Washington Hospitality Magazine by Washington Hospitality Magazine

WA S H I N GTO N

January Winter 2019 2019

5 TOP WAYS TO SAVE

THE 2019 STARS OF HOSPITALITY WINNERS HOW TO RAISE MENU PRICES THE RIGHT WAY HOSPITALITY CAREERS NAVIGATOR

Washington WashingtonHospitality HospitalityAssociation Association 510 510Plum PlumStreet StreetSE SE Olympia, Olympia,WA WA 98501-1587 98501-1587

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SOLUTIONS

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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

SOLUTIONS

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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Winter 2019

Features 12

Top 3 ways members are saving money

Digital wins

How to raise menu prices the right way

How does the Hospitality Careers Navigator solve problems for your business?

Top 5 ways to save your business money

Self-serve social media solutions for hospitality

The 2019 Stars of Hospitality: Recognizing the best in hospitality

First impressions—best practices on optimizing restaurant and hotel fronts

Preparing your business for sale in 2020

Should your business be considering association health plans?

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

Visit healthcarewashington.org for your benefits package needs.

Find out more at: healthcarewashington.org Washington Hospitality Benefits Specialist | 855-919-1316

HEALTHCARE SOLUTIONS

President and CEO

It’s in our nature to find solutions to problems When we talk about the hospitality industry in Washington state, we highlight four things: 1. Great local experiences 2. Helping our workforce succeed 3. Our symbiotic relationship with our community Easily with each of these, people can understand: “I know what they’re trying to do here.” The fourth item we highlight is our ability to deliver solutions for guests, members, employees and communities. Solutions? What exactly are those?

Anthony Anton President and CEO anthonya@wahospitality.org

Let’s talk about some of the solutions we’re seeing in your businesses. I love the Marriott commercial where the soccer team bus breaks down and the team walks through the city and the hotel is sold out. The hotel staff takes a conference room, all the extra blankets and pillows and provides a solution—a safe place to stay—for the team. There’s Hilton Hotels working with Clean the World to collect used guest soaps, melt them down, sanitize them and create new bars of soap for people in need. The story of the housekeeper who was an early leader in this exemplified finding solutions. In September 2015, the Seattle Hotel Association members offered families of the victims of the Ride the Ducks of Seattle crash free hotel rooms because it was the right thing to do. A solution amid tragedy. At a Taco Bell not too far from my house, a senior citizen dines there every day. Recently, I watched the senior come in and sit at a table. The staff went over and talked to him and took his order at the table. The team prepared the order, took his cash and brought his change out to him at his table. I learned later he had trouble managing the line rails and getting to the counter. None of us in line at the counter were mad about the employee stepping away from us to assist this customer. I’m sure that’s not what the policy said or what the GM came up with. I’m sure that was an empowered person in hospitality taking care of guests. Are your employees empowered to find solutions? I had lunch the other day with John Lane on our team. John said he wanted popcorn shrimp. The server said, “no we can’t do just popcorn shrimp, but the seafood platter has popcorn shrimp with it.” Popcorn shrimp is cheaper than the other stuff on the seafood platter. I found myself wishing the server was empowered to tell the kitchen, “keep the fish, cod, calamari and the other, and let’s bring him more popcorn shrimp at the same price.” She was not empowered to find a solution. Compare that experience to this one: I haven’t been eating carbs with my breakfast, so I haven’t had hash browns or toast when I get eggs. My server said, “would you like some fruit?” I’m not a big melon fan, so she takes grapes off the lunch menu and gives me a side of grapes. She’s empowered. I think she’s awesome, and I’ll go back. Solutions engender trust, feelings of loyalty and are usually the right things to do. If you have these stories send them to us. If you don’t have them, ask yourself: why? Challenge your team to communicate their best solutions in the past quarter and send them to us. These anecdotes build our stockpile for our communications and government affairs teams to tell others who we are as an industry. It’s always the right time to do the right thing, and to find the right solution.

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Launching an effective hashtag campaign— why it’s relevant and how you can do it By Lex Nepomuceno, Executive Editor

The use and importance of hashtags have changed in the past few years since they were introduced. Originally, hashtags were simply a way to make posts easier to find and generate exposure for a brand. Recently, there have been discussions in the social media space over whether hashtags are still useful or if we are just used to including them. For many businesses, however, hashtags are still crucial players in marketing strategies. By examining the way hashtags work on major platforms and learning about ways to use hashtags, you can gain insight into using hashtag marketing for your business.

The state of hashtags on the top social media platforms Facebook. LinkedIn. Twitter. Instagram. All of these platforms make use of hashtags (Instagram and Twitter probably being the most well known) in a slightly different way. To effectively launch a hashtag campaign (or to decide even to launch a campaign), you have to consider the role of hashtags in each social media network. Let’s get a rundown: Facebook—The use of hashtags on Facebook comes with more restrictions than other platforms as there is a character limit (meaning you can’t add 10 or 20

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hashtags like you can on Instagram). With Facebook, you’ll need to keep it succinct by pairing a popular hashtag. Twitter—The world was introduced to the hashtag through Twitter, so it only fits that hashtags are essential to the platform. LinkedIn—LinkedIn is more challenging to get down as hashtags are not prominent on the platform and tend to be industry-specific. YouTube—Although video content dominates the site, hashtags can be used on YouTube to make videos more searchable by topics or grouping videos in a playlist. Instagram—Because Instagram is so photo-heavy, hashtags play a significant part in allowing people to search and find content and brands.

Using hashtags in your marketing strategy Now that you know how hashtags work on each platform, here are six tips for using them for your social media marketing strategy: 1. Use trending hashtags 2. Use hashtags that reflect on your business (try doing SEO research to find keywords) 3. Combine your brand name with specifics of your business into a branded hashtag 4. Add hashtags to your bio 5. Think about expanding your reach with hashtags in different languages

Note: Hashtags don’t have to be confined to social media. Some brands include hashtags on their sites and blogs to increase the association between their brand and particular hashtags. 

