Washington Restaurant & Lodging Magazine April 2016

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Inside

www.warestaurant.org

Features

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Tip Pooling: What The Ninth Circuit Ruling Means for You

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Social Media is Evolving. Are You?

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Social Media Metrics are Already at Your Fingertips

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Time to Take Cybersecurity Seriously

In Every Issue

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President and CEO: Social Media and the New Business Model

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News Briefs

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Lex on Tech: Predictive Analytics and Your Restaurant

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Government Affairs Update

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WRA’s Education Foundation at Work

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Calendar/New Members

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Marketplace

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Ask the Expert: Create a Culture of Focus

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WA S H I N GTO N

April 2016

& Lodging

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In today’s rapidly changing business environment, social media outreach is a must. This issue provides you with key insights into how to build your social media ecosystem.

Washington Restaurant Association 510 Plum Street SE, Suite 200 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 Editor, Andy Cook Contributing Editor, Stephanie Davenport Contributing Editor, David Faro Research Editor, Sheryl Jackson JOINT EXECUTIVE COMMITTEE WRA Chair, Phil Costello Stop n’ Go Family Drive In WLA Chair, Matt Van Der Peet Westin Bellevue Hotel WRA EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Petrina Director of Business Development, Ken Wells Director of Communications & Technology, Lex Nepomuceno Director of Education, Lyle Hildahl Director of Government Affairs, Bruce Beckett Director of Internal Operations, Kylie Kincaid

President and CEO

Social Media and the New Business Model

By Anthony Anton 2016 is going to be a year where the current restaurant model will be shattered and rebuilt due to the political policies that are creating a new reality. Something we all should consider when creating a new business model is how impactful social media will be.

Millennials use social media to connect with others and share their lives. Most of them use it daily. This same community has a vastly different approach to our industry than those retiring. Eating away from home is no longer viewed as a luxury, but rather as a necessity, especially for busy families. You can expect the number of times a person eats out per week to continue to grow substantially.

That means that customers will be looking for different things from their local restaurant.

Take a small peek at the latest consumer survey information from the talented folks on the National Restaurant Association’s research team.

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

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

Products and services advertised in Washington Restaurant & Lodging Magazine are not necessarily endorsed by the WRA or WLA, and do not necessarily reflect the opinions of the WRA, WLA, their Boards of Directors, staff or members.

ADVERTISING INQUIRIES MAY BE DIRECTED TO: Michelle Holmes Allied Relations Manager 206.423.3902 michelleh@warestaurant.org Washington Restaurant & Lodging Magazine is published monthly for WRA and WLA members. We welcome your comments and suggestions. email: news@warestaurant. org, phone: 800.225.7166. Circulation: 6,310.

Ages 18-34

Ages 65+

Want to use more technology at restaurants

50%

14%

Have used free WI-FI in a restaurant

67%

21%

Social media or review site affected choice of restaurant within last 30 days

54%

13%

It’s funny for me, but as someone in his forties with a young family, I’m in between both groups, both in age and usage. Even though I depend on tech and social media, I can’t fathom using it twice as much as I do, like the generation after me does.

Just this week my 14-year old showed me an Instagram pic and comment from one of his friends complaining in real time that his food was “taking forever” at a nearby restaurant. And, there were 18 other unkind comments from his middle school classmates about the location.

“Dad, isn’t this place a member?” asked my son.

“Yes,” I replied.

Then with his phone at the ready, he asked, “O.K., what do you want me to say back?”

This recent real-life moment fully illustrated to me that our new business model must find a way to effectively engage, embrace and utilize instant feedback and operationally manage the social media world. It is going to grow and have three times the impact on your business than is does today.

Hopefully, this edition gets you thinking about how to include this element in your new business model as you begin to rebuild it. If you start now, you’ll be ready by the time my 14-year old and all his middle-school buddies become income earners and dining decision makers. 

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Primary Source of Information | News Briefs NRA and AH&LA File Amicus Brief on Seattle Wage Law The National Restaurant Association and the American Hotel & Lodging Association, together with other top national organizations, filed an amicus brief in March with the U.S. Supreme Court in support of the International Franchise Association’s (IFA) case against Seattle’s wage ordinance.

The original lawsuit, filed in June 2014 by the IFA and five Seattle franchisees, challenged the wage ordinance’s treatment of franchisees. Under the law, all franchisee businesses, regardless of the number of employees, are treated as “large” employers if the franchise has more than 500 employees nationwide.

As such, they must reach the $15 minimum wage at a faster pace than “small” businesses.

The IFA has not sought to block the wage law, but to overturn the part of the law it says discriminates against franchise owners by treating them as national companies. The lawsuit argued that the Seattle ordinance defies legal precedent that clearly defines a franchisee as an independent local business owner who operates separately from the corporation that provides brand and marketing materials.

In September, the Ninth Circuit Court of Appeals upheld a lower court decision against IFA. IFA appealed to the Supreme Court in January.

Taylor Hoang Recognized by the National Restaurant Association Education Foundation The National Restaurant Association Education Foundation has given its Faces of Diversity Award to Seattle restaurateur and WRA Board member Taylor Hoang. The award honors individuals who embody the American Dream and have who have achieved success in the face of adversity.

Taylor is an entrepreneur and leader in the Asian and business communities of Seattle. She started a mortgage brokerage firm specializing in securing loans for minorities while attending University of Washington. She has created several businesses in Vietnam, including facilitating small coffee farmers for international export and forming several internet companies that better

FDA Announces Another Delay in Menu-Labeling Enforcement Date The U.S. Food and Drug Administration has formally acknowledged that the enforcement date for federal menu-labeling requirements will not go into effect on Dec. 1, 2016. Congress has directed the FDA to postpone the law’s enforcement date until one year after the agency publishes its final guidance. A draft guidance was published in September 2015, but the FDA is still analyzing feedback on that draft.

The menu labeling law was passed in March 2010 as part of the Affordable Care Act and requires restaurant chains with 20 or more locations operating under the same brand to display calories on menus or menu boards and to provide detailed nutrition information to consumers upon request. The FDA published the menu labeling rules four years later, and this is the second time enforcement date has been postponed. For more information on the rules, go to www.restaurant.org/ menu-labeling or scan the qr code below with your smartphone.

serve the Vietnamese market.

At age 28, she opened Pho Cyclo Café, which she has grown to five successful locations, and now also runs Lavender Jade Catering. Taylor serves as executive director of Ethnic Business Coalition, a nonprofit committed to the long-term growth, sustainability and success of immigrant and minority-owned small businesses in Washington. Her commitment to Seattle’s minority community is unwavering and she consistently volunteers, mentors and advocates for aspiring entrepreneurs in the Asian community.

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Lex on Tech

Predictive Analytics and Your Restaurant: A Potential Juggernaut Awaits

By Lex Nepomuceno When I ran multiple million dollar marketing co-ops I had to explain to the franchisees of each market the importance of spending money in mediums that our customers paid attention to. Many new business owners wanted to spend their marketing dollars on things like a Little League Baseball team or some random coupon book. What ultimately convinced the franchisees to accept “corporate’s” recommendations was the ability to track how effectively we were using their money.

