Wisconsin Restaurateur - First Quarter 2014 by Wisconsin Restaurant Association

The Magazine of the Wisconsin Restaurant Association

Midwest Foodservice Expo

The Fight for the Restaurant Industry’s Reputation Sneak Peek at Expo Products Sandy D’Amato: An Unparalleled Passion for Food

March 10–12 State’s Largest Foodservice Event

Info to Go The Right Ingredients: Restaurant Operations Resources

• Scam Roundup • Alcohol Laws FAQs • Most Common HR Mistakes

First Quarter 2014

www.wirestaurant.org

Vol 81 • No 1

Finding Good Fortune in 2014 Prognosticators provide trend predictions

ue! – s s i s i th t this Enjoytion members ghequarter Associa resource eac valuable

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Restaurateur • First Quarter 14

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T h e M a g a z i n e o f t h e Wi s c o n s i n R e s t a u r a n t A s s o c i a t i o n

First Quarter 2014

Vol 81 • No 1

10 Midwest Foodservice Expo:

Your Guide for What to See and Do

12 Info to Go:

Answers from the WRA Hotline Team

16 Finding Good Fortune in 2014

Prognosticators Provide Trend Predictions

22 Most Common HR Mistakes 28 The Fight for the Restaurant Industry’s Reputation 32 Sandy D’Amato: An Unparalleled Passion for Food

4 A La Carte 6 Chairman’s Column 8 President and CEO’s Column 48 WRBN 50 The Social Dish 52 The Back Burner

37 Alcohol Laws FAQs 40 Gluten-Free Products and Resources at the Midwest Foodservice Expo

42 Scam Roundup 45 Preview of Products You’ll See at the Midwest Foodservice Expo

Co-editors Tracy Kosbau & Kate Reiser Art Director Gary Cox Advertising Director Ryan Pettersen Managing Editor Susan Quam

Circulation Director Ryan Pettersen Layout and Electronic Imaging Shane Sanders Printing W.D. Hoard & Sons Printing, Fort Atkinson, WI

Statements or expressions of opinion here are those of the authors and not necessarily those of Wisconsin Restaurateur, the Wisconsin Restaurant Association or editors. In no event will the authors, the editors, the reviewers or the publisher be liable for any damages resulting from use of this material. The publication of any advertisement is not to be construed as an endorsement of the product or service offered unless the ad specifically states that there is such an endorsement or approval.

Wisconsin Restaurateur is the official publication of the Wisconsin Restaurant Association. Published quarterly by the Wisconsin Restaurant Association with editorial and executive offices at 2801 Fish Hatchery Rd., Madison, WI 53713. 800/589-3211. Postmaster: send address changes to Wisconsin Restaurateur, 2801 Fish Hatchery Rd., Madison, WI 53713. Periodicals postage paid at Madison, WI and additional offices. Publication number (USPS 688-540) ISSN 0274-7472. Subscriptions: $17.50 annually; $8.00 per copy. Non-members $32.00 annually.

First Quarter 14 • Wisconsin

Restaurateur

Visit us online at www.wirestaurant.org

A La Carte A S a v o r y S a m p l i n g o f R e s t a u r a n t N e w s a n d Tr e n d s

Pilot tests of the tablets by Chili’s found an increase in the size of the average check as well as a more enjoyable experience for guests. Another surprising finding: an increase in tip amounts due to the 20% default that comes up on the tablet. Chili’s offers unlimited games on their tabletop tablets for $0.99 (revenue is shared with Ziosk). According to Chili’s, about one in 10 tables pay for the gaming options. Some other restaurant chains offering tabletop tablet technology in select locations include Bolt Burgers, Red Robin, Uno Chicago Grill and Applebee’s. Source: Businessweek, Ziosk and Washington City Paper

Gluten-Free: Perception is Reality

WRBN The Lowdown on Lunch Spending

Americans go out for lunch on average twice a week and spend $10 each time according to a study by Visa, Inc. This adds up to an average of $936 annually. The survey also found that men generally spend more than women. Men spend on average $21 per week for lunch while women spend a little bit less than $15. Another interesting fact from the study: those who make more, spend less on lunch. Survey respondents that make less than $25k per year reported spending more per meal, at $11.70, compared to those in any other income bracket. Those earning over $50,000 per year spent an average of $9.60 per meal.

Roundtable

Source: Nation’s Restaurant News

Kosher Craze

Kosher is looking like it might be one of the next big food trends. According to the Kosher Advisory Service, kosher food sales have slowly increased and will generate a projected $17 billion in 2013 with 70,000 products available on store shelves, compared to 3,000 in 1970. Mintel research reports that only 15% of those purchasing kosher products do it for religious reasons, 62% buy them because of quality and 51% for general perceived healthfulness.

Hotline Q&A

Source: Forbes

Table Top Tech Increases the Check

As more restaurant chains invest in touchscreen technology, many benefits of digital, at-the-table ordering are being reported. In September, Chili’s® Grill & Bar and Ziosk, makers of ordering, entertainment and pay-at-the-table tablets announced a partnership to bring tabletop tablets to all company-owned restaurants nationwide by the first half of 2014. 4

Wisconsin

With the recent FDA ruling on gluten-free labeling standards, the popularity of gluten-free foods shows no signs of slowing down. According to recent research from Mintel, it’s not just the glutenintolerant who are filling their carts with gluten-free products. Indeed, 65% of consumers who eat gluten-free foods do so because they think they are healthier, and 27% eat them because they feel they aid in their weight loss efforts. “It’s really interesting to see that consumers think gluten-free foods are healthier and can help them lose weight because there’s been no research affirming these beliefs,” says Amanda Topper, food analyst at Mintel. “The view that these foods and beverages are healthier than their gluten-containing counterparts is a major driver for the market, as interest expands across both gluten-sensitive and health-conscious consumers.”

And Along Came the Cider

A recent Technomic research survey shows hard cider as a fastgrowing category in beverage sales. “Cider’s growth is tremendous— volume at retail and in restaurants rose 78 percent overall in 2012 and continued to grow in 2013. The opportunity for cider in restaurants and bars will be influenced by numerous factors going forward,” says Eric Schmidt, Director of Research at Technomic. WR

Restaurateur • First Quarter 14

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Restaurateur

W R A B o ar d Directors

o f

Executive Committee

Chairman

Restaurant Jobs Provide More Than Wages

Chairman of the Board Charlie Gray Culver’s Frozen Custard, Rothschild Vice Chairman of the Board/Chairman Elect Ada Lara Thimke Lara’s Tortilla Flats, Oshkosh Treasurer Steve Schilling ZaZING!, North Prairie President & CEO Ed Lump, fmp Wisconsin Restaurant Association, Madison

by Charlie Gray Culver’s Frozen Custard, Rothschild

Immediate Past Chairman Lynn McDonough Connell’s Restaurants, Eau Claire

fter recent protests and related press coverage regarding wages in our industry, I sent a column to the Wausau Daily Herald featuring a letter that was written by one of our employees who recently finished his education and is moving on to a career in his field of study. It is a heartfelt account of his experience with us and is just one example of the positive impact we have on the lives of young people with the entry-level jobs our industry provides. I received the permission of the letter’s author to have it republished:

To Charlie and Torri along with the True Blue Crew, This is my official two-weeks notice. I started my Culver’s career in the summer of 2005 not knowing what was in store for me. I never thought I would have learned the lessons I did throughout this job. For example, teamwork is one of the first things I learned. Especially in this kind of occupation, if one person is struggling we are all struggling. Even though Culver’s is in the fast dining industry there are many valuable life lessons to be learned and applied in future employment. The things I am taking with me are: The value of teamwork; problem solving; being honest; being proud of the work you do; knowing that if something is worth doing then it is worth doing the right way the first time; and being dependable to your coworkers. I feel we should all realize that Culver’s is a big family and we are all very connected to each other in one way or another… …I especially want to thank past and current management for putting up with my antics and the bumps in my life. Not too many employers, if any, would have given me the five-plus chances I got to better myself, so for that I am extremely thankful. I really don’t know where I would be if I didn’t have the steady job that Culver’s provided me. The jobs Culver’s offer are perfect for students, and anyone given the chance to work for them better be grateful for the opportunity. Yes the owners of the store have a business to run, but they are willing to help you in any way that they can—and not only for their business but also because they want to see each and every one of you succeed. This letter really doesn’t do justice to how thankful I am for everything this store and the people in it have done for me, but I did my best. So until next time, much love and don’t forget to be grateful for the things you have, and the opportunities given to each and every one of us. Sincerely, Justin Holzhaeuser

The restaurant industry provides many young people with their first job experience and many of them choose our industry as their lifelong career. Even if they choose a different career path, they have learned important skills and a work ethic that will carry them far in their pursuit of the American dream. We are proud to be a part of the restaurant industry, and proud of the entry-level jobs we provide. In light of the current debate about minimum wage and entry-level positions, it is important for all of us to tell our stories. The rest of the world needs to know that these kinds of stories aren’t the exception, they are happening every day in our industry. I encourage you to share the great stories about people who have found a home in the restaurant industry. Write a letter to the editor at your local paper, highlight your exemplary employees in your business, tell your legislator or tell WRA your stories to use in their communications. This is not a time to be humble.

Wisconsin

Chico Pope Buckhorn Supper Club, Milton Dennis Heyde Fanny Hill, Eau Claire Susan Patterson Al & Al’s Stein Haus, Sheboygan The board of directors is comprised of restaurant operators from around the state and industry supplier representatives. The board directs the WRA staff and sets the policies of the Association.

W R A E d u c at i o n F o u n d a t i o n B o ar d of Directors Executive Committee Chairman of the Board Larry Deutsch The Vollrath Company, Stoughton Chairman Elect Michael K. Tsuchihashi Atlas BBQ, Grafton Treasurer R.C. Schroeder, Jr. Big Tomatoes, Green Bay Secretary/Executive Officer Ed Lump, fmp Wisconsin Restaurant Association, Madison Immediate Past Chairman Steve Davis, fmp Ardy & Ed’s Drive-In, Oshkosh WRA Chairman of the Board Charlie Gray Culver’s Frozen Custard, Rothschild Rhoda Steffel Mark’s East Side, Appleton Lynn McDonough Connell’s Restaurants, Eau Claire The Foundation board of directors is comprised of approximately 30 individuals who are foodservice operators, educators and industry suppliers. The board directs the WRA EF staff and sets the policies of the Foundation.

Visit www.wirestaurant.org for a complete listing of board members.

Restaurateur • First Quarter 14

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We Are All In This Together by Ed Lump, FMP WRA President and CEO

WRA Board of Directors

always think about the saying “we are all in this together” when “show time” rolls around. This year I am thinking about it even more as our show has been renamed and rebranded as The Midwest Foodservice Expo. The name reminds us that this is not an event just for a specific segment or locality. This show is not just for the Milwaukee area or Southeastern Wisconsin. It has always been produced for all of Wisconsin and now it is an event for the industry in our entire region. There is nothing that speaks to the mission of WRA like the Expo. Attendees get to taste foods and beverages, shop competitively and be exposed to a great variety of services. We get a lot of calls and emails at WRA inquiring about where to go to get specific information about laws, suppliers, products, every kind of service and, above all, trends. We answer all of those questions throughout the year, but… if readers are interested in this kind of education and information, the Midwest Foodservice Expo is the place to be. Seminars, presentations, workshops and culinary demonstrations all are available at the Expo and most for the nominal price of admission. WRA is there too. For questions about laws and regulations, “WRA has your back.” Many governmental agencies have booths and the WRA staff is available in our booth to answer questions—doing a little venting is OK too. We are here to listen and to serve. The Midwest Foodservice Expo is for the industry. Take advantage of this wonderful opportunity. It is wisely said that “there is no shortage of excuses not to do something, but very few reasons.” I hope to see you on March 10-12. Continuing with the “we are all in this together” theme, you may recall that I have written about the organized “reputational attacks” against our industry in some of my previous columns. Our Chairman, Charlie Gray, writes about this in his column in this issue and this issue also includes a feature article on this topic. I encourage you to take a look at these as they provide good insights on what is going on and how you can help in defending our industry. The attacks are well organized and essentially funded by unions. They are unified but have taken a segmented approach. For example, Fast Food Forward (FFF) has a similar strategy, talking points and objectives as the Restaurant Opportunity Center (ROC) but because they attack different segments of the industry, they look like different organizations. ROC’s targets are typically upscale restaurants, while FFF targets quickservice restaurants (QSRs). It is tempting for our industry to allow ourselves to be segmented as well. Demonstrations at quickservice restaurants may be overlooked by those that are not chains. Casual dining or independent restaurants may overlook picketing at high-end restaurants or big box retailers and so forth. As most of these demonstrations take place in larger communities, a rural business may figure that it does not affect them. This is false reasoning. Media has no borders. If the public believes the narrative, location does not make a difference. If the minimum wage goes up to $10-15 or paid sick leave becomes law, every business is affected. We have to be unified to prevail. Our name is the Wisconsin Restaurant Association. We are not the QSR or chain association. We are not the white table cloth or casual dining association. WRA is not the adult beverage association or an association representing only those who don’t serve alcohol. WRA proudly serves every business licensed to serve food. An attack on one is an attack on all. I urge all readers to understand this and unify. If we allow ourselves to be segmented, we are going take some very serious hits. Come to the Expo. Let’s talk about it. We are in this together.

Wisconsin

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W RA

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Participating at the local level is a great way to get involved with WRA and network with others in the foodservice industry. Visit www.wirestaurant.org for a comprehensive chapter map and listing (Click on Connections/Local Chapter Contacts). Big Four Chapter Jill Schneiter Gala Resort Fremont (920) 446-3222

Northeast Chapter Amy Shaffer Shaffer Supper Club Crivitz (715) 854-2184

Blackhawk Chapter Chico Pope Buckhorn Supper Club Milton (608) 868-2653

Northwoods Chapter Mike Pitzo (area representative) Polecat & Lace Minocqua (715) 356-3335

Door-Kewaunee Chapter Doris Thorn (area representative) Roadhouse of Downtown Carlsville Sturgeon Bay (920) 743-4966

St. Croix Chapter Sheena Peterson (area representative) Valley House Hudson (715) 549-6255

Eastern Shore Chapter Susan Patterson Al & Al’s Stein Haus Sheboygan (920) 452-5530

South Central Chapter Todd Baker Eagle Inn of Sauk Prairie Prairie du Sac (608) 643-4516

Green Bay Chapter Pat Beimborn Los Banditos East Green Bay (920) 432-6460

Southeast Chapter Dick Rudin (area representative) House of Gerhard Kenosha (262) 694-5212

La Crosse Chapter Gary Rudy Rudy’s Drive In La Crosse (608) 782-2200 Lake-To-Lake Chapter Joan Cunningham Schreiner's Restaurant Fond du Lac (920) 922-0590 Madison Chapter John Kavanaugh (Interim President) Esquire Club Madison (608) 249-0193 Milwaukee Chapter Chris Wiken The Packing House Milwaukee (414) 483-5054

Restaurateur • First Quarter 14

Vacationland Chapter Timothy Tyler Nick’s Family Restaurant Spooner (715) 635-3129 West Wisconsin Chapter Dennis Heyde Fanny Hill Eau Claire (715) 726-9094 Wisconsin River Valley Chapter Roy Heilmeier 2510 Restaurant Wausau (715) 845-2510

Wisconsin isn’t just where we’re from,

proudly raised in pubs, around campfires

it’s who we are. And for five

and in backyards all across this great

generations our beers have been

First Quarter 14 • Wisconsin

state and we couldn’t be more proud.

