Pennsylvania Restaurant & Lodging Matters by Graphtech

FALL 2013

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PRLA 2013 Officers CHAIRMAN Matt English Milestone Hospitality Management LLC, Lancaster Central and Lancaster Chapters VICE CHAIRMAN Mike Rodden Philadelphia Marriott West, West Conshohoken Philadelphia Chapter VICE CHAIRMAN Rick Sell Bahama Breeze, Exton Philadelphia Chapter

Bounty Hunters

TREASURER Jeff Cohen Smallman Street Deli, Pittsburgh Western Chapter IMMEDIATE PAST CHAIRMAN Jeff Metz Metz Culinary Management, Dallas Northeastern Chapter

PRLA STAFF CHIEF OPERATING OFFICER John Doulgeris | jdoulgeris@prla.org EXECUTIVE ASSISTANT Vicki Zeppa | vzeppa@prla.org DIRECTOR OF MEMBER SERVICES—State Amy Kieffer | akieffer@prla.org DIRECTOR OF MEMBER SERVICES—Eastern Region Brenda Mendte | bmendte@prla.org MEMBER RELATIONS COORDINATORS Christine Preuss | cpreuss@prla.org Eric Adams | eadams@prla.org MEMBERSHIP SALES REPRESENTATIVE Charlie Anderson, Northwestern PA

INSIDE THIS ISSUE

DIRECTOR OF FINANCE & HUMAN RESOURCES Diane Sherwood | dsherwood@prla.org GOVERNMENT AFFAIRS REPRESENTATIVE Melissa Bova | mbova@prla.org EDUCATION COORDINATOR Hope Sterner | hsterner@prla.org MEETING & EVENT PLANNER Heidi Howard | hhoward@prla.org COMMUNICATIONS COORDINATOR Stephanie Otterson | sotterson@prla.org FINANCE ASSISTANT Paula Judd | pjudd@prla.org PROFESSIONAL SERVICES PROVIDED BY GENERAL COUNSEL Shumaker Williams, P.C. Keith Clark GOVERNMENT AFFAIRS Pugliese Associates, Harrisburg Lou Biacchi Greenlee Partners, Philadelphia Andrew Zalenski ACCOUNTANT AND INDEPENDENT AUDITORS Brown, Schultz, Sheridan & Fritz Jim Nace, CPA INVESTMENT ADVISORS Conrad Siegel Tara Mashack-Behney

Industry Outlook

Legislative Corner

Legislator Spotlight

Ask US

Food Safety

Chapter News & Notes

Legal Docket

Welcome New Members

Pennsylvania Restaurant & Lodging Matters is a publication of the PENNSYLVANIA RESTAURANT & LODGING ASSOCIATION 100 State Street, Harrisburg, PA 800-345-5353 | www.prla.org | info@prla.org

Graphtech Sarah DiCello, Publications Manager 717-238-5751 sarah@thinkgraphtech.com For Advertising Information: Alexis Kierce, Account Manager 717-238-5751 alexis@thinkgraphtech.com

Pennsylvania Restaurant & Lodging Matters is published quarterly by the Pennsylvania Restaurant & Lodging Association, 100 State Street, Harrisburg, PA 17101, tel 800-345-5353, and is a benefit of membership in the association. Articles do not necessarily reflect the view or position of the Pennsylvania Restaurant & Lodging Association. Editorial coverage or permission to advertise does not constitute endorsement of the company covered or of an advertiser’s products or services, nor does Pennsylvania Restaurant & Lodging Matters make any claims or guarantees as to the accuracy or validity of the advertiser’s offer.

Creative Design Graphtech

INDUSTRY OUTLOOK

IN SEPTEMBER, Patrick Conway resigned his position as PRLA’s president &CEO. The Executive Committee appointed John Doulgeris, our current vice president of operations, as chief operating officer and interim president & CEO throughout the search process. We have established a search committee, comprised of Rick Sell, committee chair, Mike Rodden, committee vice chair, Jeff Cohen, Jeff Metz, John Graff, Brian Daily and me. The search committee will formulate the search action plan and timeline, as well as engage a third-party search firm. Our goal is to conduct an expeditious and judicious search to find the right person for the position, while keeping the process transparent to our members. Not many organizations find themselves in such solid footing when there is change in staff leadership. During Pat’s 12-year tenure, he has positioned the association as the voice of the hospitality industry by strengthening our financial status, engaging our volunteer members and hiring an outstanding professional staff. While the search for our new executive leader takes place, your association staff will continue to deliver, without disruption, the quality advocacy and services you have come to expect from PRLA. Even though National Food Safety Month (NFSM) is celebrated in September, food safety should be in the spotlight every day. This year’s NFSM focused on the increasing importance of food allergen awareness.

