SPRING 2015
AH&LA Takes Lead on Closing Unfair Tax Loopholes
ProStart Invitational Results
MINIMUM
WAGE
INCREASE
PRLA 2015 Officers CHAIRMAN Jeff Cohen Smallman Street Deli/Weiss Provision Company Western Chapter VICE CHAIRMAN John Graf Priory Hospitality Group Western Chapter TREASURER Stephen Musciano ARAMARK at PNC Park Western Chapter IMMEDIATE PAST CHAIRMAN Rick Sell Metz Culinary Management Northeastern Chapter PRLA STAFF PRESIDENT & CEO John Longstreet | jlongstreet@prla.org CHIEF OPERATING OFFICER John Doulgeris, FMP | jdoulgeris@prla.org EXECUTIVE ASSISTANT Vicki Zeppa | vzeppa@prla.org
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VICE PRESIDENT OF MEMBERSHIP DEVELOPMENT Amy Daniels | adaniels@prla.org DIRECTOR OF MEMBERSHIP DEVELOPMENT—EAST Brenda Mendte | bmendte@prla.org DIRECTOR OF MEMBERSHIP DEVELOPMENT—WEST Tom King | tking@prla.org director of Membership development—CENTRAL Eric Adams | eadams@prla.org Member Services Manager Christine Preuss | cpreuss@prla.org MEMBERSHIP DEVELOPMENT REPRESENTATIVE Charlie Anderson, Northwestern PA Director of Finance & Human Resources Diane Sherwood, CPA | dsherwood@prla.org director of Government Affairs Melissa Bova | mbova@prla.org director of education Hope Sterner | hsterner@prla.org DIRECTOR OF EVENTS & ENGAGEMENT Heidi Howard, CMP | hhoward@prla.org DIRECTOR OF COMMUNICATIONS Stephanie Otterson | sotterson@prla.org FINANCE ASSISTANT Paula Judd | pjudd@prla.org OFFICE ASSISTANT Gisela McBride | gmcbride@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 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 Sarah DiCello, Publications Manager 717-238-5751 x118 sarah@thinkgraphtech.com
inside this issue 2 Message from the President 3
Chairman’s Message
6
Legal Docket
9
Member Milestones
10
Legislative Corner
12
Minimum Wage Increase
16
Legislative Spotlight
17 AH&LA Takes Lead on Closing Unfair Tax Loopholes 19 Education & Training 21
Welcome New Members
For Advertising Information: Alexis Kierce, Account Manager 717-238-5751 x119 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
©2015 All rights reserved. No part of this publication may be reproduced in print or electronically without the express written permission of the Pennsylvania Restaurant & Lodging Association.
PRESIDENT & CEO’s message Unintended Legislative Consequences The law of unintended consequences is the outgrowth of many theories, but was probably best defined by sociologist Robert K. Merton in 1936. Merton wrote an article, The Unanticipated Consequences of Purposive Social Action, which covers five different ways that actions, particularly those taken on a large scale as by governments, may have unexpected consequences. As I see it, most of our elected officials craft and promote legislation that they honestly believe will be helpful. However, it is often the case that the very same legislation that is supposed to help actually causes more harm than good, due to Merton’s law. In this issue of Matters, columnist Charlie Gerow explains the unintended consequences of raising the minimum wage. John Longstreet
“
A key role of the PRLA is to ensure that legislators have good information to help them foresee and assess the impact of [Merton’s law], and we are working hard to do this in the minimum wage debate.
”
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Pennsylvania Restaurant & Lodging matters
A key role of the PRLA is to ensure that legislators have good information to help them foresee and assess the impact of these unintended consequences, and we are working hard to do this in the minimum wage debate. The so-called Allegheny County Scores on Doors initiative illustrates how PRLA provided facts that helped the elected officials determine that the restaurant grading proposal would NOT improve public safety but, in fact, would divert precious resources away from that mission. As of the writing of this column, the Pennsylvania Legislature has filed over 1,300 new pieces of legislation. We are watching them all and closely tracking nearly 130 of those so that we can help ensure that our industry, as well as the commonwealth, does not fall victim to the unintended consequences of well-meaning legislation.
John Longstreet President & CEO
• SPRING 2015
CHAIRMAN’s message Intended Consequences of Membership As the 2015 Chairman of the PRLA, I have placed a huge focus on growing membership within our great organization. I am proud to say that, as of the end of the first quarter, we are trending positively against our aggressive new member goal. It’s important to note that even though we are one of the largest hospitality associations in the country, and a well-respected voice in both Harrisburg and throughout the commonwealth, our clout comes from our membership even more so than it does from our excellent legislative team. When we can relate to our legislators that we represent a large percentage of the second largest industry in Pennsylvania, that’s saying something. Jeff Cohen
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It’s important to note that even though we are one of the largest hospitality associations in the country, and a well-respected voice in Harrisburg and throughout the commonwealth, our clout comes from our membership even more so than it does our excellent leislative team.
”
So when we adopt aggressive new member goals, and place a lot of focus on increasing membership, we are even better positioning PRLA to promote, protect, and improve Pennsylvania’s hospitality industry. Of course, our number one focus is to SERVE our members. John and the rest of our superb team in Harrisburg remain passionately focused on that goal, as well.
Jeff Cohen Chairman of the Board
JOIN TODAY!
