Washington Hospitality Magazine January 2020 by Washington Hospitality Magazine

January 2020 │ 1

Washington Hospitality Association 510 Plum Street SE Olympia, WA 98501-1587

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Hill Climb 2020 New year, new laws

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EDITORIAL STAFF Publisher, Anthony Anton Executive Editor, Lex Nepomuceno Copy Editor, Iain Woessner Art Director, Lisa Ellefson Contributing Editors: Jacque Coe, Alina Day, Jillian Henze, Morgan Huether, Sheryl Jackson and Nicole Vukonich

Inside

January 2020

EXECUTIVE COMMITTEE Chair: Chad Mackay, Fire & Vine Hospitality Vice Chair: Ron Oh, Holiday Inn Express North Seattle Shoreline EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Haase Chief Financial Officer, Darin Johnson Senior Director of Communications & Technology, Lex Nepomuceno Director of Local Government Affairs, John Lane Director of State Government Affairs, Julia Gorton Director of Membership, Steven Sweeney

510 Plum St. SE Olympia, WA 98501-1587 T 360-956-7279 | F 360-357-9232 wahospitality.org

Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification. Reproduction of articles appearing in Washington Hospitality Magazine are authorized for personal use only, with credit given to Washington Hospitality Magazine and/or the Washington Hospitality Association. Articles written by outside authors do not necessarily reflect the views or positions of the Washington Hospitality Association, its Boards of Directors, staff or members. Products and services advertised in Washington Hospitality Magazine are not necessarily endorsed by the Washington Hospitality Association, and do not necessarily reflect the opinions of the Washington Hospitality Association, its boards of directors, staff or members. ADVERTISING INQUIRIES MAY BE DIRECTED TO:

Stephanie Conway

360-956-7279 stephaniec@wahospitality.org Washington Hospitality Magazine is published monthly for members. We welcome your comments and suggestions. email: news@wahospitality.org, phone: 800-225-7166. Readership: 9,422

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Features 9

Choice selection: Your most popular HUB content

Meet the State Government Affairs team

2019 Legislative Heroes honored at annual awards dinner

The 2020 Legislative Session

The 2020 Legislative Session Preview

L&I adopts overtime threshold of projected $83,356 by 2028

On the Issue: Restrictive Scheduling—The reality on affected employees and employers

On the Issue: The environment and efforts to ban single-use plastics

Bills that did not pass last session and will be back in 2020

On the Issue: The proposed expansion of qui tam lawsuits

On the Issue: Kids menu mandates, in-home kitchen expansion proposals

New year, new laws: What’s new in 2020

Hill Climb 2020

In Every Issue 6

From Your President and CEO

Lex on Tech

Local GA Update

State GA Update

Calendar and New Members

Ask the Expert

MORE THAN

MEDICAL

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President and CEO “I don’t know my legislator—that’s your job.” We’re only as good as the relationships our members have with their individual legislator. I learned this during my first Hill Climb at the association in the mid-1990s. We were at the Red Lion Hotel in Olympia and I didn’t know anybody. The representative from Kittitas County came running up and said, “Is Ben Goldie here?” I knew the name—Goldie is owner of Cottage Café & Fireside Lounge, a landmark in Cle Elum. I said, “I think so.” “Good,” the representative said. “I’ve gotta see Ben. I’m supposed to go to another event, but I’ve gotta see Ben.” A little bit later I saw another legislator who was looking for Geneva Ward from the Sportsman Café and Lounge.

Anthony Anton President and CEO anthonya@wahospitality.org

The legislator said, “I’ve gotta see Geneva. She always does my local event in Spokane. She’s awesome.” A legislator walked up to see if Bill Cheung was there. Bill had the Denny’s in the Kelso area. With this third interaction, it struck me. That’s who we are—hospitality. Yes, we’re the state’s largest employer and a top five political action committee. Yes, we’re a lot of people’s first jobs and an industry of opportunity. But it comes down to relationships. For example, the relationships our members have with lawmakers helps to move the industry forward and makes a difference. In the past few years, our members have secured our sponsor for the short-term rental bill, lobbied the state’s Paid Family and Medical Leave bill and made sure critical hospitality priorities were heard and enacted. If you are at a party, coming for Hill Climb or at a community charitable event and you see your legislator—remember the impact you can make with your legislator. Stop and have a conversation. It’s the people. It’s the real stories. The neighbor connection. Your kids go to school together. You’re in Rotary together. This relationship with your legislator is not a lot different than your relationships with your vendors. Many of you remind us how it’s the vendor who has treated you great, been there through crisis (and helped you with the thing that isn’t their business) who you’re loyal to. It’s these vendors who you respect and ask for advice. That relationship is a bond of trust, and trust leads to conversations that find solutions. Legislators are no different. A larger franchisee told me recently, “I don’t know my legislator—that’s your job.” It’s not going to work that way. It’s the relationships that you build in your community that matter. Our government affairs team members are not likely in the high school gym on a weeknight watching their girls and the legislators’ girls play volleyball together. But you are. Lodging members, your landmark properties are often the single point of pride in a community. Your legislators are as proud of your location as they are of a niece’s or nephew’s accomplishments. Likely, your legislators are already involved in Lion’s Club or Rotary meeting that your property is hosting. Pull up a chair and sit down. Don’t ask them about lodging taxes or minimum wage, ask them how their summer was. Ask the legislator the questions the vendors you love ask you. Start creating the two-way street that helps solutions flow. The 2020 legislative session is a short session, and it’s a great time to work on relationships because a lot less is going to happen than in a long session. Take advantage of this time. Looking forward to seeing you at Hill Climb. 6 │ wahospitality.org

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ARE YOU A HOSPITALITY INDUSTRY ENTREPRENEUR INTERESTED IN SELLING YOUR BUSINESS? IBA, The Pacific Northwest's premier business brokerage firm, has represented business owners in the sale of their privately held companies and family owned businesses since 1975 with knowledge, experience, and a strong professional skill set. We have successfully facilitated sales from Bellingham to Vancouver; Aberdeen to Spokane; and throughout King, Snohomish, & Pierce Counties in Washington. Completed transactions have included restaurants, hotels, bars, franchises, bakeries, espresso businesses, food manufacturing & distribution businesses, wineries, and service providers to the hospitality industry. We have sold single units and chains to individuals, private equity firms, and privately & publicly held companies. As licensed real estate professionals, we have the ability to sell or lease associated real estate as part of our comprehensive representation services. If you are interested in selling your business we would welcome the opportunity to provide an overview of the services we provide our clients. All information provided to IBA is held in strict confidence. 100% of IBA's fees are paid on performance at the completion of a transaction. IBA is commonly recognized as the premier seller representation business brokerage firm in Washington for parties wishing to achieve premium market values in "win-win" transactions while employing "best practices" throughout the sale process. Please Contact Oliver Kotelnikov, IBA's Lead Broker in its Hospitality Transaction Division, at (425) 454-3052 or oliver@ibainc.com for Additional Information. All Questions Welcome.

