Washington Hospitality Magazine September 2017

WA S H I N GTO N

LEGISLATIVE

REVIEW

September 2017

A Look Back at the 2017 Legislative Session

What You Need to Know About: • Paid Family & Medical Leave • Pregnancy Accommodations • I-1433 Rulemaking & More

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

September 2017 │ 1

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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 Editor, Andy Cook Contributing Editor, David Faro Contributing Editor, Jillian Henze Contributing Editor, Morgan Huether Contributing Editor, Stephanie McManus Research Editor, Sheryl Jackson

Inside

wahospitality.org

EXECUTIVE COMMITTEE Co-chair, Phil Costello Stop n’ Go Family Drive In Co-chair, Frank Welton Hilton Worldwide EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Haase 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

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: 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.

Circulation: 6,310.

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Features 11

From Government Affairs Chairs

12

A Decade Of Protecting Your Interests

14

2017 Legislative Session in Review

20

Heroes To Our Industry

22

Spotlight on Our Ambassadors

In Every Issue 6

From Your President and CEO

7

News Briefs

8

Local GA Update

28

Calendar/New Members

30

Ask the Expert

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A Road Map to Solutions that Work for Our Industry The bipartisan passage of Washington’s new paid family leave law offers more than an employer and employee-funded insurance program. It gives us a road map to a new kind of future where we proactively find workable solutions to the policy challenges facing for our industry.

Last summer, we got wind that paid family leave was going to follow the minimum wage as the next big push. Washington Hospitality quickly did some initial polling and learned that paid family leave was even more popular with the public than raising the minimum wage had been.

We also learned that some labor folks were talking, not about two or three months paid leave, as you’d think for maternity leave, but six to nine months of paid family leave. And it wasn’t just maternity or paternity leave, but grandparent leave and other forms of leave for all kinds of reasons. They felt employers should bear 100 percent of the cost with no recognition of the hardship this would put on employers.

When you learn that something like paid family leave is popular and definitely going to be pursued by its proponents, it’s time to start thinking about what exactly your business could absorb. We asked ourselves what Washington’s hospitality industry could live with and what we would need for a paid family leave program to work for us. By asking the questions, we were able to articulate what a paid family leave program we could support might look like.

Next, we found partners in Microsoft, the Association of Washington Businesses and the Seattle Metropolitan Chamber of Commerce. Together we ran a poll not just on where the public was on the overall idea of paid family leave, but on where they were on the details. We found that the public was nowhere near where labor was. They did not expect six months of paid leave, and they did think employees should bear a share of the costs.

This gave us a framework to turn our small coalition into something bigger. We spend several months encouraging the rest of the business community to realize that if we didn’t want to face an unwinnable campaign over an untenable initiative, we needed to get ourselves into a solutions mode.

We spent several months doing just that. After lots of hard work, we had core principles that the entire business community could rally around. Then we sat down lawmakers, labor unions and others to come up with a workable program.

It wasn’t easy. It took several months, but with our common goal of finding the right answer for Washington, we were able to help find a paid family and medical leave solution that: • • • • •

Both employers and employees fund through a payroll tax.

Protects small businesses from premiums, but provides benefits to their employees.

Allows businesses with superior leave programs to opt out.

Provides small- and medium-sized businesses with $3,000 in financial assistance when hiring a temporary worker to cover for an employee on paid leave.

Prohibits local governments from adopting their own leave laws.

If we’d left the issue to be decided at the polls, we would have eventually ended up with something very different.

Employers might have borne the full burden of a payroll tax, as they do in D.C., or simply had a mandate to provide paid leave as they do in San Francisco. We might have faced six months of paid leave, or a leave program available to all kinds of relatives for all kinds of reasons.

Instead, we’ve created a road map to doing it right. We identified the issue early on, conducted polling, built a coalition around core principles, then encouraging negotiations to craft a solution that works for all sides. This is what the new Hospitality is about.

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Primary Source of Information | News Briefs

2018 Federal Per Diem Rates Go into Effect Oct. 1 The 2018 federal per diem rates recently released by the General Services Administration are a mixed bag for Washington hotels. Federal per diem rates establish the maximum amount government travelers may pay for hotel rooms, meals and incidentals. The 2018 rates go into effect on Oct. 1, 2017.

The per diem rates for meals and incidentals will remain the same across the state in 2018, but the change in the per diem accommodation rate for Washington’s nine non-standard regions ranges from a 26 percent jump to a 12 percent decline, depending on the location and the month.

Olympia (Thurston County) saw the greatest across-theboard increase, jumping from $103 for all months to $128 from November through August, a 24 percent increase, and to $112 for Oct. 2017 and Sept. 2018. Everett/ Lynnwood (Snohomish County) and Vancouver (Clark, Cowlitz and Skamania) also went from one rate for the year to high and low season rates.

Several regions will see adjustments in the months considered high season. In Seattle/King for example, Oct. 2017 is no longer considered high season and fell 13 percent to the off season rate of $179. Sept. 2018, however, jumped 19 percent to $244, which is the new rate for June, July and August.

The standard rate that applies to all other areas rose two percent to reach $93 for accommodations. It remained at $51 for meals and incidentals. For details on all of the nonstandard regions and rates in Washington, visit www.gsa. gov/perdiem.

Golf FORE! Education Tees Off on Sept. 19 As we go to press, the ninth annual Golf FORE! Education is selling out fast. If you want to join the fun and fundraising for Washington Hospitality Education Foundation’s ProStart Program, visit golf.wahospitality. org. The shotgun tourney takes place at the Washington National Golf Club in Auburn on Sept. 18 and is followed by dinner, prizes and an auction. In addition to supporting the ProStart program itself, this fundraising effort makes it possible for the Education Foundation to give scholarships to stand-out ProStart students.

Washington Hoteliers will Gather at the Lodging Convention Oct. 22-24 At this year’s Washington Lodging Convention, industry thought leaders, advisors and experts will arm hoteliers with the latest intel, fresh insight and effective strategies for weathering the challenges and grabbing the opportunities coming our way. The Convention takes place at the Tulalip Resort Casino Oct. 22-24, and there is still time to register at lodgingconvention.com.

Speakers at the state’s most popular lodging event include, among others, Hotel Management Magazine’s editor-atlarge Glenn Haussman on reinventing service in a new hospitality climate; hospitality industry coach and trainer Gary Hernbroth on how to unite sales and operations to turn guests into fanatical customers; economist Steve Lerch with an economic forecast for Washington, and attorneys Catharine Morisset and Davis Bae on how to survive the new age of Immigration & Customs Enforcement.

September 2017 │ 7

Local Government Affairs Update: Elections Seattle Recap Seattle Hospitality for Progress, the political arm of the Seattle Restaurant Alliance and Seattle Hotel Association, celebrated the success of endorsed mayoral candidate Jenny Durkan in the August primary election. Durkan was the top vote earner and heads straight to the general election on Nov. 7.

With many candidates to choose from in the mayoral race, Durkan was endorsed because of her focus on identifying positive, productive outcomes for the community as a whole, said Linda Morton, co-chair of Seattle Hospitality for Progress, Seattle Restaurant Alliance board member and co-owner of Terra Plata.

“Seattle works best when we come together,” Morton said.

