At Your Service, Summer 2018 by NC Restaurant & Lodging Association

at your

Official Magazine of North Carolina Restaurant & Lodging Association

Service Exponential Growth: 2018 NCRLExpo aims to be biggest and best yet Are Gig Workers Right for Your Buesinesss? Summer 2018 Issue, Vol. 7, Issue 2 www.ncrla.org

From finding ingredients that inspire you in the kitchen to managing inventory, planning your menu, scheduling your staff and connecting to customers online – the demands of your restaurant can be hard work. We have the innovative food products, industry expertise and business tools you need to make it all easy.

WE HELP YOU MAKE IT™ Find out how at www.usfoods.com

Serving your restaurant with amazing business solutions.

With Heartland on your side, we guarantee your restaurant will be equipped with the best payments, payroll, point-of-sale, customer engagement and lending products in the industry. Product features include: Payments: · Contactless Payments: Enhance your diners experience from ordering to checkout with quick, efficient and secure technology. · Mobile Payments: Accept mobile payments in minutes right on your phone or tablet in two easy steps. · EMV Speed and Security: Process EMV card payments 4 times faster than the industry average while keeping customer data secure. Payroll+HR: Reduce administrative tasks and ensure your business is compliant with Heartland’s payroll processing and HR administrative tools.

Point of Sale: Choose from a full stack of restaurant management platforms allowing you to capture, view, analyze and take action based on your needs. Customer Engagement: · Analytics: Leverage your restaurant’s data to predict and understand guest behavior with an easy-to-implement and powerful system that efficiently compiles information in a way that’s useful to you. · Gift+Reward Features: Attract new customers and turn patrons into loyal fans with customer engagement solutions. Lending: Secure loan terms and rates with one of Heartland’s reputable lending partners.

table of contents in every issue

6 12 13 22 26

Letter from the Chair and the President NCRLA Chair Billy Sewell and President & CEO Lynn Minges Upcoming Events Network with North Carolina’s hospitality industry leaders at one of NCRLA’s upcoming events Welcome New Members NCRLA welcomes several new members from across North Carolina Benefits of Membership NCRLA offers new, exciting benefits for members A la Carte A sampler of hospitality-related news stories

features

8 10 14 15

NCRLA EXECUTIVE BOARD OF DIRECTORS BILLY SEWELL, Chair Platinum Corral, LLC JIM BELEY The Umstead Hotel & Spa SCOTT BREWTON Pinehurst Resort & Spa DAN FREELAND Concord Hospitality Enterprises PHIL FRIEDMAN Salsarita’s Fresh Cantina DORIS HUEBNER F & D Huebner, LLC JOEL GRIFFIN Griffin Stafford Hospitality, LLC ALAN HILTON S & D Coffee, Inc. 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

NC Restaurant & Lodging Expo Move to Charlotte to bring biggest and best expo yet 41 Degree Cold Hold Changes to cold holding temperatures in NC NC General Assembly Short session speeds by at record pace New Member Benefits NCRLA Partnerships Deliver New Member Benefits

Crisis Communications Lessons learned from the Starbucks incident

ABC Law Who’s to blame when celebration turns to tragedy?

Workforce Solutions Tapping into the gig economy

Member Moments A look at the North Carolina hospitality industry’s recent philanthropic efforts

ProStart NC Students win big at national competition

ROBERT M. O’HALLORAN East Carolina University RASHMIKANT “HAJI” PATEL Ex-officio Asian American Hotel Owners Assoc. NISHITH “NISH” PATEL Beacon IMG, Inc. VINAY PATEL SREE Hotels, LLC TOM SASSER Burke Hospitality JASON SMITH 18 Restaurant Group STEVE THANHAUSER Angus Barn, Ltd. CHARLES THOMPSON The Inn on Biltmore Estate LANCE TRENARY Golden Corral Corporation STERLING F. WEBSTER IV Hilton Garden Inn, Outer Banks Kitty Hawk & Ramada Plaza, Nags Head CRISSY WRIGHT Charlotte Marriott City Center

COVER PHOTO: Charlotte Regional Visitors Authority www.crva.com

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Exclusive health care pricing and solutions for NCRLA members. UnitedHealthcare works with the National Restaurant Association and the North Carolina Restaurant & Lodging Association (NCRLA) in a strategic alliance, offering exclusive health care pricing and solutions for every size NCRLA member business -- including small, midsize and large employers. 4 ways NCRLA member businesses can access UnitedHealthcare’s exclusive offerings: 1 For small businesses with 2-99 employees: New Restaurant

& Hospitality Association Benefit Trust option for fully insured hospitality groups.

2 For businesses with 51 or more employees: Up to a 5 percent

discount on manual medical rates for fully insured groups. 3 For large self-funded businesses with 100 or more employees:

An annual invoice credit of up to 5 percent on administrative fees for new ASO medical products. 4 For businesses of all sizes: Up to a 5 percent discount on specialty benefits products (dental, vision,

life, disability, accident and critical illness) for fully insured groups — in addition to all other discounts including bundling benefits programs.

New Restaurant & Hospitality Association Benefit Trust option for small employers. The new Restaurant & Hospitality Association Benefit Trust is now available to quote as an option for NCRLA hospitality member groups. The RHA Benefit Trust is a new health benefits solution insured and serviced by UnitedHealthcare and focused on small employers with 2-99 eligible employees. This solution can offer NCRLA members some of the same advantages of large employers regarding more health plan designs for product and potential pricing flexibility. Available nationally, the new RHA Benefit Trust features a product portfolio with more than 120 health plan designs.

Contact Moriah Murphy at moriah.murphy@optum.com for more information on the hospitality associations alliance program.

Contact your broker or UnitedHealthcare representative to get a UnitedHealthcare quote.

Visit uhctogether.com/ncrla.