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LEGAL DOCKET
Megan R. Rooney, Esquire SHUMAKER WILLIAMS, P.C.
ask
General Counsel, Pennsylvania Restaurant & Lodging Association
The Attorney
THE TRUE VALUE IN GIFT CARDS
From 2005 to 2011, Americans let approximately $41 billion worth of gift cards go to waste. From receiving gift cards we just never wanted, to losing the cards to old wallets and junk drawers, it’s easy to see how so much could be lost. However, that colossal sum was generated in large part by a shortfall in the law. Prior to the Credit CARD Act of 2009, issuers of gift cards and gift certificates were hardly restricted when it came to service fees, inactivity charges, and expiration dates, and could reduce the value of a gift card before a customer even had the chance to spend it. Now, with the Credit CARD Act amending the Electronic Funds Transfer Act, business owners are prohibited from selling gift cards or certificates with an expiration date prior to five years from the date of issuance or reloading of funds. Additionally, service fees cannot be charged until after 12 months of inactivity. The terms of expiration and for fee charges must also be clearly stated on the gift card or gift certificate to be valid. Although we’re still giving up unused gift card balances to our junk drawers, after this change in the law, only 1 percent of gift card sales were estimated to have gone unredeemed in 2013 compared to 10 percent in 2007.
issuance if no expiration is specified, is presumed abandoned and unclaimed in Pennsylvania and must be reported in accordance with the state’s unclaimed property laws. Businesses must maintain proper records then of all gift card transactions in order to properly comply with the state’s requirements. Also, once the unclaimed gift cards are reported, the customer will no longer be able to redeem them at the business, but will have to seek the funds from the state. Those unclaimed presumptions, however, do not apply to “qualified gift certificates.” Pennsylvania defines a “qualified gift certificate” as a gift certificate or gift card that is subject to neither an expiration date nor any type of post-sale charge or fee (including, but not limited to, a service charge, dormancy fee, account maintenance fee, cash out fee, replacement card fee or activation or reactivation fee). Therefore, the money paid to purchase these qualified gift cards is not subject to unclaimed property reporting requirements. Rather, these cards may be redeemed by the customer at any point in time – so long as the issuer is still in business.
Pennsylvania does not provide for a longer or shorter expiration timeframe than what is stated under Federal law, but the commonwealth does apply its unclaimed property laws to gift cards and certificates. The money paid for a gift certificate or gift card that goes unredeemed for two or more years after the card’s expiration date, or for three years or more from the date of
Qualified gift certificates are beneficial not only to consumers, but also to businesses. Businesses generally cannot count gift card sales as income until the cards are redeemed or until the business reasonably believes the gift card will not be redeemed. In Pennsylvania, there’s a likelihood that businesses will have to turn over unused funds on non-qualified gift certificates to the state before being able to account for the income. Although it may take time to realize a return on gift cards not subject to expiration or fees, it could be more
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Pennsylvania Restaurant & Lodging matters
beneficial for the business to wait for customers to reappear and use the value of the gift card, rather than being subject to unclaimed property laws after a certain period of time. Gift cards are certainly beneficial to a business when they are actually redeemed as well. In most circumstances, customers redeeming gift cards do not want to be left with a negligible balance on the card. To avoid doing so, they will spend in excess of the gift card value, bringing in additional revenue for the business. If your business issues gift cards or certificates, it is important to comply with the Federal requirements and state unclaimed property laws to avoid fines and penalties, but keep in mind how your business could maximize gift card revenue. Perhaps offering incentives to gift card holders to encourage swift spending will bring additional income to your business – and will also keep customers from adding to those junk drawers. If you have any questions concerning the subject of this article, please contact Megan Rooney, Esquire (rooney@shumakerwilliams.com • 717.909.1625); or Keith Clark, Esquire (clark@shumakerwilliams.com • 717.909.1612) at Shumaker Williams, P.C.