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Choice selection: Your most popular HUB content By Iain Woessner

This year we launched our Members-only content portal, the HUB, which serves as a one-stop shop for all the need-to-know information and content that can help our members improve their bottom lines, retain their staff and excel in hospitality. If you haven’t checked out the HUB, consider registering. It’s included in your membership and nets you access to tools, webinars, calculators and top-notch informative articles. Here’s some of our top content: Third-party delivery pitfalls Third-party delivery hasn’t just arrived, it’s here, it’s now and Washington restaurants are figuring out how to make it work for their bottom line. With rising labor costs and an increase to the state’s minimum wage on Jan 1. restaurateurs can’t afford to ignore what may be the new normal for the industry. This article draws in expert opinions from four of our members as well as national industry expert reports to give you the best practices to steer toward and the gravest dangers to steer clear of when navigating third-party delivery. How to raise menu prices the right way The art and science of raising menu prices is a daunting one. Our experts recommend how to raise menu prices the right way, and our HUB provides you cost calculator tools, webinars and an in-depth article that draws on industry experts that get into the nitty-gritty of building a cost-effective, profit-generating menu. Five red flags in your restaurant financial statements Effective inventory management and menu pricing are common challenges for restaurant owners of all sizes. Successful owners manage expenses, monitor cost fluctuations and so much more. This article offers an expert’s analysis on smart ways of building profit and loss statements, and breaks down all the components that go into one, giving you critical info to make sure your financial statements are tidy and neat. Motivate employees, make more money Did you know engaging and motivating your employees can start before you even hire them, and costs you nothing? Molding quality workers and retaining good help doesn’t have to be costly or stressful. This article draws in our own Education Foundation as well as hospitality members to speak to their best practices in terms of getting their staff, from front and back of house, management and entry level, engaged with the business’ mission and empowered to see that mission through. 

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January 2020 │ 9

Government Affairs | Local GA Update By Jacque Coe, APR

Spokane election spending brings little change Spokane voters saw more than $1.5 million dumped in various local elections, but the spending brought few changes at city hall. The new administration will stay conservative while the city council retained its moderate-toliberal, veto-proof status.

New faces on the Seattle City Council With seven of nine city council seats up for election in Seattle, the November races were a clear opportunity for change. All three incumbents (Lisa Herbold, Kshama Sawant and Debora Juarez) retained their seats, with four new members joining the city council. Alex Pedersen, newly elected District 4 councilmember, was sworn in on Nov. 26. The other newly elected councilmembers will take their seats in January. Seattle Hospitality for Progress, the political arm of the Seattle Hotel Association and the Seattle Restaurant Alliance, made endorsements in each race, with two endorsed candidates winning election. The election saw record PAC spending, with over $4 million spent to support and oppose candidates by business groups and labor unions. Following a $1 million contribution from Amazon, the election became a national story about progressive values, rather than the district issues voters care about. Seattle’s hospitality community is committed to Seattle’s success and, to achieve that, looks forward to working with the new council toward solutions. The association and its members will remain engaged to hold elected leaders accountable, to communicate the impact of Seattle’s policies on the hospitality sector and to partner in solving some of the most pressing problems facing our city. Here are the final election results: District 1: Lisa Herbold 55.71%, Phil Tavel 43.9% District 2: Tammy Morales 60.47%, Mark Solomon 39.08% District 3: Kshama Sawant 51.82%, Egan Orion 47.69% District 4: Alex Pedersen 51.95%, Shaun Scott 47.69% District 5: Debora Juarez 60.6%, Ann Davison Sattler 39.05% District 6: Dan Strauss 55.65%, Heidi Wills 43.84% District 7: Andrew J. Lewis 52.98%, Jim Pugel 46.58% 

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Former TV news anchor Nadine Woodward led in early results, but her margin of victory for the open mayor’s seat eventually narrowed to just 849 votes over two-term City Council President Ben Stuckart, though she still clenched the win. She will be replacing two-term Mayor David Condon. First-time candidate Cindy Wendell appeared to be following in Woodward’s steps on election night, initially pulling out to what appeared to be a commanding vote lead over City Councilwoman Breean Beggs in the race. However the momentum shifted to Beggs in the following week as more votes were counted. Beggs won by less than 2%. Some city council races were closer than others. Karen Stratton, representing Northwest Spokane, never trailed first-time candidate Andy Rathbun and won by almost seven %. Newcomer Michael Cathcart also never trailed in his tighter race against Timm Benn for an open seat in Northeast Spokane, winning by slightly less than 2%. South Spokane incumbent Lori Kinnear had little trouble with multi-time candidate Tony Kiepe, winning by 37%.  Washington Hospitality Association endorsements help Tacoma candidates The Washington Hospitality Association’s endorsement strategy in Tacoma’s city council elections was a success! Three of our four endorsed candidates won their elections. Incumbent Conor McCarthy, endorsed by the association, won resoundingly, with nearly 70% of the votes. Endorsed candidate John Hines also won a competitive race with 51% of the votes tallied, and incumbent Keith Blocker was victorious with a solid 64% of the vote. Blocker is a consultant, Hines is a facilitator with Tacoma School District dealing with businesses and entrepreneurs and McCarthy is a real estate and estate planning attorney. The three candidates are committed to Tacoma’s business community and addressing problems such as homelessness, the opioid crisis and streamlining government processes. 

Government Affairs | State GA Update By Nicole Vukonich

Isolated workers safety and the new state law A bill passed in the 2019 legislative session and signed into state law requires all employers in hotel, motel, retail, property services or a security guard entity to have completed all the following beginning Jan. 1, 2020: Adopt a sexual harassment policy; Provide specific mandatory antiharassment training to the employer’s managers, supervisors, and employees including; Provide a list of resources to employees to utilize. Resources must include contact information for: 1. The Equal Employment Opportunity Commission 2. The Washington state Human Rights Commission 3. Local advocacy groups focused on preventing sexual harassment and sexual assault Provide a panic button to employees who spend the majority of their working hours alone and are employed as a janitor, security guard, hotel or motel housekeeper, or room service attendant. Are there examples of a policy or list of resources I may adapt to fit my business? Yes. As a member, you have access to the Hospitality Industry Survival Strategies HUB, which includes a robust toolkit specific to this issue. You may log-in via access.wahospitality.org. What is a panic button? A panic button is defined in state law as, “an emergency contact device carried by an employee by which the employee may summon immediate on-scene assistance from another worker, a security guard, or a representative of the employer.” There is no mention in the law about a specific brand or type of panic button you must use. Employers are free to make the choice that best fits for their employees, location and business.

Examples of a panic button that would work under this definition are: a cell phone, walky-talky, or another device through a vendor. The Washington Hospitality Association has a few allied members who offer panic buttons and systems. They are RF Technologies, SoloProtect, TraknProtect, React Mobile, Airista Flow, Inc. and Seecure Inc. What to do if you are called by a company who gives you a quote for a panic button system? This is likely sales call and you do not have to go with this company or the quote you are given. You have until Jan. 1, 2020, to comply with the state law if you have 60 or more hotel rooms. All other businesses have until Jan. 1, 2021, to comply. Please remember that you have options under the state law and do not have to go with one, specific type of system. If your hotel is in Seattle, you likely have different requirements for employee safety devices under a local ordinance. Please double check these requirements. What are my training options for my employees? The Washington Hospitality Association Education Foundation recommends the following sexual harassment prevention training options for employees: For restaurants: ServSafe Workplace For hotels: Sexual Harassment Prevention for Hospitality Industry Employees The Washington Hospitality Association supports employee safety and supports this law. If you have questions about any of the training requirements or how to develop any of the policies listed above, please contact your area coordinator, or the main office at 360-956-7279.  January 2020 │ 11

Vendor Shopping Made Easier—Washington Hospitality Marketplace The marketplace is an online tool for members to find products and services in your area. It can be accessed on wahospitalitymarketplace.com. This tool is an updated and reimagined version of the current website. The marketplace will be ready for member use on Jan. 1, 2020. Finding products and services for your business has never been easier. This updated version features a robust search and filtering capabilities, so you only get vendor results that can service your business. To use the search interface, just type in the product or service you’re looking for, such as carpet cleaning or gasket services. You can further filter your results to only show Washington Hospitality Association members, vendors who offer discounts and vendors who service specific counties. All results contain the business name, website, company description and contact info.

