Washington Restaurant Magazine July 2013

WA S H I N GTO N

RESTAURANT HUMAN

I S T H RESOURCES S E GETTING YOUR U STAFF IN GEAR E

July 2013

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Inside: Are you misclassifying independent contractors?

The most important sell: your staff Giving bullies the boot

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Inside

www.warestaurant.org

Features

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The most important sell: your staff If your team hasn’t experienced first-hand your restaurant’s concept and mission, how can you expect them to sell it to customers. Learn how to sell to your employees first.

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Are you misclassifying independent contractors?

Learn how to avoid costly mistakes in labor law compliance.

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Give bullies the boot Do bullies know they’re not welcome on your restaurant staff? They should, and if they don’t, pick up some tips on establishing a zero-tolerance policy for disruptive and disrespectful behavior in your business.

Other stories 14

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Bully Free Zone

WA S H I N GTO N

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S T H RESOURCES S E GETTING YOUR U STAFF IN GEAR E

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Back by popular demand: health care reform Q&A conference calls!

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News Briefs

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Who is today’s restaurant workforce?

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Seattle City Council passes background check ordinance, including majority of business community’s amendments

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What is your EMF and how do you control it?

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Cooking oil recycling: an easy first step toward sustainability

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What does philanthropy mean to you?

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Calendar/New Members

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Marketplace

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Four ways restaurants lose money but don’t have to

On the cover Your staff keeps your operation running smoothly. Learn new ways to manage them more effectively.

Inside: Are you misclassifying independent contractors?

The most important sell: your staff Giving bullies the boot

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EDITORIAL STAFF Anthony Anton, Publisher Lex Nepomuceno, Executive Editor Heather Donahoe, Managing Editor David Faro, Contributing Editor Sheryl Jackson, Research Editor Lisa Ellefson, Art Director WRA EXECUTIVE COMMITTEE Jim Rowe, Chair Consolidated Restaurants Phil Costello, Vice Chair Stop N Go Family Drive Inn Robert Bonina, Secretary/Treasurer Washington Athletic Club Bret Stewart, Immediate Past Chair Center Twist Nancy Swanger, WRAEF President WSU WRA EXECUTIVE TEAM Anthony Anton President and CEO Teran Petrina Vice President Bruce Beckett Director of Government Affairs Lex Nepomuceno Director of Communications & Technology Lyle Hildahl Director of Education Victoria Olson Director of Business Development Susan Howe Director of Internal Operations 510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.warestaurant.org

Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification.

Reproduction of articles appearing in Washington Restaurant Magazine are authorized for personal use only, with credit given to Washington Restaurant Magazine and/or the Washington Restaurant Association.

Articles written by outside authors do not necessarily reflect the views or positions of the Washington Restaurant Association, its Board of Directors, staff or members.

Products and services advertised in Washington Restaurant Magazine are not necessarily endorsed by the WRA, and do not necessarily reflect the opinions of the WRA, its Board of Directors, staff or members.

ADVERTISING INQUIRIES MAY BE DIRECTED TO: Ken Wells Allied Relations Manager 425.457.1458 kenw@warestaurant.org Washington Restaurant Magazine is published monthly for Association members. We welcome your comments and suggestions. email: news@warestaurant.org, phone: 800.225.7166. Circulation: 6,310.

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Back by popular demand: health care reform Q&A conference calls!

By Lex Nepomuceno, executive editor Earlier this year, the Washington Restaurant Association and the Washington Lodging Association sponsored a series of weekly conference calls with a “health care” reform expert to help members manage the implementation of the Affordable Care Act (ACA) in their businesses. The calls were a huge success with as many as 50-plus callers participating in each session. Health care reform expert Donna Steward was able to address queries and concerns unique to the hospitality industry.

Although the previous sessions ended in April, all of the calls and related articles can be found at www.warestaurant.org/healthcare. It also appears that the volume of questions and concerns related to health care reform has remained constant. As a result, we have decided to return the hour-long conference call on a monthly basis to help restaurants prepare for when the ACA goes live.

The first of the monthly calls occurred in June, which covered the responsibilities of businesses under the Federal Health Care Reform Law. This session provided the basics of eligibility and whether or not a restaurant needs to provide coverage to their employees. A recording of this session can be accessed at warestaurant.org/health care, which is where members can find the call-in information for each call.

Below is the schedule of the remaining monthly calls. Remember, only the first 20-30 minutes is dedicated to a particular topic. The second half of each call is dedicated to answer member questions. So, if a WRA member has any questions or concerns related to “health care” reform this is the place to get the answers.

July 31: Just providing coverage may not be enough!

Did you know that if you are providing health care coverage to your employees you may still be subject to an IRS penalty based on the “affordability” of the health plan?

Are you also aware that “affordability” requirements are different for employees working at different wages? Tune in to find out your exposure for a possible IRS penalty and learn about allowable strategies to protect yourself against it.

August 28: Understanding which employees must be offered full coverage Are you aware that federal health care reform redefines who must be considered a fulltime employee? Are you also aware that many “part-time” employees may actually be entitled to coverage depending on the schedules they work? Join us for a conversation about how to determine who must be offered coverage, how measurement and stability periods work, and what strategies you are allowed to use to prevent IRS penalties for not providing coverage to eligible employees.