Member Milestones BERKS-SCHUYLKILL CHAPTER
• A new P.J. Whelihan’s Pub and Restaurant has arrived in Reading! P.J. Whelihan’s Pub & Restaurant in Reading hosted Berks-Schuylkill Chapter’s Meeting & Legislative Update on April 7. • D.G. Yuengling and Son, Inc. is the biggest seller of craft beer in the nation according to the Brewers Association, a trade group in Colorado, which on March 31 released its annual list of the nation’s top craft brewing companies based on beer sales volume. The Pottsville brewery is at the top of the list followed by the Boston Beer Co in Boston. Pretty cool. BRANDYWINE CHAPTER
• Brandywine Chapter held a panel discussion on Social Media in the Hospitality Industry on April 7 at the Crowne Plaza King of Prussia. Panelists included PRLA members Marty McDonald, co-founder of Bad Rhino Social Media, Kelly Lyons, digital editor at Main Line Today and Amy DePaoli, director of marketing for Victory Brewing Company. Joe Gabriel of Fishbowl Marketing moderated the discussion. • Did you know that Victory Brewing Company is currently ranked as the 29th largest craft brewery in the United States by the Brewers Association? That’s a lot of HopDevil. • Mark your calendars for the PRLA Golf Classic East, which will be held on June 23 at RiverCrest Golf Club & Preserve, Phoenixville. RiverCrest has hosted this tournament the past five years so successfully that PRLA has entered into a contract with RiverCrest for the next three years! BUCKS-MONT CHAPTER
• This fledgling chapter held its first meeting on March 26 at the Plumsteadville Inn, Pipersville, which was hosted by proprietor and incoming chapter president, Matt George. Chapter members noshed on delicious snacks while planning their chapter installation, which will take place on Monday, April 27 at Peddler’s Village. The circa 1751 historic Plumsteadville Inn has just recently finished
renovations on its 13 guest rooms, which feature private bathrooms, flat screen TVs and wi-fi. • PRLA’s Spring Membership Meeting will be held April 26–28 at Peddler’s Village in Lahaska. Those arriving on Sunday may want to check out the dine-around
Peddler’s Village
of area restaurants. Monday’s lunch will feature chefs Caleb Lentchner of Caleb’s American Kitchen and Charlie Gipe of Hershey Entertainment Complex • More news from PJW Restaurant Group! A Pour House will be opening in Montgomeryville this fall. This will be the group’s third Pour House concept and its 18th restaurant. CENTRAL CHAPTER
• Mark your calendars for the fifth annual PA Flavor, the ultimate beer & food pairing, which will be held on Saturday, April 25 at the Main Hall of the PA Farm Show Complex. PA Flavor is presented jointly by the PRLA Central Chapter, the Brewers of PA, the American Culinary Federation and the Department of Agriculture’s PA Preferred Program. This sampling event brings together Pennsylvania breweries and restaurants, along with PA Preferred food producers, to focus on Pennsylvania products. More information and online ticketing may be found at www.paflavor.com.
• Culinary and pastry arts students at Lebanon County Career & Tech Center formed a dining club to broaden and enhance their knowledge of gastronomy. At their first excursion they enjoyed a 5-course dinner at Trevi 5 Restaurant in Hershey. The next eating trip is scheduled for this spring with chef John Reis at the Hilton Harrisburg’s newly remodeled restaurant. • New PRLA member Tröegs Brewing Company in Hershey was ranked the 44th highest selling craft brewery in the US by the Brewers Association. Since 1997, Mechanicsburg-native brothers Chris and John Trogner have been handcrafting world-class beers that combine traditional English brewing techniques with the eclecticism of American brewing. KEYSTONE CHAPTER
• Announcing the birth of another new PRLA chapter! The Penn Stater Conference Center Hotel was the venue for the Keystone Chapter’s inaugural meeting, which featured a legislative update, complimentary refreshments and time for networking. Chapter officers will include Jason Moser of the Nittany Lion Inn, Scott Whitfield from Otto’s Pub and Wendy Wagner, Days Inn State College. Stay tuned for more news from Happy Valley! LANCASTER CHAPTER
The Coffee Truck
• Lancaster County Coffee Roasters is thrilled to bring Lancaster’s FIRST and ONLY coffee truck to the city and surrounding areas. The Coffee Truck will be serving up fresh brewed cups
PA Flavor 2014
Continued on page 14 SPRING 2015
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legislative corner
STATE
FEDERAL
LOCAL STATE ISSUES Budget season has begun
12-packs in beer distributors
As you are reading this legislative corner, budget hearings have just wrapped up and the Legislature has returned to session to hammer out a budget package. Gov. Wolf has gone “all-in” with his budget package, which includes an increase in the personal income tax, a Marcellus shale tax and an increase and expansion of the sales tax. To say that the Democratic Governor and Republican-controlled House and Senate are far apart would be an understatement.
Earlier this spring, the Pennsylvania Liquor Control Board announced that, upon further review of the liquor code, beer distributors will be able to sell 12-packs of malt and brewed beverages. This revised opinion stems from a line in the code relating to packages of 128 ounces, which was originally intended for small kegs, but now the PLCB considers a contained 12-pack to meet the requirements of the code. It has also been clarified that if a case is made up of two 12-packs, each with its own UPC, then the case may be broken up for re-sale.
What to expect The Legislature needs to pass a budget by June 30. There are a few variables at play when it comes to budget season this year. • It is the first year of session after an election, which is when major pieces of legislation are completed. • The budget is never just a numbers document; it is when the major bills are completed. As such, it will be a series of “musthaves” from the House, the Senate and Governor that will eventually lead to them agreeing on a compromised budget. • Unlike the Corbett years, the budget is not expected to be completed on time and likely not until late in the summer. How is PRLA a part of the process? Many of PRLA’s top priorities will be part of the budget process and negotiations this year. Minimum wage, paid leave preemption, alcohol reform and statewide tourism funding are all expected to be dealt with during the months of April through, well, whenever the budget is signed. Paid leave preemption Senate Bill 333 (Eichelberger—R, Blair) was voted out of the Senate Local Government Committee with a bi-partisan vote of 9-2. We anticipate a full Senate vote by the end of this month, with action in the House shortly thereafter. SB 333 states that it is not the role of local governments to mandate leave requirements on business.
