NORTH CENTRAL, BONNEY LAKE HIGH SCHOOLS SHINE IN PROSTART® COMPETITION
IT’S TIME TO FULLY EMBRACE THE TECH REVOLUTION
Publisher Anthony Anton
Executive Editor Andy McVicar
Copy Editors: Ken Fockele, Lisa Leinberger, Marianne Scholl
Art Director Lisa Ellefson
Contributing Editors: Ken Fockele, Kyle Galvin, Lisa Leinberger, Raquel Pace
EXECUTIVE COMMITTEE
Chairman of the Board Brian Moreno, McDonald’s
Immediate Past Chair Ron Oh
LEADERSHIP TEAM
President and CEO Anthony Anton
Chief Financial Officer Kristina Parker
Chief of Staff Shannon Braegelmann
Director of Communications Andy McVicar
Senior Director of Government Affairs Julia Gorton
Director of Local Government Affairs John Lane
Director of Membership Steven Sweeney
510 Plum St. SE Olympia, WA 98501-1587
T 360-956-7279 | F 360-357-9232 wahospitality.org
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We welcome your comments and suggestions. email: news@wahospitality.org, phone: 800225-7166. Readership: 9,422
Anthony Anton President and CEO anthonya@wahospitality.org
It’s time to fully embrace the tech revolution
Hospitality has reached the tipping point in the tech revolution, folks. There is no going back.
Companies that were in the vanguard of the technology revolution have done quite well. By harnessing the power of tech, Domino’s went from near bankruptcy to being the largest pizza chain in the country. It did that by transforming itself into an e-commerce site that happens to sell pizzas. And every restaurant company on the stock exchange has had a chief tech officer in the C-suite for a while.
But our industry is not dominated by major corporations. It’s mostly independent owners and family businesses, mom-and-pop shops with long traditions and careful bottom lines. And we can be resistant to change when things are working well enough. Many of you have said you’ll get to tech when it gets here. Guess what, it’s here and things could definitely be working better for you.
Aggressive engagement in tech is now both efficient and cost-effective. That’s because the cost of labor and operations has dramatically increased, and the cost of tech has decreased. This shift is a game changer even for small businesses.
We’re also seeing the functionality of tech improving as well as a turnover in attitudes toward tech. Boomers who ask, “Why would I want to use tech when I’ve been running my business for 30 years without it?” are being replaced with millennials and Gen Xers who ask “Why wouldn’t you use tech? It makes life easier.”
You know you have to reduce costs, and now tech is a functional way to do that, particularly when it comes to meeting labor challenges. The labor shortage is only going to get worse as more boomers retire, and it’s going to be four to five years before things start to improve. There will simply not be enough people to hire to do all the things we need to have done.
The big question is, are you prepared to take better advantage of the tech revolution that is underway? How is your company going to address tech? Here are some critical questions to ask yourself and your company:
1. Who is leading the tech revolution in your company? Is there a point person who is responsible for receiving and vetting ideas and for determining which tech is right for your company?
2. Who are your partners who will bring you the latest ideas and the best practices?
3. How is your company going to find the time and the space—physical and mental—to transition to this tech?
4. How much are you willing to tackle at one time?
5. How will you judge at the end of the day if your adoption is successful?
I know these are big questions. I have been traveling around the state this spring to listen to your challenges and how we can best serve you in this revolution. Over the next 18 months, look for what I’ve learned and how the association will be there to help you even more. You can find existing resources on our website by searching “hospitality tech.” And of course, you can connect to all sorts of tech solutions with this Buyer’s Guide. It includes all manner of businesses ready to catch you up on the technology that is helping your peers in the industry lower employment costs and save money.
