Washington Restaurant Magazine January 2012

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Inside

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Features

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Washington State Legislative Session 2012 Sounding the opening bell

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2012 Legislative Session Outlook

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Why involvement matters: A member’s perspective on WRA government affairs

Other stories

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About this issue - January Legislative Preview 2012

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News Briefs

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Your experience tells the most accurate story

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Meet the WRA Government Affairs team

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PAC funds at work – educating legislators during the 2012 legislative session

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Government Affairs: The Education Foundation connection

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Technology take two: Google Voice and Palisade’s iPad wine list

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Shrinking the regulatory load

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Calendar/New Members

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Marketplace

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Minimum Wage

On the cover The WRA’s Government Affairs (GA) team, from left: Anthony Anton, president and CEO; Josh McDonald, state and local GA; Julia Clark, GA manager; Bruce Beckett, director of GA Photo by Lisa Ellefson

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EDITORIAL STAFF Anthony Anton, Publisher Lex Nepomuceno, Executive Editor Heather Donahoe, Managing Editor Shawn Sullivan, Contributing Editor Lisa Ellefson, Art Director WRA EXECUTIVE COMMITTEE Bret Stewart, Chair Center Twist Jim Rowe, Vice Chair Consolidated Restaurants Robert Bonina, Secretary/Treasurer Washington Athletic Club Steve Simmons, Past Chair S & S Hospitality, Inc. Nancy Swanger, WRAEF President WSU WRA EXECUTIVE TEAM Anthony Anton President and CEO Teran Petrina VP Internal Operations Bob Decker Director of Membership Bruce Beckett Director of Government Affairs Lex Nepomuceno Director of Communications & Technology Lyle Hildahl Director of Education Victoria Olson Director of Business Development 510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.WRAhome.com

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

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

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

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

ADVERTISING INQUIRIES MAY BE DIRECTED TO: The Silver Agency 109 North Tower, Ste. 200, Centralia, WA 98531 T 360.736.8065 F 360.330.7960 www.silveragency.com Washington Restaurant Magazine is published monthly for Association members. We welcome your comments and suggestions. email: news@WRAhome.com, phone: 800.225.7166. Readership: 6,310.

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About this issue - January Legislative Preview 2012

By Lex Nepomuceno, Executive Editor Legislative preview editions are usually designed to prepare members for a brand new legislative session. However, for this 2012 edition, it is more like a “Halftime Report” than a “Pregame Show” because of the unusual timing of the special session completed in December.

On page 9 for the president’s column, Anthony Anton discusses the crossroads facing restaurants and the state. Between rising costs and continued economic challenges, the need for member engagement in the legislative process is as important as ever.

WRA Government Affairs Director Bruce Beckett provides a great introduction to the legislative landscape with “Washington State legislative session 2012: Sounding the opening bell” on page 10. He brings to light topics that surfaced during the special session, which are likely to become areas of focus for the restaurant industry in 2012: implementation of I-1183, I-1183 legislation and revenue options the state may seek.

For the complete detail on the WRA’s areas of focus for the rest of the year, “2012 Legislative Session Outlook”, by managing editor Heather Donahoe and the GA team (page 12), does a fantastic job briefing members on the most important topics. The article lays out the reasons behind the continuing budget shortfalls facing Washington and describes the political situation surrounding the matter.

The restaurant industry’s legislative priorities are also discussed: everything from tax and fiscal issues to teen wages to unemployment insurance is featured, along with implications to restaurants described. This article is a must-read for any restaurant operator, large or small.

2012 is shaping up to be one of the most important election years facing the business community in decades. Fortunately for the restaurant industry, the WRA has one of the largest and most influential Political Action Committees (PACs) for any business trade organizations in the state. In “PAC funds at work - educating legislators during the 2012 legislative session” (page 20), staff writer Shawn Sullivan documents how members stand to benefit by having such a strong PAC. He interviews Consolidated Restaurants owner Jim Rowe to provide a member’s perspective on why it is important for restaurateurs to get involved with the PAC and government affairs.

Education Foundation Director Lyle Hildahl describes how the WRA’s legislative activities can impact the work of the foundation, in his column “Government Affairs: The Education Foundation connection” (page 22). He states “Working with government agencies and the WRA government affairs team is a large part of EF’s work.” Hildahl lists the various agencies the Foundation works with and describes the nature of involvement.

Throughout 2011, the WRA participated in a series of government streamlining meetings facilitated by the Washington Department of Commerce. The impetus behind the meetings was an Executive Order (10-05) issued by Gov. Chris Gregiore to improve the way the state serves small business. Specifically, the Executive Order proclaims “ state government should continue its efforts to reduce the cost of doing business by streamlining processes and reducing regulatory obligations without diminishing public health and safety.” In “Shrinking the regulatory road” (page 24), guest contributor Roz Solomon describes the streamlining efforts and potential impact on restaurants.

This issue of Washington Restaurant Magazine is jam-packed with information that will prepare busy owners and managers for the legislative challenges facing the industry in 2012. Each and every WRA member can make a significant impact in the legislative process by sharing their concerns with lawmakers. Be sure to register for the Hill Climb on January 23. To register, go to http://www.wrahome.com/events/ hill-climb/.

Primary Source of Information | News Briefs WRA launches information hub for the I-1183 transition The WRA has posted a new resource to its website, wrahome.com, that helps keep members informed on the latest developments regarding I-1183 and its implementation.

Valuable information such as timelines, WRA insights and guidance, as well fact sheets from the Liquor Control Board will help members stay up-todate. The resource also links to the appropriate areas over government agency sites. Check out the new section of WRA’s website. To access this resource, visit www.wrahome.com/resources/liquor/.

DNA barcoding coming to the restaurant industry This past fall, the U.S. Food and Drug Administration officially approved DNA bar coding. DNA bar-coding utilizes technology to create a unique fingerprint that can identify a species of seafood.

Restaurants can now use this fingerprint to prevent the mislabeling of both locally produced and imported seafood. Other national regulators around the world are also considering allowing the use of barcodes as a fast, reliable and costeffective tool to properly identifying the source of protein. Restaurant industry professionals and seafood suppliers are talking about using the technology to certify authenticity of highly sought after seafood and other proteins. Read more at http://wra.cc/dnabc2011.

