The Front Burner November/December

The official news magazine of the Washington Restaurant Association | November/December 2010

E

ngaging your staff for

HOLIDAY SUCCESS

November & December Issue

Special Holiday

Issue Year-end tax

MUSTS

Meet the RESTAURANT

Profit Coach

WRA unveils UPDATED WEBSITE

2010 Election Improves the Business Environment

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and

Inside

www.WRAhome.com

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Features

Other stories

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WRA unveils updated website We’ve revamped WRAhome.com to give you easier access to the tools you need to run your business successfully.

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HELP WANTED: ACCOUNTANT LEGISLATORS

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2010 election improves the business environment This month’s election proved right time for several businessfriendly candidates in Washington state. Find out what we can expect from the newly elected, moving forward.

You could be a 2011 Restaurant Neighbor Award Winner

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Culinary Nutrition News

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The parking lot rule can be slippery

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Calendar

Year-end tax MUSTS When it comes to year-end tax planning, find out what’s new and what you need to know to reduce your federal income taxes.

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New Members

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Marketplace

PASS IT ON

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PASS IT ON

PASS IT ON

Meet the Restaurant Profit Coach Establish a solid tip reporting system in your restaurant.

Rick Braa, a member of the WRA Consulting Network, is now the Restaurant Profit Coach and will be checking in monthly to answer your questions.

This article is worth sharing with your managers, chefs, bartenders or other restaurant staff.

On the cover

Employees at Ivar’s Salmon House in Seattle engage with Executive Chef Jason 16 Bray, discussing new menu items and what makes them unique. This type of training is always important, especially 14 when it comes to making 8 a great impression on your holiday guests.

Anthony Anton, Publisher Camille St. Onge, Editor

PASS IT ON

Heather Donahoe, Assistant Editor Lisa Ellefson, Graphic Designer

The Front Burner is published monthly for Association members. We welcome your comments and suggestions. email: news@WRAhome.com, phone: 800.225.7166.

Readership: 6,310.

The opinions expressed within the contributed articles are those of the writers and do not necessarily reflect the views and opinions of the Washington Restaurant Association.

The official news magazine of the Washington Restaurant Association | November/December 2010

E

ngaging your staff for

HOLIDAY SUCCESS

November & December Issue

Special Holiday

Issue Year-end tax

MUSTS

Meet the RESTAURANT

10

Profit Coach

WRA unveils UPDATED WEBSITE

6

2010 Election Improves the Business Environment

November/December 2010 | 3

Industry Outlook | WRA President & CEO

HELP WANTED: ACCOUNTANT LEGISLATORS

Every business

has varied skill sets that are needed to make their mission achievable. The Legislature is no different. In fact, when done right and balanced appropriately it is the best example of how teams of very unique concerned citizens can combine skill sets and passions to create results no one thought possible.

And there are moments in time where, while all views and skill sets are valued, particular members of the team need to step out and step up to carry the day.

After the powerful message from voters on Election Day, clearly one predominant skill is needed—accounting. The Legislature badly needs a handful of CPA’s to emerge from their midst and rip open their business suits to unveil superhero costumes underneath.

Voters in Washington didn’t universally “throw out” the incumbents, a la 1994. Nor did voters universally reject members of a particular party like they did in 2008. By rejecting initiatives 1082 and 1100, they didn’t universally demand less and smaller government. They were mixed on those political hopefuls who vocally opposed and those who were staunch supporters of health care reform. The one absolute truism that Washington voters seemed to live by in 2010 was “GOVERNMENT: IT IS TIME YOU LIVE WITHIN YOUR BUDGET!!”

Voters absolutely trounced an income tax politically targeted at the wealthy at a level that surprised both opponents and supporters of Initiative 1098. The most liberal please-taxme districts in the state supported Initiative 1053, which demands that the two-thirds of the Legislature reach agreement on any tax increase. And voters rallied to reject a tax on candy, soda and bottled water. In areas across the state, incumbents viewed as supportive or compliant with the budget that the Legislature passed in 2008 were sent a clear message of discontent.

Legislative leadership had best be looking at every colleague’s resumé for anyone who took a 200 level

4 | www.WRAhome.com

Anthony Anton, president and CEO

accounting course or higher in college because the voters are expecting some budget skills.

Look at the following factors and it becomes a downright mystery why any legislator would want to run for this office unless they thought financial audits equaled “party!” The 2008-09 Legislature probably wrote a budget that banked on one-time cuts, an improved economy, millions in federal bailout dollars and voter sympathy on initiatives. None of the latter happened, leaving the budget hole for the upcoming biennium pushing $5 billion. Then voters significantly narrowed Democratic majority and implemented Initiative 1053 which makes any tax increases incredibly unlikely.

The only path left for the Legislature is to sharpen pencils and go line-by-line through each state agency and prioritize, reduce expense, force efficiencies and probably cut. This Legislature is going to have to cut whole state programs because they will be unable to reduce expenses enough without crippling the objectives of different agencies.

I know, many of you are reading this and screaming, “What is the big deal?! I do that every week in my business!” Well, you have likely done it every week in your business because it meant survival. This year will be the first time a Legislature in three decades has been faced with that kind of brutal reality.

This is probably why on Election Night, when Gov. Gregoire was interviewed about the message of the voters and the grim budget situation, she simply said, “The message I heard, and I hope my colleagues in the Legislature heard it as well, is no revenue and an all-cuts budget.”

The tone is set. This Legislature will not be about new ideas or exciting new programs. The only measure of success the voters expect and the situation demands is for the legislature to make the tough choices and live within their means.

Looks like this year’s most popular fashion accessories in Olympia will be a pocket calculator and a red pencil.

Don’t wait!

Call 866.941.1477 or visit WRAhome.com/endorsedpartners to take advantage of this offer!

100 free

promotional gift cards and 100 free holiday card carriers!

Increase your customer base this holiday season with a complete gift marketing program. Turn gift cards into powerful marketing tools that increase revenue.