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PENNSYLVANIA RESTAURANT & LODGING matters

Food allergies are on the rise, already affecting more than 15 million Americans. According to a recent study published in the journal JAMA Pediatrics, nearly 8 percent of children live with food allergies—a condition that costs our nation $25 billion annually. To enhance food safety and highlight the increasing need for awareness, the National Restaurant Association partnered with Food Allergy Research & Education (FARE) to create an entirely new training program for all foodservice workers: ServSafe Allergens™ Online Course. Food allergy reactions are serious, and sometimes fatal. Is your business prepared to serve guests who have food allergies? Visit the ServSafe Allergens™ website, www.servsafe. com/allergens or call our office (800) 345-5353 to learn more about this training resource. The entire membership is invited to attend November’s annual membership meeting and awards gala in Hershey. PRLA committee meetings take place on Sunday, November 3 and Monday, November 4, and provide you with the chance to participate in the work of your association. Sunday night’s awards gala is our opportunity to honor several exceptional members and industry leaders for their service, safety, civic engagement, leadership and dedication to the association and our industry. We hope to see you at the Hershey Lodge in November—look for your formal invitation in the mail. The State Legislature returned to Harrisburg on September 23. Liquor and transportation were left unresolved when the Legislature adjourned for its summer recess. Be sure to check out the Legislative Corner on page 6 for a review of the

• FALL 2013

Matt English

issues we are focusing on this fall. In addition, we encourage you to subscribe to our weekly Legislative Update to stay informed on all the issues that impact you and your business. Simply email mbova@prla. org to subscribe. Tuesday, November 5 is Election Day. We encourage you and your staff to exercise your right to vote. Visit VotesPA.com to find your polling location. Thank you for your continued membership and support. We look forward to seeing you in Hershey this November for our annual membership meeting and awards gala. Best regards,

Matt English Chairman of the Board

LEGISLATIVE CORNER

SUMMER RECESS/FALL SESSION The legislature adjourned at the end of June, having not achieved any of Gov. Corbett’s top three priorities. Over the summer, an overhaul took place within the administration with replacements named for the following positions: chief of staff, communications director and legislative affairs secretary. It remains to be seen if any of the three top priorities— privatization, transportation and pension reform—are passed in the fall.

HOTEL TAX REFORM At the end of July, PRLA testified at a House Tourism and Recreational Development hearing on hotel taxes. The association supports changes to the tax to ensure all tax revenue goes towards tourism promotion and not to the maintenance of brick and mortar buildings. PRLA also discussed its support of closing the online travel company hotel tax loophole and preserving the 30-day residency language. MANDATORY LEAVE POLICY PREEMPTION This fall, Rep. Seth Grove (R, York) introduced the Uniform Leave Policy Act, which clarifies that mandated leave is of state concern and that no municipality can mandate a business to provide paid leave. PRLA, along with a variety of other businesses and business groups, supports the legislation and will work through the fall for its passage.

exchanges. Since Pennsylvania has opted not to run a state insurance exchange at this time, an employee who chooses to shop for health insurance must do so through the federal health insurance exchange. AFFORDABLE CARE ACT PRLA and the National Restaurant Association are working hard to make changes to the Affordable Care Act to better help with compliance for your business. Currently, the focus is on changing the definition of full-time from 30 hours to 40 hours and changing the calculation for a large employer from 50 full-time equivalent employees to 50 full-time employees. FEDERAL RESERVE AND DEBIT FEES The U.S. District Court this summer ruled that the cap on debit card fees as set by the Federal Reserve was too high and must be lowered. The Reserve is currently appealing the ruling.

DID YOU INFORM YOUR EMPLOYEES ABOUT THE FEDERAL HEALTH INSURANCE EXCHANGE? As of October 1, all businesses should have provided employees with written information regarding the affordable care act. The notice is to inform individuals about the government-run health insurance The Pennsylvania Restaurant & Lodging Association is committed to representing the hospitality industry at all levels of government on legislative and regulatory issues that have a direct impact on our industry and our members’ bottom lines. The above issues are just a few of the priorities in which your association is currently engaged.