Government Affairs | Local GA Update By Jacque Coe, APR

Restaurant grading for Pierce County under consideration The Tacoma-Pierce County Health Department is in the very early stages of consideration of a restaurant grading or placarding system similar to those in King County and other areas of the country. The Department hopes to better inform the public in an easily accessible way on how restaurants are performing on inspections and allow consumers the ability to make informed choices. Your Local Government Affairs team is hard at work making sure that any system that is created, if at all, will be fair and equitable to restaurant operators.  Tacoma merger launches rebranding effort The merger earlier this year of Travel Tacoma + Pierce County and the Tacoma South Sound Sports Commission has prompted a new rebranded marketing effort. Now known as Travel Tacoma – Mt. Rainier Tourism & Sports, the newly merged organization has kicked off a Mountain, City, Sea campaign to much fanfare. This campaign is part of a regional approach to support hospitality, tourism, sports, convention and concert marketing.  Supreme Court dismisses appeal of decision invalidating I-124 A recent decision by the Washington State Supreme Court has invalidated Initiative 124, eliminating potential enforcement actions for any alleged non-compliance with provisions of the initiative. I-124 was a Seattle initiative requiring health and safety provisions for hotel employees. On Dec. 24, 2018, the Court of Appeals ruled Initiative 124 invalid. The decision was appealed to the State Supreme Court. Following the passage of the four Seattle hotel worker ordinances in September, and subsequent repeal of the Hotel Employee Health and Safety Ordinance (formerly I-124), the Seattle Hotel Association filed a motion to dismiss the appeal as moot. The Supreme Court has granted the motion and dismissed the case. The Court of Appeals ruling, invalidating I-124, will stand. Thus, the ruling eliminates any potential enforcement actions for any alleged non-compliance with provisions of I-124. However, the ruling does not have implications regarding the new laws taking effect in 2020. More information can be found on the Seattle Advocacy page of wahospitality.org or by contacting Local Government Affairs Director John Lane at johnl@wahospitality.org. 

Rendering of the Courtyard by Marriott in Pasco provided by Visit Tri-Cities

Tri-Cities opening new hotels—boosting the number of rooms for the region Tri-Cities will add more than 300 hotel rooms over the next year with the opening of three new hotel properties in 2020. The new hotels will boost the number of hotel rooms in the market by more than 7% in a single year for Tri-Cities. “The addition of more hotels in the Tri-Cities is a wonderful thing for visitors as they have more choices from nationally recognized brands,” said Michael Novakovich, President & CEO of Visit Tri-Cities. “It also shows that investors continue to view the Tri-Cities as a viable market for new hotel investments.” Opening in 2020: Choice Hotels International will open a $6.7 million project on Tapteal Drive in Kennewick with 122 rooms. A Residence Inn by Marriott will open in Kennewick across the street from Columbia Center Mall. The $20 million project will feature 90 rooms for extended stays. Courtyard by Marriott is a $8.5 million Pasco hotel with 99 new rooms opening in early 2020. The developments will bring the total number of hotel rooms in Tri-Cities to 4,506 by the end of 2020. “The Tri-Cities has experienced a 10% growth in the number of rooms sold over the past five years,” adds Novakovich. “Year to date, our market is performing slightly above last year. However, occupancies are still considered healthy.” 

Winter Edition 2019 │ 9

Government Affairs | State GA Update By Nicole Vukonich

Thank you for attending the Government Affairs Regional Meetings this fall With record turnouts at nearly every meeting, Washington Hospitality Association members benefitted from attending the Government Affairs Regional Meetings this fall. Members spoke with fellow owners and operators and their local lawmakers about the topics most important to them and the hospitality industry. Thank you for making these meetings a priority! 

Registration now open for Hill Climb 2020 Are you ready to tell your unique story, build relationships with key decisionmakers and network with hospitality owners and operators? Hill Climb 2020 is Monday, Jan. 27 and registration is now open. Visit hospitalityhillclimb.org to reserve your free spot today. Hill Climb and Taste Our Best are the association’s largest grassroots events of the year! 

Looking ahead to 2020: Statewide minimum wage increases to $13.50 on Jan. 1 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 will also increase, the statewide minimum wage will increase 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 Jan. 1 Beginning Jan. 1, 2020, employees will be 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. For more information, please visit the Paid Family and Medical Leave toolkit on wahospitality.org. Employee safety and the state law: How you can prepare for 2020 A bill passed in the 2019 legislative session requires all employers in hotel, motel, retail, property services or a security guard entity to have all the following beginning Jan. 1, 2020: Adopt a sexual harassment policy Provide specific mandatory anti-harassment training to the employer’s managers, supervisors, and employees Provide a list of resources for employees to use. 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 are employed as a janitor, security guard, hotel or motel housekeeper or room service attendant 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.” In the state law, there is no mention in the law 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 prepare you for Jan. 1, 2020. 

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Health care doesn’t have to be scary. The Hospitality Industry Health Insurance Trust (H.I.H.I.T.) is uniquely designed with businesses like yours in mind. Whether your business is big, small, well-established or just opening its doors, H.I.H.I.T. has your back. H.I.H.I.T. is uniquely designed to bring together employer groups of two or more enrolled employees to pool resources and enjoy the purchasing power of a large employer group.

Brokers are standing by to help you find a solution that works for your group. Contact us for a quote today!

Call 877-892-9203 or email quotes@hihittrust.com for more information!

Winter Edition 2019 │ 11

Top 3 ways members are saving money By Shelby Pemberton, Contributing Writer

Carol Lee from Chef Dane Catering says she sees the biggest savings with our Payment Processing Program.

Members of the Washington Hospitality Association have access to many different tools and resources designed with you in mind. But what are our members receiving the most benefit from? With the cost of doing business increasing every day, we took the time to ask yourRETRO peers how they are saving time and money by being a part of the Washington Hospitality Association.

Payment Processing Program

“No one has been able to beat your rates,” Lee said. She would recommend our services to anyone. “We get better bargaining power by being a member.”

Hisako Ishikura from Miyabi Restaurant in Seattle finds value in several of our programs. “As a small business owner, they are especially useful,” she said.

