Washington Hospitality Magazine October 2017

October 2017 │ 1

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

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EDITORIAL STAFF Publisher, Anthony Anton Executive Editor, Lex Nepomuceno Editor-in-Chief, Marianne Scholl Art Director, Lisa Ellefson Managing Editor, Paul Schlienz Contributing Editors: Andy Cook, David Faro, Jillian Henze, Morgan Huether, Sheryl Jackson, and Stephanie McManus

Inside

wahospitality.org

EXECUTIVE COMMITTEE Chair: Frank Welton, Hilton Worldwide Vice Chair: Chad Mackay, Fire & Vine Hospitality EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Haase CFO: Darin Johnson Director of Business Development, Ken Wells Director of Communications & Technology, Lex Nepomuceno Director of Local Government Affairs, John Lane Director of State Government Affairs, Julia Gorton Director of Internal Operations, Kylie Kincaid Director of Membership, Steven Sweeney Education Foundation, Naja Hogander

510 Plum St. SE Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 wahospitality.org

Features 11

It’s Health Care Season

16

Sustainability: More Than Just a Pretty Word for Hotels

20

Food Sharing is a Win-Win

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Going for Green

In Every Issue 6

From Your President and CEO

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News Briefs

10

Industry Events

12

Local GA Update

13

State GA Update

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More Hospitality News

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.

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Lex on Tech

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Calendar/New 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.

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Ask the Expert

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.

ADVERTISING INQUIRIES MAY BE DIRECTED TO: Michele Holmes Allied Relations Manager 206.423.3902 MicheleH@wahospitality.org Washington Hospitality Magazine is published monthly for members. We welcome your comments and suggestions. email: news@wahospitality.org, phone: 800.225.7166.

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President and CEO

Getting Ahead of the Curve on Sustainability Hospitality is a solutions-oriented industry, and staying ahead of challenges and opportunities is important to our success.

We know that our customers are now more likely to expect healthy offerings and greener business practices. The National Restaurant Association’s 2017 State of the Industry report shows that 66 percent of all respondents would choose a restaurant with local sourcing over another restaurant, and 60 percent reported that environmentally-friendly food options would similarly sway their choice. This jumps even higher when looking just at millennials.

Booking.com, which has a huge amount of travel data, expects to see 36 percent more travelers this year than last year opting for more eco-friendly travel.

Being proactive on sustainability not only polls well with consumers; it keeps us ahead of regulatory approaches to issues. We won’t need new laws or regulations if we see what’s coming and make changes because we’ll already be where we need to be. We’ll have already adjusted and will not have a big problem if and when a new regulation comes online.

Being proactive on sustainability means taking a hard look at something like to-go containers. If 30 percent of all restaurant sales will soon be third-party deliveries, operators who never worried about to-go packaging are going to be using a lot of it. That means it’s time to look at packaging before we hardwire our costs and have no room to adjust. Plan ahead for phasing out products that are not recyclable or biodegradable.

This approach reminds me of Y2K. There’s a reason all the planes stayed in the air. We talked ad nauseam about the Y2K problem. Plenty of people thought all the warning bells were irrelevant. In fact, the warning bells worked so well that people did what needed to be done and there was no crisis.

We did this with paid family and medical leave. We saw an issue coming, we identified what we needed and then hammered out a solution with others that works for our businesses and our employees.

So how do you get ready for big changes?

Many of you will read this and say that changes should simply be made, whether it is in packaging, lighting or cleaning solutions, simply because it’s the right thing to do. But for those of you who aren’t driven to that as a solution, keep in mind that change is coming our way. The increase in the to-go segment, for example, and the trash that comes with it, will greatly impact communities. And by getting ahead of this, maybe just switching to one biodegradable product each month, you’ll send the message that you care strongly about your local community. This will resonate, especially with millennials who are driving the go local trend.

If figuring out what and how to change is a distraction from your business and your passions, maybe this is an assignment to give to millennials on your team. You might say, “Hey, as a side project, let’s look at our to-go cups this month. Tell me about the impact of to-go cups and go out and shop for new options. Bring me back a proposal.” You’ll build buy-in by tapping into their passions.

There is no one solution for increasing your sustainability, but there are plenty of options and resources—even financial incentives—to start taking steps. Whether you lead it, or a passionate employee takes it on, now is a good time to get started.

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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.

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Primary Source of Information | News Briefs

AHLA Counsel Fires Back at Patent Troll Targeting Hotels AHLA partner states have reported that members have received a letter alleging that the hotel has infringed on a patent related to the redemption of loyalty/rewards and points. The letter, sent out to thousands of hotels from a company named JBSHBM, states the property will not be sued for patent infringement if it pays JBSHBM a lump sum of $5,000 and annual payments of $500.

EEOC Sues Kansas Restaurant Operator Over Pay Inequity The federal Equal Employment Opportunity Commission is suing the former operator of a Kansas pizza restaurant for gender discrimination because it offered a higher wage to a 17-year-old boy than to a female applicant of the same age.

In 2016, high school friends Jensen Walcott and Jake Reed were both hired by a Pizza Studio restaurant, and the two compared their wage offers. When Jensen learned that she would be paid 25 cents an hour less than Jake, she raised concern with the company. In response, the manager withdrew both job offers on the premise that it was against company rules to discuss wages.

Their experience gained national attention, and the operator eventually stated that the hiring manager had been wrong and was no longer with the company.

Several brands sent strong letters to JBSHBM pushing back against these claims. AHLA also sent a letter putting JBSHBM on notice, calling their “undifferentiated assertion of patents from this portfolio against essentially the entire industry represented by AHLA as meritless.”

It also questioned the validity of JBSHBM’s patent claims and noted that the assertion of patents already deemed invalid is unlawful under various federal and state laws.

The EEOC filed suit last month against the operator, alleging that the company violated the Equal Pay Act of 1963, which makes it illegal to pay men and woman unequally for doing the same job. The federal law also makes it illegal to retaliate for contesting such action.

Oregon Passes Scheduling Legislation In August, Oregon became the first state to pass a secure scheduling law, mandating that retail, hospitality and foodservice employers with more than 500 workers give employees their schedules in writing at least a week ahead of time beginning in July 2018. In 2020, the requirement changes to providing written schedules two weeks in advance.

Under the new law, these employers will also be required to provide new employees upon hire with a written good-faith estimate of their work schedule.

The estimate needs to include the median number of hours an employee can expect to work in an average one-month period. Employers must also provide rest periods of at least 10 hours between shifts, unless the employee requests or consents to work during a rest period and is paid one-and-one-half times his or her regular pay rate for that time. The law does include a statewide preemption, banning localities from adopting their own scheduling ordinances.

