The Front Burner February 2011 by Washington Hospitality Magazine

The official news magazine of the Washington Restaurant Association | February 2011

The Front Burner

TRAINING A WORKFORCE

TO BE RECKONED WITH

Measuring the

value of mentoring

L&I: A partner,

not an adversary

Engaged guests spend more,

plain and simple

in your business?

PRSRT STD US POSTAGE PAID OLYMPIA, WA PERMIT NO 668

Time to buy, sell or stay

2011 BOYD COFFEE PROSTART INVITATIONAL

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March 19, 2011 | Mirabeau Park Hotel & Convention Center Contribute to a scholarship today! Visit WRAhome.com/scholarships

Dick Boyd Boyd Coffee For the past 10 years, Boyd Coffee has supported the ProStart Invitational in Washington. Without Boyd’s support, many aspiring young culinary artists and hospitality managers wouldn’t have had this remarkable launch pad for a successful career.

Inside

www.WRAhome.com

Features

Other stories

Mirror, mirror on the wall, is it me or the economy?

News briefs

Member engagement aids legislative success

Employee screening practices under new scrutiny

Unemployment benefits for voluntary quits?

Calendar

New members

Still not sold on the Northwest Foodservice Show?

12 PASS IT ON

18 PASS IT ON

PASS IT ON

Time to buy, sell or stay in your business? Tom O’Brien, of the WRA’s Consulting Network, examines the opportunities available and the pros and cons of each. Build sales by engaging your guests Increasing sales isn’t just a numbers game. It requires frontline work from a well-trained staff. Is your team ready for engagement? L&I: A partner, not an adversary Over the years, the WRA and the Department of Labor & Industries have negotiated a productive working relationship that ultimately benefits Washington restaurants. Find out where we’ve been and where we’re going. Measuring the value of mentoring Participating in the ProStart mentor program gives you the opportunity shape the culinary and restaurant management talent of tomorrow.

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

On the cover

As the largest private industry in Washington state, the strength of the hospitality sector’s workforce is paramount. Find out what tool you can use to ensure the quality of your own workforce.

The official news magazine of the Washington Restaurant Association | February 2011

18 12

The Front Burner

TRAINING A WORKFORCE

PASS IT ON

Anthony Anton, Publisher Heather Donahoe, Managing Editor Lex Nepomuceno, Editor Lisa Ellefson, Art Director Camille St. Onge, Contributing Editor 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.

TO BE RECKONED WITH

Measuring the

value of mentoring

L&I: A partner,

not an adversary

Engaged guests spend more,

plain and simple

Time to buy, sell or stay

in your business?

10 February 2011 | 3

Industry Outlook | WRA President & CEO

Mirror, mirror on the wall, is it me or the economy? After more than two years of hearing the majority of operators express concern with falling customer counts, increasing customer price sensitivity and survival anxiety, it was pretty nice this post-holiday season to have the majority of operator comments transition to a slightly more positive vibe. So I was caught off guard a little when I was with my family at one of our favorite restaurants, where the owner came over and said how disappointing and brutal the holiday season had been. After a brief tirade she said, “Well, what are you going to do? It’s the economy.” Had it been early in the meal and my two boys not completely lost their ability to sit still, I would have probed further and asked questions, but after an awkward pause I said something stupid like, “Keep up the fight” and started trying to get a coat on a wiggly four year old. But for the past several days I have been replaying the conversation in my head and realizing that there is a trap out there that could snag many in our industry. What if it is not the economy, what if it is you? A two year recession is so rare and so long that it is easy to see where complacency and even resignation could grab otherwise sharp brains. My warning to the industry is that you really need to be in touch with what is going on around you in the next six months. For two years you have been rightly able to say, “Well, it’s not me; it’s the economy.” So you have managed your labor and food costs, created targeted value specials and lengthened your happy hour; but I know from conversations with many of you that you’ve been reluctant to take a hard look at your brand, your marketing or your place within the dining-out market in your community. I implore you to create your own “market-check system” to answer the question, “Is it me or the economy?” for the next several months. All of you have great relationships with your suppliers; be more aggressive in your interrogation of what is going on with them and their territory. What are they seeing? What are the other customers in your price range and seeing? Who is the hottest restaurant in your price range and market? Are there resources in your area you could use to get a read on what’s going on? Hell, if nothing else my dad used to jump in the car and tour parking lots in the area. But I asked the experts in the WRA’s Consulting Network their thoughts. 4 | www.WRAhome.com