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PENNSYLVANIA RESTAURANT & LODGING matters

• FALL 2013

legislator spotlight During his three terms in office, Seth has successfully advocated for common sense policies and fiscally conservative legislation. He authored a law to reduce bureaucracy and save school districts

Senator Seth Grove

HARDWORKING, dedicated and

effective are three words to describe Rep. Seth’s Grove’s approach to legislating. Seth has tirelessly served the 196th District since 2008, and during his three terms in office, he has consistently advocated for property tax reform, streamlined government and conservative principles. Seth’s path to public service began in high school when he enlisted in the U.S. Navy and was selected for its nuclear engineering program and submarine school. Due to a heart condition, he was unable fulfill the enlistment. Undeterred, Seth opted for a major in public administration at York College to find another way to serve. He attributes this deep sense of civic responsibility to his grandfather’s WWII stories and his father’s service in the Navy during the Vietnam War. Seth honed his knowledge of state government while serving as a legislative assistant for Congressman Todd Platts (R-York) and Rep. Stan Saylor (R-Windsor), and as chief of staff for Rep. Keith Gillespie (R-Hellam). In these capacities Seth was a dedicated advocate for residents in resolving conflicts with state and federal agencies. He continues to use this expertise to benefit the residents of the 196th District. Along with advancing fiscally conservative policies, Seth’s main priorities include encouraging private-sector job creation, promoting legislation to support small business growth, stamping out welfare fraud, reducing government red tape and increasing efficiencies, protecting law-abiding citizens with tough-on-crime policies, and defending our right to keep and bear arms.

”

Seth is dedicated to furthering the interests of the 196th District, York County and Pennsylvania, and he employs this passion outside of his legislative endeavors.

“

money by exempting them from the PLANCON approval process if they are not seeking state funding for a construction project. He also led the charge in limiting the Act 1 exceptions which allow school districts to bypass the voter referendum requirement for property tax increases above the inflation index. His efforts reduced these exceptions by 70 percent and have made school districts more accountable to the taxpayers. A fiscal watchdog, Seth authored the provision in the Unemployment Compensation (UC) reform law (Act 60 of 2012) which holds individuals responsible for making fraudulent unemployment claims. The law allows the Department of Labor and Industry a 10-year look-back window to collect on fault overpayments and will save a significant amount of money for the UC system. Protecting Pennsylvania’s children is another priority for Seth. He authored the Commonwealth’s groundbreaking sexting law to reduce child sexual exploitation and child pornography. Under this new law, teens who are caught sexting will no longer be subject to felony prosecution, but will now have the opportunity to participate in educational diversionary programs and have their records expunged. Seth also authored a law to FALL 2013

•

require minors seeking a motorcycle license to complete a free motorcycle safety course. Seth is dedicated to furthering the interests of the 196th District, York County and Pennsylvania, and he employs this passion outside of his legislative endeavors. He has served as an Apprise counselor for the York County Area on Aging. He is a member of the HACC York Campus Advisory Committee, Dover Lions Club, the Dover Fish and Game Association, the National Rifle Association, the Dover York YMCA, and the Eastern York YMCA. These associations illustrate his commitment to providing healthy and wholesome activities for York County residents, his conviction to uphold Second Amendment rights and his concern for senior citizens. Seth has been recognized by several groups during his tenure in the Pennsylvania General Assembly. His accolades include: • The “Guardian of Small Business” award from the National Federation of Independent Business in 2010 and 2012. • “Distinguished Recent Graduate Award” from York College of Pennsylvania Alumni Association in 2012. • “Defender of Liberty” from the American Conservative Union Federation in 2012. • “Patriot Employer” from the Employer Support of the Guard and Reserve in 2011. • “Legislative Champion Award” from the Pennsylvania State Alliance of YMCAs in 2011. • “Legislator of the Year” from the National Association of Social Workers – PA Chapter in 2011. • “Statesman of the Year” from York County ACTION in 2010. Remaining accessible to the people and involving citizens in government is one of Seth’s core beliefs. He maintains an active Twitter and Facebook presence and reaches out to constituents using multi-media formats, like email and video because an open dialogue with citizens fosters a more effective state government. Seth resides in Dover with his wife, Kacey, and their sons, Andrew and Connor. The 196th District is comprised of the townships of Dover, Heidelberg, Jackson, North Codorus, Paradise, Warrington and West Manchester, and the boroughs of Dover, New Salem, Spring Grove and Wellsville. PENNSYLVANIA RESTAURANT & LODGING matters