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Primary Source of Information | Industry Events

Hoteliers Set to Meet at Another Great Lodging Convention This year’s Washington Lodging Convention, which takes place Oct. 22-24 at the Tulalip Resort Casino, is shaping up to be one of the most successful to date. Washington hoteliers have been gathering at the annual convention for over a decade, and each year attendees gain fresh insight into lodging trends and get hands-on information and advice from inspirational speakers and leading hotel experts. The many social opportunities also offer value to hoteliers, providing a chance to catch up with friends and build new relationships.

Convention highlights include the Stars of the Industry Awards dinner, the Northwest Hospitality Auction, a poolside welcome party and a full schedule of keynote and breakout sessions, including: Myths and Mayhem: Reinventing Service in a New Hospitality Climate ——— Glenn Haussman Editor-at-Large for Hotel Management Magazine Lodging trends expert Glenn Haussman has been closely observing how the traditional rules of hospitality are morphing in response to radical changes in the hospitality ecosystem. Despite the potential pitfalls, Glenn still sees this as an era of unprecedented opportunity. At the convention, he’ll debunk commonly held lodging industry myths and provide a clear path through marketplace changes that can lead to future success.

The War Rages: Hoteliers vs. The Distribution Disruptors ——— Greg Duff Garvey Schubert Barer Hospitality attorney Greg Duff will give you the background you need to better understand today’s distribution industry and the leading disruptors. You’ll learn key distribution considerations and negotiation points, and you’ll get a foretaste of future disruptors, all of which will help you position yourself to better weather the changing world of distribution.

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The New ICE Age? Surviving Immigration & Customs Enforcement Investigations ——— Catharine Morisset and Davis Bae, Fisher Phillips Do you know what you should have in place when Immigration and Customs Enforcement (ICE) arrives at your door? In this session, learn what you need to do to mitigate the potential fallout from an ICE investigation, which can include legal fees, lost productivity, steep fines, and the possible expansion into other compliance issues.

How to Unite Sales and Operations to Turn Guests into Fanatical Customers ——— Gary Hernbroth, Training for Winners Gary Hernbroth spent 18 years in the hospitality industry before launching a career helping teams re-tool for success in disruptive times. In a peer-to-peer learning session, he’ll help you identify the pitfalls that may be preventing your sales and operations teams from working effectively together. He’ll also illustrate how to develop a game plan to ensure that both teams sync their efforts to deliver on your hotel's promise.

Preventative Business Strategies to Comply with Washington’s New Employment Laws and Reduce Legal Risks in Your Workplace ——— Joseph G. Marra, Davis, Grimm, Payne & Marra Attorney and employment law expert Joseph G. Marra will review Washington’s new employment laws and common management mistakes that can open the door to litigation and put a company and the personal assets of individual supervisors at risk. You’ll learn important steps for protecting your company, and yourself, from workplace lawsuits.

The convention also boasts the state’s largest trade show specifically designed to meet the needs of lodging establishments. This year’s sold-out show features over 50 companies dedicated to helping hoteliers succeed. As of press time, the convention itself was not yet sold out.

Register to secure your spot at lodgingconvention.com.

Primary Source of Information | Cost-saving Programs

It’s Health Care Season

By David Faro It’s fall and time to start making plans for how you will meet your company’s health care needs in 2017.

First off, no one has a crystal ball, or at least one that you can take to the bank.

As you head into benefit and health care enrollment season, no one knows what the federal health care ecosystem is going to look like in the coming years. But what we do know is that the Affordable Care Act is still the law.

We also know that in a competitive labor market like you find in Washington state, your current employees and future prospects are paying more attention to health care coverage than ever before. Your offerings can be another important arrow to have in your quiver for recruiting and retaining talent.

Fortunately for members, Washington Hospitality has crafted a broad array of health care solutions specifically aimed at answering the needs of Washington’s hospitality businesses.

That means whether you represent a hotel, restaurant, café, bed and

breakfast, youth hostel, eldercare facility, bowling alley, pizza place, disco, night club, donut shop, motel or franchise, you have cost-effective and creative options.

IT’S THAT TIME OF YEAR. With enrollment season around the corner, Washington Hospitality has experts ready to help you evaluate your options. Give benefits specialist Lesley WebbHenry a call and find out what solutions will meet your needs.

If you have not yet looked at the health care solutions available through your membership, you have some exploring to do.

The Association has multiple medical and dental plans available for members. Large organizations can take advantage of minimum mssential coverage (MEC) programs that can save tens of thousands of dollars yearly and smaller organizations can utilize membership to make Tele-Medicine applications like Tela-Doc a part of employee’s benefits packages at a very low cost per person.

Employee assistance programs (EAP) are also a sought-after product.

Affordable assistance during a crisis has made all the difference to thousands of employees in the state.

Washington Hospitality has individual

Washington Hospitality Benefits Specialist lesleyh@clger.com 877.246.0545

options for managers and owners of smaller businesses as well. We know that 86 percent of restaurants in the state have less than 20 employees. We celebrate that, and we are constantly on the lookout for ways to leverage the market to your advantage. So now is the time to learn more about those options.

Benefit packages can be tailored to your organization’s specific needs: • • • • • • •

Individual, small, medium and large group options available.

Wellness programs and services.

Latino health solutions Employee assistance program Multiple dental plans Life and disability insurance Cobra administration

Our health care partners are out there gunning for wins, every day, on your behalf. They eat, drink and sleep heath care options so you don’t have to. Give our specialists a call and they’ll show you exactly what solutions will work for you.

October 2017 │ 11

Government Affairs | Local GA Update which will require owners to pay necessary lodging taxes and licensure fee and undergo annual inspections. Owners will also be required to provide additional off-street parking.

The council included an amendment in the ordinance that defines “principal residence” as being occupied by the owner for at least 275 days per year.

The policy comes as the first of a two-part plan to better regulate short-term rentals in Walla Walla. The second phase of the plan will focus on short-term rentals that are not the owner’s principal residence.

The push for regulating short-term rentals is also back on track in Seattle. In August, the Affordable Housing, Neighborhoods & Finance Committee discussed proposed short-term rental legislation that included basic health and safety protections for guests, licensing, tax and insurance requirements, and a mechanism to ensure compliance. It also limits operators to two dwelling units.

Every Vote Will Count!