Ultimate FACE-TO-FACE Event March 10-12, 2014

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Fresh ideas 1000’s of products Celebrity guests Valuable business training Latest consumer trends Culinary demos Live workshops New media And more - it’s everything foodservice Come see what’s new for your business.

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Wisconsin

Restaurateur • First Quarter 14

EXPO SCHEDULE: Highlights Monday, March 10 10:00 11:00 11:30 11:30 11:45 1:00 1:30 1:30 2:00 2:30 3:00 4:30 5:00 5:00

Keynote Address by Cat Cora EXHIBIT HALL OPENS Wine, Beer and Liquor Buying Trends of Today’s Consumers Cupcake Sampling begins in Pastry Studio Keys to Successful Construction Projects Health Care and the Affordable Care Act Gale Gand Demo in Culinary Theater Gluten-Free and Allergy Free: Ingredients to Plate Chat Room Kringle Tasting begins in Pastry Studio 2014 Consumer Culinary Trends College Culinary Arts Competition Awards (events start at 9:00 am) EXHIBIT HALL CLOSES Happy Hour at the Hyatt Regency

March 10-12, 2014 Wisconsin Center Milwaukee, Wisconsin

Tuesday, March 11 10:00 10:00 10:00 10:30 11:30 12:00 12:45 1:00 2:00 2:30 2:30 3:15 4:00 4:00 5:00 6:00

EXHIBIT HALL OPENS Fact vs. Fiction: The Real Scoop on Gluten Health Care Reform: What’s Next Hands-on Workshop: Tortes Chat-Style Discussion with Keynote Sandy D’Amato and Kyle Cherek Owning and Operating a Retail Bakery Social Media 101 for Restaurants State, Regional and National Menu Trends Hands-on Workshop: Gel Molds Restaurant Makeovers: Kitchens, Bathrooms and Outdoor Dining Social Media Spotlight: Google Plus Social Media Spotlight: Twitter Social Media Spotlight: Facebook ProStart® Invitational Awards (events start at 9:00 am) EXHIBIT HALL CLOSES Elegant Awards Dinner at Potawatomi Bingo Casino

Get more details and register at:

www.everythingfoodservice.org Just $30 when you register by March 6 WRA Members receive FOUR FREE advance registrations! Members and non-members are encouraged to attend. Sorry, children under 16 may not attend.

Wednesday, March 12 10:00 10:00 10:30 11:30 11:30 12:30 3:00

EXHIBIT HALL OPENS 2014 Trends in Foodservice Hands-on Workshop: Push-up Pops Building Confidence and Loyalty with Gluten-Free Guests If Everyone Can be a Customer, Then Everyone is in Sales Hands-on Workshop: Doughnuts EXHIBIT HALL CLOSES

All Day Events

Charitable Auction – Booth 214 Design Gallery Foodservice Exhibits – 1000’s of Products Gluten-Free Resource Center Pastry Studio Displays and Competitions Something Special from Wisconsin Tabletop Design Competition The Bar – Cocktail Education Financial Statements: Tips from a CPA Wisconsin Cheese and Dairy WRA Connections – Booth F 526 irst Quarter 14 • Wisconsin

Restaurateur

Info to Go Q u e s t i o n s a n d A n s w e r s A b o u t R e s t a u r a n t B u s i n e s s f r o m t h e W R A H o t l i n e Te a m C a l l 8 0 0 . 5 8 9 . 3 2 1 1 • Vi s i t w w w. w i r e s t a u r a n t . o r g

by K ate R eiser

A customer complained to me about another customer breastfeeding her baby in a nearby booth. I didn’t know how to handle it. Do you have any advice?

WRA has heard from the Breastfeeding Coalition of South Central Wisconsin (bcscw.org) that they periodically get complaints about a woman breastfeeding her baby in a restaurant who is told to move or cover up. The problem is often, but not always, based on a complaint from another customer. The Wisconsin Right to Breastfeed Act was signed into law by Governor Jim Doyle on March 10, 2010. The wording of the law is: “253.16 Right to breastfeed. A mother may breastfeed her child in any public or private location where the mother and child are otherwise authorized to be. In such a location, no person may prohibit a mother from breastfeeding her child, direct a mother to move to another location to breastfeed her child, direct a mother to cover her child or breast while breastfeeding, or otherwise restrict a mother from breastfeeding. A person who interferes with that right is subject to a forfeiture not to exceed $200 under the general penalty provision under current law.” Servers may not always know how to respond if an issue arises. All a server or manager needs to tell the complainant is that the state of Wisconsin protects a baby’s right to breastfeed. They can offer to move the complainant to a different table if he/she is uncomfortable. The server/manager may not suggest to the woman that she move, add further covering or artificially feed instead. Their role is to protect the woman and baby’s civil rights by offering guidance and information to the complainant. In a situation where the woman herself approaches a server/manager and asks where she can breastfeed her child privately, they can offer her any space but a bathroom, if available. It is important to make it clear that she is welcome to breastfeed her child wherever she wishes.

Q: A:

I heard something about a new OSHA requirement. What do I need to know?

WRA learned in November that the Occupational Safety and Health Administration (OSHA) revised Hazard Communication Standards (HCS) pertaining to properly labeling hazardous chemicals. There are

Wisconsin

training requirements for employers and the first deadline for training was December 1, 2013. Essentially, the goal is to give employees worldwide a better understanding of the hazards associated with chemicals in the workplace through the use of more consistent definitions and standard pictograms. All employers using hazardous chemicals in the workplace must comply with the changes made to the Safety Data Sheets (SDSs—formerly known as Material Safety Data Sheets) and should be aware of OSHA’s training expectations and strategies for meeting the Hazard Communication Standards. For more information on the new rule, OSHA has put together a fact sheet outlining the changes and additions which is available at www.osha.gov/dsg/hazcom/. To assist in employee training, OSHA has another Fact Sheet available on their website that is dedicated to training requirements. OSHA also created “Quick Cards” on the following topics (in both English and Spanish) that you can post in the workplace and/or distribute to employees: Labels, Pictograms and Safety Data Sheets. If you missed the December 1st deadline, WRA recommends quickly scheduling a staff meeting and distributing copies of the “Quick Cards.”

The parent of one of my teenage employees wanted to pick up her daughter’s paycheck. Is that legal?

The parent is the guardian of a minor and has control over the check (unless the teen is an emancipated minor) and can therefore pick up their child’s paycheck.

Restaurateur • First Quarter 14

Info to Go

We sometimes get calls from customers booking a party at our restaurant who want to bring in their own food. I’m sort of on the fence about this. Is there a law that prohibits this?

There are some things you need to think about before you create a policy on this. I guess the first question that comes to me is a financial one. If you are in the business of selling food, why do you want to allow customers to bring in their own food to your restaurant? If a component of your business is to host private parties and you’re at least getting money for a room charge, then OK, but you should think about it from a business standpoint. If you had a hair salon you probably wouldn’t let people come in with their own shampoo, scissors, nail polish, etc. and then use your sinks, chairs, mirrors and equipment to give each other haircuts and manicures without paying for any of your services. Another factor is potentially bad PR or media attention. If anyone gets sick

from food served in your business, it will be a negative for you. It doesn’t matter if the food was prepared by you or by the party hosts in their homes, your business name will be associated with the illness. If people read about a Norovirus outbreak involving your restaurant, the damage may already be done in terms of your reputation. They may just read the headline and not the last paragraph that reveals that the health department traced it back to the frosting that Aunt Rhoda made. Now for the Wisconsin Food Code rules... food served in your restaurant must come from a source that complies

First Quarter 14 • Wisconsin

with the Food Code. (No food prepared from home.) Therefore if someone is going to have an event at your restaurant, the food must come from a licensed facility. If food is going to be served to the public (or general people entering your dining room) you must have a receipt showing that the food came from a licensed facility. The only exception to that is if it is truly a private function. For example, a birthday party where only invited guests are allowed to participate in the event – then it could be a potluck with attendees bringing in the food. While the Food Code says food prepared in a private home cannot be served, this does not apply to truly private functions. That means those guests are pre-invited, and it’s not a situation where everyone who enters the dining room that day is invited and can accept or decline. If it is a birthday party where there is a sign posted in the entrance of the restaurant saying, “Join us for Joe’s birthday.” That is not a private event, continued on page 14

Restaurateur

Info to Go

continued from page 13 so any food served would need to be made in your facility or purchased from a licensed facility. In addition to the event being private, there cannot be a charge for the event. Remember, you can have your own broad policy that stipulates that any outside food must come from a licensed facility if you are more comfortable with that. You may also want to check with your insurance company to find out if they have any restrictions since they might be concerned about potential liability. Then we’re sort of back to the beginning with my question about whether it makes good business sense to have customers bringing in food from other sources to a place that makes and sells food.

We are considering raising our menu prices and are anticipating some negative feedback from customers. To cushion the blow of price hikes, we’d like to offer customers a cash discount. Is that prohibited?

Wisconsin

You can offer discounts to customers paying with cash, checks or debit cards. It’s OK to offer a discount for cash, but not ok to charge an extra fee if a customer pays with a credit card. If that just confused the issue for you, you can think of it this way…you can’t list an item on your menu for $15 and then charge a customer $17 if they pay with a credit card. However, you can have a policy explaining that customers

paying cash will receive a 10 percent discount (or however you want to work it). This policy should be conveyed to customers prior to their transaction. Speaking of credit card transactions, this seems like a good time to discuss minimum purchase amounts… Keep in mind that merchants may now set a minimum transaction amount up to $10 for a credit card transaction— but not more than $10! Transaction minimums are not permitted on debit cards (or SNAP and other government benefit cards). If you post signs in your business about this minimum transaction amount, you should indicate that the minimum purchase amount is only on credit card purchases and does NOT include debit card purchases. The minimum purchase amount must be the same for all credit cards. You absolutely cannot set a minimum purchase of five dollars for a Capitol One Visa credit card and then set a minimum purchase amount of ten dollars for a Chase Visa credit card. WR

Restaurateur • First Quarter 14

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The

Financial Statements Tips from a CPA

Five Critical Accounting Mistakes Small Business Owners Make When it comes to managing a business, your accounting is critical. Most mistakes that are made when it comes to the accounting aspect of any business are the fundamentals. Businesses fail, lose money, or struggle not because of the big stuff, but because of the fundamental skills it takes to run the business—or the fundamental systems the business needs to support itself are not there. Avoiding these mistakes is easy as long as you take the necessary steps and have the right guidance to make sure you have the basics covered. We’ve listed five basic accounting mistakes that you can learn from: Mistake #1: Mismanaging the company checkbook Many small business owners manage their company’s finances by looking at their checkbook. Though your checkbook might tell you where your cash is, it will not tell you how profitable you are. The fact of the matter is that no company can have long-term success and growth by managing their finances through the checkbook. It’s like asking a doctor how you’re doing without first running tests or checking your vital signs. Instead, you should be receiving a financial statement every month to analyze the performance of your business. Mistake #2: Not having an accounting system in place A checklist should be created to gather all materials that are needed to produce your financial statement at the end of the month. Whether your statement is produced in-house or outsourced to an accountant, these are a few steps that need to be followed: • Money coming in – properly recording and tracking all cash receipts • Money going out – paying the bills consistently and on time • Tracking and paying your accounts payable and collecting your accounts receivables • Keeping track of receipts – making sure you have an audit trail in place • Make sure your sales and payroll tax deposits are timely and correct Mistake #3: Not understanding your profit position and cash position This is probably one of the most misunderstood concepts among business owners. Your profit position is simply your sales minus your expenses, which is shown on your income statement. Your cash position takes into consideration not just your expenses but also things like loan payments. While an income statement will show your profit, your cash flow statement will show you how you got to your current cash position. These financial statements are like the scorecards for your business, allowing you to understand why your profit position and cash position are two different things.

Mistake #4: Unintentional credit card usage—Mixing business purchases with personal purchases The IRS does not like the mixing of business and personal expenses. If personal expenses are made using the company card, the individual must pay the company with a personal check. Ideally having two separate accounts makes it easier to prove your purchases and have an audit trail in place. Mistake #5: Lack of an audit trail for receipts and invoices All purchases in a business must correspond with a receipt, either paper or electronic. Just because your credit card statement says you spent $500 at ABC store doesn’t mean that it was a business expense. The receipt should break down the purchase and provide an audit trail of what happened. Write on each receipt what the expense was used for. Make sure you have a system in place to cover all your bases ensuring that if you’ve made any of these mistakes you’re able to turn them into successes. At this year’s Midwest Foodservice Expo, EWH is sponsoring the “Financial Statements: Tips from a CPA” business and accounting resource center for commonly asked financial questions. Be sure to visit us there, and in booth 527 to learn more. Clarification from Fourth Quarter Issue The Financial Statements column in the previous issue of Wisconsin Restaurateur implied that the 39.6% tax rates on Ordinary Income and 20% tax rates on Long-Term Capital Gains and Qualified Dividends started at $250,000 for MFJ and $200,000 for Single. To clarify this statement, the rate of 39.6% does NOT apply until taxable income is $400,000 for single and $450,000 for MFJ. The new Medicare tax of .9% and the 3.8% new Net Investment Income Tax kick in at $200,000 for single and $250,000 for MFJ of adjusted gross income. WR

Statements or expressions of opinion here are those of the authors and not necessarily those of Wisconsin Restaurateur or the Wisconsin Restaurant Association. In no event are the editors and publisher liable for any damages resulting from use of this material.

First Quarter 14 • Wisconsin

Restaurateur

Finding Good Fortune in 2014

Wisconsin

Restaurateur â&#x20AC;˘ First Quarter 14

by M ary Be rg in

here is no lack of predictions when a new year begins, and one thing is for sure: The passage of time separates true visionaries from impulsive guessers. Look at the range of observations: Cauliflower will replace kale as the trendiest vegetable. Food trucks will head to the suburbs. Chicken will be priced like steak, thanks to elaborate infusions, marinades and sauces. New competition will come from unlikely places as businesses from boutiques to bicycle shops add abbreviated—but quality— food or beverage service to lure customers or encourage them to stay longer. Consider it a resurrection of department store dining, popular decades ago. It’s veggies for dessert (maybe chocolate with eggplant?) and breakfast for dinner (as restless diners aim to break tradition). More bridal couples will exchange vows in the morning, then save money by treating guests to a brunch of mini gourmet doughnuts, Bloody Mary and mimosa bars, omelet and pancake stations with a flashy array of fillings and toppings. Which fads will have staying power? Your gut instinct will decide whether these and other forecasts are clear or hazy. The National Restaurant Association expects a fifth consecutive year of sales growth for America’s nearly 1 million restaurants, but not quite enough of a boost to return to prerecession levels. “Quickservice sales will again outpace table service, although both segments will experience positive growth in the year ahead,” says Hudson Riehle, NRA’s senior vice president of research.

