High School

they have what it takes to be future leaders in the restaurant and hospitality industry.”

While preparing for the National Invitational, the students at Smithfield-Selma High School received a big helping hand.

Chef Teddy Diggs, chef/owner at Chapel Hill’s soon-to-open Coronato Pizza and 2018 Chef Showdown finalist, shared his culinary expertise with the team.

The Cary High School culinary team also benefitted from the wisdom of a ProStart mentor. NCRLA 2018 Chef of the Year Travis Myers, of Willow’s Bistro in Winston-Salem, offered his professional experience and insights to the Cary students during the boot camp.

The ProStart program is utilized in more than 1,700 high schools in 50 states, Guam, and on US military bases. It reaches nearly 120,000 secondary students annually. Many post-secondary schools in the nation recognize ProStart’s Certificate of Achievement, which is awarded to students who complete both levels of the program and achieve a minimum of 400 hours of work experience. These post-secondary schools often reward ProStart graduates with scholarships and credits. To learn more, visit NCRLA.org/ProStart. 

2019 NCPI Management Winners from Smithfield-Selma High School

Special Thanks to all 2019 Team NC Sponsors!

Official Team NC Sponsor: Golden Corral Team NC Travel Sponsor: Firehouse Subs Team NC Uniform Sponsors: Pepsi Bottling Ventures, Pinehurst Resort and Spa, Sysco, US Foods Summer 2019 | At Your Service

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JOIN US! 0 9 . 1 0 . 1 9 RALEIGH CONVENTION CENTER RALEIGH, NC

USFOODS.COM/EVENTS

TO REGISTER: USFOODS.COM/EVENTS OR DOWNLOAD OUR FOOD FANATICS LIVE ™ APP

© 2019 US Foods, Inc. 06-2019 FOF-2019050104

Regional Roundup Hospitality news and updates from NCRLA local chapters

Asheville Members Work to Foster Relationships The Asheville Lodging Association has been working to foster stronger relationships with local elected officials and government leaders. The Association plans to extend invitations to elected officials to participate in back-of-house tours and to join teams from local hotels and restaurants in their community-impact efforts. The goal is for local policy makers to meet residents who have chosen hospitality as their career, hear their personal stories firsthand, and experience the work our industry does in the community. Are you interested in being a part of this important effort? Do you have an upcoming community service project? Are you willing to host a back-ofhouse tour? Please contact John Beatty at jbeatty@NCRLA.org to let him know.

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Charlotte Chapter Addresses CRVA Board Appointments and Noise Ordinance NCRLA is continuing efforts in Charlotte to increase the number of industry appointments to the Charlotte Regional Visitor Authority board. Following up on previous conversations with Mayor Vi Lyles and City Manager Marcus Jones, Area Director John Beatty and the Charlotte members met with Charlotte City Council members advocating to fill an at-large seat appointment with another hotelier. NCRLA and the Greater Charlotte Hospitality & Tourism Alliance sent a joint letter supporting the reappointment of Tom Sasser (Burke Hospitality) to the restaurant seat and the appointments of both Vinay Patel (SREE Hotels) and Boris Bunich (Beacon IMG) to fill a limited service hotel seat and an at-large seat.

NCRLA facilitated a discussion between a group of Uptown hoteliers and Charlotte City staff regarding proposed changes to the noise ordinance. The hoteliers support changing from the A-weighting scale to a C-weighting scale, which helps capture bass vibrations and enables better enforcement. The group’s recommendations to City of Charlotte Community Relations Director Willie Ratchford included: •T aking readings above street level, if requested by a complainant, since disturbances of greatest concern come from hotel guests who are staying above street level •A llowing hotel security (such as uniformed, off-duty police officers) to take readings on behalf of the City for official purposes Enforcement of the noise ordinance, current and future, is paramount to meeting hotel guests’ expectations of a restful night’s sleep.

Putting hospitality first in the Queen City.

From left to right: Jon Dressler, Nish Patel, Dimple Ajmera, Tom Sasser, and John Beatty.

OBRA Wraps Up Activities for the Summer Season

Photo credit: Elizabeth Neal

The Outer Banks Restaurant Association (OBRA) held the last monthly meeting of their 2018 – 2019 year on May 7 to recap the year’s activities and plan for upcoming events. The annual OBX Taste of the Beach Festival showed positive growth in ticket sales from prior years.

This was due in part to the cornerstone events — The BBQ & Wings Showdown and The Grand Tasting — being held at The Soundside Event Site, a larger venue in Nags Head. The members scheduled the Fall Restaurant Week for October 4 – 12, and next year’s OBX Taste of the Beach for March 26 – 29, 2020. OBRA will not meet during the peak summer season, but will regroup for their first meeting of the 2019 – 2020 year on September 10.