On a final note – I’m not only recommending members embrace technology to secure a more prosperous future for themselves. The association is adopting more tech-focused solutions to the challenges we face as well. As an example, the latest membership survey confirmed a suspicion we’ve had for a few years – most members would rather receive the Buyer’s Guide online as opposed to this print addition we’ve offered over the years. We are taking that to heart, which means this will be the final printed version of the Buyer’s Guide. Our efforts going forward will be focused on more cost-efficient resources like the online version of the Buyer’s Guide. We would like to thank you for all the many years of readership to this publication.
Here’s to your success!
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Hospitality employers may think it’s out of reach, but health insurance for their employees is affordable
Employers are always looking for new ways to attract new employees. They offer competitive salaries and paid sick time, but when it comes to health insurance, many small business owners assume they can’t afford it.
The numbers emphasize the importance of employee benefits in the hospitality industry. According to a study by the National Restaurant Association, 67% of restaurant employees said that benefits were an important factor in their decision to take a job. In addition, 62% said that access to health insurance was important, while 56% cited paid time off as a key benefit.
Recognizing the importance of employee benefits, Hospitality Health Insurance (Trust) has emerged as a unique and affordable way for hospitality operators to access a wide range of benefits for their employees. By leveraging the collective buying power of its members, the Trust can offer affordable plans and deliver great value to even small employers with just two enrolled employees.
One of the key advantages of the Trust is its ability to offer a wide range of benefit options that can be customized to the needs of each employer. While our virtual options do not replace some areas of traditional health insurance, if you feel traditional health insurance may be out of your reach, you may find some of our virtual options more in line with your—and your employees’—needs.
Your employees can download the Teledoc app onto their smartphones and either engage with a physician over the phone or on a video call. They don’t have to wait in the doctor’s office for their appointment, they can do it from the convenience of wherever they are.
Patients can use it for non-emergency conditions like the flu, allergies, infections and more.
Teladoc, for example, is only $2.52 per employee, per month. This benefit is very convenient for your employees since they don’t have to take time off to see a physician. If an employer communicates the benefits of Teledoc to their team, it can provide employees who tend to rely on waiting in the ER or urgent care the ability to meet with a doctor sooner to get a full diagnosis.
Board certified doctors are available 24 hours a day, seven days a week. This plan has a $0 copay for all services, including family members.
HealthiestYou is another affordable app that your employees can access from anywhere they are. For $9 per employee, per month, your employees can access general medical care, mental health care, dermatologists, nutritionists and back and joint care professionals. All visits are virtual and unlimited including mental health.
Board certified doctors are available 24 hours a day, seven days a week. This plan has a $0 copay for all services, including family members.
Kaiser Permanente’s Virtual Plus also offers low monthly premiums and no-charge virtual care. The plans give your employees convenient ways to start their care virtually with referred in-person care when they need it.
This plan also offers live chats 24 hours a day, seven days a week, scheduled video visits, e-visits, emails for non-urgent questions, a consulting nurse and scheduled phone visits.
Employee benefits are a critical tool for attracting and retaining a skilled workforce in the hospitality industry. Hospitality Health Insurance is a unique and affordable way for employers to access a wide range of benefits for their employees.
As the industry continues to evolve, employers who offer competitive benefits packages will be in the best position to attract and retain top talent. ■
The exponential benefits of a collaborative approach to selling a hospitality business
ByOliverKotelnikov
For many business owners, the company is their baby. “Meet my first-born child,” is an introduction I hear often. Years, decades and sometimes generations of blood, sweat and tears can make the prospect of selling and letting it all go exciting and daunting at the same time. How much is the business worth? Will everyone find out it’s for sale? How will the change of ownership impact employees? How will my customers and the community respond to the news of the sale? Where and how do I begin the process of selling my business?
In my many years as a business and commercial real estate broker to the hospitality industry, I have learned that the most successful transitions at the helm share one common trait: The collaborative, also known as the win-win, mindset. The idea that parties to a transaction are not adversaries and will work together towards a common goal may seem counterintuitive and require a shift in perspective. Yet this is exactly the strategy that builds legacies, and reliably produces mutually beneficial outcomes in the sale of family businesses and privately held companies.