Analytics plays an important role in growing your business by helping you identify new and existing customers, determining the effectiveness of your current marketing efforts and helping you recognize new opportunities. And then there are analytics used to help business owners make strategic decisions by quantifying hidden patterns in data in order to predict future outcomes – otherwise called “predictive analytics.”

While traditional analytics might answer questions like “How much revenue did our Everett store generate last summer?,” predictive analytics answer the question “How much revenue will be generated by our Everett store this summer?” Or, even better, “Should I open a store in Everett at all?”

One of my favorite quotes of all time is Sun Tzu’s “Every battle is won or lost before it’s ever fought.” The effective application of predictive analytics would certainly go a long way in making sure decisions you make related to your business yield more wins than losses. However, keep in mind that while harnessing the power of data to assist in making the best decisions, it will not be one hundred percent. Just because you are holding four aces in a hand of poker, your opponent may still get a straight flush. That said, I would take four aces any day of the week!

Here’s how to get started: You don’t need to be a data scientist to begin understanding how to get your data to work for you. Start out by learning what you can about predictive analytics. The fact that you are reading this article and interested in this topic already puts you ahead of most of your competitors.

Change the way you approach your data. Whether it’s your customer base, average store sales or website traffic – start with the mindset “what do I want to achieve?” If your goal is to increase customer retention, focus on tools you may already have in your point-of-sale system, Facebook account and email subscribers. You may be surprised about what patterns you see by examining all of the information together. If you find that you don’t have the data you need, start collecting it.

Start with something small, but something that can benefit your business right away. Do you need to increase lunch sales during weekday afternoons? Well, begin by getting as much data as you can about your existing customers who frequent your establishment during the best day for lunch sales, let’s say Monday. Do the customers live or work nearby? Do they tend to purchase the same things?

What does your staffing look like during that time? Once you go through all of the information, you may find that your Monday lunch special brings in workers from nearby businesses. Perhaps, the best way to test and take advantage of this information would be to run a lunch special with similar charactaristics every weekday.

The terms “big data” and “predictive analytics” may sound intimidating, but in the end it is just information and how you use that information. You may already be collecting all of this information anyway, so why not just take it one step further? As Abraham Lincoln once said, “The best way to predict your future is to create it.” With predictive analytics you have the tools to do so.  March 2016 │ 9

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GOVERNMENT Affairs

UPDATE

By Stephanie Davenport

Restrictive scheduling in Seattle?

Working Washington, a coalition of labor organizations, held a press conference in February with Councilmembers Lisa Herbold and Lorena Gonzalez to announce their efforts to pass legislation in Seattle that would regulate employee scheduling and hiring.

While no specific ordinance language has been released, a draft policy proposal that would model legislation enacted in San Francisco, with modifications specific to Seattle is expected. As employers in the hospitality industry, we are concerned about what a mandated restrictive scheduling policy could mean to our employees and businesses and we look forward to participating in the process as stakeholders.

The hospitality employers in the city are facing the significant challenges that come with recently introduced regulations, including a minimum wage increase, paid sick and safe leave. Restrictive scheduling legislation would yet again force businesses to adjust their business model in order to meet compliance

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and succeed. Also, many of our employees seek out the hospitality industry for its flexible schedule, something very few industries offer, to meet commitments of school, parenting and other life responsibilities. We want to ensure that our employees can continue to have the opportunity to have a flexible schedule. The WRA/WLA GA team will continue to represent the interests of the hospitality industry as they work with leaders and stakeholders to find a solution and will update you with any new developments.

Spokane recognizes women business owners

In honor of International Women’s Day, the Spokane City Council presented a proclamation at the March 7 City Council meeting on behalf of Mayor David Condon, recognizing Women in Business and declaring March 8 Women’s Day in Spokane. The Spokane Chapter of the Washington Restaurant Association worked closely with the City Council, Mayor Condon’s staff and local female business owners to make this event possible. Several female business owners in the Spokane area were in attendance, including WRA member and owner of Zips Drive-in, Jen Faught, who gave a great speech about how the hospitality industry provides people of all ethnicities and genders a seat at the table. We are proud of the fact that the hospitality industry is one of the most diverse industries in the U.S. where half of all restaurants in the U.S. are either owned or co-owned by women.

Statewide minimum wage update

As the 2016 legislative session began, advocates were pushing new minimum wage laws in every avenue. After significant work, businesses in Tacoma were successful in getting an initiative on the ballot in their city that was an alternative to the $15 Now proposal. What passed in Tacoma was a phased-in approach that increased the city to $12 an hour over time and included a simple paid-leave element.

This achievement in Tacoma spurred legislators to address increasing the minimum wage statewide. The WRA/WLA had long known that a statewide solution would be better for hospitality businesses and all industries in our state, and we found in our work on this issue that there is a right way to increase wages. The WRA/WLA Government Affairs team took on the huge work of trying to get legislation (founded on compromise) written, sponsored and introduced by lawmakers. Additionally, on the first day of the 2016 session, the SEIU/UFCW-backed coalition Raise Up Washington filed a statewide initiative to raise the minimum wage to $13.50 by 2020 and require paid leave benefits.

The WRA/WLA Government Affairs team found themselves alone on more than one occasion in this effort. When legislation was finally drafted and given a hearing, our team was the only organization to provide testimony in support.

Business groups felt the measure went too far and wanted to stay with a strict anti-increase position. Labor groups felt the measure didn’t go far enough and wanted to wait for the ballot initiative to go to the people in November. Both of these groups had the ears of legislators on their respective sides of the aisle and the bill ultimately failed.

After weeks of intense, multi-party negotiations on a potential legislative solution to the minimum wage and paid sick leave issue, it became evident that an agreement was not possible before the end of the regular session. Although doubtful, WRA/WLA will continue to see if an opportunity can be created in the special session.

In order to keep all options available, the WRA/WLA filed a ballot initiative as an alternative to the Raise Up Washington measure. This initiative would: Increase the minimum wage to $12/hour over four years.

Require employers to provide paid sick leave benefits—modeled after the policy adopted in Tacoma in 2015.

Allow a training wage for a six-month period.

At the time of this writing, the initiative is under a 15-working day review by the Code Reviser and Office of the Secretary of State. Once that process is complete and final revisions are made, the Office of the Attorney General has a week to draft a ballot title and statement. That title and statement can be challenged, but the challenge must be resolved by the Thurston County Superior Court in a fiveday period. In summary, it takes about a month to begin the process of gathering signatures in order to qualify for the ballot. We will keep you up to date with the progress of both initiatives.

2016 legislative session

This year, Washington’s short 60-day legislative session ended up being a lot like other recent sessions. Legislators were more willing to go into special session than to reach a deal on a budget bill. The WRA/WLA Government Affairs team, however, was hard at work serving as successful advocates for members. Legislation passed that regulates music licensing by informing restaurants, bars and hoteliers of their rights and requires licensing companies to provide allowed lists of music. The team also helped defeat harmful bills that would increase alcohol costs and taxes on hospitality businesses. Look for more information in the next issue and a full legislative review later in the year.