New, coming soon... WAHOSPITALITYMARKETPLACE.COM 12 │ wahospitality.org

What are Google short names and why you need one NOW By Lex Nepomuceno, Executive Editor As business owners, you understand how creating memorable names for things like menu items, hotels and events are important. You know if customers can’t remember a product or property name, they are likely to look elsewhere. This is why Google short names are important. What are Google short names? Have you ever tried sharing the link of your My Business profile? Before, this meant copying and pasting a long, ugly link. Links like these are very unpresentable, making it hard to share them. Google’s short names allow you to convert this long and clunky link into a short and professional one. Google short names allow you to create a customized Google URL. Once you’ve done that, your My Business profile will have a very simple and shareable link. Depending on the name you choose, your URL will look like this: g.page /shortname. When people click your short name link, they will arrive at your My Business profile. Here, they will see your business name, contact information, customer reviews and location on Google Maps. Everyone who clicks this link can get all the information they need on your business. This makes it the perfect link to put on any marketing material you have. What are the benefits of Google short names? The benefits of getting a short name are many. Without a Google short name, you would have to either put in all the information or give a very long and unpleasant link. It’s much better to give a link that has the authority of Google with your business name on it.

Finally, Google’s short names feature is very new. You can say that it is still in its beta testing period. So we can expect improvements and new features to enjoy very soon. Why you need a short name NOW The best time to get a Google short name is now. The reason for this is because, like usernames, no two businesses can have the same short name. Since almost every business in the world has access to My Business, it’s likely there are some with similar names as yours. If you wait for short names to blow up, you may find yourself forced to settle for one that isn’t ideal. You’ll find yourself with a short name that has little to do with your business, or you’ll have a short name that looks more like a username than a business tag. This is why it is wise to claim your short name as soon as possible. Google is ubiquitous. Whether you run a local hotel or a local restaurant, having a good presence with Google is very important. How to get a short name To set your business short name, go to your Google My Business dashboard. You will find your short name between your telephone number and website information. Getting a new short name is as simple as clicking “edit” and typing in the name you want. Once you set your short name, it will submit to Google for review. This only takes a few minutes. TIP Once that’s verified, your short name will go live.

One of the biggest challenges we face is that there are so many scams and spam online. That’s why when someone sends us a long link, we tend to have some doubts. A lot of times, this can be the difference between someone clicking your link or junking it. With short names, you will have a very clean and trustworthy link. Also, to get a short name, your business must be verified by Google, so your potential customers will see you as trustworthy when you use a short name.

Before setting your short name, take some time to think of a good name. You are only allowed to change your short name three times a year, so don’t waste it. Also, you can’t just put anything you want. Google’s regulations say that your short name has to be associated with your business. They also recommend you put your location on your short name to make it more specific. You want a name that is short, specific and easy to remember.

Aside from that, Google’s short names will also get you more reviews. Just add a “/review” to the end of your short name link, and a review dialog box will appear in front of your profile. This lets people rate your business from 1-5 stars and write a review. Getting reviews on your My Business profile is a great way to get better SEO. And giving people your short name with “/review” attached to it is an easy way to get more reviews.

If you don’t see an option for a short name, don’t panic. As of now, not all businesses have access to this feature. It is very new and Google is rolling it out slowly. If you are one of the lucky few, then set your short name right away. If not, be patient, because it will be available to everyone soon. 

This brings us to our next point: Google short names build trust with your clients.

Google’s “My Business” tool allows business owners to manage their online presence. This makes it a lot easier for customers to find and learn about their businesses. However, a key element in finding a website is having an easyto-remember address. If you’ve already verified your business on My Business, the next step is to get a short name. Google short names make sharing your business online a lot easier. Released earlier this year, there are a lot of business owners that aren’t using this feature yet. If you are one of them, you should change this as soon as possible.

January 2020 │ 13

Meet the State Government Affairs Team Julia Gorton, director of State Government Affairs, has been with the association for more than a decade, and oversees the association’s state advocacy and political programs. Her most recent accomplishment has been securing regulatory tax parity for short term rentals. In 2019 she was appointed to the Keep Washington Working Work Group and sits on the Paid Family & Medical Leave Advisory Council. Julia sits on the board of Enterprise Washington, an organization that seeks positive political outcomes for the business community in Washington. Julia graduated from Western Washington University with a B.A. in political science and social studies, and currently lives in Olympia, with her husband, daughter and dog. Julia and her husband are licensed foster parents, and she volunteers on the board of the Olympia Hands On Children’s Museum. juliag@wahospitality.org Samantha Louderback, senior manager of State Government Affairs, has been with the association and on the team since 2015. Samantha leads the association’s efforts on policy that relates to the environment, food safety, human trafficking prevention, workforce development, food packaging, workplace safety and an assortment business issues. She also is the lead and expert on all things regarding the Department of Health and represents the association on a number of state wide stakeholder groups and committees. Samantha has bachelor of science in environmental studies and a bachelor of science in public policy from Central Washington University. She currently lives in Tacoma with her husband and their dog, Dax. samanthal@wahospitality.org

Katie Doyle, State Government Affairs manager, has spent over six years in the restaurant industry both before, and during her time at the association. With a BA in political science from Seattle University and over five years at the association, she is excited to take on the new role and work on alcohol policy while still assisting in maintaining a robust grassroots advocacy program. Her genuine passion for hospitality has helped strengthen and grow relationships with members. Under her management, effective engagement is at an all-time high. Outside the office, she spends most of her time hiking and climbing in the great outdoors of the Pacific Northwest. katied@wahospitality.org Nicole Vukonich, state communications manager, joined the State GA team in late 2017. In this role, Nicole assists the government affairs team with all their public relations requests and is a liaison with the media. She spent five years (and many special sessions) working in the Washington State Senate as a communications specialist and broadcast coordinator. Prior to working in the Senate, she served as the communications coordinator for Gov. Chris Gregoire. Nicole earned a Master of Public Administration with a concentration in public policy from The Evergreen State College and holds a bachelor’s degree in Political Science and French from Seattle University. nicolev@wahospitality.org

With additional support from our contract lobbyist team:

Denny Eliason, Alliances Northwest

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Kim Clauson, Alliances Northwest

Trent M. House, Trent M. House Government Relations

Meet the Local Government Affairs Team John Lane is the association’s first director of Local Government Affairs. He has a law degree from Seattle University and has extensive public policy experience, including serving as a Washington state assistant attorney general and as the Office of Financial Management’s legislative and legal counsel. John has also served as a senior policy adviser to Gov. Jay Inslee on public safety and government operations and as an executive policy adviser to Gov. Christine Gregoire. johnl@wahospitality.org Anna Boone, senior manager of Local Government Affairs, is responsible for advancing the interests of the hospitality sector in Seattle and King County. Anna advocates on a wide range of issues impacting members, including labor, public health, public safety, taxes, tourism and transportation. She is also responsible for building and participating in coalitions of stakeholders aligned around shared policy goals in the region. Anna joined the team in January 2017 with a decade of experience in Washington politics. Prior to her role with the association, she established the local government affairs practice at a public affairs firm, where she lobbied on behalf of clients on regulatory and labor issues. Anna also has a political campaign background that includes running former Congressman Norm Dicks’ 2010 reelection campaign. She graduated cum laude and with honors and distinction from the Politics Department of Occidental College in Los Angeles. annab@wahospitality.org Tobby Hatley, Local Government Affairs manager, has more than 30 years of media and public affairs experience having worked in TV, radio print, politics and marketing. He has bachelor’s degree in radio and TV management from Eastern Washington University and a master’s degree in communications with an emphasis in journalism and public affairs from The American University in Washington, D.C. Tobby learned the ins and outs of politics, legislative issues and public affairs while covering state and local governments in Washington, Idaho and Montana as well as the U.S. Congress in Washington, D.C. tobbyh@wahospitality.org