RETRO

Payment Processing Program

Evan Volstis from Spiro’s Pizza and Pasta loves our Retro program. “Retro takes the worry off my plate,” Volstis said. “Getting a check at the end of the year is nice, too.” Volstis also said he likes how we advocate for the industry, even though it is not an easy task. Giving business owners a voice is important. Retro was a popular choice among the members we asked. Coming in at a close second was our Payment Processing Program powered by US Bank and Elavon. “It was a seamless transition from my other processor,” Volstis stated, praising the US Bank staff. “With the cost of doing business increasing, it’s nice to see the savings each month.” 12 │ wahospitality.org

Phil Costello from Zips Drive-In in Spokane agrees with Lee and says he also sees savings with our credit card processing. “Many merchants have approached us throughout the years, and none have been able to match the rates we receive through the Washington Hospitality Association.”

Ishikura finds the most value in our Retro program. Retro grants its participants access to many tools designed to manage or improve their safety ratings, and, if Processing Program Payment you perform well, you receive a nice surprise at the end of the year. “I like Retro because I receive money back at the end of the year.”

Healthcare Solutions

Last, but certainly not least, we have our Healthcare Solutions: Healthcare Solutions health insurance plans designed with the hospitality industry in mind. Costello had wanted to give his Healthcare Solutions employees health benefits for years, but he could never afford it, until he joined our program, that is.

“We’ve been with the H.I.H.I.T. program for two years,” Costello said. “They offer competitive rates. It’s been a great program so far. The flexibility with size is a great aspect of the program.” Costello has seen the most savings with our health care insurance when compared to other insurance plans. As your industry’s association, the Washington Hospitality Association strives to not only be your premier resource for industry news, but also offer you the best cost-savings programs that we can. We understand how difficult doing business in Washington state can be, which is why we wanted to showcase just a few programs your peers are using to help combat the changing landscape. 

Stats for wahospitality.org

Year in Review – Oct 1, 2018 through Sep 30, 2019

44,338

were from Washington

2,464

were from Oregon

101,262,183

5,330

Worldwide visitors to site

were from California

77,308

Visitors were from the U.S.

DEMOGRAPHICS

TOP STORIES The 10 Common Practices of Highly Successful Independent Restaurants 2019 Minimum Wage Increases

55.1% Female

44.9% Male

AGES 18-24 – 15.08% 25-34 – 33.39% 35-44 – 20.66% 45-54 – 16.13% 55-64 – 9.95% 65+ - 4.79%

Sustainable – Restaurants Lower Costs, Cleaner Environment, Community Building, Customer Goodwill Effective Closing Statements at Unemployment Hearings HERO Service Charges WSLCB Compliance, Fact and Fiction

TECHNOLOGY

Desktop 66.92%

Mobile 29.48%

Tablet 3.60%

Winter Edition 2019 │ 13

How to raise menu prices the right way By Jillian Henze, APR

Raising menu prices can be scary because of the worry that your restaurant will lose customers. Our experts recommend how to raise menu prices the right way. It’s an art and science Washington Hospitality Association President and CEO Anthony Anton combines numbers with what he observes about customers. “Menu pricing is combining art and science,” Anton said. He recommends calculating the percentage you need to increase menu prices (use the Washington Hospitality Association’s exclusive online labor cost calculator), and using some key observations about your customers to decide where to make the increases. For example, at a casual, full-service restaurant with regular weekly customers, those customers are not highly aware of the beverage or dessert prices, Anton said. But, the customers are paying close attention to the prices of the appetizers and entrees. The art would be to raise prices where the customer’s awareness is lower, he said. “Look artistically at how to move that percentage around in different areas,” Anton said. And make sure to keep an eye on the competition. Identify similar restaurants in the area customers would choose instead of your restaurant, and evaluate their menu prices, Anton said.

Anton said if he were running a restaurant today, he would change menu prices two to four times per year. Why? Things are changing faster than ever before, and because you don’t want customers to get attached to a price point, he said. Plus, like muscle memory, doing the calculations daily or weekly will make it more familiar and easier for you. Tracking numbers like food cost, labor cost and other expenses (utilities, administrative costs, etc.), will help you stay on top of change, and will help you protect your margins more vigorously, Anton said. Play with percentages Here is how David Jones from Blazing Onion and Subway restaurants prices a menu from scratch. 1. Jones said to start, each manager takes their average employee hours schedule and plugs in total cost of current wages for a week. 2. Then the regional manager, the general manager and Jones sit and discuss new wages. New wages are plugged into the schedule to discover the increase in weekly labor cost. 3. Next, the regional manager pulls up a menu mix report (can also be called a food cost report) for an average week and drops it into a spreadsheet with the restaurant’s latest menu prices. 4. Jones said he will play with numbers in his spreadsheets by plugging in a menu price percentage increase, rounding up or down until he makes up for the labor cost gap.

“What are your customers choosing instead of you?” he asks.

Jones said that increasing menu prices too much can cause a major hit on customer traffic, while raising prices too little can cause an unsustainable loss in profit.

Excel and Quickbooks are tools to help you with basic menu pricing, Anton said. Your supplier may have software or a consultant to help, though he cautions that the supplier’s software may only include recipe items you purchase from that supplier.

“That will creep up on you and show its face on a delayed schedule, mainly because accounting reports and P&L’s come delayed, which kills you,” Jones said. “You just increased prices, you can’t increase again so soon, so now what do you do? Strategize.”

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Focus on dollars Chris Patterson, the business solutions director at Food Services of America Spokane, said he recommends clients first find out what the wage hike will cost. 1. Calculate the increase in labor cost with the Washington Hospitality Association’s exclusive online labor cost calculator. 2. Then, do some “menu mapping,” he said. The calculator offers a menu price increase percentage (for example, you’ll need to raise your menu prices by 3.6 percent in 2020). But, Patterson prefers to do the math with real dollars, he said. That 3.6 percent menu price increase in the calculator was necessary because the wage increase and other items equal a dollar increase of $36,022.50 in 2020.

With many clients, he showed them an across-the-board 3% menu price increase was unnecessary, Patterson said. Translating the percentage into a dollar amount can help you see this, and doing so can make the increases feel more manageable. What to say to a customer who remarks on your increased prices Anton said he likes the way the California Restaurant Association frames it: “On average, for every $1 spent eating in the USA, about 95 cents goes to food, the place and a GREAT staff!” He said the message is a nice way to let customers know you have less than a 5% profit margin.

“Break it down into a daily total so your head doesn’t start swimming,” Patterson recommended.