IRS keeps reimbursement rate for mileage at 55.5 cents The IRS has announced the amount that businesses can deduct for the cost of operating a car for business reasons in 2012. The rate for deductions is 55.5 cents per mile for business miles driven in 2012. This is the same rate that was in effect for the last six months of 2011. Businesses that don’t want to track actual gas costs can use the IRS’s standard mileage rate to figure out the deductible cost of operating a car for business purposes. Many businesses also use the IRS’s optional rate as their benchmark for reimbursing employees for mileage. For more information, go to http://wra.cc/irsmiles12.

Restaurant industry donates $3 billion to charity According to National Restaurant Association research, the restaurant industry contributes nearly $3 billion to charitable efforts every year.

Ninety-four percent of America’s restaurant operators made charitable contributions in 2010, and 92 percent supported local organizations and charities. Seventy-three percent of operators made donations for hunger relief, and 70 percent made cash donations. “America’s restaurants serve more than great food, they respond in times of need and nourish communities nationwide,” said Scott DeFife, Executive Vice President of Policy and Government Affairs for the National Restaurant Association.

“When you support a restaurant, you support your community and your neighbors.”

Kick off 2012 by participating in the year’s first Washington Restaurant Industry Tracking Survey This quick survey helps the state and national associations gather current information that may prove quite valuable to restaurant owners managing the growth of their business.

Filling out this poll takes less than 3 minutes and will go a long way toward our communication efforts with the state legislature. Fill out the survey now at http://wra.cc/rits12.

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Give us three minutes each month, and we’ll give you a look at how you stack up against the competition.

Be one of our most reliable members, and share your insider perspective in the Washington Restaurant Industry Tracking Survey. You’ll learn from other business leaders, while showing the WRA how to serve you better.

Visit http://wra.cc/writs2011

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Industry Outlook | WRA President & CEO

Your experience tells the most accurate story It’s an inevitable question with an answer that is far more complicated than the numbers suggest. During the upcoming legislative session, beginning January 9, the WRA will be asked by every politico the same question that every reporter has been asking… “How is the restaurant industry doing?” This seemingly simple question becomes complicated when someone looks at the obvious toplines of number of restaurants, workers and sales dollars: 2008 Number of Restaurants

13,013

# of Food services and drinking place workers

205,900

Total Restaurant sales

9.0 Billion

These numbers are easy to access for everyone from reporters, to legislators, to political opponents, claiming that “restaurants can afford more cost.” These numbers seem to reflect that today’s economy, particularly the year-over-year figures, is not negatively impacting restaurant operators.

But, we know that there is more to the state of the restaurant industry than these numbers. More reflective numbers might look like this chart.

Average sales per restaurant Average wholesale food cost Announced minimum wage increase

Anthony Anton, president and CEO

of the most popular events/receptions of the legislative session. Several hundred restaurateurs come to the capitol to meet their legislators and discuss the state of the industry and the impact the Legislature’s decisions will have on small businesses in their neighborhoods. Following Hill Climb, the Taste of Our Best legislative reception will feature the cuisine of 20 Washington restaurants. This reception always allows for great follow-up to the day’s discussions on the hill, as well as 2009 2010 2011 industry networking and hopefully an 13,259 13,880 14,172 excellent time.

190,050 190,050 199,620 The day’s events 8.8 Billion 8.9 Billion 9.4 Billion always set a great tone for the WRA’s government affairs team to then reinforce the messages of the industry throughout the remainder of the session.

2012 is different. The state, the economy and the restaurant industry are at a crossroads, as we collectively deal with the worst economic period in 70 years. The nation is entering its fifth year of economic turmoil. And, after three legislative sessions of deep cuts, the state Legislature must deal with another 1.5 billion deficit. Regardless of your 2008 2009 2010 2011 political bent, this is a very tough session for our elected leaders. Meanwhile, it’s certainly no picnic +4% -4% -2% +1% for restaurants, either, who are often considered +7% -5% +5% +9% the leading edge of consumer discretional spending. +6% flat +1% +4%

Prices are up, customer counts are down or flat, cash is dwindling and positive margins are hard to come by. Our monthly Washington Restaurant Industry Tracking Survey continues to show that operators are reporting negative news, but it is going to take real stories from real operators to explain how this recipe is dangerous for small business given the topline.

Without your involvement during this session, desperate legislators could easily view those toplines and make some dangerous assumptions. We need you to explain that bringing back jobs in our communities will depend upon lowering the cost of doing business—not raising it.

THIS IS WHERE WE NEED YOUR HELP on January 23, because numbers and lobbyists alone will not be able to protect your business.

We need your help to explain that, in fact, restaurants are part of the answer to the state’s money crisis; that the more restaurants see success and flourish, the more tax dollars are generated and the more jobs can be created for those currently needing state assistance, in turn lowering state expenses in the right way.

The restaurant industry’s annual day at the capitol, aptly named Hill Climb & Taste Our Best, is widely viewed as one

January 23, please be there and tell your story, or forfeit your right to complain about the outcome of this year’s session.  January 2012 | 9

Washington State Legislative Session 2012 Sounding the opening bell

By Bruce Beckett, WRA Director of Government Affairs Bruce Beckett, Director of Government Affairs

The governor called the Legislature into special session on November 28 to address a nearly $2 billion expected shortfall in the 2011-2013 budget. Seventeen days later, the Legislature adjourned after making about $480 million of adjustments in the budget through a combination of fund transfers and actual spending reductions.

Accordingly, the heart of the budget debate has been kicked forward into the regular, 60-day session, which begins on January 9.

As the WRA anticipated, however, a number of important issues surfaced during the special session, and work will continue in these areas during the holiday season, leading into the regular session. As we predicted, lawmakers are viewing this simply as a 90-day session.

The issues include: Implementation of I-1183 – the Liquor Control Board (LCB) has issued emergency rules and new requirements on suppliers as the transition to the private sector begins. The WRA is working closely with the LCB to ensure that the supply of products to licensees is not disrupted during the transition. The LCB, which faces an unprecedented transition, has been open to the WRA’s input and is working closely with the WRA on issues as they arise. If you have any questions or concerns, please participate in our weekly conference calls on I-1183 implementation. Email Shannon Garland at shannon.garland@wrahome.com for more information.

I-1183 legislation – some stakeholders want to amend I-1183 to 1.) rewrite the tax code to make it easier to implement, 2.) spread out the impact of the $150 million requirement from wholesale market and 3.) reduce the square footage requirement. The WRA and other coalition members are participating in meetings, including many scheduled during the holiday season.

Changing the initiative requires a two-thirds vote, and it’s a tall order to convince lawmakers to make changes to an initiative that passed with nearly 60 percent of the

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vote.