Joe Bushnell, Local Government Affairs coordinator, joined the team in 2017 as the association’s local TacomaPierce County government affairs coordinator. With over a decade of experience in the Marine Corps and a lifelong resident of Tacoma, Joe brings a breadth of experiences to the team and unique perspectives on local issues. Past work Joe has completed includes working in campaign management in Pierce County and in the Washington State Senate in 2016. Currently, Joe represents the membership by serving on several boards throughout the region including the Travel Tacoma – Mt. Rainier Tourism & Sports board of directors and the Tacoma-Pierce County Food Safety Advisory Board. Joe has a bachelor’s degree from The Evergreen State College with an emphasis in political science. joeb@wahospitality.org Teddi McGuire, Local Government Affairs assistant coordinator, joined the association in October 2017. Prior to joining the team, Teddi worked in economic development at the city of Federal Way and spent time abroad in Belfast working for the U.S. Consulate. She has a bachelor’s degree in political science from Gonzaga University and an MBA from Seattle University. teddim@wahospitality.org Jacque Coe, APR, public relations manager, Seattle, is a communications strategist with over 20 years of experience in communications, public relations, news media and issues management. Her first career was in television news as a journalist for TV stations throughout the Northwest, most recently KING-TV. She has served as the chief communications officer on executive teams for Washington’s Lottery, the Dairy Farmers of Washington, as well as the Bellevue and Seattle school districts. Jacque is nationally Accredited in Public Relations (APR) by the Public Relations Society of America (PRSA), and serves at the local, district and national levels. She served as the 2019 president of the Puget Sound chapter of PRSA. jacquec@wahospitality.org

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2019 Legislative Heroes honored at annual awards dinner In July, the Washington Hospitality Association announced the 2019 Legislative Heroes: Sen. Mark Mullet, D-Issaquah, Sen. Curtis King, R-Yakima, Rep. Cindy Ryu, D-Shoreline, Rep. Gina Mosbrucker, R-Goldendale. These legislative heroes were selected for their demonstrated commitment to the hospitality industry in Washington state during the 2019 legislative session. The heroes were recognized at the association’s annual Stars of Hospitality Awards Dinner in November. The 2019 Legislative Heroes for Hospitality are:

Sen. Mark Mullet, D-Issaquah

As the Democratic state Senator from Issaquah, owner of Ben and Jerry’s Ice Cream locations and a Zeeks Pizza, Sen. Mark Mullet knows hospitality. This session, Mullet went above and beyond to speak with members at Hill Climb and helped prepare them for a busy day of meetings with legislators. This session, Mullet was a champion for the association’s top priority short-term rental bill as the chair of the Senate Financial Institutions, Economic Development & Trade Committee. He also led the Senate Democrats during session on other priority hospitality-related industry topics. In the Senate, Mullet is also a member of the Ways & Means Committee and the Early Learning & K-12 Committee. Thank you, Sen. Mullet, for being a 2019 Legislative Hero for Hospitality.

Sen. Curtis King, R-Yakima

Sen. Curtis King, R-Yakima, is just about as hospitable as they come. He has earned our industry’s appreciation this year for his support and willingness to assist our industry as the ranking Minority Member on the Senate Labor & Commerce Committee. King was a champion of the industry on many bills and topics including safety devices for isolated workers, Liquor Control Board accountability, restrictive scheduling, employment and business regulations, diaper changing stations and more. Specifically, King was consistent in his thoughtful and pragmatic approach to finding solutions to complex policy issues. In addition to his duties on the Labor & Commerce

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Committee, King also serves as the ranking Minority Member of the Senate Transportation Committee and as a member of the Rules Committee. Thank you, Sen. King, for being a 2019 Legislative Hero for Hospitality.

Rep. Cindy Ryu, D-Shoreline

When it came time to nominate and select the 2019 Legislative Heroes, Rep. Cindy Ryu, D- Shoreline, immediately came to mind. As the sponsor and champion of the association’s top priority shortterm rental bill, Ryu went above and beyond to ensure the bill’s passage this year. Now with a law on the books that holds short-term rental operators and platforms to the same tax regulations and consumer safety provisions as lodging establishments, the industry is more equal. In the House of Representatives, Ryu is the chair of the Housing, Community Development & Veterans Committee, is a member of the Appropriations Committee and the Consumer Protection & Business Committee. She is also a board member of the Washington Tourism Marketing Authority. Thank you, Rep. Ryu, for being a 2019 Legislative Hero for Hospitality.

Rep. Gina Mosbrucker, R-Goldendale

Rep. Gina Mosbrucker, R-Goldendale, is no stranger to hospitality. In addition to serving in a leadership position in the House as the minority vice-caucus chair, Mosbrucker is also the CEO and general manager of Quality Inn & Suites Hotel in Goldendale. As the ranking Republican on the House Labor and Workplace Standards Committee, her deep understanding of the hospitality industry and the perspective of a small business owner proved invaluable this session. When issues like restrictive scheduling and other labor, business and employment regulations were before the committee, Mosbrucker proved herself to be a champion for the industry and as someone with a solutions-oriented approach. Mosbrucker also serves on the Appropriations Committee and the State Government and Tribal Relations Committee. Thank you, Rep. Mosbrucker, for being a 2019 Legislative Hero for Hospitality. The 2020 Legislative Heroes will be determined following the end of the legislative session. Look for the announcement in the July Legislative Review issue. 

2020

The Legislative Session A Short Session:

First Day of Session:

Hill Climb and Taste Our Best:

Jan. 13

Jan. 27

Updates to the biennial Transportation Budget

Updates to the biennial Capital Budget

scheduled for

60-days Needed: Updates to the biennial (two-year) State Operating Budget

Senate

House of Representatives

49 total members

28 Democrats Governor Jay Inslee, D

98 total members

21 Republicans

57 Democrats

41 Republicans

New Legislators for the 2019/2020 Biennium 6/49

Senate

21/98

House of Representatives

Leadership

Senate Majority Leader: Andy Billig, D – Spokane

Senate Minority Leader: Mark Schoesler, R – Ritzville

Speaker of the House: Laurie Jinkins, D – Tacoma

House Minority Leader: J.T. Wilcox, R – Yelm January 2020 │ 17 January 2020 │ 17

The 2020 legislative session preview By: Nicole Vukonich When the new, 60-day legislative session begins on Jan. 13, all the bills from last session will be alive once more, as this is the second year of the two-year cycle. This means that proposals that did not make it through the legislative process will be in play again. We will need your support and will call on you during the session to share your hospitality story. For the first time in 20 years there will be a new Speaker of the House, which will make this session an important one. Elected by House Democrats in July, Speaker Laurie Jinkins of Tacoma holds the distinction of being the first woman and first open lesbian to serve as Speaker of the House in Washington state history. There are not any other planned leadership changes among Senate Democrats led by Sen. Andy Billig of Spokane, Senate Republicans led by Sen. Mark Schoesler of Ritzville or House Republicans led by Rep. J.T. Wilcox of Yelm. With 57 Democrats in the House and 28 Democrats in the Senate, the balance of power in the legislature has shifted to the left. What does this mean for hospitality? To put it simply: this shift left brings opportunities and challenges for the coming short session. The Washington Hospitality Association State Government Affairs Team has positioned the industry well for this shift and has founded its reputation on being solutions-oriented and collaborative with all members of the legislature. This session, the State Government Affairs Team will focus on protecting our workforce from additional labor requirements and helping our communities thrive. We remain committed to continuing as an industry that delivers great, local personal experiences, helps our employees succeed, is solutions-oriented and helps our communities to thrive. Each December the Government Affairs Committee meets to approve the priority issues matrix that guides the team through the session. Those issue areas include:

Communities

Support reasonable solutions that build strong communities and help the industry thrive.