Washington Hospitality encourages members to participate in the Nov. 7 general election. We have endorsed candidates in Tacoma and Spokane, and support the endorsements of the Seattle Hospitality for Progress, the political arm of the Seattle Restaurant Alliance and Seattle Hotel Association. The election of these endorsed candidates will be a victory for hospitality.

Seattle:

Mayor: Jenny Durkan City Attorney: Scott Lindsay

Tacoma:

Mayor: Victoria Woodards Council District 6: Meredith Neal Council District 4: Kevin Grossman Council District 5: Brian Arnold

Spokane:

Council District 2: Andy Dunau Council District 3: Matthew Howes

Short-Term Rental Ordinances: Walla Walla and Seattle In August, the Walla Walla City Council passed an ordinance regulating short-term rentals that are located at the owner’s principal residence.

The policy established a licensing process for short-term rentals, 12 │ wahospitality.org

The committee passed the measure on Sept. 15, and the necessary licensing and tax ordinances will likely be voted on by the full council in mid-October. A land use-related ordinance, which requires a public hearing, is likely to come later in the year.

Vancouver Adopts Accessory Dwelling Unit Ordinance The Vancouver City Council passed an ordinance to update its accessory dwelling unit policy in August. The ordinance removes owner occupancy requirements and parking requirements. It also relaxes design and square footage requirements. The policy does not exclude or define short-term rentals. The council does not anticipate the new ordinance will affect the short-term rental market in the city.

Paid Sick and Safe Leave Amendments Considered in Tacoma In November, Washington voters passed Initiative 1433, which mandates paid sick and safe leave accrual for employees.

When the initiative is implemented in January 2018, the City of Tacoma’s paid sick leave policy will no longer be relevant. The Tacoma City Council considered an amendment to the city’s policy that would align it with the state’s policy, which would have duplicated enforcement efforts. On Tuesday, August 15, the council voted to put the amendment on hold with a work session on August 29. If the policy is retired, business owners can focus on complying with the state-level regulation, instead of duplicate regulations.

required response time for requests for information from businesses from 10 days to three days. It also asked for changes in the language that states the Office of Labor Standards may require access to business premises to conduct investigations.

As of press time, Office of Labor Standards staff have said the office would amend the language regarding access. The new language may better reflect that the department may request access to a business, but may only require access through a subpoena.

Seattle Waiver for Plastic Straws and Eating Utensils May Expire in 2018

The office’s Director Dylan Orr has suggested changing the proposed business response time to five days instead of three as proposed in the draft rules. The shortened timeline does not allow sufficient opportunity for businesses to provide responses. The Seattle team is continuing to work on this issue.

Seattle restaurants have not yet had to comply with the city’s recyclable and compostable requirements when it comes to straws and disposable utensils, but that may change in 2018.

The City of Seattle has required food service businesses to use recyclable and compostable service ware since 2010, but it has issued an annual waiver ever since exempting plastic utensils and drinking straws. When the law went into effect, Seattle Public Utilities determined there were several types of products that either did not have compostable or recyclable alternatives or the alternatives did not meet acceptable performance standards.

The current waiver expires on June 30, 2018, and a Seattle Public Utilities official said his department does not intend to renew the waiver.

In addition to straws, the waiver would also not be extended for disposable plastic cutlery, cocktail straws, cocktail picks and portion cups requiring lids. The waivers for hot soup spoons and portion cups for hot foods may remain.

The Seattle Restaurant Alliance local government affairs team will keep members informed on next steps. For more information, email jillianh@wahospitality.org.

Seattle’s Office of Labor Standards Wants Tighter Response, Access Rules Seattle’s Office of Labor Standards is rewriting administrative rules to require businesses to respond more quickly to requests for information and to allow the office greater access to business premises.

Our Seattle Local Government Affairs team and business stakeholders provided feedback on the city’s draft Chapter 140 administrative rules governing the office’s practices and procedures investigations and appeals.

The team asked the city to reconsider reducing the

Sweetened Beverage Tax Rulemaking Underway The Seattle Local Government Affairs Team and several Seattle Restaurant Alliance members are participating in rulemaking meetings for the new sweetened beverage tax passed by the city council on June 5.

The complex new ordinance levies a 1.75-cent-per-ounce tax on sweetened beverages. The tax on concentrates, including syrups and powders, is calculated based on finished product, and it will be levied on all distributors who sell sweetened beverages within city limits beginning Jan. 1, 2018. Diet beverages are not subject to the tax.

Given that syrups are used in different ways, there are questions about how the tax on syrups will be calculated.

The city’s Finance and Administrative Services Department continues to identify questions it will need to address through rules, but as of press time it has not provided insight into what the final rules may include. Rules were expected to be finalized by Oct. 15. Look for updates on wahospitality.org.

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Government Affairs | State GA Update

Washington Hospitality Bluebook Released The Washington Hospitality Bluebook is out, providing useful information and statistics for the hospitality industry, the state’s largest employer segment. The Bluebook is designed for use by hospitality business owners and stakeholders, as well as state legislators, who have received copies.

Discuss Key Issues Impacting Your Business with Your Local Lawmakers!

Each year, the Washington Hospitality Association’s Government Affairs team holds a series of important member meetings around the state. Participants learn about issues that are on the horizon and find out how to help our industry’s advocacy efforts. Lawmakers are also invited to each meeting, giving you a chance to talk to your legislators about what the local economy, tourism and regulations mean for your business. Please join us at the meeting near you. For more details and to R.S.V.P, email KatieD@wahospitality.org or call 360.956.7279.

October 2: Leavenworth October 4: Port Ludlow October 5: Tacoma October 11: Seattle October 12: Vancouver October 17: Redmond October 18: Bellingham

Don’t Overpay Your Liquor License Fees Did you know that liquor license application fees were reduced on July 1, 2017? The Legislature increased license application fees by 6.2 percent for fiscal year 2015-2017 to help cover the costs of updating the Liquor and Cannabis Board’s 30-year-old recordkeeping system. This surcharge has ended, and you should see a reduction in your fees.

View the current fee schedule at wahospitality.org/retailliquor_license-fees or visit the LCB website at lcb.wa.gov for more information.

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The Bluebook will also arm our industry ambassadors with relevant statistics and timely data. The Bluebook’s first edition focuses on restaurants and foodservice, and we are actively working with new and potential partners to integrate lodging, tourism and entertainment into the next edition. Copies are $10 and will be mailed upon request.

They will also be available at the upcoming GA meetings and at next year’s summits. For more information, email bluebook@wahospitality.org.

Would you like to be a Hospitality Ambassador?

Now is the time.

