Washington Restaurant Magazine January 2015

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Washington state legislative session 2015

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2015 session outlook

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Multiple stakeholders unveil Restaurant Success

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Restaurants get involved

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Pre and post-election, state and U.S. party composition

Other stories

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Lex on Tech: Do you own your .RESTAURANT?

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News Briefs

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Unions and restaurants: WRA fighting for you

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Member Spotlight: Cloverleaf Pizza

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Helping restaurants build opportunity

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Calendar/New Members

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Marketplace

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Layering: The key to boosting your lunch sales

On the cover It’s that time of year again.

The Washington State Legislature will reconvene, in Olympia, for a long session.

Issues of great interest to restaurant operators will be debated and acted upon.

The WRA will be your voice in Olympia, and this issue of Washington Restaurant Magazine will bring you up to speed on what you can expect from this legislative session.

January 2015 | 5

Lex on Tech EDITORIAL STAFF Publisher, Anthony Anton▪ Executive Editor, Lex Nepomuceno Managing Editor, Paul Schlienz Contributing Editor, Andy Cook Contributing Editor, David Faro Contributing Editor, Stephanie Davenport Research Editor, Sheryl Jackson Art Director, Lisa Ellefson WRA EXECUTIVE COMMITTEE Chair, Phil Costello Stop n’ Go Family Drive In Vice Chair, Chad MacKay El Gaucho Hospitality Secretary/Treasurer, Mark Chriest Oki Developments, Inc. Immediate Past Chair, Bret Stewart CenterTwist, Inc. WRAEF President, Gary Sutter Northern Quest Resort & Casino WRA EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Petrina Director of Government Affairs, Bruce Beckett Director of Communications & Technology, Lex Nepomuceno Director of Education, Lyle Hildahl Director of Internal Operations, Bekah Cardwell 510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.warestaurant.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 Restaurant Magazine are authorized for personal use only, with credit given to Washington Restaurant 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, its Board of Directors, staff or members.

Products and services advertised in Washington Restaurant Magazine are not necessarily endorsed by the WRA, and do not necessarily reflect the opinions of the WRA, its Board of Directors, staff or members.

ADVERTISING INQUIRIES MAY BE DIRECTED TO: Nina Booth Allied Relations Manager 425.220.7778 ninab@warestaurant.org Washington Restaurant Magazine is published monthly for Association members. We welcome your comments and suggestions. email: news@warestaurant.org, phone: 800.225.7166. Circulation: 6,310.

Do you own your .RESTAURANT?

By Lex Nepomuceno, Executive Editor I am proud to announce that WRA is the new owner of the Washington.Restaurant and Association.Restaurant domain names. So, if you type in the aforementioned domains into your web browser, you will be directly sent to WRA’s website. Why is this important? It means that you can do the same for your business. This is especially important if you got into the domain game late and had to settle for a .net or use a “hard-to-remember.com.”

So, instead of “LittleSicily-Restaurant.com,” you can now get “LittleSicily.Restaurant” – a much easier to remember Web address that would look way better in your marketing materials?

What are some other reasons to register a .restaurant when you already have a .com?

They provide increased flexibility and control over your corporate image online.

The new domain extensions give your restaurant a greater command over its online presence.

The new gTLDs can help justify your company’s current online presence, including your domain and trademark portfolios.

Last year saw one of the biggest changes on the Internet ever. Unfortunately, most managers and businesses are barely aware of this development, or discount its importance. Domain names, essentially, the permanent address of a company’s Web presence, were significantly impacted through the release of “generic Top Level Domains” (gTLDs) such as .club, .website and .museum. There have been at least 3.5 million gTLDs registered since the release. More recently, the domain authorities have released the gTLD .Restaurant, which means anyone can register “YourBusiness.

Restaurant” including your competitors, domain squatters, disgruntled employees, etc. As of this writing, I was shocked how many names of major, multi-million dollar restaurant operations had not secured their names.

It is important to note that there are a number of hospitality-related gTLDs that are currently available to the public. Here are the most notable domain extensions businesses can grab right now: .Restaurant .Events .Kitchen .Bar .Hotels (Coming in 2015) .Coffee .Beer .Catering .Rest .Menu .Recipes .Pizza .Club With so many gTLDs available, you might be wondering which ones you should target for your business. Here are some ideas to help you establish which domain extensions your business should consider: Be Innovative: Suffixes such as .rocks can creatively present your brand to customers. For example “BobsGrill.Rocks”.