PASS IT ON Anthony Anton, president and CEO

“The best check is a two-step process: Can you state your brand and your identity as a restaurant, in three words or less. If you can’t it’s you, end of story. I can tell you that the majority of operators I talk too fail the first test. The second step is can your staff when asked the same question, repeat essentially the same words or ideas. If not, IT IS REALLY you.” --Arnold Shain, WRA Consulting Network, Restaurant Group, Inc. “If you are not driving guest counts, it is always you regardless of outside factors like economy. Look at your plan to drive guest counts this month or quarter. If you don’t have one or you placed it on a shelf and didn’t execute it, the mirror will reflect an ugly image of your business.” –Rick Braa, WRA Consulting Network, Braa Associates “Because it can be difficult to conduct an honest evaluation yourself, contact a professional outside day-to-day operations to give you a fresh perspective and insight. If you are a WRA member, you have access to 30 minutes of free consulting each month. Use your free resources to help evaluate what might be holding back your business from recovery.” – Lori Randall, WRA Consulting Network, Randall PR Lori’s right, but the call to the Consulting Network shouldn’t stop with the “what if” question it will likely be accompanied by the “what now” question. What if you discover it really is you and not the economy? Lucky for you, we have several of the best restaurant consultants in the state available to you for free to discuss what you need to be doing now to make sure your restaurant is positioned the best it can be. But please use this resource. I am reminded of a classic joke. A one-hundred year flood hits a small community and the local priest scrambles to the top of his roof for safety. As the joke progresses, the priest declines rescue offers from a canoe, a powerboat and a helicopter, insisting that the good Lord will save and protect him. Later that night the water washes the priest away, and in heaven he implores God, “Dear Lord, why did you forsake me?” To which God says, “What are you talking about?! I sent you rescuers in a canoe, a powerboat and a helicopter!” Please don’t be lulled out of business. The WRA wants to see you succeed and is sending you a whole fleet of free consultants to help you through this rough patch. This is an offer you definitely shouldn’t decline.

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Primary Source of Information | News Briefs Hill Climb brings flurry of meetings and legislative engagement Despite challenges with the economy, nearly 200 WRA members took time from their busy schedules to partake in the 2011 Hill Climb. The event was a smashing success earlier this week with more than 100 meetings between lawmakers and restaurant operators from across Washington. Afterwards, politicos and industry professionals mixed and mingled at the fabulous Taste Our Best legislative reception, showcasing the state’s best food, wine and beer. For more information and a photo gallery, check out www.wrahome.com/hillclimb. 1099 Update: Obama, Congress to make 1099 repeal a top priority In his State of the Union address, President Obama addressed the 1099 controversy, “We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.” Additionally, there has been a bipartisan effort in Congress to pass legislation that would repeal Section 9006 of last year’s health care law. Unless a repeal is passed, that section of the law will require companies starting in 2012 to file 1099 forms with the IRS reporting all transactions for goods and services valued over $600. $5.9 million in WRA Retro refunds for members! Some 1,720 WRA members received a great holiday gift in the form of a Retro refund check. Currently, $5.9 million has been refunded to WRA members committed to making their workplaces safer for employees. Teran Petrina, WRA vice president of internal operations, explained that the WRA’s data and automation processes have improved steadily over the past five years, streamlining Retro redistribution. The WRA’s Retro program has grown to be the third largest in the state, helping numerous member participants to realize savings on their workers’ compensation premiums. For more information, go to www.wrahome.com/wise-buy/retro/. Six Washington ProStart students awarded national scholarship Several Washington state ProStart students have been awarded National Restaurant Association Education Foundation scholarships! The WRA Education Foundation couldn’t be prouder of this accomplishment from our future industry leaders, who were awarded $15,000 collectively to further their culinary arts education. Congratulations to these students and their teachers for their hard work. We wish them the best! Scam alert! Fake restaurant inspector scam returns Operators from around Washington state have received threatening telephone calls from people falsely claiming to represent their local Health Departments. Health Departments are responsible for health and food safety inspections of food establishments in the area. Typically, the caller requested personal information and home phone numbers of key personnel at the restaurant. Fraudulent telephone calls should be reported to the Federal Trade Commission: 877.382.4357, or www.ftc.gov/bcp/edu/microsites/phonefraud/index.shtml.

6 | www.WRAhome.com

L&I temporarily suspends restaurant inspections The Department of Labor and Industries has agreed to temporarily suspend restaurants from safety inspections (with the exception of businesses that had an incident, or a complaint filed). The WRA is actively engaged with the department in developing materials for industry outreach and education. Earlier in 2010, the WRA was contacted by several members in the Olympia area that had recent safety inspections conducted by the Department of Labor and Industries. WRA CEO named to workplace health committee The restaurant industry now has a voice in conversation about creating a healthier Washington. Anthony Anton, WRA CEO and president, has been named to the partnership steering committee for Healthy Communities Washington, a new initiative facilitated by the Washington State Department of Health. FDA to issue proposal on menu labeling by March 23 The Food and Drug Administration has withdrawn “draft guidance” issued in August and will instead go through a formal rule-making process to implement a new federal law requiring certain restaurants to add calorie counts to menus and make other nutrition data available upon request. The FDA’s new approach should be less confusing for both restaurateurs and guests.