Some restrictions and exclusions apply. Discounts are available only to members of the National Restaurant Association and its state restaurant association partners; and may vary by location and group size. The Restaurant & Hospitality Association Benefit Trust is not available in Minnesota, New York or Vermont. Insurance coverage provided by or through UnitedHealthcare Insurance Company, UnitedHealthcare Insurance Company of Illinois, Inc. or their affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through UnitedHealthcare of North Carolina, Inc. Facebook.com/UnitedHealthcare D30404 5/18

Twitter.com/UHC

Instagram.com/UnitedHealthcare

YouTube.com/UnitedHealthcare

letter from the NCRLA Chair and CEO

As we head into summer, our team is gearing up for the major industry event of the year. With the move to Charlotte, the North Carolina Restaurant & Lodging Expo is slated to be the biggest in history with the most exciting programming to date. Hundreds of hospitality professionals will descend on the Charlotte Convention Center Aug. 27-28 for this don’t miss experience. This year’s expo brings enhanced learning sessions, more live demos geared toward culinary teams, plus added opportunities to meet suppliers who can enhance your business and save you money. Pair that with scores of food and beverage purveyors to browse and taste, and you have the makings of great show. Attendees will hear from dynamic speakers on thought-provoking and relevant topics curated by our talented team here at NCRLA. The keynote is Chef Scott Crawford who will share his personal story of overcoming addiction in a workplace culture imbued with alcohol. Just to name a few others, we’ll address the gig workforce, harassment policies, cold holding changes, and human trafficking. NCRLA members can register for free (including access to all education sessions and the show floor) using promo code NCRLA2018 at www.ncrl-expo.com. We encourage you to bring your entire team as this show truly has something for everyone. The Expo also features an evening celebration showcasing top culinary talent from across the state. On Monday, Aug. 27 our final competition in the NCRLA Chef Showdown will take place at Aria inside the elegant Founder’s Hall just blocks away from the convention center. Don’t miss the chance to taste savory and sweet chef creations plus cocktails made with a competitive spirit. Every dish and drink will feature North Carolina ingredients thanks to our partnership with presenting sponsor Got to be NC Agriculture. Due to strong interest, we introduced three regional semi-final rounds this year — in New Bern, Hickory and Raleigh — prior to the main event. This new format has enabled us to get to know the competitors and hear their stories, and we have been blown away by the passion and skill of these folks. Join us as the 21 highest-rated competitors from these regional contests vie for the coveted titles of “NCRLA Chef of the Year” and “NCRLA Pastry Chef of the Year” — and back by popular demand — “NCRLA Mixologist of the Year.” Tickets include food and drink tastings from 21 chefs and 10 beverage vendors including North Carolina distilleries, wineries and breweries. Grab yours now at www.ncrla.org, and we’ll see you in Charlotte!

Lynn Minges NCRLA President & CEO

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Chief Operating Officer/ Membership Development/ Health and Safety Regulations/ ALYSSA BARKLEY, IOM Director of Government Affairs/ Staff Attorney KIMBERLY SIOMKOS Director of Communications MARGO METZGER Director of Marketing and Business Development MINDY WHARTON Director of Hospitality Education MANDY HINES Database Manager & Membership Coordinator NATALIE COX Executive Assistant/ NCRLA Board Liaison AMY BERENSON General Counsel & Lobbyist FRANK GRAY Printer CHAMBLEE GRAPHICS, INC. Graphics and Design WHITNEY GOULDING DESIGNS whitney.designer@gmail.com BUSINESS OFFICE 222 North Person Street, Suite 210 Raleigh, N.C. 27601 Phone: (919) 844-0098 Website: www.ncrla.org For advertising and sponsorship inquiries, contact Director of Marketing and Business Development, MINDY WHARTON, at mwharton@ncrla.org.

Billy Sewell NCRLA Board Chair

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

IT TAKES MORE ... than a top-notch facility, friendly service and a respected brand to be successful in the hospitality or restaurant business. It takes constant attention to detail, starting with the added amenities that make guests feel that you’re going the extra mile for them. Exceptional beverage service is one aspect that can truly enhance a guest’s experience. For industry professionals focused on exceeding guest expectations and providing quality beverages, partnering with S&D Coffee & Tea is the ideal choice. Headquartered in Concord, NC, S&D is a major manufacturer of coffee and tea for not only the Charlotte area, but for customers across the country in the foodservice, convenience and consumer packaged goods industries. S&D has been helping restaurateurs, food and beverage managers and hospitality leaders develop successful beverage strategies for decades — combining industry expertise, deep experience and real-world market insights to deliver innovative solutions.

Since 1927, S&D Coffee has been importing, roasting, packaging and delivering coffee out of the Charlotte/Concord area.

Backed by more than 90 years in the coffee business, S&D blends, roasts and packages a selection of premium coffees ideal for service in a variety of locations — from hotel lobbies and guest rooms to restaurants and event spaces, offices, schools, colleges and universities, In addition to our coffee products, S&D offers an assortment of iced teas, hot teas and refreshing juices to support a complete beverage platform that is tailored to fit your specific needs. Learn more about S&D and its beverage solutions by visiting www.sdcoffeetea.com.

LOCALLY ROASTED & PACKAGED. WORLD CLASS SERVICE SUPPORT 24/7/365. For more information contact a S&D sales representative. www.sdcoffeetea.com

NCRLEXPO

AUGUST 27- 28 | 2018 Charlotte Convention Center

CHARLOTTE, NC Supported by:

The North Carolina Restaurant & Lodging Expo is the only event in North Carolina to bring together all sectors of the restaurant, foodservice, lodging and hospitality industries under one roof. This year the show will be in Charlotte for the first time to give attendees in the western half of the state easier access to the event. The move has already sparked great interest from both industry professionals and suppliers. About 200 exhibitors are expected participate and will showcase the latest products, services and technologies for the industry. The NCRLA has spearheaded the development of the educational sessions. Members were asked what topics are most relevant to enhancing their business, which translated to a comprehensive and leading-edge program of education that will provide the best tools to grow and improve your business. View the session schedule at www.NCRLA-Expo.com. What’s the schedule? Monday, Aug. 27, 10 a.m. – 5 p.m.: Exhibit floor open, Charlotte Convention Center Tuesday, Aug. 28, 10 a.m. – 4 p.m.: Exhibit floor open, Charlotte Convention Center Where is the Expo taking place? Charlotte Convention Center, 501 S. College Street, Uptown Charlotte, NC 28202