September 25: Understanding the new “nondiscrimination” rules from the U.S. Department of Labor The Department of Labor is currently developing rules on the implementation of the federal Affordable Care Act requirement that will prohibit an employer from requiring lower-wage employees to contribute more to premium costs than higherwage employees. These rules may include additional changes that fundamentally alter the benefit structures you have already developed. Join us for a discussion of the new rules and how they will impact all employers providing coverage.

October 30: Dispelling the myths about how to comply with health care reform Join us for a frank discussion of common misconceptions about the Affordable Care Act and what it means for large and small employers. We’ll look at strategies for complying with health care coverage requirements and what employers may or may not do to mitigate the impact of the reform.

November 20: Counting down to 2014 The most onerous provisions of the federal Affordable Care Act take effect on January 1, 2014, but employers can take steps now to be ready to meet the requirements and avoid penalties. Tune in as we recap each of the requirements that go into effect in 2014 and review strategies to prevent penalties. 

Primary Source of Information | News Briefs WRAMarketplace.com to get full revamp The Washington Restaurant Association (WRA) has contracted with Strategic Value Media to produce a new, expanded Online Buyer’s Guide. The new Online Buyer’s Guide will have a user-friendly format that makes it easy for restaurateurs to find the products and services they need. Look for this great new member benefit to launch later this summer.

In the meantime, you will be hearing from Strategic Value Media about opportunities to enhance your visibility and keep your name in front of key decision makers. The guide will act as a marketplace for all restaurants making it simple to find suppliers, service providers, and other companies throughout the restaurant industry.

Strategic Value Media (SVM), the company producing the buyer’s guide, will be contacting each member for upgrade opportunities that include complete listings, priority listings, product showcase, featured company and banner ads. SVM is a nationwide publisher and marketer of digital and print-based publications. They work with national, regional, state and local trade and industry associations to produce both print and electronic publications. Please support WRA by taking their call and advertising in our online buyers guide. We hope you will take advantage of the opportunity that best fits your needs and helps marketing your company.

Please contact Dan Sylvester by phone at 212.920.3918, by email at dsylvester@ svmmedia.com or by fax at 212.920.3993 if you have interest in showcasing your company to the decision makers in the restaurant industry.  NLRB poster rule struck down again A second appeals court has thrown out a National Labor Relations Board rule that would have required all employers to post notices advising employees of their union-organizing rights. The U.S. Court of Appeals for the Fourth Circuit made the ruling Friday, taking a similar position to that of the U.S. Court of Appeals, DC Circuit, which ruled against the NLRB mandate last month. Court decision http://1.usa.gov/11KLMRQ  HHS releases final rule on employer wellness programs The Department of Health and Human Services has released its final rule on incentives that can be offered to employees who participate in wellness programs that are offered as part of an employer’s group health plan.

Notable in the final rule is the increase in the maximum allowed discount that can be offered to employees who participate

in wellness programs—which give employees incentives for meeting health or fitness goals or participating in other activities that promote health—from 20 percent to 30 percent of the employee’s health coverage cost. For employees who participate in activities aimed at curbing or preventing tobacco use, the discount can be as high as 50 percent. The rule also includes guidance on the requirements a wellness program must meet to be considered nondiscriminatory. 

Restaurants projected to add 448,000 summer jobs Restaurants are expected to add 448,000 jobs this summer season, a 4.5 percent increase over the March 2013 employment level, according to National Restaurant Association (NRA).The projected gain represents an improvement over the 2012 summer season.

“Summer is the busiest season for restaurants in most parts of the country, and the stronger business leads to additional employment opportunities at all levels of a restaurant operation,” said Bruce Grindy, chief economist for the National Restaurant Association.

“The projected addition of 448,000 summer restaurant jobs will be driven by a national economy that continues to improve, as well as consumers’ pent-up demand for restaurant services that remains at historically high levels.” 

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Industry Outlook | WRA President & CEO

Who is today’s restaurant workforce?

Last month, hundreds of activists marched from fast food chain to fast food chain in Seattle to demand a new $15 an hour living wage. Similar demonstrations occurred across the country. As far as demonstrations go, we had no heads-up on a minimum wage rally coming our way, so when the news stories started breaking and the WRA’s phone started ringing from media asking for comments, we quickly gathered our traditional messages.

One look at our old talking points and we immediately realized that a lot has changed in our workforce since 1998.

So while we are clear on the reasons that the proposed $15 living wage is not a good idea for Washington, a larger question emerged: who is today’s restaurant workforce and where is it going to be in five years, after the dust settles from the Affordable Health Care Act and the long term impacts of the recession?

And if we are drivers of our own destiny versus victims of fate, what do we want it to be?

Consider just a few of the following: In 1998 nearly 20 percent of our workforce consisted of teenagers; the WRA estimates that figure today is closer to five percent of our workforce—a number that is dropping each year.

Immigrants have always viewed our industry as a great place to pursue the American Dream, but few argue that the past two decades have seen dramatic increases in the number of immigrant team members in our industry.

A growing number of our team members are seniors seeking part time work for various reasons, after retirement from other careers. Now 12 percent of our workforce is older than 55.

The number of workers per restaurant location in Washington state has dropped since the 1998 minimum wage took effect, and we now average three fewer workers per unit than the US average.