Digital time savers

Jonathan Marek of Applied Predictive Technologies is among those who say more sales at quickservice restaurants will come from digital meal orders. That’s especially true for pizza. Mobile technology—smartphones and digital tablets—are attractive because of their potential to cut the time a customer waits to order, eat and pay the tab. The devices also make it easy to report on any meal experience, via social media, and restaurateurs will want to stay on top of this. Expect these interactions to grow as more people gain access to digital technology and incorporate it into everyday life, says the NPD Group, a global market research company. “Consumers’ interest in these options is stronger than ever,” agrees Riehle, who says 63 percent of Americans have recently used digital technology to order takeout or delivery of food.

Specialty menus

The growing popularity of tasting-only menus, says consulting firm Baum + Whiteman of New York, means restaurant operators can better predict staffing needs and set accurate food budgets. What began as pricey dining at an elite level is expanding to fine

dining that is accessible to average consumers. The seasonal Wild Rice Restaurant, Bayfield, occasionally offers only a prix fixe menu. Although closed from October to May, the restaurant reopens for such dining on New Year’s Eve and a “Tired of Turkey” prime rib dinner on the Saturday after Thanksgiving. These fixed-price meals are practical because “we don’t have much in the pantry” outside of what chefs plan for the special menus, notes Randy Anderson, dining room manager. A “no substitutions” menu notation cuts the expectation that dietary restrictions will be accommodated with no notice. Joe Muench of Maxie’s Southern Comfort and Blue’s Egg, both in Milwaukee, thinks latenight dining is slowly making a comeback. “I see more and more chefs creating late-night happy hour or snack menus, as well as serving limited special menus that may be completely different from their core foods.” His example: late-night noodle bars, offered one or two nights a week.

The personal touch

“Elevated service is coming back,” Muench suggests. “Waitstaff will be finishing foods tableside, like fine dining restaurants did years ago. It will be more common to see a server interacting with foods, to finish one or two flavor components on a dish.” This will go beyond grating cheese or grinding pepper on a salad because “more unique ingredients like flavored salts, reductions or dehydrated foods will be grated or poured on dishes at the table.” Tableside service already can involve any course: Caesar salad, Asian stir fry, dessert flambés. At Pedro’s Mexican Restaurante, Madison, appetizers include customized guacamole, made tableside. Justin Carlisle, who opened Milwaukee’s Ardent in November of 2013, believes “simplifying is going to be big.” That means “more minimalistic dining—not so much high-end china or linens” to go with fine dining menus. In Eau Claire, Joanne Palzkill operates Draganetti’s, a dinneronly Italian restaurant, and the more casual Taverna Grill. “I see a crossover of customers between the two,” she notes. “More people seem to like having a nice meal in a more casual setting. They order smaller plates, maybe to share, and end up with a nice dinner at a lower cost.”

From trend to cultural shift

Dietary restrictions and concerns, such as gluten, will continue to drive menu content. The NRA predicts more pasta will become gluten-free as wheat is replaced with rice, buckwheat and quinoa flours. Palzkill believes interest in gluten-free options is here to stay because “people are more aware of how food affects their bodies. When it comes to allergies and intolerances, it seems like gluten continued on page 18

First Quarter 14 • Wisconsin

Restaurateur

continued from page 17 is the number one concern, but now a portion of diners who don’t have a problem also choose to go gluten-free.” About 80 percent of the pastas served at Draganetti’s are made in-house. Gluten-free spaghetti and penne pastas, made with rice flour, were added to the menu five years ago. Palzkill says more customers “know what they want and aren’t afraid to ask for it” if it’s not on the menu. Wild Rice’s Anderson agrees: More customers “want to redesign the menu to their particular wants and needs. You wouldn’t have seen that ten years ago.”

Lose the “local” angle?

Positioning a restaurant as the champion of locally grown ingredients might be passé. “That’s like saying you use salt

and pepper in the kitchen; it should be a given,” four-star Chicago chef Graham Elliot told Forbes magazine. Anderson says the word “local” has become a cliché: “We’ll continue making it a priority without putting it on a billboard.” “Local is not ‘king’ as much as regional,” contends Muench. “Because farmers are figuring out better distribution methods, chefs will source more regional foods from farms and producers rather than running down to their local farmers’ market.” Although an interest in hyper-local ingredients will still exist, Muench says most farmers won’t be able to keep up with product demands. “So regional foods—such as cherries from Michigan—will supplement the ones we

Top 10 Trends

The National Restaurant Association’s 2014 Culinary Forecast identifies these top trends:

1. Locally sourced meats and seafood 2. Locally grown produce 3. Environmental sustainability 4. Healthful kids’ meals 5. Gluten-free cuisine 6. Hyper-local sourcing (such as restaurant gardens) 7. Children’s nutrition 8. Non-wheat noodles/pasta (such as quinoa, rice, buckwheat)

To gain applause instead of yawns from foodies, some restaurants will find novel ways to go hyper-local. Among the newer Wisconsin players: earthy Hōm Wood Fired Grill, Brookfield, which in late 2013 replaced 8-Twelve in the SURG Restaurant Group. Hōm lists artisan brewers, cheesemakers and farmers among its partners. Meats and veggies from Hidden Creek Farm, New London, get special billing because owner Mike Polaski also is CEO of SURG. Ardent’s Carlisle is the son of a Sparta beef farmer who wants “farmto-table” labels pushed aside because “we should just do what’s right and support our area or region.” For him, one example is picking up five gallons of milk and cream every Monday from a local farmer. “We’re going back to the basics, back to our roots through this milk,” Carlisle says. He delivers part of it to a cheesemaker, who makes the restaurant’s butter. Another part goes to a baker, who makes milk bread similar to what Carlisle grew up on. There’s value, literally, in letting customers know precise details like this, says Justin Massa, Founder/CEO of Food Genius, a research company that compiles data from analyzing thousands of restaurant menus. “Well-described menu items continue to command higher prices than their less welldescribed counterparts at independent restaurants,” he says. “Nationally, menu items described as ‘artisan’ are 43 percent more expensive than their non-local counterparts at independent restaurants.” Farm-to-table marketing is growing to include farm-to-shaker cocktails that incorporate local products and ingredients in myriad ways. The craft cocktail movement dusts off classic recipes—Sidecars, Cosmopolitans—and adds contemporary twists. Entrepreneur magazine notes the number of craft distillers was less than

10. Farm/estate branded items

Wisconsin

Going hyper-local

Behind the bar

9. Sustainable seafood

would be getting from Door County,” he rationalizes.

Restaurateur • First Quarter 14

Anderson says the word "local" has become a cliché 100 in 2003. Around 750 are expected by the end of 2014. Oak casks have long added value to wines. Now the Food Network says barrel-aged cocktails will add depth of flavor to the Manhattan, Old Fashioned and other mixed drinks—while saving bartenders preparation time. Note: Wisconsin law prohibits operators from barrel-aging alcohol. This practice is considered “rectifying” and would require a rectifier permit. Retailers (like restaurants and bars) may not obtain this permit.

Add the already-easy global access to wines and rapidly expanding choices of craft beer. Jobs of bartending and serving libations quickly become complicated. “Our customers have gotten a whole lot more sophisticated,” Anderson says, and that heightens their expectations about drink choices to presentation. “If a server makes a wine recommendation, the customer may well use an iPad or iPhone under the tabletop, to see if critics consider it a good value.” Single-cask bourbons, exotic rums and other small-batch spirits will continue to gain customer interest, he says, “and people are willing to pay” for what they deem special. Joe Schneider, banquet chef at Badger Bowl, Madison, considers his work with craft breweries a good investment. “Value doesn’t mean cheap,” he says. “People view good deals in local, quality ingredients.” Little things count, too. That includes experimenting with ordinary ice cubes. The Huffington Post predicts a greater

Want More Info on the Future of Foodservice?

The National Restaurant Association released its annual Restaurant Industry Forecast in January. The Forecast includes economic, workforce, consumer and menu trends as well as information for operators to position themselves for future growth. Want to get a copy? WRA members can access a PDF of the Forecast free of charge or order a printed copy for a discounted rate of $75. Non-members may purchase a copy for $250. Visit the NRA website at restaurant.org

continued on page 20

First Quarter 14 • Wisconsin

Restaurateur

continued from page 19 infusion of flavors, juices and herbs in cocktail ice during 2014.

Massa predicts this will be a good year to spice up life with condiments.

All in good taste

Massa predicts this will be a good year to spice up life with condiments and notes that quickservice chains are already kicking up the heat. Examples include the addition of a sriracha mayo on the Subway menu and spicy buffalo sauce at McDonald’s. Premium breads also freshen menus. “Wendy’s did an amazing job with a limited-time burger served on a pretzel bun, then replaced it with a brioche bun,” Massa notes. Others say unusual bread spreads will accompany bread baskets and merit an upcharge. Think bold: lardo (cured pork backfat), jalapeno-spiked olive oil, herbenhanced hummus, whipped butter-paté. Salts will gain unpredictable

flavor because of infusions of citrus or espresso, hot peppers or maple syrup. Turmeric, a key ingredient in curry sauces, also gains acclaim because of purported health benefits; before 2013

Kitchen Predictions

From the Food Network Kitchen News blog at foodnetwork.com come these projections. 1. The mashup is the new melting pot. Translation: We’ll blur cuisines and flavors by blending the unexpected. Examples: black pepper chocolates, Indian-Mexican food. 2. Real food is the new fast food. Translation: Fast food will gain more variety and more healthful ingredients. 3. Vegetables are the new meat. Translation: That means more creative veggie entrees, plus veggies in cocktails to desserts. 4. Midwestern is the New Southern. Translation: Midwestern cuisine—especially classic comfort foods and regional products—will gain wide respect, exposure. 5. Bitter is the new sour. Translation: Thanks to the bitterness and popularity of kale, more palates will seek and enjoy dandelion greens to bitter chocolate. 6. Bar snacks are the new food trucks. Translation: Expect an introduction of pub grub that is typical in other countries but exotic here. Example: dried squid. 7. Eclairs are the new macaroons. Translation: Pastry chefs will play with colors and fillings, sweet and savory. 8. Dim sum is the new tapas. Translation: Small-plate eating takes on an Asian flair, but beyond the traditional dumplings. 9. Barrel-aged cocktails are the new punch. Translation: Mixologists will age old fashioneds, Manhattans and more in oak, wood-smoked casks. Note: Wisconsin law prohibits operators from barrel-aging alcohol themselves. 10. The whole fish is the new whole hog. Translation: “Seacuterie” means eating everything under the fin and skin. Octopus headcheese, anyone?

Wisconsin

ended, it was heralded by CNN as the “Queen of Spices.”

That’s a wrap

Research at Food Genius shows that sandwich wraps are appearing on more menus nationally and in Wisconsin. “There are two common themes,” Massa says. “Roughly one-third of wraps are some kind of a salad—with Caesar wraps being the clear winner—and nearly all wraps have some kind of a protein.” He calls chicken “the clear winner” as a protein source, appearing in 94 percent of sandwich wraps on Wisconsin menus. Reedsburg native Brian Bartels, now a managing partner of Manhattan, New York’s Little Wisco restaurant group, would like to see “heightened attention to vegetable use. I feel we are on the cusp of expanding this territory” because more restaurants are presenting meatless menus and new ways to use familiar ingredients. Other forecasters say cauliflower will be the new star, substituted for mashed potatoes, ground as a crust for pizza and billed as barbecue when thrown on the grill by a slab—the vegetarian’s new steak cut.

New, but not to you

Last, there is an annoying tendency for coastal cooks to describe the Midwest as a flyover zone, then introduce heartland habits as their own discoveries. Get this: – Jell-O shots are trendy additions to urban cocktail hours from Manhattan to Portland, reports CNN through its Eatocracy blog. Mixologists add a brandy-soaked cherry to the bottom, or mix juices with liquor. Some pour the gelatin mix into fancy little molds instead of paper condiment cups. – A wood-fired grill draws raves at the new TBD restaurant in San Francisco, which makes edgy Thrillist.com’s short list of best new restaurants. Diners jockey for toasty counter seats that face the grill, where sweating cooks use open fire and hot bricks to sear meats, roast bananas and bake Dutch oven cakes.

Restaurateur • First Quarter 14

– The Food Channel predicts a Midwestern food movement that will recognize our simple and hearty cooking as a legitimate regional cuisine. It’s one part pie, stew, casserole and restaurant pantries/ freezers stocked with chef-preserved chutneys, pickles and local harvests. Then add ethnic flavors to classic fare, like cabbage rolls stuffed with chorizo instead of hamburger. Bartels, the Reedsburg transplant, proudly notes that his hometown started an annual Fermentation Festival three years ago. He says Wisconsin restaurants deserve the national attention—“I feel they’ve brought heightened awareness of the heritage movement”—and likes the notion of a recognized Midwest cuisine. “We’re a very young country and finally seem to be developing our own regional cuisines,” Bartels says. “The Midwest cuisine has a depth that a lot of people hadn’t noticed before now— it’s the last frontier for establishing a cuisine in the U.S.” WR

Trends at the 2014 Midwest Foodservice Expo

Your customers demand innovation. Find your inspiration here. Trends education sponsored by

Trends Education Series

Take advantage of a series of education sessions covering food and beverage consumer trends topics. You’ll learn how to adopt the latest trends to satisfy consumer demands. 2014 Consumer Culinary Trends for Midwest Operators Monday, March 10 – 3:00-4:15 pm

Trends Area

Now that the 2014 trends predictions have been made, you can see them firsthand in the exhibit hall at the Midwest Foodservice Expo. Discover what menu changes you should make to meet consumer demands this year.

State, Regional and National Menu Trends and Opportunities Tuesday, March 11 – 1:00-2:15 pm Craft Beer Trends for Menus Wednesday, March 12 – 10:00-11:15 am Also check out the Gluten-Free Resource Center at the Midwest Foodservice Expo

First Quarter 14 • Wisconsin

Source. Learn. Network.

March 10–12 Wisconsin Center, Milwaukee, WI Everythingfoodservice.org

Restaurateur

Res ta

ces our

perational R nt O a es r u

The Right

Ingredients

MOST COMMON

HR MISTAKES O

ne of WRA’s missions is to help restaurant operators across the state stay out of hot water. Wisconsin Restaurateur magazine, WRA News, email alerts and access to the WRA Hotline Team are ways that we get the right information into the hands of members. Below you’ll find a collection of some of the most common HR mistakes that operators are currently making.