As the hospitality industry, we are proud to offer jobs at every level of employment —from first jobs, second chances within the workforce to lifelong careers. We want to take care of our employees and make sure they have an opportunity to have affordable housing and live near their jobs if they choose. This session we will continue the work started last session to monitor the conversations surrounding homelessness in local communities and participate where we may. Additionally, in the industry we see the need for increased mental health services and the challenges of the opioid epidemic. We believe that there are reasonable solutions to these issues and want to be at the table so we can continue to help our communities thrive.

Employment

Find reasonable solutions to employee needs that allow the hospitality industry to continue to operate, serve the community, people and careers.

We care about our employees, the reasons why they joined our industry and why they continue to stay. This session we will continue to take measures to protect our workforce. We know our employees are, on average, younger, more mobile and more flexible compared to those employed in other industries. We will continue to advocate for our workforce as we help prepare them for a bright future.

Environment

Ensure new environmental and sustainability requirements allow hospitality businesses to reasonably comply.

With an emphasis on caring for the environment and reducing pollution, the hospitality industry is already familiar with finding alternatives to single-use plastics and removing plastic bags and other single-use plastics from its supply chain. This culture shift is happening quickly within the hospitality industry and is changing the ways of doing business. This session, we will continue to be on the cutting 18 │ wahospitality.org 18 │ wahospitality.org

edge of environmental safety based on science and seek to maintain flexibility within the industry.

Health & nutrition

Ensure public safety requirements are applied consistently across hospitality sector businesses, are based on science and allow for consumer choice.

In 2020, the state Department of Health will be adopting the revised Washington State Retail Food Code. As stakeholders in this 18-month process we have and will continue to advocate on behalf of our members during this process. At the legislature, we will continue to monitor any bills related to health and nutrition, like the default beverages for kids meals or expansion of inhome kitchens, to ensure our members can be free to make the best decisions for their customers.

Regulatory & business operations

Create and maintain efficiencies in the regulatory process allowing hospitality businesses to thrive.

Without a clear resolution to consumer data privacy legislation last session, we will continue to participate in discussions surrounding this issue. We want to ensure that our members retain the ability to offer loyalty programs and market their business to their customers. Consumer data privacy was a hot topic last session and may continue that trend this session. Additional regulatory and business topics include issues relating to alcohol regulations, gambling and anti-human trafficking regulations and education.

Rulemaking with state agencies Continue participation in the rulemaking processes to position the hospitality industry for success.

Carrying over the extensive work we have completed to implement the state’s Paid Family and Medical Leave program, we continue to hold a seat on the Paid Family & Medical Leave Advisory Council. This year will usher in the final phases of the rulemaking process. Additionally, we have remained heavily engaged with the state’s updates to the overtime rules under the state Minimum Wage Act. In agreement with the larger business community, we believe that the phased-in schedule for the new salary threshold is too high at 2.5 times the statewide minimum wage beginning in 2021.

Taxation

Ensure hospitality businesses are taxed fairly; find opportunities to reduce the tax obligation to stimulate economic growth.

Last session, the state legislature broke new ground by passing the first state operating budget to surpass the $50 billion mark. As a short session, this legislature will look to adjust that budget, and it will be our job to play defense against any new taxes. One proposal likely to return is a capital gains tax. We know that your family businesses are deeply important to your future and we want to protect your investment and your interests. We need a business climate that allows you to survive and thrive, not drown you with additional tax burdens.

Tourism and shortterm rentals

Create a robust tourism marketing program that is supported by the state, ensuring that businesses that provide accommodations are held to the same standards and provide ROI.

After passage of last session’s short-term rental parity bill, we want to keep up the momentum in this issue area. We will continue to advocate for funding to the Washington Tourism Marketing Authority, represent industry interests with the Washington Tourism Alliance and promote our work on local lodging tax education with lawmakers. As the hospitality industry, we play an essential part in drawing tourists to stay in our hotels and eat in our restaurants as they are welcomed to our state.

Workforce development & safety Find public partnerships/support to train and develop programs to strengthen the workforce.

Workforce development will continue to be an important issue area for the Washington Hospitality Association. This means that we will seek support for public/private partnerships and opportunities. We continue to hear that the labor shortage within the industry remains to be a top issue for our members. In building a trained and prepared workforce today, we are building the owners and operators of tomorrow. 

January 2020 │ 19 January 2020 │ 19

ON THE ISSUE:

L&I adopts overtime threshold at 2.5 times the minimum wage By Nicole Vukonich The Department of Labor & Industries announced in December the adoption of rules to update the Executive, Administrative and Professional (EAP) exemptions under the Washington State Minimum Wage Act. The adopted rules propose a new overtime salary threshold set at 2.5 times the statewide minimum wage and a phase-in period of eight years beginning July 1, 2020. On Jan. 1, 2020, small (0-50 employees) and large (51+ employees) businesses will be subject to the new federal overtime threshold, which is currently set at $684 per week or $35,568 per year. After that beginning July 1, 2020, the state overtime threshold will grow according to business size, ending at 2.5 times the 2020 minimum wage. By 2028 at full implementation the overtime threshold will be approximately $83,356 per year. While we appreciate a longer phase-in period than what was proposed in the last draft rules, we still believe a threshold of 250% of minimum wage is inappropriate.

The hospitality industry is proud to provide jobs at all levels – from first jobs, second chances and lifelong careers. Key to this industry are the opportunities in middle management as people advance and gain more skills. A salary threshold at this level will harm our career ladder and employees who are ready to advance into the next stage of their career. We are disappointed the Department ignored our request to first examine the impact of the rules on our workforce before adopting another experiment for Washington’s small businesses. As Washington Hospitality Association members thank you for your engagement and willingness to provide input on this issue over the last 20 months of the rulemaking process. We submitted more than 245 personalized comments to L&I, attended public hearings across the state and talked to local lawmakers about this issue. The Washington Hospitality Association will continue to work with the rest of the business community to pursue options in response to L&I’s action.

New salary threshold implementation schedule

Salary threshold for overtime exempt workers is a multiplier of state minimum wage for a 40-hour workweek When the rule takes effect

July 1, 2020

Jan. 1, 2021

Jan. 1, 2022

Jan. 1, 2023

Jan. 1, 2024

Jan. 1, 2025

Jan. 1, 2026

Jan. 1, 2027

Jan. 1, 2028

For employers Multiply minimum wage with 1-50 by ... employees

1.25x

1.5x

1.75x

2.25x

2.5x

$675 ($35,100)

$827 ($43,004)

$986 ($51,272)

$1,008 ($52,416)

$1,177 ($61,204)

$1,202 ($62,504)

$1,382 ($71,864)

$1,412 ($73,424)

$1,603 ($83,356)

1.25x

1.75x

2.25x

2.5x

$675 ($35,100)

$965 ($50,180)

$986 ($51,272)

$1,152 ($59,904)

$1,177 ($61,204)

$1,353 ($70,356)

$1,382 ($71,864)

$1,569 ($81,588)

$1,603 ($83,356)

40,000

90,000

107,000

136,000

155,000

185,000

205,000

238,000

259,000

Projected Weekly salary (Annual) threshold For employers Multiply minimum wage with 51 by ... or more employees Projected Weekly salary (Annual) threshold Total Cumulative employees estimate affected