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Alcohol reform Due to the recent decision by the PLCB relating to 12-packs in beer distributors, PRLA is advocating louder than ever the need for comprehensive alcohol reform. A liquor bill will be part of budget negotiations this year and we will ensure that, at the end of the day, the cost of your raw materials go down, you are able to sell more product and the value of your license is protected. Hotel tax reform Hotel tax reform for the 54 counties that have a 3 percent hotel tax is expected to start moving through the legislative process shortly. This legislation, which is agreed to by the Pennsylvania Association of Travel & Tourism (PATT), County Commissioners Association of Pennsylvania (CCAP) and PRLA, will raise the cap to 5 percent but ensure the monies are only used for tourism promotion. Register for PRLA’s Legislative Day Do you care about the tipped wage? Do you want alcohol reform? Do you want your hotel tax dollars to be used properly and not for a county’s general fund? If you answered yes, then plan on attending PRLA’s Legislative Day on May 12. This event is free. Tell the story of your business and why these issues are important to you directly to your elected officials in Harrisburg. Register online at www.prla.org/legday or by completing the form at right.
27th Annual
Budget Season Has Begun
LEGISLATIVE DAY
q YES
Name: ____
Business: _
Federal Menu-Labeling
Address: __
City: _____
Paid Sick Leave in Philadelphia
Phone:____
Email: ____
Names of ot
_________
My senator/
FEDERAL ISSUES
_________
q I am inte
Federal menu-labeling While final menu-labeling regulations were released in the fall of 2014, we expect further clarification on key questions to be released from the Food & Drug Administration later this spring. NLRB Ambush Elections The U.S. Senate voted 53-46 to stop the National Labor Relation Board’s ambush election rule from taking place. While the motion passed, it is still not enough to override a near-certain White House veto. As a reminder, ambush election rule would allow votes to 27ththeAnnual unionize a business to occur as soon as 11 days after a petition is filed (the current time is 38 days).
LEGISLATIVE DAY
LOCAL ISSUES
q Please c
Protect your business. Tell your story. May 12.
PRLA • 100
REGISTRATION FORM q YES! Sign me up for Legislative Day. Name: _______________________________________________ Business: ____________________________________________ Address: _____________________________________________
Paid sick leave in Philadelphia
City: ________________________ State: ____ Zip: __________
Philadelphia City Council voted 14-2 to mandate paid leave requirements on businesses located in the City of Philadelphia. On May 13, businesses will need to start calculating the hours each employee works to determine the one hour for every 40 hours worked allowance. Businesses will need to allow employees to use their paid leave 90 days after that—August 11.
Phone:_______________________________________________
$15/hour minimum wage
My senator/representative (if known): ________________________
Philadelphia held a hearing to determine if they could pass legislation in the City to raise the minimum wage to $15/hour. The City Law Department clarified, very clearly, that state law preempts Philadelphia from raising its minimum wage to anything higher than that of the state—which is currently $7.25.
____________________________________________________
Protect your business. Restaurant grading After a majority of Allegheny County story. Council members Tell your Mayvoiced 12. opposition to the restaurant grading proposal advocated by
County Executive Rich Fitzgerald and the Allegheny County Health Department (ACHD), it is expected that ACHD will pursue the avenue of increasing fines for violations rather than the grading proposal. If the grading proposal is truly dropped, this is a huge win for the PRLA and our Western Chapter members who have been advocating against the proposal from the very beginning.
Email: _______________________________________________ Names of others attending with me: _________________________ ____________________________________________________
q I am interested in the PRLA Mentor Program. q Please contact me about bus transportation to this event.
Return Returncompleted completedregistration registrationform formto:to: PRLA • 100 State Street • Harrisburg, PA 17101PA•17101 Fax (717) 236-1202 PRLA,100 State Street, Harrisburg, Fax (717) 236-1202 Register online at www.prla.org/legday. Register online at www.prla.org/legday
SPRING 2015
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By Charlie Gerow
MINIMUM
WAGE
INCREASE It is part of the Law of Unintended Consequences: raising the minimum wage inevitably winds up hurting those it’s intended to help.
Nobel Laureate economist Milton Friedman found that minimum wage increases “have effects exactly the opposite of those which their well-intentioned sponsors intended them to have.” Dr. Friedman concluded that the result of raising the minimum wage “will be and must be to add to the ranks of the unemployed.” He further believed that this especially hurt minorities. “I am convinced that the minimum wage law is the most anti (AfricanAmerican) law on our statute books—in its effect not its intent.” That’s because many good-hearted people hold the mistaken belief that minimum wages are a lifeline for the poor. It is a confusion of wage rates with wage income. The majority of employers who would be forced to pay additional wages are small businesses, the major job creators in our 12 •
Pennsylvania Restaurant & Lodging matters
• SPRING 2015
economy. They would take a signifi cant hit to their ability to create and sustain part-time and entrylevel jobs. In 2008, when the minimum wage was last dramatically raised, stories of hiring freezes, reduced hours, price increases and layoffs abounded.
Countries with minimum-wage laws—especially artificially high ones—invariably have higher unemployment rates than those who don’t. Switzerland, with no minimum wage, has an unemployment rate of 2 percent (its five-year high was 3.9 percent). Meanwhile, those European countries with high minimum wages and mandated job benefits have unemployment rates for younger workers that hover around 20 percent or higher.
“
Proposals to raise the minimum wage are a political Fool’s Gold— designed to make proponents look compassionate and caring and those with reservations as insensitive to the needs of the working poor. Minimum wage hikes may make good copy for political brochures but they are bad public policy. They too often hurt more than they help.