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.

2011 LEGISLATIVE PRIORITIES 8 | www.WRAhome.com

Member engagement By Julia Clark, WRA government affairs manager

The Washington Restaurant Association represents approximately 5,000 businesses statewide. The restaurant industry is the largest private employer in the state, and contributes hundreds of millions in state revenue. Additionally, the National Restaurant Association reports 1 in 3 Americans will work in our industry, and 1 in 4 have their first job in a restaurant. There is an immense amount of strength in our numbers, and we must use this to our advantage, even when pursuing our legislative agenda. Recently, our government affairs team called on members for support and our request was heard.

Hill Climb 2011 puts member issues front and center

On January 24, more than 150 WRA members headed to Olympia for the day to meet with their legislators. With more than 30 new legislators this year, it was more important than ever to speak out in Olympia, and our restaurateurs answered the call. Meetings were held with nearly every lawmaker, and every single legislative district was represented with restaurant owners and operators. Among multiple

Rep. Eric Pettigrew (D—37th legislative district) meets with WRA member and constituent Joe Fugere. issues members brought to lawmakers, the day’s agenda included:

Growlers to go: Currently beer and wine restaurant licensees and tavern

licensees have the authority to sell “growlers”—one-gallon containers of tap beer—for off-premise consumption; but spirits, beer and wine licensees do not have that authority. This bill would extend the authority to spirits, beer and wine licensees.

aids legislative success Employee meal tax: Currently, restaurant owners are

required to pay sales tax and consequently have a higher B&O tax obligation on meals provided for free to employees. This bill would exempt free meals from sales tax. Food worker card training and certification: Under current law, only counties are authorized to provide entry-level food safety training and issue food worker cards. The WRA would like the Department of Health to have the ability to approve additional entities, such as ServSafe, in order to expand options for all of our food workers to be adequately trained in their native language and in whatever fashion works best for each individual. After Hill Climb, members returned for the largest (and most delicious) legislative reception of the year. More than 300 people attended this year’s Taste Our Best reception, and this presented an additional opportunity for restaurateurs to interact and speak with their lawmakers. Having this number of restaurateurs in Olympia helps us showcase the extent, diversity and size of our industry. We are able to communicate our priorities more effectively to lawmakers, and it is also an opportunity to remind legislators that we are listening.

WRA members introduce industry bill

Several WRA members received an in-person civics lesson on “how a bill becomes a law” during Hill Climb and had the opportunity to drop a bill into the legislative process. Weeks leading up to the big event, state and local government affairs manager Josh McDonald, worked with several lawmakers on our food worker card bill. He met with several lawmakers to get permission to have the bill drafted, visited with the office of the code reviser, and had legislative language drafted that would grant the Washington State Department of Health the authority to allow additional food worker card training and certification programs, should the Legislature act on the proposal. The next step in the process was identifying a prime sponsor for the bill, which is now Rep. Derek Stanford (D—1st legislative district). Luck had it, that this process all came together during Hill Climb. With a delegation of members in tow, along with Lyle Hildahl, director of the WRA education foundation and

The WRA’s Josh McDonald and WRA Education Foundation Director, Lyle Hildahl, with WRA member Bret Stewart, “drop” their food worker card bill into the hopper during Hill Climb on January 24. WRA Board Chair, Bret Stewart, the bill was “dropped into the hopper.” The bill is now in the system, and the GA team is working on having a hearing scheduled and moving the bill forward. A big “thank you” to Sen. Jerome Delvin (R—8th legislative district) for agreeing to be the prime sponsor on the bill. WRA member testifies before Senate Labor & Commerce Committee WRA member Jar Arcand (Santiago’s, Yakima), recently worked with local wineries in Yakima to help bolster tourism and generate additional economic activity by waiving corkage fees in his restaurant when a receipt showing same day purchase of a local winery was brought in to his restaurant. The Liquor Control Board put a stop to this practice, due to prohibition-era laws that were still in effect, forbidding the corkage fee waiver. Jar promptly contacted his legislators and a bill was drafted and sponsored by Sen. Jim Honeyford, Sen. Jeanne Kohl-Welles, Sen. Mike Hewitt, Sen. Curtis King, Sen. Janéa Holmquist Newbry and Sen. Rodney Tom. The Senate Labor & Commerce Committee held a hearing on the bill January 27, and Jar made the trek to Olympia for the second time in a week, to testify in support of the bill. February 2011 | 9

Buy, Sell Or Hold? By Tom O’Brien, WRA’s Consulting Network

Tom O’Brien... has been helping restaurant owners for more than 10 years. He knows all the ins and outs of buying and selling businesses.