Washington Restaurant Association Cost-Saving Programs Career Center Affiniscape Check Management Heartland Payment Systems

Food Worker Certification WRA Education Foundation

Credit Card Processing Heartland Payment Systems

Health Care Hospitality Industry Health Insurance Trust (H.I.H.I.T.) Strata

Email Marketing Solutions Fishbowl

Property and Casualty Insurance Balcos Insurance

Employee Background Check Airfactz Screening and Reporting Services

Mandatory Alcohol Server Training WRA Education Foundation

Music Licensing BMI Music Licensing SESAC Music Licensing Payroll Processing Heartland Payment Systems Retro Program WRA Retro Program ServSafeÂŽ WRA Education Foundation Unemployment Cost Control TALX

Primary Source of Information | Improved Website

WRAhome.com gets a new look, members get more functionality

PASS IT ON

By Camille St. Onge

The

Washington Restaurant Association recently launched a new version of their website that provides up-to-date news impacting the restaurant industry and a myriad of tools to help members be successful. The new website offers members resources that help them improve their bottom line, save time and stay informed.

federal agencies and the National Restaurant Association to ensure policy changes impacting restaurants are included in the featured news feed. Plus, the latest edition and past issues of The Front Burner, the official news magazine for the WRA, are now available online.

The WRA strives to be the primary source of information for restaurant members in Washington.

“When we were developing the new website we carefully considered which tools members needed easy access to in order to be successful,” said Anthony Anton, WRA president and CEO. “The restaurant business is incredibly labor intensive, so we wanted to lighten the burden of staying on top of legislative news impacting restaurants and provide resources that improve their profit margins.”

For several years, the WRA has been publishing articles pertinent to owning and operating a restaurant. The Resources section the site catalogs these articles by topic and allows members to access the archives whenever needed. The Handbook for Excellent Restaurant Operations Manual (HERO Manual) is now also available online.

Mini home pages

One main new feature of WRAhome.com is a series of minihome pages for the Association’s key services and products. The development of these sections allows members to easily see the most current information and news in government affairs, cost-saving programs, training and education, restaurant resources and industry news.

Restaurant industry news

A daily feed of industry news from around Washington, and select national outlets, feeds onto the WRAhome.com home page. Additionally, the WRA works with state agencies, key 6 | www.WRAhome.com

Resources

Other tools and resources on WRAhome.com include:

Industry research and reports Food safety signs IRS small business tax center links Government contacts Improved online training tools

Although most professionals in the restaurant industry prefer to do business one-on-one, accessing some services online can certainly be a time-saver for busy restaurateurs. As the leading solutions provider for training and development, the WRA Education Foundation has enhanced its online store which provides foodservice training materials throughout Washington. The Education Foundation also is working closely with the Washington State Liquor Control Board to bring mandatory alcohol server training online with ServSafe Alcohol™ and expects that in the first quarter of 2011 restaurant employees can obtain and renew their alcohol server permit online.

Visit WRAhome.com to check out all the great information and resources available to you.

Are you the face of the American Dream?

Share your story with the National Restaurant Association for your chance to win

Apply today! www.restaurant.org/diversity

Lower Your Workers’ Comp Rates t Save money on your Workers’ Compensation costs t Have 24/7 access to FREE customizable online safety training The WRA provides you with the necessary tools and support to close claims and bring people back to work quickly.

Start taking advantage

WRA’s Retro benefits today! of

Visit www.WRAhome.com/Retro, or call Jill Brady at 800.225.7166, ext.134.

POLITICAL REPRESENTATION 8 | www.WRAhome.com

2010 Election Improves

By Bruce Beckett, WRA Director of Government Affairs

Washington’s

“vote by mail” system is wonderful for voters and for the electoral process by ensuring maximum availability for citizens to cast their ballots. However, it is terribly frustrating for those who try to summarize results quickly. Why? Because it can take weeks for ballots to be received and results of close races to be determined. Unfortunately, at the deadline for this edition of The Front Burner, the outcomes of more than a dozen races in the Legislature are still unknown.

But some aspects of this election are very clear. Washington voters sent a clear message that they expect state leaders to resolve the fiscal challenges in the state by “living within our means.” The voters overwhelmingly repealed new taxes, rejected an income tax and reinstated the super-majority requirements for passing new or increased taxes.

I-1053, which reinstates the requirement for a two-thirds majority vote by the Legislature to pass new or increased taxes, is passing with a 65% margin

I-1098, which would authorize an income tax for high earners, is being defeated with a 66% vote

I-1107, which repeals new taxes on soda, water and other food products, is passing with a 63% margin

Additionally, voters are overwhelmingly rejecting Referendum 52, which would have diverted tax revenue and increased the debt limit to fund retrofits for schools

Voters also overwhelmingly rejected I-1082, which would have allowed private insurers to offer workers’ compensation coverage in Washington state. Workers’ compensation is a terribly complex issue, and voters proved unwilling to change the current model without compelling reasons to do so.

Legislature The WRA entered the election cycle with one objective in mind—to improve the climate for business in the Legislature. There are many pro-business leaders on both sides of the aisle, but the current make-up of the Legislature has proven difficult in these challenging fiscal times. The early results show that the WRA’s objectives have been achieved. In the State Senate, Republicans picked up at least four seats. Three seats were still undecided at the time of this publication; however, in two of those races, both candidates have proven favorable to business. Accordingly, businesses will have a very different, and positive, ability to work with both sides of the aisle on our core issues.

It appears that between four and 10 seats could change hands in the House of Representatives. It’s interesting that the anti-incumbent wave that swept much of the country did not really materialize in races for seats in the State House. But the changes will vastly improve the ability of business to work on core issues in the House.

the Business Environment Liquor privatization – the debate has just begun Unfortunately, I-1100, which was actively supported by the WRA, is failing by about two percentage points.

Significantly, I-1105, which the WRA opposed, is failing by a 2:1 margin. Although failing at the ballot box is a disappointment, the results bode well for continuing public debate over the role of the state in sale and distribution of spirits, and the current regulatory environment for beer and wine distribution.

Despite more than $9 million spent to oppose I-1100,

approximately 48% of the voters support change. The problems surfaced by the opposition campaign can be easily remedied New alliances have been formed with retailers, wineries and craft breweries The WRA showed its ability to organize for effective grassroots campaigning The debate will continue. Lawmakers cannot ignore the plea from every newspaper in the state to change the system, and the vote was too close to call it a “mandate.”

Local The voter wave of rejecting tax measures didn’t stop at the state level. King County, known historically for looking favorably on taxes as long as they are used for the right purposes, soundly rejected a 2-cent sales tax increase to fund public safety with roughly 55% of the King County voters saying “no.” Increasing the sales tax obligation has been and will continue to be a concern for the WRA as it becomes another cost increase on our customers who are already cutting back their discretionary spending in this type of economy.