Revenue options – in order to resolve budget

problems, many legislators are interested in increasing revenues through taxes, fees or a combination of the two. The WRA will participate in any stakeholder processes that arise during the holiday season, including possible discussions around increasing gaming opportunities in Washington state.

The WRA GA team needs your help to better represent your interests in this unprecedented session.

Specifically:

Provide your expertise on our weekly Government

Affairs Committee calls during the session. Your input, advice and counsel are needed.

Come to Hill Climb & Taste Our Best in Olympia on January 23, and talk to your legislator about the economic challenges you face every day. Visit www. wrahome.com/events/hill-climb to learn more and register to attend.

Respond to Action Alerts. Occasionally during session, the WRA deploys a call to action, asking members to call their lawmakers regarding a particular piece of legislation. These collective efforts have the power to influence the decision-making process.

The WRA is committed to keeping you informed of developments as they unfold. Be sure to use our website, www.wrahome.com for frequent updates, as well as our weekly communications pieces, Hot Off the Grill and Center Plate. We have much to accomplish on behalf of Washington’s restaurants during the coming 60-day session.

We hope you’ll join us in these efforts.

PROTECT YOUR BUSINESS Last year’s legislative session was one of the most challenging in the state’s history.

Now we’re going round two.

It’s time to speak up.

Register now! http://wra.cc/hillclimb Hill Climb 2012 Jan. 23, Olympia

January 2012 | 11

2012 Legislative Session Outlook

By WRA government affairs staff

The Washington State Legislature spent a nearly unprecedented amount of time in session during the 2011 calendar year. Lawmakers convened in early January and finally completed work on the 2011-2013 biennial budgets in May. That budget included about $6 billion in spending reductions.

Only three months after the budget was adopted, the Washington State Economic and Revenue Forecast Council predicted lawmakers would need to balance another anticipated $2 billion shortfall, given the fact that state revenues had not kept pace with the budget.

Accordingly, the governor called for a 30-day special session of the Legislature in late November 2011, with the goal of addressing the budget shortfall.

Why does this keep happening?

Unlike the federal government, the Washington Legislature must adopt a balanced budget for a two-year biennium.

Like every household and business, the key to building a balanced budget is an accurate estimate of expected revenues. The Economic and Revenue Forecast Council, a non-partisan body, is charged with developing the predictions that lawmakers and the governor must rely on.

In acknowledging that forecasting revenues and expenses can be very difficult, the primary reason for a short, 60-day even-year session of the Legislature is to make adjustments to the two-year budget based on changes in revenue and/ or expense forecasts. Just like any household or business would do.

Unfortunately, during the recent recession, and subsequent period of economic malaise, the Council’s forecast models have repeatedly overstated expected revenues. The fundamental problem is that the economy’s performance and consumer spending pattern, are unlike any that our economy has experienced. Therefore, the predictive models have proven to be unreliable. Even though projections are improving, the error rate continues to be high. In addition, lawmakers relied on $3 billion in federal stimulus money to balance the previous biennium’s budget that had a “bow wave” effect on state spending that was not recovered through economic growth.

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The Political Situation With about a $2 billion shortfall facing lawmakers, the governor called a special session beginning November 28. While the stated purpose of the special session was to balance the budget, any, and all, topics had the opportunity to be introduced by legislators.

Both Senate and House members convened in Olympia without a concrete plan on how to tackle the budget deficit.

In addition, there were more than 2,000 “Occupy Olympia” protestors disrupting budget meetings and attempting to overwhelm the state capitol. After 17 days of special session, the Legislature finally agreed on a portion of the needed $2 billion shortfall (about $480 million) strictly through cuts to state-funded programs and transfers of money.

This means that the 2012 regular session reconvening on January 9 will focus almost exclusively on how to balance the remaining $1.5 billion deficit.

The make-up of the Legislature remains the same as 2011—Democrats control the Senate with a 27-22 majority; Democrats control the House with a 56-42 majority. In 2011, a number of moderate, pro-business Democrats exerted tremendous influence over the outcome of key business issues. The WRA expects that dynamic to continue in the upcoming session(s), as the “Roadkill” moderate Democrats know they can and should be the key to any budget solution that incorporates real systemic budgetary change.

Gov. Gregoire is entering her last year in office. She submitted her proposed supplemental budget to the Legislature in late November. Her proposal relies on further spending reductions to balance the shortfall, but she also allowed for the possibility of new revenue options through a .5 percent temporary increase in the general sales tax. Now that the governor’s proposal is on the table, both the House and Senate budget writers are hard at work figuring out what approach they would each like to take to balance the remaining deficit for the 2011-2012 budget.

Finally, the requirement that taxes cannot be raised or newly imposed without a two-thirds majority vote from the Legislature or a vote of the people, remains for 2012.

Although the Legislature must pass a balanced budget, there is considerable discussion among some lawmakers about developing a revenue package to send to the voters to decide on the March or April ballot.

WRA Legislative Priorities Tax and fiscal issues

With a budget shortfall still hanging over the capitol, the Legislature will be eyeing any potential revenue source.

This could be in the form of taxes and/or increased regulatory fees. Simply stated, the WRA GA team will work to defend against any revenue generator that could have negative bearing on the restaurant industry

B&O tax credit for pop syrup

During the 2010 special legislative session, the WRA defeated a proposal to repeal this tax credit and double the pop syrup tax. At the time, Gov. Gregoire and a number of Democratic lawmakers in both chambers aggressively advocated this tax increase until the final days of the special session. WRA members responded overwhelmingly to an Action Alert on this issue, placing more than 700 calls to voice their opposition to the proposal. Ultimately, the pop syrup tax proposal was not included in the final tax package.

Once again, the WRA will be keeping an eye on the potential for a similar proposal to reemerge during the 2012 regular session. The tax credit offset that restaurant operators receive represents a substantial savings, and the

WRA is committed to protecting it. If need be, members should be prepared to respond to any Action Alerts that may arise in connection to this issue.

Street utility taxes

The WRA expects the Association of Washington Cities to again introduce and lobby for authorization to impose street utility taxes based on street usage by businesses. The AWC has lobbied for this tax for the past several years, and introduced a bill last session that was heavily debated in the House Transportation Committee, but did not advance beyond the House Rules Committee prior to the end of session. The business community was unified in opposing this bill, and many testified against it, emphasizing the danger of saddling the business community with added costs during such a tenuous economic climate.

Licensing fees

In 2011, the Legislature failed to maintain the 10 percent increase in liquor license fees that was enacted in 2009.

Hence, licensees enjoyed a 10 percent reduction in those license costs. The WRA expects proposals to emerge during this legislative session that would increase liquor license fees and then tie these fees directly to enforcement and education.