Note 1: Salary projections after 2020 are based on an estimated Consumer Price Index for Urban Wage Earners and Clerical Workers. Note 2: This table does not apply to computer professionals paid by the hour who have higher minimum wage multipliers. Table courtesy of the Washington Department of Labor & Industries. 20 │ wahospitality.org

ON THE ISSUE:

Restrictive scheduling— The reality on affected employees and employers By Nicole Vukonich

In the time since the issue of restrictive scheduling was published in this magazine earlier this year, many excellent conversations surrounding the possibility and realities of a statewide restrictive scheduling mandate have been had. As a refresher, lawmakers at the state level are considering a proposed scheduling law (HB 1491/SB 5717). This proposal would go further than Seattle’s Secure Scheduling Ordinance and would affect hospitality businesses with more than 250 employees and 40 locations worldwide, or franchisees with more than 25 employees. Here are some of the ways this proposal would affect employees: Eliminates their opportunity to work doubles and close/open shifts by requiring 10 hours of rest between shifts and provides no opt-out abilities for workers who want those shifts; Requires employees to provide schedule requests 21 days in advance and removes the flexibility that our industry is used to. Currently, employers can help cover a shift if an employee asks to change shifts or cancel a shift last minute. Under this law, employers and/or managers would not be allowed to help or assist in finding a replacement without a penalty. Any employer-requested schedule changes after the schedule has been posted entitles employees to additional pay including one hour of regular pay for adding hours, changing the date or start or end time and one half the regular pay for any scheduled hours not worked, including on-call hours; Scheduled shifts will not be changed in any way. For example, if employees are scheduled for four hours, they will work for four hours even if the business is not busy. This may also apply to shifts where they are not needed. In the event the business is slow, an employee

may still be required to work making base rate with no customers and no opportunity for tips. The hospitality workforce is already collaborative and depends on successful people-to-people interactions. As an employee, how would this proposed state law impact them? While on its surface this proposal seems like one that would benefit employees, there are additional impacts to think about too. Advanced notice of schedules might allow employees to plan their schedules better, however, they may lose the flexibility they currently enjoy. In places that have scheduling laws in place, the data after the first year of implementation says that while employees get more advanced notice, the flexibility in schedules and number of available hours decreases, especially for part-time employees, which translates into less income. If you work for a small employer right now, you may decide to move on at some point to a location that would be affected by restrictive scheduling. Once a law of this magnitude is passed, it is easier for the legislature to make small changes that might include smaller employers in the future. With less flexibility in the industry it logically follows that it will become even more challenging to hire people who want to work in the hospitality industry. We know that schedule flexibility is one of the main reasons people choose to work in hospitality and removing that cornerstone creates a lose-lose situation for employees who want flexible schedules and employers who create jobs. 

January 2020 │ 21

ON THE ISSUE:

The environment and efforts to ban single-use plastics According to the United Nations Environment Program, researchers estimate that more than 8.3 billion tons of plastic has been produced since the early 1950s and about 60 percent of that plastic has ended up in either a landfill or the natural environment around the world. With a heightened sense of urgency to remove pollutants and garbage from the natural environment the Washington State Legislature is again considering proposals to eliminate single-use plastic waste. During the 2019 legislative session there were efforts to ban singleuse plastic straws, plastic bags, packaging, utensils and condiment packages. While these proposals did not make their way to the governor’s desk

to be signed into law, with the start of a new session these bills will be alive once more. Following the direction of the membership, the State Government Affairs Team continues to work to find solutions that are based on science and address a member’s ability to reasonably comply with the law. One aspect of these laws that remains important is statewide preemption. This means that whatever state law is adopted, it would set one, statewide standard instead of having separate requirements in different cities that have adopted their own versions of the environmental protections. 

Bills that did not pass last session and will be back in 2020 While these bills did not make it to the finish line last session, they will be alive again when the legislative session convenes Jan. 13. Establishing the Secure Choice Retirement Savings Program (Senate Bill 5740) The Secure Choice Retirement Savings Program would set up a public/private retirement savings option for small employers and create an opt-out option for employees. The idea being that for many small employers, setting up an individual retirement savings program is too costly, therefore leaving thousands of employees without any savings for retirement down the road. Although this bill did not pass last session, it opened discussions about employee readiness when it comes time to retire.

22 │ wahospitality.org

Adding diaper changing stations to restrooms (House Bill 1223/ Senate Bill 5156) Last session, the issue of placing diaper changing stations in restrooms accessible to men and women in restaurants with an occupancy of 60 or more and a children’s menu, again returned. The Washington Hospitality Association supports providing a safe environment for even the littlest guests, which is why, after working with the sponsors of the bill in the House and Senate, the State Government Affairs Team was able to update the bill so it would apply to new construction and significant restroom renovations and a phase-in for existing restaurants. During the interim, the team continued to work with the sponsors of the bills to find common ground and a solution on this issue. 

ON THE ISSUE:

The proposed expansion of qui tam lawsuits Qui tam is a Latin phrase meaning, “[he] who sues in this matter for the king as well as for himself.” Boiling it down, qui tam most commonly refers to a whistleblower lawsuit relating to fraud, normally Medicaid fraud under the Medicaid Fraud False Claims Act. The Washington State House of Representatives considered Substitute House Bill 1965 last session, which would have created the Worker Protection Act, allowing any person, corporation, association or other legal entity or local government in the state to bring a qui tam lawsuit or action in court for the enforcement of employment laws under the Department of Labor & Industries. The Washington Hospitality Association was and will continue to be interested in this bill because if passed, it would allow any group or entity to sue on behalf of an employee for any labor law dispute. There are already processes in place to address any issues with existing labor laws and is the job of the enforcing agency. During the 2019 Legislative Session, the bill advanced out of the House policy committee but did not make it beyond. The Washington Hospitality Association opposed this bill and will continue working with a broad coalition of the business community to find solutions on this complex issue. 

ON THE ISSUE:

Kids menu mandates, in home kitchen expansion proposals After the fall Committee Assembly days in the state legislature, two issues rose to the attention of the State Government Affairs Team. The first is a proposal to place state mandates on the default beverage options for kids meals as milk, milk substitutes or water. Currently, parents and guardians have the option to select their kids’ beverages when they go out to eat. The State Government Affairs Team is working to find solutions to keep even the littlest guests healthy. The second proposal is related to authorizing the expansion of inhome kitchen use for the preparation and cooking of meals for public consumption. The Washington Hospitality Association has been an active member on the Food Safety Advisory Committee and engaged with the process to update the state’s food code. Food and guest safety are a top priority. If there is an expansion of in-home kitchens, food safety procedures should be to the same standards. The State Government Affairs Team is tracking these issues and meeting with the relevant stakeholders to find solutions to these policy proposals. 