Our gratitude The WRA government affairs team would like to extend our thanks and appreciation to our members for the ongoing support to the WRA PAC, and for the wisdom and guidance provided to our team each and every day.

The WRA’s efforts during this election succeeded because of outstanding support for the WRA PAC, and because of the involvement of members in the Government Affairs Committee. Thank you.

We look forward to carrying this issue forward, and believe that the work on I-1100 set the stage for interesting debate in the Legislature and, perhaps again, with the voters next year.

Federal Incumbent Senator Patty Murray (D) won re-election by a very narrow margin over Dino Rossi (R).

In the 2nd Congressional District, incumbent Rep. Rick Larsen (Dem) and challenger John Koster (R) are locked in a virtual tie (at publication time). This race may require a re-count of ballots.

In Washington’s 3rd Congressional District, State Representative Jamie Herrera (R) defeated Denny Heck (D) to replace retiring Rep. Brian Baird (D).

In all other Congressional districts, incumbents easily won re-election.

November/December 2010 | 9

WRA Consulting Network | Year-end tax tips

Consider both

2011 & FEDERAL

2010 when planning for your 2010

INCOME

TAXES

By Richard Finafrock, CPA, CHAE

The recent passage of the Small Business Jobs Act of 2010 has provided a few opportunities for reducing your federal income taxes for 2010. However, with various changes coming for 2011, new challenges exist in considering what steps to take by the end of 2010. With less than three months left until the end of 2010, consideration should be given to both 2010 and 2011 when deciding what tax-saving decisions to make by year end.

10 | www.WRAhome.com

1. If you are considering purchasing new furniture, fixtures and equipment (FF&E) or performing an upgrade or remodel to your restaurant, doing so before year-end could significantly reduce your 2010 income taxes.

With some limitations, the cost of FF&E can be expensed in the year purchased, even if you purchase them on credit. In addition, 50% of the cost of any building improvements or remodeling made by year end can be expensed in 2010. This is true whether you own or lease your restaurant location. Also, if you’re limited in the amount of FF&E you can expense for the year, up to 50% of the cost can be expensed under this rule instead.

2. If you’ve started a new business, up to the first $10,000 of start-up expenses are deductible in 2010. If you’ve yet to open for business, doing so by December 31 will allow you to claim such expenses in 2010, as well as being allowed to claim expenses for the purchase of FF&E and building improvements as mentioned above.

3. New for 2010, is the ability for self-employed individuals to deduct the cost of health insurance premiums when calculating their self-employment taxes. Prior to 2010, health insurance premiums paid by self-employed individuals were deductible for income tax purposes, but not for purposes of calculating self-employment taxes.

4. A number of “taxpayer friendly” provisions enacted back in 2001 are scheduled to expire at the end of 2010. As a result, most taxpayers will face increased income taxes in 2011. Some of the changes you should be aware of when planning for 2010 are: The deduction for purchasing new FF&E (described above), will be substantially reduced in 2011.

The tax rates in effect for 2010 are 10, 15, 25, 28, 33 and 35%. Beginning in 2011, the 10 tax rate disappears, and a new top rate of 39.6% is added. The tax rates scheduled to be in effect in 2011 are 15, 28, 31, 36 and 39.6%.

Beginning in 2011, high income earners (single individuals with earned income above $200,000, and couples above $250,000) will be subject to an additional 0.9 % Medicare tax, and potentially an additional 3.8% Medicare tax on their net investment income.

The limitation on itemized deductions is

reinstated back to levels that existed back in 1991, as adjusted for inflation. Many taxpayers will not be able to fully deduct their itemized deductions, resulting in higher taxable income and income tax.

For those married taxpayers who don’t itemize, the standard deduction will be reduced in 2011. This brings back the so-called “marriage penalty” that existed in prior years. A marriage penalty exists when the combined tax of a married couple exceeds what they would pay if they were single and filed separately.

The deduction for personal exemptions will also be reduced or eliminated for certain highincome taxpayers.

The impact of the Alternative Minimum Tax (AMT) will be felt by many more taxpayers.

Various “AMT patches” or fixes enacted in recent years to eliminate the additional tax for many taxpayers, goes away. As a result, many taxpayers will be paying AMT beginning in 2011.

The favorable tax rate of 15% on long-term capital gains ends after 2010, and is replaced by a tax rate of 20%.

Though discussions are underway in Congress to reduce the impact of impending changes for 2011, most taxpayers will be faced with increased income taxes next year. As a result, carefully consider your income tax situation for both 2010 and 2011 before undertaking any “tax saving” moves for 2010. Though delaying tax deductions into 2011 may result in higher taxes for 2010, those deductions may provide a larger tax savings next year.

Richard Finafrock is part of the WRA Consulting Network and a principal and senior tax manager with the Certified Public Accounting firm of Clothier & Head P.S. He is a member of their Hospitality Services Group. Get a FREE 30-minute consultation with him by calling the WRA Consulting Network at 800.225.7166.

ANY TAX ADVICE IN THIS ARTICLE IS NOT INTENDED TO BE A “COVERED OPINION” AS DESCRIBED UNDER IRS CIRCULAR 230. IT IS THEREFORE NOT INTENDED TO BE USED, AND CANNOT BE USED, BY ANY PERSON OR ENTITY FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER. November/December 2010 | 11

Industry Awards | Restaurant Neighbor Award

You could be a 2011 Restaurant Neighbor Award Winner Be rewarded for your community philanthropy

Is your restaurant one of the 90 percent of those doing charitable work in their community? Maybe your restaurant hosts an annual fundraiser to benefit disabled children. Or perhaps you coordinate a toy drive to make a needy child’s Christmas special, or mentor young people in your restaurant. Tell us how your restaurant gives back and you could be eligible to win $5,000!

Each year, the National Restaurant Association and American Express award $5,000 each to four restaurants— one small business, one mid-size business, one large business/national chain and one humanitarian of the year—through its Restaurant Neighbor Award, an awards program that recognizes outstanding community service efforts among our nation’s restaurants. American Express is the award’s founding partner.

The Washington Restaurant Association will choose state winners to compete for the national award. Once selected, all state winners receive a plaque to display in their restaurant and are profiled on the National Restaurant Association website dedicated to community service case studies.