Increasing menu prices more regularly will lessen the fear of what customers will say, Anton adds.

So, divide $36,022.50 by how many days the restaurant operates (364 days of the year for example), and you are left to increase revenues by $98.96 per day.

“You can’t stay in business if you lose money on every sale,” he said. “You can’t make it up on volume. Charge what you need to charge to stay in business and provide good jobs for your team.”

3. Next, go into your POS terminal, or check your Excel spreadsheet where you keep your sales data, and grab numbers from the past three or six months.

If you need further help with menu pricing, contact an expert consultant for free in the association’s Advisory Network. 

4. Write down how many of each menu item was sold on one side of a sheet of paper (this will show your most popular dishes). 5. Then write down the gross profit for each dish on the other side of the paper (this will show you your most profitable dishes). 6. To generate the extra $98.96 per day, raise the price on the most popular dishes for a greater impact, Patterson said. 7. From there, evaluate if and how much you need to raise prices on the most profitable dishes. “If you raise prices on only the most popular 10-15 dishes, there’s an opportunity to say, ‘I did have to raise my prices (you all know why), but only on some of my menu items,’” he said. Winter Edition 2019 │ 15

How does the Hospitality Careers Navigator solve problems for your business? By Alina Day

Have you ever had employees ask if a hospitality career is possible? Where a hospitality career can take them?

includes a job description, skills and necessary training to move up the career ladder. All that training, literally hundreds of programs and certifications, is available through the Education Foundation’s online portals to give employees the skills they need to succeed.

The Hospitality Careers Navigator located at whaef.org/career, is an answer to all these questions and more. It is an interactive online tool showing many different pathways available in hospitality and how to realize the opportunities and training available. It allows you and your employees to navigate hospitality careers.

New employee retention: Show your employees how to make hospitality a career

Employee motivation: Show your employees you’re invested in their careers

The tool provides a clear map of how to get from where an employee is to where they want to be. For example, it will show them there are many ways to become a general manager. Not only does it show them where they can go, but it also shows them how to get there. Each career

When you hire new employees, do you find out what their career goals are? Use the navigator to help them achieve those goals. Showing your commitment to your employees through training is a retention tool that should not be underestimated. Help them take the guesswork out of getting to the next level. The tool is very user friendly and easy to use on desktop or mobile. Once you’ve introduced them to it, take a step back and let them drive. What will they discover? What ignites their passion?

Career mobility: Show the public a successful hospitality career is not only possible, but attainable

Education Foundation

Example Pathway from Lobby Attendant to General Manager (Hotel) Lobby Attendant

Assistant Head Housekeeper

Room Attendant

Executive Housekeeper

Floor Manager

Assistant General Manager

By showing all the pathways to a successful hospitality career, the navigator demystifies our industry. It puts real jobs, real skills and real training in front of the public, including legislators. It proves people don’t just have a job in hospitality— they have a career. 

General Manager (Hotel)

To use the Hospitality Careers Navigator go to WHAEF.ORG/CAREER.

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Top 5 ways to save your business money By Morgan Huether

1. Payment Processing and Sales Terminals What if your payment processing and terminal provider had your back? Like, really had your back? The Washington Hospitality Association partnered with U.S. Bank so you get exclusive, negotiated pricing and the stellar customer service that comes from an association that understands what hospitality businesses need. Plus, now your terminals can be cutting edge without cutting into your bottom line. Email ccprocessing@wahospitality.org for more information about payment processing and terminal options including tableside point-of-sale systems loaded with the ability to simplify inventory management and data to track your best selling items.

2. Healthcare Solutions Shopping for health care can be daunting and overwhelming, but a quick trip to healthcarewashington.org can get your options in order. You’ll find options for minimum essential coverage, medical insurance for groups as small as two enrolled employees and lots of standalone options to help bulk out your benefits package. With additions like telemedicine, flexible spending accounts and dental, your team will have the benefits it needs to thrive.

3. Business Insurance Insurance is always a good move. Protecting yourself and your business from day-to-day risks should always be a consideration. My Hospitality Insurance is a new program the Washington Hospitality

Association rolled out featuring property and casualty insurance. This program saves businesses money by leveraging the purchasing power of association members as a large group to decrease premiums. My Hospitality Insurance offers an array of coverage including property, general liability, cyber liability, workplace violence coverage and more. Low premiums plus wide coverage options equal savings and peace of mind for your business down the line. Visit myhospitalityinsurance.com for more information.

4. Office Depot When you shop for business supplies, you could compare prices across several vendors or you could enroll for free in Office Depot’s discount program. Discounts on products like receipt paper, free next-day delivery and deep discounts on printing are all included as a free benefit of being a Washington Hospitality Association member. Visit wahospitality.org and click the business supplies button under the programs tab to take advantage of these discounts.

5. The Advisory Network As a member of the Washington Hospitality Association, you get access to a valuable benefit—the Advisory Network. When your business faces challenges you don’t know how to tackle, you can phone your friends at the association for a free 30-minute consultation with our team of experts. The advisors on this board specialize in topics including alcohol compliance, tip pooling, legal assistance, marketing, restaurant operations and more. If you want to take advantage of this free resource, contact your area coordinator.  Winter Edition 2019 │ 17

SOCIAL MEDIA

SOLUTIONS FOR

HOSPITALITY

By Alec Northrop, Contributing Writer

Business owners in the hospitality industry know social media is an important aspect of your marketing mix these days, but translating your social media presence into increased revenue can be a mysterious process. The key to building your customer base is largely centered around two things: An engaging profile and a successful ad campaign. You may find that the mystery behind customer engagement and online advertising is no mystery at all but is, in fact, something you could be doing yourself without expensive tools or consultants. Getting started—establishing your personality Before you begin building your brand on social media, preferably before you start advertising, you have to decide how you want people online to see your company. Do you want to make your case using ethos, pathos, or logos? A good social media account will invoke all three, but it helps to have somewhere to start. If you’re a budget hotel, maybe you want to tout your establishment as a logical decision with the best price in town. If you’re a local, eclectic drivein, maybe you want to tell customers about your community involvement and charity work, while also posting clever burger puns. You should never limit yourself by exclusively delivering certain appeals, but determining your style and image will help build a fan base and make content creation easier later on down the road. Getting past the 0-50 fan phase and the snowball effect of social media Unfortunately, posting regularly isn’t enough to help your account gain traction on its own. Posting to a Facebook page with no likes or a Twitter page with no followers is like talking to an empty room. Many establishments will promote their pages to existing customers at their physical location, but without incentives like coupons for following your account, most customers won’t bother to log on and follow you. Promotional offers are a great way to get the ball rolling, but even with incentives, nothing is stopping the customer from unfollowing your account once they have used the coupon. The best way to gain traction is to build on the relationships your business already has. If your 18 │ wahospitality.org

business has partners or vendors, make sure you’re friends with them - maybe give them a mention. There is no limit to who you can or can’t interact with as long as you remember your target market. Amassing followers from New Jersey doesn’t do you any good if all your locations are in King County. One underrated way to gain a following is to simply spend 10 minutes a day interacting with potential customers.