“We are confident Jenny Durkan will use the Mayor’s Office to effectively collaborate with all stakeholders and identify solutions that work for everyone. She rose to the top because of her investment in the vitality of our local economy and the community.”

The next three top vote getters in the primary were also women, ensuring that Seattle will have its first female mayor in 91 years. Urban planner Cary Moon ran neck and neck for the second position on the November ballot with lawyer and educator Nikkita Oliver. Moon ultimately prevailed with 17.62 percent of the vote to Oliver’s 16.99 percent, a separation of just 1,170 ballots.

Sara Nelson, the candidate Seattle Hospitality for Progress endorsed for city council position 8, came in a close third and conceded the race on Aug. 3.

Seattle Hospitality for Progress also endorsed Scott Lindsay for Seattle city attorney. Because the race had two contenders, he automatically advances to the November general election.

— Jillian Henze Seattle’s Final Primary Election Results Mayor: Jenny Durkan: 51,279 votes (27.9 percent); Cary Moon: 32,536 votes (17.62 percent) City Council Position 8: Teresa Mosqueda: 53,676 votes (31.59 percent); Jon Grant: 45,652 votes (26.87 percent); Sara Nelson: 36,495 votes (21.48 percent) City Council Position 9: Lorena Gonzalez: 108,602 votes (64.17 percent); Pat Murakami: 33,349 votes (19.71 percent)

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Strong results in Tacoma In advance of the August primaries, The Tacoma restaurant members of the Washington Hospitality Association endorsed Victoria Woodards for mayor, Robert Thoms for City Council Position 2, Kevin Grossman for City Council Position 4, Brian Arnold for City Council Position 5 and Meredith Neal for City Council Position 6. These contenders were identified as candidates who would best represent the hospitality industry.

Woodards’ mayoral campaign drew the attention of Tacoma-based members of the Association for the business acumen she gained while working as a CEO for a nonprofit and for her previous experience on the council, said Monique Trudnowski, co-owner of the Adriatic Grill.

“Local restaurants and hotels need the support of city council to continue to provide jobs at all levels of the career ladder,” Trudnowski said. “These candidates have demonstrated that they are business-oriented and will support the issues that are most important to us.”

All four of the candidates endorsed in Tacoma made it through the Aug. 1 primary election in second place and will be on the November ballot.

Spokane The Spokane Chapter of the Washington Hospitality Association endorsed Matthew Howes for Spokane City Council District 3.

Howes’ restaurant, Adelo’s Pizza, Pasta & Pints, has long been a part of the Spokane community landscape. The Spokane Chapter co-chairs said Howes is familiar with the issues local business owners face and they are confident he will be an advocate for issues that matter to hospitality business owners in the Spokane area.

Howes is invested in Spokane, said Sonja Halverson, chapter co-chair and regional manager of The Onion.

“His experience as a business owner gives him insight to what makes a Spokane business thrive,” Halverson said.

“He will be a great advocate for our industry and other businesses and he is more than qualified to represent District 3.”

On Aug. 1, Howes earned enough votes to move forward to the general election, where he’ll compete with Candace Mumm for a seat on the council.

— Morgan Huether

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From Government Affairs Chairs Dear Members, Our industry has faced significant challenges over the last decade, but with your engagement and the hard work of our Association, particularly our government affairs team, we have overcome difficult odds in Olympia to deliver important wins for our industry.

The focus of every legislative session since the Great Recession has been on raising taxes to cover budget shortfalls or, as it has for the past five years, on meeting the State Supreme Court’s McCleary decision mandating that the state spend an additional $6 billion on basic education.

On many fronts, we’ve been in a defensive position during legislative sessions, protecting our members from tax increases that would hurt hospitality businesses, hospitality employees and ultimately, Washington’s economy.

As you’ll see in the legislative timeline on pages 12 and 13, we’ve defeated tax proposal after tax proposal and achieved legislative successes that have led to a more hospitable business environment.

In the 2017 legislative session, the stakes were again high. This was the last year to find a way to fully fund education by 2018, the deadline imposed by the Supreme Court. Fortunately, with the Majority Coalition Caucus in control of the Senate, we had a balanced Legislature in place and this equilibrium ensured better outcomes for the citizens of Washington and our industry.

Our GA team, with the help of members, was able to once again stop taxes on our industry, defeating a 20 percent B&O tax increase, a new capital gains tax and a sweetened beverage syrup tax. These successes will save members thousands of dollars.

Reaching a compromise on how to fund education was not easy, and when the third special session ended on July 20 with a signed budget that did just that, lawmakers had logged 195 days in session, more than any other session in Washington history.

This year, the Association also played a pivotal role in addressing the push for paid family leave in the Legislature and not through the ballot box. Early polling showed us that if a paid family leave initiative were presented to voters, it was certain to pass. Solutions-oriented Washington Hospitality then developed partnerships and built coalitions to help launch negotiations to achieve a balanced law that takes the needs of all stakeholders into account. (Be sure to read Anthony Anton’s column on page 6 to learn about our proactive approach.)

After months of negotiations, a bipartisan solution was found that supports employees and their families while protecting small businesses through an exemption, giving small- and medium-sized business financial assistance and large businesses flexibility. It also provides relief from UI charges, contains no new health coverage or job retention requirements that deviate from FMLA, and prevents local governments from enacting their own programs. When it came down to the wire, our members helped ensure the passage of this landmark legislation.

Your engagement is what makes our Association effective, and your advocacy and participation are going to be critical to our industry’s success as we face new challenges at both the state and local level.

There are now more ways for you to get involved. You can be an ambassador, a media representative, a member of our Government Affairs Committee and much more. Our new grassroots coordinator, Katie Doyle, is ready to help you get engaged in a way that works for you. Email her at KatieD@wahospitality.org to get started. We also have a powerful new tool: a text messaging system that can send action alerts and keep you informed of urgent needs and urgent news. Please sign up right now to receive text alerts by texting “SERVE” to 52886.

Please also remember that you have a highly-experienced GA team that truly desires your input and participation.

It is well equipped to represent you and our industry in the coming year, but your advocacy will make the team even more successful.

Thank you for supporting Washington Hospitality and the success of our industry.

Chad McKay, El Gaucho Hospitality

Tim Bathke, Warwick Seattle Hotel September 2017 │ 11

A Decade Of Protecting Your Interests

C HALLENGE S

Against enormous pressure to increase or add new taxes, Washington Hospitality, and the restaurant and lodging associations before it, have protected the hospitality industry at the state level from job-stifling taxation and anti-business regulations. We’ve also helped secure significant reform of Washington’s unemployment and workers’ comp insurance programs, saving the industry millions of dollars in unnecessary costs.

2007

2009

2009

Great Recession begins in December.

Great Recession hits Washington state.

Liquor Control Board ignores legislative directive on markup on liquor and hits restaurants with 10.5% liquor license fee increase costing industry $80 million.

2008 Legislative Session: Drop in state revenue indicates an economic downturn. Supplemental budget continues to grow state spending. Gov. Chris Gregoire calls for slowing down budget growth.