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Who will exhibit? Companies representing food, beverages, apparel and uniforms, furnishings and décor, equipment, tableware, technology, supplies and services seeking to connect with restaurant and lodging establishments in North Carolina. How do I register? Restaurant and lodging attendees: Register at www.NCRL-Expo.com with the promo code NCRLA18 for a FREE badge. Suppliers and allied partners: Contact Jon Everett at jon.everett@expodevo.com to learn how to become an exhibitor at the Expo. What does registration include? The registration fee (waived with the NCRLA18 code) includes: access to the exhibit hall both days; all educational programs; culinary competitions; and culinary demonstrations. The exhibit hall will feature numerous tasting pavilions, including the “Got to be NC” area highlighting North Carolina products, including meats, produce, beer, wine and spirits. Along with the tasting pavilions, food and beverage distributors such as Cheerwine, Le Bleu, Performance Foodservice, Sysco US Foods will offer various samplings. For a full list of exhibitors, visit www.NCRL-Expo.com. Where do I get my badge? Badges will not be mailed. Bring the confirmation email you receive upon registering to the on-site registration desk at the Charlotte Convention Center to scan the barcode and receive your badge. Who can attend? Anyone involved in the running of restaurants, bars and lodging establishments looking for the latest

products, services and technologies, such as, but not limited to: • • • • •

Restaurant owners General managers Executive chefs Bar managers Hotel managers

• • •

Caterers/event planners Purchasing managers F&B directors

Can I use a credit card to register? Yes, we accept all major credit cards (American Express, Discover, MasterCard, VISA).

There are two entrances to the Charlotte Convention Center, one is located on College Street and a second on East Martin Luther King Jr. Boulevard. The NASCAR Hall of Fame parking deck, located at 500 S. Brevard St. is also connected to the Charlotte Convention Center via a convenient over street walkway. More parking options are available at prevailing rates in parking lots and towers surrounding the Charlotte Convention Center. The Westin Charlotte hotel also offers more than 1,300 spaces, conveniently located on the corner of Stonewall and College streets, across the street from the Charlotte Convention Center. Additionally, metered parking is available along many of the main streets in Center City. Oversize vehicle parking is available across from the NASCAR Hall of Fame site at the Caldwell Street parking lot. For detailed driving directions please visit www. charlotteconventionctr. com/directions-parking.

AUG

27- 28

Charlotte Con

CHARLO

How do I make hotel reservations? Book your hotel within our discounted group block at the Courtyard by Marriott Charlotte City Center. Visit http://www.ncrl-expo. com/hotel--travel to book your hotel. Are children allowed in the show? No one under the age of 18 will be allowed in the exhibit hall. Are culinary students allowed in the show? Culinary and hospitality program students may only attend with educators/faculty organizing a group visit that is approved by both the college and show management on Tuesday, August 28, from 2 p.m. – 4 p.m. Where do I park? The Charlotte Convention Center is located at 501 S College Street, Charlotte, NC, 28202.

Who do I contact if I have additional questions? Please contact the North Carolina Restaurant & Lodging Expo show management team at info@ncrlexpo.com or 770-432-4200 ext. 112.

Please Note: The North Carolina Restaurant & Lodging Expo is for trade only and not open to the public. z

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41 DEGREE COLD HOLD

Changes Coming to Cold Holding Regs Is your restaurant ready?

In a few short months, health department inspectors will be patrolling based on new rules. Question: When do the changes take place? Answer: On January 1st, 2019 Question: What rules are affected on this date? Answer: Cold Holding Temperatures, Date Marking, Cooling, Thawing, and Slacking; Possibly Cold Holding Capacities Question: What cold holding rules change on January 1st, 2019? Answer: All TCS/PH (Time/Temperature Control for Safety) (Potentially Hazardous) foods must be maintained at 41°F or less except for times of preparation, cooking, cooling, thawing, slacking, hot holding or using a TPHC method Question: What if TCS foods are found at temperatures above 41°F. 10

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Answer: TCS/PH foods may have to be properly disposed of if found at temperatures greater than 41°F. Specific guidance on temperature abuse and time out of temperature will be forthcoming. Other circumstantial options, such as cooling down dependent on preparation time, may be offered depending on a variety of factors. Question: What is a TPHC method? Answer: TPHC stands for “Time as a Public Health Control”. Using a written procedure and a method of tracking time, some foods may be left out of temperature control for a period of time to be served or consumed and still be considered a safe product. Question: What will change with date marking on January 1st, 2019? Answer: The reduced date marking allowance of 4 days is no longer permissible at temperatures between 42°F and 45°F. Since all foods will now be maintained at 41°F or below, applicable foods may be kept for up to 7 days.

Question: If I prepare foods on January 1st, 2019 or earlier, would they carry over the full 7 days into the new year? Answer: If the prepared foods were maintained between 42°F and 45°F on January 1st, 2019 or earlier, they will need to be consumed, sold, or discarded by January 1st, 2019. If the prepared foods were maintained at 41°F or below, they are given the full 7 days shelf life and may carry over into the new year. Question: What are the changes regarding the cooling of TCS/PH foods? Answer: The timing of the cooling remains unchanged, but TCS foods will need to cool down to 41°F under the same parameters. Question: What are the changes regarding thawing and slacking of TCS/PH foods? Answer: Frozen foods slacking under refrigeration will need to remain at 41°F or below. Thawing foods in refrigeration or submerged under running water would need to remain at 41°F or below. Question: Can I obtain a variance to keep my foods at 45°F? Answer: No. Variances may only be granted if a there is no resulting health hazard. There is a significant health hazard for maintaining TCS/PH foods above 41°F.

Check out our Cold Holding Webinar at ncrla.org/research

CHECKLIST FOR ASSESSING AND ADDRESSING PROBLEMS ONCE A COLD HOLD VIOLATION IS OBSERVED: Food

Are temperatures being taken often and properly to assess equipment? (only go 1-2” from top of food when taking temperatures)

q q

Are food containers overfilled?