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Sales tax

The governor and many state lawmakers want to explore a temporary hike in the sales tax to assist in balancing the budget. It is a broad-based tax that everyone pays, and a “small” change can add considerably to state coffers (a one-cent increase raises about $1 billion). However, there are some in the Legislature who believe a sales tax increase will predominantly impact lower income Washingtonians.

These legislators will most likely push back on their leadership, and ask for alternative ways to raise revenue.

Sales tax on services

Many services, such as legal and accounting services, are exempt from sales tax. Imposing sales tax on such services could result in between $200 million and $1.26 billion in new revenue over the biennium. Because the tax is another “hidden cost” to business, it’s more difficult to pass on to customers.

General B&O tax increase

Lawmakers increased the B&O tax in 2010, and they may turn to an additional increase as a “broad based” business tax as part of their solution. Labor unions and liberal interest groups will be pushing this tax in lieu of any general sales tax increase that they consider regressive.

Local government tax authorization

City and county governments throughout Washington are finding themselves in significant budget deficits, not unlike the state. In addition, their options to increase taxes are currently limited to a few sources such as sales, B&O and increasing fees for certain services they control and provide. This coming legislative session, more than any previous one, will include tremendous pressure from local government lobbyists petitioning state government for new taxing authority. The WRA expects this to be a real threat and will directly engage when proposals are introduced.

Other revenue tax options Gaming

As it has in recent years, the budget shortfall may create the opportunity for debate on whether, and how, modifying existing gaming restrictions could assist state and local governments and create new opportunities for full-service restaurants with liquor licenses. The WRA team is exploring options, including working closely with the Recreational 14 | www.WRAhome.com

Gaming Association, on a combined approach. The goal will be to pursue proposals that can be successful at the legislative level and withstand a ballot challenge from tribal interests.

Labor Minimum wage

The hike in minimum wage to $9.04 per hour (the highest state-mandated wage in the nation), combined with no allowance for crediting tips as wages, is adversely impacting a majority of WRA members. This was evidenced in the overwhelming response the WRA received this past fall to its minimum wage survey (see page 30). Although it is highly unlikely that sweeping change in the current law will be possible in this political environment, the WRA will create opportunities to continue educating lawmakers on the compounding problems created by the minimum wage law and the inability to credit any tips as wages. The WRA will work with lawmakers to potentially introduce: Legislation changing the annual escalator in the minimum wage law.

Legislation to freeze the minimum wage unless unemployment rates drop to a specified level.

Training and/or teen wage

During 2011, the House Labor Committee held a hearing on a bill that would have allowed for a training wage.

Despite loud opposition from the labor community, a number of lawmakers continue to hear from constituent businesses that such a policy could be useful. Additionally, data from the Employment Security Department (ESD) shows a precipitous decline in teen employment over the last 10 years, leading to concerns that the emerging workforce is unable to get “on the job” training during their student years. The WRA will work with the Workforce Training Board, the governor’s office and lawmakers to develop a strategy that could include elements that support programs such as ProStart, amendments to Washington’s youth work rules and a training wage.

Finally, the WRA will continue work to build a coalition of business interests that share a common goal to reform Washington’s minimum wage law.

January 2012 | 15

Payroll Costs Unemployment Insurance (UI)

In 2011, major changes were enacted in the social tax rates that lead to considerable savings in UI taxes for the vast majority of hospitality sector businesses.

Fortunately, the UI trust fund remains healthy. The WRA will work to protect against changes in UI that could lead to rate or benefit increases.

A technical change may be introduced by ESD to fix the problem created when the federal Department of Labor declared that the 2011 UI reforms did not conform to federal law. The WRA does not expect these changes to have an impact on WRA members.

There are increasing numbers of people who are exhausting all of their UI benefits. The WRA expects proposals to be introduced that would expand benefit eligibility and/or the duration of benefits.

Workers’ compensation/Retrospective Rating programs

Significant modifications to workers’ compensation were adopted in 2011. In part because of these changes, L&I’s proposed 2.5 percent rate increase was eliminated entirely. Most hospitality sector businesses, however, will see a small decrease in their workers’ compensation rates.

The WRA will work with the business community to protect the reforms adopted in 2011. Additionally, the WRA will defend against adverse changes to Retrospective Rating programs.

Independent grocers intend to propose legislation granting Retrospective Rating programs additional authority to manage claims and independent medical exams.

Although the bill offers some modest improvement, the WRA will remain neutral to preserve its ability to engage immediately if the bill is amended unfavorably.

Alcohol I-1183 implementation

Passage of I-1183 brings comprehensive change to the distribution and retail system that has been in place for 78 years in Washington. Accordingly, the Liquor Control Board will be undergoing monumental rulemaking to implement the new system approved by the voters in November.

The WRA will be active participants in the rulemaking process that will occur over the next several months to establish the new system laid out in 1183. On December 8, however, the Board adopted emergency rules for the portions of the initiative that took effect immediately. The WRA voiced concerns about the requirements regarding central warehousing and will continue to work with the Board moving forward. As rulemaking continues, the WRA also will remain active to ensure product is available throughout the transition.

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While most of the work to implement the initiative will take place at the Board level, we do expect there to be legislation introduced to amend 1183. Stakeholder groups already have proposed changes to the fee and tax structure. The WRA and the 1183 coalition will be in discussion regarding streamlining of implementation, but remain committed to the system and policies contained in the initiative that was overwhelmingly passed by voters.

Environment/Sustainability Retail plastic carryout bag ban

The Northwest Grocery Association is introducing legislation that would, through a fairly rigorous process, create consistency throughout Washington state on this issue by setting one standard that county governments (preempting cities) may adopt as a plastic bag ban on retail establishments. As currently written, the ban would still allow plastic bags to be used for holding prepared foods, which is consistent with local bag ban ordinances already adopted, and also recognizes the serious food safety requirements the industry is under. The WRA will work to make sure this exemption stays in the bill and, if so, will work proactively with a coalition of supporters on helping to see the legislation passed.

Tourism Governing structure and long term funding for the WTA

The newly formed Washington Tourism Alliance, of which the WRA is a founding member, is growing out of its infancy and working on ideas around an appropriate governing structure and long-term funding strategy. We do not anticipate the WTA having a direct funding request vetted and prepared for this legislative session, but there most likely will be efforts to ask the Legislature to get more involved.