GA Ambassadors do a few simple things each year to connect lawmakers with the real people of our industry.

Activities include delivering a PAC check to your legislator, participating in an action alert on major issues and attending Hill Climb. The most significant component is, with our guided help, building a relationship with your legislators to be a voice for our industry and your business.

If you’d like to help in this way, please email KatieD@ wahospitality.org to find out about ambassador training sessions near you.

Need a Copy of the Legislative Review?

Last month’s edition of the magazine was dedicated to how the Association’s Government Affairs team works for you, and it provides an in-depth look at the 2017 Legislative Session. Copies are still available by emailing StephanieM@ wahospitality.org.

More Hospitality News Washington Hospitality Association Members and their Employees Eligible for Tuition Assistance for Online MBA, EMBA A new educational partnership between Washington State University and the Washington Hospitality Association Education Foundation will grant thousands of hospitality professionals across the state access to a more affordable Master of Business Administration degree.

admission into the MBA or EMBA program. Current students who qualify for benefits under the agreement can begin to utilize the 10 percent in tuition assistance immediately.

“Whether it’s marketing, business development, accounting, or strategic planning, the opportunity to attend graduate school through our agreement with WSU puts an MBA within reach of many of our very busy members,” said Anthony Anton, president and CEO of Washington Hospitality.

Hospitality Industry Apprenticeship Program Off to Strong Start Hilton, Wyndham, Hyatt, The Hotel Group and other leading restaurant and hotel management companies have committed to registering 475 restaurant and hotel apprentices, surpassing the goal for the industry’s first Hospitality Sector Registered Apprenticeship (HSRA) program.

“Higher education is a game-changer. We are delighted that the Education Foundation could put this together with WSU. Our team is dedicated to our workers’ success, from the starting line to ownership.”

WSU offers four in-demand specializations in its MBA program, including a concentration in hospitality business management that focuses on business skills related to service management, international tourism, and hospitality operations.

Under the partnership, WSU’s Carson College of Business will offer 10 percent in tuition assistance for members of the Washington Hospitality Association and their employees who choose to pursue their online MBA or Executive MBA WSU. Eligible prospective students will also be exempt from the $75 application fee.

Prospective students who wish to take advantage of the tuition assistance and other benefits afforded by this partnership must meet the minimum requirements for

For more information about the MBA and EMBA programs at Washington State University, visit the Carson College of Business MBA programs website at onlinemba.wsu.edu.

Developed by the National Restaurant Association Educational Foundation and the American Hotel & Lodging Association, HSRA is an earn-while-you-learn apprenticeship program created for the nation’s restaurant, foodservice and lodging industries, which represent a combined total of 22.7 million employees.

The Department of Labor awarded the NRAEF and AHLA a contract to develop HSRA in 2016. The agency has issued a letter of intent to renew the contract for 2018.

“Investing in employees is central to who we are as an industry, as they are our greatest assets. Embracing apprenticeship initiatives aligns firmly with our industry’s long-term vision to better attract and secure individuals and help them achieve the American Dream,” said Katherine Lugar, president and CEO of AHLA. “Recruiting, training and retaining employees has never been more important given the growth of our industry and an increasingly competitive labor market. We look forward to continue securing and expanding apprenticeships throughout the industry.”

Apprenticeships are proven to reduce turnover costs, increase productivity, result in higher job satisfaction and create a more skilled and competitive workforce. In June, the DOL officially approved and signed HSRA standards to ensure apprentices acquire nationally recognized credentials and are equipped to pursue a variety of high paying management level positions across the restaurant, foodservice and hospitality industry.

For information on how to build a registered apprenticeship, visit chooserestaurants.org/Discover-Opportunities/Apprenticeship/ HSRA October 2017 │ 15

More Than Just a Pretty Word for Hotels

By Paul Schlienz

“Green.” “Sustainable.” We hear these words so much they’re almost cliché, but they describe something important.

Hotels that are taking steps to reduce their environmental impact are saving money in the long run, but they are also taking advantage of the desire of customers to patronize companies that share their values.

A 2015 Neilsen study found that almost two thirds of millennials are willing to pay more for sustainable offerings. Generation Z respondents, aged 15-20, are equally willing to pay more for products and services that come from companies who are committed to positive social and environmental impact.

Its recycling and composting program keeps 90 percent of the lodge’s waste out of landfills, that’s nearly three tractor-trailers full of trash each year that doesn’t go to the dump. Its paper towels, office paper, bath tissue, cup sleeves and facial tissues are made with material recovered from curbside recycling bins. Its hand soap is Green Seal Certified as biodegradable and nontoxic to aquatic life.

More than 55 percent of its lights are high performance T8s, LEDs or CFLs that use about up to 80 percent less energy, last longer and emit fewer greenhouse gases than incandescent lights.

“Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty.”

Under the leadership of Chef Joshua Diehl, Lake Crescent Lodge’s restaurant has also made great strides toward sustainability. It uses reusable cloth napkins instead of single-use paper one. Its dishwasher sanitizes with hot water instead of chemicals, which helps protect water quality, and it uses solid block dish detergents, which use 60 percent less packaging materials than their liquid counterparts.

One hotel that fully embraces everything “being green” suggests is Lake Crescent Lodge in Olympic National Park.

Together, its Energy Star-qualified dishwasher, steamer, oven and refrigerators are 25 percent more energy efficient

Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share but build loyalty.

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than conventional models, and the dishwasher and steamer use about 30 percent less water. More than 40 percent of the restaurant’s main dishes are vegan or vegetarian, which require significantly less energy and water to produce than meat. And the facility is Styrofoam-free, keeping harmful chemicals and litter out of the environment.

“It’s easy to get people to care about the environment in such a beautiful place as Lake Crescent,” said Diehl.

“Making the restaurant as sustainable as it’s become meant a personal change for me as well for my cooks. Culture change means getting people to buy into why it’s good.”

“You’ve got to light a spark first,” said Diehl. “Professional kitchens are role models. “If we set standards and make sustainability popular, it trickles down to the masses. That’s when a major turning point can happen.”

Saving Energy, Saving Dollars Hotel owners and operators care about their communities, so no one should be too surprised that lodging establishments are taking a leading role in demonstrating how businesses can become energy efficient – and it is to their advantage to do so.

“Hotels have common areas that are lit, heated and cooled 24 hours a day, seven days a week, 365 days a year,” said Tom Lienhard, chief energy efficiency engineer at Avista, the utility that services a large swath of Eastern Washington.