‘07

‘08

‘09

2010 Statewide unemployment peaks at 9.3%.

‘10

‘11

WI NS

2011 2009

2010

Legislative Session: Legislators must address $9 billion budget shortfall. We • Defeat repeal of the state discount on liquor for licensees, saving members $72 million.* • Defeat B&O tax increase on clubs and organizations.

• Defeat street utility tax.

• Defeat local options tax on members in King County.

• Defeat increase in markup on liquor, $80 million.

• Defeat attempt to handicap retro program.

• Defeat attempt to bar state agencies from holding meetings in lodging establishments.

• Pass unemployment insurance reform, modeled off members’ rates. Saved $377 million for biz community.

Governor vetoes repeal of liquor markup.

12 │ wahospitality.org

2010

In legislative session, lawmakers • Repeal two-thirds majority requirement for tax increases • Levy new temporary tax on beer.

• Pass temp B&O tax increase.

• Introduce eight bills to privatize alcohol sales.

• We defeat street utility tax and pop syrup tax and get liquor markup on restaurants repealed.

Legislative Session: State faces $5 billion shortfall.

• Unemployment insurance relief passes, reducing most members’ rates by 50%.

• Spirits, beer, and wine licensees can sell growlers to go.

• Rollback of temporary increase in license fees passes, and we defeat attempts to make fees permanent.

• Industry wins tax exemption for free employee meals.

• State passes bill to “auction” liquor distribution to the highest bidder, costing industry hundreds of millions in increased costs.

• Major workers’ compensation reform passes, putting an end to double digit rate increases.

2011 Voters approve Initiative 1183, privatizing liquor sales. Bill to auction off the distribution center is voided.

2011

2013

2016

SeaTac voters approve $15 minimum wage initiative.

State closes its tourism office.

2012

2014

I-1433 passes. Washington’s minimum wage will rise to $13.50/hour by 2020 and employers must provide paid sick and safe leave.

State Supreme Court’s McCleary Decision finds the state is not meeting its constitutional requirement to fund basic education. Requires the state to devote substantial new resources to education by 2018.

Supreme Court holds Legislature in contempt for not funding basic education.

Seattle voters approve Initiative 124, imposing new employment regulations on hotel employers.

‘12

Seattle City Council unanimously approves $15/hour minimum wage ordinance.

‘13

‘14

‘15

‘16

2011

2013

2015

Attorney general issues determination that Department of Health does not have authority to inspect rented hotel guestrooms.

In legislative session, Gov. Inslee calls for $1.3 billion in new taxes. We • Rollback temporary beer tax.

• Defeat pop syrup tax.

• Defeat B&O tax increase.

• Pass tax fairness for wood, charcoal, flavor imparting ingredients.

• Pass tax relief on cover charges for providing “opportunity to dance.”

In legislative session, $1.5 billion in new taxes is proposed. We • Defeat new capital gains tax.

• Defeat increase in B&O tax.

• Defeat street utility tax.

• Defeat attempt to repeal pop syrup tax credit.

• 6.2% liquor license fee is imposed.

• Tacoma voters approve $12/hour minimum wage initiative.

2012

2014

Gov. Jay Inslee is elected.

In legislative session, lawmakers propose $1.3 billion in new taxes. We • Defeat “pay or play” legislation that punishes businesses that hire employees on public assistance.

• Pass tourism study bill.

• Create catering license.

• Protect a hotel’s ability to contractually limit liability for lost valuables.

Legislative session: State faces $1.5 billion shortfall.

• Two Senate Democrats join Senate Republicans to form Majority Coalition Caucus, taking control of the Senate.

• We defeat attempt to impose 0.5% sales tax on restaurant and bar sales.

2016 In longest legislative session to date, lawmakers struggle to meet McCleary Decision. We • Defeat street utility tax.

• Defeat attempts to repeal pop syrup tax credit.

September 2017 │ 13

2017 LEGISLATIVE SESSION IN REVIEW

Over the past decade, the Washington State Legislature has had to work through the Great Recession, which caused state revenue to fall and spending to jump. It has also had to respond to a landmark court decision directing massive new expenditures.

2017 was the last year for the Legislature to meet the State Supreme Court’s 2018 deadline for significantly increasing spending on basic education to comply with the Court’s McCleary Decision. Fortunately, the slow climb to economic recovery meant that 2017 started off with anticipated state revenues $3 billion above the previous biennium – with roughly 11 percent more resources available to direct towards K-12 education.

Despite this increase in resources, the governor and House Democrats started off the 2017 legislative session with a proposal to increase taxes to raise an additional $8 billion over 4 years, the most drastic tax proposal in state history.

While the Legislature’s primary duty was to solve the state’s financial challenges, Washington Hospitality had several priorities for the session. We successfully protected our members from drastic new tax increases and passed proactive legislation. Some successes were thwarted by Governor Inslee – through veto and other methods – but many other wins will bring relief and assistance to Washington’s hospitality industry. Here is a review of our key priorities for the year.

PAID FAMILY AND MEDICAL LEAVE As you know, Washington’s hospitality WIN industry has been more significantly impacted by voter initiatives than any other industry in the state. We’ve been hard hit by minimum wage initiatives both at the state and local level, some directly targeting hospitality businesses and several that have included paid sick and safe leave requirements and other employment standards. Most recently, Seattle voters approved a hotel-specific ordinance that included a health insurance mandate and regulations on the workload of housekeepers. All of these initiatives have unintended consequences for businesses and employees.

In 2016, Washington Hospitality learned that paid family leave was going to be the next target for labor unions and their partners. We invested early in polling and the results 14 │ wahospitality.org

predicted with great certainty that, absent action by the state Legislature, an initiative to establish a statewide paid family leave policy would go before voters, and pass, by 2019 at the latest.

Our Association then worked with Microsoft, the Association of Washington Businesses, Washington Food Industry Association and the Independent Business Association of Washington to gather further data on where the public stood on various aspects of paid family leave. From there, we built a coalition and developed core principles that articulated what businesses would need for a paid family and medical leave program to work for them.

In the spring, negotiations got underway in Olympia to find a paid leave solution that would meet the needs of all stakeholders. Julia Gorton, our director of state government affairs, represented our industry in those negotiations and worked with Sen. Joe Fain, R-Auburn, House Republican lawmakers, Democratic lawmakers and labor representatives to see if a reasonable solution was possible.

As the second special session was coming to a close, they reached a compromise on a bill that everyone could support. The legislation that passed on June 30 is the strongest policy on paid family and medical leave in the nation for both employees and employers. (Read more about the process of finding a solution on page 6).

WHY WASHINGTON’S PAID FAMILY AND MEDICAL LEAVE PROGRAM IS GOOD FOR HOSPITALITY Small Business Exemption: Businesses with fewer than 50 employees (which represent 96 percent of all businesses in the state) are exempt from premiums. No matter the business size, employees will pay into the system and are eligible to receive benefits. Ours is the first state law to protect small businesses.

Small- and Medium-sized Business Assistance: Businesses with fewer than 150 employees are able to receive financial assistance when needing to hire a temporary employee to cover duties while an employee is out on leave, or when training and overtime costs are incurred. No other state provides any assistance to small and medium sized businesses.

Business Flexibility: Businesses that have superior leave programs can opt out of the state program. Businesses will be able to decide what is best for them and their employees. Businesses that already offer paid leave but choose to join the state program could see a cost reduction from enjoying the benefits of a statewide insurance pool.