12 | www.WRAhome.com

DEADLINE is Jan. 11

In addition to the grand prize of $5,000 to help their favorite charity or community project, national winners receive an all-expenses-paid trip to Washington, DC where they will attend the award gala awards dinner at the National Restaurant Association Public Affairs Conference in March 2011.

To apply for the award or to nominate a restaurateur who is actively involved in his or her community, go to www.restaurant.org/community. For more information, please contact Alyssa Prince at aprince@restaurant.org or 202.973.3679. The deadline to apply for the award is January 11, 2011.

Five Tips for Submitting a Great Application A panel of judges will review your application for consideration for the Restaurant Neighbor Award and the $5,000 award. How can you get your application to stand out among the hundreds submitted? Follow these tips below:

1. Tell a story. Use personal stories or connections about the work with the community and the people helped. Tell us what motivated you and your team to get involved in the project. (e.g., a sick child in your community, an employee’s personal commitment, etc.) or tell about a problem your restaurant is helping to address.

2. Provide tangible results. Give specifics about how much money was raised or how many volunteer hours were spent working on your project. Explain how the money raised (directly or indirectly) is helping others and how the project has grown over the years.

3. Focus on one project. Concentrate your application on one specific community outreach project, rather than providing a “laundry list” of your philanthropy over the years.

4. Include news stories and letters of support.

Newspaper articles and letters of support from the people you have helped can be an effective tool for telling your story.

5. Less is more. Include only materials that are relevant to the application and to your community-outreach project.

2011 National Restaurant Association

Restaurant Neighbor Award Doing great work in your community?

Now get paid for it ‌

WIN $5,000!

November/December 2010 | 13

Industry Expert | Your questions answered

Ask the Restaurant Profit Coach Q:

I’m nervous about tip reporting in my restaurant. I don’t know a lot about it but I hear I can get into financial trouble if my employees are not reporting all their tips. What should I do?

The alternatives to EmTRAC are TRAC and TRDA. Yes, I just hit you with three abbreviations. Sorry, but bear with me. It’ll be worth it!

In general the benefits of entering into an EmTRAC agreement are:

A:

Tip reporting is a hot topic for the IRS. That’s not good news if you have a business with 10 or more tip-eligible employees and no tip reporting process in place. Reporting 100% of earned tips to the IRS is the law. Unfortunately, directly and indirectly tipped employees don’t always declare 100% of their tips. When it comes to a solution the options are simple: 1. Do your own thing, and wait for the IRS to audit 2. Enroll with the IRS in a tip compliance program Option #1 is not recommended.

If the IRS audits your business and finds that 100% of tip income is not being reported, the IRS may perform a “sweeping” analysis and apply the under-reported percentage to sales in the current year plus the last three years. For example, if sales are $1million per year and the credit card tip percentage is 15%, the IRS can reasonably assert that employees earn tips of $150,000 per year (they may give you a slight reduction for the percentage tipped on cash sales). If you are 50% of the way through your current fiscal year, the liability may be calculated as tax due on $525,000 ($150,000 x 3.5 years) of tips. Assuming your employees have only reported tips at 10%, then they have reported $350,000 of tips ($100,000 x 3.5 years). The difference of $175,000 may be assessed at the FICA rate of 7.65% to equal $13,388 ($175,000*7.65%).

You can likely double that number for interest and penalties.

The problem is that tax is due regardless of whether your employees are reporting tips. It’s the employer’s responsibility to ensure that 100% of tips earned are reported.

The IRS will conduct employee-first audits, thus avoiding

sweeping assessments that can be applied to the business as a whole According to the IRS: “Participation assures the employer that prior periods will not be examined as long as participants comply with the requirements under the agreement” You can end the agreement at any time and for any entity The IRS developed the EmTRAC Agreement program in response to those who expressed an interest in designing their own TRAC programs.

EmTRAC Agreements are available to employers whose employees receive both cash and charged tips. Make sure you follow many of the guidelines of a traditional TRAC agreement:

Establish an educational program that trains employees

that the law requires them to report all their cash and charged tips to their employer On a quarterly basis, educate and reeducate all directly and indirectly-tipped employees and new hires of their requirement to report all tips to their employer Establish a procedure where both directly and indirectly tipped employees can report their tips Establish a procedure where a directly tipped employee is provided (no less than monthly) a written statement of all tips attributed to the employee Implement a procedure for the employees to verify or correct any statement of attributed tips

Example

Sales per Year

IRS Audit

$1,000,000 15%

$150,000

3.5

$525,000

Actual Reporting $1,000,000 10%

$100,000

3.5

$350,000

Tip Amount of Years Rate % Tips per Year looking Total Tips

Difference $175,000 FICA Rate 7.65% You can find the IRS Tip Reporting programs at: http://tinyurl.com/IRStipreporting I recommend development and deployment of an EmployerDesigned Tip Reporting Alternative Commitment (EmTRAC).

Choosing to ignore tip reporting requirements can be a recipe for financial disaster. Protect yourself by learning more and implementing a legitimate tip reporting program.

Got a question about your restaurant operation? Ask Rick Braa, the WRA’s Restaurant Profit Coach, at rbraa@braaconsulting.com. Questions will be selected and featured monthly in The Front Burner.

FICA Amount Due (add penalties and interest) $13,388

14 | www.WRAhome.com

PASS IT ON

Coming in 2011!

Guess what?

Soon you’ll be able to kick back and get your alcohol server permit online.

It’s almost here!

You’ve been asking for this and we are delivering. Mandatory Alcohol Server Training is going online soon. Visit WRAhome.com/training to learn more about this new online training option.

Successful SEASONAL

Photo by Lisa Ellefson The staff at Ivar’s Salmon House get up to date on holiday offerings for customers.

16 | www.WRAhome.com

It’s nearly mid-November, and you’ve probably already booked the bulk of your holiday parties. The next few weeks will be a flurry of big groups, crowded waiting areas and larger than normal guest checks. You’ll start to see your customer volume rise with office gatherings, family reunions and gift exchanges, and ensuring you have sufficient staffing to handle the holiday influx is imperative to running a smooth operation during one of your busiest times of the year. Don’t find yourself understaffed and overworked this season. Lining up and training a strong staff now can help alleviate stress, diminish mishaps and set you up for success into the new year.

STAFFING made simple Jim Sullivan, of Sullivision Restaurant Training and Profitability Solutions, offers some great advice about recruiting, training and retaining your seasonal staff.

Market the openings, don’t just “post” them.