• 7

Bounty Hunters

By Megan Sullivan As seen in Lodging Magazine July 2013

THE MENU AT THE ELEMENTS ON LEVEL ONE restaurant in Herndon, Va., reads like a guidebook to the surrounding area. The Meyer natural strip steak comes from Duck Farms in Madison, Va., the handmade goat cheese from Firefly Farms in Accident, Md., and the country ham from Edwards of Surry, Va. This is no mistake, since local ingredients are an integral component of food and beverage operations at the Hyatt Dulles that houses the restaurant. But it wasn’t always this way. When Executive Chef Matthew Warschaw came to the property four years ago, he occasionally used local ingredients for restaurant specials or VIP events. That’s because price points tend to be higher for specialty items like artisanal sheep and goat’s milk cheeses, which have a smaller yield than a dairy cow. But local sourcing has become much more efficient and economical in the past few years. When done right, purchasing food from local farmers and artisans can help support area communities without blowing up the restaurant’s budget. And the payoff is huge. Since the Hyatt Dulles started sourcing many of its ingredients locally the hotel has seen a significant bump in guest satisfaction scores and revenue increases. According to Warschaw, Elements on Level One has experienced a 3.3 percent rise in covers, a 3.8 percent increase in average check, and an overall boost in total food revenue of 3.9 percent, year-over-year. This kind of local, sustainable sourcing has become such a big trend that Hyatt launched a global initiative around it in 2012.

Hotels are increasingly embracing the locally sourced trend not only to stand out from competitors and to meet sustainability goals but also to feed growing customer demand. Years ago, travelers wanted the convenience and comfort of familiar foods, says Bart Hosmer, a chef for 20 years and senior director of culinary in the Americas for Marriott. Now, guests crave regional and local flair, and they are willing to pay more for fresh, high-quality ingredients. “There is such a food savvy guest in the hotel and food and beverage world,” he says. “They’re more educated than ever and they want to know the story.” Local sourcing allows restaurants and hotels to engage more with their customers by talking about where the food came from, says Jerry Cerand, who leads fresh food programs for Avendra. Although chefs may pay more for locally grown foods than they would for commercially farmed products, they save on shipping costs and possibly reduce energy consumption due to shorter almost as travel distances.

”

It costs

much to ship

“The freight aspect of the product is a big component of the overall cost,” Cerand says. “It costs almost as much to ship a box of spring mix from the West Coast to the East Coast as it costs to grow the lettuce.”

a box of spring mix from the West Coast to the East Coast as it

Local produce also tends to have more longevity in coolers than items that have been packaged and shipped across the country.

costs to grow

“

the lettuce.

To find local ingredients, Warschaw attends community events and farmers markets. Take for instance the local white corn grits he uses in his special shrimp appetizer or as a side to his lamb chop entrée. Warschaw began sourcing the grits from Colvin Run Mill, a restored water-powered mill in Great Falls, Va., after meeting the operator at a local 4-H fair. Warschaw also sources items through Avendra, which partners with approved distributors to identify local growers, set quality expectations, and bring the products to market.

Keany Produce, a Landover, Md.–based foodservice distributor, is among the companies Warschaw works with. Keany procures items from Local Food Hub, a nonprofit group in Charlottesville, Va., which purchases locally grown fruit, vegetables, meat, eggs, and specialty items from more than 70 small family farms. It’s all part of a sustainable local food distribution model. “Some vendors now are focused more on that niche market of being able to stock and supply the small guy,” Warschaw says. “The production scale is much different than what you find in everyday commercial suppliers.”

Additional savings can be uncovered when buying produce in season, Hosmer says. “When you’re buying cherries locally, for example, at the peak of season and there’s an abundant supply on market, then you’re able to get a lower cost than buying them out of season and having them shipped in from a specific area,” he says. To optimize and leverage economies of scale, Hosmer recommends that restaurants focus on areas that are most impactful for guests. Once restaurants and hotels track down their local ingredients they need to put their feet on the ground, Cerand says. “Talk to the farmers and see how they go to market, what it costs them, and how Mother Nature controls it all.” Avendra organizes educational tours of farms and fishing villages so chefs can see and understand the way fish is caught or how farmers grow crops and raise animals. “There’s no better way of understanding what you’re serving and the flavors of the food than going to a market and talking to a farmer who actually grew it,” Hosmer agrees. “It’s amazing to hear their passion and their story and the hard work that goes into it. It creates an appreciation for the ingredients.”

FALL 2013

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PENNSYLVANIA RESTAURANT & LODGING matters

• 9

ask

Knowledge is power in your operation. As a PRLA member, you have many informational resources available at your fingertips to help you with your day-to-day legal, regulatory and operational questions.

Manufacturer Rebate Program Since the PRLA’s manufacturer rebate program (MRP) was introduced in October 2011, participating members have earned more than $100,000 in rebates. If you are not participating in another rebate program, we strongly urge you to enroll in our MRP. Prime Source Purchasing Inc. (PSP) handles all the administrative details of the program—from the hassles of collecting rebates from more than 200 participating manufacturers to distributing quarterly rebate checks to participating PRLA members. Almost 100 members participate in this program. After enrolling, there is really no work on your end, just the opportunity to receive quarterly checks on qualified rebates on items you are already purchasing. Following are the answers to some of our most frequently asked questions about the program.

What are the eligibility requirements to participate?