“Upgrading to more efficient lighting offers energy savings, cost savings and reduced maintenance. Avista also has rebates for installing energy efficient heating equipment which can help reduce operating costs.”

Lienhard added that hotels also have guest rooms that are left at the temperature set by the occupant even though the average guest only spends less than nine hours per day in the room. This means a lot of energy is being wasted either heating or cooling the space.

“We can help install guest room energy management systems to control the room when it’s not being occupied,” Lienhard added.

One hotelier who discovered the value of making his business energy efficient is Ron Oh, general manager of the Holiday Inn Express on Aurora Avenue North in Seattle and a board member of the Washington Hospitality Association.

“We’ve had great experiences working with Seattle City Light,” said Oh. “The City of Seattle pays for outdoor LED lights and other improvements. Getting new toilets alone saved us nearly $26,000 in water usage.”

Oh, who is active in the Korean American Hotel Owners Association, is such a believer in the value of energy efficiency that he has become an evangelist for the gospel

of being green, showing his fellow Korean hotel owners how the kinds of upgrades he’s made in his own hotel can help their bottom lines, too.

“Keep in mind that it is a capital expense that involves an investment of time and money,” said Oh. “Before you do any major capital improvements, talk with your local utilities. Find out what they offer. Many of their programs are underused. Remember that there’s money available to help you become more environmentally friendly in your operations.”

Oh is on the board of EnviroStars, a free, one-stop hub for Washington businesses to get information, help and recognition for actions that protect their workplace, the community and the planet. Led by a large coalition of cities, counties and utilities, EnviroStars links businesses to local environmental programs and incentives that can help them take green actions and get recognized for it.

For all he has done at his own hotel, Oh was singled out for recognition as an EnviroStar by the organization.

“It’s becoming easier and a lot cheaper all the time to be green,” said Oh. “Best of all it’s profitable, and you really are doing something good for the environment.”

October 2017 │ 17

Plenty of Help Out There Indeed, Washington’s utilities offer great opportunities for business customers to reduce their consumption. Within the Puget Sound region, the major utilities all offer a significant rebate for energy efficiency upgrades. And there is now a single application process in all the utility service areas.

“It’s a regional program that was developed with our partner utilities – Puget Sound Energy, Seattle City Light, Snohomish County Public Utility District, Cascade Natural Gas, Tacoma Water – and the Saving Water Partnership,” said Patrick Urain, conservation program manager at Tacoma Power. “All the utilities got together because what we heard from our customers was that we have businesses in multiple service territories, and to have to apply in Tacoma, to re-apply in Seattle and to do a different application each time, it’s really not efficient and it doesn’t lend itself to people wanting to use our programs.”

Urain adds that utility representatives will come to your business and make on-site assessments of how you can become more energy efficient.

Across the state, in the Avista service area, rebates and other programs are also available for energy conservation

upgrades. And many businesses are taking advantage of these bargains.

“We’ve seen an uptick from the smaller facilities, as part of Avista’s Small Business Energy Efficiency program,” said Greta Zink, program manager at Avista. “With this program, field reps are installing energy-saving devices and equipment – at no cost to the customer. Included in this outreach, are 68 hotel/motel customers and 792 restaurants that we’ve visited.

It’s easy to see why there’s so much interest in these programs. After all, running a business means looking after your bottom line, and these energy saving measures will help a business’ long-term bottom line.

But there is more at stake here.

“I have a wife and children who live with me not far from Lake Crescent Lodge,” said Diehl. “Being good stewards of the environment is an important example to our children.

You’ll realize the importance of sustainability if you take the time to appreciate your surroundings, appreciate your community and appreciate the beauty around you. Once you’ve done that, you’ll want to act on it.”

Save Energy, Save Money Updating lighting is one of the most costeffective ways to save energy and money.

Find out what incentives your public utility is offering.

Avista myavista.com/energy-savings/tools-foryour-business/rebates-washington Cascade Natural Gas cngconserve.com/savings-for-yourbusiness Puget Sound Energy pse.com/savingsandenergycenter/ ForBusinesses/Pages/default.aspx Seattle City Light seattle.gov/light/conserve/Business Snohomish County Public Utility District snopud.com/business/rebatesincentives. ashx?p=2051

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Tacoma Public Utilities mytpu.org/your-business/ways-to-save/ rebate-forms-information.htm

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October 2017 │ 19

By Jillian Henze Leftover lunch is treasure in Seattle.

Members of the Washington Hospitality Association have linked up with Food Lifeline, a local nonprofit associated with Feeding America, to reduce food waste and feed the hungry. Now that’s a waste management solution with benefits.

U.S. by 2020, said Laura Olson, senior manager of Global Responsibility at Starbucks. Since the launch, Starbucks has donated two million meals to the hungry and is expecting to donate 50 million meals annually when all U.S. stores are participating in 2020, she said.

“You can make a difference,” said Mark Coleman, the communication director for Food Lifeline. “And it helps keep food out of the landfill.

Help your neighbors and save the environment.”

Olson said store employees, called “partners,” kept telling headquarters they didn’t want to throw away food every day. Starbucks’ pastries and food items get pulled from the case daily, but they’re still safe to consume for 72 hours, Olson said.

Starbucks launched its foodshare program in March 2016 and intends to scale it to all store locations in the

And with the company’s new lunch menu adding sandwiches, salads, paninis and yogurt parfaits to stores,

the amount of food that would potentially be tossed was anticipated to grow.

Multiple departments came together including tax, finance, supply chain and more, to figure out how to get the leftovers to those in need across the U.S., Olson said.

The logistics are complex, but they have created a system that works. In Seattle, Food Lifeline is critical to success.

“We knew that to capture our reach, we needed a partner to do so,” said Olson. “This goes back to using our scale for good.”

The Tax Benefits of Foodsharing Donating prepared food not only feeds those in need. It reduces the waste your business needs to manage, and it supports your corporate social responsibility program. It also offers tax deductions.

Thanks to the 2015 PATH Act’s revision of how donations of food are treated in the tax code, foodservice operators have more certainty and clarity about the tax benefits of food donations.

The change in the law makes the enhanced tax deduction permanent and allows all companies to claim the enhanced deduction as long as they donate their food to 501(c)(3) charitable organizations.

It also increases the cap for food donation deductions, allows all eligible businesses to carry over a deduction for up to five years, and it allows donors that use cash basis accounting to estimate their cost to produce the food as part of their enhanced tax deduction.

Contact your tax advisor to confirm what federal food donation tax incentives mean for your business.