”
For example, the Law of Unintended Consequences is in full view when it comes to the tip credit for servers in restaurants and other workers who depend on tips as part of their compensation. Proponents of hiking the minimum wage and eliminating the credit point to the fact that tipped workers only receive $2.83 per hour. What they fail to mention is that for nearly 40 years Pennsylvania law has required these workers to make at least the minimum wage and the average wage for these employees is between $16 and $20 per hour. Eliminating the credit and raising the minimum wage would have a direct negative impact on these workers. They could find their wages going from their current level DOWN to $10.10 per hour. The goal should be to give these and other largely younger workers a handhold on the first rung of the ladder of economic opportunity. Why put that initial rung out of reach of those who need and want it the most? Proposals to raise the minimum wage are a political Fool’s Gold— designed to make proponents look compassionate and caring and those with reservations as insensitive to the needs of the working poor. Minimum wage hikes may make good copy for political brochures but they are bad public policy. They too often hurt more than they help. Charlie Gerow, CEO of Quantum Communications, is a nationally recognized leader in strategic communications and a trusted advisor to leaders in government and business.
The United States, at the time we first enacted a minimum wage, had an unemployment rate of less than 2 percent. Contrast that with today’s rate among African American males [approximately 11 percent according to the Bureau of Labor Statistics]. We’re not being told the whole story when advocates of higher minimum wages claim those living below the poverty level need, indeed are entitled to, a “liveable wage.” The truth is that most minimum wage earners not only don’t live below the poverty line, they are nowhere near it. More than half live in households with incomes of $50,000 or more. Nearly one-third live in households with income greater than $75,000. Previous increases in the minimum wage have not only contributed to unemployment and underemployment, they have failed to deliver what they promised. A recent study by Joseph Sabria of American University and Richard Burkhauser of Cornell University found that “minimum wage increases between 2003 and 2007 had no effect on state poverty rates.” If previous minimum wage hikes failed to make much of a dent in the poverty level, why would another? While a minimum wage increase will result in a pay raise for a few, for many others it means a lost job, fewer hours (and decreased pay) or no opportunity to enter the workforce at all. Minimum wages are designed, their architects tell us, as an entry-level wage from which workers can earn more and more. Transforming them into a government mandated “livable wage” with the extra burden it places on job creators in a shaky economy is bad for business, bad for the economy and bad for workers. SPRING 2015
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member milestones continued Award from the Sidney Kimmel Cancer Center at the 6th Annual Men’s Event at the Union League benefiting Prostate Cancer Research and Awareness. Garth has supported this charitable organization by holding events at his restaurant for several years.
of coffee and hand crafted espresso drinks in different locations around Lancaster through the work week and at local events. You can track the truck at lancastercoffeetruck.com/find-the-truck. PHILADELPHIA CHAPTER
• Philadelphia Chapter board member and CEO of Ellis Coffee Co. Gene Kestenbaum and his family are chairing the Renaissance Ball for the Crohn’s Colitis Foundation (CCFA) on Saturday, April 18 at the Four Seasons in Philadelphia. Gene’s son Adam was diagnosed with a digestive disease 28 years ago when he was 10 years old. Event attendees will be honoring Louis Eni, President & CEO of Dietz & Watson, and Children’s Hospital Of Philadelphia (CHOP) for over 25 years of service to the Inflammatory Bowel Disease community. You can find more informa tion at www.ccfarenaissanceball.com. • The Inn at Penn has done it again – reclaiming Hilton’s most coveted honor – The Genius of the End Award. The Inn also came home, for the third year in a row, with Hilton’s Award of Excellence as one of the top 5 Hiltons in the Americas and Highest Guest Satisfaction Award among all Hiltons. The team is beaming with pride, especially with over 68 of the Inn’s employees receiving special recognition recently for years of service that ranged from 10–30 years! • Women in Hospitality—Philadelphia will hold a networking event titled “When a Woman Walks with Confidence” on April 23 at the Four Seasons Philadelphia. Presenter Vera Cornish will help attendees explore the relationship between confidence and leadership development. Learn more about Women in Hospitality at www.prla.org/WIH. • David Pierce, Fred Kaplan and Joyce Wigginton, of WeiserMazars LLP, will lead a hospitality accounting seminar on May 4 from 10:00–12:30 as part of the Business of Hospitality Education Series launched by Drexel University’s Center for Hospitality and Sport Management. The cost is $20 and includes lunch provided by Drexel’s Department of Culinary Arts and Food Science. Interested in attending? Please contact WeiserMazars at 215-259-1000. • On April 22, Garth Weldon, past PRLA Chairman and proprietor of The Prime Rib, Philadelphia will receive the Spirit of Commitment and Generosity 14 •
WESTERN CHAPTER
• May 7 brings Taste the Good Life back to DiSalvo’s Station Restaurant in Latrobe. Former PRLA Chairman Joey Disalvo started Taste the Good Life as a gourmet, five course dinner for a select group of food and wine aficionados in 1994. The bi-annual event is now a gala with stations throughout the restaurant which offer the best of food, wine, spirits, desserts and fine cigars as well as entertainment, raffles and silent and live auctions. The DiSalvo family saw the event as an opportunity to give back from their success. Many western Pennsylvania charities have been the beneficiaries of the Taste the Good Life proceeds. Learn more at www. tastethegoodlife.org.