You can also check our website at www.warestaurant.org for legislative information.  April 2016 │ 11

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TIP POOLING WHAT THE NINTH CIRCUIT RULING MEANS FOR YOU

An attorney of record in the WRA’s tip-pool lawsuit shares his perspective on possible next steps for Washington’s hospitality employers.

By Bob Donovan, Donovan Employment Law In February, the Ninth Circuit ruled that Department of Labor (DOL) regulations on tips and tip pools are valid, and are enforceable against employers who pay their employees at least the full federal minimum wage and do not credit tip income toward that wage.

These regulations, issued in 2011, state that tips are the property of employees, and that tips cannot be used by employers - including those who pay their employees the full federal minimum wage and do not take a tip credit toward that wage – except to implement valid tip pools, which can only include customarily and regularly tipped employees.

DOL takes the position that such jobs as dishwashers and cooks are typically not “customarily and regularly tipped” and, therefore, must typically be excluded from mandatory tip

pools. DOL also takes the position that management must be excluded from sharing in tips. Accordingly, the regulations have far-reaching implications for Washington’s hospitality businesses.

In 2012, the Washington Restaurant Association, together with the Oregon Restaurant & Lodging Association and others, challenged the DOL regulations in Oregon federal court. In 2013, that court decided in favor of the plaintiff associations, ruling that the challenged portions of DOL’s regulations are invalid, and that DOL is prohibited from enforcing them against anyone who was a member of the WRA or its coplaintiffs at the time of the ruling. Then on Feb. 23, 2016, a three-judge panel of the Ninth Circuit reversed the lower court and validated the 2011 DOL regulations.

TIMELINE 2010 Ninth Circuit Court of Appeals rules in Cumbie v. Woody Woo, Inc. that employers who pay their employees at least the full federal minimum wage and do not credit tip income toward that wage are not subject to federal regulations concerning who can be in a tip pool.

2011 U.S. Department of Labor publishes revised regulations, stating that tips are the property of employees, that tips cannot be used by employers except to implement valid tip pools, and that these regulations apply even to employers who pay their employees the full federal minimum wage without a tip credit. Under the regulations, only customarily and regularly tipped employees may be included in tip pools. Management and customarily non-tipped employees (per DOL, such as cooks and dishwashers) are excluded from “valid tip pools.”

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The WRA and its co-plaintiffs are considering options for challenging the Ninth Circuit’s ruling. These include petitioning the Ninth Circuit’s three-judge panel to reconsider its ruling, petitioning the entire Ninth Circuit to hear the case, and appealing to the U.S. Supreme Court.

At least one of these actions will likely be taken, but the path forward includes uncertainties. The Supreme Court may not hear the case, the three-judge panel may not reconsider, and the Ninth Circuit may not grant a review by the full court.

Even if a request is granted, there is no guarantee the recent ruling will be reversed as a result.

IF YOU HAVE A TIP POOL THAT MIGHT BE UNLAWFUL UNDER THESE REGULATIONS, WHAT SHOULD YOU DO? Many operators are asking the same question: Should you change your tip pool to address this Ninth Circuit ruling while a request to review the ruling is pending?

There is no “one size fits all” answer to this question. To determine what is right for you, you should consider a number of factors including, for example, legal risks of not changing your tip pool, the impact changing your tip pool will have on your business, and whether you would change the tip pool program back to its current system if the court changes its ruling.

The RISKS OF CONTINUING A TIP POOL PROGRAM THAT MAY VIOLATE THESE REGULATIONS WHILE A REQUEST FOR REVIEW IS PENDING One risk is of DOL attempting to enforce the

regulations against you while a request for review is pending.

The current understanding is that the 2013 ruling in the WRA’s favor, including the injunction against DOL, remains in place until any requested review of the Ninth Circuit’s ruling is finalized. This might only temporarily delay this risk, however, as a denial of a request for review could come very quickly – within a matter of weeks.

Another risk is of an employee filing a lawsuit against you, alleging that your tip pool is unlawful under these regulations and seeking damages as a result (e.g., repayment of tips allocated to those who should not be in the tip pool under the DOL regulations). This risk remains, even if a request to review the ruling is granted. Specifically, even if a local federal court is not required to follow the Ninth Circuit ruling while review of the decision is pending, it may anyway – local federal courts are not required to follow the Oregon court’s 2013 ruling. This risk may be mitigated, however, as a local judge might agree to stay a local lawsuit filed under the relevant regulations, pending a final ruling by the Ninth Circuit. In addition, there are other arguments you may make to try to dismiss such a lawsuit, which have been successful in other parts of the country in similar lawsuits.

The IMPACT ON YOUR BUSINESS CAUSED BY CHANGING YOUR TIP POOL MODEL Changing your tip pool model impacts your business — including your service model, pay structure and employee morale. It would be even more disruptive to make these changes, only to change things back again if a request for review is granted and the Ninth Circuit ultimately rules that the regulations are invalid.

The level of this impact to your business depends, in part, on

2012 The WRA joins Oregon Restaurant & Lodging Association and others in a lawsuit asking a federal district court to declare portions of DOL’s 2011 regulations unlawful (including those declaring a property right in tips and extending the regulations to employers who pay their employees the full federal minimum wage without taking a tip credit towards that wage).

2013 District court rules in favor of the WRA et al, declaring the challenged portions of DOL’s tip regulations invalid, and prohibiting DOL from enforcing them against employers who were members of any of the plaintiff associations at the time of the ruling.

2016 Three-judge panel in Ninth Circuit

reverses the District Court ruling, and holds that DOL’s challenged regulations are lawful.

The WRA and its co-plaintiffs are considering options, including petitioning for reconsideration by the Ninth Circuit’s three-judge panel that issued this ruling, petitioning for the entire Ninth Circuit to hear the case, or appealing to the U.S. Supreme Court.

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how drastically you envision changing your tip pool model.

For example, if the change is to only move one position out of the tip pool, this will likely have a smaller impact than moving several positions out of the tip pool, or doing away with a tip pool, or even eliminating tipping altogether.

Many employers potentially affected by a court ruling wait until the court rules on a request for review before making significant changes to their practices. As explained above, however, there is risk to taking such a course.

If you decide to not make any changes to your practices while a request for review is pending, now is a good time to at least consider changes to your policies and practices to address this ruling, and to be ready to make those changes upon relatively short notice should the request for review be denied.

Whether you decide to make changes to your policies now or after the court rules on a request to review its ruling, here are alternative models to consider.

EXCLUDing FROM THE TIP POOL POSITIONS DOL CONSIDERS NOT “CUSTOMARILY AND REGULARLY TIPPED” One option is to change your tip pool to exclude all positions DOL considers not “customarily and regularly tipped.”

This, however, is not as simple as just saying all front-of-house employees can be in your mandatory tip pool, and all back-ofhouse employees cannot. Instead, there are several important factors that determine eligibility for inclusion in mandatory tip pools under federal law. These include employees’ duties, whether employees are managers, where employees perform their duties, and employees’ levels of customer service and interaction.