Can some food that is needed less frequently be moved to walk-in or long term cold storage?

Can non-TCS (Time/Temperature Control for Safety) foods be removed or rearranged to warmer areas of the cooler?

Processes

Are all foods cooled to below 41°F before placing in holding units (buffets, prep coolers, salad bars)?

Are canned foods, whole tomatoes and melons, mayonnaise for deli salads, and other items pre-chilled to help with temperature control?

Can Time as a Public Health Control (TPHC) be used as a good option for items that cannot be maintained below 41°F?

Are there packaged items, like dressing cups, that can be moved away from top of prep cooler to help keep them below 41°F? Equipment

Are compressor fans blocked or is air flow restricted inside unit?

Are prep unit tops and doors kept closed when not in use?

Is the ambient air temperature of the kitchen appropriate for the equipment?

Does equipment need maintenance (more coolant, coil cleaning, or gasket repair)?

Is there adequate air flow outside the prep cooler unit for air intake? z

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2018 calendar of events Network with North Carolina’s hospitality industry leaders at one of NCRLA’s upcoming events. Learn more at www.ncrla.org.

JULY

17.18

23.18

NC HEF Summer Enrichment Series: Distillery and Restaurant Operations Tour Top of the Hill Restaurant, Brewery and Distillery | Chapel Hill, NC 10:00 a.m. – 2 p.m.

AUGUST

27.18

NC Restaurant and Lodging EXPO Charlotte Convention Center Uptown Charlotte, NC 10 a.m. – 5 p.m.

29.18

NCRLA Board Meeting NCRLA Headquarters Raleigh, NC

10:00 a.m. – 2:00 p.m.

9:00 a.m.

AUGUST

27-28.18

OCTOBER

NC ProStart Educator Workshop Koury Convention Center Greensboro, NC

NCRLA Chef Showdown Aria at Founders Hall in the Bank of America Center Uptown Charlotte, NC 5:30 p.m.

JULY

30.18 NC HEF Summer Enrichment Series: Hotel Operations Tour The Umstead Spa & Resort Cary, NC 10:00 a.m. – 2 p.m.

SEPTEMBER

24.18

‘Que and Brew PAC Fundraiser SpringHill Suites Charlotte, NC 5:00 p.m. – 8:00 p.m.

OCTOBER

29.18

Manteo to Murphy PAC Fundraiser The Pavilion at the Angus Barn Raleigh, NC 5:30 – 9 p.m.

NCRLA Helpline Do you have questions about legal or regulatory issues that impact your business? NCRLA can help. Membership grants you three hours of legal assistance from our staff attorney, Kim Siomkos, as well as help from our on-staff health and safety regulations expert, Alyssa Barkley. Contact Kim at 919-861-0942 or ksiomkos@ncrla.org or Alyssa at 919-844-7883 or abarkley@ncrla.org.

welcome new NCRLA members NCRLA welcomes new members from across North Carolina Go to www.ncrla.org to learn more about NCRLA and to download a membership application. New Allied Members AssuredPartners, Raleigh Axis Marketing, Charlotte Bankers Insurance, Asheville Broadcast Agency, Franklin First Security Company, Inc., Hickory HireScene, Raleigh HoodGuyz, Greensboro Johnston County CVB, Smithfield NC Education Lottery, Raleigh State Auto Insurance, Apex

Beef House, Louisburg Bel Gusto, Durham Cook Hospitality, Cary -Deanâ&#x20AC;&#x2122;s Kitchen & Bar, Cary -Twisted Fork, Raleigh Firehouse Subs (61 NC Locations) Gate City Billiards, Greensboro Liberty Tavern, Wilmington Liquid Room, Wilmington McNinch House Restaurant, Charlotte ORO, Raleigh Rebellion, Wilmington Silver Moon Saloon, Winston-Salem Single Brothers, Winston-Salem Sly Fox, Southern Pines The Deck at River Twist, Jamestown The Varsity Lounge and Grill, Durham

New Lodging Members Holiday Inn Downtown, Raleigh Millennium Hotel, Durham Winkler Organization, Boone New Restaurant Members Barefoot Bernies, 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, from event sponsorships, advertising and more. NCRLA thanks those who help make the association strong.

DIAMOND

TITANIUM

Charlotte a

PLATINUM

company

ÂŽ

RALEIGH

GOLD

SILVER

View our corporate partnership opportunities at www.ncrla.org

For more information on how you or your organization can become a corporate partner 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.

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NC GENERAL ASSEMBLY

Short Session Speeds by at Record Pace The North Carolina General Assembly operates on a biennial schedule. In odd numbered years, legislators from across the state come to Raleigh for a “long session” which runs a number of months beginning in January. For even numbered years, the General Assembly comes together for the “short session,” a misnomer to be sure, which can often run just as long. However, 2018 has been uncharacteristically short, with lawmakers eager to return to their districts for the quickly-approaching general election in November. Leaders in the House and Senate are focused on just a few key issues, including budget technical corrections and school safety. As this issue of At Your Service goes to press, most of leadership’s priority items have been accomplished or are in the final stages of process, suggesting our legislative days are numbered. Despite the time crunch, NCRLA is hard at work to protect and promote the hospitality industry. In fact, the industry has already secured early wins, particularly in the workforce development arena, as the industry continues efforts to foster a solid talent pipeline. Within this year’s budget are two NCRLA priorities. The first is $200,000 in state funding to be matched by the private sector, for the North Carolina Hospitality Education Foundation. These dollars will be used to help bolster and expand the ProStart program, engaging more schools, teachers and students statewide. The budget also allocates

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nearly $15 million for career and technical education programs at the community college level. During the short session, ProStart students from North Buncombe High School who recently took 2nd place in the Restaurant Management Competition at the National ProStart Invitational, visited with state officials and were publicly recognized for their achievements in securing North Carolina’s greatest finish to date. (See story on pg. 24) Second, NCRLA also advocated for an additional $1,000,000 for tourism advertising, and these nonrecurring dollars were included in the state budget. Tourism promotional funding is a critical economic driver for North Carolina’s hospitality businesses, as visitors spend $28.6 billion in restaurants and hotels during their stay. Despite being the 6th most visited state, North Carolina is currently ranked 28 th in terms of state funding for tourism promotion, falling behind several of our neighboring competitors. This funding will be a helpful start in efforts to regain our competitive edge. We also worked to secure several common-sense reforms including mixed beverage tax stamp placement, mixed-beverage consumption on the golf course, and appropriate placement of human trafficking posters. As always, we continued to voice opposition to new meals taxes and noncompliant occupancy taxes. With conversations about the 2019 session already underway, we are busy laying the groundwork for next year, conversing with elected officials on the need to level the playing field between traditional lodging establishments and short-term rentals.