Health Care Federal health care reform implementation

Lawmakers will be working with the Gregoire administration to continue implementation of the federal Patient Protection and Affordable Care Act. We expect legislation that will put in place the basic framework of a state exchange.

The WRA will collaborate with legislators and administration officials as they pursue legislation in this regard and will work to defeat any legislation that proposes new or increased burdens, over and above mandates within the federal Act. That being said, the WRA also will seek inventive solutions that might aid our members as they work to comply with the costly requirements of the Act. ď Ž January 2012 | 17

Meet the WRA Government Affairs team

Bruce Beckett Government Affairs Director Bruce Beckett joined the WRA in 2009, bringing with him more than 27 years of public affairs experience, including 17 years leading Weyerhaeuser Company’s Western Region and Washington State public affairs teams. Prior to joining the WRA, Bruce served as the director of public affairs for the Cascade Land Conservancy’s $20 million Cascade Agenda campaign. He has served on the boards of numerous business organizations, including the Association of Washington Business, as a Deputy to the Washington Roundtable, TVW, the Washington Forest Protection Association, Northwest River Partners and the Washington Research Council. Bruce is accountable for overall leadership of the WRA government affairs team, provides strategic direction to the lobby team, and ensures WRA members are fully informed and engaged in the development of WRA positions and tactics.

Josh McDonald State and Local Government Affairs Josh McDonald joined the WRA government affairs team in 2007. Before joining the WRA, Josh spent the several years previous splitting his time between contract lobbying work during legislative sessions and working on congressional, state and local campaigns. Josh spent three years working alongside our contract lobbyists Denny Eliason and Kim Clauson, assisting them with their daily lobbying duties and building relationships that help make him a strong asset to the WRA. In addition to his work at the state level on such issues as nutrition/obesity, food safety, tourism and the environment, Josh focuses much of his attention on building and maintaining a strong industry presence at the city and county level, as well as cultivating an ongoing dialogue with local health departments.

Julia Clark Government Affairs Manager Julia Clark joined the Washington Restaurant Association’s Government Affairs Department as government affairs assistant 2007 and significantly grew and strengthened the WRA’s grassroots network which was directly responsible for our most recent defensive successes—protecting the pop syrup tax credit and our Retrospective Rating program.

Additionally, Julia was responsible for establishing the WRA’s 18 | www.WRAhome.com

Ambassador training program – giving restaurateurs tools to communicate with their elected representatives. Last year, Julia worked to achieve a tax exemption for free employee meals, as well as granting restaurants the privilege of selling growlers to-go. Julia works closely with state regulatory agencies, and focuses on liquor-related issues.

Contract lobbyists Denny Eliason Denny Eliason is regarded by much of Washington’s legislative community as one the most accomplished lobbyists on the hill in Olympia. Among other significant wins, Denny’s hard work yielded the B&O tax credit on pop syrup taxes that saves restaurants across the state an average of $3,000 annually. Denny is the founder of Alliances Northwest, a business-oriented government relations firm emphasizing representation before the Washington State Legislature and local governments in Washington state. Denny has experience working on a number of issues, including banking, energy, employment, environment, finance, growth management, health care, insurance, pharmaceuticals, retail, securities, taxes and transportation. Some of Alliances Northwest’s other clients include Puget Sound Energy, Nintendo and Amazon.com.

Kim Clauson-Hoff Kim Clauson-Hoff is a partner with Denny Eliason at Alliances Northwest. Kim’s primary focus is workplace and labor issues.

She is also a strong force on the front lines for the Washington Restaurant Association on some of the industry’s toughest issues.

She routinely delivers results on issues that impact restaurateurs’ bottom lines. Kim has landed the state’s restaurateurs their biggest proactive wins in the past five years, which include tackling issues such as workers’ comp, gift certificates and pushing the obesity lawsuit prevention bill past the governor’s desk. Last session, Kim successfully aided in the passage of an exemption for free employee meals. Kim has defended WRA members against a series of bills that would have expanded eligibility for unemployment insurance benefits to (1) those who voluntarily quit their jobs and (2) those who are seeking only part time work. If enacted, these bills would have increased the overall costs of benefits for UI, thereby leading to higher UI taxes for employers. 

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January 2012 | 19

PAC funds at work – educating legislators during the 2012 legislative session

By Shawn Sullivan, contributing editor

The Washington Restaurant Association (WRA) has established itself as one of the top business sector government affairs programs in Washington state. The WRA team focuses on representing the industry’s interests in the Legislature, many local jurisdictions and county governments. A core element of any top government affairs program is its ability to work with both candidates and incumbents during nonlegislative times of the year, notably during the campaign cycle.

The WRA Political Action Committee (PAC) is the tool that provides the WRA Government Affairs team the opportunity to educate candidates during this important phase. The PAC, which is funded by voluntary contributions from WRA members, gives the team the ability to work with candidates who may not be as familiar with restaurants, to support candidates who work with our industry and to showcase WRA members during campaign and other events.

“The Political Action Committee is one of the really essential values the WRA brings to its membership,” Jim Rowe, owner of Consolidated Restaurants and current co-chair of the governmental affairs committee (GAC) said. “Political representation is always important for any industry, and over the last several years, the WRA has really made it a priority to become a very well regarded and very well respected association amongst political leadership in Olympia. When potential legislation is being considered, we can use the PAC to ensure that our needs are being considered.”

As the campaign cycle comes into full swing, the WRA’s GA team can deploy the PAC in order to educate candidates about specific issues and to reinforce the importance of a vibrant and healthy business community. Over the last few years, the WRA’s goal has been to foster a more “business friendly” legislative environment. The GAC can attribute much of the success during the past few years in the Legislature to changing the culture in Olympia. Changing the culture and influencing the collective thought process are ongoing, long term goals.

“My involvement with the PAC has been through the WRA’s government affairs team, and it involves reviewing and 20 | www.WRAhome.com

approving the contributions that we make from the PAC to candidates in the state election, and also helping to try and raise fund as much as possible,” Jim said.

Candidates interested in receiving PAC funds must go through a rigorous vetting process, and answer a series of knowledgebased questions prior to consideration. “The GA team will go out and vet out candidates,” Jim said. “Some candidates have long relationships with the WRA, and understand the politics from our perspective a little better. Others have to do a little more work to qualify.”

A significant part of the vetting process is educating current and aspiring elected officials to the role restaurants play in our economy. “The WRA sends out a questionnaire, but that is only one component,” Jim said. “Once the government affairs team has a good sense of what candidates stand for, and what the races look like, they will make a recommendation to the GAC.” Members of the GAC (comprised entirely of WRA members) review each race by candidate and have the opportunity to share thoughts, ask questions and play a role in deciding who understands the industry enough to receive any funds.