Anthony Anton, president and CEO

The Affordable Health Care Act is driving experts to

predict new norms in the average hours per week for workers, creating both more workers who near 40 hours per week and more workers who average less than 25, with the overwhelming number of today’s restaurant workers who average between 25-32 hours per week being pushed one way or the other.

There are several other drivers that this space doesn’t permit listing, but they all point toward a different tomorrow for the make-up of our workforce.

Are we still an industry of opportunity and entryway to the workforce, where nearly 60 percent of Americans got their first job? Are we morphing into an industry where more people are seeking long-term employment and career type work?

The answer to what our future workforce looks like will impact all four of WRA’s benefit pillars in dramatic ways. For example: Communication: The public perception of our industry is largely based on the perception of our workforce. This perception then drives state policies and weekly visits to your locale.

WRA’s Education Foundation and Business Development: Worker training and business support programs take years to develop and need to be relevant when unveiled.

Government Affairs: The WRA’s legislative approach and messages on everything from minimum wage, workers’ compensation, Unemployment Insurance, paid sick leave, immigration and future AHCA implementation depend on really understanding who our workforce is and where it is going.

The answer may not be apparent today, but as our workforce continues to change, we must be prepared to seek answers through 2014, in order to help you succeed in the decade to come.  July 2013 | 9

Seattle City Council passes background check ordinance, including majority of business community’s amendments

By Josh McDonald, WRA local government manager

Created a private right-of-action for any applicant who felt wronged by the hiring process

Required a lengthy form to be filled out every time an

employer went through the hiring process and denied a job to an applicant

Ordinance as passed by the City Council:

Allows a criminal background check to be done after

In June, the Seattle City Council debated various versions of an ordinance that would change how employers use background checks in the hiring process. The discussion has evolved over several months, starting with a committee hearing last September, when the original version surfaced.

At that time, The Seattle Chamber of Commerce joined the Seattle Restaurant Alliance (SRA) and many other industry organizations in asking the prime sponsor Councilman Bruce Harrell to consider a significant pause so the business community could engage in the discussion.

He agreed, and the WRA/SRA has been part of a coalition led by the Seattle Chamber in working with Councilman Harrell and the City over the past nine months on several amendments to make the legislation tenable for employers—or at the very least, have as few negative impacts as possible. Here is a comparison of the major points of where the legislation started, as well as where it stands as passed by the Council after much work by the business coalition.

First draft of ordinance:

Prohibited a criminal background check be done in

the hiring process until AFTER a conditional offer of employment took place Did not allow an job applicant to be denied a job solely on the basis of what was found in a criminal background check

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the first screening of applicants is complete (this prohibits the employer from being able to have a box to check on the application asking whether or not the applicant has been convicted of a felony) Allows an applicant to be denied a job solely on the basis of what was found in the background check if the employer, in a good faith effort, feels that hiring this person would will put the business and/or employees possibly in harm’s way

No longer contains a private right-of-action; all

complaints go through the Seattle Office of Civil Rights with the goal of a solution at the Hearing Examiner stage No longer requires a lengthy form to be filled out asking the employer to explain him/herself in why they did not hire the applicant Contains a six month check-in with the business community and proponents at the table to review how the new law is working. If it is not working well, Councilman Harrell has stated several times that he is prepared to make any further changes need so that this is a law that does not harm the business community.

The final version is by no means perfect, but it does reflect significant progress between the Seattle business community and the Seattle City Council in working together when these types of issues surface for debate.

The WRA is hopeful that this collaborative model, which was starkly different than the one used for the debate on mandatory paid sick leave in Seattle, continues to be the direction the City Council takes in future discussions around how to achieve a better Seattle.

If you have any questions or would like to talk further about this legislation, please contact Josh McDonald at joshm@warestaurant.org. 

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The most important sell: your staff

By David Faro, WRA contributing editor

I can remember

the first time that I was really well trained in a restaurant. I was still fairly young, and I had already held positions in number restaurants in major cities across North America. As long as I could walk and take orders, I felt that I had all the necessary skills needed to perform well for any employer.

My training at that point had mostly been defined by memorizing menus, along with quick reads through employee handbooks. I was a pleasant enough young man, always bringing a smile to the table. This, combined with my farm-bred work ethic, generally enabled me to find and hold on to a job for as long as I wanted to be there. I was really only an order taker at that point though; and it wasn’t until I moved to Washington state that I experienced a training regimen that took me to the next level—a program that provided me with an ethic that my career in hospitality has been built on for close to 20 years. What was special about this program? What did this restaurant do that others had not? This restaurant made me a believer.

There are number of ways that a restaurant can try to impart its concept and mission to its employees. Some are more effective than others. The way a restaurant goes about communicating its reason for existing can vary, but one important aspect must invariably be built into any effective training process. Restaurants must create a situation where, at the end of a new hire’s training, the

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employee is imbued with a sense of purpose. Your sense of purpose. The most effective employees are the ones who are sold on your concept, and it is up to you to sell it to them. Employees who believe in what you are doing, along with your personal ability to do it, are a key ingredient in making your restaurant the powerfully effective enterprise you hope it to be.

This was certainly the case with the restaurant in question.

How did they make me a believer? They let me experience directly, before anything else, what it felt like to be a guest at the restaurant. It was wonderful, and I have never forgotten that experience. As luck would have it, when I was hired, the company was opening a new state of the art store. The company was experiencing rapid growth, and this fresh venture was a foray into a new market. The stakes were certainly high, and the quality and expertise of their staff was soon to be under the close scrutiny of the surrounding community and the industry alike.