Get focused: .Events, .Club, or .Beer, for example can help consumers associate your brand with a specific area of expertise. For example, do you want to promote your bar business? How about “YourRestaurant.Bar”?

Gain Consumer trust: gTLDs such as yourbrand.restarant can demonstrate high levels of security and help verify your online identity.

Get Organized: gTLDs like .jobs and .catering can create separate sites or sub-sites for visitors looking for particular topics.

Become easily remembered: Have your domain prefix and suffix form one word for catchy and memorable domain names. Isn’t WestSeattle.Coffee more resonating than WestSeattleCoffee.com? ▪ So what are you waiting for? Go to your domain registry of choice (GoDaddy, Network Solutions, etc.) and see if “YourBrand.Restaurant” is available!

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Primary Source of Information | News Briefs Workers’ comp rates increase for 2015 will be lower than first proposed The Department of Labor and Industries announced a 0.8 percent average rate increase in the 2015 workers’ compensation premiums.

The increase comes out to about an additional one half a cent per hour worked. This 0.8 percent increase is less than half of the amount of the increase initially proposed in September. Much of the credit for the lower increase goes to improved third-quarter financial numbers for the state workers’ compensation system. The new rates took effect January 1.

For more information, go to http://wra.cc/wra0115c ▪ WRA’s Josh McDonald moves to Washington Wine Institute Josh McDonald, the WRA’s state and local affairs director has accepted a position as executive director of the Washington Wine Institute. Josh has been on the WRA’s Government Affairs team since 2007, and will be missed.

He led the charge in Seattle, dealing with every aspect of the minimum wage issue, conferring with Mayor Ed Murray and the Seattle City Council, meeting one-on-one with members and generally being the “boots on the ground” for our efforts. Thanks to Josh’s efforts, hundreds of local restaurants are now communicating with city government regarding the right set of solutions for business owners, operators and employees. Josh focused on building and maintaining a strong industry presence at the city and county level, making inroads with local governments on paid sick leave and various sustainability issues. We appreciate Josh’s great contribution to the WRA’s mission, and wish him great success in his future endeavors. ▪ State economic forecast report released: Good news for state budget, but families are still struggling The Washington State Economic and Revenue Forecast Council released its quarterly revenue forecast for the state. This is the final revenue forecast before the Legislature convenes the 2015 session on January 12. According to Chief Economist Steve Lerch, the General Fund-State net change is an increase of $107.9 million for the 2013-15 two-year budget cycle in comparison to the previous forecast in September. The council also increased its forecast for the 2015-17 biennium by $241.3 million. This is good news for our state budget, but we should also remember that families are still struggling with their budgets.

The focus during the 2015 legislative session needs to be on ways to further stimulate the state’s economy and job growth. ▪ What you need to know about the FDA’s new menu-labeling rules After a long wait, the U.S. Food and Drug Administration has finally released its menu-labeling regulations. What follows is a general overview of these rules.

In order to ensure compliance, restaurant operators need to consult the actual regulations as published by the FDA. In general, the rule will cover restaurants and similar retail food establishments if they operate 20 or more locations under the same name with substantially the same menu items at its locations. Smaller restaurants may comply with the rules

if they choose, but this on a strictly voluntary basis.

Important note: If you are affected by these rules, you will have a year to prepare for them since they do not go into effect until Dec. 1, 2015.

To read the full article, go to http:// wra.cc/wra0115a ▪ Immigration executive actions: A helpful guide for restaurant operators It isn’t clear yet exactly how President Obama’s series of executive actions on immigration, which will give millions of undocumented immigrants a path to temporary legal status, will affect restaurants and other employers.

U.S. Citizenship and Immigration Services, (USCIS) a division of the Department of Homeland Security, will be working to implement the actions, and the first elements are expected to take effect in about three months. We’ll have full analyses of the elements and their impact on restaurants as USCIS releases guidance to explain the changes.

To read the full article, go to http:// wra.cc/wra0115b ▪ IRS releases new standard mileage rates; business rate to rise in 2015 The Internal Revenue Service has issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 57.5 cents per mile for business miles driven, up from 56 cents in 2014.

23 cents per mile driven for medical or moving purposes, down half a cent from 2014.