For more information, contact Kim Siomkos, Director of Government Affairs at NCRLA: ksiomkos@ncrla.org. z

OPERATIONAL BENEFITS

NCRLA Partnerships Deliver New Member Benefits

HIRE SCENE Workforce issues are an ongoing challenge, and NCRLA is committed to being part of the solution by is helping our members tap into the “gig economy.” To that end, we have partnered with Hire Scene, a company based here in North Carolina, to provide members with access to hundreds, if not thousands, of short-term employees to meet their staffing needs. Hire Scene uses a mobile app to instantly connect employers with a network of pre-qualified and fully vetted employees in real time. In addition to presenting this solution, we have secured NCRLA member-only discounts to keep costs manageable for our members.

STATE AUTO Another service NCRLA has worked to secure for our members is a dividend program through insurance company State Auto. In addition improving your bottom line, this resource provides 1) Comprehensive and customizable insurance protection endorsed by NCRLA 2) Competitive premiums and 3) Access to local agents in your communities you can trust. Some examples of the coverages that are tailored to your restaurant include: employment practice liability; business income and dependent property; business income on foodborne illness; food spoilage; data compromise plus; water backup; and utilities services – direct and indirect damage.

ALTUS Take your conversations wherever your business leads you with Altus Business Voice. Customers enjoy unlimited local and domestic longdistance calling, plus all of the essential features and functionality you need to run your business. Easily connect branch locations, mobile employees, and remote workers to your corporate office. Manage your entire VoIP phone system from our intuitive online web portal, and you will never again worry about software updates or maintaining PBX hardware in some dark closet at your office. We are excited to offer all members of NCRLA a 10% discount for this service.

For more information visit www.ncrla.org/membership/operational-benefits/ z

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LESSONS LEARNED FROM THE STARBUCKS INCIDENT On Thursday, April 12, two black men, Donte Robinson and Rashon Nelson, entered a Philadelphia Starbucks for a casual business meeting. Waiting on a third party to join, they lingered near the entrance and used the restroom in the interim. The manager of the Starbucks found this activity suspicious and phoned the police to remove Robinson and Nelson from the premises, resulting in six officers dispatched to the scene and the two men arrested for trespassing. Meanwhile, a bystander filmed the arrests on his mobile phone, posted it to the internet and the footage instantly went viral. Every news outlet from TIME to the Washington Post covered the story for weeks, and the fallout was immediate for Starbucks. Though the arrests didn’t affect sales, customers from all over called for a boycott of the franchise and the company had to quickly turn to crisis mode. CEO Kevin Johnson released two statements to the press and handled many media interviews to smooth over the tensions created by the arrests. He also flew to Philadelphia to meet with the men and listen to their stories inperson. He said in an interview following the incident, “All companies make mistakes. Great ones learn from them.” In a time when casual spectators can spread information as effectively as traditional news outlets, organizational mishaps have the chance to be magnified on a global stage. The restaurant and hospitality industries have a constant flow of customers, 16

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hosting patrons from all walks of life at all times of day and night. It’s important to stay ahead of the curve and have a plan to mitigate potential damage or quickly repair reputations. Here are a few important takeaways from Starbucks’ racial bias incident to consider before, during and after a crisis hits. BEFORE: Identify your weaknesses. Starbucks was ill-prepared, which made the clean-up effort more complicated. Avoid blind spots by completing an honest audit of vulnerabilities or areas where customer-facing staff members may need additional training. Consider formal sensitivity and/or racial bias trainings so employees can identify any unconscious stereotypes, discuss how these biases influence their interactions at work, how it affects the company and ways to counteract them. In smaller businesses, host regular meetings with managers and employees to connect on day-to-day activities, as well as flag reoccurring challenges or customer incidents that could turn into potential problems. DURING: Stay calm and act intentionally. Starbucks CEO Kevin Johnson released a quick apology before diving into the details of the problem at hand. This generated public outcry, causing not only the need for another statement to properly address the issue, but to also make up for the first one. In today’s world of immediate

communication, recognize the time-sensitivity tied to the situation but don’t rush through an apology at the expense of accuracy. It is acceptable to say the organization is further investigating a matter before issuing a formal statement. Then, gather necessary information as calmly and quickly as possible and keep any statements simple and to the point. Claim responsibility for any errors by apologizing for the actual oversight, not the reaction it garnered, and outline the measures to turn things around. AFTER: Make it right. Prove to the community that you are more than this misstep. Evaluate the need to establish more distinct protocols or implement best practices, and communicate those changes to stakeholders. In this case, Johnson flew to Philadelphia to personally meet and apologize to the men, but he didn’t stop there. He also closed many U.S. Starbucks locations on May 29 to host education sessions to prevent discrimination and formally announced its policy that anyone is welcome to sit in its cafes without making a purchase.

Largemouth is a corporate sponsor of NCRLA. To discuss how to establish an issues management communication plan and manage crisis response, contact Largemouth at info@largemouthpr.com or call at 919.459.6450.

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b u t t e r b a l l f o o d s e rv i c e . c o m / s e rv e s a n d w i c h Sources: Butterball Proprietary Consumer Research, 2017. Y&R BrandAsset Valuator, 2016.

BTB18-001A_SandwichAd_NCRLA_775x4835_M1.indd 1

5/16/18 9:31 AM

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ABC LAW

Who’s to Blame when Celebration Turns to Tragedy?