After being hired, I expected to be shuffled into a crowded break room, handed a pile of photocopied policies and then fill out tests for about a week. Instead, on my first day, I walked into the store with the rest of the new staff and I was ushered to a long table that spanned the whole dining room. We were asked to sit down and for the next few hours, the managers and executive chefs served the whole staff every single item on the menu. They

brought down servers from other stores, and the only thing that the trainers asked us to do that day was to eat their food and enjoy ourselves.

Hours later, when I left, I was already believer. I had not only watched my new general manager roll up her sleeves and clear plate after dirty plate of food from my table, but I had also been treated exactly like she hoped I would treat my new guests when I was on her floor. She demonstrated exquisite knowledge of the concept and food we would be serving. She led by example, and the experience made such a significant impression on me that it has informed how I have trained employees ever since. I look for ways to create believers, and then I go for it.

Ironically, years later, after expanding my career into global hospitality projects, I came back to Washington and worked as a manager for the very same company. Every time I hired a new server, I attempted to follow the same regime they had taught me decades earlier. The nervous new employee would come to their first day of work, and I would invite them into private dining room and ask them to sit down.

After that I would hand them a menu and ask them to order what looked best to them. I would usually pour a few glasses of wine for us to taste, making sure I asked them first what varietals they liked best. I always viewed these experiences as an opportunity to show a new employee my idea of what the best service on the planet looks and feels

like. I made every effort to make them feel special. Because truly, that is how I wanted my guests to feel. I wanted them to know intimately what it felt like to be the receiving end of terrific service. Usually the experience took a few hours, and when it was all over, I would say, “That was fun! See you tomorrow!” and leave. New employees often told me later that the experience seemed too good to be true, just as I had felt years earlier. Many of them said that it was that first meal that set the bar for them and explained clearly what our concept was about. As well as having fun, I was able to clearly define my expectations by example. I was able to create an immediate benchmark which I could reference if service standards became something we needed to talk about later on.

I have always believed that the first people to whom I needed to sell my concept to were the front line employees who were helping me to make it materialize every day.

The best way I have ever found to accomplish this, is to let them experience directly what makes my service special. I do this before I do anything else. Any managers who have ever worked with me have heard me say it over and over again, “The best way for us to make money, is to sell our employees first!” 

July 2013 | 13

Protect your business when hiring independent contractors

By Roseanne Collins, Washington State Department of Labor & Industries

When a local restaurant decided to open a new location, they hired what they thought to be a reputable general contractor to remodel the building. The general contractor was not set up to do business in Washington and hired unreported workers. In a routine audit, the Washington State Department of Labor & Industries found and determined that the restaurant owner served as the general contractor responsible for reporting worker hours and paying premiums for industrial insurance. The mistake cost the restaurant $14,000 in fines and back premiums.

All too often, Washington restaurants and other businesses get caught in this same dilemma when hiring independent and general contractors. As a restaurant operator, a little research can save you time and money.

Protecting your business when hiring independent contractors If you are hiring an independent or general contractor, make sure to comply with Washington state laws that outline responsible parties for covering industrial insurance premiums. Otherwise, the contractor may be seen as an employee of the restaurant.

Generally, if a general contractor brings their own employees or heavy equipment to your job site, you are exempt from covering their workers’ comp premiums.

But make sure the independent or general contractor is complying with state laws, otherwise your business could be responsible.

An independent contractor is a person that meets all six parts of the test below. A general contractor must meet the seven-part test.

As a restaurant owner or operator, ask yourself if the contractor: 1. Is free from your direction and control?

2. Do they: a. Perform a service that is outside the course of your business or, b. Perform the service away from all your business locations including all your job sites or, 14 | warestaurant.org

c. Provide a principal place of business from which they perform their services?

3. Do they: a. Customarily engage in their own business to provide the services that are performed under the contract or, b. Provide a principal place of business that qualifies for an IRS business deduction?

4. Are they required under IRS rules to file a business tax return with the IRS? 5. Do they have an active account with the Department of Revenue?

6. Do they maintain their own set of books and records showing business income and expenses?

7. If they need a contractor’s license to do the work, are they registered as contractors with Labor & Industries?

You can check if a general contractor is registered with L&I and paying premiums on their employees by going to www.

PremiumStatus.Lni.wa.gov.

Misclassifying workers as independent contractors If you determine you have accidentally misclassified an employee as an independent contractor, Labor & Industries will help you file workers’ compensation reports for the last four quarters, working with you to reduce penalty and interest charges.

If you have questions about correct reporting, or find that your contractors should have been reporting hours, please call L&I at 360.902.4599.

Fortunately for the restaurant that learned a $14,000 lesson about general contractors, business for the second location was good. When opening their next locations, the restaurant owners did their research and hired a licensed Washington state general contractor with an active Labor & Industries account.  To review the laws around independent and general contractors and reporting hours for workers’ comp insurance, go to www.

Lni.wa.gov and RCW 51.08.180, RCW 51.08.195 and RCW 51.08.181 for general contractors.

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Bully Free Zone

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Give bullies the boot

Don’t let a workplace antagonist poison your team.