Withholding a final paycheck You don’t need to immediately pay an employee who has left your workforce (either by their choice, or yours) or jump through hoops by cutting a special payroll check, but you do need to make sure that this employee receives his last paycheck no later than the next regularly scheduled payday. Employers often run into trouble when they withhold a final paycheck or make illegal deductions from it.

Thinking that a probationary period will mean that employees are ineligible for unemployment insurance There is a misconception that employees fired during a probationary or orientation period can’t collect unemployment compensation. This is not true. It’s possible that an employee

Wisconsin

who works only one day at your restaurant could collect benefits if he meets the other eligibility criteria. However, the benefits that your employee collects would probably not come out of your unemployment compensation account. Because of the way the state figures and charges benefits, an employer who just fired a worker after a brief period of employment will not be charged if the worker immediately files UI benefits. Instead, those benefits will come from the accounts of other previously covered employers or will be paid out of the balancing fund of the Unemployment Reserve Fund. This doesn’t mean that you will never be charged for this employee's UI benefits. Your ex-employee could find a new job, be terminated again, and re-apply for benefits at a later date. At that point, his period of employment with you would probably fall into his “base period” and a portion of his UI benefits would come from your account.

a complaint with the Department of Labor or Department of Workforce Development? That could trigger a wage and hour audit. If you are found to owe unpaid overtime, you will have to pay back wages for every non-exempt employee who worked more than 40 hours in a week during the last two years. Employees cannot waive their rights to overtime! Any agreement to waive overtime is not legally valid.

Believing that an employee is exempt from overtime just because you classified that employee as salaried Salaried employees who work more than 40 hours a week would still be owed overtime unless “exempt” as an executive, administrative or professional worker as defined by law. For more clarification on this topic visit www.dol.gov or read WRA’s Model Employee Handbook in the Members Only section of www.wirestaurant.org

Allowing employees to waive overtime

Not having a work permit on file for your teen employees

Your employee might be content to work without overtime now, but what happens in the future when he gets irritated, perhaps about an unrelated matter and decides to file

One of the most serious blunders an employer can make is not having a work permit on file for employees under the age of 18. It’s probably best to just have a rule that teens can’t work for even

Restaurateur • First Quarter 14

an hour if you don’t have a work permit for them. Employers face steep fines if a minor is injured on the job performing allowable (non-hazardous) work activities, and even steeper fines if a minor is injured on the job performing prohibited work. • A work permit is required before anyone under the age of 18 is allowed to work in any job (with the exception of agriculture or domestic service work). • Employers must have a work permit on file for the minor being employed before they allow the minor to begin work. • Work permits are issued at various locations throughout the state. In many communities, work permits may be obtained at the local high school. Call DWD at 608-266-6860

to learn where in your area minors may apply for a work permit. • The permit will not be issued if the work is prohibited by law. • To obtain a work permit, the minor must have: 1. A social security card 2. Proof of age – a birth certificate, baptismal record, driver’s license or state issued identification card

3. A letter from the employer stating the intent to employ the minor along with the job duties, hours of work and time of day the minor will be working 4. A letter from the minor’s parent, guardian or court-ordered foster parent while the minor is under their care and supervision, consenting to the employment. As an alternative, the parent, guardian or foster parent may countersign the employer’s letter 5. The statutory permit fee ($10) – The employer is required to pay the permit fee. If the minor advances the fee, the employer shall reimburse the minor not later than the minor’s first paycheck 6. The address of school that the minor attends or the name of the school district continued on page 24

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Restaurateur

continued from page 23

Treating service charges the same as tips When an automatic gratuity is added to the bill (like 18% for a large party)—that is considered a service charge and service charges are deemed by the IRS and the federal Department of Labor (DOL) to be part of the restaurant's gross sales and are not considered a tip. From DOL – Service Charges: A compulsory charge for service, for example, 15 percent of the bill, is not a tip. Such charges are part of the employer's gross receipts. From IRS – The IRS Rev. Rul. gives the following examples to distinguish when a gratuity left by the customer will be considered a “tip” or “service charge”: Example 1: A restaurant’s menu specifies that an 18 percent gratuity will be added to all customer bills. A customer’s bill for food and beverages includes an amount on the “tip line” equal to 18 percent of the price for food and beverages and the total includes this amount. The restaurant distributes this amount to the servers and buspersons. Under these circumstances, the customer did not have the unrestricted right to determine the amount of the payment because it was dictated by employer policy. The customer did not make the payment free from compulsion. The 18 percent gratuity is not a tip within the meaning of section 3121 of the federal tax code. The amount included on the tip line is a service charge dictated by the restaurant.

of 15 percent, 18 percent and 20 percent of the price of food and beverages. The customer inserts the amount calculated at 15 percent on the tip line and adds this amount to the price of food and beverages to compute the total. Under these circumstances, the customer was free to enter any amount on the tip line or leave it blank; thus, the customer entered the 15 percent amount free from compulsion. The customer and the restaurant did not negotiate the amount nor did the restaurant dictate the amount. The customer generally determined who would get the amount. The amount the customer entered on the tip line is a tip within the meaning of section 3121 of the federal tax code. If the gratuity is deemed to be a service charge rather than a tip, under federal law, service charges: • belong to the establishment • become a part of the establishment's gross receipts • must be considered as income to the employer, and • may be retained entirely by management or distributed to employees in any amount management chooses. Because a service charge technically belongs to the owners, they then have the discretion to distribute it as they see fit (divide it among staff, keep all of it or a portion of it).

Example 2: A restaurant includes sample calculations of tip amounts beneath the signature line on its charge receipts for food and beverages provided to customers. The actual tip line is left blank. A customer’s charge receipt shows sample tip calculations

Wisconsin

Including the wrong personnel in tip pools A tip pool can only include those employees who customarily and regularly receive tips. Employees who don’t typically receive tips like cooks and dishwashers (and other back-of-the-house staff) may not participate in the management-run tip pool.

Failing to notify employees that you are taking the tip credit The federal Fair Labor Standards Act (FLSA) allows an employer to pay a tipped employee an hourly wage less than the legal minimum wage under certain circumstances. Rules now require that employers notify their employees that the tip credit is being utilized. This can be done verbally, but WRA strongly recommends that employers provide written notice. This notice must include the following five points: • Amount of direct base/cash wage to be paid to the employee (in Wisconsin the minimum base/cash wage is $2.33 an hour) • Amount the employer claims as a tip credit (e.g. the difference between $2.33 and $7.25 an hour) • The tip credit can’t exceed actual tip earnings • Employers can’t claim the federal tip credit unless they inform employees of the federal law’s provisions on Note: WRA’s Handbook for Excellent Restaurant Operations (HERO) explains laws and regulations impacting restaurants in clear language and WRA’s online Model Employee Handbook provides operators with an easy-to-customize template that can help you stay on the right side of the law.

Restaurateur • First Quarter 14

the tip credit • The law requires that employees retain all their tip earnings, with the exception of contributions to valid tip pools

Failing to make up the difference if a tipped employee’s wages fall below minimum wage The Federal Department of Labor requires that employers electing to use the tip credit provision must be able to show that tipped employees receive at least the minimum wage when direct (or cash) wages and the tip credit amount are combined. If an employee's tips combined with the employer's direct (or cash) wages of at least $2.33 per hour do not equal the minimum hourly wage of $7.25 per hour, the employer must make up the difference. So, the employer must increase the base wages of the employee until the employee's reported tips and direct (or cash) wage together equal the required minimum wage for each work week (the payment can be made at the regular pay period). Failure to do so could

result in the employer being unable to use the tip credit.

Still scheduling your teen employees using the old guidelines Wisconsin’s laws regarding the scheduling of minors changed in 2011 to reflect federal laws. We often hear about employers who have not incorporated these changes into their operations. This could be a costly mistake. To review, there are now fewer restrictions for employers when it comes to scheduling 16- and 17-year-olds, and because of that, the return to school isn’t as significant when setting schedules as it had been in prior years. Now state AND federal laws do not limit the hours that minors 16 years of age or over may work per day or per week, so you no longer have to be concerned if it is a full or partial week of school when scheduling this age group. Keep in mind that they may not be employed or permitted to work during hours of

required school attendance. After Labor Day, shifts for 14- and 15-year-olds must end at 7:00 p.m. instead of 9:00 p.m. Wisconsin law now mirrors federal law for scheduling young teens (there are still differences in allowable job duties depending on whether the restaurant is subject to only Wisconsin law or to Wisconsin and federal law), all employers of 14- and 15-year-olds must follow the same rules, which means that 14- and 15-year-olds: • After Labor Day through May 31, they may not work before 7 a.m. or after 7 p.m. • Between June 1 and Labor Day, they may not work before 7 a.m. or after 9 p.m. • They may not work more than 6 days a week • They may work up to 3 hours on school days and 8 hours on non-school days • They may work up to 18 hours during school weeks and 40 hours during nonschool weeks (no more partial week allowance) • They must receive a 30-minute meal break if working more than 6 hours— break may be unpaid WR

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First Quarter 14 • Wisconsin

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Healthcare Compliance We help make it easier for you Healthcare Hub Get the latest info and resources on the Affordable Care Act and what it means for restaurant owners.

www.wirestaurant.org/healthcare

Healthcare Plans for Restaurants WRA and NRA have teamed up with UnitedHealthcare to provide our members, large and small, with costeffective and accessible wellness plans. Our restaurant healthcare program through UnitedHealthcare offers a wide variety of group plans with comprehensive medical, dental, vision and life insurance coverage, as well as essential healthcare tools. For more information, contact Clinton Wolf at (312) 348-7064 or clinton_v_wolf@uhg.com

Notification Tool Free to WRA Restaurant Members! Through NRA, WRA members have access to a useful online employee notification tool to help you comply with the exchange notification requirement.

www.restaurant.org/notify

Questions? Call WRA W i s c o nthe sin R e s t a uHotline r a t e u r â&#x20AC;˘ F i rTeam s t Q u a r t eat r 1 4800-589-3211

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Restaurateur

The Fight for the Restaurant Industry’s Reputation By Pete Hanson

ver the past few months, the restaurant industry has been a target for protests calling for an increase in the minimum wage, with most groups calling for a $15 an hour minimum wage. “We’re worth more” was chanted and displayed on signs at protests throughout the country held by groups like Fast Food Forward and Low Pay is Not OK nationally—and in Wisconsin, Raise Up Milwaukee and Wisconsin Jobs Now. The coordinated, nationwide campaign is funded and executed by Service Employees International Union (SEIU) and political activists. They orchestrated protests against the retail industry on Black Friday in November, followed by protests against the restaurant industry on December 5th. Restaurant industry protests to date have focused mainly on the largest quickservice chains like McDonalds, Taco Bell and Wendy’s. They have attempted to sway public opinion in their favor by comparing the salaries of corporate executives to what entry-level employees are being paid.

Wisconsin

The nationwide protests on December 5th were widely reported to number up to 100, although the vast majority of the protests consisted of only

a small handful of individuals, and very few actual restaurant employees. The campaign has gained media and policymakers’ attention and distorted issues of raising the minimum and tipped wages, as well as mandatory paid sick leave. The breadth of this campaign is vast and its factions well-organized— making this effort unlike any previous efforts to target the foodservice industry. The National Restaurant Association has been working in coordination with state restaurant associations to combat the skewed information provided by these groups and communicate to the general public and policy leaders our industry’s compelling counter-arguments to the union groups’ claims. The restaurant industry plays a crucial role in training America’s workforce and has a proud legacy. This is a critical time for us to tell our story and enlighten the media, policymakers and the public of the stabilizing force our industry provides to local and national economies, as well as the support we give to those individuals pursuing careers in our industry and others. Working together,

Restaurateur • First Quarter 14

The Restaurant Industry’s Side of the Story Background

• There is an opportunity for everyone in the foodservice industry, whatever their skill level or background, to take their first steps on the pathway to a successful career and a middle class income. How many other industries offer that opportunity to virtually anyone who is willing to work? • The restaurant industry pays a fair wage to employees based upon their experience and skill set. Restaurants train inexperienced workers—teaching them the skills they will need to succeed on any career path, whether in the foodservice industry, or elsewhere. In fact, one out three Americans got their first job in a restaurant. (Source: NRA survey)

Minimum Wage Facts

• A majority of minimum wage restaurant workers are just beginning their professional lives. Forty-seven percent of federal minimum wage restaurant workers are teenagers, while 71 percent are under the age of 25. (Source: BLS) • The vast majority of restaurant workers who earn the federal minimum wage work part-time and are not the heads of their household. The average household's income of restaurant workers who earn the federal minimum wage is $62,507. (Source: Census Bureau) • Many restaurant employees earn significantly more than minimum wage. Nationally, the median hourly earnings of waiters and waitresses range from $16 to $22 (cash wage + tips) depending on experience. Note: a tipped employee is guaranteed the minimum wage if they don’t earn enough tips during a pay-period to meet the minimum. (Source: NRA survey) • Careers are at the heart of the restaurant industry’s success. Nine out of 10 salaried employees started as hourly employees. (Source: NRA survey)

Effect of Increased Minimum Wage on Consumers and the Economy

• Restaurant businesses are an important part of the Wisconsin economy. The restaurant industry accounts for 1 out of every 10 jobs in Wisconsin. (Source: BLS) • Minimum wage increases negatively impact restaurant jobs and drive up consumer costs. When labor costs rise, employers in laborintensive industries such as ours are forced to raise prices or use technology such as “touch screens” to maintain profitability. Also, if the minimum is significantly raised, employers may hire less workers because they are able to employ older, more experienced workers. continued on page 30

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continued from page 29

we will reveal our opponentsâ&#x20AC;&#x2122; self-serving tactics and reaffirm our well-earned place as an industry of opportunity, workforce development and advancement. Our keys to success will be to clearly demonstrate that the industry pays a fair wage, provides opportunities for advancement and makes significant positive contributions to local economies; all backed up by real-life examples in the form of credible industry spokespeople who have grown within the industry (managers, cooks, small franchise owners, etc.) and case studies. It is also important to underscore that individual restaurant franchisees operate as community-driven, independent businesses. They are not run by high paid corporate execs but by hard working franchise owners who provide opportunity for anyone willing to put in hard work and dedication to their job. WRA and NRA have been proactive with these protests, getting the word out through the media regarding the restaurant industryâ&#x20AC;&#x2122;s point of view on minimum wage and shining a critical spotlight on the tactics of union groups. NRA has worked to provide research and statistics that refute the claims made by the organizers that are extreme exceptions rather than the norm. Moving forward and learning from these protests, NRA is gathering