Get job postings listed at local high school and college job boards, job fairs, senior centers and Craigslist.

Promote seasonal jobs to your customers—or their family members or friends—in your restaurant, e-newsletter or packaging materials.

Get the word out to your vendors, delivery people, postal employees and UPS drivers. Don’t overlook the most obvious potential referral source of all: current employees. Accentuate the positive.

“Highlight the advantages of working for your company or at that particular restaurant and define what makes you stand out as the employer of choice,” says Patrick Yearout, director of recruiting and training for Seattlebased Ivar’s Restaurants. “It could be the location, perks, working conditions, co-workers or even the customers. The key is to stand out, not blend in, so that prospective applicants choose to apply at your establishment over other places.”

Don’t shortcut the hiring process.

Follow all applicable federal and state hiring regulations and restrictions for seasonal employees, especially related to hours worked and equipment handled. Don’t rush the screening and hiring process if it means compromising your standards, values or culture.

training and orientation process.”

“Hiring people without the necessary skills and qualifications to be successful in your business will only hurt you when you’re forced to recruit, hire and train other employees later in the season because the under-qualified ones didn’t work out,” Yearout says. “If you aren’t getting quality applicants, then refine or expand your recruiting efforts or borrow employees from other locations until you do find them.”

Flexibility is key. If you target high school or college students for your seasonal positions, you may need to accommodate their desire for a job with the reality that it’s their vacation time, too. This means being flexible with your—and their—schedule whenever possible.

There is no right way to develop the wrong person.

No train, no gain. Don’t let seasonal workers “practice” on your customers because you hurried orientation or development.

“We never hire for ‘just a seasonal job’,” said Charlie Zoller, Ivar’s full service training manager. “When you’re hired, you’re part of the team— everyone goes through the same

Thorough orientation separates high performers from low; and it’s better to find out during training that someone is unqualified. Finally, invest as much time in your company’s culture, mission and values training as you do to for your skills training.

Stay in touch and re-recruit during every shift. The best way to find good seasonal help this year is to retain the good seasonal help you had last year. Consider re-allocating some of your seasonal recruiting budget into incentives for returning workers. Stay in touch with high performers throughout the year via email, postcards or social-media sites.

Ivar’s recommends sending personal notes, birthday cards, the company newsletter, signing them up for your company’s Facebook page, tweeting them with company updates and inviting them to company holiday parties. Make them feel part of the

November/December 2010 | 17

Photo by Lisa Ellefson Staff at Ivar’s Salmon House in Seattle sample new menu items during a staff meeting.

team. But the most effective retention tool of all may be how well the seasonal team member is respected and treated during their stay.

“The manager can’t let the stress of busy days affect their attitude and treatment of employees,” Yearout says.

“They must bring positive energy and appreciation to the restaurant every day and create a fun, team-oriented and involved workplace. If the staff looks back fondly on their summer job, then it will be no problem getting them to come back next year.”

Cast a wider net. The restaurant industry is hardly unique in terms of needing or hiring seasonal employees to handle a traditionally busy peak period. Consider the ski industry, cruise lines, landscaping companies, amusement parks and even your local shopping mall. Search the Web for best practices from these seasonal recruiting veterans and adapt the best ideas to your company.

18 | www.WRAhome.com

ProStart students bring training and ambition to your restaurant Remember your first job? For most people that first experience in the workforce was in a restaurant. Now think about this… what if you could offer someone their first job in your restaurant BUT they already received training for the restaurant and hospitality industry. Great, right?

ProStart students receive career-based training for the foodservice industry.

ProStart, created by the National Restaurant Association and implemented locally by the WRA Education Foundation, provides academic and workplace experiences. Students receive classroom training and enter into paid internships with industry professionals.

“The holiday season is a great time to introduce a ProStart student to your operation,” said Lyle Hildahl, WRA Education Foundation director. “These are students with a working knowledge of the industry—students who are actually interested in advancing in this line of work. It just makes sense to help nurture those aspirations.”

Interested in hiring a ProStart student to help you through the holiday season and beyond? Email us at prostart@wrahome.com and we’ll work out connecting you with a potential new employee in your area.

Content from Jim Sullivan was originally published in Nation’s Restaurant News magazine and is reprinted here with permission.

S

tretch Your Healthcare BeneďŹ ts

without Stretching Your Wallet Strata Limited Benefit Health Plan offers employees flexible healthcare coverage without costing the employer.

Strata Plan is an affordable limited benefit health insurance* program that WRA members can offer to full or part time employees. Strata offers an extensive network of physicians and is available to employees with pre-existing conditions and there are no exclusions for smokers.

Enrollees can be covered for the cost of a month of daily lattĂŠs.

For more information or to sign up contact your local area coordinator at www.WRAhome.com/healthcare * Limited Benefit Health Insurance is not basic health insurance or major medical coverage and is not designed as a substitute for basic health insurance of major medical coverage.

Benefits may vary from state to state. The policies contain reductions, limitations, exclusions and termination provisions. Full details of the coverage are contained in each policy. If there are any conflicts between this document and each Policy, the Policy (series N20000 through N20010) shall govern. Not all coverages are available in every state. Limited Benefit Health Insurance is underwritten by National Fire Insurance Company of Pittsburgh, Pa. with its principal place of business in New York, NY.

Education & Training | Culinary Techniques

PASS IT ON

Culinar y Nutrition News: Organic, Natural, Local and Sustainable: Trends or Mainstays?

Provided through a partnership between ACFEF Chef & Child Foundation and Clemson University, and sponsored by French's Foodservice.

By Margaret D. Condrasky, RD, CCE

More

10 trends

top

than 1,800 chefs ranked

nearly 215 food and beverage items, preparation methods and culinary themes in the National Restaurant Association's What’s Hot in 2010 survey. Local and sustainable foods, as well as nutrition, were confirmed as some of the year’s

1

Locally grown produce

6

Nutritionally balanced children’s dishes

hottest menu trends.

There is a movement for chefs to use more organic, natural, local or sustainable foods.

2

Locally sourced meats and seafood

7

Half-portions/ smaller portions for a smaller price

Although these terms are being tossed around in every avenue of the food world, many people are still in the dark about what these words really imply about food products, be it good, bad or neither. While

3

Sustainability

8

Farm/estatebranded ingredients

9

Gluten-free/ food-allergy consciousness

there can be some overlap among them, each of these terms carries a distinctly different connotation. For instance, a food can be locally produced but not organic,

4

Bite-size/mini desserts

and a food that is considered “natural” does not mean it’s organic or local.