Relief from UI Charges: Businesses who hire a temporary worker to cover the duties of an employee on leave will not be charged for the layoff experience when the employee returns.

No New Requirements: Unlike some states that have adopted paid family leave programs, there will not be any new job retention or health coverage requirements of employers, beyond the federal requirements under FMLA. The Program is not an Overreach: The length of time employees can be on leave is consistent with FMLA, and provides additional time for very narrow circumstances.

Statewide Preemption: The legislation rules out locally enacted paid family leave laws. This is a critical element of the new program, and we believe will set the parameters for other statewide discussions around new labor policy.

CREDIT CARD PURCHASES FOR ALCOHOL The hospitality industry has been battling WIN liquor distributors since 2012 to bring free market principles, competition and choice to the marketplace for spirits. This year, we put down the boxing gloves and worked together with other stakeholders on a solution to bring additional payment options to restaurant licensees.

While we still do not see eye-to-eye on credit terms, and probably never will, we believed a step in the direction would be for distributors to accept credit cards as a form of payment. The Liquor Control Board has ruled that it would be a “tied house” violation if distributors recoup the cost of credit card processing in the cost of the product. SB 5665 allows distributors to add the credit card processing cost— and only the credit card processing cost—to the invoice, which must be disclosed as a separate line item. Licensees may decide if they prefer the added convenience or want to continue to pay with cash, check or EFT. SKILLED WORKER TRAINING Workforce development is a priority for our WIN industry and the Association, and this year we partnered with Gov. Jay Inslee on job creation in the form of SB 5713. This bill creates a skilled worker outreach, recruitment and key training program, and our GA team worked hard to keep it moving forward in a year when funding for new programs was very limited.

The successful legislation, which was signed by the governor in early May, leverages public and private dollars to provide Washingtonians with education programs to help them obtain quality, skilled positions in several industries. This program will target individuals who do not have a postsecondary degree and is designed to help them move from minimum wage jobs into careers. The hospitality industry already provides career opportunities at every level. SB 5713 is yet another opportunity to lift people up and provide a new generation a chance at the American Dream.

September 2017 │ 15

TEEN WAGE Increases in the minimum wage mandated

by I-1433 will likely make it more difficult VETOED for employers to take on the risk of hiring first-time workers or part-time student employees. Recent data in Seattle, and elsewhere, underscore how difficult it is for youth to find that first job where they will gain the important skills and training that come with entering the workforce for the first time. Accordingly, the Washington Hospitality Association again urged legislators to enact a teen or training wage.

Two attempts to enact legislation to establish a teen wage failed because of strong opposition in the House.

Washington Hospitality took a different approach. I-1433 authorizes the Department of Labor and Industries to establish, by rule, the minimum wage for workers under 18 years of age. In the past, L&I has opted to not engage in rule-making, establishing by default the same minimum wage for adults and youth. (There are exceptions to this for youth under 16, and for some specified classes of workers).

In the Senate, Washington Hospitality worked with Senate Ways and Means Committee Chair John Braun, R-Centralia, and Sen. Michael Baumgartner, R-Spokane, on a budget proviso directing L&I to initiate rule-making as directed by the Minimum Wage Law. The proviso was included in the Senate budget passed during the regular session. It was not

16  │  wahospitality.org

included in the House budget proposal.

During the special sessions, however, the Washington Hospitality Association worked with House and Senate budget leaders on the proviso, and we were pleased that it received bipartisan support and was included in the final negotiated budget in the third special session.

Unfortunately, despite the bipartisan agreement on the proviso, Gov. Inslee vetoed the proviso when he signed the operating budget into law on June 30.

PREGNANCY ACCOMMODATION The Legislature passed and the Governor signed SB 5835, legislation to require employers to provide reasonable accommodations for pregnant workers. The final version was built upon several years of negotiation and was a compromise between business and labor organizations.

In accordance with the new law, which went into effect on July 23, employers should consider what provisions they have for pregnant workers and provide the following accommodations for a pregnant employee: 1. Provide longer, more frequent or flexible restroom breaks.

2. Modify any no-food or no-drink policy.

3. Provide seating or allowing the employee to sit more frequently; and

4. Limit lifting to 17 pounds or less.

In addition, a pregnant employee may have rights to other workplace accommodation(s), as long as there is no significant difficulty or expense to the employer. These are: 5. Job restructuring, including modifying a work schedule, job reassignment, changing a work station or providing equipment; 6. Providing a temporary transfer to a less strenuous or hazardous position; 7. Scheduling flexibility for prenatal visits; 8. Providing any further accommodations the employee may need.

Employers can petition for "undue hardship" if unable to accommodate the worker and L&I will provide guidance to the employer.

I-1433 RULE-MAKING Initiative 1433, the statewide minimum wage measure passed by Washington voters in November 2016, contained two major elements: 1. It increases the minimum wage to $13.50 over a four-year period, and 2. It requires employers to provide paid sick and safe leave at a minimum rate of one hour of paid sick leave for every 40 hours worked as an employee. Employees must use this sick leave before being eligible for benefits under the new paid family and medical leave program. Other aspects of I-1433’s sick leave requirements include: • • •

•

An employee is entitled to use accrued paid sick leave beginning on the 90th calendar day after the start of employment.

Unused paid sick leave of 40 hours or less must be carried over to the following year.

Employees may use paid sick leave to care for themselves or a family member.

An employee may use paid sick leave for absences that qualify for leave under the state’s Domestic Violence Leave Act.

Washington Hospitality has been participating in the stakeholder process and has provided detailed comments, identifying issues and solutions to resolve those issues. We have also responded to issues raised by other stakeholders and submitted comments on the first and second drafts of the administrative rules. L&I held public hearings in August and plans to finalize the administrative rules midSeptember. It will then focus on employer education and outreach until the end of the year.

Unfortunately, L&I opted to initiate separate rule-making on the enforcement of I-1433, instead of including all of the requirements in one rule package. Draft enforcement rules will be published for public review and comment in early October.

TOURISM With so many demands on the state DID NOT general fund, as well as the need to fund PASS the McCleary decision, it was a tough year for our statewide tourism efforts. Your government affairs team worked closely with the Washington Tourism Alliance (WTA) and members of the Legislature to introduce Senate Bill 5251 and House Bill 1123, which proposed a new public-private funding mechanism for statewide tourism marketing managed by the private sector with government oversight. Despite your team’s best efforts, the bills ultimately failed to make it to the Senate or House floor for a vote.

Nevertheless, there is some good news on tourism. The final budget includes a $500,000 general fund appropriation in 2018 to formulate a statewide tourism marketing plan, a small, but important win for our industry.

Our toolbox to date did not include a concrete marketing

The paid sick leave element of 1433 goes into effect on Jan. 1, 2018. The Department of Labor and Industries is in the rule-making process on the administration and enforcement of the paid sick leave requirement.