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For instance, a burger joint with locations in Marysville, Bothell and Everett might go on Twitter and search by location for tweets that include the word “burger” posted by someone in Everett, 26 likes Wash. As you scroll through and like, Best bu rger I’v comment, or retweet e had in @Burg erspot a while for ! #burge burger-related rlover # the excellen Thanks t meal! b @ u rg b odnara ersfore #burge content, you’re ras ver #bu r rgersp ot touching each one of the people that wrote that post, and if someone gets a notification on their phone that says their favorite burger joint just liked their tweet, chances are, they will take the time to follow the account, further solidifying their brand loyalty. The rise of self-service advertising In a sense, every time you post on social media, it is self-service advertising. But if you have great content, advertisements or offers that are going unseen, spending some money to appear in user’s feeds can be well worth it. Is a social media ad right for you? Differentiating between self-serve advertising in general and self-serve advertising on social media is important. There are entire companies built on SEO optimization that help with Google adwords and similar methods of advertising. Some services offer geofencing where an ad you create will pop up on someone’s phone, sometimes across multiple platforms, once they have entered a certain area or have approached your business. For many companies, showing up at the top of your Google search

is the most important aspect of their business. Tow-truck companies that offer identical services and have little brand loyalty don’t need to be building their brand through social media. But for businesses that want return customers, their online presence needs to go beyond the search engine. A successful social media presence helps build loyalty and increases awareness. Customer experience is key for businesses in the hospitality industry, and your presence on social media is more important than it is to businesses that lack the personal relationship you should seek with your patrons.

How does it work? Advertising on Facebook, Twitter and Instagram was built to be used by everyone. Recently Google Adwords (now Google Ads) and Bing ads (now Microsoft Advertising) have been simplifying their processes as well, most likely because they think the money you don’t spend on ad managers will be spent on more of their ads. Ultimately, how that money gets spent is your choice, but ditching the middle manager is often a net benefit either way. The first thing you’ll be asked to choose when creating an ad is your objective. Ask yourself what you are trying to accomplish. Through a handful of options, you have the choice to increase website traffic, page traffic or increase sales. This can be done through a variety of ads that will appear in various locations on someone’s page or feed. On Facebook, you can also create and promote a button that the customer can use to download an app or be led directly to a marketplace. Facebook and Twitter both have options to run automatic ads, which will set a price per day and target audience that they think will be most beneficial for you. Facebook also gives you the option to promote on Instagram. Businesses using Instagram will have to create a Facebook page and link the two accounts before they can promote on Instagram.

allows you to target a location as precise as a one mile radius around a specific address, while Twitter goes by zip code. Once you’ve set the audience for your ad, you will be able to see the potential reach, which includes everyone within your parameters that can see the ad. You can then adjust the amount of money you want to spend per day, and you will be able to see an estimate of how many people will see your ad. While posting and running ads on social media is not overly complicated, there is one aspect that you may elect to outsource—your graphics. The best performing ads and boosted posts on Facebook and Twitter have an image, and Instagram requires one. If you already have someone you like creating graphics like coupons and logos, it’s best to stick with them. Most platforms do not offer any help when it comes to creation of graphics. Knowing the business is more important than knowing the platform The basic assumption is that as the owner-operator, CEO, or other form of top dog you know your business best. Social media platforms are built to be intuitive, and you don’t need special training or massive amounts of time to figure them out. If you haven’t already, get familiar with your own social media page, and get to know your customers better. Share your passion directly. Chances are, you know something about your business that they don’t. 

The basic format is to simply “boost a post.” This means that you can choose anything you’ve posted and pay to make it appear on the screens of your defined audience. This also allows you to easily define your goal, because you can simply include the link you want the viewer to visit, or promote an item or service of your choosing. Once you’ve picked a post to promote, you can target the ad to show up for potential customers based on standard demographics as well as their interests that they have shared on social media. Facebook Winter Edition 2019 │ 19

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 20 │ wahospitality.org

The 2019 Stars of Hospitality Recognizing the best in hospitality

Given each year at the Washington Hospitality Convention, the Stars of Hospitality Awards are an opportunity for the industry to recognize the incredible professionals who go above and beyond in everything they do. This year, eight professionals were recognized ranging from the newest additions to teams to the seasoned leaders who inspire. Join us in celebrating these eight stars of our industry.

Lodging Employee of the Year Brian Holdbrook Account Clerk/HR Coordinator Embassy Suites by Hilton Seattle-Tacoma Int’l Airport General Manager of the Year Pamela Estes General Manager Candlewood Suites Oak Harbor Emerging Hospitality Leader of the Year Austin Dudley General Manager Best Western Plus Arlington (Hotel Services Group) Paving the Way Award (co-winners) Jessica Horton Director of People Support Pan Pacific Seattle Denise Vickerman General Manager Ramada by Wyndham Spokane Airport Restaurant Employee of the Year Myrinn Jagim-Kern Line Cook Bene’s Emerging Hospitality Leader of the Year Tyler Alden Wine Director Willows Lodge Paving the Way Award Kasey Berglund Server Bene’s