Understanding this verbiage will benefit your restaurant and customers and your own health.

5

Locally produced wine and beer

10

Sustainable seafood

C o nve n t i o n a l fa r m i n g v s . o rg a n i c fa r m i n g While the common assumption is that conventional farming using pesticides is dangerous and organic farming is safe, there are pros and cons to both. However, the fight over what is safer and better for us and the environment is an ongoing battle with both sides taking firm stances.

Pesticides used in food production are

believed to help ensure a safe and adequate

their effects on non-targeted organisms

food supply and make foods more stable

such as humans, wildlife and other

on the shelf and available at a reasonable

beneficial organisms in the environment.

cost. In fact, many farmers claim that without them it would be impossible to stay

The alternative, organic farming, stresses

in business because they would lose too

the use of renewable resources, such as

much of their crop to make a profit. While

crop rotation, green manure, compost,

chemical pesticides are needed to destroy

biological pest control, and mechanical

pests, there is also some concern about

cultivation and the conservation of w w w. a c f c h e f s. o rg

regulates the production and labeling of organic foods. According to these rules, a food product cannot be labeled “organic” unless its production meets strict standards. For labeling purposes, organic food manufacturers can use the circular Avocado, pineapple and mango have thicker skins, which help protect against pesticide build-up.

soil and water to enhance the quality

growth hormones and other genetic

of the environment. Organic foods are

scientific alterations that are used to

produced without the use of antibiotics,

process many of our foods today by eating

hormones, synthetic fertilizers and

organic foods? Most consumers believe that

pesticides, genetic improvements or

organic food is fully organic, no exceptions,

spoilage-inhibiting radiation. They are

otherwise it wouldn’t be organic, right?

considered healthier because they are

Well, not quite. There are four degrees of

processed without artificial ingredients,

labeling organic foods: 100 percent organic,

preservatives or irradiation. They are

organic, made with organic ingredients and

considered environmentally friendly

containing organic ingredients.

because soil is maintained naturally with composted plant and animal waste, using

Several lists have emerged that specify

crop rotation to reduce plant and animal

certain foods that are more susceptible as

pests and to maintain soil health. Although

well as less susceptible to pesticide residue

organic farming techniques can benefit

build-up to help consumers identify which

the environment, crop yields are typically

foods may be worth buying organic. For

lower than those possible using non-organic

instance, certain foods have thicker skins

techniques. Lower crop yields paired with

(avocado, pineapple, mango, watermelon)

the laborious and time-intensive systems

which protect them against pesticide build-

used by organic farms lead to more

up. Other foods don’t have as many pest

expensive products. Therefore, consumers

threats and, therefore, require less use of

must decide if the potential benefits of the

pesticides, such as onions, broccoli and

products are worth the extra cost.

asparagus. On the flip side, foods that have little to no protective skin (bell peppers

O rg a n i c

and celery) or those that are plagued with

There has been an increase of 20 percent

a variety of pests (apples, nectarines,

in organic consumption every year for approximately a decade. Although

Behind the label

produced foods benefits human health

The Organic Foods Production Act and

production does benefit families, farm

Organic food is produced by farmers who emphasize the use of renewable resources and the conservation of soil and water to enhance environmental quality for future generations. Organic meat, poultry, eggs and dairy products come from animals that are given no antibiotics or growth hormones. Organic food is produced without using most conventional pesticides; fertilizers made with synthetic ingredients or sewage sludge; bioengineering; or ionizing radiation. Before a product can be labeled "organic," a Government-approved certifier inspects the farm where the food is grown to make sure the farmer is following all the rules necessary to meet USDA Organic standards. Companies that handle or process organic food before it gets to your local supermarket or restaurant must be certified, too.

Program (www.ams. usda.gov/AMSv1.0/

studies that debate the actual health

nop) help customers

benefits of eating organic foods, our society

by providing clear

the precise benefits that eating organically

defines organic as follows:

the National Organic

workers and our environment. Even with

is still “eating up” the trend. It is unclear of

The USDA National Organic Program

peaches) are treated with more pesticides.

whether or not consuming organically is controversial, it is evident that its

USDA Organic symbol on the package.

label requirements for food products that bear

provides, but there is one thing we can be

the U.S. Department of Agriculture (USDA)

sure of — we can have confidence in the

Organic seal. There are a variety of organic

quality of the organic foods we are eating.

options available, from fresh produce and

The question that we face is: Are we truly

meats to processed dairy products and

escaping synthetic pesticides, fertilizers,

cereals. To protect consumers, the USDA

To read "Culinary Nutrition News: Organic, Natural and Sustainable" in its entirety, visit www.acfchefs.org/CNN. These free monthly culinary nutrition articles are provided in partnership by the American Culinary Federation Chef & Child Foundation and Clemson University, and sponsored

by French's Foodservice.

w w w. a c f c h e f s. o rg

Cost Saving Programs | Retro

THE PARKING LOT RULE CAN BE

slippery PASS IT ON

Do you know how the Department of Labor & Industries charges claims against your workers’ compensation account?

By Karen Galipeau Forner, K-Solutions Law

It’s a rainy Friday afternoon. Your evening shift servers hurry across the parking lot to get out of the rain and prepare for a busy night at your restaurant. Suddenly one of your best servers slips on the slick pavement and breaks her ankle. From a personal point of view, you feel really bad about it and of course you hope she gets well soon; she’s a great server and it will be hard to find someone to fill her shoes.

From a business point of view though, you may be breathing a sigh of relief. At least the state won’t charge a claim against your workers’ compensation account. As a well-informed restaurant owner, you know that parking lot injuries are exempt from workers’ compensation coverage under the state’s Industrial Insurance Act, RCW 51.08.13(1), which states in relevant part: “Acting in the course of employment’ means the worker acting in the furtherance of his or her employer’s business which shall include time spent going to and from work on the jobsite… insofar as such time is immediate to the actual time that the worker is engaged in the work process in areas controlled by his or her employer, except parking area.”