Wisconsin

contextual data and anecdotal evidence to push back on the perception that these protests are widespread and worker-initiated when, in fact, they are orchestrated, centralized, unionfunded activities. A number of articles revealed the truth about these protests and linked the activity to unions, including articles in National Review; Daily Beast, Reason Magazine, and local Fox stations. The New York Times featured an article where experts expressed concern about the negative effects a $15 minimum wage might have on our economy. NRA is working to advance this messaging in the mainstream media and to redirect the conversation toward economic realities, realistic worker profiles and union motives. WRA is keeping members informed through email alerts. An email communication was sent to members prior to December 5th alerting them to possible minimum wage rallies in Wisconsin. Materials including how to deal with a protest at your restaurant, a WRA press release and minimum wage talking points were provided in the email. WRA will continue to alert members to important developments and provide resources as this issue unfolds. WR

Restaurant Lobby Day On February 4th, restaurant industry folks from around the state met with their state legislators as part of Restaurant Lobby Day. Our contingent of restaurant industry operators and suppliers helped set the record straight on the minimum wage debate and other important issues impacting the restaurant industry. To stay up to date on issues that affect the restaurant industry being debated at the state capitol, visit www.wratakeaction.org

Restaurateur â&#x20AC;˘ First Quarter 14

Wisconsin Minimum Wage Overview

With all the different minimum wage figures being bandied about, it’s a good time for a refresher on current minimum wage laws in Wisconsin. Non-tipped employees: General minimum wage $7.25/hour Opportunity minimum wage $5.90*/hour (14 – 19-year-olds during the first 90 calendar days on the job) * The federal opportunity wage rate is $4.25. Wisconsin’s opportunity wage rate of $5.90 is higher and therefore more favorable for the employee and is the rate that should be used. Since July, 2009 there is no longer a separate minor minimum wage. The opportunity wage of $5.90 for eligible employees remains in effect. After the opportunity wage period of 90 consecutive calendar days on the job, all employees regardless of age must be paid the full minimum wage of $7.25. An opportunity employee is an employee who is not yet 20 years old and who has been in employment status with a particular employer for 90 or fewer consecutive calendar days from the date of initial employment. Tipped Employees: Employees age 20 or older + $2.33/hour (base wages for general minimum wage) and employees age 14 – 19 $4.92/hour (tip credit) after 90 days of opportunity $7.25/hour wage has passed New hires under age 20 + $2.13/hour (base wages for opportunity wage) (14 – 19-year-olds during the $3.77/hour (tip credit) first 90 calendar days on the $5.90/hour job with opportunity wage) The federal cash wage for tipped employees is $2.13. Wisconsin’s rate of $2.33 is more favorable for the employee and is the rate that should be used. $2.13 is allowed for opportunity wage earners. Questions on the minimum wage or other laws and regs? Call the WRA Hotline at 800-589-3211 or email hotline@wirestaurant.org.

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Restaurateur

UNPARALLELED FOR FOOD PASSION by Mary Lou Santovec

chef’s chef. A restaurateur’s restaurateur. Those descriptors only begin to craft a portrait of Chef Sanford (Sandy) D’Amato, the creator of Milwaukee’s Sanford restaurant and Coquette Café. D’Amato, it can be argued, is an original. Nancy J. Stohs, food editor at the Milwaukee Journal Sentinel who edits D’Amato’s “Kitchen Technician” column for the paper’s Sunday edition, noted that D’Amato, “put Milwaukee on the fine dining map.” Many of the state’s restaurateurs agree with her. “I learned from guys like Sandy,” said Omar Shaikh, co-owner and president of Milwaukee’s SURG Restaurant Group. “He’s the one who sort of started the restaurant scene in Milwaukee. “Sandy was ahead of the curve here in Wisconsin,” Shaikh continued. “He’s extremely knowledgeable and his passion is unparalleled. His attention to detail is second to none.” Steve Davis, the owner of Ardy & Ed’s Drive-In in Oshkosh, relayed the story of a well-traveled friend who told him that what D’Amato was doing at Sanford “was the best or better than what they [other restaurateurs] were doing across the country.” “He [D’Amato] was the first person to bring cutting-edge things that were being done in Chicago and New York to Milwaukee,” said Davis, who, with his wife, have been regular customers of the fine dining restaurant since it opened in 1989.

Wisconsin

Restaurateur • First Qua rter 14

Chapter 1: The early years

To discover why D’Amato has earned such respect not only from Wisconsin restaurateurs but from people like the late, great Julia Child, you have to start at the beginning. The son of a Sicilian grocer, food was always a priority in the D’Amato household. He grew up on the lower East side of Milwaukee, one of two children of Sam and Kathleen D’Amato. His father, Sam, a machinist in Los Angeles, was called home to help his grandfather run the family grocery store. Mealtimes were often graced by assorted grandparents and relatives. Dishes were representative of the Sicilian homeland so D’Amato’s palate was refined early on. As a toddler, he ate pastina, star-shaped pieces of pasta covered with melted butter and grated Romano cheese—not what would pass for macaroni and cheese in most homes

makes the dish unique to the chef and memorable for the diner is something D’Amato called “taste memories.” “Recipes are soulless frames without something behind them,” he said. “They don’t come alive. Without the stories, there aren’t any recipes.”

Chapter 2: UWM and the CIA

D’Amato found his career path at 17 when he worked at Kalt’s, a German restaurant he affectionately called “Milwaukee’s version of Sardi’s.” After a stint at the University of Wisconsin-Milwaukee, he headed east to the Culinary Institute of America in 1970, which set the stage for the next chapter of his life. D’Amato was part of the initial class at CIA’s new Hyde Park, New York campus. He wrote that in addition to learning how to cook, the classes taught him that “achieving success by standing out from the crowd required me to be fairly aggressive.” But D’Amato would

then or now. In his book, Good Stock: Life on a Low Simmer (Agate Midway, 2013), a combination memoir and cookbook with some 80 recipes, D’Amato explained how those early dishes shaped his own philosophy of cooking. “Taste is so affected by memory,” he wrote, “and I never forget how important it is as a chef to make the people eating my food as happy as I am about making it.” Techniques can be learned. What

continued on page 34

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continued from page 33 put his own spin on the trait calling his style “humble aggressiveness,” which would define his leadership from then on.

Chapter 3: The Big Apple, French cooking and John Byron’s

Graduating from the CIA in 1974, D’Amato apprenticed to Dutch chef Peter Von Erp in the school’s signature Escoffier Room. Completing the fellowship, he moved to New York City and took his first job as a banquet cook at the Waldorf Astoria. He learned how to cook for crowds, but Von Erp’s influence had whetted D’Amato’s appetite for French cooking. At the time, all of the French restaurants in New York were staffed by French immigrants. They had no use for an American, even one of D’Amato’s training. Meanwhile, he met his first wife, Ellen, while cooking at Paxton’s Public House and the two relocated to Mexico City where he became chef at Delmonico’s. Returning to New York City, D’Amato finally got his foot in the French door when he was hired at Le Veau d’Or, where he became the first American cook in the kitchen. Several restaurant positions later, he and Ellen moved to Milwaukee where D’Amato served as head chef at the new John Byron’s Restaurant in the First Wisconsin Building.

Chapter 4: Sanford

It was Knut Apitz, chef-owner at Grenadiers, who showed D’Amato it was possible to open a fine dining restaurant in Milwaukee and have it succeed. D’Amato took note. After his first marriage to Ellen dissolved, D’Amato met Angie, a cocktail waitress at John Byron’s.

Wisconsin

Angie’s encouragement led D’Amato to open his first restaurant. “Sanford was my dream, not Angie’s,” he said. “But it was her execution. She took care of everything but the food and wine. “Without her, there would have been no restaurant.” Although the couple had worked together at John Byron’s for five years before opening Sanford, they were not fully prepared for what came next. “You can never get yourself ready to open your own place,” D’Amato admitted. They discovered that when you own the restaurant, you’re answering all the questions. “You’re the end game, the end person, the end of the line.” D’Amato did find a source of support as a member of the Wisconsin Restaurant Association. When asked what influence the WRA had on his work, he said, “It was like having a safety net, someone to go to when you had problems that you didn’t have the answers to.” For example, when questions arose about patrons carrying their own bottles of wine into restaurants, D’Amato turned to the association for clarification. “We had heard it wasn’t allowed,” he said. “We got information from the WRA that we could give to our customers.” Sanford was born out of a dream but also out of the desire for work/life balance. D’Amato could have had his own restaurant in Manhattan, but would

have had to share ownership. Seeing his first marriage end because of work demands, D’Amato wanted to control his destiny. So Sanford was closed on holidays and Sundays; the staff worked 40 hours, five days a week. “Service is what runs any great restaurant,” he said. “We wanted people to have a life outside the restaurant.” The D’Amatos hired people based on attitude and built a cohesive staff of more than 100, some of whom still work there today. “The team of people they put together was one of the keys of their success,” said Davis of Ardy and Ed’s. “It had a very family-type feeling.” Opening your own restaurant is risky. At the time, Sanford took that risk to a new level. “It was a huge risk,” said SURG’s Shaikh. “There weren’t many restaurants at the time charging the prices that Sanford did.” Location was also a concern. Sanford was not near the big hotels, but in a neighborhood that people had to intentionally seek out. Still, people flocked to the renovated grocery store. “Sandy didn’t just pull it off,” Shaikh pointed out, “He created something that’s still there.” Meanwhile, D’Amato was racking up a series of kudos. The restaurant earned a 29 rating in Zagat, (out of 30—with 26-30 described as “Extraordinary to Perfection”). When he was at John Byron’s, he made Food and Wine’s List of Hot New Chefs in 1985. In 1992, Julia Child selected D’Amato and 11 others to cook for her 80th birthday celebration. His choice was a grilled pear and Roquefort tart with caramelized onions and walnuts. Four years later, D’Amato was chosen as the first James Beard Award Winning Chef in Wisconsin.

Restaurateur • First Quarter 14

Chapter 5: State of the industry

D’Amato Appearing at the Midwest Foodservice Expo in March

Although some restaurant workplaces can be volatile and high-stress, you won’t find any of that in D’Amato’s kitchens. “He’s an overall good person,” said Shaikh. “That’s what makes him a leader.” “His demeanor in the kitchen is very calm,” said Justin Aprahamian, who purchased Sanford from the D’Amatos in 2012. “It’s a more positive environment and a good place to grow and learn.” D’Amato blamed some of the industry's bad behavior on those entering the profession for all the wrong reasons. “Everybody thinks cooking is about the next great thing,” he said, referencing the ubiquitous cooking shows. “Cooking is repetition, craft and working with your hands to master the craft.” Patience is a virtue that D’Amato also sees as lacking in some of today’s kitchens. “Everyone is in a hurry to get

Sanford D’Amato, a James Beard winning chef, former owner (for 23 years) of Sanford Restaurant in Milwaukee, cooking instructor and featured Sunday columnist for the Milwaukee Journal Sentinel (for 13 years) will be a special guest presenter at the 2014 Expo!

Live Discussion Tuesday, March 11 • 11:30 a.m. Sit in on a 60-minute chat-style session with Sandy and Kyle Cherek, of TV’s Wisconsin Foodie, as they discuss Sandy’s memoir Good Stock: Life on a Low Simmer. During this session you’ll hear an intimate account of the evolution of Sandy’s career. Book Signing Tuesday, March 11 • 12:30 p.m. D’Amato will also be onsite on Monday, March 10 and Wednesday, March 12 to sign copies of his book. In addition to these appearances, D’Amato will be addressing the ProStart® students. WRA_MidwestFoodsExpo_JBC_7.5x4.875_HR.pdf

1/15/14

3:48 PM

continued on page 36

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First Quarter 14 • Wisconsin

Restaurateur

continued from page 35 to where they think they should be,” he said. “I was never in a hurry throughout my whole career.”

Chapter 6: The present and future

After 22 years at the helm, D’Amato was looking for a new challenge when Chef Mario Batali who had been at Sanford for a dinner broached the subject of an exit strategy. D’Amato found the answer in his chef de cuisine, Justin Aprahamian. Aprahamian, who had started his career at Steven Wade’s Café when he was 18, had dreamed of working at Sanford and eventually owning a restaurant like it. D’Amato had seen something in the young chef. “Justin was always looking to do something better,” said D’Amato of his protégé’s work ethic. “He was a

voracious chronicler and note taker. He had a thirst, a quest for knowledge.” For D’Amato, moving on from Sanford was not a clearly defined process, said Aprahamian, but took place over a period of four years. As D’Amato began stepping back and focusing on other projects including his book, he pushed the young chef forward as the face of the business. “Sandy had a bigger picture view,” said Aprahamian. “His decision making is evident in where I am today.” The D’Amatos sold Sanford to Aprahamian and his fiancee Sarah Mudrock, who was also part of the Sanford “family.” (Nick Burki and Chris Hatleli purchased Coquette Café in 2010.) The D’Amatos recently purchased a 700-square-foot second home in Massachusetts and are constructing a 2,400-square-foot addition that will

become the Good Stock Cooking School (www.goodstockfarm.com). The school will focus on “backyard to table” cooking. No matter what great dishes he has created or tasted, D’Amato reverts back to the dishes from his childhood when asked about his food preferences. He waxes eloquently over his mother’s cinnamon ribs; his grandfather’s spedini is his favorite dish. We can be thankful that his taste memories were so influential. D’Amato will be part of the Wisconsin Restaurant Association’s annual Midwest Foodservice Expo in Milwaukee March 10–12. In addition to signing books, he’s looking forward to working with the ProStart® students. “Talking to students is really important,” he said. “Whatever knowledge you’ve acquired, it’s really important to pass it along.” WR

The key to this soup is to make sure that it is rich and satisfying, which is accomplished by the use of a double stock. A double stock is made when you start with a chicken stock, then cook a chicken in it in order to enrich the stock. Also, make sure the vegetables are well cooked and not al dente so that they are completely infused with the flavor of the chicken.

Serves 8

CHICKEN PASTINA

INGREDIENTS

1 1/2 pounds (681 g) on-the-bone chicken parts (leg, thigh, or breast) 2 quarts (1.90 L) unsalted chicken stock 1 bunch Italian parsley stems (reserve the leaves for garnish) 3 cloves garlic, peeled 3 bay leaves 2 sprigs fresh thyme 1 sprig fresh rosemary 1 cinnamon stick

3 tablespoons (45 mL) extra virgin olive oil 1 large onion (12 ounces [341 g]), diced small 2 carrots (10 ounces [284 g]), peeled and diced small 2 stalks celery (4 ounces [114 g]), diced small 1/2 of a trimmed fennel bulb (3 ounces [85 g]), core removed and diced small 4 cloves garlic, sliced Kosher salt and freshly ground pepper, to taste 5 ounces (142 g) pastina or acini de pepe, cooked 5 to 7 minutes in boiling salted water, drained, and rinsed Grated Pecorino Romano cheese, to taste

INSTRUCTIONS 1. In a soup pot, place the chicken parts, chicken stock, parsley stems, the 3 whole garlic cloves, bay leaves, thyme, rosemary, and cinnamon stick. Bring up to a simmer and cook, covered, for 25 minutes. 2. Remove the chicken, and when cool enough to handle, take the meat off the bones; reserve the meat. Add the bones back to the stock and simmer for 20 more minutes. Strain the stock and clean the pot. 3. Place the cleaned pot over medium heat and add the olive oil. When hot, add the onions, carrots, celery, fennel, and the sliced garlic, then season lightly with salt and pepper. Sweat (cover and cook slowly) the mixture for 15 minutes, stirring every 5 minutes. Add the strained stock, bring up to a simmer, and cook for 10 minutes. 4. Shred the reserved chicken meat and add to the soup. Add the cooked pastina (or acini de pepe) and bring up to a simmer. Adjust the seasoning with salt and pepper to taste. Stir in the reserved parsley leaves and serve. Garnish with the cheese to taste. Reprinted with permission from "Good Stock: Life on a Low Simmer" by Sanford D'Amato, Agate Midway, November 2013.