“Without question, educating legislators through our PAC is such a key part of the political process,” Jim said. “A lot of legislators have big jobs in front of them, and have a lot of stuff coming their way. They may not fully understand what is going to happen with the bills in front of them, so educating lawmakers to better understand the issues they will be voting on really helps the restaurant industry. “ Shortly after the GAC makes its recommendations, WRA members personally deliver checks to candidates, or, some instances, host events to support candidates. In either case, a personal relationship is established within the candidates district which can be crucial during legislative sessions.

All contributions adhere to the Washington State Public Disclosure Commission requirements.

All of the funds collected by the PAC are voluntary donations from WRA members. “Operating a restaurant is more than fulltime job, and taking time and energy to focus on something out of the restaurant is a challenge, Jim said. “Most operators may not know what the governmental affairs team does for the WRA, and they not may fully appreciate how much work gets done on the offensive and defensive side of the ball. [WRA] members should consider making a PAC donation, but before you do, dig in a little bit and educate yourself on how much value it can bring.”

Why involvement matters: A member’s perspective on WRA government affairs

By Shawn Sullivan, contributing editor Phil Costello is the owner of the Spokane-based Stop-N-Go Drive-In. He is the current Government Affairs Committee co-chair and is a staunch advocate for the WRA, its members and all the people employed by Washington restaurants. Phil sat down and discussed his role with the WRA. To read the complete interview, please visit www.wrahome.com.

How did you get started with your business?

My father-in-law was one of the original guys in the business. I always laugh when I get asked because I tell people I was given an apron instead of a ring. My wife and I had the opportunity to buy the store where she was working, and we purchased it in 2004. We took the chance to work for ourselves and expand my restaurant.

When did you become involved with the Washington Restaurant Association?

Immediately upon getting into the business in 2002, when I started working for the drive-in. My father-in-law was a big supporter of the WRA, said it was a great organization to be a part of, so I started attending things like Hill Climb pretty shortly thereafter. I have always believed in being part of the government affairs process, and when I took over in 2004, I immediately joined the WRA with Donna [Tikker, WRA Spokane area coordinator].

Why do you drive all the way from Spokane to Hill Climb every year?

I am a firm believer that if you don’t participate in the process, you can’t complain about it. Unfortunately, I like to complain a lot, so I figured I better show up and get involved. I think it is really important this day and age to pay attention to things that are going on at the state and federal level, and hold the people in charge accountable. It does impact what we are doing on a regular basis. I found out how a much a little increase in this tax or that tax can make a huge difference on whether or not you make a profit and are able to employ people, pay the bills and do the things you need to do to make a modest living for yourself.

Describe your first Hill Climb experience The first year for me was very daunting. I am a pretty outspoken person for the most part, and I found it very intimidating to start with. I have always held legislators in high regard, and with the upmost respect. So, I was a little more careful the first year and did a lot more listening. I threw a couple of my own points in here and there to convey the story of what was happening in my particular situation.

The part I really enjoyed about Hill Climb was the fact it was a chance to get all of the restaurateurs able to attend together, go up there and combat the opposite voice you see running around the hill. Participating in Hill Climb gave me a chance to get our points out there and have a discussion.

What is it like serving as the co-chair of the government affairs committee (GAC)?

I am a vested member in the GAC. As the co-chair of the Committee for this year and last year, I must say, again, it is going back to getting involved and being a part of the process.

I think [Initiative] 1183 is a prime example of getting involved.

We have some people on the eastern side of the state that came out against 1183 because they did not know all of the facts. Being as involved as I am, I was able to talk to them about the facts, and get them straightened out. We limited the amount of misinformation given to our members. I feel our government affairs team, especially since Bruce Beckett [WRA government affairs director] has come aboard, has done a phenomenal job of turning the tide on both sides of the aisle.

When I first got involved, it seemed like we were really proRepublican, anti-Democrat and that they were never going to get anything done for us.

Bruce and the team the WRA has assembled worked with democratic side of the House and Senate to really get a lot of things pushed forward that make sense. Last year we got a lot of things passed that I originally told Bruce were impossible. I am very big advocate to other operators to make their phone calls, make their points known. Let people know that the decisions that take place and the direction the GA team goes are really decided during member phone calls. Every member has the opportunity to have their voice heard and be part of the discussion.

January 2012 | 21

Government Affairs: The Education Foundation connection

By Lyle Hildahl, director of the Education Foundation Lyle Hildahl, WRA Education Foundation director

Years ago, as a restaurant owner and member of the Education Foundation (EF) Board of Directors, my feeling was that the WRA was primarily focused on legislative issues, with government affairs being front of mind and education being an afterthought.

Now, in my position as director of the WRA Education Foundation, I have a different perspective. Legislative issues will always be at the forefront of the WRA’s agenda, as they should be. That’s what our members ask us to focus on.

However, the work of the Education Foundation is certainly not an afterthought for this organization. It’s an essential component within the WRA’s goal of helping its members succeed.

Working with government agencies and the WRA government affairs team is a large part of the EF’s work. In fact, the only EF endeavor that isn’t connected to a government agency is its fundraising efforts. The EF works with the Office of Superintendent for Public Instruction, Higher Education, Workforce Training, Washington State Liquor Control Board, Washington State Department of Health and Labor and Industries. Representatives from Higher Education, OSPI, the Health Department and Labor &Industries serve on the EF’s board of directors.

The EF and the WRA Government Affairs (GA) teams join forces on many levels. Currently, we are working together with members of the governor’s council to address the decline in teen employment over the past few years. The hospitality and tourism sector employs many teens. The EF manages ProStart, a program that prepares high school juniors and seniors for careers in the restaurant industry. Teen labor laws and the ever-climbing minimum wage in Washington state are barriers to hiring teens and are being analyzed. Additionally, the WRA is emphasizing the effectiveness of ProStart as a resource for at-risk students.

Together we are working with the Department of Health on state food code requirements and food safety training for employees and managers. Josh McDonald, who works on

22 | www.WRAhome.com

the WRA GA team, and I have met with many local health departments to talk about the importance of food safety training and how the WRA can help facilitate this training.

From basic food worker card training, to manager certification training, the WRA EF is committed to ensuring that top-notch food safety training is facilitated in as many Washington state restaurants as possible.

Our WRA members wanted the required alcohol server training certification to be offered online and with GA’ s help, the EF was successful in this endeavor.