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First impressions—best practices on optimizing restaurant and hotel fronts By Alec Northrop, Contributing Writer Architectural, cosmetic outdoors, lobby It’s the first thing your customers see as their experience begins and it’s the only thing pedestrians and drivers see. If you want passersby to become customers some day, you might wonder what you can do to the front of your establishment to increase interest from those who haven’t yet used your services. But where do I start? When you’re trying to decide which improvements to make, try to keep your theme in mind. Ask yourself not only what you want to convey to potential customers, but what you want them to expect once they are inside. Remember to look at your business through your customer’s eyes: Do you want your customers to see their time spent with you as a luxurious special occasion or as a regular excursion? Should your brick wall out front be adorned with ivy or with a chalkboard featuring today’s soup? What is the culture? Keeping it real It’s important that the outside of your hotel or restaurant fits the interior design, so you probably aren’t looking to remodel your entire building. With that in mind, there are a few things you can do to improve a customer’s experience for hotels and restaurants alike.

trendy Hygge design style. Daniel Meyer, CEO of the Union Square Hospitality Group, describes a great restaurant as “one that just makes you feel like you’re not sure whether you went out or you came home and confuses you. If it can do both of those things at the same time, you’re hooked.”1 Hygge, a Danish design concept, does exactly that. Characterized by dark wood and subtle, earthy accents, styles like Hygge not only carry the benefit of working for both restaurants and hotels, but can be implemented in a relatively inexpensive manner to make an entrance look nice. Reclaimed wood planks are lining walls in the trendiest restaurants, and the use of wood slats are starting to become more common on hotels. One example, designed by Clark Thenhaus of Endemic Architecture out of California is the Meijie Changzhou Mountain resort in China.2 You might not be looking to build a resort from the ground up, but the great thing about minimalist design exemplified by this resort entirely lined with wood slats is that you can face your existing structure with slats like these without spending too much time, effort or money. Windows are the windows into a restaurant’s soul. Depending on your interior, adding windows to the front of your business can be your savior or your downfall. If the idea of having them scares you, that should be a warning that something inside is wrong. Ilan Dei, a designer in Venice, Calif. designed the exterior of Lemonade, a restaurant chain in Los Angeles. He wanted to make sure the sleek, colorful interior was noticeable to those who drove past, noting that

Pay close attention to street and sidewalk use: What you can do in front of your building is going to depend largely on your street or parking situation. In most urban settings, a portion of the sidewalk is obscured by cars either parked or driving in front of your building. An attendant is a great way to give the impression that you are running an upscale business, and can also be immensely helpful in these situations. While more common for hotels, attendants or greeters outside of a restaurant can answer questions asked by curious pedestrians, hand out menus, and help with wait time estimates or reservations. While simple, ensuring that there is a clear path to your entrance is one of the most important things you can do to encourage people to enter, and it is often overlooked.

Dei chose to employ floor-to-ceiling windows to ensure that people could see into the restaurant when they drove by. If you trust your interior, why risk mitigating that beauty with a wall?

Readerboards: Chalk readerboards can be a great tool when used correctly. Typically seen outside of a restaurant with a special menu item or deal, people are starting to get more creative with them by putting everything from puns to portraits on the sidewalk right outside of the front door. A readerboard done the wrong way does more damage than it does good, however. Never have more than one board visible, and make sure any text is exceptionally neat.

Define yourself first Most people make judgments five seconds after being introduced to something. Your entrance and facade are crucial because they will define you not only to your customers, but to those who aren’t. Make sure the front of your business reflects its strengths, capitalizes on available space without cluttering your entrance, and doesn’t hide what doesn’t need to be hidden. 

What’s in? If you’re starting from scratch, or looking to really revamp your image, you’re going to need more than readerboards and greeters. Hotels and restaurants that want their facade to match the most popular styles of the day could consider the

REFERENCES: 1. https://www.cbsnews.com/news/restauranteur-danny-meyer-on-importance-ofhospitality 2. https://endemicarchitecture.com/Wolfgang-Mountain-Resort-Hotel-Facade 3. https://pos.toasttab.com/blog/restaurant-floor-plans https://wha.fyi/1119a (for information)

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“How you read the physical space from the car and how you read the space when you are walking, from eye level, is very, very different.”3

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Sponsored Content

Preparing your business for sale in 2020 Mise en Place, or “Everything in its Place.” The old French culinary maxim suggests that preparation and organization are the cornerstones of any successful kitchen. Indeed, the battle for a smooth dinner service is won or lost on preparation long before the guests arrive. The level of overall organization in a restaurant positively or negatively impacts every aspect of the business, including the process of sale and transition of ownership. When preparing your business for sale, implementing some low cost, high impact housekeeping measures in advance will go a long way toward, maximizing the value received at the time of sale and laying the groundwork for a smooth transition. Organize Your Financial Records Assembling a complete set of updated financials will enable your broker to accomplish the following important objectives to successfully transition your business through the process of sale: 1. Establish a fair market value price range for your business. 2. Identify the correct buyer demographic and market the business effectively. 3. Substantiate the assessed value with buyers, their advisory teams, and deliver the deal for maximum value and on the best terms. 4. Secure financing for the transaction once buyer and seller have reached agreement. Continuity and transparency of your financials are just as important as the profitability indicators. While your federal returns may show an attractive profit, gaps in ancillary documentation can raise concerns in a buyer’s mind about potential trailing liabilities and disrupt an otherwise coherent financial narrative. Missing quarterly tax and wage statements can speak to unpaid payroll taxes. Unfiled combined excise tax returns can be an indication of unreported income and a potential tax lien in lieu of unpaid sales tax to the state. Think of 36-48 months of past financial history as a book about your business that any buyer will want to read prior to acquiring your company. Avoid missing pages and omitting important plot points. Update Your Operational Manuals If the financials provide a snapshot of 24 │ wahospitality.org

profitability, your manuals represent a roadmap to get there. Your business is your life and running it has become second nature. It’s easy to forget the jitters of uncertainty you felt the first time you walked through the door. Written manuals describing the operational infrastructure of your company from a window through which potential buyers can get a glimpse into how your business operates on a daily basis. In the initial stages of evaluating an acquisition, commonly requested documents include the company policy, employee handbook, employee organizational chart, equipment list and floor plan. Update your recipe books to correlate with your current regular menu. Describe the processes and timelines associated with important seasonal events and menu items. Buyers want to realistically assess their ability to run the existing model as well evaluate the potential for expansion. Businesses with detailed written operational manuals routinely command increased buyer interest, sell in shorter time frames and for higher value, have an easier time securing financing, and enjoy a smoother transition at the helm. Avoid Major Overhauls Undertaking a remodel or making a significant investment into new equipment at or close to the time of transition will deliver a negative double whammy to the overall bottom line of the seller. 1. Costs associated with large, infrastructural and leasehold improvements are fully recaptured only through increased profitability over time and long-term operation of the business. The soon to be retiring owner will not see a significant return on their investment over the relatively short time they left at the helm or be able to pass those costs along in full measure to the buyer at the time of sale. 2. Revenue will be lost in the short term due to down time and decreased operational efficiency often accompanying such undertakings. In contrast, improving your curb appeal by freshening up outside signage along with sandwich and menu boards are a practical, cost effective way to make a good first impression on potential buyers. Think spring cleaning, not full-scale remodel.