By Heather Donahoe, managing editor

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ntimidation, antagonizing language, threats, belittling— most of your employees probably assume they left that nonsense behind in middle school. Unfortunately for them, and your business, workplace bullying can seep into any operation’s culture if deliberate policies aren’t established to foil the antics of disruptive employees.

The fallout from a bully can render heightened turnover, lowered morale and a compromised guest experience.

for [restaurant operators] to make a deliberate effort to establish a zero tolerance policy for bullying.”

So, what does workplace bullying look like? The word “bully” may mean something different to each of us, so it’s necessary to establish a definition of that word in the context of a workplace.

Here are a few examples:

That’s why it’s so important for operators to keep a close eye on the social dynamics of their staffs. In the fastpaced atmosphere of a restaurant, a bully’s agenda can quickly take root with a snide comment or a backhanded gesture here and there. According to Dr. Gary Namie, a social psychologist and founder of the Workplace Bullying Institute, restaurants can become a common breeding ground for bullies, on account of the competitive environment.

“The worst aspects of human nature will come out when people are hurried and stressed, and that’s the restaurant business,” Dr. Namie said. “That’s why it’s so important

Verbal abuse Gossiping Humiliation in front of colleagues and customers Intimidation Aggressive language Exclusion or social isolation Any situation that leaves an employee feeling threatened can amount to bullying. This type of environment in your restaurant can undermine your purpose—to create a welcoming ambiance for guests. Customers can sense tensions, alliances and conflicts among your staff, and let’s be honest—nobody likes feel caught in the middle of a clash. Would you return to a business where the hostility was palpable? Few people would.

Types of Bullies The Passive Aggressor This bully can be a clever one. Whether he’s stealing tables on the sly or passing out underhanded compliments, the Passive Aggressor can chip away at the collective confidence of your team.

Alan Carson, a veteran server at a popular Olympia restaurant, has spent years observing the formation of social hierarchies within restaurants and believes that bullies typically target co-workers they perceive as a threat.

The Aggressor There’s no guessing with this bully; he makes no bones about who he likes and who he doesn’t. He goes out of his way to make things uncomfortable for his target. Don’t let the Aggressor run off your best employees.

“If someone comes in showing lots of competence and promise in what they’re doing, that really awakens [a bully’s] insecurities, and they set out to make that person’s life miserable,” Carson said.

“Or, in other cases, you’ll see the best server on the floor unite servers against each other, in order to hold on to some sort of perceived power.”

The Gossip Not always recognized for what he is, this bully never misses an opportunity to spread (and embellish) the latest chatter from the host stand to the dish sink. Keep an eye on this one. Gossip can wreak havoc on any organization.

Namie agrees that high-performing employees often find themselves on the receiving end of a bully’s games.

The Alliance Builder This bully does the most damage by pitting groups of employees against each other. Watch out for cliques among servers and hosts, and try scheduling offenders on opposite shifts.

“The good employee is technically superior— they’re better liked, they’re secure and they’re confident in their skills,” Namie said. “Typically, the bully has none of those things going for

July 2013 | 17

himself, and he acts out of fear, envy and jealousy.”

Your staff should know that all interpersonal differences MUST be checked at the door, and likewise, employees must understand the consequences of failing to comply with your rules. Fortunately, there are some concrete steps you can take to make clear your stance on bullying. Here are a few steps for establishing guidelines.

1.) Make a deliberate statement that bullying will not be tolerated “Don’t go on autopilot and assume your staff knows better,” Dr. Namie said. “You have to establish a code of what is absolutely intolerable, and then you have to stick to it.”

2.) Make the consequences clear When someone is hired, make sure they understand that they will be held accountable for their adherence to your bullying policy, but don’t just do it verbally.

Have them sign an agreement, stating that they understand the company’s anti-bullying rules and the corresponding disciplinary action if those rules are ignored.

3.) You as a manager must model cooperative, collaborative and altruistic behavior. If you don’t want bullies in your restaurant, it’s important to ask yourself whether you’re modeling that preference. Are you a bully yourself? Do you play favorites with your employees? No matter how fair you believe yourself to be, a periodic gut check is a good idea. “Never intentionally or inadvertently do anything that pits worker against worker,” Namie said. “That doesn’t mean that there can’t be friendly competition among employees, but not to the extent that it creates a cutthroat, zero-sum game situation. Don’t play favorites or establish quotas that create enemies of co-workers and undermine collegiality.” 

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Sample Bullying Policy

Our company is committed to enforcing the requirements of law with respect to sexual harassment and bullying.

Sexual harassment consists of any verbal, non-verbal or physical conduct of a sexual nature that is unwanted or unwelcome. Bullying is being cruel or mean to others. Examples of conduct that may be considered inappropriate are: Verbal Any type of insult Sexual innuendo Suggestive comments Jokes of a sexual nature Direct threats Aggressive language Yelling Questions about a person’s sexuality Lewd comments Any type of insult Non Verbal Sexually suggestive objects, images or pictures Graphic commentaries or literature Leering or eying suggestively Obscene or threatening gestures Physical Unwanted physical contact Touching, pinching, or any type of fondling ‘Cornering’ another person Kissing Assault, battery Any employee who believes the actions or words of a fellow employee constitute sexual harassment or bullyism should report the incident to their immediate supervisor. If the harassment was committed by the supervisor it should be reported to the next level of management.