It couldn’t be any clearer, right? If your employee is injured while she was in the parking lot going to or from work, workers’ compensation doesn’t apply, right? Wrong. The law can be almost as slippery as the parking lot. Several exceptions to the parking lot rule exist and if one of them applies to your particular situation, the state will charge a claim against your workers’ compensation account. Here 22 | www.WRAhome.com

are some basic exceptions where the parking lot rule doesn’t apply: 1. The parking lot is also a jobsite. A parking lot may be a jobsite if the parking area is used regularly by the employer as an area for doing work 2. The parking lot is used mainly for storage space although it was originally used as a parking lot— even if it is still marked as a parking lot 3. The employee is performing a business-related duty while in the parking lot, i.e. stacking pallets or unloading a delivery truck 4. The parking lot is being used as an employee holding area during an event such as a chemical spill or a fire 5. The employee is in the parking lot while engaged in an activity covered by the personal comfort doctrine: taking a break, getting a drink, or using the restroom Lunch break exception: If your employee was on her lunch break while in the parking lot, the parking lot rule applies. A lunch break is not within the course of employment 6. If the employee is using a stairway in the parking facility while on the way to the jobsite 7. If the employee is crossing an area that is owned or controlled by the employer but is not used as a parking area, i.e. a grassy slope 8. If the employee is crossing an area not owned or controlled by the employer because it is the only practical route from the parking lot to the jobsite, and the area contains hazards

P 9. If the employee is crossing a road that is not merely used for access to the parking lot but also for business related reasons, i.e. it’s used by delivery trucks 10. If the employee must park in an employerdesignated area and the employee is subject to disciplinary action for non-compliance.

11. If the employee is on call and assigned a company vehicle and is required to drive it home Nothing is as straightforward as it seems when it comes to the parking lot rule. If a parking lot injury occurs at your business, be sure to get all the facts in writing quickly.

Include details such as:

Why was the employee in the parking lot?

Where was the employee going to or coming from?

What was the specific time and location of the

Don’t make comments about the incident to any employees

Finally, don’t hesitate to call an attorney early on in the process. An attorney’s expertise will help you navigate the complexities of the parking lot rule, and could save your business thousands of dollars.

Karen Galipeau Forner is the managing attorney at K-Solutions Law in Bellevue, focusing her practice on workers’ compensation, WISHA, diversity/harassment training and employment law. She can be reached at 425.644.6142, kforner@K-SolutionsLaw.com, or at www.K-SolutionsLaw.com.

The WRA Retro program rewards employers for maintaining a safe workplace and controlling workers’ comp claims costs. In addition to professional claims management services, participants also have access to a wealth of safety training tools, including new hire safety orientation, accident reporting procedures, guidelines for performing a safety inspection and much, much more. Find out if you qualify for Retro — visit www.WRAhome.com/retro or call Jill Brady at 800.225.7166, ext. 134.

accident?

How did the injury occur?

Other recommended best practices include:

Ask the injured employee to write her own detailed statement

Ask any supervisors and co-workers who may be witnesses to write detailed statements

Don’t argue about the incident with the injured employee

November/December 2010 | 23

Join the revolution … and discover how you can improve your restaurant.

The National Restaurant Association, Council of State Restaurant Associations, 40 state restaurant associations — including the Washington Restaurant Association — and Heartland Payment Systems® have joined forces to upgrade the crucial business services of every restaurateur. Full Course Business SolutionsSM — an exclusively endorsed suite of payments products and services — does just that, helping you reduce expenses, enhance operations and increase profitability. Our offering will grow as the industry — and your needs — evolve.

Full Course Business Solutions Card Processing • Gift Marketing • Payroll Services • Check Management To learn more about how this movement can help revolutionize your restaurant, visit GoFullCourse.com and call 866.941.1HPS (1477) x150. © Copyright 2010 National Restaurant Association. All rights reserved. © 2010 Heartland Payment Systems, Inc.

Raise the Bar in 2011!

Multiple Exciting Show Features Including: s s s s s s

Exhibit hall featuring 450+ vendor booths.

Alcoholic Beverage Tasting Pavilion & Beverage Stage.

Chef Stage with emphasis on beer, wine & spirits as ingredients.

Gadget Garden showcase of new culinary technology & tools.

New Product Showcase for new & soon-to-be-released products.

Virtual Trade Show pre-show exposure through our website.

Reserve booth space now for optimal placement and to take advantage of all pre-show marketing opportunities! Sponsorships available!

Contact the show office: 800.645.7350, or 503.582.9482, or email: info@nwfoodserviceshow.com Attendee registration opens January 1, 2011.

April 3-4, 2011 Oregon Convention Center Portland, OR nwfoodserviceshow.com Produced By:

Visit www.WRAhome.com/calendar for a full list of events.

INDUSTRY CALENDAR Training | Meetings | Events

November & December

SAVE THE DATE! Hill Climb January 24, 2011

Events November 3

Webinar: Probable legislative changes to unemployment documentation November 3 Seattle Restaurant Alliance Member Meeting November 9 SW Chapter Meeting: Marketing and Sales Seminar November 13 Spokane Cork & Keg Festival

Training November November November November December

2 15 17 18 7

ServSafe速, Seattle ServSafe速, Everett Train the Trainer, Auburn ServSafe速, Tacoma ServSafe速, Seattle

Meetings November November November November November November December December

2 9 9 9 10 16 1 14

Executive Committee Meeting Spokane Chapter Meeting Retro Investment Committee Meeting Retro Trustees Meeting Member Services Sub-Committee Meeting Government Affairs Committee Meeting Seattle Restaurant Alliance Meeting Spokane Chapter Board Meeting

26 | www.WRAhome.com

Visit www.WRAhome.com/calendar for a full list of events.

Got a tax question?

Call WRA the

Consulting

Network 800.225.7166

GET A from our

succession

planning

FREE 30-Minute

expert Consultation

Gerry Adams...

is a CPA and WRA Consulting Network consultant. He has 30 years of experience with the hospitality and food service industry in all aspects of business planning, taxation and assurance work. Contact the WRA Consulting Network at 800.225.7166 for a free 30-minute evaluation with Gerry.

Visit www.WRAhome.com to learn more about the 17 FREE consulting services for members.