10 | www.WRAhome.com

We are all well aware of the effects of the current economic slowdown. Customers are eating out less, the minimum wage is increasing and costs in general are rising. Depending on your outlook going forward, it may be time to hang on and ride out the storm, time to expand or— unappealing as it may be, time to sell and move on.

TIME TO SELL

If you fall into the time-to-sell camp, the current market environment has demonstrated several trends to contend with. First, sellers are competing against a large number and variety of available opportunities. The inventory consists of a wide range of concepts, venue sizes and price points. Some of the opportunities are fully equipped, closed restaurants or bars that can be acquired relatively inexpensively by signing a lease, completing a few improvements and opening. Secondly, the large supply of available restaurants and bars on the market is driving prices lower. The sale price to net profit multiples is as low as I have ever seen. The good news is that there are buyers seeking opportunities. However, with the lack of financing options, they are offering smaller down payments and expecting sellers to carry a contract. Lastly, the uncertainty in the market has caused buyers to significantly slow or delay their due diligence and ultimately their purchase decision.

now, focus on operating your business efficiently. Verify that food and labor costs are in line, and strive for the best guest experience you can provide. You do not have to do extraordinary things; you have to do ordinary things extraordinarily well.

TIME TO BUY

Although the economy is suffering, I cannot remember a better time to look at expansion for many of the same reasons previously mentioned. First, there is a large amount of inventory on the market. This provides buyers the power to negotiate the best deal possible. Secondly, seller terms are available, and people can get in with relatively low down payments. In some cases, buyers can get into fully builtout opportunities for pennies on the dollar. Lastly, landlords are more flexible then ever before. Landlords are typically willing to make concessions for operators who can demonstrate other successful locations.

do not have to do â&#x20AC;&#x153; You extraordinary things; you

have to do ordinary things extraordinarily well.

TIME TO HANG ON

If you are on the fence about whether to sell, I believe owners will benefit by riding out the economic storm. When the economy does recover, sales and profitability will improve, translating into higher selling prices. For

â&#x20AC;?

Regardless of where you are, there are opportunities to exit, stay or expand. Examine your options carefully, and make the decision that best suits your situation. And if you need help deciding, contact the WRAâ&#x20AC;&#x2122;s Consulting Network at 1.800.225.7166.

February 2011 | 11

Ask the Expert | Restaurant Profit Coach

Engaged guests spend more, plain and simple By Rick Braa, CHAE, Restaurant Profit Coach

PASS IT ON

I have a small, quick service restaurant. I know that I can’t continue to cut costs to survive, how can I build sales quickly?

The best place to focus is on increasing frequency of infrequent and new guests which comprise about 20-40 percent of sales. If your restaurant has sales of $500,000 per year and an $8 per guest check average, there are 50,000 guest visits in one year. If 20 percent of those visits are from infrequent/new guests, that equals 10,000 guests. If you get one more visit each, you produce an additional $80,000 in sales (10,000 guests x $8/guest). To increase visits and convert infrequent/new guests to regular guests, focus on what consumers want in a great experience—engagement, customization and a strong finish. 1. Engage your guest with a proper greeting. According to Technomic, 93 percent of consumers believe it is extremely important to feel welcome and comfortable in a restaurant. I’ve eaten in plenty of quick service restaurants. Often I’m greeted with “Hi” and a stare, or perhaps just a stare. The “Hi” part is okay, but the stare freaks me out. Suddenly, as a guest, I feel the need to perform to the best of my ability to answer a pre-determined set of questions the employee knows much better than me. Mix in a little background music and some aging ears, and “Boom!” I’m uncomfortable as a consumer. The problem is, I don’t like to feel uncomfortable, and it all starts with the greeting. A few extra moments and perhaps a follow-up question or comment such as, “How are you today?” or “Thank you for joining us,” or “We’ve got something delicious in store for you,” will relieve the tension and make me feel more engaged. Gallup reports that engaged guests spend at a premium of 23 percent (on a $10 check average that would increase to $12.30). 2. Customize the experience. What I’ve experienced most in quick service is a desire to get me through the

12 | www.WRAhome.com

line to the register with as little dialogue as possible. I think to myself, “I better not hold up the line, I’ve got to speed this up.” Make sure the guest travels the line with your team in a manner that is pleasant and friendly. In fact, 94 percent of guests believe experiencing pleasant and friendly service is critical to a return visit. Secondly, ensure the guest gets exactly what he/she wants and knows that a little extra of this or that is okay. Don’t nickel and dime the guest. Stay focused on the lifetime value of the guest that is worth in excess of $10,000. It’s not just a $10 visit. 3. Finish strong at the end. Make sure the guest is offered drinks, cookies and whatever may make their experience more enjoyable. Too many times I’ve experienced the rush to close the transaction without asking about anything extra at the register. Suggestive selling such as, “One of our awesome cookies to go along with your meal?” statistically increases your odds of increasing the check average and enriching the guest experience. Secondly, say “thank you” and mean it. Saying “thank you” never goes out of style, and consumers say they are 75 percent more likely to return if they are thanked legitimately. Lastly, invite the guest back by saying something like, “See you soon.” Sales building begins by ensuring three things happen on every visit with every guest: engagement, customization, and a strong finish. In my restaurant, I would have a mantra every person understood and could recite, “Engage, Customize, Finish.” Drill these points home with your team, and sales will grow rapidly. For more information on sales building and profit management contact Rick Braa at 206.465.1010 or rbraa@braaconsulting.com or call the WRA Consulting Network at 1.800.225.7166.