Sokoloff, have been joined by their son Sydney in the operation of their businesses. Congratulations Specialty Group! • On March 12, Ditka’s Pittsburgh executive chef, Mike Campbell, accompanied by Tony Ferraro of Reinhart Foodservice, was invited to cook lunch for cadets at West Point. Reinhart purveys to both West Point and Ditka’s. A Reinhart representative introduced Chef Campbell to a West Point kitchen manager who celebrated his retirement at the Ditka’s in Robinson. In the course of the evening, the retiree described West Point kitchen operations to Campbell and offered to arrange a visit and tour for him. In the end, Campbell was invited to cook lunch
• Monterey Bay Fish Grotto has undergone a stylish renovation in the restaurant group’s flagship location on Mount Washington and is scheduled to West Point reopen in early spring. The renovation, spearheaded for 4,500 cadets. The menu said it was by the collaboration of Monterey Bay sloppy joe day, but Chef decided to ownership and Moss Architects, will upgrade a bit, serving barbequed brisket also coincide with the launch of an sandwiches, macaroni-and-cheese and innovative new menu, created by coleslaw. Executive Chef Ed Smith. The menu will continue to feature Monterey Bay • Mark your calendars for the next Seafood Watch Certified Sustainable Women in Hospitality—Pittsburgh event seafood. Monterey Bay is the only which will be held on June 1 at Hall of restaurant in Pennsylvania to hold this Fame Club at PNC Park, which will certification. The new menu will also feature Speed Networking sessions, continue to support local meat, seafood complimentary hors d’oeuvres and and produce vendors. The lower level, open bar. More information, including with impressive views, will become a a schedule of upcoming Women in concept lounge and sushi bar named Hospitality events may be found at Sakari at Monterey Bay, Japanese for www.prla.org/WIH. peak/prime/summit. Sakari will feature For more information on any of the above small plates and fresh sushi. events or to include your event or news in • Specialty Group and its affiliates, the next issue of Pennsylvania Restaurant Specialty Lenders, Specialty Real Estate & Lodging Matters, contact Heidi Howard, and Specialty Liquor License Brokers, director of events & engagement, at (800) are preparing to celebrate 30 years 345-5353 or email to hhoward@prla.org. serving the bar and restaurant industry. Recently, the founders, Ned and Terri
Pennsylvania Restaurant & Lodging matters
• SPRING 2015
legislator spotlight
What are your personal priorities, legislatively, this session? Two priorities I will focus on this session will be property tax elimination and redistricting reform. We have become overly reliant on property taxes to fund our education system. While this may have been a fair taxing system generations ago, property ownership no longer is a reflection of one’s wealth. Education funding should come from state sources, not local, to ensure adequate levels and an equitable education for our children.
Senator Lisa Boscola (D, Northampton/ Lehigh) What made you want to run for elected office? My parents were always active in the community and in local politics. It’s something I always wanted to do. When I was 32 years old working in the Northamp ton County Court Administrator’s office, my local state house seat was open. I decided to quit my job with the county and pursue my dream. I was fortunate enough to win that first election. Four years later, I was elected to the state Senate where I still serve today.
As Chairwoman of the Consumer Protection & Professional Licensure committee, what issues do you foresee the committee dealing with this legislative session? One of the first major pieces likely to be considered by the committee is legislation authorizing transportation network companies (TNC’s) such as UBER and Lyft. Both companies are currently operating in 66 counties under temporary authority by the Public Utility Commission (PUC). That temporary authority expires in two years, so legislation will have to be passed for them to continue to provide service within the commonwealth. Another issue likely to be considered by the committee is the reauthorization of Pennsylvania’s One Call system. One Call is a system that provides up-to-date information on the location of underground utilities in the area of construction projects. 16 •
Another priority of mine is reforming the way we draw legislative and congressional districts. Currently in Pennsylvania, legislative districts are drawn by the Legislative Reapportionment Commission, which is a commission of the four legislative leaders with the fifth member usually appointed by the state Supreme Court. Congressional districts are drawn by passing legislation. These methods give an unfair advantage to the majority party and allow politics to determine who represents us. The results are districts drawn with political interests in mind, not the community interests. I am working on a Constitutional amendment that would allow a citizens commission to draw the maps and submit them for approval by a super-majority of the General Assembly. Because this is a Constitutional amendment, the legislation would have to pass two consecutive legislative sessions and be approved by the voters through a referendum, hopefully in time for the 2020 census.
Can you explain your position as it relates to the tipped minimum wage? I would oppose legislation that would remove the tipped wage. I believe it would hurt small business, adversely impact the job market and reduce the take home salary for wait staff. It is an ill-conceived concept advanced by some who do not completely understand the issue and the potential ramifications.
How does the change in gubernatorial leadership affect how the legislative process works, if at all? While I hope it does not have a significant impact, I ultimately believe it will. We have a split government now, with Republicans controlling the House and Senate, and Democrats controlling the Governor’s
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office. This may lead to gridlock. Having a budget on time this year may be in jeopardy given Gov. Wolf’s aggressive budget proposal and Republican leadership’s reactions to that proposal.