Review Your Marketing Programs Buyers will often begin their assessment of the business in the same fashion that customers do by reviewing the company’s online profile. 1. Update Your Website. In the digital age, your website is your business card. Buyers will assess the effectiveness of your website in maintaining rapport with the existing customer base and generating new business. Your webpage should be functional, informative, easy to navigate, and optimized for mobile devices. 2. Monitor Reviews Buyers will evaluate your online ratings and reviews as a proxy of the business’ reputation and goodwill with its customer base. Over time, being responsive, working with dissatisfied customers to make up for mistakes, and removing any inaccuracies can significantly improve the company’s online image that your buyers will encounter. 3. Assemble Your Highlight Reel Curating the large amounts of data available to the public about your business will help you to not only address any negative aspects or inaccuracies, but also to highlight your achievements and solidify your image and identity in the minds of customers and potential buyers. Put together a collection of awards, glowing reviews, and accolades received by your business as a reflection of the company’s goodwill and reputation with its customer base and community. IBA is the Northwest’s oldest business brokerage serving entrepreneurs in the hospitality industry since 1975. We welcome the opportunity to share our knowledge and experience with business owners. 100% of IBA’s fees are paid on performance at completion of the sale, including providing a professional opinion of market value of a business for potential clients. For more information, please contact Oliver Kotelnikov, the lead broker in the IBA’s hospitality industry transaction group at (425) 454-3052 or oliver@ibainc.com.

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 Winter Edition 2019 │ 25

COMMERCIAL INSURANCE EMPLOYEE BENEFITS PERSONAL INSURANCE RISK MANAGEMENT SURETY

PRACTICE GROUP:

EMPLOYEE BENEFITS SEPTEMBER 17, 2019

SHOULD YOUR BUSINESS BE CONSIDERING ASSOCIATION HEALTH PLANS? Ryan Moses | Benefits Account Executive

Association health plans, or AHPs, have been in the news

Because an AHP views all of the members as one single

quite a bit over the last year. In 2018, the rules were

group, it does change the way a carrier prices and

changed to allow insurance to be available for purchase

renews this type of business, as opposed to the

across state lines, as well as communities and industry-

approach if each was priced individually. First, all groups

specific channels. Then, those changes were put on hold.

within an AHP share a common renewal date. Many

The State of Washington has offered AHPs for years. But after all the back and forth since 2018, I hear employers asking more than ever, “What is an AHP? Is it different than the insurance we have today? Is an AHP right for our business?” WHAT ARE AHPS? AHPs take advantage of a membership model to provide more robust benefits to members’ employees than each would be able to on their own. By becoming a member, companies have access to the AHP’s plan offering. The idea is that, because you must be a member and these AHPs are industry-specific, you are rated in a pool of

AHPs renew in December or January. So that means if your plan is currently on a July renewal, you can join the AHP in July, but will see a short contract and renew again at the AHP’s renewal date. This needs to be factored into your renewal discussion, as it may eat into your projected savings, which in most cases are shown on a 12-month total.

Because an AHP views all of the members as one single group, it does change the way a carrier prices and renews this type of business, as opposed to the approach if each was priced individually.

other companies like yours. When an insurance carrier is evaluating multiple groups in the same industry, it is

CARRIER RATING FOR AHPS

much easier for them to predict the risk of the pool, as

Carriers are also rating this type of business different

well as each individual group, which drives efficiency

than the standard 1-50 employee market, known as

and predictability to hopefully lower rates.

small group. In “direct to carrier” underwriting for small

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continued >

COMMERCIAL INSURANCE EMPLOYEE BENEFITS PERSONAL INSURANCE RISK MANAGEMENT SURETY

groups, the carrier only looks at location and age data.

Many AHPs require that you provide a small life insurance

This market also provides rates in a two-tier composite

policy as well, and because you are part of a single large

or age banded rates. Two-tier composite is broken out

group, most AHPs offer COBRA benefits regardless of

into two categories, age 21+ and age 0-20. In this space,

your size. Better yet, these offerings often pair best-in-

you pay for up to three children aged 0-20 and all

class carriers. So while you will have different medical,

dependents over 21.

dental, vision, and life & disability carriers, the AHP

The association market, however, uses underwriting that mimics large group rating structure. They factor in

provides consolidated billing and eligibility, which lowers your administrative responsibilities.

location, age, gender, and your specific group’s actual

IS AN AHP RIGHT FOR YOU?

performance. They also provide rates with a four-tier

Now comes the important question: Is an AHP right for

composite rating. The rates are broken into employee-

your business? The answer is complicated, and an

only, employee + spouse, employee + child(ren), and

insurance broker can help you determine the advantages

family rates. It doesn’t matter if you have one child or 22

or disadvantages as it pertains to your specific group.

children, you pay the same employee + child(ren) rate.

However, a general rule is that if your group is healthy

You also see additional benefits in these programs.

and younger in age on average, it is very likely you can see some cost benefits, especially if your group has families with more than one child. In some cases, you also have access to purchasing programs or unique benefit plan designs in the AHP space, which is why it is crucial to engage a licensed benefits broker to point out the differences in this unique plan space.