Your your

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Establishments are 82% less likely to experience critical violations during a health inspection when they have staff certified in advanced food safety. Protect your reputation. Register your staff for an online course or an instructor led class at WRAhome.com/servsafe!

The Washington Restaurant Association Education Foundation is proud to offer ServSafe Advanced Food Safety, a nationally accredited program that satisfies requirements for advanced food safety training nationwide. February 2011 | 13

Regulatory Agencies | Department of Labor & Industries

L&I: A partner, not By Richard Weber

Things have changed at L&I. While the relationship between Washington’s restaurateurs and the Department of Labor and Industries was once considerably more challenging for members, it’s a whole different ballgame now. “When I first started working with the Washington Restaurant Association, I was getting calls from members about overly aggressive L&I inspectors who were going in and inspecting restaurants without advance notice,” said Bruce Beckett, the WRA’s director of government affairs. “Since then, L&I has stepped back and realized this process was not being handled in a very appropriate way.” Beckett gives the agency high marks for making a concerted effort to give advance warning about inspections to most employers. In contrast to the past, L&I is much clearer on the details about its regulations—easily accessible to businesses through L&I’s user-friendly website. 14 | www.WRAhome.com

“Our engagement with L&I precipitated a whole effort on the part of the department to compile the information on what the requirements are and make it available,” said Beckett.

Working together

L&I focuses on the health, safety and security of Washington’s workers. Its role is partially one of an enforcer of regulations, but it also helps employers meet health and safety standards. The agency also acts much like a large insurance company for workers who suffer job-related illness or injuries, providing limited wage replacement and medical coverage. Washington’s restaurant industry strongly affirms these goals and seeks ways to work with L&I to help it do its job better and more efficiently, according to Beckett. One of the most successful partnerships between L&I and the restaurant industry is the WRA’s Retrospective Rating program. The Retro program is a boon to both workers and employers. Participating employers recover a portion of their

an adversary workers’ compensation premiums if they reduce workplace injuries and claims costs below what you’d normally see in their industry. In other words, it’s a win-win proposition. Employees get a safer workplace and employers get reduced costs of doing business. Since 1986, when it started with 440 participants, the WRA’s Retro program has saved $112,922,882 in refunds. Today there are 1,740 participants.

Workers’ comp: Don’t blame L&I

Not everything is hunky-dory in the relationship with L&I and the business community. Businesses still have trouble shouldering Washington’s very high workers’ compensation rates; but even here, a little hindsight puts things in perspective.

“WRA’s Retro program is one of the longest running in the state,” said Elaine Fischer, spokeswoman for L&I. “The Association’s commitment to having safe workplaces is paying off.”

From 1983 to 2000, workers’ compensation payments were based strictly on an employee’s wages. Then in 2001, the Washington State Supreme Court issued its Cockle decision, forcing employers to include benefits in their wage calculations. Then, hot on the heels of Cockle, the court issued the Avundes decision, directing L&I to treat part-time employees as though they were full-time.

According to Beckett, L&I’s administration of the Retro program has also greatly improved in the last three years. And the WRA has been an active participant in this transformation.

As a result, workers’ comp rates skyrocketed by 25 to 30 percent. Even now, although the rate increases are not as high, the workers’ comp system remains burdensome on business and is badly in need of reform.

“There’s been a lot of incredible work between the WRA and L&I on all technical aspects of Retro over the last few years,” said Beckett. “It’s what you would hope a trade association would do.”

If you are looking for a culprit in the workers’ comp mess, however, look to the Legislature, not L&I. According to Clif Finch, director of Aequus and former head of the Washington Food Industry Association, the Legislature has consistently refused to make meaningful reforms to the system that would bring down costs.

What spurred this improvement was a directive from the Legislature for outside actuarial experts to perform a complete review of the Retro program’s management and make recommendations for improvement. “The outcome of that actuarial review resulted in full-scale changes to the Retro program,” said Beckett. “L&I’s staff bent over backward to make those changes. Without that overhaul, our Retro program would not be having the type of performance we’ve been having. I give L&I huge credit for the way it worked with us on the technical aspects of the Retro program.” Underlying Retro’s success is a strong partnership behind L&I and the restaurant industry to promote safety for teen workers in quick service restaurants. Since 2001, L&I worked with the WRA to produce training materials, videos, posters and other items aimed at keeping these young workers safe on the job. “There was a general feeling that it would be hard for L&I and the WRA to work in a partnership when the pilot program started,” said Fischer. “As it turned out, it was very successful. That relationship has continued.”