A hotel guest who drank herself to death at the hotel restaurant was determined to be at fault and barred from recovery under North Carolina contributory negligence rule. Thomas and Lisa Davis checked into the Crowne Plaza Tennis & Golf Resort (resort) in Asheville on October 5, 2012, to celebrate their tenth wedding anniversary. What started as a celebration quickly turned to tragedy. The Davises dined at Mulligan’s, a bar and restaurant located within the resort. During their four and a half hour dinner, the couple ate and ordered 24 alcoholic drinks between the two of them. Mrs. Davis consumed at least ten of those drinks and was visibly intoxicated. At the end of dinner, she was unable to walk back to her room, so a hotel employee took her back to her room

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in a wheelchair. When Mr. Davis woke up the next morning, he discovered his wife on the floor. She had died of alcohol poisoning. In July 2013, Mr. Davis sued the resort on behalf of his wife’s estate. He alleged the following causes of action: (1) common law dram shop liability for the over service of alcohol; (2) negligent aid, rescue, or assistance; and (3) punitive damages. In response, the resort moved to dismiss the complaint for the failure of Mr. Davis to state a claim upon which relief could be granted [Rule 12(b)(6)] and asserted a defense of contributory negligence [a person contributes to the harm they suffered]. In North Carolina, a finding that Mrs. Davis contributed to her own injuries or damages prevents recovery except in limited circumstances. On November 25, 2013, the trial court dismissed Mr. Davis’ dram shop claim and the related punitive damages claim. The negligent aid, rescue, or

PRACTICAL TIPS FOR ALCOHOL SERVICE: • • • • • • •

Know the law: restaurants, bars, and even social hosts can be liable for improper alcohol service. It is illegal in North Carolina to serve an intoxicated individual. Train your employees on signs of intoxication. Have policies in place to discontinue alcohol service. Never serve a minor. Always offer cabs or Rideshare for intoxicated patrons. Don’t let them drive. If someone has been overserved and needs medical attention, call an ambulance.

assistance claim, which came about from the employee taking Mrs. Davis to her room via wheelchair and leaving her there with her intoxicated spouse, was tried by jury. The jury returned a verdict in favor of the resort, finding that Mrs. Davis’ death was not caused by the employee’s negligent aid, rescue, or assistance. Mr. Davis then appealed only the dismissal of the dram shop claim. North Carolina’s Dram Shop Law [N.C.G.S. § 18B305] prohibits the sale of alcoholic beverages to an intoxicated individual. Mr. Davis’ appeal focused on the alleged violation of this law. The Court of Appeals reversed the trial court’s dismissal of this claim. The resort then appealed to the N.C. Supreme Court based on a dissenting opinion from the Court of Appeals. A dissenting opinion is an opinion written by one or more judges that does not agree with the majority opinion of the court. In this dissenting opinion, the Court of Appeals reasoned the claim should not proceed based on Mrs. Davis’ own negligence of consuming too much alcohol. The Supreme Court, in a 4-3 split, ultimately agreed with the dissenting opinion at the Court of Appeals holding that Mrs. Davis’ contributory negligence barred Mr. Davis’ case.

opinion, Associate Justice Robin Hudson noted that a jury should determine whether the resort was grossly negligent. If the jury found gross negligence on behalf of the resort, it would overcome Mrs. Davis’ contributory negligence and allow the Davises to prevail in their claim against the resort. Liability for alleged over service of alcohol is costly and can go on for several years. In this case, there is no question that the guest was overserved, and unfortunately, lost her life after a night of celebrating her anniversary. Her estate was unable to recover since she chose to drink too much that night. If she had driven away from the bar and injured or killed another person, the outcome of this lawsuit would likely be different. In that circumstance, an innocent third party would have a valid claim against the resort. A restaurant or bar that serves alcohol has to think about not only the customers in the establishment, but those they may come in contact with after that customer leaves the bar. The most important lesson that any provider of alcohol can learn from this case is that the specific facts of a given situation can drastically impact the outcome, especially when alcohol is involved. To best protect your establishment, employees, patrons, and the public, make sure you have taken time to minimize risks by implementing policies and training employees on safe service of alcohol. In the box on the left is a quick checklist you can use to get started. No one ever wants to see a celebratory evening turn into a tragedy.

Deedee Gasch is an attorney at Cranfill, Sumner & Hartzog which is a corporate sponsor of NCRLA. She is a third generation Tar Heel and attorney and has over a decade of experience litigating catastrophic claims involving serious injury or death. She can be reached at 919-777-6022 or dgasch@cshlaw.com. z

Even though the resort ultimately prevailed in this case, the dissent reasoned that the case should have gone to a jury for a second time. In the dissenting

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WORKFORCE SOLUTIONS

The Growth of Gig Have you ever talked with your Uber driver about why they joined the app? The specifics of each colorful anecdote may vary, but one motivation is universal: the ability to control their work schedule while earning supplemental income. This is the gig economy. The gig economy is revolutionizing the way people work… but what exactly is it? The gig economy refers to individuals who are searching for positions without a long-term commitment. Several mobile apps such as Airbnb, Task Rabbit, Uber and Bellhops are dominating this segment of the market, amassing to staggering success. Major organizations are taking note, including Intuit CEO Brad Smith, quoting “the gig economy... is now estimated to be about 34% of the workforce and expected to be 43% by the year 2020.” Numbers this high should not be ignored, and businesses can take advantage.