Working with a team
Early stage exit planning begins with larger questions. Why are you selling? What does the next chapter look like? It’s common for the equity in the business to be the retirement nest egg and represent a large portion of the family’s overall financial holdings.
Working with a trusted team of advisors will assess the sale of the key asset in the context of a larger puzzle and ensure the transaction serves the future financial needs and goals of the seller. An experienced business broker can establish the fair market value of the business. A wealth advisor or estate planner will map the intelligent distribution of the estimated proceeds. A CPA will advise on tax mitigation strategies and the optimal price allocation of the assets. A contract attorney can provide input on whether a stock or an asset sale will best align with the recommendations of the CPA.
Once listed for sale, the broker will incorporate the input of the advisors to deliver the optimal deal terms. The owners are experts at running their business. Recognizing that selling it for maximum market value and successfully transitioning to the next chapter of their lives requires a very different skill set and will make outsourcing the transaction to the experts a no brainer.
Joining forces with the successor
Once the buyer and seller agree on the principal terms of the deal, they can work together towards completing the sale and smoothly transitioning ownership. Close collaboration between the parties will be required to complete the due diligence of business records,
secure financing, coordinate inspections, reassign the lease or transition the real estate, and transfer or obtain the licenses and permits legally required to operate the business.
Public relations
Employees, trade partners, vendors and customers are the heartbeat of the business. Preserving these relationships is the key to a smooth transition and the continued future success of the business. Any announcements related to the sale should be intentional, and a result of a thoughtfully planned out and closely coordinated effort between the parties. Effective messaging to deliver the news will:
1. Present a unified front
2. Highlight the commitment to relationships and a successful transition
3. Outline the next steps and keep the lines of communication open
The timing, format, tone, and the supporting narrative of the communication is often the deciding factor in winning hearts and minds of key partners in the business.
Crosscheck for arrival
The last leg of the transaction is marked by preparations for closing. The parties work with the escrow or title company to tie up loose ends and gather the necessary documentation for a timely closing.
The seller may need to provide updated financials for the lender so the buyer can receive the final approval of funding. The buyer may request photos or additional information on the facility to secure certificates of insurance or endorsements for liquor and health department licensing.
The parties may need to come together for a joint inventory count to fine tune the value of stock included in the sale or work with vendors to transfer utility and merchant services accounts. Finally, the buyer and seller need to make it official by signing the closing paperwork and marking the occasion with a celebration.
Oliver Kotelnikov is a Senior M&A Advisor and Director of the Hospitality Transaction Division at IBA and can be reached at oliver@ibainc.com. ■
NORTH CENTRAL, BONNEY LAKE HIGH SCHOOLS SHINE IN PROSTART® COMPETITION
ByLisaLeinberger
This spring, 15 teams from across Washington state competed in the annual ProStart competition, a management and culinary throw-down of high school students interested in pursuing careers in hospitality. In the end, the culinary team from North Central High School in Spokane and the management team from Bonney Lake High School came out victorious, sending them to Baltimore, Maryland for the national competition.
“It’s my favorite day of the year,” said Washington Hospitality Association President and CEO Anthony Anton. “We get to witness people experiencing our industry in a new way with pure joy and see the passion that the kids have for the restaurants or the passion we all got when we first got involved in the industry. It’s great to see that it’s still alive.”
Bonny Lake’s management team is led by teacher Kahale Ahina and includes Mira Tynes, Clara Jensen, and Mabel Anderson. Their professional mentor is Michael Ventura. This team won the state competition in 2023.
It’s my favorite day of the year. Anthony Anton
ProStart is a hands-on, real-world, career-connected learning program, and students are mentored by industry leaders. Students not only receive career and technical education credits, but their industry mentors open doors for them when they are ready to enter the workforce.