Wisconsin

Restaurateur • First Quarter 14

Res ta

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The Right

Ingredients

ALCOHOL LAWS FAQS

he WRA’s Hotline Team answers questions (via email and toll free number 800-589-3211) from restaurant operators around the state on a variety of topics. Here is a collection of some of the most frequently asked questions about alcohol. Q: I think Wisconsin allows underage guests to drink if they are with their parents, but I’m not sure that’s the right choice for my business. What do I need to know? A: Yes, under Wisconsin law, an underage person can legally drink alcohol in a restaurant or bar if accompanied by his or her parent, guardian or spouse of legal drinking age (21 years old). However, you should be mindful that the parent, spouse or guardian should be supervising the underage person. A brawl at an event in Wisconsin underscored the importance of this component. The Department of Revenue's Alcohol Division shared the following information: In a 2005 case, the court addressed what it means to be accompanied by a parent for purposes of s. 125.07(1)(a). The court held that the rationale behind the accompanied-child exception is that a "parent is presumed to be supervising the child's consumption of alcohol, minimizing the risk associated with

underage drinking." Therefore, "underage drinkers are not accompanied by a parent merely because the parent and child are on the same premises," which, in the court case, was a large area of rural property. The court held that because the parents were "neither supervising nor otherwise controlling" their underage son when he was drinking, they were not accompanying him for purposes of section 125.07(1)(a). Remember that a restaurant/tavern/ bar can opt to have a policy refusing service to any underage person whether accompanied or not. Just because the law allows it does not mean that your business must allow it. (The law says you may serve them, not that you must serve them.) Whatever your choice, please be sure to enforce your policy consistently with all of your customers. You can’t allow the children of your “regulars” to drink, but not allow the children of new customers to do so. It should be a standard policy. Q: A customer came into my restaurant and said that many local restaurants let him bring in his own bottle of wine. I thought that wasn’t legal in Wisconsin. What’s up? A: Customers bringing in their own wine is not legal in Wisconsin!

First Quarter 14 • Wisconsin

While WRA can certainly understand that allowing customers to bring in their own bottles of wine (whether it is a bottle of Veuve Clicquot for a celebratory meal or just a bottle of Two Buck Chuck) could be viewed as a perk, and other states allow it, the bottom line is that it is not legal in our state. Requiring the customer to pay a corkage fee doesn’t make it legal. Allowing a customer to bring in his own wine could put your liquor license in jeopardy. State law requires that you, the license holder, have an invoice for all alcohol beverages that are on your premises. As a Class B or Class C license holder, you must be able to show that you purchased the alcohol beverage from a licensed wholesaler or directly from a Wisconsin wine co-op. If you don’t have an alcohol beverage license you absolutely cannot allow customers to bring in alcohol beverages to have with their meals. Some states do allow this, so you may hear customers say “but I’ve done it before in _.” A Wisconsin restaurateur who permits the consumption of alcohol beverages on his premises without a license may be fined up to $1,000 and/or imprisoned for up to 90 days, or both. WRA often gets calls from operators who insist that we are naïve to think that many restaurants aren’t allowing customer carry-ins. It may be happening, but the continued on page 38

Restaurateur

continued from page 37 old “everyone does it” excuse won’t work if you get cited by the Department of Revenue or local law enforcement. Bottom line: losing some money because a customer is annoyed that you won’t allow this illegal practice is preferable to losing your license to serve alcohol. Sometimes members call and say “I need it in writing” to prove to customers that it really is the law. You can direct them to Wisconsin Statute 125.32(6) and 125.09(1) available online at www.legis.state.wi.us/rsb/stats.html. WRA can understand peoples’ frustration with this law, but it remains the law. Q: If I run out of a popular bottle of alcohol at the bar in my restaurant is it OK if I run down the street to replace it? I thought I heard that the law changed. A: No, there are no exceptions to Wisconsin statute 125.69(6) which requires retailers to purchase alcohol only from a Wisconsin wholesaler. What you may be thinking about was a reduction in the penalty for Class B licensees who purchase liquor from a Class A license that occurred quite a few years ago. This reduced penalty applies only to intoxicating liquor, not fermented malt beverages—no fermented malt beverages may be purchased by a retailer from any business other than a Wisconsin fermented malt beverage wholesaler, brewer or brewpub. Just because there was a reduction in the penalty doesn’t make retail purchases legal. You must have an invoice for all purchases of liquor, wine and beer and you may only purchase alcohol (liquor, wine, beer) from a Wisconsin wholesaler (not retailer). Please see Publication 302- “Wisconsin Alcohol Beverage and Tobacco Laws for Retailers” at the Department of Revenue’s website www.dor.wi-us.

customer who pays the bartender $3.00 for a drink is not getting a drink for $3.00 and no tax. He is getting a drink for $2.85 plus 5 percent (or whatever the sales tax is in your area), which equals $3.00. Operators should remember when they do their beverage costing that they are only receiving $2.85 for the drink, not $3.00. Sometimes we hear of customers grumbling when the same drink is served in the dining room and put on the customer’s bill, because the customer usually gets charged $3.00 plus a 5% sales tax on all food and drink. Customers may gripe saying, “this is double taxation.” Not really. Costs are higher to the business to serve in the dining room. Different prices are being charged for the drink in the dining room and the bar. It’s not double taxation because the difference in costs justifies the slightly different prices. Now about those signs…WRA sells a poster for $1 (plus sales tax, of course) that simply states “All drink prices include sales tax.” You could certainly create your own signs and display them in the bar area, or order one from WRA by calling 800-589-3211 or visiting the online store at www.wirestaurant.org. Wisconsin regulations require that customers must be notified when prices include sales tax in order for the retailer to claim a deduction on its sales tax return for the sales tax included in the price. We’ve heard of a bar/ restaurant getting into a tangle with the Department of Revenue about this issue. They had no signage

about their drink prices including sales tax and owed additional money because customers were not notified. Conspicuously posting a sign stating prices include sales tax would have solved this problem. Operators may also provide customers with a receipt which separately itemizes the tax or states “prices include sales tax” or conspicuously post the bracket system card, S-213 or S-218 issued by the Department of Revenue. Q: We are catering a big wedding off premise soon. They also want to buy alcohol from us to serve at the wedding. Is there anything I need to be aware of? A: You can do it, but there are guidelines from the Department of Revenue that you need to follow. What it boils down to is that you may dispense alcohol at non-licensed premises, but it cannot be sold to guests or attendees. This includes a direct charge (cash bar) or indirect charge (for a cup like they do at college parties). Wisconsin statutes prohibit consumption of alcohol at unlicensed public places, but there are some locations that are exempt: buildings and parks owned by counties, athletic fields and stadiums, school buildings, clubs, state fair parks and churches. The Department of Revenue put

Q: I’ve noticed signs posted in the bar area of some restaurants that say “All drink prices include sales tax.” What’s that about? A: Retailers must pay sales tax on all of their sales of alcohol beverages. A

Wisconsin

Restaurateur • First Quarter 14

together this list of guidelines for catering alcohol beverages: • A caterer holding a retail license may sell alcohol beverages to customers only if the sale is consummated on the licensed premises, with the buyer and seller both physically present at the time of sale. Retail sales of alcohol beverages must be made on the licensed premises in the presence of either the licensee, the agent of the corporation if the licensee is corporate or the holder of a valid operator's license. • Wisconsin law forbids place-toplace deliveries, where the sale and delivery of alcohol beverages are made concurrently. The retailer could deliver alcohol beverages to the event as an agent of the purchaser if the alcohol beverages have been previously purchased from the retailer as provided above. • If the caterer possesses a "Class B" (on-premises) license, liquor may not be sold for off-premises consumption

E XP E R I E N CE

WISCONSIN

CHEESES And

Specialty FoodS

unless authorized by local ordinance. In this instance, such liquor may be sold in multiples not to exceed four liters at any one time. However, wine and beer could be sold by a Class B liquor/beer licensee in any quantity for off-premises consumption. • Alcohol beverages sold at the caterer's licensed premises cannot be catered at other licensed premises. Alcohol beverage could be dispensed and consumed (not sold) at a non-licensed premises if the event conducted is a private function and is not open to the public. • The sale of all alcohol beverages used at the function must be made at the caterer's licensed premises, at which time they become the property of the purchaser: any alcohol beverages so purchased and not used may not be returned to the caterer. Consignment sales are illegal. • The caterer may supply personnel to dispense alcohol beverages at catered functions. It is illegal to have

• • • • • • • •

a "cash bar" at events where alcohol beverages have been catered in. Q: One of my customers told me that he should be able to take home his unfinished bottle of wine. I thought that was against the law. Who’s right? A: The Wisconsin law passed in 2006 is sometimes called the “Merlot to Go” law. This law allows restaurant patrons to take partially consumed bottles of wine with them when they leave the restaurant. The cork must be pounded back into the bottle so it is flush with the rim—and the sale must happen prior to midnight (check with local municipalities on hours of carry-out sales of alcohol). A dated receipt must be issued that shows the purchase of wine AND the food with which it was consumed. The wine must have been purchased with the food to be consumed on the premises. It’s recommended that the customer store the bottle in the cargo area of their vehicle or out of reach. WR

Large variety of Wisconsin specialty, artisan and goat milk cheeses Wide selection of butter, eggs and dairy products Glass bottled milk Snack and specialty foods, soups and appetizers Assorted meat products including ham, bacon, sausage, etc. Pickles, olives, cherries and other bar condiments Serving most of Wisconsin, upper Michigan and northern Illinois Call us for your foodservice needs Three generation family owned business, proudly serving our customers for 50 years

Vern’s Cheese, Inc. 312 West Main Street Chilton, WI 53014

Phone (920) 849-7717 Fax (920) 849-7883

Midwest Foodservice Expo Booth #644

www.vernscheese.com First Quarter 14 • Wisconsin

Restaurateur

Gluten-free Food Labeling Dealing with the New Regs by Amy Steger

eeting the demand for gluten-free foods became problematic for some restaurants when federal labeling requirements were introduced last fall. In August 2013, the Food and Drug Administration (FDA) created a legal definition of gluten-free, stating that any food labeled “gluten-free,” “no gluten” or “free of gluten” cannot contain more than 20 parts per million (20mg per kg) of gluten in the food. The deadline for compliance hits in August 2014, though restaurants are encouraged to comply with the new definition as soon as possible. As a result, establishments of all sizes are now reassessing recipes, training staff and addressing communications with consumers to satisfy the FDA’s gluten-free regulations. Unfortunately, there is not a one-size-fits-all solution and operators have many questions in serving gluten-free fare.

Menus & Communication

A popular response to the FDA guideline is to change menu language to reflect less specific gluten-related claims. Alternate nomenclature used includes gluten-friendly, gluten-conscious, gluten-sensitive and menu items for wheat/gluten allergies. A few restaurants have announced they will begin using the term gluten-friendly (vs. glutenfree) beginning early this year. Other approaches include adding disclosures about the potential for cross-contact and/or further defining gluten-related terminology so it cannot be confused with glutenfree claims. Relaying caveats that remove the guarantee of gluten-free content in menu items can alleviate pressure for restaurants.

Preparation & Cross-Contact

Some restaurants are reviewing and modifying preparation and cooking procedures in order to reduce cross-contact risk. When restaurants cannot revamp procedures to eliminate or minimize cross-contact, one approach toward compliance is to significantly downsize a gluten-free menu to reflect only menu items that undergo minimal preparation and are less likely to be exposed to gluten. While this is the least favorite option of many operators since guests’ choices are restricted, it can reduce the crosscontact risks posed with multiple preparation steps.

Training & Information

Many operators are interested in additional training to offer gluten-sensitive options for consumers. To help them meet the needs of customers with celiac disease, gluten intolerances and related allergies, the Midwest Foodservice Expo will present numerous resources. The Expo will take place March 10-12 in Milwaukee. Expo attendees may attend three different discovery-based education sessions that include: Gluten-Free and Allergy Free: From Ingredients to Plate on Monday, March 10; Fact vs. Fiction: The Real Scoop on Gluten on Tuesday, March 11; and Building Confidence and Loyalty with Gluten-Free Guests on Wednesday, March 12. On Monday, March 10, the National Foundation for Celiac Awareness (NFCA) is also offering a detailed paid-

Wisconsin

for training at the Expo titled GREAT Kitchens: Gluten-Free Training. For personalized answers or general information on implementing glutenfree, Expo attendees may visit the Gluten-Free Resource Center, sponsored by NFCA, Foodservice Express and Maplegrove Foods. In this area, industry experts will provide practical advice on accommodating gluten-free dietary requests. Gluten-free products will also be available to sample and source.

Gluten-free Facts • Over 3 million Americans have celiac disease—and an estimated 18 million more have non-celiac gluten sensitivity. • The only treatment for celiac disease is a 100% gluten-free diet—no wheat, rye or barley. • The gluten-free marketplace is growing at a rate of 28% annually. Stats courtesy of National Foundation for Celiac Awareness

More Info

For more information on gluten-free programming and education planned for the Midwest Foodservice Expo, visit www.everythingfoodservice.org. It’s just $30 for advance registration—a great value for all that’s offered over the three days. Wisconsin Restaurant Association restaurant members that qualify for free advance registrations should check their email or call 800-589-3211 for their special registration code. WR

Restaurateur • First Quarter 14

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FOOD SAFETY AND BARTENDER CERTIFICATION REGISTER TODAY! www.wirestaurant.org/servsafe •u r800.589.3211 First Quarter 14 • Wisconsin Resta ateur

Res ta

ces our

perational R nt O a es r u

The Right

Ingredients

SCAM

ROUND-UP

ver the years, we’ve seen many schemes and scams that target restaurant businesses. WRA keeps on top of the latest scams and sends out alerts to our members whenever new ones surface or when we hear that old ones are still being perpetrated. Here’s a round-up of several scams that restaurants need to be wary of to avoid becoming a victim to these sophisticated scammers. Once you’re familiar with them, be sure to tell your employees so they can be informed and aware.