Welcome New Members America’s Diner, Aberdeen, Edmonds, Olympia, Spanaway

Kozue Japanese Restaurant, Seattle Kristo’s Bistro, Seattle

Anglea’s Restaurant, Tacoma Krystos Restaurant LLC, Seattle Asanova LLC, Seattle Azteca Dona Margarita & Don Polo Inc., Seattle

Lady Luck’s Cowgirl Up Steakhouse & Saloon, Tacoma Lecosho, Seattle

Azteca JFR, Inc., Seattle Lincoln Square Cinemas, Bellevue Azteca Pepe’s AR, Inc., Seattle Main Event Sports Grill, Vancouver Azteca Sonia’s, Inc., Seattle Makoto Japanese Buffet, Vancouver Bandolero, Seattle Mama Stortinis Restaurant Kent, Kent Beyond the Bridge Cafe, Tacoma MBH Holdings, LLC, Vancouver Bucksnort Pub, LLC, Morton Mitzel’s American Kitchen, Kent Buffalo Wild Wings, Vancouver Burger Claim, Grand Mound

Northwest Food Management Group Inc., Bellevue

Celtic Bayou, Inc., Bothell

NW Caesars 1, LLC, Lakewood

Costas Opa, Seattle

Pacific NW Best Fish Co., Ridgefield

Crows Nest Drive-In, Montesano

Papa Pete’s Pizza, Longview

Dairy Queen, Camas

Picolinos, Seattle

Denny’s, Kenmore

Prospectors Bar & Grill, Spokane

Dimitriou’s Jazz Alley, Seattle

Robb’s 125th Street Grill, Seattle

Drift On Inn Roadhouse Casino, Shoreline

Rock Box, Seattle Rusty Roof Burgers & Shakes, Spokane

EJ Roberts Mansion, Spokane San Juan Lanes, Anacortes ETD Bells, LLC, Vancouver Scooters Bar and Grill, Kelso Flying Goat, The, Spokane Small Faces CDC, Seattle Harrison Christian Management, LLC, Morton

Suni’s Pizza & Burgers, Shoreline

Irwin’s Inc., Seattle

Tamura Sushi Kappo, Seattle

Java and Clay Cafe, Gig Harbor

Vintage Cafe, Everett Windmill Bistro, Sumner

28 | www.WRAhome.com

Welcome Allied Members Bob Oates Sewer Rooter Bob Oates 922 N.W. 50th St. #1 Seattle, WA 98107-3655 206.789.7944 bob@boboates.com www.boboates.com Plumbing and sewer cleaning. Chef’s Club Special Offer: 10% off NetWaiter, LLC Jared Shimoff PO Box 2084 Redlands, CA 92373-0661 866.638.9248 jshimoff@netwaiter.com www.netwaiter.com Increase revenue with NetWaiter, the premier online ordering and marketing system, by allowing customers to conveniently order takeout and delivery from your website. Build customer satisfaction and loyalty, increase ticket size, get more online exposure, and 25% Discount on Custom Setup Visit www.NetWaiter.com, or call 866.638.9248 Urbanspoon Gretchen Fowler 1335 N. Northlake Way, Ste. 101 Seattle, WA 98103-8959 2065682482 gretchen@urbanspoon.com www.urbanspoon.com Urbanspoon is a leading online and mobile restaurant guide. Chef’s Club Special Offer: 90 day free trial for Rez or RezBook.

Choices H.I.H.I.T. understands that choices are as important as affordability.

Did you know...

You can choose your own doctor.

Keep an existing relationship and continue to use your existing doctor or choose from over 17,000 physicians statewide and over 5,000 dental providers statewide.

H.I.H.I.T. is the plan of choice when it comes to offering benefits and options to the hospitality industry.

Enroll in a health care plan today. Call Pam Moynahan toll free at 877.892.9203.

Need server sales training?

We’ve got it on WRATV. Need to reduce operational costs?

Check out WRATV. Need a big holiday cocktail seller?

Get ideas at WRATV. Washington’s very own restaurant industry video-sharing website.

WRATV.com

Marketplace BUSINESS FOR SALE

SELLING OR BUYING?

Drive-in restaurant in Columbia Basin, very successful & well established. Picnic area outside and large seating capacity inside. Excellent location. Stable client base with year round revenue. RV parking and excellent highway access. Great opportunity for business investment. 1.509.662.9602.

Thinking about selling or buying an existing restaurant, or adding a new location? Call Allan Boden, Sunbelt restaurant specialist at 206.229.4717, or email a.boden@sunbeltnetwork.com. Sunbelt has been serving clients since 1982 with offices nationwide. www.sunbeltseattle.com

Have You Ever Considered Buying or Selling a Restaurant?

PROFESSIONAL SELLER REPRESENTATION BY IBA

Get a FREE business evaluation and consultation today. Buyers and sellers are waiting to hear from YOU. Call Steve Hynds today at 425.343.2500, or shynds@balcosbusinessbrokers.com. www.stevehynds.com

Thinking of selling a restaurant or food & hospitality related manufacturing, distribution, or service company? We have completed over 4000 transactions since 1975. Please contact us at (425) 454-3052 or by email at info@ibainc.com for additional information.

All conversations held in strict confidence. www.ibainc.com SERVSAFE®

The WRA Education Foundation holds ServSafe food safety courses throughout Washington. Visit www.wrahome.com/training-education/training-schedule/ for schedule information. Fee is $125 for members and includes the text, class and exam.

November/December Chef’s Club Bevinco Seattle

Tim Arnot 506 N. 143rd St. Seattle, WA 98133-6834 206.569.8121 t.arnot@bevinco.com www.bevinco.com

Chef’s Club Special Offer: Bevinco system set-up fee waived

Our job is to uncover hidden losses for bar owners due to such things as over-pouring and lost sales. Our weekly reports help bar owners hold their staff more accountable by providing them with business intelligence on their operation’s efficiency. With this information, our clients are able to reduce pour costs by 2 to 4 points and increase profits by up to 15% on weekly sales.

30 | www.WRAhome.com

Bob Oates Sewer Rooter Bob Oates 922 N.W. 50th St. #1 Seattle, WA 98107-3655 206.789.7944 www.boboates.com bob@boboates.com

Plumbing and sewer cleaning.

Chef’s Club Special Offer: 10% off

Are you the face of the American Dream?

Share your story with the National Restaurant Association for your chance to win

Apply today! www.restaurant.org/diversity Deadline: December 17, 2010

You want to be known for fabulous dinners.

Perfect.

Be seen and known.

Update your profile on Washington’s favorite dining guide.

dineNW.com We’re looking for member chef profiles, events and recipes. Contact us at dinenw@wrahome.com to schedule an interview today.

PRSRT STD US POSTAGE PAID OLYMPIA, WA PERMIT NO 668