This article provided by Parker, Smith & Feek. If you have more questions, you can reach out to Ryan Moses, Benefits Account Executive at Parker, Smith & Feek. (425) 709-3789 remoses@psfinc.com www.psfinc.com

Winter Edition 2019 │ 27

INDUSTRY CALENDAR December/January NEW MEMBERS

SERVSAFE® MANAGER

Alpen Rose Inn, Leavenworth

O’Sole Mio, Vashon

Bayview Restaurant, Port Townsend

Pacific Pizza, Forks

Bellevue Towers, Bellevue

Pollard Coffee Roasters, Vashon

Burger King, Quincy

Red Lion Seattle Airport, Seatac

Chestnut Cottage Restaurant, Port Angeles

Residence Inn Portland Vancouver

Dolar Shop Restaurant, Bellevue

Smith, Seattle

MEETINGS

Great State Burger, Bellevue

Westward & Little Gull, Seattle

Dec. 19

Great State Burgers, Seattle

Wildflour, Leavenworth

Dec. 18

Harbor Food Service Kent

Dec. 19

Sysco Spokane

Jan. 7

Bargreen Seattle (SODO)

Jan. 13

Harbor Food Service Kent

Jan. 16

Bargreen Tacoma

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

Spokane Hotel Motel Association 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

NEW ALLIED MEMBERS Airista Flow Inc Mark Sajjad 913 Ridgebrook Rd Ste 110 Sparks Glencoe, MD 21152 4108782700 mark.sajjad@airistaflow.com airistaflow.com

PioneerUnion Media Inc Ding Ma 720 3rd Ave Ste 1100 Seattle, WA 98104 1851 2067754502 ding@pioneerunion.com www.pnumdia.com

AiRISTA Flow provides Housekeeper Safety™, an effective hotel panic button solution fully future focused for hassle free compliance with emerging legislation. This Wi Fi based safety SaaS solution combines real time insights with two way communication tools to offer complete coverage and visibility both inside and outside of the facility. This solution works with existing Wi Fi infrastructure and deploys on premises or connects to a dedicated cloud portal.

Innovative out-of-home marketing media channel

FlashParking Cory Elliott 3801 S Capital of Texas Hwy Ste 250 Austin, TX 78704 3106991400 cory.elliott@flashparking.com flashparking.com FlashParking is a leader in parking and mobility solutions that are powering site level operations, enterprise portfolios, and smart cities nationwide. By establishing future ready infrastructures, delivering unrivaled cloud intelligence, and designing world class customer experiences, FlashParking is powering the evolution from traditional parking assets to next generation mobility hubs.

28 │ wahospitality.org

Seecure Inc Gustav Rosengren 619 Breakers Ave Fort Lauderdale, FL 33304 4176 9542887613 gustav.rosengren@getseecure.com getseecure.com Seecure is a mobile safety solution for hotels and other organizations. Seecure offers wearable panic buttons, high precision indoor positioning and internal communication.

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Ask the Expert Options to profit from minimum wage increase By Rick Braa, CHAE

With minimum wage ready to increase by one of the largest amounts in history, how are companies planning to offset the increase? Minimum wage is continuing north for another year, this year substantially in several cities and states. Companies have been planning for months as large increases will have serious financial impact. The challenge is to profit from the increase and improve the business at the same time. The most important starting point in combating the raise is to know how much it is. The Washington Hospitality Association provides a calculator on its online HUB to get started. Once the raise amount is known for minimum wage and non-minimum wage earners, several companies are putting one or more tactics in place: Increase prices—start with the most popular items by capturing the number of sales of each high mover and moving them up. For example, if a bacon cheeseburger is $13.95, the next logical step would be $14.50. Multiply the price increase against the number sold annually. Keep a running list of those increases, add them up and ensure they meet or exceed inflated costs while increasing profit. Take half of that increase as soon as possible and the remainder around the turn of the year. Menu engineering for speed of service —strategically reduce menu size +/-20%. This will produce tremendous benefits on several fronts. It’s simple math. The larger the number of items on the menu the longer it takes the guest to order, the slower the server will be at finding an item on the POS, the kitchen is slowed by preparation of more ingredients, a larger number of stations are in play at execution, and so on. Ultimately, the menu becomes a choke point and a constraint for smooth, flawless execution of the guest experience. If a guest can depend on a restaurant to get them in and out at the guest’s pace, repeat business will increase, the largest driver of sales. Increase bundling—focus on food and beverage spend individually and build menus to increase the spend on one or both. The reason promotions such as restaurant week tend to work well is the prefix price for food is often above the average spend on food. Adding a wine or drink pairing elevates sales in most cases. There is also an opportunity to decrease portion size on some items when bundling. Most 30 │ wahospitality.org

importantly increase spend where it is least obvious, and the guest perceives more value. Reduce positions—support staff doesn’t generate as much revenue as servers, bartenders, line and pantry cooks. A smaller team is more efficient than a larger team. Ensure positions produce revenue including management. Optimize hours of operation—generally the first and last 30 minutes are the least productive of the day. Opening 30 minutes later and or closing 30 minutes earlier will save labor. Be sure to move prep to cross over busy times, bring the crew in later and coach productivity. If hours or days aren’t profitable consider closing them. Increase tip pool to kitchen—while minimum wage and higher prices producing higher tips have continued to benefit front-of-house, kitchen staff haven’t seen increases keeping up with the front. Some are addressing this by increasing more of the tip pool percentage to the kitchen working to raise wages by $2-$3 per hour in combination with wage increases. Simply chart out the increase to the front from higher minimum wage and tips and show the gap between front and back increasing and the front usually understands. Be careful and do this with your frontof-house staff—not to them. Use one or more of this potpourri—other common approaches being used are commission or revenue sharing models and adding a small percentage surcharge to the check. All these models take planning and thought and need to be researched. Others are reducing portion size or increasing prices with larger portions. Some companies are reducing head count with automation. While change is difficult and not always healthy, the restaurant model is changing. Minimum wage will continue to climb rapidly. The opportunity to improve or change the model is now. There will be casualties, but the strong will survive as the hospitality industry is a collection of survivors who learn to thrive in challenging times.  For more information on improving profitability and driving performance, contact AMP Services at rbraa@ampservices.com. Rick Braa is the co-founder of AMP Services, an accounting and consulting firm specializing in helping companies grow profitability.

Visit access.wahospitality.org to use the labor cost calculator.

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!

VISIT WHAEF.ORG for more info.

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The industry that serves. People | Careers | Communities

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