“The two-year ProStart program is a vital asset within our workforce pipeline,” said Sonja Halverson, the director of the Washington Hospitality Association Education Foundation. “Its curriculum offers invaluable hands-on experience, laying a sturdy foundation for those pursuing a career path in hospitality.”
Bonney Lake took home the trophy with their concept of a semi-formal establishment, Fairie’s Hideout, which specializes in afternoon tea.
The cuisine would hail from places with solid fairy folklore, such as Ireland, Germany and the United Kingdom.
On the culinary side, students created a three-course meal without electricity and running water. They use propane gas camp stoves and haul in their own water.
North Central beat out the other teams with its menu, “Bounty of the Inland Northwest.”
The meal started with an appetizer called Morel Forest. It included shaved asparagus trunks, morels, garlic pesto, pickled shallots, pecorino romano and a chiffonade of basil. The second course, Spring Steelhead, included local fish, a citrus salad, morel rice pilaf, charred tomato romesco and poblano cream.
For dessert, the judges sampled a wild huckleberry frybread with hazelnut cream, orange zest, huckleberry sauce, frybread and a huckleberry isomalt glass.
The team included teacher Kim Stewart and students Arlen Everman-Jones, Allison German, Elisa Wilbur and Elina Khadka. Garth Hicks from Wild Sage Bistro served as the team’s mentor.
During the National ProStart Invitational, Bonney Lake came in 12th place and North Central took 24th place. Congratulations to both teams for representing our state so well!
The Washington Hospitality Association would like to extend its thanks to the Cowlitz Tribe for its sponsorship of this event and the many volunteers and judges who stepped up to help. ■
2024 LEGISLATIVE SESSION RECAP
ByAndyMcVicar
The 2024 legislative session adjourned “sine die” for the year on March 7. This year lawmakers convened for a short 60-day session, so they mostly focused on adjusting the two-year state budgets and revisiting legislation that failed to pass during the 2023 legislative session. We also saw several new issues emerge this year.
Your government affairs team worked with lawmakers on several key priority issues including Tourism Promotion Areas, reauthorization of lodging relief funds and creating a hospitality center of excellence.
We were also busy defending our industry from harmful legislation, which included burdensome gift card regulations, expanding unemployment insurance benefits to striking workers and another attempt to lower the per se blood alcohol content (BAC) level to 0.05%.
Despite a full court press by our team and other business groups, legislators approved a bill that would allow the state’s largest public utility – Puget Sound Energy – the ability to achieve “geographically targeted electrification,” which amounts to a ban on natural gas.
We’ve heard from countless members who have said a natural gas ban would be devastating to their businesses. For many, the conversion costs could reach six or seven figures.
The business community is confident that lawmakers are not in line with their constituents on this issue and we feel this is an issue we can win at the ballot.
As of the time of this printing, our coalition is collecting signatures for I-2066 — an initiative that will protect all of Washington state from a ban on natural gas.
This issue will continue to heat up over the summer and fall. If you aren’t signed up for our weekly newsletter, reach out to your territory manager to stay up to date with the latest on the initiative campaign and what you can do to protect natural gas service in Washington state.
In other legislative news, the association successfully secured $257,000 to establish a Hospitality Center of Excellence based at
Columbia Basin College. We worked diligently with Rep. April Connors in the House of Representatives, and Sen. Nikki Torres in the Senate to make the budget requests and secure funding.
THE ASSOCIATION SUCCESSFULLY SECURED $257,000 TO ESTABLISH A HOSPITALITY CENTER OF EXCELLENCE BASED AT COLUMBIA BASIN COLLEGE.
Establishing a Center of Excellence solely focused on the hospitality and tourism industry will help us source and develop top candidates to address workforce shortages, foster innovation by providing a platform for industry leaders, researchers and entrepreneurs to share ideas, and ultimately, create a credentialed workforce of passionate employees to help ensure that Washington remains a leader in the tourism sector and continues to attract visitors from around the world.
And we were able to secure $1 million in unused federal relief funding in support of Destination Marketing Organizations.