September 2017 │ 17

plan, and we hope having one will garner buy-in from legislators next session to help pass Substitute Senate Bill 5251. The operating budget also instructed the Department of Commerce to invest a total of $700,000 in 2018 and 2019 in key sectors, which include tourism, clean technology, and agriculture and natural resources.

various budget proposals offered as part of this debate: •

• The lack of a dedicated funding source for statewide tourism promotion continues to be a problem for our industry and state. However, the appropriations included in the operating budget are important and will keep the conversation alive.

Alongside industry partners, your Washington Hospitality team will continue to keep statewide tourism top-of-mind for legislators and, without McCleary looming over the legislature, we are hopeful that a long-term, sustainable funding mechanism for statewide tourism promotion will be passed in the 2018 legislative session.

TAXES AND THE BIENNIAL BUDGET Job No. One for lawmakers this year was the adoption of a 2017 – 19 operating budget. The good news going into this important process was the fact that the $38 billion 2015-17 general fund budget was basically balanced, and it appeared the State would be running a surplus of nearly $3 billion going into the 2017-19 biennium.

The adoption of next biennium’s budget proved to be no easy task, as lawmakers faced some serious funding challenges.

The Supreme Court’s McCleary Decision around education funding required both additional funding as well as a restructuring of how property tax is levied at the state level.

There were also major budget pressures coming from issues around water rights, health care, housing and mental health funding.

The shared balance of power in Olympia also complicated the adoption of budget and education reform bills. Here are the

•

•

Gov. Inslee proposed a $46.4 billion spending plan ($8.2 billion higher than the 2015-17 biennium) that relied on $4.4 billion in new taxes in 2017-19 and $8 billion in new taxes in 2019-21.

The Senate–controlled by the Majority Coalition Caucus/ Republicans by a 25 to 24 margin--proposed a $43.3 billion budget ($5 billion higher than 2015-17) which relied on a property tax swap that generated roughly $1.5 billion and further contemplated revisions to how Internet sales taxes are collected from out-of-state “remote” sellers.

House Democrats, who control the House by a 50 to 48 margin, proposed a $44.9 billion budget ($6.7 billion over 2015-17) that regrettably relied on $3 billion in new taxes in 2017-19 and $4.8 billion in 2019-21.

The House Democrats proposed an Omnibus Tax Bill (HB 2186), a $3 billion tax package to support their 2017–19 general fund budget proposal which sought to establish a number of new tax measures. (Note that the tax package was expected to grow to $4.8 billion in the 2019-21 biennium.)

Even though Democrats pushed these taxes until the final hours of negotiations, the final general fund budget agreement does not contain increases in the B&O tax or the capital gains tax. The final 2017-19 General Fund Budget agreement does call for $43.7 billion in spending, a 15 percent growth in state expenditures. The final tax agreement was accomplished through changes in property taxes, inclusion of internet sales by remote sellers located out of state for sales tax purposes, repeal of the tax sales exemptions for bottled water, repeal of the use tax exemption for self-produced fuel, and applying B&O tax requirements to out-of-state retailers who do business in Washington without a physical presence in the state.

State Primaries Special elections will take place for the state on Nov. 7. Five seats need to be filled in the Senate and three in the House of Representatives. These elections are taking place in Legislative Districts 7, 31, 37, 45, and 48. The Senate races are extremely important because the majority control of the Senate is at stake. If Democrats pick-up a seat in the Senate, they will have control over both chambers and the Governor’s office.

The most competitive, high-profile race will take place in District 45 between Republican candidate Jinyoung Lee Englund and Democratic candidate Manka Dhingra. This district has a history of closely-contested races. The Washington Hospitality Association has endorsed Jinyoung Lee Englund, who previously worked as an aide for U.S. Rep. Cathy McMorris Rodgers before becoming an entrepreneur. Jinyoung graduated from the University of Washington, is the daughter of immigrants and a military spouse.

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Quick Facts About Washington’s Paid Family and Medical Leave Program 1

What types of leave are covered?

Family Leave: To care for a family member with a serious health condition; bond with a child after birth, adoption, or foster placement; and a foreign military exigency. Family member is defined as a child, parent, parent-in-law, sibling, spouse, grandchild or grandparent.

Medical Leave: For an employee’s own serious health condition, including pregnancy-related disability.

The program applies the same medical condition and military exigency requirements as stated in the federal Family and Medical Leave Act. 2

Who pays, and how much?

Family Leave: Premiums are paid 100 percent by employees.

Medical Leave: Premiums are split, 55 percent employer and 45 percent employee.

Total Premium Cost: 37 percent employer, 63 percent employee.

Premiums are estimated to be between 0.4 percent and 0.6 percent of wages, which will cost approximately $1,500/year for every $1 million in payroll.

Employers with fewer than 50 employees are not required to pay the employer premiums, but employees will pay in and receive benefits.

Businesses with superior paid leave benefits can get waiver out of the program.

Premiums will be collected starting Jan. 1, 2019.

3

How many weeks will the benefit provide each year?

Family Leave: Up to 12 weeks.

Medical Leave: Up to 12 weeks, or up to 14 weeks for own pregnancy-related complications.

Total Annual Cap: Up to 16 weeks, or up to 18 weeks for own pregnancy-related complications.

Benefits will be available beginning Jan. 1, 2020. To qualify, an employee must have 820 hours of work in Washington state in four of the last five quarters.

4

What business assistance requirements are built in?

Employers with up to 150 employees are eligible to receive a $3,000 training grant for hiring a temporary worker or $1,000 grant for additional wage costs (e.g. overtime) when an employee is out on leave. To be eligible for business assistance grants, small businesses must opt-in and pay the employer premium.

No unemployment insurance charge for an employer who hires a temporary employee to cover for an employee on leave, and then lays off the temporary employee when the regular employee returns.

For more details on the new Paid Family and Medical Leave program, go to wahospitality.org/paid-familyand-medical-leave-washington-state.

September 2017 │ 19

Heroes To Our Industry At the end of each legislative session, we recognize lawmakers who are true champions of our industry’s priorities. These legislators work hard to understand the unique challenges facing our industry, educate their caucuses and advocate on topics important to hospitality.

We applaud and thank each of our heroes for their tireless work on our behalf.

Senator Joe Fain This year, Sen. Joe Fain, R-Auburn, was the biggest champion for our industry on paid family and medical leave. He was the prime sponsor of legislation that achieved a middle ground between two competing paid leave bills. Without his dedication and keen insight during the negotiation process, we would not have a paid leave program that benefits both businesses and employees. This is not the first-time Sen. Fain has been a hero for our industry, and it likely will not be the last, as he continues to prove himself an ally of the hospitality industry and a leader in non-partisan negotiations. His leadership in the Senate has shaped policy discussions for the benefit of the entire state.

Senator Karen Keiser Sen. Karen Keiser, D-Kent, has been a tireless advocate for paid family and medical leave. This year, she co-sponsored with Sen. Fain the compromise legislation that gives our state the best paid family and medical leave law in the nation. Sen Keiser is a hero for finding ways to ensure that both businesses and employees are well served by this important program. Her willingness to find solutions during negotiations helped lay the foundation for creating this significant new law. We are grateful to Sen. Keiser for bravely championing the needs of working families and giving businesses the ability to participate and succeed.