Budget season has begun, what priorities do you have is it relates to the 2015/16 Pennsylvania Budget? I was pleased to see Gov. Wolf propose a property tax reduction as part of his budget proposal. While I support complete elimination of property taxes, I do believe the Governor’s proposal is a step in the right direction. It places a greater funding burden on the state, not the local school district. However, my ultimate goal is the complete elimination of property taxes to fund our schools. Additionally, I will work to restore critical funding that has been cut in recent years to some of the state’s most successful economic development programs. These programs, such as the Industrial Resource Centers and the Ben Franklin Technology Partnerships, have been successful in generating tax revenues for our commonwealth. They typically generate four to six dollars for every dollar spent. These are the types of programs we need to invest, not cut.
If you could change anything about the legislative process in Harrisburg, what would it be? I think I would establish rules that would give the minority party more input in legislation. Often, good ideas die simply because of the party of the lawmaker proposing it. This should stop. One change I would make is to require every bill to at least get a committee hearing, if not an actual committee vote. Let ideas stand or fall based on their merit, not by which lawmaker introduced it.
AH&LA Takes Lead on Closing Unfair Tax Loopholes Katherine Lugar, President/CEO, AH&LA
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When it comes to state and local occupancy and sales tax, online retailers of hotel rooms should operate on a level playing field with hotel companies. Doing so ensures that we all win and together grow and prosper.
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Over the next few weeks, as local and state governments around the country look to finalize their budgets, AH&LA is urging them to take a hard look at closing the unfair tax loopholes that currently exist for online travel companies (OTCs). With some five million people checking into hotels each day, the hotel industry generates $163 billion in sales, which in turn creates substantial tax revenue. This revenue is a much-needed boon to local and state governments, providing added resources that go right back into helping communities, towns and cities thrive. But OTCs are not paying their share. Hotels remit taxes based on the retail price at which rooms are sold to customers, whether those rooms are booked through the hotel’s website or other avenues. However, online travel companies, such as Expedia, Orbitz and Travelocity, among others, have chosen to calculate the sales and occupancy taxes they are required to remit based off the wholesale rate they pay to hotels and not off the retail rate they charge customers. When a retail store sells a television or clothing or other products, sales tax is SPRING 2015
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calculated based on the price paid by the consumer at the time of the sale, not on the wholesales rate paid by the store to the manufacturer or wholesaler. Yet, OTCs have taken an unorthodox approach simply to lower their tax bill. This tax dodge is costing states and local governments significant sums of revenues. Governments across the country have come to the same conclusion. In fact, the National Conference of State Legislatures issued guidance in 2014 that stated, “To ensure full collection of taxes that are due and to promote equity and fairness in the tax code, states should consider requiring online travel companies to remit taxes based on the rental price paid by the user.” As part of our broader focus on distribu tion and technology, AH&LA is taking a lead on this issue around the country to ensure that everyone plays by the same rules. When it comes to state and local occupancy and sales tax, online retailers of hotel rooms should operate on a level playing field with hotel companies. Doing so ensures that we all win and together grow and prosper.
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education & training Students from Milton Hershey School and Monroe Career Technical Institute win top honors at inaugural state ProStart Invitational Shamar Foster, Bailee Samlal, Alayzah Thompson, Jacob Reynolds of Milton Hershey School take home the top prize in the culinary competition.
Kylea Walker, Julia Brink, Sierra Grant, Toni Latorre, Pierce Bair of MCTI take home first place in the management competition.
On February 25, 2015, PRLA and our Educational Foundation held our first ever state ProStart Invitational at the Penn Stater Conference Center Hotel in State College. The event drew more than 50 ProStart students, representing six schools, who demonstrated their mastery of restaurant leadership skills in a fast-paced competition. Students from the Milton Hershey School were named the 2015 culinary champions, and students from MCTI took home first place in the management competition. Both schools will represent Pennsylvania at the National ProStart Invitational in Anaheim, Calif., April 18–20.
Instructor George Hendry’s MCTI team captures second place in the management competition.
The culinary competition highlights the creative abilities of each team as they prepare a three-course meal in 60 minutes, using only two butane burners with no access to running water or electricity. Teams are evaluated on taste, teamwork, safety and sanitation, among other skills. Management teams develop a business proposal for an original restaurant concept and present it to a panel of industry judges, who challenge them to address the issues restaurant managers face on a daily basis. C.A. Curtze Company, a food service distributor headquartered in Erie, Pa., was the event’s platinum sponsor. Ecolab, The Culinary Arts Institute at Montgomery County Community College, Westmoreland County Community College, PepsiCo, Auntie Anne’s Inc., Penn State Hospitality Services and Mercer Culinary were additional event sponsors.
A.W. Beattie Career Center Team A took home second place in the culinary competition.