The changing motivations of workers initiated a significant shift in the labor market. More and more workers are seeking supplemental income that allows for flexibility in where, when, and how often they work. According to a study by Pew Research Center, motivations for gig workers range from helping fill the gaps in their income, being able to control their own schedule and having fun in their spare time. (Graph A)

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Mobile apps are accommodating this gig lifestyle by offering an avenue to involve these workers. The upward trend of flexible employment (or “gig work”), is an opportunity for businesses to thrive through adapting alongside job-seekers. The hospitality industry’s ever-changing demand and need for entry level workers provides a distinct advantage over other industries looking to survive in this economy. We are in a time where there are more openings than there are workers. (Graph B) Employers continue to target the same small segment of unemployed workers looking for traditional part-time and full-time positions. Limiting recruitment efforts exclusively for traditional positions results in what many are all too familiar with — open jobs. Labor shortages are a concern across the hospitality industry. The US Bureau of Labor Statistics estimated there are 918,000 job openings in the leisure and hospitality industry as of March 2018. With demand remaining high, service suffers when venues are understaffed. Overall business growth is severely impacted without enough workers to execute the desired guest experience. Temporary workers are common entities to combat the constant fluctuation in demand in the hospitality industry. It is important to note a temporary worker is not a gig worker and vice versa. A temporary worker is typically unemployed and searching for those traditional part-time and full-time work opportunities. They fall under the same section of the workforce where businesses are already competing with each other to obtain employees. A gig worker is someone who has a full-time job, other gigs or simply wants to make supplemental income without a commitment. Alternative motivations result in an alternative type of worker. The profile of a gig worker is vastly different from a temporary worker. Common profiles of gig workers include college students, teachers, retirees or full-time corporate employees. They work by choice; bringing a new energy to the businesses they choose to work with. Reliability is also much higher with a gig worker, as their ability to pick up future opportunities is directly impacted by them showing up. It is critical for businesses to tap into this new section of the workforce to meet business needs and keep service standards high.

Finding unique ways to adapt to the constant changes in the workforce is essential to sustaining business demands. This new, gig segment, of the workforce cherishes constant communication and innovative solutions. They gravitate towards mobile apps where the power of earning is put directly in their hands. Instantly, they decide when, where, and how they want to work. With the gig economy and several new methods to secure talent, businesses must simply meet workers half way by updating outdated practices and engaging talent in the ways that they wish to be engaged.

VISIT US AT BOOTH #1705 WANT TO SEE MORE? SAVE THE DATE!

The labor market has been transformed by gig workers. The number of gig workers continues to rise as more workersâ&#x20AC;&#x2122; motivations are moving towards an enhanced work-life balance. Numerous businesses are adapting to the workforce by including gig workers in the equation when searching to fill the gaps in demand. Next time you step in an Uber, remember that the driver is a part of an economical shift en route and arriving shortly, so make sure you are ready to hop on board.

Mary Gage is the Director of the On-Demand Division for Hire Scene. Gage oversees new venue set-up, daily operations, as well as identifies new markets for entry. Gage is a graduate of East Carolina Universityâ&#x20AC;&#x2122;s School of Hospitality Leadership. Prior to joining the launch of the Hire Scene app, Gage spent seven years in hospitality operations. z

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The most valuable benefits you receive through The N.C. Restaurant & Lodging Association are intangible. But you can see below that there are also numerous opportunities to save and help your business grow through your membership in the association. And, NCRLA continues to find other ways to help your business grow stronger.

Advocacy

Cost Savings

NCRLA is the leading advocate for the restaurant, foodservice and lodging industries in North Carolina.

Leverage the power of group buying and exclusive member offerings! NCRLA offers members deep discounts on important goods and services:

We support our members’ interests by lobbying key decision makers so they understand the effects of legislation on your business. We notify you of critical policy developments, and promoting pro-business candidates and legislation through grassroots issue advocacy campaigns and the NCRLA PAC. This support also includes lobbying updates at the local, state, and federal levels; as well as research from our national partners - the National Restaurant Association and the American Hotel & Lodging Association. Learn more at www.ncrla.org/advocacy.

• Take advantage of significant refunds from class action settlements • Up to 50% discount on set-up fees and ongoing preferred member pricing for electronic alcohol purchasing • Access to free local and regional hotel wage and benefits data • 10-20% discount on ServSafe training • Up to 20% discount on music licensing fees • Benefit solutions for your business including group health plans, commercial property and casualty, and executive benefits • Complimentary registration to the NC Restaurant & Lodging Expo Learn more at www.ncrla.org/benefits.

Education and Networking

Resource Center

NCRLA offers many unique opportunities for members to connect. Annual golf tournaments, Taste of NC and Stars of the Industry Awards Gala, Rally in Raleigh, Manteo to Murphy Restaurant PAC fundraiser, and other social events are held annually. The association also offers seminars, workshops and webinars. Learn more at www.ncrla.org/events.

NCRLA serves as a resource to members on many issues impacting their businesses. Whether you need assistance in understanding and complying with health department, fire, or safety regulations, ABC rules and regulations, or legal issues, we have experts available to assist you every step of the way. For regulatory issues, contact Alyssa Barkley at abarkley@ncrla.org or for other legal issues contact Kim Siomkos at ksiomkos@ncrla.org.

MEMBER MOMENTS

A look at the North Carolina hospitality industry’s recent recognition Jason Smith, owner of 18 Restaurant Group in Raleigh, recently created an appetizer for 300 people attending the Fill Your Bucket List Foundation’s annual event. The foundation grants wishes to adults diagnosed with cancer, helping to create lasting memories with family and friends. On March 9, Smith also used his culinary talents to create a five-course ceviche dinner to raise money for the Marbles Kids Museum.

Since 2014, Sassool Mediterranean Café (located in Raleigh and Cary) has funded the Sassool Culinary Arts Scholarship. The scholarship is valued at $1,000 and assists full-time, second-year students at Wake Technological Community College who are pursuing a degree in culinary arts. Sassool’s contribution is one of the many ways the hospitality industry invests in its future.

On April 21, 25 employees of The Umstead Hotel and Spa participated in the 2018 Walk/ Run/Bike for the Umstead, a four-mile charity event raising funds for the appreciation, use and preservation of William B. Umstead State Park and the Richland Creek Corridor.

Amber Moshakos, President of LM Restaurants, was named one of the 2018 Women in Business award recipients by Triangle Business Journal. The Women in Business Awards program recognizes Triangle women who have proven to be dynamic and outstanding leaders with established track records of significant accomplishments in business and/ or community service. She was recognized at an awards luncheon March 23.

Doris Huebner business Huebner Family McDonald’s, was recognized as Four Oaks Chamber of Commerce’s Business of the Month in April. They were nominated in honor of Doris Huebner’s election to NCRLA’s Board of Directors & in recognition of their contributions to the Town of Four Oaks!