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Representative Brandon Vick This year Rep. Brandon Vick, R-Felida, was a true hero to our industry. As the manager of his family’s small business, he understands all it takes to run a business in Washington state, and he is a strong advocate for the hospitality industry on issues ranging from workforce development to liquor regulations. Rep. Vick is the ranking minority member on the House Business & Financial Services Committee, and this year he sponsored successful legislation that allows our members and other licensed purchasers to buy spirits and wine with credit cards. This is a great new law that will making it easier to run a restaurant. Rep. Vick has our admiration and gratitude for his hard work in ensuring small businesses and our industry are heard.

Representative Larry Springer We are honored to call Rep. Larry Springer, D-Kirkland, a legislative hero for the fifth time. He is the deputy majority leader for Jobs & Economic Development in the House of Representatives. As a former restaurateur who now owns a wine shop, Rep. Springer knows what it takes to run a business and he identifies with our members’ challenges and successes. He has acted as a moderate voice across party lines and has helped find consensus on countless divisive issues. He continues to be a strong advocate for us year after year on subjects ranging from liquor regulation and tourism funding to workforce development and tax issues.

Rep. Springer is a champion across party lines for issues that impact both citizens and businesses. We have advanced many issues thanks to his dedication and leadership.

We’d also like to give special recognition to these legislators.

Senator Mark Mullet For the fourth year in a row we honor Sen. Mark Mullet, D-Issaquah, for all he has done for our industry. As a restaurateur himself, Sen. Mullet knows first-hand all of the issues our members face and takes that insight with him to the Capitol.

Sen. Mullet supports commonsense workforce solutions, champions industry needs regarding liquor regulations and brings invaluable insight to the legislative process. Sen. Mullet was a key player in the passage of this year’s important budget compromise.

Representative Matt Manweller Rep. Matt Manweller, R-Ellensburg, has been a continual advocate on behalf of our industry and businesses around the state on issues ranging from minimum wage to paid family and medical leave. Rep. Manweller is the ranking minority member on the House Labor & Workplace Standards Committee. He focuses on creating a smaller and more efficient government and this saves our industry from overregulation and expensive mandates.

Representative Gina McCabe As a hotelier and small business owner, Rep. Gina McCabe, R-Goldendale, knows first-hand how government regulations can get out-of-control and directly affect an employer’s ability to create and maintain jobs. In her role as the assistant ranking minority member of the House Labor & Workplace Standards Committee, she has been a vital contributor to finding solutions and leading negotiations on behalf of the hospitality industry.

September 2017 │ 21

Spotlight on Our Ambassadors Washington Hospitality’s Government Affairs Team meets year-round with lawmakers to keep our industry’s issues top of mind when legislative and policy decisions are being made in Olympia. Members can make an even greater impact, because the most effective outreach is when a legislator hears from a constituent who operates a business in his or her district.

That’s why the Association has an ambassador program. Member ambassadors strengthen our ability to fight for our industry—for helpful laws and against harmful legislation—and to effectively advocate for policy decisions that will benefit restaurants, hotels and other hospitality businesses as well as our combined workforce and the communities we serve.

This past session we had more participation from our ambassadors than ever before. Each and everyone helped strengthen our advocacy efforts, but we wanted to celebrate several who went above and beyond.

Best Attendance John Bagge – Twelve Baskets Catering, Bellevue John didn’t miss a single GAC call or meeting this year, showing some serious dedication!

Best On-the-Spot Kerri Lonergan-Drake – Lombardi’s Italian Restaurants, Everett On July 4, Kerri received a call from the Association asking her to speak on behalf of paid family leave. Without hesitation, Kerri agreed and delivered a stellar speech at the PFL bill signing!

Distance Caller Reggie Frederick – Chalet Bowl & 26th Street Café, Tacoma As Reggie trotted the globe this year, he stayed connected to what was happening in government affairs. Whether he was in Brazil, Nashville or Tacoma, he never missed a beat.

Rookie of the Year Julie McAferty – Greenlake Guest House, Seattle As president of the Washington Bed & Breakfast Guild and a new member of the Government Affairs Committee, Julie was called upon many times this session to shed a light on the smallest of businesses in our industry.

Community Leader Russell Brent – Mill Creek Pub, Battle Ground In his usual fashion, Russell stood out in his community again this year and was one of three recipients of the Washington Restaurant Neighbor Award.

Tech-Savvy Advocate Jody Sander – Sterling Hospitality Management, Spokane Our new Phone2Action platform was rolled out this year, and Jody made amazing use of it! With one click she was able to email more than 10 legislators as well as post links on Facebook and Twitter!

If you know your legislators, or would like to get to know them, you can make a real difference for your business and your community as one of our ambassadors. To learn more, please reach out to your area coordinator or to Katie Doyle at katied@wahospitality.org.

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Delivering A Greater Customer Experience

PRODUCE ~ CENTER OF THE PLATE ~ GROCERY & FROZEN FOOD ~ SEAFOOD BUSINESS SOLUTIONS ~ BEVERAGE ~ DISPOSABLES ~ SUPPLY & EQUIPMENT seattle.fsafood.com

September 2017 │ 23

Important Ways to Support Our Industry’s Advocacy Efforts

24 │ wahospitality.org

1

Text It In Sign up for our new text messaging system to get action alerts. Simply text “SERVE” to 52886 and when you get a text next legislative session it’ll be just as easy to contact your legislators.

2

Open those Newsletters You’ll find lots of important information in and out of session in our Weekly, Tools for the Trade, Lodging and other newsletters. Click them open when they hit your mailbox and give them a quick scan to stay current on industry news, information and opportunities.

3

Subscribe to our Legislative Newsletter During the legislative session, we provide members with weekly updates on what’s happening at the State Capitol.

This one requires you to opt in. Email stephaniem@ wahospitality.org to get on the 2018 recipient list.

4

Participate in a Government Affairs Meeting Each fall our GA team holds meetings around the state to discuss key issues impacting hospitality businesses. At these meetings, the team recommends priorities and goals for the upcoming session and members give input, which is then used in finalizing the legislative plan for the year.

Participating is a great way to be a part of the Association’s advocacy efforts. Look for dates and locations in the Weekly.

5

Join Us for Hill Climb 2018!

On Jan. 29, 2018 we’ll host members from across the state at the Capitol and connect them with their legislators.

These one-on-one meetings between lawmakers and hospitality business owners and operators from their districts strengthen our ability to protect your interests. Put Hill Climb on next year’s calendar and include our Taste Our Best Reception that evening, a fun and effective way to build relationships with policymakers.

6

Attend a Hospitality Summit Building on this year’s success, Washington Hospitality will host summits around the state in 2018. Be sure to join the Association and your industry peers at these fun, informative events. Look for the schedule in January 2018.

7

Come to the Lodging Convention The annual Lodging Convention has a long tradition in Washington state, and for good reason. Owners, operators and managers gather each year to connect, learn and shop the state’s best lodging trade show. At this year’s Convention, Oct. 22-24 at Tulalip Resort, you’ll get a government affairs update and plenty more. lodgingconvention.com

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 September 2017 │ 25

Meet Your Government Affairs Team Julia Gorton, Director of State Government Affairs, has been with the Association for more than a decade.