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Started in 1979, Western Washington’s Food Lifeline served 708,000 people 32 million meals in 2016, Coleman said, and is now working with Starbucks on its FoodShare Initiative.

In the stores, the Starbucks food for donation is already prepared and packaged, so no additional prep labor is required. Partners audit leftovers and throw items away that don’t meet health and safety standards, Olson said.

Daily after business hours, Food Lifeline refrigerated trucks stop by the stores and pick up the donated food. Then, the trucks deliver the food to its network of local food banks and neighborhood agencies the next morning.

Because Starbucks has such a large volume of rescued food to move each day, the company has made investments in the Feeding America and Food Lifeline infrastructure, Olson said. This includes providing grant funding to these nonprofits so they can purchase refrigerated trucks and pay drivers for daily transportation.

Coleman said his nonprofit is working on hiring 17 drivers to transport all of the additional rescued food.

Like Starbucks, many Washington Hospitality member restaurants are making a difference with their unused food.

Tutta Bella Neapolitan Pizzeria, Schwartz Brothers Restaurants and Bon Appetit are among the many Seattle-area restaurants supporting Food Lifeline through Seattle’s Table and other initiatives.

For Seattle’s Table, the donated food from restaurants, cafeterias, hotels and universities is dished up as a free hot meal program in their neighborhoods.

Amy French, the director of marketing and community relations for Tutta Bella Neapolitan Pizzeria, said her company has partnered with Food Lifeline since 2012. It donates rescued

food to the Seattle’s Table program and sends the rest to Cedar Grove in Redmond for food waste composting.

Tutta Bella supports Food Lifeline because it’s easy, French said.

Restaurants may have part of a tray of lasagna left over or an imperfect pizza. These foods simply get marked

with special packaging and put in the restaurant freezer. A local nonprofit affiliated with Food Lifeline picks up the food once per week and staff members communicate with the organization to make sure pickups are timely.

In 2016, Tutta Bella donated 7,600 pounds of food or 6,300 meals. In addition to helping end hunger in Washington, Tutta Bella’s employees are proud to be helping feed their neighbors.

“It’s part of our values around nourishing lives,” French said.

Everyone Wins With Food Donations 1 in 5 kids in Washington state lives in a household that struggles to put food on the table, according to Northwest Harvest. Here are several organizations that will help your business donate food so these kids don’t go hungry.

FOOD LIFELINE Handles all logistics from picking up unused food, tracking it, repackaging it and handling all the regulations and safety issues. Distributes food in Western Washington to 275 members of its food program network, including food banks, food pantries, hot meal programs, shelters and after-school programs. www.foodlifeline.org/how-to-help/food-industry FEED SPOKANE Picks up prepared food and then distributes it to nonprofit organizations that serve free meals. It is as simple as freezing food and calling for pick up. www.feedspokane.com NORTHWEST HARVEST Washington’s largest hunger relief network with more than 380 food banks, meal programs and high-need schools across the state. While it does not pick up surplus food from restaurants and hotels, the Northwest Harvest website has a tool to help you find a food bank anywhere in Washington. www.northwestharvest.org/statewide-network

October 2017 │ 21

Green dining appeals to customers, but restaurateurs must overcome challenges.

By Morgan Huether

The sustainable, eco-friendly market is always changing.

It isn’t a one-size fits all solution, but focusing on greater sustainability can lead to cost savings and give you an edge with the growing consumer preference for green-friendly establishments.

There are now statistics that demonstrate just how far we’ve come with greener, more sustainable living and purchasing habits.

The National Restaurant Association’s 2016 National Household Survey asked more than 1,000 Americans about their preferences. Of all adults surveyed, 60 percent reported that environmentally-friendly food would make them choose one restaurant over a similar restaurant.

Locally-sourced food was similarly impactful, influencing 66 percent of survey participants to choose one restaurant over a similar one.

Making menu changes to better serve a majority of consumers seems like the best and most obvious path many restaurateurs should take when possible, but even more than just food options, 79 percent of consumers prefer dining at green restaurants according to a nationwide Technomic survey.

This presents a problem for many restaurants that have tried to make changes to be greener but have hit seemingly insurmountable hurdles.

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Switching takeout containers to compostable, recyclable or sustainably sourced containers is one step towards sustainability.

Restaurants with soup or especially sauce-heavy offerings, however, may find compostable containers to be problematic.

Taylor Hoang, owner of the Pho Cyclo restaurants and executive director of the Seattle-based Ethnic Business Coalition spoke on behalf of ethnic-themed restaurants when the City of Seattle began exploring mandatory compostable to-go containers.

“What I kept hearing from small, family-operated ethnic restaurateurs was that they had experimented with these products in the past, but a combination of their food’s temperature and ‘saucy’ composition destroyed the containers,” Hoang said.

To illustrate their point, Hoang hosted Seattle Public Utilities leadership and staff to an experiment where they filled compostable containers with a variety of cuisines to demonstrate the effects some foods have on the containers.

The containers were tested in 15-minute segments from 15 minutes to an hour. The containers were all purchased from the likely outlets for small ethnic restaurants such as Cash & Carry and Costco.

All the tested containers melted, and compostable spoons in Pho came out looking like a cartoon spoon dipped in acid.

Financial incentives There are often city, county or state tax incentives and rebates to encourage green habits, yet these vary city by city and it can be an additional hurdle to find and qualify for applicable programs.

Despite these challenges, it is important for restaurateurs to keep in mind that if something like switching containers isn’t viable, there are many ways to move toward greater sustainability.

“If that option isn’t good, there are ten other steps right behind, don’t get stuck,” said Michael Oshman, founder of the Green Restaurant Association.

Businesses have faced confusion in trying to figure out which local government entities and agencies provided resources and rebates to become eco-friendly, said Green Business Advocate Stephanie Gowing of the City of Seattle’s Office of Economic Development. Her office is working to change that.

In September, her office launched envirostars.com to connect resources from cities, counties and the state on one website for business owners to search. Participating cities’ and counties’ resources will be listed for business owners to search.

79 percent of consumers prefer dining at green restaurants —according to a nationwide Technomic survey

October 2017 │ 23

“[It’s a] one-stop hub for Washington businesses to get information and get recognized for their good work,” Gowing said. “Businesses can create a profile and begin going through their checklist to see ways they can conserve resources and prevent pollution.”

Another easy retrofit McPherson suggested is installing low flow aerators for hand sinks as well as sensor faucets for handwashing.

The EnviroStars program is intended to make it easier for businesses to get started with sustainability practices or take their environmental commitment to the next level, as well as gain access to incentives, recognition and marketing support through a collective brand and web portal.