January 2020 │ 23

New year, new laws: What’s new in 2020 By Nicole Vukonich

Statewide minimum wage increases to $13.50 In 2016, Washington state voters passed Initiative 1433, which is significant because the final phase-in of the statewide minimum wage will be implemented on Jan. 1, 2020. In all areas that do not have a local minimum wage, which also increased, the statewide minimum wage increased by $1.50 to $13.50 per hour. This is the final phase-in of a four-year proposal that saw the minimum wage increase from $9.47 in 2016 to now $13.50 in 2020. The statewide minimum wage will be increased for inflation beginning in 2021. Paid Family and Medical Leave benefits begin Eligible employees are now able to use up to 12 weeks, capped at a total of 16 weeks per 12-month period, of Paid Family and Medical Leave for qualifying life events. This includes the birth or placement of a new child, a serious illness of a family member, a personal and serious medical issue or disability, recovery of childbirth or pregnancy complications and military exigency. What does this mean for employers? All employers must notify employees of the program and their rights. The Washington State Employment Security Department is prepared to handle all incoming claims for leave beginning on Jan. 1. Employees will need to create an account with the Employment Security Department to submit their leave requests, formally notify their employer of their leave, upload documents and file claims. Employees will not receive their weekly claims benefits while on leave unless they set up an account. There are step-by-step instructions online at wahospitality.org. Isolated workers’ safety and the state law A bill passed in the 2019 legislative session and signed into state law requires all employers in hotel, motel, retail, property services or a security guard entity to: Adopt a sexual harassment policy;

24 │ wahospitality.org

Provide specific mandatory anti-harassment training to the employer’s managers, supervisors, and employees including; Provide a list of resources for employees to utilize. Resources must include contact information for: The Equal Employment Opportunity Commission, The Washington State Human Rights Commission, local advocacy groups focused on preventing sexual harassment and sexual assault. Provide a panic button to employees who spend the majority of their working hours alone and is employed as a janitor, security guard, hotel or motel housekeeper or room service attendant. In the state law there is no mention about a specific brand or type of employee safety device you must use. Employers are free to make the choice that best fits for their employees, location and business. If the business is in a location with different safety device requirements than the state, the business must comply with local laws and requirements. The Washington Hospitality Association has training and allied members who are ready to help you comply with the law. Paid Sick Leave: a reminder The beginning of a new year is a good time to review your policies, especially paid sick leave. Paid sick leave was implemented statewide in 2018 and is a requirement of all employers regardless of size. This leave is different than Paid Family and Medical Leave, which is a more long-term type of leave. Paid sick leave applies to every employer regardless of size and must be accrued at a rate of at least one hour of leave per every 40 hours worked. Employees may carry over up to 40 hours of paid sick leave per year. Employees may use their accrued paid sick leave to care for themselves or a family member, when the employee’s workplace or their child’s school or daycare has been closed by a public health official for any health-related reason, for absences that qualify under the state’s Domestic Violence Leave Act and for other purposes as allowed by the employer. Employers may select to be more generous with their paid sick leave accrual rate and carry over policy if they choose. 

The industry that serves. People | Careers | Communities

HOSPITALITYHILLCLIMB.ORG

January 2020 │ 25

Hill Climb 2020

Washington hospitality: People, careers, community – the industry that serves We are Washington hospitality. We are in this together as one industry and are the faces of the largest private employer in the state.

determination, perseverance and grit are what legislators need to continue to hear this year during Hill Climb and the Taste Our Best Legislative Reception.

At Hill Climb and the Taste Our Best Legislative Reception we get to showcase to the legislature what we in the industry already know: We care about people - our employees and our guests. We strive to provide the best possible experiences for all. We are an industry of opportunity. We are there every step of the way - from first jobs, second chances in the workforce to lifelong careers. We depend on a flexible and prepared workforce to help us succeed. We strengthen our communities. Washington hospitality businesses across the state are invested in ensuring our communities thrive. From sponsoring youth sports teams, raising money for homelessness and donating food and time to local charities, Washington hospitality gives back. We approach industry challenges together. We are engaged and focused on delivering solutions and seek to find the right answers together.

Participation at Hill Climb is critical to protecting the hospitality industry during this long session and during creation of the next two-year state budgets. Your stories of how you rose through the career ladder and the opportunities you earned along the way will help us create the narrative and share what we in the industry already know. We care about our people, providing careers, and strengthening our communities.

Every Washington Hospitality Association member has a unique story to tell of how they got started in the industry. We know that industry-wide, 9 out of 10 owners and operators started at the ground level and worked their way up the career ladder to where they are today. These stories of

We are proud to be part of an inclusive industry that is woven into the fabric of our state. We hope you will register today to be part of the story of hospitality in Washington state.

26 │ wahospitality.org

This year’s Hill Climb will focus on restrictive scheduling and the cost of doing business in Washington as the topics shaping the narrative of the day in addition to sharing your hospitality story. The State Government Affairs Team would like to invite you to bring key members of your staff with you to provide additional voices and experiences in the industry. Registration for the events is free and open to all interested members and their staff.

HOSPITALITY

CAREERS

NAVIGAT R Show your employees the many pathways they can take to a long-term hospitality career.

OWNER HOTEL GENERAL MANAGER RESTAURANT MANAGER EXECUTIVE CHEF FINANCIAL CONTROLLER DIRECTOR OF REVENUE

WHAEF.ORG/CAREER January 2020 │ 27

INDUSTRY CALENDAR January/February SERVSAFE® MANAGER Jan. 13

Harbor Foodservice Kent

Jan. 16

Bargreen Tacoma

Jan. 23

US Foods Spokane

Feb. 4

Bargreen Seattle (SODO)

Feb. 10

US Foods Everett

View full class list and register at: whaef.org//training-schedule 360-956-7279

MEETINGS Jan. 7

Board Development Call

Jan. 7

Executive Committee Meeting

Jan. 21

Finance Committee Meeting

Jan. 21

HFTP Meeting

Jan. 28

Board of Directors Meeting

Jan. 29

MSC Board

Jan. 29

Executive Committee Meeting

Jan. 29

Education Foundation Board Meeting

Feb. 4

Executive Committee Meeting

Feb. 12

MSC Sub-Committee Meeting

Feb. 12

Retro Trust Meeting

Feb. 25

H.I.H.I.T. Trust Meeting

UPCOMING EVENTS Jan. 27

Hill Climb and Taste Our Best

Feb. 1

Seattle Evening of Hope Black & White Ball

Mar. 14

ProStart Invitational 2020 @ Hotel RL Olympia

28 │ wahospitality.org

NEW MEMBERS 19th Hole Bar & Grill, Bremerton Agave Cocina & Tequilas, Seattle Bar Taglio, Seattle Belltown Pizza, Seattle Bertoglio’s Pizza, Yelm Charlie P’s, Spokane Valley Chick Fil A, Federal Way Coast Hilltop Inn, Pullman Courtyard by Marriott – Northgate, Seattle Crabtree Kitchen + Bar, Poulsbo Cyclops Cafe & Lounge, Seattle Dillingers Cocktails & Kitchen, Olympia Doughlicious Bakery, Spokane End Zone Sports Pub, Port Orchard Fairfield Inn by Marriott, Kennewick Fountain Café, Port Townsend Garden Coffee & Local Eats, The, Spokane Valley Gig Harbor Golf Club, Gig Harbor Grizzly Den, Hoquiam Hampton Inn & Suites Spokane Downtown, Spokane Hampton Inn, Ellensburg HF Dugout LLC, Richland Itsumono, Seattle Johnny Mo’s Pizzeria, Seattle

Kimberly’s Deli at Perry Tech, Yakima Kuni’s Thai Cuisine, Spokane Logan’s, Roslyn Maxwell House, Spokane Michael’s Seafood & Steakhouse, Port Angeles Mira Flats, Bellevue Moksha, Bellevue Pentagon Bistro & Martini Bar, Liberty Lake Pine Tree Bar & Grill, Westport Red Lion Hotel, Bellevue Residence Inn, Renton Residence Inn, SeaTac Roanoke Park Place Tavern, Seattle Rusty Elbow Pub & Grub, Kent Safura’s Mediterranean Cuisine, Lacey San Kai, Edmonds Savory Faire, Montesano Shanasheel Restaurant, Kent Shujack’s Bar & Grill, Elma Sonya’s, Seattle Taste of the Caribbean, Seattle That One Place, Port Orchard Tio’s Taqueria/Spokanewich, Spokane Tony’s Pizza, Bremerton TT’s Old Iron Brewery & BBQ, Spokane Valley Waterfire Restaurant & Bar, Yakima

NEW ALLIED MEMBERS Batali Associates Hospitality Consulting Ken Batali 9792 Edmonds Way Ste 226 Edmonds, WA 98020-5940 ken@bataliassociates.com 206-390-8285 www.BataliAssociates.com

SeaMonster Studios Paul Rosenwald 21401 Elm Dr. Brier, WA 98036-8920 paul@seamonsterstudios.com 206-701-9767 www.seamonsterstudios.com

Offering business and operational consulting to all types of foodservice establishments. Experience working in all aspects from quick service to fine dining, including restaurants, hotels, clubs, casinos, and coffee shops. Expert guidance for start ups including business planning and budgeting. Operational evaluations and customer service training. Special Member offer: 10% off regular rates.