A: You must be a PRLA member in good standing (i.e., your dues are up-todate). Also, you may not be enrolled in a competing rebate program (no “doubledipping”).

Is there a cost to participate?

A: No. There are no up-front fees or additional cost to participate in PRLA’s manufacturer rebate program.

How do I enroll in the program?

Have a question about PRLA membership, operations, human resources or another topic? Submit it to membership@prla.org.

10 •

PENNSYLVANIA RESTAURANT & LODGING matters

A: The process is easy. Contact the PRLA membership department for an enrollment packet. You’ll need to fill in your purveyor information on one form, sign the onepage compliance form and sign a release form which permits PSP to contact your suppliers quarterly to obtain purchasing information for manufacturer rebates.

Q Q

Must I use a specific supplier/ distributor?

A: No. You continue to use your current suppliers.

What products are eligible for rebates?

A: After you enroll, PSP will provide you a list of the current participating manufacturers (more than 200) from whom you may be eligible to earn rebates. Manufacturer rebates vary by product and may change throughout the year, in which case PSP will communicate those changes to you. Food, beverages, paper products and cleaning supplies are just a few of the categories that qualify for rebates.

How will I receive my rebate?

A: Rebate checks are issued quarterly, along with a detailed report summarizing each item purchased and its rebate value. PSP retains a percentage of the total rebate earnings as payment for its administrative services.

• FALL 2013

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15 Million Reasons To Be Allergen Trained.

15 million Americans with food allergies dine with family and friends where they feel safe. W HEN IT’ S YOUR C ALL The threat is growing. Is your staff prepared for an emergency?

AL L ER GY TR END S Studies show food allergies are starting to affect more Americans every year.

ESSE N T I A L TR AI N I N G Rhode Island and Massachusetts currently require food operators to provide food allergen training for their employees.

The interactive ServSafe Allergens™ Online Course drives home the critical information your employees and managers need in order to accommodate guests with food allergies and respond to emergencies, should they occur. It’s comprehensive training you can trust.

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The Course U N D E R S TA N D I N G FOOD ALLERGIES

F R O N T O F H O U S E O P E R AT I O N S

BACK OF THE HOUSE O P E R AT I O N S

· Defining food allergies

· Front of the house

· Back of the house operations

· Recognizing symptoms

· Proper communication

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· Identifying allergens

· Preventing cross-contact

· Handling food deliveries

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· Special dietary requests

· Cleaning and personal hygiene

· Dealing with emergencies

Contact Hope Sterner at (800) 345-5353 for more information.

©2013 National Restaurant Association Educational Foundation (NRAEF). All rights reserved. ServSafe is a registered trademark of the NRAEF, used under license by National Restaurant Association Solutions, LLC. The logo appearing next to ServSafe is a trademark of the National Restaurant Association.

2013 Golf Classics A success story The Pennsylvania Restaurant & Lodging Association would like to thank this year’s sponsors and purveyors for their generous support of the 15th annual Power PAC Golf Classic East and 16th annual Power PEC Golf Classic West.

POWER PAC GOLF CLASSIC EAST Cabinet Sponsor

Golfer Amenities Sponsor

Eat’n Park Hospitality Group

Filta Environmental Kitchen Solutions

The Rose Group

Majestic Cleaning

Senate Sponsors

Ambassador Sponsors

Pic Rite Management & Consulting

Alsco Linen Rental Service

PRLA Brandywine & Lancaster chapters

Clark Food Service Equipment

Delran Builders

Schneider Valley Farms Dairy

Ellis Coffee Company

Dietz & Watson

Side Bar & Restaurant

Greenwood Hospitality

Heartland Payment Systems

Singer Equipment

Reinhart Foodservice

Heineken USA

US Foods Allentown

SYSCO

Kingston ATMs & Amusement

Golf Ball Sponsor

MillerCoors

Product Sponsors

Citibank N.A.

Bassetts Ice Cream

Hoss’s Steak & Sea House

The Graham Company

Coca-Cola

Hole-in-one Sponsor

Tee Sponsors

Heineken

Allen Borthers

Cart Sponsor

Metz Culinary Management

American Beauty Produce of West Chester

Iron Hill Brewery & Restaurant

Ashley Foods

Jacquin’s Flavored Vodka

Darden-Bahama Breeze

MillerCoors

Bassetts Ice Cream

Beverage Stations

Coca-Cola Company

Iron Hill Brewery & Restaurant

Fairfield Inn by Marriott–Harrisburg/Hershey

POWER PEC GOLF CLASSIC WEST Tournament Dinner Sponsor

Friends of PRLA Auntie Anne’s Inc.