For example, if cooks regularly run food to tables and interact with guests as part of their regular duties, they might be eligible for inclusion in a tip pool even though they might be labeled “kitchen” or “back-of-house.” Moreover, while management must be excluded from mandatory tip pools under federal law, some positions are not so clear-cut, such as headwaiters, captains and other hourly employees who provide service, but also may have additional responsibilities.

Such positions may or may not be eligible for sharing in mandatory tip pools, depending on their duties.

Many operators are not comfortable navigating the nuances created by DOL and the courts in determining who is eligible

for inclusion in mandatory tip pools and the gray areas that can result for different positions. For such operators, one or more of the below options may be more attractive.

VOLUNTARY TIP POOLING Another option is shifting to a voluntary tip share or tip pool program. If such a program is truly voluntary and not employer-mandated, it is not subject to the 2011 regulations. It is permissible for an employee to voluntarily tip out another employee who would be ineligible for inclusion in a mandatory tip pool.

Employees, however, sometimes challenge voluntary systems for being not truly voluntary. For example, they may claim they were coerced into making “suggested” contributions.

You can lessen the risk of a voluntary tip pool being challenged or found involuntary. Messaging to employees about such systems is important. Yet even when written materials explicitly explain the voluntary nature of the tip pool (e.g., that employees can choose whether to contribute and, if so, how much, on any given shift), it likely would be viewed as suspicious by DOL or a plaintiff attorney if everyone tips out exactly the same amount every night. Therefore, you will want to carefully consider how the voluntary tip pool is communicated to employees at the time it is implemented and as well as how it is implemented in practice to minimize legal challenges concerning its voluntary nature.

CREATing A MEANS FOR CUSTOMERS TO DIRECTLY TIP POSITIONS DOL CONSIDERS NOT “CUSTOMARILY AND REGULARLY TIPPED” Another option is creating a way for customers to expressly tip positions that otherwise would likely not qualify for mandatory tip pools under federal law. For example, changing your credit card slips to have two lines for customers to leave a tip – such as one for “service staff” and one for “kitchen staff.” If customers leave tips on the line for “kitchen staff” in this example, it makes it harder for DOL or a plaintiff’s attorney to claim the kitchen staff are not “customarily and regularly tipped” employees.

This model is, however, likely foreign to DOL. DOL may, therefore, be suspicious of this system or view it narrowly.

Careful consideration should be given to how to implement

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this system to minimize risk of legal exposure. Issues to consider include messaging to customers, how tips left for the kitchen staff will be distributed, and potentially taking precautions, such as not co-mingling tips left for service staff with those left for kitchen staff.

MANDATORY SERVICE FEES Some restaurants are eliminating tips and introducing mandatory “service fees.” Because these fees are not considered “tips,” they are not impacted by these federal regulations. Generally, employers may distribute service fees however they choose.

If you implement mandatory service fees, you must comply with Washington’s service charge disclosure law. Several lawsuits have been filed alleging failing to comply with this law. Typically filed as a class action, such lawsuits are very expensive to defend against and run the risk of high awards for damages or high settlements.

Also, keep in mind that service charges paid to employees, unlike tips, are considered part of their paid compensation and therefore increase their regular rate of pay, resulting in a higher overtime pay rate. There are also potential tax implications to consider with such a model, including higher payroll taxes and loss of the FICA tip credit. You should discuss the financial implications of a service charge model with an experienced accountant before deciding whether this option is right for you, or whether an alternative model might be more financially feasible. For example, given these financial considerations, one option might be a “hybrid” approach, where you have a narrow tip pool that only includes customarily and regularly tipped employees, and a small service charge that is paid to employees removed from the tip pool, to offset their loss of the tip income.

NO TIPPING OR SERVICE FEES Eliminating tipping or service fees and increasing prices to increase wages is an option that some operators are adopting.

This approach simplifies legal considerations, though this option may not be the right business model for all operators.

ARBITRATION AGREEMENTS Per the above discussion, there is legal risk with essentially every model that involves tips or service charges.

This legal risk can be managed in a number of ways.

One way to manage this risk is to work with an experienced attorney to advise you on these models, which one might be best for you, and how to lower risk within that model. In addition, you may consider having employees sign an arbitration agreement in which they waive their right to bring or join collective or class actions against you. While this would not insulate you from investigations (and orders to pay damages, penalties, etc.) by government agencies such as DOL, it lowers the risk of needing to defend against class actions filed by employees alleging violations of these (and other) laws.

In Washington, such agreements must be written and implemented in such a manner that they will not be ruled unconscionable. There are also certain implications to these agreements that may make them unattractive to some operators. I therefore recommend against simply downloading an agreement from the Internet or trying to draft and implement one on your own. Rather, I recommend working with an experienced attorney to understand the implications of these agreements, and to draft and implement such an agreement if you decide it is right for your business.

In closing, these issues are complicated – from both a legal and business perspective. The information provided in this article is for educational and informational purposes only, to provide you with a basic overview of the issues and options for addressing them. This article should not be construed as legal advice, or as a substitute for legal advice. You are strongly encouraged to seek legal counsel if you have questions or concerns about your practices or these issues.  Bob Donovan is available for formal legal advice and is offering WRA members a reduced rate for a 30-minute consultation on these issues.

Contact him bob@donovanemploymentlaw.com or 206.743.9234 for more information.

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SOCIAL MEDIA IS EVOLVING.

ARE YOU?

By Ross Boylan and Andy Cook

The real question when considering social media in 2016 is this: Are you capitalizing on its potential?

Not that long ago, newspaper ads, direct mail and, if you could afford it, TV and radio commercials were the vehicle to drive new customers to your doorstep.

How you engaged them when they got there was what turned your guests into repeat business.

With social media, engagement goes far beyond wooing people to your business and wowing them once they get there. Savvy operators are using social media platforms to maintain a connection with their clientele before, during and long after their visit to their brick and mortar location. Simply put, unlike any other medium, social media allows your business to become a part of people’s lives, even a part of their personal identity.

And more and more people are welcoming that digital interaction. In 2005, only seven percent of adults used social media sites. Last year this reached a whopping 65 percent of all adults. More importantly, social media is increasingly guiding consumer behavior. In a recent National Restaurant Association survey, one third of consumers said that they factored in information they found on social media when choosing a restaurant.

The numbers are even more impressive for Millennials, the sought-after demographic that spends more per capita dining out each month than any other generation. Five out of six Millennials in the U.S. connect with companies on social media networks, and 68 percent say they ask friends’ opinions, and very possibly ask them on social media, when picking out a restaurant.

Clearly, if you’re not taking advantage of what the social media ecosystem has to offer, you’re missing out.

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Facebook is still a must

Unless you have a full-time team that can stay devoted to the cause, choose your social media platforms wisely and ensure that they are appropriate and effective platforms. Due to the graphic richness of the hospitality industry, imagery is key. This is why the undisputed leader of social media, Facebook, remains the top choice for much of the hospitality industry.

promotional posts with other types of content, otherwise your page will start to feel like a giant advertisement and your followers will interact less with your posts, less loyal followers will shed you from their feed, and Facebook’s algorithms will lessen your visibility.

Think about the numbers. The average penetration rate of a Facebook post to your follower newsfeed is less than 20 percent. This means that each post may only be seen by about one fifth of your followers. Your goal is to beat this average.