Based in Seattle, WA, SeaMonster Studios is a lean and limber group of designers, developers, marketers, team players, technologists, and strategists. More than any of that, our clients call us partners. We approach each project with thoughtfulness and attention to detail. Our clients’ satisfaction is as important to us as the performance of their project. Our work runs the gamut, but each project shares a commitment to getting it right and trying something new.

MacDonald Meat Co Selynn Vong 2709 Airport Way S Seattle, WA 98134-2112 206-623-7993 svong@armandagra.com www.macmeat.com Serving the Greater Seattle Area and all of Western Washington, from the Canadian Border to the Oregon Border for over 80 years, MacDonald Meat Company is a well established supplier of high quality meat products to the wholesale food service industry, servicing the finest restaurants, hotels and specialty food operations. Each and every customer is unique we cut our meats per our customer’s specifications, offering custom portion control and packaging. MacDonald Meat Company offers products from suppliers that focus on sustainable agricultural practices, companies like Durham Ranch Bison, Painted Hills Natural Beef, Seaboard Pork, Te Mana Lamb and Draper Valley Farms Poultry. Quality product and customer service is key to our customer’s success.

TGA Hood Cleaning Barry Loucks 4135 Grotto Ct SW Tumwater, WA 98512-7824 360-819-2210 bloucks@tgahoodcleaning.com tgahoodcleaning.com We specialize in upscale restaurant grease hood cleaning. This service is a fire marshal mandated service for all commercial establishments that serve food. We also provide repair service to locations that utilize us for their hood cleaning needs. Scope of Work: Kitchen Exhaust System (Hoods in the kitchen, duct work through the building, fans and blades on the roof, Clean up (Grease over spray on the roof, and in the kitchen). Access Panels if Available, Compliance Sticker, Time Stamped Post Cleaning Pictures, Fire Marshall Compliance Reporting, Post Cleaning report emailed to point of contact on file. Types of locations we Service: Resorts, Hotels, Casinos, High End Independents, Assisted Living Facilities, Hospitals, Golf Courses, Food trucks

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Member businesses receive $10.8 mil in 2019 RETRO distribution

10/1/2019 3:11:43 PM

Pictured: Washington Hospitality Association Vice President/CRO Teran Haase and RETRO Executive Accounts Manager Jessica Keller pose with association and RETRO subcommittee member Patrick Knutson at the Olympia Oyster House, which Knutson co-owns.

The association’s RETRO distribution in 2019, covering program years 2016 and 2018, was $10,821,399. The RETRO team reports member hospitality businesses are working harder than ever to maintain safe working environments and continues to find light duty work to get team members back to work as soon as possible after an injury.

RETRO SINCE 1986

RetroAd.indd 1

12/19/2019 3:42:49 PM

Ask the Expert:

Increase prices without losing traffic By Rick Braa, CHAE

With skyrocketing labor cost due to minimum wage increases, wage compression for those close to minimum wage and a tight labor market, I feel I don’t have an option but to increase prices. The crew and I are afraid we are going to lose guest traffic. What are some ideas to maintain or improve traffic while increasing prices?

operators have thought is was more modern to have even dollar pricing. Some walk away from profit by losing the ability to creep pricing rather than jump in $1 increments. Offer different sizes and squeeze prices together. Use successful promotions like restaurant week where guest counts increased. Bundled pricing appeals to pricesensitive guests even though they may spend more.

Nationally, wage increases are widespread. The federal government increased the minimum amount of salary necessary to avoid paying overtime while clarifying how an exempt employee is properly classified. States and cities are following suit. Minimum wage is at historic adjustment levels across the nation. This news has overshadowed inflation in the supply chain as well as commodity prices. Most companies will have little option to maintain margin but to increase menu prices. Historically, higher prices have led to lower demand and traffic levels. One reason is the guest is paying more for the same product they paid less for previously. To combat this the guest must receive more value for more money. To increase prices while driving traffic, consider the following:

Know your guest—it’s easier than ever to know your guest. Use structured and unstructured data. POS can provide useful structured data of guest menu preferences and trends. Analyze these trends to see what behaviors have emerged and predict how pricing will affect volume. Know the frequency of guest visits by using a tracking system to measure how often guests are returning and how many are first-time visitors, then build retention strategies around each. Use a loyalty system to frequently reward the best guests. Analyze what the most loyal guests order and increase offerings of items akin to them. If they come back one more visit than normal, sales grow majestically. If they bring their friends one more time, sales will grow at least double digits. Unstructured data includes online reviews, social media activity, reservations, third-party sales activity, etc. Wean every piece of data and analytics to know your online guest better. Let this be the year of maniacal focus on knowing your guest; you’ll know how to get them back and how much they’ll spend. Remember, a fully-engaged guest spends at a 15% premium and are much more likely to spread the word organically, the most trusted source of referral.

Know your price increase target— the hospitality association offers a calculator that will consider the variables to maintain or improve profitability and provides a targeted price increase to do so. If you discover the price increase needs to be 5% start increasing prices on high movers first. Make strategic choices. Use proper schemes such as ending in $0.50 or $0.95 (may also end in 9). Too many 30 │ wahospitality.org

Re-evaluate, re-train, and re-enforce stronger hospitality—the restaurant business is a game of emotion and mathematics. That’s why it’s fun. The emotion of the business must be carefully tended. Each person touching your guest represents your brand and can be the difference between a returning and nonreturning guest. Before and after prices have been adjusted have a meeting with your staff. Upgrade service in every area and ensure everyone knows a smile is worth a thousand words. The goal is to provide a flawless guest experience every time regardless of concept. Every position in the restaurant must be focused on meeting and exceeding the needs of the guest from door to door. Remember guests are five times more likely to return to your restaurant if they have a memorable experience with an employee! Continually monitor and adjust to meet guest expectations—soliciting feedback from regular and new guests is important. Build a feedback loop with the guest and act on suggestions. Be specific, rather than, “How is everything?” While not an exhaustive list by any means, connecting with your guest, strengthening hospitality, providing strategic pricing moves with strong copywriting will more than provide break-even traffic — it will drive it. For a more information on improving profitability and driving performance, contact AMP Services at rbraa@ ampservices.com. Rick Braa is the cofounder of AMP Services, an accounting and consulting firm specializing in helping companies grow profitability.

Put your best

Fish forward. Food waste is bad enough. Contamination is worse! How do you stop a bad fish from reaching the table? You make sure that your line staff knows the rules, knows how to how to detect bad product, and absolutely knows how to rotate your walk-ins so that you are always putting your best ingredients on the plate. Do your people know how to do that? Let’s hope so. Safe service is good service. ServSafe is the best service. Train your staff today!

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Be a cool cat. Train your staff to be allergy aware. Get ServSafe certified today.

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Do you remember the spark you felt when your passion for your industry was ignited? That same spark is roaring to life in ProStart students around the state for the hospitality industry. Career connected learning programs such as ProStart develop high school students into the future hospitality workforce.

Watch the next generation of hospitality at work on March 14, 2020 at the ProStart Invitational.

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