The Latest in

The latest in Wisconsin Wisconsin Utilities scam

Fraudulent calls are made by imposters claiming to work for the local electric company or water utility. These “customer service representatives” then attempt to collect payment for alleged “past due statements.” Typically they instruct targeted victims to either wire money, load money onto a prepaid debit card or provide credit card information over the phone immediately to avoid having their power or water shut off. If you explain you have been paying your bills on time, they often will respond that your meter is malfunctioning and you must pay for a new one.

Wisconsin

Also, be aware that these scammers can “spoof” a caller ID system, making it read whatever they would like. The Department of Agriculture, Trade & Consumer Protection (DATCP) has heard from consumers who have had their utility company’s name pop up on their caller ID when they were contacted in this scam. How to respond DATCP has the following suggestions if you are contacted by someone saying you owe money to your utility company: • Hang up the phone. • Call your utility company using the number listed on your monthly statement to verify your account balance. • Report any fraudulent bill collection calls to your utility company. • File a report with your local police. • Call DATCP’s Consumer Information Hotline at 800-422-7128. Remember (this advice applies to several scams so take heed): • Reputable businesses do not require payments through prepaid cards or wire transfers. • NEVER give your debit or prepaid reloadable card PIN number to ANYONE, individual or business. • The PIN number must always remain secret, no matter what anyone tells you.

• NEVER send a wire transfer to someone you haven’t met in person. For additional information or to file a complaint, visit www.datcp/wi.gov, send an e-mail to datcphotline@wisconsin.gov or call the Consumer Information Hotline toll-free at 800-422-7128.

High-Tech

HighTheft tech theft Exploiting delays in banking transactions is one way scammers have devised of separating restaurant operators from their money. Two forms of this scam have been hitting the restaurant industry for a while now: the foreign reservation scam and the relay operator scam.

Foreign reservation scam

One frequently attempted scam involves approaching restaurants and hotels via email to request a reservation for a large group of people from a foreign country. The scammer will pre-pay to hold the reservation and then cancel, asking for their money to be refunded. The hitch is that their pre-payment to you has been made with forged checks or stolen credit cards; while that transaction is pending (and you believe you have the money in your account), you issue the refund. A

Restaurateur • First Quarter 14

short time later, the initial payment to your business is refused and you are out the money you sent as a “refund.” How to spot the scam: Be careful about large, foreign reservations! Often the initial email will appear legitimate, but be wary. Tip offs that you are being targeted by a scam artist: the email has poor or strange grammar or random capitalization; the writer tries to impress you with a fancy title; the sender is overly eager to assure you that the payment method is legitimate; or your business is not referred to by name, only as “your restaurant” or “establishment.”

Relay operator scam

The relay operator scam works in a similar way—the scammer makes a fraudulent prepayment for a reservation, large catering order or to-go order and then asks for a refund—but there is an additional twist: it exploits the telephone relay service used by people who are hearing impaired. Relay service—which has been around for decades—allows deaf and hard of hearing callers to type messages to an operator who then reads it to the hearing person on the other end of the call. In the past, users needed a special text telephone to use the service. Now the internet and text messaging devices make it easy for anyone to use the service—including con artists. How to spot the scam: Be wary of callers ordering very large to-go orders, customers who show little interest in the food being ordered, people who want to use a third party delivery service or callers who want to split orders between several credit cards. Like the reservation scam, many of these ploys also originate in foreign countries and odd or overly formal phrasing is typical. All of these may be signs you are the target of a scam.

Misleading Advertising, advertising, Misleading Overpriced Products overpriced products Some ploys targeting the restaurant industry could almost be termed “perennial favorites” because they have come up so often. Many of these involve

misleading restaurant owners into buying overpriced posters or other items in order to comply with regulations that have been distorted by the company selling the product. Check with WRA or another reliable source before spending money on a product you may not need.

Federal and state workplace posters

Companies have used scare tactics to market overpriced federal and state workplace posters to restaurateurs. Often these companies will use minor changes to the government posting requirements—changes that do not necessitate a whole new set of posters— as an angle for selling their overpriced set. WRA sends its members new posters when significant content changes (such as a minimum wage change) are made or you can order a whole set of up-todate posters from WRA for a reasonable charge of $25. The posters can also be downloaded from the Wisconsin Department of Workforce Development and the U.S. Department of Labor web sites and printed for free. Visit dwd.wisconsin.gov/dwd/posters.htm

Medical kits

Another intimidate-and-sell scheme that has come up more than once is the “OSHA” medical kit. A company calls saying your restaurant must have an approved medical kit required by OSHA or you could face stiff fines. While OSHA does require businesses to have first aid supplies, they must only be “commensurate with the hazards of the workplace.” In other words— despite what a company may want you to think—no specific kit is required.

you have won an award or that they want to include you in a prestigious sounding directory. Then they want you to buy the directory, which will probably cost you hundreds of dollars. You may get the directory, but don’t feel too flattered; they will undoubtedly bestow this “honor” on anyone willing to write the check. DATCP has a very helpful list of potential scams threatening small business. Visit datcp.wi.gov/Consumer/ Factsheets/index.aspx and look for “Fraud Against Business.” It’s worth your time to read it so you’ll be prepared and able to spot a scam before you’re taken advantage of.

been targeted – – I'veI’veBeen Targeted now What? what? Now If you feel you’ve been targeted by a con artist or an unscrupulous company trying to pull a fast one on your business, let the WRA Hotline Team know. WRA can refer you to government agencies tracking such scams and can let your fellow restaurateurs know what is out there by sending an alert to WRA members. If restaurateurs all watch each others’ backs, hopefully fewer people will be taken in by the scammers. WR

Vanity publications

These aren’t scare-andsell products, but more like flatter-and-sell products. A company will call and tell you that

First Quarter 14 • Wisconsin

Restaurateur

JOINED for different reasons. Have SUCCESS in common.

“I couldn’t have survived 20 years in business without WRA.” Mary Rowley, Goose Blind

“We support WRA for its lobbying group.” Omar Shaikh, SURG Restaurant Group

“WRA saves me a bundle on credit card processing.” Ada Lara Thimke, Lara’s Tortilla Flats

“As a small independent operator, WRA is essential to my success.” Steve Davis, Ardy & Ed’s

“WRA’s got my back so I can focus on my business.” Kris Larson, Becket’s

“I use the WRA hotline whenever I have a question.” Robert Klemm, INdustri Café

Wisconsin

Learn about the value of WRA membership WWW.WIRESTAURANT.ORG • 800.589.3211

Restaurateur • First Quarter 14

Products You’ll See at Expo 2014 The Midwest Foodservice Expo is THE place to keep up with industry trends and innovations in foodservice. 100s of suppliers (local and national) will be on-hand to answer questions, help you test products and offer samples of their flavors. Keep up with what’s new for your business… because the only constant in foodservice is change.

Here’s a preview of just some of what you’ll see in Milwaukee, March 10-12:

Advansys™LXe Undercounter Dishwasher This new ENERGY STAR® qualified high-temp dishwasher saves up to $485 per year. Features three cycles, booster heater, auto delime cycle, steam elimination and NSF Certified to clean pots and pans.

Woolsey & Associates, Booth 712 & 716

Brew Pub Lotzza Motzza Pizza In eight fantastic flavors, each with over 1/2 pound of mozzarella, all you need is a hearty appetite and a to-go bag. Pizzas in 9" and 12" sizes. Save $6.00 per case on show orders!

– New since March 2013

– Exclusive Expo Discount

Duck Bacon and Sweet Corn Wontons A decadent filling of Maple Leaf Farms' duck bacon, charred sweet corn and cream cheese stuffed inside a crescent shaped wonton wrapper. For small plates or entrees. Special discount on Expo orders!

New Era Marketing, Booth 348

Brew Pub Lotzza Motzza Pizza, Booth 343

Franchise: McAlister's Deli McAlister's Deli has an unwavering commitment to hospitality and the iconic McAlister's Famous Sweet Tea™ creates a unique position in the fast casual restaurant segment for a growing family of franchisees.

Clasen Chocolate Coatings Create wonderful chocolate candies and desserts with pastels and bright colors! Flavors include: Milk, Dark, Lemon, Keylime, White Fudge Raspberry, Sea Salt Caramel, Dark Mint, Coconut and more. 15% off of show orders!

McAlister, Booth 808

Cook Specialty Co., Inc., Booth 310

Fresh 'n Clear Catering Trays, Bowls and Lids Design Services Experts lay out your frontand back-of house for higher efficiency, greater productivity and lower costs. Designs include kitchen, bar, storage areas and dining configurations.

Kessenichs Ltd., Booth 817

Designed to beautifully let food take center stage, this sustainable food packaging is manufactured with up to 100% post-consumer recycled food-grade PET from bottles and thermoforms.

Placon, Booth 617

continued on page 46 First Quarter 14 • Wisconsin

Restaurateur

Glastender

Mirage® Induction Rethermalizer

Glastender Portable Bars have a stylish feathered jewel finish stainless steel top to hide the scratches. Stainless steel front and side panels are welded to 16 gauge stainless base. Orders placed to ship within 30 days of Expo receive FREE FREIGHT.

This soup rethermalizer doesn't require water for heating, eliminating the need to fill and refill the unit with water. Induction heating technology offers fast retherm times and precise temperature control.

Vollrath Company, LLC, Booth 837

Mogogo Modular Buffet System

Davis & Associates, Inc., Booth 520

Quality engineered modular catering tables and serving stands, for indoor or outdoor use. Easy to assemble. Double sided bamboo shelves for two looks. Variety of accessories available.

Gluten Free All Purpose Flour Baking for a gluten free diet has never been easier! This cup for cup, pound for pound exchange flour contains a perfect blend of tapioca, corn and natural gums.

Boelter, Booth 602

Foodservice Express, Booth 422

Moscow Mule Cups Grande Sliced Provolone Cheese New pre-sliced Grande Provolone cheese eliminates labor and ensures consistent portion sizes to help manage costs.

Grande Cheese Company, Booth 740

Handcrafted Soap and Lotion Gift Bag Gift bag includes bar soap and goat milk & honey lotion. Wisconsin-made with many fragrance selections. 10% off gift bag purchases and/or orders placed at the Expo!

Kreative Kraftwerks, Something Special from Wisconsin

Merchandise this popular libation in historically accurate copper mugs to increase customer interest and profits! Available in bright copper or hammered copper finish.

Edward Don & Company, Booth 902 Orbit Payroll

Online employee management software covers: payroll outsourcing and tax filing, time/attendance, HR and benefits, document management, mobile apps and more. Free W2 Processing for 2014 on Expo orders!

Payroll Data Services, Booth 723

Honey Bites

Oven Baked Eats

Snack-sized honey and granola bars available in 24-packs (6 of each flavor) or 8-packs. Flavors include Pistachio-Cashew, Seeds & Raisin, Cranberry Peanut Butter and Cinnamon Almond Raisin.

Mouth-watering appetizers, savory sandwiches and restaurant-quality pizza your customers will crave. Improve the variety of your menu while simplifying your foodservice execution.

Buddy Squirrel, LLC, Booth 831

Oven Baked Eats, Booth 439

Just BARE® Chicken Drumsticks

Pest Control

Premium quality drumstics made from responsibly raised chicken, ready to be baked, fried or barbequed right out of the case. Just BARE chicken has no antibiotics—ever.

Decrease the potential of pests with a proactive approach. Batzner provides inspection services, proven treatments and makes sanitation recommendations necessary to help control pest populations. 25% off initial B.A.N. system!

GNP Company, Booth 408

Wisconsin

Batzner Pest Management, Booth 744

Restaurateur • First Quarter 14

Rainbow's End and Miss Karen's Frozen Yogurt Over 70 flavors of frozen yogurt ready-to-use, live and active cultures, kosher, no added growth hormones and no high fructose corn syrup. Buy a baker's dozen and get a free case!

Sweet Chills Brands, Booth 829

Three Tier Rotating Pizza Oven Designed for today’s operators who need a small, compact design, versatility, cooking speed and flexibility, this oven will brown, toast, broil, bake and poach in 35%-40% less time.

Redco Foodservice Equipment, LLC, Booth 333

Used Oil & Organic Waste Collection

Schenck Payroll Processing Save time, money and hassle with payroll check processing, service allocations, tip processing, blended wage calculations and more. WRA Members save 10% on first year of payroll fees!

Serving the upper Midwest with used cooking oil and trap services. Now offering Organic Waste Collection. From your back door, recycling excellence!

Sanimax, Booth 446

Schenck SC, Booth 638

Vegan Soft Serve Mix Steelite China Smart, functional and affordable tableware in a range of designs. The china’s style and elegance enhances the mood of the occasion and showcases your food to perfection. Get 10% in free goods with opening order!

Frosty non-dairy certified vegan soft serve mix.

Frosty Products, Booth 541

Kavanaugh Restaurant Supply, Booth 514

Widefly 360 Mobile Handheld Tater Chip Tenders™

Android POS handheld for tableside ordering, QSR line busting and credit card payments. 4.3" LCD, long battery life and secure Wi-Fi roaming. Many optional accessories and modules available. Purchase 3 Widefly PDAs and get 1 unit free!

A whole muscle chicken tenderloin surrounded by a breading made with real crushed potato chips. This crunchy, salty snack is prebrowned and ready to cook.

Brakebush Brothers, Inc., Booth 217

POS Partners, Inc., Booth 755

MIDWEST FOODSERVICE EXPO March 10-12, 2014

Wisconsin Center • Milwaukee, Wisconsin

www.everythingfoodservice.org Exhibit Hall Hours Mon: 11am-5pm Tues: 10am-5pm Wed: 10am-3pm Your 3-day pass is only $30

FREE advance registrations for WRA members!

First Quarter 14 • Wisconsin

Restaurateur

Sizzling Chili Bowl Throwdown

WRBN

Wisconsin Restaurant Business News, continued from page 22

Wisconsin Restaurant Business News

Potawatomi Bingo Casino’s Latest Endeavor

Roundtable Members of the construction team place a piece of steel with American Flag, Potawatomi Tribal Flag and a tree for the topping off ceremony.

On November 1st Potawatomi Bingo Casino celebrated a milestone for their $150 million hotel project. The final beam, which was signed by Potawatomi Bingo Casino team members, was placed on the 18-story hotel during the “Topping Off Ceremony.” The ceremony program recognized hotel contractors and workers involved with the project, along with Casino, Tribal and civic leaders, including Milwaukee Mayor Tom Barrett. The hotel will feature 381 rooms, including 16 suites and a presidential suite on the top floor, as well as a casual restaurant. It is scheduled to open in the fall of 2014.

Hotline Q&A

National Restaurant Association Awards – Finalists from Wisconsin Finalists representing Wisconsin will go on to compete at the national level. Visit the WRA website at www.wirestaurant.org to learn about the finalists’ bios and community programs.