Chef Sean Fowler of Mandolin in Raleigh was recognized in May by EdNC for his collaboration with North Carolina PTA for their reimagining school meals event. The event challenged chefs to create their own school meal that adhered to the strict nutrition standards and price constraints that all school meals must follow. Help us tell your story, contact Margo Metzger at mmetzger@ncrla.org, with information on your company’s latest philanthropic contributions. z SUMMER 2 0 1 8

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NPSI WRAP UP

NC ProStart Students Win Big at National Competition Team North Carolina made history when they competed at the National ProStart Invitational on April 27-29, 2018 in Providence, R.I. This year’s restaurant management team finished second in a field of 47 states. The team was comprised of three seniors and one sophomore from North Buncombe High School in Weaverville.

requires students to consider menu design, marketing strategies, food safety and flow of food throughout the restaurant. By winning second place in the nation at this competition, the North Carolina students earned over $100,000 each in scholarships to pursue their education at various schools across the United States.

The students developed a restaurant concept called “Rustic Daisy”, serving upscale Southern comfort food. In the restaurant management competition, teams develop unique restaurant concepts and pitch their ideas to industry giants. This entrepreneurial event

The culinary team that represented North Carolina was from Henderson County Career Academy in Flat Rock and their menu showcased various chilies and peppers in the three course meal that was presented to the judges.

All four of the students on Team North Carolina’s restaurant management team currently work in restaurants in the Asheville area and attribute much of their success to experience in the industry. Understanding tough issues like workplace harassment, temperature controls, and customer service concerns helped the team answer critical thinking questions with responses that impressed the judges.

Team North Carolina was sponsored by Golden Corral, founding partner of the North Carolina Hospitality Education Foundation. Jesse Roque, Executive Chef and owner of Never Blue restaurant in Hendersonville provided assistance with menu construction and execution for both the culinary and restaurant management teams. Dana Pyle, Marketing Manager with LM Restaurants and Leslie Cunningham with the Mann Group both provided mentoring for the management students.

(L to R): Jake Norconk, Ashton English, Mandy Hines with NCRLA, Rob Gifford, CEO of NRAEF, Karly Plemmons, Logan Carrol, Amy White, Instructor

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On May 31 the North Buncombe High School team was recognized by the N.C. General Assembly for their incredible achievements, receiving standing

Below: Marlen Aguirre and Juana Lopez work together to plate the dish they created for the NPSI competition â&#x20AC;&#x201C; a white chocolate bread pudding.

(L to R): front then back): Logan Carroll, Karly Plemmons, First Lady Kristin Cooper, Ashton English, Jake Norconk; Amy White, Mandy Hines, Samantha Sircey, Principal of North Buncombe High School, Christy Cheek, CTE Director for Buncombe County Schools

ovations from both the House and the Senate. These talented students met with state leaders to help build awareness for the NC ProStart program and its success in developing and preparing students for future careers in the hospitality industry. The students also spent time with First Lady Kristin Cooper and Executive Chef Ryan McGuire, discussing farm to table concepts, menu planning, and ways restaurants can use their role as community leaders to help fight hunger.

(L to R): front then back) Juana Lopez, Marlen Aguirre; Rhiannon Webb, Lance Trenary CEO of Golden Corral

Mark your calendars for the 2019 National ProStart Invitational in Washington, D.C., May 8-10, 2019. z

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a la carte A sampler of hospitality-related news stories

RECOVER SUBSTANTIAL FUNDS THROUGH NCRLA’S CLASS ACTION SETTLEMENT PARTNER NCRLA has our members’ best interests in mind. That is why, last year, we partnered with Class Action Capital. The class action settlement claim management group recently posted a new settlement—in addition to the two we announced earlier this month—your business may be eligible to participate in. In this new settlement, Class Action Capital identified many restaurants, supermarkets and other food industry corporations that are likely eligible for pro-rata payments from litigations resulting from allegations that defendants conspired to fix, raise and maintain pricing of their products—resulting in purchasers paying higher prices than they would have in a competitive market in violation of state and federal antitrust laws. We encourage you to take a moment to review current settlements your company could potentially take part in including: Maplevale Farms, Inc. v Koch Foods (Broiler Chicken Antitrust Settlement resulting in $2,250,000 +); Mushroom Direct Purchaser Antitrust Litigation ($12,125,000+); Korean Ramen Noodle Antitrust Litigation ($1,500,000+); Packaged Seafood Antitrust Litigation; and First Impressions Salon Inc. v. National Milk Producers Federation. View details at: www.classactioncapital.com/foodpurchaser.html. z

NEW RX CARDS HELP ATTRACT AND RETAIN QUALITY EMPLOYEES NCRLA is offering members the opportunity to provide prescription benefits to part-and full-time employees, free of charge. The National Restaurant Association Pharmacy Discount Card is made possible by OptumRx, a leader in the no-cost discount card segment. The cards are pre-activated and entitle your employees to discounts on every FDA-approved prescription medication sold at pharmacies nationwide. To order your free cards, contact NCRLA’s Mindy Wharton. z

NEW SERVSAFE WORKPLACE TO ADDRESS SEXUAL HARASSMENT The National Restaurant Association recently launched ServSafe Workplace to combat sexual harassment in the workplace and help prevent future incidents from taking place in the foodservice and hospitality industries. During the months of June-August, ServSafe Workplace is offering free webinars on Sexual Harassment Prevention for Employees. The first 60-minute webinar is available and designed for all restaurant and hospitality employees. www.servsafe.com/ServSafe-Workplace. ServSafe Workplace equips employees and managers with training to help mitigate emerging risks and promote the positive culture that has always been associated with restaurants across America. The program includes a series of webinars and other materials that will help restaurant staff identify inappropriate behavior, recognize when it’s necessary to intervene, and understand sexual harassment’s harmful impact on individuals and our industry. This summer, ServSafe Workplace will be available to members of our industry free-of-charge, and we have also developed a comprehensive list of helpful resources that restaurateurs can use to prevent sexual harassment from taking place in their business. z

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