One simple hack to increase penetration is to focus on photos and regularly post pictures of what you offer as profile or cover photos. This will populate more of your followers feed than a traditional post. Another way to increase your presence is to grow your following beyond benchmark numbers, the first of which is 1,000 followers.

Why? Facebook is continuing to grow and develop levels of marketing based on big data, and as its data sets expand, so do the nuances of connectivity and reach. A key factor in Facebook’s forward motion is its ability as a company to identify and absorb rising social media platforms such as photo-based Instagram, thus ensuring its future with the fickle digital audience.

You need to be social, so share something someone wants.

If you’re a restaurant, take pictures of new menu items or old favorites. People love pictures of food, and done well they inspire powerful cravings. If you‘re a lodging establishment, take well-composed pictures that showcase the beauty of your property or share photos of the surrounding area to give people a reason to visit.

So let’s look closely at the Facebook model. It’s not only the most widely used platform, but its networking versatility coupled with its sophisticated marketing and analytics features makes it a perfect place to craft an identity for your business. Now when you develop micro-marketing strategies through Facebook, you can also reach an Instagram audience with a click.

Even better, customers are probably already taking pictures of your products, property, or of themselves hanging out with their friends in your establishment. Capitalize on this customer-generated media by encouraging posting on your page. Their posts are great for your reach because profile-to-profile posts are heavily favored by Facebook’s algorithms.

Populate your feed

The easiest way to use your Facebook page is for product broadcasting or basic self-promotion. For any type of business, posting news about promotions and sales is a great way to get the word out to your followers. However, it’s important to mix these

You can raise awareness of your social media presence with guests with strategies as low tech as table-tents or as high tech as Facebook beacons which will ‘ping’ a customer’s phone, inviting them to like your page, redeem a coupon, or post that they’ve checked in to your establishment. You can also get your own beacons without much investment.

Another content strategy – one that can take a little more thought and attention – is using your Facebook page to interact with the community. Post news you find online that’s specific to the community where your business is located or share posts and content from other businesses in the area that aren’t direct competition. Odds are, you won’t have to do this too many times before they start sharing your posts as well.

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Be social

This brings us to the most important, and most nuanced, social media objective: getting your clientele engaged on your page. Engagement is any type of user interaction that leaves a mark on your page, and theirs. This can be a “like” or any of the “reactions,” recently introduced on Facebook, a “share” or a comment, and you want to encourage all of these.

When someone engages with your post, it shows up on their activity feed, promoting your brand to their friends. This effect can quickly become exponential if your post becomes particularly popular. And, most importantly, it’s an indicator that someone has decided to make you part of their social identity. They may come to consider your brand part of who they are, and to consider themselves and your establishment as part of their larger community.

Nourish your relationships by giving prompt attention to user comments, good or bad. Responding to positive comments lets people know that you care and makes it more likely they’ll continue to engage with your business’s page in positive ways. This personal attention makes it even more likely they’ll continue being your customer. It leaves them with the same feeling people get from a good concierge, or the manager stopping by their table.

Negative comments can also warrant responses, though turning them to your advantage does require particular care. A well-measured response can be a great opportunity to show your followers that you care about customer service and take the time to solve peoples’ problems. Of course, there are also many instances where you’ll want to hide or delete a comment, or even ban a user from your page. You just have to feel it out. And if the comment really raises up your hackles, you may want to respond with your personal profile or invite the commenter to take the discussion offline…. do what you feel is right.

Consider advertising

Without a doubt, exposure on Facebook that you don’t pay for, known as “organic reach,” has more value than paid reach. It’s free and it’s indicative of actual customers taking a genuine interest in your page. Organic reach and paid reach are two approaches that complement each other, and paid reach can be a powerful tool, if used properly.

On a small budget, you can adjust your marketing goals to grow your followership to your next benchmark, target a geographic population right down to a city block or mix up whom you reach, selecting by interests, income, home ownership, relationship status, ethnicity…the options are staggering. 

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Building a Social Media Ecosystem Facebook is the granddaddy of all social media and remains a must for any business investing time and effort into social. But don’t stop there. As you learn to master the art and analytics of your Facebook page, consider foraying onto other popular platforms.

Instagram

A “must have” for your tool box, this platform is all about photos. Facebook now integrates seamlessly with Instagram, and businesses can now set up campaigns through Business Manager and Ad Manager. If you neglect the power of pictures in your advertising schema, you are missing the boat.

Twitter

Tips of the Trade XX If you haven’t already, set up a business page on facebook.

XX If you have staff curating your social media content, add them as editors.

Maintain ownership of the page by maintaining the admin page for yourself.

XX If you have multiple locations, put a trusted employee in charge of social media at each location.

Everyone knows Twitter, but does everyone use Twitter. To many it feels a bit scattered, sporadic and distracting. Twitter’s advertising platform is powerful and rivals Facebook’s interface. Is it a game changer for your marketing efforts?

Maybe. Maybe not. Depends on if you are using it well. Is it critical for PR in the 21st century? Yes. Learn Twitter to the best of your ability if your career encompasses sharing the present moment with the masses.

YouTube

This ubiquitous video platform is now a verb. It’s cluttered and filled with the dregs of video humanity, but it’s also a powerful search engine in its own right. You can’t ignore it. You have to integrate with YouTube if you are a socialmedializer. Get on it, learn it, and start posting videos. Metrics tell us videos engage audiences at a much higher rate than any other form of media.

Pinterest Although many social media

XX Give a reasonable amount of freedom to your staff to have fun and create a personality for your page and your business. Over time, work with your social media contributors to develop the appropriate voice for your social media properties.

marketers are still struggling to understand the power of Pinterest, all you need to really know is that it is a search engine based on pictorial representation.

The people out there who view Pinterest as a female-centric place to post recipes are missing the ball. Pinterest is another platform that is a must have for sharing products and services. If you are ignoring Pinterest, you are ignoring market share.

XX Consider putting your standing menu in a tab.

Even though it appears that Facebook has dominated G+, many new social media marketers fail to understand that Google is still the SEO grand master. The WRA puts all social media through G+ first, because if the big G sees you, then everyone can see you through simple search strategies as well. Or at least that is the idea.

XX Include social media offers when customers “check in” at your location.

XX If you have one, list the link to your mobile application prominently.

Google+

—David Faro

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Social Media Metrics

are

Your Already at Fingertips

By David Faro

You may think you don’t have access to the “big data” everyone is talking about these days, or the tools to analyze that data, but if you’re using social media, you do. You just have to look.

Get started by jumping in with both feet. Go to the analytics page on your social media platform for clues into how your customers are interacting with your products and services, how they are incorporating your media channels into their own feeds, and what content promotes engagement. It’s all there at your fingertips.

For beginners, Facebook offers a host of “insights,” found right inside the native platform that allows users to understand—on a granular level—how their “fans” are engaging with their content and possibly their brand.

For more advanced practitioners of metric analysis, more robust dashboards such as Cyfe are available that combine the metrics of an organization’s social media and digital platforms.