“The department is doing a good job,” said Finch. “It’s been running pilot programs that show we could bring down workers’ comp costs by 20 percent if we would do the right thing and expand this initiative statewide over the next couple of years.” Finch believes the WRA is well-positioned to work with L&I to make positive changes that would benefit employers. “The WRA has always been one of the strongest players and one of the best associations with regard to its relationship with the department and its ability to help promote solutions within L&I.” Beckett, too, is optimistic about the WRA’s relationship with L&I. “In order for us to help our members succeed, it’s incumbent on the WRA to have a very good working relationship with L&I,” said Beckett. “Right now there is so much concern over regaining our economic vitality that the agency seems to be taking the position of being really mindful and working with business. I think the relationship with L&I is going to continue on a favorable trajectory.” February 2011 | 15

Strength in training

The key to keeping Washington’s By Heather Donahoe

WRA members are no strangers to a simple fact that this organization routinely makes known: The restaurant industry is the largest private sector employer in Washington state and the second largest in the country. Sounds like a pretty important distinction, right? There are several factors that have placed this industry on top.

For starters, restaurants provide nearly 191,000 jobs in communities throughout Washington and generate $628 million in annual tax revenue. As a result, Washington’s hospitality businesses make up a powerful engine that continually drives the state’s economy. The nucleus of that strong workforce is, of course, the workers. A well-trained, motivated pool of hospitality professionals keeps this industry moving. Restaurants obtain workers from a variety of sources—referrals from industry colleagues, “Help Wanted” window signs, Craigslist ads, off-street inquiries. While these methods can certainly yield good hires, there’s another option Washington restaurant operators shouldn’t overlook. The ProStart program, which is offered in more than 70 public high schools throughout the state, prepares students for careers in the foodservice industry. As part of their training, these students complete internships with restaurants in their communities. Amy Igloi-Matsuno, owner of Amy’s on the Bay in Port

ProStart students from South Kitsap High School (in white) and staff at Amy’s on the Bay in Port Orchard (in black), with owners Grant Matsuno and Amy Igloi Matsuno. 16 | www.WRAhome.com

restaurant workforce on top Orchard, has facilitated the ProStart mentor program through South Kitsap High School in her restaurant since last year, with four students working in the back of the house and three students in the front of the house. She’s been pleased with the students’ performance and urges other restaurateurs to consider the mutual benefits of hosting ProStart students. “I call the high school, and they magically show up,” Matsuno said with a laugh. “But seriously, it’s a win-win. I don’t think enough restaurant operators understand that. You get to make an impact on students who already have an interest in the culinary arts.” Matsuno said she enjoys teaching the students a real “sense of urgency” within the business—in the front and back of the house. It’s the type of lesson that only real-world experience can deliver. Kayla Wilson, an 18-year-old high school senior, said her time at Amy’s on the Bay has given her a clearer picture of what a future career in restaurants might look like. “It’s shown me how the industry will be in the future, and it’s given me a lot to think about and choosing what I really want to do with my life,” Kayla said. State Rep. Jan Angel (R-26th) attended an event recently at Amy’s on the Bay, where ProStart students were enlisted to help with the evening’s festivities. She noted that businesses such as Matsuno’s are vital to the state’s future. “I find myself constantly asking (businesses), ‘What can we do to keep you alive?” Angel said. “Because if we can’t keep businesses successful, the state cannot be successful. I believe that well-trained workers are key to successful business.” The ProStart program is one way to infuse Washington’s workforce with well-prepared and enthusiastic employees. In the program, students receive career-based training for the foodservice industry. Created by the National Restaurant Association and implemented locally by the

Washington’s Restaurant Workforce Washington’s restaurants continually strengthen the state’s economy. Our local and state governments depend on our revenue to support government services. Restaurants are vital to our economic health. • Generate $628 million in annual tax revenue • Have $8.8 billion in gross annual food and beverage • Pay employees more than $3.1 billion each year • Employ 191,000 people in Washington Seventy-nine percent of restaurants are small businesses and employ fewer than 20 employees.

4% 16%

100+ employees 50-99 employees

25%

20-49 employees 10-19 employees

29%

25%

5-9 employees 1-4 employees

WRA Education Foundation, ProStart provides academic and workplace experiences, while students receive classroom training and enter into paid internships with industry professionals. If you’re interested in becoming a mentor to an up-andcoming culinary talent or hiring a ProStart graduate, email us at prostart@wrahome.com,and we’ll work out connecting you with a potential new employee.