Appropriate disciplinary action will be taken against any employee that violates this policy or commits any acts of harassment of any form, whether sexual in nature or not. Based on the seriousness of the offense disciplinary measures may include verbal and written reprimand, suspension and termination.

--RestaurantSpeak.com

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July 2013 | 19

What is your EMF and how do you control it?

By Greg Kabacy, MBA

EMF may sound like a fancy technology out of a B-rated science fiction movie or the new signal your cell phone will pick up, but in Washington state workers’ compensation terms it stands for Experience Modification Factor (EMF). An EMF quite simply determines how expensive your workers’ compensation premiums will be for a given year.

It’s not uncommon for employers to believe their workers’ compensation premiums are just a tax that has to be paid each quarter. Employers can however take control of how much they pay the state if they understand and control their EMF. This number alone can show you if you’re paying too much or getting a discount on your workers’ compensation insurance.

To understand your EMF first you must understand rates.

Businesses in Washington state are assigned various workers’ compensation insurance risk classifications based on the type of work the business performs. So for example, construction companies pay higher rates than restaurants because the work in construction is more risky and claims cost more.

The Department of Labor and Industries (L&I) increases, and occasionally decreases these rates, which are then passed on to businesses to pay each year depending on how many employee hours a business reports. While some employers in Washington state are familiar with workers’ compensation rates, as they typically make the news, most employers are not familiar with the term ‘Experience Modification Factor’ (EMF) or even know that it can be controlled.

What is your Experience Modification Factor (EMF)?

Every year, L&I calculates a business’ EMF by looking at how much they think that business will pay in future claims costs, as compared to the specific industry benchmark. In other words, L&I looks at how much money has been spent on claims of the past and compares that to what they expect to spend based on the industry and the hours reported. If a company exceeds L&I’s expected costs, their EMF will increase. If that company controls workers compensation costs and they are lower than what L&I expected, their EMF will decrease.

A new business today, with no prior ownership history in Washington state, would begin with an EMF of 1.0. In simple math terms, that business would be paying the base rates that L&I has determined for that industry.

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If a business has a history of ownership in Washington state, L&I considers the claims that business has had in the furthest three of the past five years when determining that company’s EMF. For example, a company’s 2013 EMF is based off claims with a date of injury from July 1, 2008 through June 30, 2011.

The EMF is recalculated each year on June 1 for the following year.

What does your Experience Modification Factor (EMF) do?

Quite simply, Your EMF increases or decreases the amount of workers’ compensation premium you pay compared to your competitors. For instance, take two business owners, blocks away from each other, who work in the same industry. They could be paying drastically different amounts of L&I premium, based purely on differences in their EMF, which is influenced by the cost of the workers’ compensation claims they have.

How can a business control an EMF? Besides the obvious way of providing a safe working environment for employees and preventing claims from ever occurring, employers can influence their own EMF. Businesses that have a claim with no time loss paid by L&I will receive a credit specifically for that claim up to $2,400 that is used in the EMF calculation. But beware, because if even a dollar of time loss is expended on that claim, the credit disappears.

Employers can also earn a ‘Claims Free Discount.’ If an employer has three consecutive years without a claim that incurs any wage-replacement payments by L&I, or incurs any permanent partial disability (PPD) payments, the employer can achieve an artificially low EMF as a reward.

Finally, by maintaining an effective light duty program, employers can save money and replacement costs of staff when an injury prevents workers from performing their regular jobs.

So the next time you sit down to pay your premiums, the next time you witness an unsafe act, or are confronted with a claim that requires light duty, keep your EMF in mind, and understand that you can make a difference in what you pay the state for insurance. 

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Cooking oil recycling: an easy first step toward sustainability

By Rachel Shaver, Marketing Manager, SeQuential Pacific Biodiesel

In today’s political and economic climate, consumers are more frequently demanding sustainable business practices from the restaurants they frequent. Unfortunately, implementing sustainability programs can be a costly endeavor. Recycling is often a simple place to start. In particular, recycling cooking oil into biodiesel can pay multiple dividends by benefitting the environment, the local economy and, in turn, your business.

Best of all, cooking oil recycling is practically effortless to put in place and can be done at virtually no cost.

Cooking oil that has been used in deep fryers and other common cooking methods is an excellent source material for biodiesel, a cleaner burning alternative to petroleum diesel fuel that offers striking environmental benefits.

Made either from recycled oils and fats or from oil-bearing plants, biodiesel is a non-toxic, high quality fuel that produces up to 78% fewer carbon dioxide emissions than traditional diesel.

Companies like Pacific Northwestbased SeQuential Pacific Biodiesel work with thousands of restaurants and businesses in the region to recycle cooking oil for this purpose. In fact, our partner restaurants in Washington state have joined with us to recycle more than 1.6 million gallons of cooking oil—enough to produce nearly 1.5 million gallons of biodiesel and offset 24 million pounds of carbon. To have the same impact, you’d have to replace more than 29,000 incandescent light bulbs with compact fluorescents, or plant 8,000 trees.

In addition to benefitting the environment by offsetting petroleum and reducing carbon emissions, recycling cooking oil into biodiesel can have a significant positive impact on the local economy. Alternative fuel is a rapidly growing industry in the Pacific Northwest, leading to an influx of jobs in the region. SeQuential Pacific, for example, employs about 90 people, with more than 30 of those jobs located in Washington.