Additionally, the EF has worked with L&I on workplace safety issues for many years—most recently with their Safety and Health Investment Project (SHIP), on the creation of a workplace safety training program for teens entering the workplace.

One of my most notable experiences with the GA team was a visit to Moses Lake to preview the new skills center project () with State Sen. Janea Holmquist-Newbry. The ProStart students prepared lunch for us as we talked about the growth of the restaurant industry and positive impact that restaurants have on the overall economy. As we were saying goodbye, Sen. Holmquist commented about how much she learned about the WRA and that when dining in Moses Lake, she would be sure to visit WRA member restaurants. A mutual goal for the WRA GA and EF teams is to have every state legislator meet the ProStart students in their districts. ProStart is an invaluable program that serves Washington youth and the economy. In these tough economic times, our Legislature needs to observe the benefit of programs such as ProStart.

We look forward to continuing our work with the GA team, arms linked, determined to make great strides for restaurant training in Washington state. There is still much to accomplish.

The Education Foundation is a nonprofit 501c3 charitable organization that serves the hospitality and tourism community to foster growth and success through education training and career development.

Technology take two: Google Voice and Palisade’s iPad wine list

By Lex Nepomuceno, Executive Editor

We have two very different technology highlights for this month. One of the items is customer-facing, while the first one, Google Voice, is specifically for the busy restaurateur.

Take advantage of Google Voice!

What is Google Voice? It is a free service that can reach multiple handsets simultaneously through one phone number.

Let’s say you have poor cell reception at home, but you are expecting an important call on your work mobile phone.

The old way would be to manually set call forwarding on the mobile phone to go directly to the home phone. With Google Voice, you can just give the important contact your Google Voice number, so your mobile and home phones ring at the same time. Don’t want to be reached at home?

Fine, just log into Google Voice, and click “Do not disturb” for the home phone setting.

Google Voice can be as simple or as complicated are you want it to be. The service is worthwhile particularly on the basis of being able to use as single phone number on multiple phones and having the capability to filter out spam calls at will makes the service worthwhile. However, the best part is that the service from Google is free.

Palisade launches Seattle’s first iPad wine list iPads (and other tablets) are great devices that promise to deliver a number of efficiencies and conveniences to the restaurant industry. However, integrating into large fullservice restaurants can be a challenge. Despite this, Seattle’s Palisade restaurant deserves some serious credit for launching an innovative iPad-based wine list to its customers. The new system gives diners the ability to browse and make selections with an easy-to-use interface, while saving the restaurant time, money and paper.

Google Voice can also consolidate incoming voice According to Palisade general mail and have everything manager, Doug Zellers, the accessible over the web. This restaurant’s printed wine list comes in handy when you included 35 pages of more want to track down an old than 600 wines by the glass, message or phone number. bottle and half bottle, with The web provides more Palisade general manager Doug Zellers (left) and head chef Dan information that constantly storage than many phones, but Gilmore (right) demonstrate the iPad wine list. needed to be pulled and it also provides more flexibility updated. “New things come and reporting features. in and prices change. With 25 wine lists and constant updates, we were using a lot of paper each week,” says Zellars. “Now, The biggest benefits of Google Voice to restaurant operators we’ll never have an outdated wine list. This dynamic, wireless are time, flexibility and privacy. A big time saver is a feature technology helps us keep information fresh and avoid service that does voice-to-text conversions of incoming voicemail, interruptions.” which is then sent to you over text and/or email. Flexibility is provided because you control the phone number and how The restaurant’s certified sommelier, Yashar Shayan, chooses calls are routed. If a cell phone is lost, you won’t be out of luck new wines, then researches and manages real-time updates because you can just reroute your Google Voice number to to the bottle details via a dedicated WiFi network for the any other phone, such as home, the back office or a spouse’s iPad wine list. The touchpad database is searchable by every phone - then, change it back when the phone is found. category imaginable—grape type, blend, white, red, price range, country, state, region and vineyard. The database also Finally, most restaurant owners and managers value privacy. includes earth-friendly categories for eco-conscious diners.

Wouldn’t it be nice to have complete control over incoming vendor or customer calls? With Google Voice, you can give Future plans for the iPad wine list include pairing suggestions out a phone number freely, and block any caller who poses a for select wines and entrées created by Chef Dan Gilmore. nuisance. Users can even be as specific as setting what times they want to receive calls from particular numbers.

January 2012 | 23

Shrinking the regulatory load

By Roz Solomom, Washington Business Alliance

Last May a group of small restaurants, the Washington Restaurant Association, Stoel Rives and the Washington Business Alliance participated in a state-sponsored LEAN workshop. LEAN is a method for preserving value with less waste. The goal: streamline the regulatory processes required of small restaurants while maintaining public health and safety.

Gov. Gregoire had directed the state Department of Commerce to support small businesses by working with regulators to reduce the burden of regulatory compliance.

One of the first areas of focus was restaurants (the other was manufacturing – stay tuned for another article!).

Why? Because there are more than 13,000 restaurants in Washington state and they provide more than 196,600 jobs, and generate $12 billion in annual revenue. Restaurants are also highly regulated (from health and safety to liquor licensing), so it’s a logical place to start.

Impact Washington, a company that specializes in strengthening manufacturing processes, led the LEAN review. First, it compiled and presented flowcharts of every regulatory step required to open a restaurant. Owners and industry association members then pinpointed regulatory “pain points” – where delay and complexity lead to frustration and higher costs. Commerce and Impact Washington duplicated the process with regulators.

Participants identified immediate and long-term changes

24 | www.WRAhome.com

13,000 restaurants in Washington state provide more than 196,600 jobs, and generate $12 billion in annual revenue. that could reduce costs for government and restaurants while ensuring public health and safety. They include:

Regular informational meetings between regulators

and restaurants Creation of a “My Account” web-based personal business account system. Information could be requested and provided once, rather than multiple times, and communications could be preserved so that inconsistent regulatory compliance could be reviewed and corrected.

These two changes alone would have an impact on business compliance costs. As Joe Fugere, owner of the Tutta Bella Neapolitan Pizzerias, said: “If our ideas are implemented, I know they will be invaluable to me as an existing restaurant owner and even more helpful for new owners.”

Everyone who spent hours poring over the regulations appreciated the effort contributed by government officials; but now the ball is squarely in their respective courts. The two suggestions above are not controversial, would increase efficiency for government and for business and would most likely improve regulatory compliance.

These suggestions aren’t glamorous. Change is hard.

There’ll be pushback. But regulatory improvement is long overdue. Let’s not allow the time and energy we’ve already contributed be wasted. Let’s get it done.