SYSCO Pittsburgh LLC

Tournament Lunch Sponsor

Heartland Payment Systems

The Tavern Restaurant

Hoss’s Steak & Sea House

ServPro

EFD Associates (Pierce Chicken, T. Marzetti, Rich’s and Lake Erie Frozen Foods)

PepsiCo Foodservice

Tournament Reception Sponsor

Sincerely Yogurt

The Hershey Company

Reinhart FoodService

Tee Sponsors

Hoss’s Steak & Sea House

Silver Sponsors

Caputo & Caputo PC

PepsiCo Foodservice

Carneige Equipment

Quaker Steak & Lube

Cellone Bakery Inc.

ServPro

Darden-Bahama Breeze

Product Sponsors

Buffalo Wild Wings

C.A. Curtze Company Eat’n Park Hospitality Group Turner Dairy Farms

Hole-in-one Sponsor Metz Culinary Management

Golf Ball Sponsor

Southern Wine & Spirits

Putting Contest Sponsor

Frank B. Fuhrer Wholesale Gordon Food Service

Gift Bag Donors Auntie Anne’s Inc.

Giant Eagle Market District

Hoss’s Steak & Sea House

JM Smucker

Joey D’s Fine Cigars at DiSalvo’s Station Restaurant

Ken’s Foods

McCain Foods USA

MillerCoors

Flaherty & O’Hara PC

Paragon Foods

PepsiCo Foodservice

Players’ Carts Sponsor

PRLA Lancaster Chapter

Southern Wine & Spirits

Quaker Steak & Lube

Turner Dairy Farm

US Foods

Sara Lee Desserts 14 • PENNSYLVANIA RESTAURANT & LODGING matters • FALL 2013

serving the needs of the restaurant industry for more than 45 years

• Acquisition, sale and financing of restaurants • Liquor license acquisition and sale • Defense of liquor license citations and enforcement actions • Dram shop liability • Structuring to limit liability • Employment law and wage & hour issues • Litigations, mediation and dispute resolution • Intellectual property protection including trademarks, copyrights and trade secrets • Tax, business and estate planning

SERVING THE FOLLOWING AREAS:

PENNSYLVANIA MARYLAND NEW JERSEY NEW YORK WASHINGTON DC 1-888-794-5542 www.shumakerwilliams.com

CHAPTER NEWS & NOTES

what’s happening around the state? BERKS-SCHUYLKILL CHAPTER • The Deitsch Eck Restaurant, Lenhartsville, participated in the 10th annual Taste of Hamburg-er Festival, and won the People’s Choice Award for the seventh year in a row. Deitsch Eck sold more than 1,500 burgers, about half of which were the Luther, a bacon cheeseburger on a glazed doughnut.

LANCASTER CHAPTER

• The Holiday Inn Harrisburg/Hershey, Grantville, is pleased to announce that it has completed a multi-million dollar renovation. The renovation introduces all new finishes to its meeting and conference spaces, lobby, guest rooms, swimming pool, Jacuzzi, fitness center, and exterior.

• Lancaster County Coffee Roasters is proud to have recently celebrated its first year of operating a stand at the Lancaster Central Market

BRANDYWINE CHAPTER • Greater West Chester Chamber of Commerce (GWCC) is honored to announce new PRLA member Side Bar & Restaurant, West Chester as its 2013 Business of the Year. The award, presented annually to a Chamber member for outstanding achievement in the business community and the communityat-large, will be presented at a luncheon on October 16 at Penn Oaks Golf Club. • This August, Victory Brewing Company of Downingtown won a Bronze Beer Tasting Award for its Summer Love Ale at the International Breweries’ Competition in Munich, Germany. Victory has recently opened a second location in Kennett Square, Pa. and has plans for a third opening soon. • In July, Philadelphia-based restaurateur Dave Magrogan introduced Stella Rossa, a 350seat Italian bistro located at 20 East Lancaster Avenue in Downingtown. It has an airy, 225seat dining room, a 50-seat alfresco patio that overlooks the Brandywine River, and a private dining room to entertain up to 50 guests. Modern and traditional dishes are prepared with locally sourced, fresh ingredients, and the bar features an extensive collection of Italian wines, international craft beers and specialty cocktails.

LEHIGH VALLEY CHAPTER • On October 10, Leaf Restaurant Cigar Bar & Lounge, Easton, will host Sip, Savor, Smoke — Enjoy! an evening of premium cigars, liquor tasting and elegant food stations. Proceeds of this first-time chapter event will benefit the Educational Foundation Scholarship Fund.

The refurbished pool is part of the Holiday Inn Harrisburg/Hershey’s multi-million dollar renovation. • Culinary & Pastry Arts program students from Lebanon Valley Career & Technology Center will demonstrate their knife skills by carving pumpkins later this month at Pumpkin Glow, a yearly event at Hershey Gardens with more than 150 carved, illuminated pumpkins.