The SeQuential Pacific plant is currently producing 6 million gallons of biodiesel a year and expects to see continued growth. Much of that growth can be directly attributed to an uptick in partner restaurants. As more restaurants recycle their oil, we’re able to increase our production and maintain our current growth rate.

Job creation isn’t the only economic benefit of producing biodiesel from recycled cooking oil. As the alternative fuels industry grows and the market for biodiesel increases, local 22 | warestaurant.org

retailers that sell biodiesel benefit from increased business.

Thirty retailers in Oregon and Washington currently sell fuel made by SeQuential Pacific Biodiesel. Because that fuel is made locally and sourced from oil recycled from local businesses, patrons of those retailers can rest assured that their dollars are truly having a local impact. Recycling your oil, then, directly contributes to this local cycle of sustainability.

So how can restaurants implement cooking oil recycling and take advantage of the marketable sustainability advantages it provides? It’s actually very simple and requires little to no effort on the part of restaurant owners.

Disposal of fats, oils and greases in the restaurant industry is already heavily regulated. Most cities enforce strict disposal codes designed to keep these materials out of the sewer system. As a result, you most likely are already contracting with a vendor to collect and haul away your used oil. Most vendors will even provide you with rebates for the oil they collect from your establishment. Any vendor you work with will provide a container and a collection schedule. All you and your employees are responsible for is placing the used oil in the container.

It’s important to note, however, that not all vendors recycle the oil they collect. Used cooking oil, or yellow grease, as it’s known in the material collection industry, is used to make a variety of disposable products. It is also frequently shipped overseas to be used in things like pet food and cosmetics. None of these uses are regarded as a highly sustainable practice. To truly reap the environmental benefits of cooking oil recycling, you’ll want to be sure to select a vendor that is using the oil for biodiesel production, either directly or through partnership with a third party.

Choosing to recycle your oil into environmentally friendly biodiesel is an easy way to get started down the path of sustainability. It costs nothing to implement and requires minimal effort on your part, while allowing you to make truly sustainable contributions to the economy and the environment.  Headquartered in Salem, Ore, SeQuential Pacific Biodiesel partners with thousands of restaurants throughout the Pacific Northwest to recycle used cooking oil into clean burning biodiesel fuel. For more information on cooking oil recycling, visit www.sqpbiodiesel.com, or call 800.447.3794.

What does philanthropy mean to you?

By Lyle Hildahl, director of the WRA Education Foundation

When people think about philanthropy, images of extravagant fundraisers, large foundations and substantial endowments often come to mind. Although philanthropy often expresses the benevolence and good intentions of successful corporations, the lion’s share of the American philanthropic spirit is voiced through the generosity of citizens and small businesses who want to give back. In 2012, the largest source of charitable giving came from individuals.

Nearly 88 percent of households in America provided donations to services and causes that they considered important. Although the current economic climate has recently challenged people’s ability to give, statistics show that Americans still consider nonprofits as a vitally important sector of the American economic landscape.

The Washington Restaurant Association Education Foundation (WRA EF) is a dynamic part of the hospitality equation in Washington state. The EF bridges solutions for the growth of the hospitality industry through training and education. The Foundation also plays an integral role in the future of the state’s restaurant industry by developing and supporting culinary arts and hospitality management training in 50 high schools in Washington. At the same time, the EF works tirelessly to meet the educational needs of restaurateurs across the state through alcohol and food rules training for their staff. In return, the Foundation needs your support.

The WRA EF needs individuals and small businesses to make the choice to give back and participate in fundraising initiatives while also providing direct donations. Without the active involvement of industry members like you, the Foundation’s ability to thrive and make a difference becomes challenged. In turn, vital programs like ProStart, which directs and prepares youth for successful careers in the hospitality industry, become tested. Supporting the Education Foundation allows you to have a hand in preparing the young men and women who will populate your workforce in just a few short years. Your support allows the Foundation to pursue the best training options in the nation and bring them directly to Washington. For almost a decade, Washington schools have shown to be some of the strongest contenders at national culinary competitions, while at the same time winning many other accolades and awards.

This is a direct result of the efforts of the EF, which now needs your help to keep these programs alive.

The good news is that there are plenty of easy and mutually beneficial ways you can help keep the EF working hard for the industry. Currently the Foundation is selling raffle tickets for a 2008 Shelby Mustang for $75. By purchasing a ticket, not only do you get a chance to win a classic American car, but you’ll be supporting culinary students throughout Washington. Contact the WRA to find out how we can get your ticket to you. We also ask that you promote this raffle in all of your locations as well as encouraging the sale of multiple tickets throughout your own local networks.

Another way you can support the Foundation is by participating in the Golf FORE! Education tournament on August 6 at the Washington National Golf Club. Consider sponsoring a hole on the course or entering a team. Your participation in this year’s tournament will go a long way toward sustaining the future of this industry for years to come.

Your options don’t end there, though. Supporting the Foundation can be as simple as directing your employees to the Education EF’s training programs. Actively promoting ServSafe Alcohol, Serve Safe Manager and the Foundation’s Hospitality Industry Workplace Safety program achieves two objectives simultaneously. On one hand, you are enthusiastically supporting the Foundation; on the other hand, you are receiving the best and most complete training programs available in the nation. It’s a win for both you and the EF, and we sincerely ask you for your continued use and support of these programs.