Another key tool is Google Analytics, which tracks how your website is being used by visitors. Seemingly a beast, in actuality, Google Analytics is easy to tame, and the insights, like how people are arriving at your site, how long they stay and what they do when they get there, help you understand what is working and what isn’t.

The WRA’s use of its digital ecosystem offers a good case study. We’ve built a robust multi-channel digital marketing system to position the WRA as the primary source of hospitality information for all of our members. And at any given time, given any piece of our digital information, we can tell you how many people looked at it. We can decipher the demographics that support certain content themes. Who is most interested in information on minimum wage? Who is most concerned with predictive scheduling? Where are the geographic hot beds of concern?

We analyze what content garners the best engagement from our target markets so that we can then craft media that earns even more engagement. As a result, our social media channels have helped build participation in our training and cost-saving programs.

Before getting into specifics about tools, it’s important to

ask if the metrics you are looking at will help you make decisions. When you see the metric, do you know what you need to do in response to that insight? In short, look to track actions, not simply the number of eyeballs that cast their gaze on your material.

So, go start wrestling with your data, start learning more about the people interested in your business. The information they leave behind through their own digital footprints is worth its weight in gold.

THINK ABOUT HOW WELL YOU ARE DOING Here are some common things to look at when considering how people interact with your social media.

Consumption

How many people viewed, downloaded or listened to this piece of content?

Sharing How resonant is this

content, and how often is it shared with others?

Conversations How

many conversations (comments on Facebook or replies on Twitter) does a post generate?

Amplification

How many reshares or retweets do you earn on average for each post?

Applause

Are you getting retweeted, liked, +1s? Who doesn’t like loud applause?

Lead-gen

How often does content consumption result in a lead? 

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Time to Take CyberSecurity

Seriously

By Paul Schlienz

“It can’t happen here” are among the most unfortunate of famous last words.

When it comes to cybersecurity, many owners of hospitality businesses discover all too late that their operations were vulnerable to a data breach, and that vulnerability can be very costly indeed.

One credit card processing company estimates that for data theft involving payment card data, the average small business will pay between $36,000 to $50,000 in card brand fines, forensic investigation fees, security remediation, card reissuing and monitoring fees and fraud-reimbursement penalties.

Add in loss of reputation, notification costs, PR support and legal fees, not to mention what would happen if intellectual property like your recipes were stolen, and a data breach could easily pull a small business under.

If you’ve been inclined to put your head in the sand when it comes to cyber security, now is the time to heed experts’ advice. Take data security seriously and have a data breach response plan because it really could happen to you.

Protect Yourself

“Start out by having a point person on your staff who’s on all the right lists and is aware of what’s going on in cybersecurity,” said Peter Henley, CIO of Clark Nuber and leader of its technology team.

Limiting remote access to your computer systems is another essential step. If you don’t limit remote access to a small number of trusted employees and vendors you risk hackers from anywhere in the world gaining access to your system and causing all manner of mischief. Strong passwords, changed every three to six months, are also important protection.

“Limiting access to information to a need-to-know basis among your employees is always a good policy,” said Patrick Pearce, attorney with Ogden Murphy Wallace.

You’ll also want to hire a professional to install and maintain firewall systems. These systems need to be hardened and supported by anti-virus software to block attempts from hackers to disable your wall of protection.

Be sure and find a security vendor who can regularly perform remote system scans to find vulnerabilities in your business’ systems. The right professional will be able to detect any breaches when scanning your internal systems and external devices, like your credit card readers.

Keep in mind that while free Wi-Fi is a nice perk for guests, there are risks. Unless you also have an entirely separate network for your POS system in addition to separate networks for security cameras and any other systems you run, your systems are not secure. Creating multiple layers between your confidential information and potential hackers is the key.

Encrypting credit card data is another action with a potentially big security payoff. Keep in mind that older Point of Sales systems and card readers send raw credit card numbers to a back-end server, where they are then charged. Older systems, like these, are easily hacked due to lack of encryption utilized by new POS systems. The new systems also don’t store any data, which makes them useless for hackers.

“Encrypting all information you get from customers in addition to employee information is the best way to prevent a breach,” said David Smith, attorney and owner of Garvey Schubert Barer. “Even if hackers can get inside a system, the information won’t do them any good if it’s encrypted as the FBI is discovering with the terrorist’s iPhone.”

Be sure to also faithfully check for software updates.

Manufacturers and software companies often update their systems when vulnerabilities are found. POS companies

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constantly search for weaknesses in their products, so don’t ignore it when they offer an update.

Without it, your system could be vulnerable to a hacker.

Your vendors can also cause you financial hardship and a loss of reputation if they involve your customers in a data breach. Be proactive and amend all your vendor contracts to require compliance with applicable data security regulations, especially if vendors are used by your business to process, store, transmit or destroy client, consumer and/or employee data.

When Disaster Strikes

Sometimes, despite all your best laid plans, a cyber breach will hit your business like a tsunami. What then?

“When cyber disaster happens, your goal is to stop the bleeding,” said Henley. “You’ll need to find out immediately how the breach occurred. You can’t stop until you know all the details so you can mitigate it, stop it and put tools and programs in place so it won’t happen again.”

Information technology professionals are essential in this process. They will identify what data was compromised or stolen, who was affected by the breach and when and where it happened. They’ll also isolate the parts of your system that were affected to prevent other areas from being compromised.

Key will be quarantining corrupted computer servers, devices and systems so they can be thoroughly examined and fixed.

Follow your response plan and gather your crisis communications team, which should include the key people in your business, public relations professionals and legal counsel.

Henley suggests that you assign one person to talk to the media once the breach becomes public knowledge. A single

press release won’t suffice. You’ll need a full-blown strategy.

And tread carefully in dealing with the public. Data breaches can severely damage your customers’ trust, potentially ruining your business’ reputation.

Focus on being as transparent as possible – this helps build and maintain trust. Offers of complimentary fraud or identity theft protection are common in the wake of data breaches involving personally identifiable information, helping you rebuild good will.

Once you know what happened, you must act quickly.

If personally identifiable information (PII) has been compromised, under Washington state law you are now required to notify affected individuals within 45 days. (PII is someone’s first name or first initial and last name in combination with their social security number, driver’s license or Washington state identification card number, or account, credit or debit card number along with the required security code or password.)

Notification is no small task and can be costly. In a 2014 report, Ponemon Institute estimated that each personal record compromised during a data breach costs an entity approximately $201.

Failure to follow Washington’s data breach notification law, which was strengthened in 2015, can be much more expensive.

You can be held liable, and under the law litigants can recover attorney’s fees plus up to $10,000 in punitive damages.

Having cyber insurance in place will certainly soften the blow of a data breach.

“Cyber insurance makes a lot of sense because insurance companies have been through more of this than anyone else,” said Gregor Hodgson, vice president of Parker, Smith & Feek, one of the Northwest’s largest insurance brokerages. “You’ll get a data breach coach who can take you through the claim. If you do get hacked or breached, things happen quickly. Once your name is out there, how you respond is critical.”

No matter what you do, never naively assume that a cyber breach can’t happen to your business.