Her most recent accomplishment has been leading the effort on the state’s paid family and medical leave act. She has also lead the charge on a range of critical issues, including protecting our RETRO program and defending members’ interests on liquor privatization and pricing. Julia’s first legislative experience with the Association was working on a tax fairness bill to allow restaurants to provide a free meal to employees without having to pay sales tax on the assessed value of the food. There was only one dissenting vote. juliag@wahospitality.org John Lane, Director of Local Government Affairs, has a law degree from Seattle University and extensive public policy experience, including serving as a Washington state assistant attorney general and as the Office of Financial Management’s legislative and legal counsel. John has also served as a senior policy advisor to Gov. Jay Inslee on public safety and government operations and as the executive policy advisor to Gov. Christine Gregoire. At Washington Hospitality, he is responsible for government affairs at the local level and has advocated on behalf of members on a wide range of issues, including secure scheduling and the Seattle hotel initiative.

John also oversees GA team members based in Spokane, Tacoma and Seattle. johnl@wahospitality.org Anna Boone, Local Government Affairs Senior Manager, is the newest member of our team and comes to the Association with over a decade of experience in Washington politics.

Most recently, she was at Gallatin Public Affairs, where she helped establish the firm’s local government affairs practice in Washington state and represented clients on regulatory and labor issues in front of local governments. Anna also has a political campaign background that includes running Congressman Norm Dicks’ 2010 reelection campaign. aboone@wahospitality.org Morgan Hickel transitioned from our Seattle local government coordinator position to serving as a State Government Affairs Manager in January. In her state GA role, she has taken lead on statewide tourism promotion and many of our lodgingrelated issues. She also sits on the 26 │ wahospitality.org

Washington State Task Force Against the Trafficking of Persons. On the local team, she worked closely with our restaurant and hotel members on issues ranging from Seattle’s $15 minimum wage and restrictive scheduling ordinances, the hotel initiative, and paid family leave. Her past experience includes working in the American Frozen Food Institute’s communications and government affairs department.

Samantha Louderback, State Government Affairs Manager, joined our GA team in 2015 to help expand the Association’s work on the local level. This past summer she moved over to our state GA team. She has engaged both members and elected officials on a range of issues including minimum wage and paid sick leave (Tacoma), plastic bag bans (Tacoma and Ellensburg) and health department licensing fees (Tacoma). She has also monitored issues and worked with members in Bellingham and Spokane. She came to the Association from the contract lobbying firm Alliances Northwest. samanthal@wahospitality.org Zachary Lindahl, Local Government Affairs Coordinator, joined our staff in late 2015 to work closely with members in the Spokane area. He has worked on issues such as paid sick leave, human trafficking and tourism promotion. Zach has interned for Congresswoman Jaime Herrera Beutler and for a contract lobbyist, and he enjoys getting to know members and learning about their business operations. zacharyl@wahospitality.org Joe Bushnell, joined the GA team in 2017 as the Local Government Affairs Coordinator in Tacoma. A Marine Corps veteran and lifelong citizen of Tacoma, Joe’s past experiences include interning with Senator Tim Sheldon in the Washington State Senate, in 2016, and managing a political campaign in Pierce County. He is a graduate of The Evergreen State College with an emphasis in political science. joeb@wahospitality.org Katie Doyle, Grassroots Manager, spent six years in the restaurant industry before starting at the Association in 2014 as the executive assistant to the CEO and COO. With a BA in political science, it was only a matter of time before Katie joined the ranks of the government affairs

team. She took on the position of grassroots manager in February 2017 and has spent the last six months vetting current ambassadors, expanding our grassroots advocacy program and strengthening the relationship between area coordinators and the GA team. katied@wahospitality.org Stephanie McManus, Communications Advocacy Manager, is responsible for state-level media relations and government affairs communications. During the legislative session, she authors the weekly Legislative Newsletter and is the communication lead for the annual Hill Climb and Taste Our Best events. She is the communications point person on state issues such as paid family leave, minimum wage, tip pooling and overtime regulations. She worked for the Washington Restaurant Association 2004 to 2005, and prior to returning to the Association in 2014 she was a public information officer in the Washington State House of Representatives. stephaniem@wahospitality.org Jillian Henze, Local Communications Manager, has supported the Local GA team in her first year with the Association. Her bailiwick is Seattle, and she has worked on secure scheduling, Initiative 124, short-term rental regulations and paid family leave. Her responsibilities include chapter communications and working with the

media. She brings investigative journalism experience and PR expertise honed working in a full-service advertising agency. jillianh@wahospitality.org Morgan Huether, Local Communications Manager, joined the Association staff at the end of 2016 and transitioned onto the communications team in June 2017.

Her responsibilities include liaising with the media and spearheading PR efforts across the state outside of Seattle with special focus on Spokane and Tacoma. She brings a background in journalism and marketing. morganhuether@wahospitality.org Zooie Arnold, assistant to the CEO and Government Affairs, joined the team May 2017 following her graduation from Washington State University. Zooie has been exposed to the industry through her degree in hospitality business management and through her previous work in hotels and restaurants. She enjoys engaging with members to identify where the Association can foster relationships to build synergies for our industry. zooiea@wahospitality.org Your team also includes highly experienced contract lobbyists Bruce Beckett, Denny Eliason & Kim Clauson

HEALTHCARE

SOLUTIONS

We are confident that we have competitive rates to show you.

HEALTHCARE SOLUTIONS WA Hospitality Benefits Specialist Lesley Webb-Henry 877.246.0545 wahospitality.org/wise-buy/health-care-solutions

September 2017 │ 27

NEW MEMBERS INDUSTRY CALENDAR September/October TRAINING Sept. 25

ServSafe® Manager, Kent

Oct. 3

ServSafe® Manager, Seattle

Oct. 10

ServSafe® Manager, Spokane

Oct. 17

ServSafe® Manager, Kent

Oct. 23

ServSafe® Manager, Everett

MEETINGS Sept. 12

Board Development Conference Call

Sept. 14

Seattle Hotel Association Board

Sept. 19

Spokane Hotel/Motel Association Meeting

Sept. 19

Finance Committee Meeting

Sept. 19

Spokane Chapter Board Meeting

Sept. 27

GA Regional Meeting, Walla Walla

Sept. 28

GA Regional Meeting, Spokane

Oct. 2

GA Regional Meeting, Wenatchee

Oct. 3

Executive Committee Monthly Meeting

Oct. 4

Seattle Chapter Monthly Meeting

Oct. 4

MSC Sub-Committee Meeting

Oct. 5

GA Regional Meeting, Tacoma

Oct. 10

GA Regional Meeting,Port Ludlow

Oct. 11

GA Regional Meeting, Seattle

Oct. 12

GA Regional Meeting, Vancouver

Oct. 12

Seattle Hotel Association Board

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

UPCOMING EVENTS Sept. 19

Golf FORE Education

Oct. 22

Washington Lodging Convention

Jan. 29

Hill Climb & Taste Our Best

28 │ wahospitality.org

Alegre Bakery and Gelato LLC, Tacoma Candlewood Suites, Lakewood Club Crow, Cashmere Comfort Inn & Suites Spokane Valley Corson Building, The, Seattle Fairbridge Inn & Suites, Dupont Geraldine’s Counter, Seattle Hy Iu Hee Hee, Gig Harbor Local Burger, Bellevue

Looking Glass Boutique & Lounge, Tacoma Mediterranean Breeze, Olympia Melvin Brewpub, Bellingham Rain Country Restaurant, McCleary River’s Edge Café, Sumner Rustic Aristocrat, The, Tacoma Sunnyland Brewery and Restaurant, Bellingham Westgate Bar & Grill, Tacoma World of Beer, Silverdale

NEW ALLIED MEMBERS Amazon Restaurants Hsiao Chi hsiaochi@amazon.com 2021 7th Ave Seattle, WA 98121 2601 206.740.8620 amazon.com/restaurants Amazon Restaurants offers restaurant delivery services to Amazon shoppers.