The restaurant industry is the largest employer in Washington and, as such, the Education Foundation’s ability to serve you, our members, has a crucial effect on many people throughout the state. Help us to continue helping you, and consider buying a ticket, playing a round of golf and promoting the Foundation’s programs. Contact the Washington Restaurant Association’s Education Foundation today, and ask how you can make a difference.  To find out more about the Washington State Education Foundation please visit us on the web at http://warestaurant.org/trainingeducation or contact jenniferd@warestaurant.org.

July 2013 | 23

Golf FORE! Education August 6, 2013

Washington National Golf Club in Auburn

Help sustain the future of our industry by supporting culinary students’ programs and scholarships at our annual golf tournament!

Register your foursome today online at wra.cc/fore2013

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* New or renewing members are eligible when they sign up and are approved for a merchant payment processing account by 12/31/13 with First Data. Offer subject to change without notice. Some restrictions and limitations may apply. First Data will directly pay WRA the $250 towards membership. If you are an existing member and have already renewed, the $250 can be applied to next year’s dues payment upon verification. Other fees may apply. Offer may be extended, modified or discontinued at any time without notice. © 2013 First Data Corporation. All rights reserved. All trademarks, service marks and trade names referenced in this material are the property of their respective owners.

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ServSafe® Manager, Tacoma

Aug. 6

ServSafe® Manager, Seattle

Aug. 19

ServSafe® Manager, Everett

Aug. 29

ServSafe® Manager, Olympia

Meetings July 16

Finance Committee Meeting

July 22

EF Summer Board of Director’s Meeting

July 2324

WRA Summer Board of Director’s Meeting

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Retro Meeting

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Retro Investment Meeting

Aug. 13

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August 7

Seattle Restaurant Alliance Social (All Members)

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Ask the Expert | Restaurant Profit Coach

Four ways restaurants lose money but don’t have to

By Rick Braa, CHAE

Q: I’m losing money and I’ve been trying as hard as I can but I know I need to stop what we’re doing and reinvest/rebrand, we’re just not going to make it as is.

What mistakes can I avoid this time around?

A:

Restaurants lose money for a variety of reasons. At the core are improper financial fundamentals. Here are four areas in which restaurants fail and that you must improve to be profitable this time around:

Lack of Proper Funding—Cash poor companies are

poor companies. In cases where there is less than two weeks of sales in the bank to begin the week, decisions are made for the short run and activities managing cash distract from the core of hospitality. Rather than devising plans to drive sales and service, many operators spend time off the floor worrying about how to make ends meet and cover expenses. Unfortunately, too many operators use other people’s money to fund the daily activities of their businesses. Look at one key ratio on your balance sheet. Are current assets (those that can be converted to cash within one year) in excess of current liabilities (those that need to be paid within one year)? If not, the business is surviving on other people’s money. Too often, when current liabilities exceed current assets the ability to negotiate evaporates. Being in the position of indebtedness to vendors and employees is a position of weakness and not strength. Build the discipline of putting money aside each week and start with two weeks of working capital in the bank.

Investing too much for the concept—According to Department of Revenue statistics an operator in Washington has a 97% chance of having annual sales of less than $2.5 million and 85% chance of having annual sales of less than $1.0 million. Yet many operators will spend as much opening or reopening as the restaurant will generate sales in a year. The proper ratio, sales to investment, is 3:1 meaning that $3 of sales are generated for every $1 spent on construction, FF&E, and opening costs. To put this in perspective, if a space requires $1 million to build out and open, $3 million in sales should be generated. Using this ratio allows the operator to recover the initial investment in about 3 years and enjoy great returns for the remainder of tenancy. Most operators have a ratio of about 1:1 and with a projected 10% or less profit per year the operator won’t return the investment until well into maturity of the business. Spend as little as you can to open the restaurant to keep this ratio in line.

30 | warestaurant.org

Lack of Proper Information—A recent survey of

financial professionals reported only 28% of 300 surveyed said they trust reported numbers. What is telling of this survey is it was done with finance professionals. Only 15% of the “lower level” professionals believe their numbers are accurate.

The risk of inaccurate financial data can lead to poor decision making. It’s important to have the right data that is accurate, relevant, and timely. You can have all the data in the world but if it’s not accurate and there are no double checks by qualified professionals, proper decision is made by luck. Better business information management includes efficient, optimized practices combined with excellent industry tools. Best practices in information generation allows better decision making. Surround yourself with qualified financial professionals and get the information and systems necessary for driving financial results.

Lack of Financial Discipline—As time goes by operators lose nickels, dimes and quarters leading to dollars through lack of study and financial discipline.

What is missing is a financial planning session each month and proper goal setting to create focus and drive necessary results. Each period sit down for an hour, at least, per location. Study the data and walk through the P&L line by line with your team. Identify three to five things on which to focus. Be honest and keep the sacred cows front and center and slaughter them when needed. Ask whether something is being done just because you always have or whether change would better serve the restaurant and enhance or not take away from the guest experience. Clarify and communicate expected financial results and work together to achieve them.

Losing money is unsustainable and unnecessary. As you rebuild your restaurant be sure to keep financial ratios and discipline front and center and you will reap a great return to catapult you into the future.  For a more information on improving profitability and driving sales, contact AMP Services at rbraa@ampservices.com. Rick Braa is the co-founder of AMP Services, an accounting and consulting firm specializing in helping companies grow profitability.

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