“The important thing is that every company needs to prepare for cyber breaches the same way they prepare for a natural disaster,” said Smith. “If you’re prepared, you’ll know what to do quickly when a cyber disaster happens.”  For more information, go to www.restaurant.org/Cybersecurity to access the National Restaurant Association’s Cybersecurity 101, a toolkit for restaurant operators that includes important information for all hospitality businesses.

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Building Successful Employees for the Hospitality Industry: WRA’s Education Foundation at Work

By Lyle Hildahl, Director, Washington Restaurant Association Education Foundation

Hemingway once described heroism as grace under pressure. That is exactly what I saw at this year’s Boyds Coffee ProStart Invitational.

In the culinary competition, a student from Puyallup High School had an experience that required him to tap into his skillsets in problem solving, critical thinking, sanitation and safety, team work, plate presentation, technique and composure. Alex was competing with just one other teammate, up against teams with four members plus an alternate. When his partner cut her finger in the knife skills portion of the competition and had to leave Alex was on his own.

He had options, but Alex did not include quitting among them. He asked the judges for permission to follow his team’s original plan. He then made sure the product, table, utensils, and other elements that were possibly in contact with his teammate’s blood were properly disposed of before continuing.

Alex went on to produce three courses for presentation to the judges, knowing he was completing the tasks not only for himself, but for his fellow team member. At the awards ceremony that day, the Puyallup High School team received a standing ovation for its skill and courage. I am guessing every judge that day handed Alex a business card and said “Look me up.”

The experience made me think about the resources that helped Alex perform at such a high level. He had good teachers, good mentors, good coaching and good curriculum. And he was passionate about his career choice. Alex also made sure he had the opportunity to be at an event which provides excellent opportunities for networking and job offers.

The Washington Restaurant Association Education Foundation is deeply involved in a workforce development grant project with the Department of Social and Health

Services called RISE (Resources to Initiate Successful Employment). The goal is to provide comprehensive case management to reduce and/or eliminate barriers for employment and provide classroom and work-based learning activities to impart the knowledge and skills required to launch a career in hospitality that will earn a sustainable income. To qualify for the project, participants must be on public assistance and receiving food stamps.

This is why I believe our project plan will work. Just like Alex, these participants will need good teachers and mentors, coaches, curriculum and training. With these resources and a passion, like Alex, they should be successful.

Our plan includes curriculum designed for five stages, or ladders, of a career, starting with entry-level positions on up to management. It includes classroom training with individuals from industry applying real life content to the topics. And it includes on-the-job training with industry partners that will provide ongoing feedback for the classroom.

I recently went through onboarding exercises with our employment partner Jack in the Box for the first ladder in quick service. I experienced first-hand what a new employee will be expected to understand when hired.

These knowledge and skill requirements will be met by participants in our classroom before they become employees. Every employer that signs up as a partner in this project will have the same opportunity.

Hospitality is the industry of opportunity as Alex is discovering. We hope the individuals participating in the RISE project will make that discovery as well.  To find out more about the RISE project and other workforce development activities through the Education Foundation, contact Bernadette Irish at bernadettei@warestaurant.org or visit www. warestaurant.org.

24 │ warestaurant.org

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Join Us Next Year:

APRIL 23-24, 2017 • PORTLAND, OR OREGON CONVENTION CENTER

Thank You

TO ALL OUR SPONSORS,

Attendees and Exhibitors for Another Great Show!

The Northwest Foodservice Show would not be possible without the generous support of the following organizations. Thanks to their substantial contributions, the Show remains the prime food and beverage exhibition in the region and is able to provide valuable learning and networking opportunities for the industry year after year. Thank you for continuing your commitment to the foodservice and hospitality industry in the Pacific Northwest!

VISIT NWFoodserviceShow.com

Presenting:

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Tasting Pavilion:

Show Bags:

FOR BOOTH SALES/ SPONSORSHIP/ ADVERTISING CONTACT: MICHELE HOLMES micheleh@warestaurant.org 206.423.3902 KEVIN HANSEN kevinh@warestaurant.org 206.850.7595

Lanyards:

Charging Station:

SHOW INFORMATION, CONTACT: JEFF SWENSON Tradeshow Manager nwfoodservice@otshows.com 253.238.3807

The Northwest Foodservice Show is produced by the Washington Restaurant Association and the Oregon Restaurant & Lodging Association.

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INDUSTRY CALENDAR April/May

NEW HOSPITALITY MEMBERS Alexander’s Lodge & Restaurant, Ashford

Training Apr. 26

First Aid/CPR/AED, Kent

May 3

ServSafe® Manager, Seattle

May 10

ServSafe® Manager, Kent

May 12

ServSafe® Manager, Tumwater

May 19

ServSafe® Manager, Tacoma

May 23

ServSafe® Manager, Tacoma

Li’l Woody’s LLC, Seattle Madison Diner, Bainbridge Island

Bar Del Corso, Seattle Maltby Cafe, Snohomish Best Western Plus City Center, Spokane Mollusk, Seattle Bistro Maree, Seattle Northern Pacific Coffee Co., Tacoma Black Fish Bistro, Friday Harbor Northwood Public House, Battle Ground Blue Water Taco Grill, Seattle

Meetings

Choice Hotels International, Bellevue

Parfitt Way Management, Bainbridge Island

Apr. 12

Seattle Hotel Association Board Meeting

Circa, Seattle

Portage Bay Cafe, Seattle

Apr. 12

Spokane Chapter Board Meeting

Apr. 19

Spokane Hotel/Motel Association Meeting

D Squared Company, Seattle

Apr. 19

Finance Committee Meeting

Residence Inn Bellevue Downtown, Bellevue

Apr. 21

Education Foundation Board Meeting

May 3

Seattle Chapter Monthly Meeting

May 3

Executive Committee Monthly Meeting

May 3

HIHIT Board Meeting, Seattle

May 4

Retro Invest Workgroup

May 4

Retro Trustees Meeting

May 4

MSC Sub-committee Meeting

May 10

Seattle Hotel Association Board Meeting

May 10

Spokane Chapter Membership Meeting

May 17

Spokane Hotel/Motel Association Meeting

Events Apr. 11

Bite of the Apprentice Fundraiser for Washington Restaurant Association ProStart Program

Dish Cafe, The, Seattle Rip City Casino, Longview Downtown Dupus Boomer’s, Richland Drae’s Lake Route Cafe, Seattle

Rose Garden Chinese Restaurant, Puyallup

Elemental Pizza LLC, Seattle

Sansei Seafood Restaurant, Seattle

Flanagan’s Craft Pub, Puyallup

Smoke & Cedar, Tacoma

Frost Group Inc., Mill Creek

South Bay Coffee Company, Olympia

Gold Mountain Golf Club, Bremerton

Taco Time Richland, Richland

Grove West Seattle Inn, Seattle

Taj Palace, Bellevue

Kaffeeklatsch Seattle Cafe, Seattle

Uneeda Burger, Seattle

La Quinta Inn & Suites, Spokane Valley

Urban Saloon & Grill, Longview

Le Pichet, Seattle

Zachary Dean’s Family Italian, Bellingham

NEW ALLIED MEMBERS MG2 Patrick Kruger patrick.kruger@mg2.com 1101 Second Ave Ste 100 Seattle, WA 98101 2923 2069626458 www.mg2.com