MIDWESTERN CHAPTER • On October 6, 2013, Hoss’s Steak & Sea House celebrated 30 years of Hoss’pitality. Hoss’s Steak & Sea House is a privatelyowned company that operates 36 restaurants. Bill Campbell is the founder, chairman of the board and chief executive and a long-time member of the PRLA Board of Directors. NORTHEASTERN CHAPTER • Rob Bradshaw, managing partner of the LongHorn Steakhouse in Moosic, has earned Darden Restaurants’ top honor— the Joe R. Lee Diamond Club Award. This award, named after the company’s first CEO, is awarded yearly in recognition of the highest levels of service and top financial performance.

CENTRAL CHAPTER • Batdorf Restaurant bartender Casey Burke recently brought home the top prize from a drink-making competition in Philadelphia. Casey, who has been pouring drinks at the Batdorf for eight years, won the Iron Shaker competition held at Philadelphia’s Hotel Monaco on August 15.

NORTHWESTERN CHAPTER • Charlie Bish of Montana’s Rib and Chop House, Meadville, has opened a second operation in Mercer County and a third Chop House in northern Michigan.

• The 22nd Annual Central Chapter Golf Outing will be held on Monday, October 21 at Hershey Country Club. More than 300 golfers are expected to enjoy the Hershey East, West and Links courses. Proceeds benefit the Educational Foundation Scholarship Fund and the PA State Trooper South Central Camp Cadet program. There are still foursomes available!

• The Erie Times-News Commitment to Erie Awards received more than 100 nominations in the category of businesses with 50 or less employees. The Brewerie at Union Station, and proprietor Chris Sirianni, are one of the three finalists for this award. The presentation was held at an awards dinner on

For more information on any of the above events or to include your event or news in the next issue of Pennsylvania Restaurant & Lodging Matters, contact Heidi Howard, PRLA meeting and event planner, at (800) 345-5353 or email to hhoward@prla.org. FALL 2013

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CHAPTER NEWS & NOTES continued

September 18 at the Ambassador Convention Center, Erie. Chris commented: “We are honored to be nominated for this award and will continue to work hard to continue making Erie and the northwest Pennsylvania community proud of our business. A special recognition goes to the Brewerie employees for being a big part in making this award nomination possible.” PHILADELPHIA CHAPTER • PRLA board member Jim Gratton of Courtyard by Marriott Philadelphia Downtown hosted the September 12 Philadelphia Chapter Meeting, which featured an in depth legislative update provided by Melissa Bova, PRLA government affairs representative. WESTERN CHAPTER • The Italian American Educational Scholarship Foundation named John Barsotti, Common Plea Catering, its 2013 Man of the Year at a dinner held on Aug 13, 2013, at the Valley Brook Country Club, McMurray, PA.

• Ned Sokoloff, CEO and founder of Specialty Group, has been a featured columnist in both state and national industry publications: The Observer, The Pennsylvania License Beverage Journal, and Independent Restaurateur magazine. Stay tuned for Ned’s upcoming book “Restaurant Rants,” coming soon! • Beechie’s Place, Meadow Lands, hosted its third annual Iron Chef Cook-Off on September 28, 2013. This year Beechie’s Place executive chef Lane McFarland challenged chef Jason Capps of Bella Sera, Canonsburg. The winner of the competition will claim the title of Iron Chef and bragging rights for an entire year. Both chefs serve on the PRLA Western Chapter board of directors.

• On September 26 Bella Sera, Canonsburg, held Grillin’ & Swillin’, a backyard barbeque. This first-time event featured a showcase of local flavors and Rivertowne Brewing on tap. • PRLA Western Chapter held its fourth annual PRLA Night at PNC Park on September 18. More than 100 PRLA members and supporters enjoyed a buffet feast provided by ARAMARK and beverages from Rivertowne Brewing and Church Brew Works. Proceeds will benefit the Educational Foundation Scholarship Fund.

• Gordon Food Service recently announced plans to build a 420,000-square-foot distribution facility in the greater Pittsburgh area. Construction for this facility will began this fall and is expected to be operational in spring 2015. The Pittsburgh-area facility will provide approximately 300 jobs within three to five years.