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Significant savings on services your business uses every day.

FOOD SAFETY & ALCOHOL SERVER TRAINING Nationally recognized and accredited foodservice sanitation, alcohol server, and allergen training for managers and employees.

20% discount on all ServSafe products.

Call 919-844-0098 or visit NCRLA.org/servsafe-certification-courses.

STR Exclusive discounts on various customizable regional reports and industry profiles, including the STR Report.

Call 615-824-8664 or visit STR.com.

COMPLIMENTARY NATIONAL RESTAURANT ASSOCIATION MEMBERSHIP Receive benefits offered through the National Restaurant Association, including industry trends, services, and more. Call 800-424-5156 or visit Restaurant.org/Membership/Tools-Solutions.

WORKFORCE DEVELOPMENT/TRAINING Workforce development and training solutions to help meet your needs.

Mentorships and job placements are available. Call 919-844-0098 or visit NCRLA.org/foundation/prostart.

BUSINESS DISCOUNTS WITH AHLA NCRLA members who elect to join American Hotel and Lodging Association receive exclusive discounts on staffing solutions through Hcareers, STR reports, music licensing, and more. Call 202-289-3100 or visit AHLA.com to access research, statistics, and cost-saving solutions.

WEBSITE ACCESSIBILITY SOLUTIONS Save up to 30% on web accessibility tools and monthly hosting plans to make your website ADA (American Disabilities Act) compliant.

VisitDigiProMedia.com/NatRest for details or email sales@digipromedia.com.

CREDIT & DEBIT CARD PROCESSING/ PAYROLL SERVICES Benefit from payment processing solutions, loyalty programs, fair pricing, and more. Plus, enjoy superior service that’s available 24/7 with the most reliable data security solution in the country.

Call 888-963-3600 or visit HeartlandPaymentSystems.com.

HEALTH INSURANCE OPTIONS Get easy access to healthcare coverage and other valuable resources and tools. Receive an exclusive 5% discount on group health plans. Call 301-865-7058 or visit UHCTogether.com/forms/NCRLA/form41146.gsp.

CLASS ACTION SETTLEMENT OPPORTUNITIES Class Action Capital specializes in the early identification of class action settlement opportunities for restaurant and hotels. Learn more at 914-200-0020 or ClassActionCapital.com/ncrla.

LIQUOR LIABILITY INSURANCE Restaurants, bars, and taverns, receive 20% off your liquor liability insurance with Hospitality Insurance Group (HIG). Keep your local insurance agent or use one of theirs. Visit HMIC.com and click on the contact tab, or call 508-366-1140.

STAFFING SOLUTIONS Receive a 20% discount on the AHLA Career Center, powered by Hcareers, the nation’s leading hospitality job board. Visit AHLA.com and click “Career Development.”

LOCAL HOTEL WAGE AND BENEFITS DATA A dynamic, regularly updated wage and benefits survey tool that helps hotel managers better understand how their hotel compares to others in their area. Call 866-845-8600 or visit LobbyLights.com.

STREAMLINED ALCOHOL PAYMENTS Simplify alcohol purchase payments, ensure compliance, and track purchase data securely with Fintech. 50% off setup fees and ongoing preferred pricing. Visit go.fintech.com/NorthCarolinaRLA.

MUSIC LICENSING Broadcast Music, Inc. is the bridge between songwriters and the businesses and organizations that want to play their music publicly. Save up to 20% on annual fees. Call 888-689-5264 or visit BMI.com.

222 NORTH PERSON ST, SUITE 210 | RALEIGH, NC 27601 | 919.844.0098 | NCRLA.ORG

Member Moments A Look at North Carolina’s Hospitality Industry Helping Others

Aloft Asheville Downtown

Aloft Asheville Downtown recently accepted the Alice S. Marriott Spirit To Serve award. The international award, which receives hundreds of nominations each year, was created to honor the late Marriott cofounder Alice S. Marriott — mother of Executive Chairman/Chairman of the Board Bill Marriott. Recipients exemplify Alice’s philosophy, “By generously giving our time, energy, and resources, we enrich the lives of others.”

McKibbon Hospitality’s Aloft Asheville Downtown is the first from the Aloft brand to be honored with the Spirit to Serve award. Aloft Asheville was recognized for their extensive charity work, including providing shelter to the homeless through Homeward Bound; working to end hunger with MANNA FoodBank; teaching students career and life skills through Eliada Homes; providing care to special needs and disadvantaged children; raising awareness for breast cancer; improving the arts and education in the Asheville community; and rehoming hundreds of rescue dogs through their successful foster dog program, Charlie’s Angels Animal Rescue.