Although he’s been too busy running his restaurants to quantify the savings these changes have brought his businesses, McPherson said it was worth it to make the changes to go green.

There is no cost to participate and become a Green Business through EnviroStars. With these tools in hand, the perpetual hurdles can instead lead to cost-savings and more efficient behaviors while also offering restaurants an edge over similar competition.

Blackbird Tavern & Kitchen and Manito’s Tap House in Spokane are both certified EnviroStars, and they are also Washington’s only four-star Certified Green Restaurants, the highest certification offered by the Green Restaurant Association.

Owner Patrick McPherson built both restaurants with the intention of being green and sustainable. He said he recognized it was a hurdle to retrofit, especially with equipment. But some changes were more reasonable.

“One thing people should jump on that is easy to do is LED lighting,” McPherson said.

Using a chain lighting company and rebates offered by Avista, a utility company, McPherson said they upgraded all fixtures to LED for about $150 after rebates by doing the changes himself. This was especially beneficial because the LED bulbs don’t have to be replaced as often and they draw less power.

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“It’s easy if you’re fairly handy,” McPherson said.

Check out EnviroStars.org Launched in September, the EnviroStars website, www.envirostars. org, is a one-stop hub for local resources and recognition for becoming a greener business. It now serves all businesses in Washington state.

Log on to the website to explore sustainable practices or take what you are already doing to the next level. Participating utilities include Seattle City Light, Avista and Tacoma Public Utilities. Access rebates through the website or go to page 18 for direct links to rebate and incentive pages for Washington’s largest utility companies.

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Slow Checks Should be a Thing of the Past All sectors of the hospitality industry need to take advantage of the speed and ease of automated or expedited checkouts.

By Lex Nepomuceno The last time I stayed in a hotel, I was automatically checked out without having to go to the front desk. The last cruise I took, which was about a year ago, I was able to checkout and settle all my bills using the TV monitor in my cabin. When I recently went to the grocery store, I saved several minutes by using the self-checkout line.

Unfortunately, during a recent dinner in one of the top restaurants in Seattle, it took nearly 30 minutes after we were done with dinner to pay our bill.

In almost every segment of hospitality, expedited checkout is becoming ubiquitous, except in full-service restaurants.

Part of the challenge for operators may be concerns over potential effects on the fine dining experience. However, all of the ambiance and world-class food can’t make up for my having to wait when I’m done with dinner and want to leave. No matter how good the service, my satisfaction drops precipitously when I’m faced with a forgotten or delayed check.

According to a new report from the American Customer Satisfaction Index (ACSI), in the accommodations and foodservice segment, customer satisfaction is down this year compared to last year. The decline is attributed to "a sharp

drop in customer satisfaction with fullservice restaurants.”

"For the first time ever, fast food restaurants do better than full-service restaurants," ACSI wrote. "Just a year ago, full-service restaurants were rated among the top four industries tracked by the ACSI, but they now register below many other industries, including banks, life insurance and fast food."

Are tabletop checkout systems the only solution? Certainly not. There are emerging concepts such as “fast fine” that implements more of a counter check out and ordering system. Mobile solutions can also be used where the checkout process is facilitated entirely on the phone.

Hopefully in the near future, full-service restaurants will find a balance between efficiency and dining experience.

The rest of hospitality is adopting more efficient solutions for customers to settle their bills. Ultimately, this can be a big win for businesses by alleviating labor pressures during rush times, allowing tables to turn faster when new diners are waiting.

The time for automated checkouts is here, and establishments that ignore this trend will end up paying the bill.

In almost every segment of hospitality, expedited checkout is becoming ubiquitous.

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Are you experienced?

Remember when your liquor license was being called into question and you almost lost it?

Experienced servers will tell you; get trained, know your stuff, and don’t put your job or employer at risk.

Experienced bartenders know the rules.

Do yours?

VISIT WHAEF.ORG for more info.

SERVSAFE ALCOHOL HOSPITALITY TRAINING SOLUTIONS October 2017 │ 27

NEW MEMBERS INDUSTRY CALENDAR October/November TRAINING Oct. 23

ServSafe® Manager, Everett

Nov. 7

ServSafe® Manager, Seattle

Nov. 13

ServSafe® Manager, Kent

Nov. 16

ServSafe® Manager, Tacoma

MEETINGS Oct. 11

GA Regional Meeting, Seattle

Oct. 12

GA Regional Meeting, Vancouver

Oct. 12

Seattle Hotel Association Board Meeting

Oct. 13

Fall Institute

Oct. 17

GA Regional Meeting, East King

Oct. 17

Spokane Hotel/Motel Association Meeting

Oct. 17

Finance Committee Meeting

Oct. 17

Spokane Chapter Membership Meeting

Oct. 18

GA Regional Meeting, Bellingham

Oct. 24

Education Foundation Board Meeting

Oct. 24

MSC Board Meeting

Oct. 25

Hospitality Board Meeting

Nov. 7

Executive Committee Monthly Meeting

Nov. 8

Seattle Restaurant Alliance Meeting

Nov. 8

MSC Sub-Committee Meeting

Nov. 9

Seattle Hotel Association General Membership Meeting

Nov. 16

Retro Invest Workgroup

Nov. 16

Retro Trustees Meeting

Nov. 21

HIHIT Board Meeting

Nov. 21

Spokane Hotel/Motel Association Meeting

Nov. 21

Spokane Chapter Board Meeting

UPCOMING EVENTS Oct. 22

Washington Lodging Convention

Jan. 29

Hill Climb & Taste Our Best

Alma Mater, Tacoma Andy’s Fish House, Snohomish Bellevue Brewing Company, Bellevue Black Bear Diner, Puyallup Black Fleet Brewing Taproom & Kitchen, Tacoma Bumpy’s, Puyallup Coastal Hotel Group Inc., Bellevue Country Inn and Suites Seattle Airport, Seatac Defined by Water, LLC, Bellevue Engel’s Pub, Edmonds Firehouse Subs, Spokane Green Light Diner, Poulsbo Harry’s on Tye, Monroe Hilton Garden Inn Seattle Downtown, Seattle Holiday Inn Hotel & Suites, Lacey

Kamado International LLC, Seattle Latitude Restaurants, Bellingham Liquid Lime, Kirkland Miller’s Guild, Seattle Nana’s Mexican Restaurant, Seattle Old Schoolhouse Taproom, Winthrop Residence Inn by Marriott Seattle Downtown/South Lake Union, Seattle Skagit River Resort, LLC, Rockport SLS Seattle Steam Plant Kitchen & Brewery, Spokane Subway – Sunset, Bellingham Synergy Pacific Management, LLC, Yakima Tapps Island Golf Course, Lake Tapps Tipsy, Olympia

NEW ALLIED MEMBERS Batdorf & Bronson Coffee Roasters Dave Wasson dwasson@batdorf.com 200 Market St NE Olympia, WA 98501-6965 3607533391 batdorfcoffee.com

PepsiCo Ryan Mcbreen ryan.mcbreen@pepsico.com 2300 26th Ave S Seattle, WA 98144-5339 206.344.2624 www.pepsico.com

National specialty coffee roaster offering espresso, blends, single origins and organics. Training and support are part of our “coffee without compromise” philosophy.