Faces of Diversity – American Dream Award Yinka Adedokun – Reynold’s Pasty Shop Will Allen – Growing Power Cafe Peter Gebauer – Potawatomi Bingo Casino Doris Ng – GingeRootz Asian Grille Restaurant Neighbor Award Cornerstone Humanitarian – Jerry Arenas (Owner, Palmer’s Steakhouse) Small business – Red Mill Supper Club Medium business – The Bartolotta Restaurants Large business – Wisconsin Hospitality Group

Wisconsin

Nine teams competed for the title of ultimate chili champion at the first annual Sizzling Chili Bowl Throwdown on October 27th at Lake Lawn Resort in Delavan. High School ProStart® programs were paired up with restaurants where chefs and students worked together to create the ultimate chili concoction. The high school students were currently enrolled in the ProStart program at their school. ProStart focuses on developing the culinary and management skills needed for a career in the restaurant and hospitality industry. In the Judge’s Choice competition, the team of Watertown High School students and Windwood Country Club won first place. The team of Pulaski High School students and Fox Valley Technical College won second place. The team of Portage High School students and Elite Catering won third place. In the People’s Choice Competition, a team of Badger High School students from Lake Geneva and Medusa’s took home the honors. The event was open to the public to taste and vote for their favorite chili. There was a suggested donation of $20 to attend. All proceeds from the event supported the ProStart program. Celebrity judges included: Chef Michael Feker from Il Mito, Gerard Prendergast from Lake Lawn Resort, George Flees from Parkside 23 and Michael Fifarek from DeRosa Corp.

Restaurateur • First Quarter 14

WRBN

More Frequent Line Cleanings = More Profit

A 2012 study based on a beer distributor in Wisconsin addressed the profitability of beer line cleaning. The Wisconsin Draught Improvement Study compared accounts using the specific line cleaning process and recommended line cleaning schedule (every two weeks) from the Brewers Association vs. accounts that didn’t incorporate the process/schedule. The results revealed 3.9 percent annual growth for “cleaned” accounts over the “control” accounts. For the cleaned accounts: At 132 servings in a keg = 5 additional pints per keg, per year—resulting in 3.9 percent annual growth. New costs associated with more frequent and thorough line cleaning are outweighed by new profits. The number one factor affecting draught beer quality is poor line hygiene. The Brewers Association urges retailers to take an active role in making sure their draught beer lines are cleaned properly and regularly (every two weeks), regardless of who performs the cleaning. Poor hygiene and improper cleaning and/or rinsing can result in inconsistent flavor and the loss of sales. Jeff Schaefer with New Glarus Brewing Co. has presented seminars on the economics of draught beer quality across the country, sharing the research which demonstrates that retailers who clean and maintain draught beer lines according to the Draught Beer Quality Manual will realize additional sales and profits created by increased customer satisfaction. A concise overview of the Economics of Draught Beer Quality is available at www.draughtquality.org – click on “News and Events” to access the PowerPoint presentation, audio recording and seminar Q&A. The Draught Beer Quality Manual is available for free download at the same website, or printed copies may be ordered for a small fee. Also available is a line cleaning fact sheet and cleaning log.

In Memoriam Ron Heuser Ronald "Ron" Henry Heuser, age 79, of Green Bay, died peacefully December 4, 2013. Heuser was born in Lena and was a 1952 graduate of Pulaski High School. He taught elementary Ron Heuser and his wife Lillian pictured at the 2011 Celebration of Excellence with Gina Schomaker (standing), the recipient of the Ron & Lillian Heuser education at Scholarship that year. various area schools. In 1958, he married Lillian Timm and together they owned and operated the Tailgate Restaurant and Motel in Mountain until their retirement in 1998. He was an active member and past-President of the Northeast Chapter of the Wisconsin Restaurant Association and served as the Association’s President in 1994. Heuser was named the state Restaurateur of the Year in 1988. A state board member since 1982, he served as an honorary board member until his death. He was one of the “founding fathers” of the WRA Education Foundation. Ed Lump, WRA President and CEO, described Heuser in the eulogy he gave as a visionary. Lump explained, “His passion was education. He wanted WRA to provide training that would help the industry become more professional. He wanted WRA to help develop talent to insure that their future would be bright for our industry. Ron became a driving force for the establishment of the WRA Education Foundation in 1983.” Heuser also served in several positions as a board member of the Mountain Area Businessmen's Association, and helped to set up the MABA's scholarship fund. He directed various church choirs over the years, and was the organist and choir director at Tabor Lutheran Church for 21 years, where he also taught and served as superintendent of Sunday school. Serving on the church counsel at Tabor, he took great pride in the planning and preparation of dinners and breakfasts sponsored by the Church Men's Club. Since his retirement, he enjoyed knitting scarves for the Salvation Army. He is survived by his wife Lillian.

Good News

Ed Carrella was promoted to Corporate Director of Restaurants for Marcus Hotels and Resorts in January. Prior to the promotion, he had been working as General Manager for the Mason Street Grill in Milwaukee. Born and raised in Chicago where his family ran a Southside Italian pizzeria, he grew up in the industry. Carrella studied hospitality management in college and has worked for some of the top restaurant companies including Lettuce Entertain You Enterprises, Chicago’s House of Blues, Grand Lux Café and Sullivan’s Steakhouse. Carrella serves on the WRA Board of Directors. WR Ed Carrella

First Quarter 14 • Wisconsin

Restaurateur

The Social Dish The Scoop on Social Media

Managing Social Media Maybe you’re already pretty savvy with social media and you’re engaging with customers on Facebook, sharing photos of delicious menu items on Instagram, tweeting about an upcoming event and monitoring customer reviews on Yelp and TripAdvisor. But keeping all of those plates spinning can get overwhelming. Luckily there are social media management options that can “syndicate” (or share with different outlets) your social media messaging, consolidate reviews and feedback and analyze your business presence on social media. The basics you’ll probably want: • A way to publish content across different social media platforms without having to log on to each one separately • Notification when someone comments about your business or shares your content • Ability to schedule content posting • Available analytics and reporting tools Finding the management system that makes the most sense for you depends on variables like the size of your business, the depth of your involvement in social media and your budget. Some of the companies described on this page have tiered pricing structures based on the number of users and social media accounts. Assess your current needs, but make sure there is a potential for growth. How many users will need access to the account? Will you be handling everything, or farming out some of the social media work to other employees? How much money does it make sense for you to spend on this? The good news is that some of the social management tools described below offer free trials. You can experiment and find the one that best suits your needs. The pricing for these options range from free (!) to $99 a month.

Fishbowl

Designed specifically for restaurants, Fishbowl (a WRA endorsed provider—check out their “Freemium” package for members at www.fishbowl.com/wisconsin) has an email platform with numerous restaurant-friendly templates and has expanded into the area of social media and reputation management. You can post emails to your social media accounts, schedule future social media posts and track social media activity and performance. They also offer a premium service where they generate content and manage your social media presence.

HootSuite

HootSuite seems to be the choice for many who are juggling different accounts. Its users appreciate the intuitive analytics and a feature that allows others in your company to participate in conversation threads. Some feel it’s best designed to generate shorts posts and tweets. Recently HootSuite joined forces with Reputology to monitor reviews on all the major review sites like TripAdvisor, Yelp and Google+ Local. If you have multiple locations, you can monitor activity for all of your locations. 50

Wisconsin

Postling

Fans of Postling appreciate its blend of social media monitoring, posting and reporting and instant notification of your business’ reviews on TripAdvisor and Yelp. Like Sprout Social below, Postling’s inbox lets you deal with all mentions and messages from one place. Service-oriented businesses like restaurants and hotels enjoy the real-time monitoring of review sites.

Sendible

Active and aggressive users of social media are drawn to Sendible’s capability to help you drill down to automate specific tasks as well as alerting you to mentions of your company name in social media. It may be a good bet if you are interested in longer blog posts.

Sprout Social

Users cite its detailed but easy-tounderstand reports and admire its attractive dashboard presentation. Sprout Social allows you to assign tasks to different team members in your operation. Its smart inbox gathers all of your social media messages into an organized inbox which you can then manage from one dashboard. Additionally, it can supply you with followers’ demographics in 24 hours.

VerticalResponse Social

This option from VerticalResponse marries both email and social media campaigns and allows clients to set up their own custom content library and will even suggest content based on your business. You may also want to visit these websites to learn about these free social media tools that might work for your business: Socialmention.com; Klout.com; and NutShellMail.com WR

Restaurateur • First Quarter 14

Celebrities Coming to the Expo Chef Gale Gand Chef demo and book signing Monday, March 10 at 1:30 pm

Chef Barret Beyer of Hell’s Kitchen Tuesday, March 11 at 1:00 pm

Iron Chef Cat Cora Opening keynote address Monday, March 10 at 10:00 am

Wisconsin Foodie’s Kyle Cherek Host of the Culinary Theater and keynote addresses

All presentations are included with your Expo badge!

www.everythingfoodservice.org

Chef Sanford D’Amato

March 10-12, 2014

Wisconsin Center • Milwaukee, Wisconsin Wisconsin’s Largest Foodservice F i r s t Q uEvent arter 14 • Wisconsin

Keynote discussion and book signing Tuesday, March 11 at 11:30 am Restaurateur

We asked restaurant operators from around the state:

What was your most embarrassing moment

The Back Burner

Simmer on this I was a chef in a French restaurant and picked up the fish order every Saturday. One Saturday the fish merchant had an extra case of live crayfish he offered to me at a great price. When I got to the restaurant there were lots of problems so I stashed the crayfish in the walk-in and started working. After service I discovered hundreds of crayfish crawling around the walk-in from floor to ceiling. To my continued embarrassment, the critters kept turning up for over a week.

in the restaurant business?

Doing a sushi demonstration for a group of women and confusing the word tentacle for testicles. Can I say that? Or a more PG story: dropping a tray of shrimp cocktails plated in champagne coupes on a lady all dressed up in her New Year's Eve gown at a private club. Michael Tsuchihashi, owner Atlas BBQ, Grafton

Harry Crane, executive chef Kraft Foods/Oscar Mayer, Madison

Spilling red wine on Gov. Tommy Thompson on his way to Washington without another shirt to change into. Went to buy him another shirt and gave him a Packing House t-shirt to wear in the meantime. Chris Wiken, general manager The Packing House, Milwaukee While working the door as a host one evening, a group of masculine looking gals came in and I greeted them by saying "Good evening gentlemen." The lobby full of guests waiting for a table went silent... the gals were nice and acted like they didn't hear me. Jack Schulte, owner/manager Yankee Jack’s Pub & Grille, Eau Claire

When I was walking around the kitchen with a hot pad in my hand, trying to find what may have been on fire. I smelled smoke, couldn't find it until I realized it was the hot pad in my hand...one of my finer moments. Rhoda Steffel, general manager Marks East Side, Appleton

The first day we were open we had one bartender, one manager, two servers, and one host/busser in the front-of-house. We were completely understaffed and overwhelmed by the amount of people that showed up. Many items were comped and many apologies were given that first week of business. Matt Boshcka, co-owner Dublin Square Irish Pub & Eatery, La Crosse

I was making espresso and we had a beautiful, authentic espresso machine direct from Italy. The machine was located in the dining room and there was a table seated fairly close to the machine and a table of four seated there. When I put the espresso up into the machine and hit the lever to force the hot water through, it wasn't sealed properly and coffee splattered all over the back of a young man who was sitting there. I was mortified, but nobody at the table realized what had happened, so I needed to let them know. The poor guy looked like a leopard. Joanne Palzkill, owner/manager Draganetti's Ristorante, Eau Claire

Share with your fellow restaurateurs on the next Back Burner question—visit www.wirestaurant.org 52

Wisconsin

Restaurateur • First Quarter 14

Photo Credits

ve rtise r

dex

From top to bottom; left to right

Blue Honey Bio-Fuels. .............................. p.14

Cover fortune cookies...... Joe_Potato/iStockphoto.com

Brakebush Brothers, Inc.......................... p.25

p.3 breakfast.................whitewish/iStockphoto.com

Buddy Squirrel, LLC................................. p.21 p.4

Cornerstone Processing Solutions, Inc............................................ p.31

lunch........webphotographeer/iStockphoto.com wheat............ Janine Lamontagne Photography/

iStockphoto.com

kosher......... Alex Belomlinsky/iStockphoto.com

Dierks Waukesha.......................... back cover p.12-13

EatStreet.................................................... p.29

mother baby.........................Svetlana Damjanac/

iStockphoto.com

mother daughter.....Eric Audras/Onoky/Corbis

Ergo Chef. .................................................. p.13 EWH Small Business Accounting S.C........................................... p.7 ForkForce................................................... p.19

yellow book. ......Nancy Louie/iStockphoto.com party.........................Rich Legg/iStockphoto.com p.14 wallet............................Fancy Photography/Veer

You watch your business.

WRA will watch your back.

p.18 fish. ......................... AlexRaths/iStockphoto.com meat. ....................... rudchenko/iStockphoto.com

GNP Company / Just BARE Chicken................................... p.35 Heartland Payment Systems..................... p.1

veggies.......... Vasiliki Varvaki/iStockphoto.com p.20 chef w/salad...... 4774344sean/iStockphoto.com p.22-23

Inner-Net, Inc............................................ p.27

hr........................ zwola fasola/shutterstock.com application........... Ryan R Fox/shutterstock.com

Jacob Leinenkugel Brewing Company........................................ p.9

p.24

Menu Masters............................................ p.33

p.31

tip................... Danny E Hooks/shutterstock.com

teen...............................Pavel L Photo and Video/

Natalie's Orchid Island Juice Company.............................................. p.2

shutterstock.com

p.32-36

Sandy D'Amato photos............ Kevin J. Miyazaki Reliable Water Services............................. p.5 Sanimax....................................................... p.27

p.37 shots....................bogdanhoda/shutterstock.com p.38

Society Insurance........... inside front cover

wine............................ zimmytws/shutterstock.com p.42-43

TCI Architects/ Engineers/Contractor. ........................... p.23

thief. .......................Brian Senic/shutterstock.com

Vernâ&#x20AC;&#x2122;s Cheese, Inc...................................... p.39

p.52

worried man. .. nando viciano/shutterstock.com

server...................Jaimie Duplass/shutterstock.com

First Quarter 14 â&#x20AC;˘ Wisconsin

Be a WRA member 800-589-3211 wirestaurant.org

Restaurateur

Fresh Success! D

ierks k Waukesha understands the demands of operating

a successful restaurant and can help you navigate the difficult re waters off today’s t d ’ marketplace. Providing you with 15,000 of the very freshest products available is only the beginning.

Check us for Success”food foodshow show Check us out out at at our our “Prescription “Journey to Profitability” April & 4th. 3rd. Call Call for for details. details. April 1st, 2nd,2nd 3rd &

MENU PLANNING MARKETING STRATEGIES

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Call us today to find out more of the Dierks difference . . . here’s to your success!

Wisconsin

Restaurateur • First Quarter 14