Campbell Nissan Commercial Vehicles Michael Kelloy 24325 Hwy 99 Edmonds, WA 98026 9138 425.608.4090 michaelk@campbellautogroup.com www.campbellnissancommercial.com We are one of a few standalone commercial vehicle facilities for Nissan in the entire country. We bring upfitted complete commercial vehicles to our clients based on their fleet needs.

Ethix Insurance Group Scott Nokleby 1944 Pacific Ave. Suite 204 Tacoma, WA 98402 3121 scott@ethixinsurance.com 253.514.6348 www.ethixinsurance.com Ethix Insurance Group specializes in employee benefits, commercial lines insurance. Ethix HR provides HR administration & payroll processing in a single delivery software solution.

Reduced HR Administration & payroll fees to members & allied members and reduced cost for ERISA documents / compliance check up consults.

Fingerprint Marketing Pia Larson 10400 NE 4th St Suite 670 Bellevue, WA 98004 5174 425.283.3943 pia@fingerprintmarketing.com www.fingerprintmarketing.com We help your food and beverage business get traffic to your website and more clients by building proven money making, mobile ready websites (cha ching) with kick ass brand experiences. We are your outsourced marketing company that works with you long term so you save on overhead, you get a nimble, on trend marketing team that provides results.

Instawork Felix Leal 1752 NW Market St #330 Seattle, WA 98107 5264 415.891.1974 felix@instawork.com www.instawork.com We quickly connect local job seekers with hiring

hospitality businesses. Instawork has a bilingual mobile app and job platform to help small businesses find, qualify, and interview candidates quickly so they can spend time managing their business. First job post free & guarantee on hire.

Larry E Palmer Insurance Agency Larry Palmer 10832 185th Ave SE Issaquah, WA 98027 8644 425.313.9605 leeann@theinsurancestore.com www.theinsurancestore.com Larry E. Palmer Insurance Agency and Larry E. Palmer have been in the insurance agency for over 30 years. We are a commercial agent that specializes in restaurants and real estate insurance. We do risk management assessments and WE DO INSURANCE RIGHT. Merriman Enterprises LLC Donald Merriman spokane@sculpturehospitality.com 2624 East Rowan Ave Spokane, WA 99217 6248 5099902201 http://www.sculpturehospitality.com I offer food and beverage (mainly liquor, beer and wine) control for restaurants and bars. Without software we are able to help the bar or restaurant recover from $500 to $2000 in lost revenue per week. First discovery audit for Beinco Prime for free Think Twice Justin Thompson 1800 Mill Creek Road Unit 27A Mill Creek, WA 98012 8068 866.657.5658 justin@think twice.us www.think twice.us The Think Twice mission is to reduce the DUI rate by helping people make more informed decisions. It is common to hear people say they, “feel” they are below 0.08% BAC, but for most of us, it is difficult to know for sure. If a single use, reliable DUI test is made widely available to the public we have given everyone an opportunity to think twice about drinking and driving. It’s just the right thing to do!

Exclusive 20% discount on services for all members Three 60 LLC Kristi Dailey 17830 91st Ave SE Snohomish, WA 98296 4823 360.243.3618 kristi@three60llc.com www.three60llc.com Ergonomic safety tools that reduces the risk of injury to housekeepers by reducing the weight of the mattress corner by up to 75%.Special discounts based on quantities ordered.

NAVIGATING

CLIMATES

WASHINGTON LODGING CONVENTION

TULALIP RESORT CASINO | OCTOBER 22-24, 2017

WAHOSPITALITY.ORG/CONVENTION ECONOMIC

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CONSUMER

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CLIMATE

The Key to Success is in Looking Ahead

By Rick Braa, CHAE

Q:

Over the last two years we have had so many changes required of our business.

Whether they were mandated by government, voted in by the public or forced by the economy, I’m having a hard time keeping up financially. Is there a way out? If so, what is the route to improve our results?

A:

Running a business is a constantly shifting landscape. At one moment business is great and on track, the next moment change is required to move forward successfully. The difference between falling behind and ruling the world is whether you choose to let off the gas or press it to the floor during hard times.

Great companies are led by great leadership. During the Great Depression there were two companies that manufactured corn flakes, Post and Kellogg’s. Post chose to follow the status quo and rein in expenses and Kellogg’s chose to hit the accelerator and expand its brand and offerings. Kellogg’s now has more than double the annual sales of its next largest competitor. Today, as the cereal category continues to experience declining market share for breakfast, Kellogg’s has taken the direction of pivoting to encouraging Americans to "reimagine their breakfast" and “think outside the cereal box. Although the cereal industry isn’t the restaurant business, for both it takes determination and strategic acceleration to face changing times.

Find the pivot. Change is hard, lack of change is deadly.

After acknowledging reality on what needs to change in your business, find the pivot point where the maximum impact can be felt by the guest and the employees. Change doesn’t always have to happen all at once, but you need to refresh your brand every five years and remodel every 10 years. Use the discipline of clearly recording the goals, the action steps, who is responsible, when goals will be complete and what type of resources are necessary. Then cascade the change messages throughout the organization to the lowest level and train behaviors to a level of understanding, reiterating the importance of the pivot.

Hit the accelerator. Once you’ve implemented changes, stay the course and champion where the brand is currently positioned and where it is going. Do more of what you do best and build difficult-to-achieve goals and marketing plans around your next evolution as a business. Focus on leading the business forward and supercharging the organization with leadership and higher expectations.

Drive hard and dominate.

Acknowledge reality. If your business is sagging or not keeping up with all the changes hitting the restaurant industry, be realistic. Perform a true assessment of your business. If you don’t have time, hire a consultant.

With every economic change comes the ability to reset. The strongest teams with the most focus and determination will set themselves apart and win market share, growing and becoming more profitable than ever.

Focus first on the guest experience. Ensure the basics are solid: Is service beyond expectation? Is product memorable and tweet worthy? Is the restaurant sparkling clean and in good repair? Then move to points of differentiation: What was once popular and different is now most likely mainstream and been copied over and over. Is your business integrated into the lives of your guest? Does the hospitality being offered make the guest feel like they own the brand? Is every guest special? Are they coming back more or less frequently? Does the menu reflect the brand?

Does it have “cravability,” quality, proper pricing ranges, visual and portion-size appeal, and enough choice? Is the atmosphere energizing in lighting, music and ambiance?

Is the presence of management helpful, engaging, and positively impactful? Never forget, when it comes to the guest, every small thing matters. From there move on to the employee experience and evaluate all the touch points with them, then on to the facility details.

For 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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