Patrice & Associates Rachel Grossman 1926 SW 164th St Seattle, WA 98166 2742 2065503133 rgrossman@patriceandassociates.com patricejobs.com/rgrossman

Architecture Firm 26 │ warestaurant.org

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Employers in WA state are required to have first-aid trained personnel available on all shifts, if the business is not in near proximity to an infirmary, clinic, or hospital. Completion of the course provides all the necessary certifications to meet state requirements, in a fun and engaging four hour course. We also offer an optional module for Bloodborne Pathogens (BBP) training. This session is for employees that may potentially become exposed to any body fluids, either through daily job or through applying first aid to another person in need. Visit wraef.org/training/first-aidcpr-aed/

WRA Members sign up here: wra.cc/wraofficedepot Employees and Family sign up here: wra.cc/officedepotemployees EMPLOYEE BACKGROUND CHECK According to ACRAnet, the WRA employee background check partner, one-third of job applicants lie on their applications and another five percent falsify their social security number. In today’s economically challenging times, employers are more likely to see a rise in embezzlement and other potentially harmful behaviors. In fact, a reported $4 billion is lost annually to embezzlement and a violent employee incident costs employers on average an incredible $250,000.

These sobering statistics make any small business owner cringe. However, employers can protect themselves with a mere $19 investment in an employee background check. To set up your account, contact: Jacquie Brownell at (800)304.1249, ext. 1241

WE EXIST TO SERVE YOUR RESTAURANT NEEDS

CARLOS GARCES 425‐291‐5279

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MIKE ENGLUND

Employment Practices 425‐291‐5255 Employee Benefits General Liability & Liquor Liability Cyber Liability – For Sensitive Customer Data

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Healthc

HEALTHCARE SOLUTIONS

Are you lying awake at night wondering if you are compliant with all of the healthcare laws? Let the WRA help you sleep better!

The Washington Restaurant Association has added “HEALTHCARE SOLUTIONS” to our program offerings. To find out what works best for your business, visit: wra.cc/hcsolutions to walk through our healthcare options for your business.

Or, ask your broker. Don’t have a broker? Call or email and I will set you up with an expert in our industry!

Contact Stephanie Conway for more information at 360.581.5788 or email her at stephaniec@warestaurant.org.

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Ask the Expert | Restaurant Profit Coach Create a Culture of Focus to Optimize Results

By Rick Braa, CHAE

Q:

The team is showing inconsistent results whether it’s service, financial performance or cleanliness. At the same time, the industry is becoming increasingly competitive. I believe in my team; how can I help it achieve consistent and better results?

A:

Businesses run in cycles. Being busy creates focus and translates into performance. Why? Focus activates behavior. What occupies the mind moves the feet. Employees have no choice but to focus on the important job of serving the guest and working as a team, the basis of their jobs. It’s expected when things are busy that an employee must move at a rate faster than what is normally comfortable for most and perform at the highest level possible. As the business slows down, performance often drops off and becomes inconsistent. The difference is focus. To see consistent results, consider the following: Understand that focused attention takes effort. Being present is taxing. Think of the last time you parallel parked or did something unusual while driving. The first thing you may reach for is the radio to turn it down. That’s because multi-tasking and focusing on more than one thing at a time is nearly impossible. If a behavior is automatic, like driving, rather than controlled, as with parallel parking, it is processed by utilizing different brain circuitry. A controlled response takes effort and focus until repetition moves from controlled to automatic behavior. Reinforce behaviors that move learning forward. If you can maintain focus on a goal or habit, more often than not, that goal will be achieved or that habit created.

Enthusiastically communicate why focus is important and make it personal. Clarity creates focus. People will do what is important if it’s personal to them. You can achieve consistent results by taking the time to ensure employees understand why something is done and what the motives are behind that action or behavior. If an employee doesn’t understand why something is important, results will be inconsistent. Bringing clarity to the “why” drives performance and consistency.

Get everyone into the “flow.” Everything and everyone seems to work seamlessly once in the “flow.” This is the time when everything is clicking. It’s the moment when a person executing a behavior is fully involved in the enjoyment of the process and has the feeling of energized focus. The job of management is to move the team into flow, starting with the moment each team member clocks in.

Provide ongoing, intense training. Building automatic competence takes time and repetition. What was once difficult can become easy and rote with time and training.

That’s where training typically falls off. Employees receive initial training, then they’re considered “trained.” Rather, training should be ongoing and intense. Raise the bar daily and don’t accept the status quo. Everyone can get better particularly if they are already excellent. Build on strengths and ensure every person on staff is challenged to go to the next level regardless of current competence.

It is the tool that a lion tamer uses that makes it possible for him to walk into a cage with an animal several times his size that could rip him to shreds in seconds. The whip is for show; the chair is the tool. A lion will try to focus on all the legs of the chair rather than the lion tamer, and the split focus freezes the lion in confusion. The same thing happens with humans. When we try to focus on more than one thing, we can’t complete anything with precision or ease. Driving everyone into the flow and providing an intense training environment that builds automatic behaviors with plenty of understanding and support will bring the consistent results you’ve been craving.  For more information on improving profitability and driving performance, contact AMP Services at rbraa@ampservices.com.

Rick Braa is the co-founder of AMP Services, an accounting and consulting firm specializing in helping companies grow profitability.

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Orcas Island, WA

LOCATION:

18 Orcas Hill Road, Orcas, WA 98280 (Strategically located in Orcas Village within a few easy steps and overlooking the Orcas Island Ferry Landing)

SALES PRICE:

$1,795,000 (Includes Land, Building, & Business) Prefers Cashout (Possible Seller Financing for Credit Buyers)

YEAR BUILT:

1904 (Significantly Remodeled Over the Years)

LOT AREA:

23,522 Square Feet (.54 Acres) per San Juan County records

BUILDING SIZE:

11,001 SF (1st: 3,514 SF + 2nd: 2,900 SF + 3rd: 1,188 SF + Decks: 3,399 SF)

GROSS REVENUES:

$1,151,324 (2014) – (Approx. Café: 1/3 + Bistro: 1/3 + Hotel 1/3)

The Orcas Hotel is a charming Victorian-style Bed & Breakfast that first opened its doors to guests in 1904. Nestled in the heart of the San Juan Islands, it offers breath-taking views, delicious food and a lively atmosphere. Experience friendly service and the peaceful atmosphere of Orcas Island from the Inn’s premium accommodations of 12 spacious Guest Rooms with tasteful decor that can sleep up to 32 people. Revenues are shared evenly between the Orcas Café (breakfast & lunch); Octavia’s Bistro (dinner & lounge); and hotel accommodations. Receptions and parties can serve up to 150 guests – perfect for wedding packages. The strategic location is ideal for travelers by foot, bike, or car. Whale watching and kayak trips are all within walking distance. Please call for a tour.

Visit Website: www.orcashotel.com

P EIZER COMMERCIAL REAL ESTATE, L.L.C.

MARK PEIZER

E RS E EV E! R E ID SE S

Principal • Broker • MBA

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