February 2011 | 17

Training and Education | ProStart

ProStart mentoring puts the future in your hands

PASS IT ON

By Lyle Hildahl, Director of the WRA Education Foundation

I’m sure many of you remember the individuals who influenced you along your career path. Your mentors and role models who coached and counseled you in becoming who you are today. My mentors included coach Don Smith, who taught me the value of time; Master Ahpo, who taught me the value of respect and discipline; my dad who taught me the value of starting strong and finishing strong; Mr. Bud Gould, who taught me the value of a budget in running a business. The list goes on. I want to share with you an opportunity to positively influence the life of a young adult, who is just starting out in our industry. Becoming a mentor in the ProStart program will give you that chance.

The NRA/WRA Education Foundation ProStart program links classroom experience with on-thejob training for high school juniors and seniors. Skills learned at the workplace are reinforced through practical classroom instruction. The students who successfully pass two comprehensive exams covering culinary foundations, customer service, marketing, cost control, human relations and job readiness, plus 400 hours of industry internship, are rewarded with a national certificate of achievement by the National Restaurant Association. ProStart’s success depends on you. As a mentor and/or ProStart worksite, you help create solutions to key human resources challenges. This role also gives you the unique opportunity to recruit tomorrows managers today, enhance the restaurants and foodservice industry image, invest in our nation’s future and earn recognition as an industry partner.

ProStart students from Roosevelt High School demonstrate their knife skills at the 2010 Boyd Coffee ProStart Invitational.

Ways you can get involved Become a ProStart worksite and mentor students Mentor a student team for culinary and restaurant management competition

Judges at the 2010 Boyd Coffee ProStart Invitational watch and score the ProStart students.

Give a classroom presentation Invite students to your restaurant for a tour Coordinate field trips to your vendors’ facilities Make a financial contribution as a sponsor Be a judge in the annual Boyd Coffee ProStart Invitational

All restaurant and food service industry stakeholders who have a vested interest in America’s youth and the future success of the industry will benefit from partnering with a ProStart program. The WRAEF currently partners with 38 high schools. Please let us know how you like to get involved. Contact Kristina McLeod at 877.695.WREF (9733) ext. 135. 18 | www.WRAhome.com

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Endorsed Partner | Airfactz

Employee screening practices under new scrutiny By Lisa Treppiedi, Airfactz, Compliance Officer

Employers use of credit reports Recently the Equal Employment Opportunity Council (EEOC) has Since the beginning of the recent recession, the use of credit reports by employers has come under intense scrutiny as scrutinized two of the standard the number of applicants with credit issues rises because screening practices used by many of high unemployment and foreclosure rates. Some claim that there is a disparate impact on African-Americans and employers: credit checks and Hispanics because their credit scores tend to be lower overall then the White majority. The problem with this claim (and criminal background checks. The the studies used to support it) is that credit reports for main concern is that these standard employment purposes do not contain credit scores. At a recent hearing held by the EEOC, Pamela Devata from screening practices create what is the law firm Seyfarth Shaw told the council, “I have yet called a “disparate impact” on certain to see a study that shows a relationship between the of credit reports and having a disparate impact on protected classes of people. Protected use individuals that are minorities.” classes include race/color, religion, EEOC has not made any official guideline regarding age, disability, etc. A “disparate impact” The how to use credit reports in the hiring process in order to eliminate a possible disparate impact, although they have occurs when a seemingly neutral recently accepted public comments on a possible credit report criteria (for example, the presence alternative. of a criminal history) has the effect Regardless of this fact, several states, including Washington and Oregon, have enacted specific laws that limit the reasons of eliminating a disproportionate for which an employer can consider an applicant’s credit amount of candidates that would history. To use a credit report in these states, the employer must be able to show the credit report is required by a fall under a protected class. The federal regulation (for example, in the cases of banks or EEOC’s scrutiny makes it crucial that credit unions) or it is substantially related to the position (for example, when filling a position for a CFO). As a best all employers evaluate their current practice, credit checks should not be a blanket requirement for every position; this check should only be used in cases screening procedures to ensure all where there is a substantial job-related requirement for the laws and regulations are currently information. being met and that a disparate impact is not taking place.

20 | www.WRAhome.com

Employers use of criminal background checks The EEOC has recently also evaluated the use of criminal background checks by employers to screen job applicants. Evidence suggests that minorities (especially African-Americans and Hispanics) may have a higher likelihood of having a criminal record. Therefore a blanket denial policy for all applicants with any criminal record, regardless of the nature of the crime or the nature of the position, would create a disparate impact on these groups. There is no federal law that removes the use of criminal background checks due to a disparate impact, but the EEOC does have certain guidelines that should be followed to ensure employers are removing the likelihood of creating a disparate impact. The most important guideline is that a blanket denial policy for all criminal records should not be a policy for your company. Each of the following factors should be considered in every criminal background check completed on potential employees. 1. The nature and gravity of the offense. Certainly criminal records of a violent nature can have more impact on your decision than a simple misdemeanor charge of vandalism. 2. The time passed since the conviction and/or completed sentence. An offense that took place many years ago when the applicant was much younger should be viewed differently than if the same charge was committed in the last year.