LM Restaurants

After sustaining water damage during Hurricane Florence, Oceanic restaurant in Wrightsville Beach remained closed for months. On April 20, the historic establishment, which is part of LM Restaurants, opened its doors for the first time since the storm passed for a one-dayonly “pre-opening practice session.” The Oceanic staff served both lunch and dinner and all proceeds went to the Wilmington Area Rebuilding Ministry.

Ruth’s Chris

North Carolina’s restaurant industry has always been known for giving back to local communities and helping families and individuals in need. Charlotte restaurateur Jeff Conway epitomizes this spirit of giving. For several years, Conway has provided a delicious four-course meal annually to 100 inmates at the correctional institution in Kershaw, SC. The owner of four Ruth’s Chris restaurants, as well as several other establishments, provides the inmates with a culinary treat akin to what you would experience at Ruth’s Chris. The most recent meal included shrimp, crab cakes, salad, steak, spinach, and bread pudding. It was prepared by Chef Chase Gomez and Sous Chef Michael Wilson. After the meal, NFL veteran Renaldo Wynn gave a motivational speech to the inmates, who expressed their appreciation for the event.

Share Your Moments We want to share your stories of helping others as well as your successes! Please send the details of your team doing good in the community or any recent awards and recognition that you or your company has received to Margo Metzger at mmetzger@ncrla.org. We’ll do our best to include them in an upcoming “Member Moments.”

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Visitor Spending in NC Grows at Near Record Pace

À La Carte

A sampler of hospitality news stories

Tourism in North Carolina generated record visitor spending in 2018 with a total of $25.3 billion. The 5.6 percent increase from 2017 was North Carolina’s largest percentage growth in travel and tourism spending since 2011. Additionally, tourism industrysupported employment topped 230,000 jobs to set another record for the state. Growth in direct tourism employment was up 2.2 percent from 2017 and payroll income grew 5.3 percent to top $6.3 billion.

The figures are from research commissioned by Visit North Carolina, a unit of the Economic Development Partnership of North Carolina, and conducted by the US Travel Association. Other findings from the study showed state and local tax receipts from visitor spending rose 4.8 percent to more than $2 billion. Visitors spent more than $69 million per day in North Carolina last year and contributed about $5.6 million per day in state and local tax revenues as a result of that spending.

Offer Your Staff Training and Certification with ServSuccess To ensure restaurant professionals have clear career-path goals, the National Restaurant Association recently launched ServSuccess™.

The comprehensive career-development offering features three levels of professional certification, online training, and assessments.

It helps employees visualize a career roadmap and sets industry-wide standards for advancement. ServSuccess features: • Professional Certifications for Restaurant Professional, Restaurant Supervisor, and Restaurant Manager • Online Learning Suites with content designed to fit into busy restaurant work schedules • Interactive Study Guides to promote learning and retention using the latest brain science Learn more and sign up at ServSuccess.com.

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NC Hospitality Industry Awards $50,500 in Scholarships and Grants We are pleased to announce that 17 students and one educator in North Carolina have been selected to receive $50,500 in scholarships and grant funding. The scholarships are given to students pursuing post-secondary studies in culinary arts, restaurant management, or similar fields, or to students whose parents are current hospitality industry employees.

Grant funding supports educators in those fields.

“The goal of NCHEF is to attract, educate, and retain a professional workforce for the hospitality industry,” said NCRLA and NCHEF President & CEO Lynn Minges. “Because of our industry’s generous donations, these deserving students receive financial support to prepare them for careers in the industry.”

Foraged Mushroom Supplier Receives Approval in NC NCRLA has been working with the NC Department of Health and Human Services to review Washington state-based Foods In Season and ensure that they meet the qualifications to provide foraged mushrooms to NC restaurants.

Foods In Season has received an HACCPbased Good Manufacturing Practices (GMPs) Food Safety certificate from an independent auditor. Their invoices provide

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information on species and weight of the product delivered, and should be treated as mushroom tags to be retained for 30 days after the product is used. Foods In Season is considered an approved source for wild mushrooms.

A guidance memo is being sent to all local health departments, alerting inspectors that Food In Season is an approved source and product should not be removed or denatured. If you have questions, please contact Alyssa Barkley at 919-844-7883 or abarkley@ncrla.org.

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Contact your local Independent Agent or visit StateAuto.com to learn more about how we can help your bottom line soar.

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