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INDUSTRY CALENDAR

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

Training | Meetings | Events | January & February Events

Meetings

Training

Jan. 23 March 3

Jan. 17

MSC Board Meeting

Jan. 17

Finance Committee Meeting

Feb. 1

Seattle Restaurant Alliance Morning Mixer

Feb. 7

HIHIT Meeting

Feb. 7

Executive Committee Meeting

Jan. 9 Jan. 19 Jan. 30 Feb. 7 Feb. 27

Feb. 8

Retro Investment Meeting

Feb. 8

Retro Trust Meeting

Feb. 8

MSC Sub-Committee Meeting

Feb. 14

Spokane Chapter Meeting

Hill Climb & Taste Our Best ProStart Invitational

New Members Adesso Café, Olympia Avenue Bread, Bellingham Boat Shed Restaurant & Bar, Bremerton Branks BBQ, Sumner Café Primo, Redmond Churchill’s Steakhouse, Spokane Dodson’s IGA Market, Everson Doyle’s Public House,Tacoma Engine House No 9, Tacoma Fieldhouse Pizza & Pub, Spokane Five Guys, Bothell Guadalajara Grill & Cantina, Longview Halftime Sports Saloon, Gig Harbor Indigo Kitchen & Ale House, Lynnwood Macau Casino,Tukwila Mulligan’s Pub & Grill, Allyn Native New Yorker, Lacey O’Blarney’s Irish Pub, Centralia The Original Pancake House, Puyallup Pacific Lanes Bowling Center, Tacoma Pint & Quarts Pub, Lacey Pizza Factory, Port Orchard Prairie Bar & Grill, Brush Prairie Red Dragon Casino, Renton Restaurant Marché, Bainbridge Island Rick’s Simpson Avenue Saloon, Aberdeen Silver Star Saloon, Vancouver terracotta red, Everett Terry’s Office Tavern,Tacoma The Original Pancake House, Puyallup Tip Top Too Tavern, Vancouver Victorian Rose Tea Room, Port Orchard Windmill Bistro, Sumner

New Allied Members Encore Sales & Marketing - Spokane Brent Romaneschi 9922 E Montgomery Dr Spokane, WA 99206-4123 5099247863 bromaneschi@e-sm.com Foodservice sales & marketing agency representing a variety of product lines, many of which are based here in the Pacific Northwest.

Encore Sales & Marketing Company Nathan Heath 22407 68th Ave S Kent, WA 98032-2444 4252264051 nheath@e-sm.com www.askencore.com Foodservice sales & marketing agency representing a variety of product lines, many of which are based here in the Pacific Northwest.

Kwik’Pak Fisheries LLC Ruth Carter 2200 Alaskan Way Ste 420 Seattle, WA 98121-1684 206.419.8726 ruthc@ydfda.org www.kwikpakfisheries.com Fresh & frozen yukon salmon. Complete line of smoked products. Bulk and retail.

26 | www.WRAhome.com

ServSafe, Kent ServSafe, Tacoma ServSafe, Spokane ServSafe, Seattle ServSafe, Everett

Ralph Wells Landscaping Ralph Wells 32925 SE Issaquah Fall City Road Fall City, WA 98024-5704 4252226266 ralphwellslandscaping@gmail.com www.ralphwellslandscaping.com Landscape design and installation.

Rocking and waterfalls. Drainage.

Safety Northwest Joe Mullens 12172 SW Morning Hill Dr Tigard, OR 97223-1878 5037097129 jmullens@safetynorthwest.org www.safetynorthwest.org Employee safety, reduce worker’s comp and safety training. Chef’s Club Member Discount: 15% Discount.

Tarmac24 Candi Nicholson 1415 Western Ave Ste 300 Seattle, WA 98119-2098 206.661.7334 candi@tarmac24.com www.tarmac24.com Tarmac24 is an offer system that provides timely, relevant offers to businesses of all sizes. Chef’s Club Member Discount: Tarmac24 will offer WRA members 10% off any purchase of an available offer.

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6/22/2011 4:40:10 PM

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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.

Minimum Wage Members talk back Last fall, we polled WRA members regarding the impact of Washington state’s annually escalating minimum wage.

We asked operators how they would reconcile the 37-cent hourly increase that has since taken effect. 80 percent of members said they would have to raise menu prices, while 70 percent told us they would be forced to reduce employee hours. Additionally, half of all respondents indicated they would have to eliminate or decrease pay raises for back of the house employees.

“During my 20 years as a restaurant operator I’ve experience the effects of weather, increased competition, commodity price increases, traffic revision and higher wages… all of which are beyond my control, yet dramatically impact my business.

Nothing, however, has been as detrimental as the increase in minimum wage.”

WRA member, Bonney Lake

The survey also provided an outlet for more specific feedback, and members responded overwhelmingly.

Here is a sampling of the responses we received from restaurateurs all over Washington.

“Something has to be done.

Where will it stop? At $10 an hour? $15?”

WRA member, Spokane

“As we face the upcoming increase in minimum wage… do not be surprised when you see an increase in unemployment, a decrease in teen workers being able to get a job and more businesses closing.”

WRA member, Spokane

“The problem with minimum wage in the restaurant industry is that it rewards those who are already the highest paid on staff, regardless of performance or longevity of employment” WRA member, Lakewood

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“We employ upward of 350 employees at 7 restaurants in Washington state. Our minimum wage employees make up over 50% of our employee base and regularly work over 250,000 hours per year. This minimum wage increase will amount to annual salary increases of over $100,000. To make up this increased wage I will need to raise an extra $500,000 in sales.”

WRA member, Seattle

“I don’t understand why, in a struggling economy, the state would hit small businesses with, I believe, the largest minimum wage increase ever! Are they looking for small businesses to close their doors? How much can we raise our prices before people stop coming?”

WRA member, Tumwater

“Food costs, energy costs and once again, labor [costs] are crushing the ability of the small independent operators to stay afloat. Five years ago I employed 12 people, now I have 7. “ WRA member, Walla Walla

WRA has it’s

The OWN

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The Washington Restaurant Association has launched a new, exciting way for members to reach potential customers! Join us on our new radio show, DineNW, where we talk about Washington’s restaurant industry, and give listeners a taste of Northwest cuisine.

Listen from noon until 1:00 p.m. every Wednesday on KLAY Radio, 1180 A.M. www.klay1180.com www.facebook.com/dinenorthwest Interested in advertising?

Please contact Shawn Sullivan at shawn@wrahome.com.

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