3. The nature of the job. Only charges relevant to the job description should be considered. For example, if the applicant has a reckless driving offense and the job description requires no company driving, this offense is not relevant to the job. Also, the EEOC guidelines recommend that arrest records should not influence your decision; in fact some screening companies do not even report records of arrest because of the disparate impact. Arrest records are different from pending records. An arrest record did not result in a conviction; a pending record has the potential to still end up as a conviction.

The best practices Everyone knows background checks are an important part of the hiring process. A background check allows you to gather information on an individual to determine if he or she is the right fit for your business. No one is suggesting that background checks should be eliminated; they simply need to be conducted in a way that does not create a disparate impact. The best practice for doing that is to evaluate each position individually. Take into account the nature of the position and determine what checks and information are relevant to the position before any background checks are performed. Then only consider the relevant criteria when evaluating each applicant for that position. Following these guidelines should help your company screen appropriately without creating a disparate impact. If you need any help with your own screening policy, please contact Airfactz for further information. For further information on recent EEOC decisions regarding the hiring process please visit the EEOC website at http://www.eeoc.gov.

February 2011 | 21

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 NY. 22York, | www.WRAhome.com

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.

February 2011 | 23

Unemployment benefits for voluntary quits? Submitted by TALX Some people may believe that when an employee who quits his or her job, regardless of the circumstances, they are automatically disqualified from unemployment benefits. While most job quits, especially for non-compelling reasons, are disqualifying there are significant exceptions. The former employee has the “burden of proof” and, in order to obtain benefits, must prove that he or she voluntarily quit with “good cause,” attributable to the employment/employer such as a substantial change in pay, working conditions, etc. Some states have broader “good cause” definitions as well—allowing benefits for quits for certain compelling personal reasons which leave the claimant with no reasonable alternative.

Quits which may constitute good cause—changes in terms of hire:

Reduction in hours or pay Changes in duties causing a loss of skills, demotion or loss of responsibility

Changes in worksite, assuming employee hardship, unless it was understood at the time of hire that the employee would be required to work at different job sites Violations of wage and hour laws, such as denial of a lunch break without a written waiver from the Department of Labor Evidence of harassment or discrimination Working conditions detrimental to health or safety

* Good cause for quitting in some of the above cases may not exist if an employee accepts the changes for a significant period of time.

Quits which may constitute good cause—personal reasons:

Quit for medical reasons, such as doctor’s advice to move to another climate

Care for dependent parent or child Quit to follow a spouse who transferred elsewhere or is in the military

Good cause is generally established when work-related conditions have substantially deteriorated or a situation exists that would force a reasonable person, who is otherwise interested in remaining employed, to leave the job. Careful reporting and documentation of voluntary quits is vital to effective control of unwarranted claims. The following details what typically may and may not constitute good cause, but employers must be aware that this is an area in which the states vary greatly.

Quits which may not constitute good cause

Attending school Getting married Looking for other work, e.g., career change Staying at home with children Job abandonment—no-call/no-show for three or more days

Quits that may constitute good cause for leaving* Good cause for quitting may exist if an employer substantially breaches a contract or agreement of employment or terms of hire for reasons such as the ones listed below. Usually the change must be deemed detrimental to the claimant’s interests. Appropriate disciplinary notices or suspensions do not normally provide good cause for quitting. 24 | www.WRAhome.com

Protecting the employer in voluntary quit cases As in discharge issues, the key protection for employers in a voluntary quit situation is documentation. Employers should take care to obtain, if possible, a letter of resignation and/ or conduct an exit interview documenting reasons for a quit. Employers should attempt to find out exactly why an employee is quitting. Documentation should be signed and dated and note the employee’s last day of intended work. If an employee is leaving because of an alleged problem on the job, document the background details and attempts, if any, to find a solution, e.g. the offer of a transfer or leave of absence. An employer should be prepared to present facts to show the claimant did not have good cause to quit or evidence that the reason the claimant gave for quitting is not factually correct. The employer may need to show that they have attempted to resolve the situation with the employee and that alternatives were available to the employee prior to resignation. Note: A quit in lieu of discharge is not a voluntary quit; it is a discharge since continuing work was not available. The content for this article was provided by TALX, the Washington Restaurant Association’s endorsed provider for unemployment cost control. Visit our WRAhome.com page for more information about TALX. Or, iIf you have questions about voluntary quits or other unemployment matters, contact our TALX representative Sarita Veach at 425.415.5842.

Thank you The Washington Restaurant Association would like to thank the following sponsors and participants for making Hill Climb 2011 a success.