The Government Affairs team extends a huge thank you to our Government Affairs Committee (GAC) for providing the direction our team needs to best represent you at the Legislature. The insight and expertise provided by the GAC is invaluable as we achieve wins for the hospitality industry each legislative session.
If you are interested in joining the GAC, send an email to: statega@wahospitality.org.
Another thank you to all Washington Hospitality Association members who responded to our action alerts this session. We issued action alerts on several important issues this session, which resulted in more than 2,000 total engagements from our members. That is double our engagements from last year! Your efforts to contact lawmakers had an impact on the outcome of these critical issues. ■
Wage reports
ByKyleGalvin
The Washington Hospitality Association offers two repeating data report systems that measure job movements, earnings, and demand over time in the state’s service industry. These reports provide information on wage tracking by region, workforce heatmaps, regional unemployment rates, and demand for jobs. By keeping up to date with these reports, businesses can stay informed about the economics of the service industry and how changes might affect them.
As of January 2024, data from the reports showed low demand for service industry workers in Washington with 3,300 job posts per month, slightly below the national average of 4,000. The reports also analyze gender diversity. Washington has aboveaverage employee representation for female employees in the industry at 153,000.
The reports also include a section on Industry Gain and Drain, displaying detailed data on job transitions from other industries to the hospitality industry and vice versa. This information helps businesses understand where people are coming from and going to in the industry. Members of the association can find this data and more in the Reports & Data section of our website, wahospitality.org.
As you can see, these wage reports are an incredibly comprehensive source of information for the service industry. They provide insights on industry-specific wage trends and statistics. They are an essential tool for employers and operators and provide key data to help inform decision-making about wages and other areas of business. From average hourly rates to regional pay scales, the reports cover all the key areas that matter. They’re a perfect resource for business owners and hospitality professionals looking to stay on top of changing market conditions to achieve their goals. ■
INDUSTRY QUICK FACTS
Unveiling scam tactics
ByRaquelPace
Protecting your business and employees from scams is crucial in today’s world. One of the best ways to protect your business is to educate your employees so they know about common scams and what to do if they believe they are a target. Visit our new Scam Prevention toolkit for further information, resources and webinars the Washington Hospitality Association has created to help keep your business safe.
CREDIT CARD CHARGEBACK SCAMS
There are a couple of different types of credit card chargeback issues: friendly fraud and true fraud. Friendly fraud happens if a consumer disputes a charge with the credit card company. It happens because they may be unhappy with the quality of service, don’t remember making that charge or other reasons. True fraud happens with stolen credit cards or attempts to avoid paying for the service or goods.
Implement strict payment procedures to confirm the legitimacy of credit card transactions. On larger transactions or suspicious payment patterns, make sure you verify the identity of the user. Keep in mind that there are different rules depending on the card networks before asking for ID.
Keep detailed records of all transactions including signed receipts to dispute any fraudulent chargebacks. This can be helpful for friendly and intentional fraud.
Stay up to date with Payment Card Industry compliance regulations to protect customer card data.
Remember that generally, touch to pay and chips are more secure than the magnetic swipe to charge a card.
FRAUDULENT PREPAID BOOKINGS:
Individuals may use stolen credit card information to make prepaid bookings and later cancel and request a refund to a different account. Another form of this fraud happens when people make reservations and resell them at a higher price on another site. This can damage reputation and customer trust. By making fraudulent reservations, scammers can access personal data for further criminal activities such as identity theft.
Require guests to provide a valid credit card for prepaid bookings to minimize fraudulent transactions and verify identity.
Implement secure online booking systems that encrypt customer data. Ensure you are using a reliable third-party payment gateway to process prepaid bookings securely and protect personal and financial information.
Regularly monitor bookings and cross-check credit card details for any discrepancies.