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LEGAL DOCKET

Enterprise Risk Management When Guests Fail to Pay their Bill

by Keith A. Clark, Esquire Shumaker Williams, P.C. General Counsel, Pennsylvania Restaurant & Lodging Association

Enterprise Risk Management is a hot button

process in business today, receiving lots of attention. By definition, it is the process of planning, organizing, leading and controlling the activities of a business to minimize the effects of risk on the business’s capital and earnings. It involves a cross-silo evaluation of all of the operational areas of a business, not just risks from accidental losses. For example, it includes financial, strategic, operational, reputational and other blends of risk. We recently received an inquiry through the PRLA office from a member asking for legal advice on how to handle a customer or

guest who consumes food and beverage or occupancy, and then indicates that they do not have the ability to pay the bill. The legal answer in Pennsylvania is rather simple, but when you evaluate a cross-section of variable facts and risks, including reputational risk, a risk/reward analysis may indicate that the legal response may not be the appropriate response. In representing businesses over the years we have always tried to outline both legal and business options when discussing how to handle an issue.

“

Wearing your customer relations/ hospitality hat may be a better fit than a legal response

”

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Let’s analyze the issue at hand. “Theft of services” is a crime under 18 Pa.C.S.A. Section 3926 in the Commonwealth of Pennsylvania. The statute states: “A person is guilty of theft if he intentionally obtains services for himself or for another which he knows are available only for compensation, by deception or threat,...Where compensation for service is ordinarily paid immediately upon the rendering of such service, as in the case of hotels and restaurants, refusal to pay or absconding without payment or offer to pay gives rise to a presumption that the service was obtained by deception as to intention to pay.” (emphasis added) The degree of the offense depends upon the value of the services obtained, and ranges from a summary offense to a felony of the third degree. Potential criminal penalties could include not only restitution, but also substantial fines and imprisonment of not more than 90 days.

In summary, there is no absolutely right or wrong general answer to this problem. The business’ response should be driven by the specific facts of the individual occurrence. It would be a mistake to have a one size fits all policy (other than the possibility of consistently requiring when anyone fails to pay, to ask for identification and contact information to help leverage assurance that he or she will return and pay). We suspect that it seldom occurs that the individual says, “I am unable to pay you at all.” A more usual occurrence is that they unintentionally do not have the means (cash, credit card or check) on them to pay at the specific time of the occurrence. In that case, wearing your customer relations/hospitality hat may be a better fit than a legal response. If you have any questions concerning the subject of this article, please contact Keith Clark, Esq. at clark@shumakerwilliams.com or (717) 909-1612.

CONSIDERATIONS WHEN FACING NON-PAYING GUESTS

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There probably are many different creative ways to address the issue, depending upon the individual facts of each instance.

A reasonable response should maintain a balance between public relations and good business financial practice.

Obviously, one would handle the situation with a regular customer differently than they may handle it with someone who just walked in off the street for the first time.

From a public relations and legal viewpoint, the issue should be handled one-on-one with an individual customer in a manner that does not make a scene or is not visible or hearable by other patrons of the business.

Even when the bill may be $250 to $1,000, the time, cost and emotional energy of collecting same by legal process may far exceed the dollars involved.

On the other hand, if it is the second or third time around for an individual, then on a matter of principle, one may want to pursue criminal or civil proceedings as a possible future deterrent to that individual and other customers.

When an incident does occur, the restaurateur or hotelier should be sure to brief his or her staff thereon to minimize risk as to being hit again by the same person.

A good business practice could be: if the customer says that they will come back and pay, ask the customer to produce a copy of his or her license or other form of picture identification, as well as his or her contact information. The business can then accumulate that information on an internal computer site so that you have a picture and other identification of the individual (which could be available to the entire staff) should he or she ever return to the premises.

If the business determines to eat the cost, which we have probably seen occur the most often, (and keep in mind, cost is something less than the amount of the bill), the party who can be hurt the most is a tipped employee who loses his/her tip. We have even seen a restaurateur reimburse a waiter/waitress for the reasonable amount of the tip under such circumstances where it was clear that the waiter or waitress really was not at fault for what happened.

FALL 2013

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WELCOME NEW MEMBERS Restaurant Members Arts Bar LLC Philadelphia, PA Braddock Inn Inc. Farmington, PA CBG Restaurant Group Glen Mills, PA

Post & Schell PC 301 Grant Street, Ste 4300 Pittsburgh, PA 15219 Brittany Bloam Rich-Tomkins 235 Bridgewater Rd. Aston, PA 19014 Bill Bradshaw

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Chumley’s State College, PA Fat Angelo’s Lemont Furnace, PA Flavors Etc. Catering Mechanicsburg, PA Fraternal Order of Police Philadelphia, PA Gimmick’s Punxsutawney, PA Hello Bistro Pittsburgh, PA Kennywood Refreshment Company West Mifflin, PA Limoncello West Chester, PA Limoncello Chester Springs, PA Monterey Bay Fish Grotto Pittsburgh, PA Monterey Bay Fish

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E EH

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