We are a leading global food and beverage company with brands that are respected household names throughout the world.

Guestware Mike Benjamin mike.benjamin@guestware.com 100 4th Ave North, Suite 400 Seattle, WA 98109-4905 206.315.5466 www.guestware.com Guestware is a powerful guest service platform used by hospitality companies around the world to attain the highest levels of guest satisfacation and operational efficiency. Guestware streamlines communication between guests and hotel staff to create more efficient workflow and exceed guest expectations. The Guestware cloud platform also integrates with other hotel systems to automate processes from guest recognition to maintenance and service request fulfillment. Members receive 30% off guestware professional implementation services.

North Country Business Products Inc Ana Versaggi versaggia@ncbpinc.com 9905 45TH AVE N Ste 100 Plymouth, MN 55442-2500 763.509.6025 www.NCBPINC.COM North Country Business Products is a leading POS solutions provider optimizing customers’ business.

Specializing in the hospitality industry, NCBP has partnered with Oracle Hospitality and FuturePOS to offer customers innovative solutions and support.

Umami Jobs Travis Stanley Jones travis@umamijobs.com 3055 21st Ave West Seattle, WA 98199-2987 206.351.8422 www.umamijobs.com We are a video-based hiring platform built for & by the hospitality industry.

Think Twice Justin Thompson 1800 Mill Creek Road Unit 27A Mill Creek, WA 98012-8068 866.657.5658 justin@thinktwice.us www.thinktwice.us Think Twice provides a practical and simple DUI Prevention solution for alcohol serving establishments such as restaurants, bars, lounges, hotels, casinos and entertainment venues who want to limit their liability, help protect their business while looking out for the safety & well-being of their patrons. We work with Uber to offer your patrons ride discounts and incentives as an alternative to drinking and driving. In addition to the above benefits, Think Twice can effectively lower your DUI rate and your general liability insurance costs. If you or anyone you know has been impacted by drinking and driving, please feel free to contact us today toll-free at 1-866-657-5658 or directly at justin@think-twice.us Website: WWW.THINK-TWICE.US Exclusive 20% discount on services for all members

28 │ wahospitality.org

NAVIGATING

CLIMATES

WASHINGTON LODGING CONVENTION

TULALIP RESORT CASINO | OCTOBER 22-24, 2017

WAHOSPITALITY.ORG/CONVENTION ECONOMIC

CLIMATE

CONSUMER

CLIMATE

POLITICAL

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Ask the Expert

Forecast Accurately to Take Control of Your Business

By Rick Braa, CHAE

With the recent shifts in the economy, my business has become unstable. As we navigate into the next season, how do I create more stability?

The business landscape is changing for restaurants. As the economy shifts, pressure has increased while creating new opportunity. Grocery stores continue to offer more hot, prepared foods; third party delivery has put more pressure on meal periods and high performance; and minimum wage along with a tight labor market has led to increased wages.

We’ve come to a point where the best operators will survive and thrive while the less experienced or operators of poorly placed concepts will struggle. Now more than ever, keeping a keen focus on the guest and employee experience is a requirement, and forecasting and planning are a must.

Use big data. Start with current trends and forecast one week at a time. If sales have consistently been up 5 percent over the prior year, don’t complicate things. Look at external factors such as weather, new construction, new competition and big events such as a game or eclipse. Add or subtract from your baseline trend. For example, if sales have been consistently 5 percent over prior year and you know there will be an impactful event in the upcoming week, add or subtract the impact on the trend. The key is to stay big. Forecasts fall apart when built from too much detail. The margin of error increases with every data point included in your forecast.

Spread the forecast by day. Use averages of the amount of sales typically done for each day. If Friday is 15 percent, Saturday 15 percent, Sunday 10 percent, etc. use those percentages to forecast sales for that day. When totaling every day, the dollar totals should equal the dollars forecast for the week and percentages add up to 100 percent.

Use the forecast for purchasing labor and product and cash flow management. If you don’t have it, don’t spend it. For example, if sales were forecast for the week at $50,000 and target is to run 10 percent back of house and 8 percent front of house labor, you have $5,000 and $4,000 respectively to spend. Spread that out by day to set the daily budget and don’t exceed the budget for the week. If you do, go back and reduce the number of scheduled hours, typically at the beginning and end of each shift.

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Do the same for product. If the forecast is $50,000 with targeted 25 percent product cost, budget $12,500 and spread that by day. This will keep inventory from building and create a smaller, tighter inventory. Waste will eat into inventory until waste is reduced or eliminated, since there won’t be a large enough inventory to accommodate waste.

Additionally, use your forecasted sales number to project cash flow. Sales, tax, tips, and payroll are collected and used in advance of payment. Make sure there are two weeks of forecasted sales in the bank or risk running out of money, especially toward the beginning of the month when rent, taxes and payroll are all due. When there is less than two weeks of sales in the bank, the business is financially unhealthy and will ultimately need an infusion if improvement isn’t made.

Measure accuracy and improve it. The margin of error for a good forecast is plus or minus four percent.

If you forecast $50,000, then the acceptable forecast range would be $48,000 to $52,000. That breaks down to a $571-per-day variance, which isn’t enough to cover big staffing differences or purchase changes. For example, inventory may go up or down $500 for the week, which is an acceptable variance that can be made up the following week. Study why the forecast was off and use that as part of the big data set in the analytical stage of setting future forecasts.

Developing and applying an accurate forecast is a proven way to maximize profit and gain control of your business. If goals are set and met, there aren’t any surprises.

While forecasting is a traditional practice, the results are tried, true and timeless.

For a more information on improving profitability and driving sales, contact AMP Services at rbraa@ampservices.com. Rick Braa is the founder of AMP Services, an accounting and consulting firm specializing in helping companies grow profitability.

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