PHONE SCAMS
Phone scams involve a fraudster calling a hotel or restaurant and attempting to deceive staff members or guests. Much like email phishing, this individual may impersonate a trusted entity. These trusted entities may be another hotel chain, restaurant management or a delivery service. The scammer claims that you can only solve their issue by revealing personal or confidential details. Another form of this is when a scammer says they have been overcharged and want reimbursement over the phone. The fraudster may even provide bank account details to convince the staff member and call at peak hours to evade detection.
Use caution when receiving phone calls that ask for sensitive information. Employ a policy to verify the identity of any callers before revealing any information to avoid spoofing scams. Keep in mind that official companies or services will rarely ask for confidential details over the phone.
Display contact information on your website and social media pages to encourage customers to reach out directly if they have any concerns.
By being cautious, verifying information and implementing security measures, you can minimize the risk of being scammed. ■
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BUYER’S GUIDE
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APPAREL, UNIFORMS & FOOTWEAR
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CHEMICAL, CLEANING SUPPLIES AND SERVICES
Page 18
CONSTRUCTION & REMODEL
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EQUIPMENT & SUPPLIES
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MAINTENANCE, REPAIRS AND SERVICE
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MARKETING, PROMOTIONS & PUBLIC RELATIONS
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OFFICE & MUSIC EQUIPMENT SUPPORT AND SERVICES
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PROFESSIONAL SERVICES
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FOOD & BEVERAGE
SUPPLIES & DISTRIBUTORS
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HOTEL LINENS, MATTRESSES & GUEST AMENITIES
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SPECIALTY SERVICES
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SYSTEMS, TECHNOLOGY & TELECOMMUNICATIONS
APPAREL,
UNIFORMS
& FOOTWEAR
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Embracing technology in a post-pandemic world
ByAndyMcVicar
There’s no question that hospitality is one of the greatest industries in the world. We’re in the business of providing amazing experiences. Our passion is rooted in serving our communities. We open our doors to all — from friends celebrating a night out to families road-tripping through our beautiful state.
As we look to the future in a post-pandemic world, it’s clear technology will play a vital role in the success of hospitality businesses. In the latest Technology Landscape Report from the National Restaurant Association, 65% of full-service customers say they’d likely use a computer tablet at the table to pay their check. The 2024 State of the Industry report from AHLA noted “Innovations in event technology and production are a vital part of total revenue growth and the customer experience.”
Nearly every hotel and restaurant owner and operator who fought to keep their doors open through the pandemic embraced at least one – likely more – new technology to stay afloat. Some of those technologies included:
Self-check-in kiosks
Automated kitchens
Mobile guestroom keys
Third-party delivery apps
Contactless payments
QR code menus
AI chatbots
Self-serve beer taps
DO ANY OF THESE CATCH YOUR EYE?
Learn more about these latest hospitality tech trends at bit.ly/toolkitshospitalitytech.
Washington Hospitality Association members can check out the latest state of the industry and technology reports from our national partners, which have mountains of useful data to guide you through strategic investments and decision-making around technology and your business.
And here at the Washington Hospitality Association, we’re taking lessons learned from these reports to heart as well. We’re excited to explore new technologies that will help us better serve our members.
At the top of that list will be a complete website redesign, which will come to fruition in 2025. There have been several advancements in website tech in recent years that will greatly enhance our efforts to provide members with firstin-class information and resources. Our new website will be intuitive, easier to navigate and more searchable.
And finally, as our association continues to lean in to more efficient and costeffective resources for our members, this print Buyer’s Guide will be our last edition, for now at least. We’ve received great feedback from our members, both anecdotally and through our recent member survey, that an online Buyer’s Guide is by far preferred over a print version.
We welcome any ideas you have. Drop us a line at tech@wahospitality.org.
So, for now, we bid you adieu from the team that has produced and distributed this Buyer’s Guide for the seven years the Hospitality Association has been serving you. We will invest more in new tools and technologies to bring you these resources online and via other digital platforms.
The technology you use impresses no one. The experience you create with it is everything.