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WELCOME new members Restaurant Members 424 Walnut Restaurant Sewickley Abe Fisher/Dizen Goff Philadelphia All Star Sports Bar & Grill Canonsburg Allegheny Country Club Sewickley Applebee’s Neighborhood Grill & Bar Erie Applebee’s Neighborhood Grill & Bar Erie
CookNSolo Restaurants Philadelphia
Percy Street Barbecue Philadelphia
Cork 1794 North East
Qdoba Mexican Grill Erie
Damianos Restaurant Midland
Quaker Steak & Lube Erie
Duling-Kurtz House & Country Inn Exton
RedBeard’s on Sixth Pittsburgh
Dunkin’ Donuts Erie
RedBeard’s Sports Bar & Grill Pittsburgh
Dunkin’ Donuts/Baskin Robbins Erie
Rising Sun Pizza Philadelphia Rolling Hills Country Club Canonsburg
Edgeworth Club Sewickley
Applebee’s Neighborhood Grill & Bar Erie
Famous Dave’s Legendary Pit Bar-B-Que Erie
Applebee’s Neighborhood Grill & Bar Warren
Federal Donuts Philadelphia
Applebee’s Neighborhood Grill & Bar Meadville Asiago’s Tuscan Italian Pittsburgh Baker’s Restaurant Dillsburg Belly Delicatessen Monroeville BIBA Beaver Caleb’s American Kitchen Lahaska Chickeneers Harrisburg Chubby’s Philadelphia Cock ‘n Bull Lahaska
Secrets Bakery West Reading Sheffield Lanes Aliquippa Spirit of Philadephia Philadelphia
Feliz Restaurants Fort Washington
Square Cafe Pittsburgh
Gallo’s Italian Villa New Castle
Steak ‘n Shake Erie
Gran Caffe L’Aquila Philadelphia
TBA Lou Minutello Glenshaw
Harry’s Place Darlington
The Loft Eatery New Cumberland
Hooch & Blotto’s Erie
The Rochester Inn Pittsburgh
Il Pizzaiolo Pittsburgh
The Wooden Nickel – North Huntingdon North Huntington
Le Castagne Philadelphia
Trapuzzano Pittsburgh
Matteo’s Pittsburgh
Tröegs Brewing Co. Hershey
Micro Diner LLC Pittsburgh
White Circle Club Carlisle
Packs & Dogs Pittsburgh
Continued on page 22
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WELCOME new members continued Wildwood Golf Club Allison Park Zahav Philadelphia
Lodging Members The Mansion At Maple Heights Pittsburgh Fairfield Inn Scranton Dickson City Residence Inn Exton Exton Hotel Indigo Pittsburgh - East Liberty Pittsburgh Hilton Garden Inn Erie Erie Hilton Garden Inn Exton Exton Hotel Monaco Pittsburgh Pittsburgh Hampton Inn State College State College Hyatt Place Pittsburgh/ North Shore Pittsburgh Penn Wells Hotel Wellsboro Fairfield Inn and Suites by Marriott Pittsburgh/Neville Island Pittsburgh Courtyard Pittsburgh Settlers Ridge Pittsburgh Wyndham Philadelphia Historic District Philadelphia Hampton Inn Carlisle Carlisle
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Other Hospitality Greenwood Hospitality Harrisburg Scott Enterprises Erie
Allied Members Carbonator Rental Services 6500 Eastwick Avenue Philadelphia, PA 19142 Andy Pincu CardioReady 1100 E Hector St, Suite 398 Conshohocken, PA 19010 Gretchen Kirkwood Domino Insurance Agency 329 Greengarden Boulevard Erie, PA 16508 Lili Morton DTT 1422 Limekiln Pike, Unit 2 Dresher, PA 19025 Dave Edelson FarmArt 1111 E. Ashland Avenue Folcroft, PA 19032 Sherry A. Klinghoffer Golia Vodka 815 Summit Road Narberth, PA 19072 David Solomon GSD Chem Inc. 2000 Industrial Highway Eddystone, PA 19022 Heather Rayle John Gross & Company Inc. 400 Cheryl Avenue Mechanicsburg, PA 17055-3319 Joe D’alessandro PFE Corporation 519 East General Robinson Street Pittsburgh, PA 15212 Mr. Jeff Becker
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Pittsburgh Restaurant Week P.O. Box 6958 Pittsburgh, PA 15212 Brian McCollum Prevent Floor Safety Systems 1933 Crafton Boulevard, Suite 5 Pittsburgh, PA 15205 Brian Schlatterer Road Runner Recycling 3712 Forbes Avenue, 2nd Floor Pittsburgh, PA 15213 Bob Fitzpatrick, Shane Kilcoyne, Nino San Doval Ryder System Inc. 15 Ingram Avenue Pittsburgh, PA 15205 William Steudler Sculpture Hospitality PO Box 1875 Marcus Hook, PA 19061 Kyle Davis The W.I.N. Project 90 S. 25th Street,1st Floor Pittsburgh, PA 15203 Henry Ramsey Weiser Mazars 501 Office Center Drive, Ste 300 Fort Washington, PA 19034 Fred Kaplan Whitsons Culinary Group 1800 Motor Parkway Islandia NY 11749 Craig Whitcomb
Retired Members Bill Patsis
EDUCATION & TRAINING We also benefited from the support of more than 40 volunteers, who judged, timed, checked teams in and, in general, just made the event run smoothly. The schools that competed in this year’s competition included A.W. Beattie Career Center, Central Westmoreland Career & Technology Center, Crawford County Career Technical Center, Greater Johnstown Career & Technology Center, Milton Hershey School and Monroe Career & Technical Institute.
Above: Crawford County Career Technical Center took home third place in the management competition. Left: MCTI’s culinary team snagged third place.
Congratulations to all participants!
ServSafe® Food Protection Manager Certification Classes
TODAY REGISTER rg www.prla.o 353 (800) 345-5
presented by the Pennsylvania Restaurant & Lodging Association
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