14 cents per mile driven in service of charitable organizations. ▪

January 2015 | 7

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Unions and restaurants: WRA fighting for you

This is the final installment in a series of four articles.

We’ve reviewed how restaurants have, unfortunately, been pulled into a standoff with the union agenda; explained how the showdown could impact the regulatory environment of local restaurateurs; explained the union push to change the restaurant model; and highlighted the non-regulatory effects of this battle – how you, the local restaurateur, will be impacted.

Your business is highly likely to be an innocent bystander that gets harmed in the showdown between two giants. We are fighting to protect our neighborhood restaurants at the legislative and local level.

In response to this new reality, the WRA has:

Begun playing on a new field.

We now know the union goal is to pass laws on a city-by-city basis where the checks and balances of government aren’t as prevalent. In the past few years, we have formed a new, strong local government team.

This team is developing networks with WRA members and community leaders on local issues. Please let us know if you would like to be added to the contact list for these regional issues at any time. Our team is starting to form partnerships with city councils and mayor’s offices to negotiate on your behalf, to make sure that you have a seat at the table when new local ordinances are proposed.

Preparing for a new audience.

As the public starts taking direct action on restaurant regulation via initiative and public pressure, public expectation of restaurants has changed; it has moved beyond great food and service at a great price. Their perceptions of community contribution and quality of employer matter in policy debate. WRA is investing in accurate polling, surveys and studies to determine public perception and misconceptions. Eighty-three percent of our state restaurants have fewer than 20 employees, and could be considered small businesses that can’t afford a PR battle on their own. WRA has hired staff, created a plan and is developing ways to

Anthony Anton, president and CEO

educate a more demanding public about the importance of their local restaurant.

Putting our best players on the field – you.

In all our research, we found one big answer that we already knew. You are the best advocate of your business. WRA is moving and increasing resources to make it easier for you to have a say in your own destiny. We are actively recruiting 300 members to be political ambassadors and training them. We have found restaurateurs who are willing to be the voice of the industry on video, in the press and in city council hearings. We are providing professional staff to help restaurants communicate in the most articulate way possible and find resources. We know the best messenger is you and we are going to make you a success. We’ve crafted great messages, based on real stories and we are here to help you deliver those.

Preparing for the long game.

We are all in! $15 Now didn’t appear overnight, but was part of many tactical moves a decade ago to make it appear that way. Today we are planning for your future in the years to come. Yesterday’s WRA is not big enough, or strong enough, to battle big labor. Tomorrow’s WRA needs to be. We have invested and continue to invest in additional staff, media outreach, government affairs and other resources. We are setting out strategies to ensure that you are protected as well as any union member. We are recruiting leaders in our industry who can also be leaders in government. And we are changing our thinking to focus on long-term industry health over short-term political wins and losses.

We return to this place out west – the tumbleweed blows across an empty street – a long camera angle shows the back of one gunslinger and the outline of the other on the far end of town. As this story unfolds and we continue to advocate for you, the WRA will keep you well informed of all we are doing. We hope to see you on January 26 at Hill Climb as we continue to tell our story about how restaurants serve our communities. ▪

January 2015 | 9

Washington state legislative session 2015

By Bruce Beckett, WRA Government Affairs Director

As a new legislative session approaches, most of you are used to me writing something like, “The upcoming session is unique and the decisions lawmakers will make could dramatically impact your business.” I then typically end these articles with a plea to help us represent you by being involved.

Why do I always make the same argument?

Because it’s true!

In Washington’s system, we have a citizen legislature.

This means lawmakers serve on a part time basis, and the Legislature does not work full-time (thankfully). This also means each session is unique. There are new members of the Legislature, new issues to address and lingering challenges carrying over from previous years.

This session is shaping up to be one of the most challenging in many years; perhaps more difficult than during the recession. And we need our members to be involved to help guide our work.

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Oftentimes, legislators can forget what it’s like to run a business. They also don’t see everything that you do. As you have probably seen in our Hill Climb materials, we want to tell lawmakers that restaurants serve their communities.

Local restaurants provide useful training and career opportunities. And most restaurants are small businesses. These are facts that legislators need to hear from you!

Here are some ways you can get involved: Provide your expertise on our weekly Government Affairs Committee calls.

Hearing from you helps our Government Affairs team serve you better during the legislative session.

Attend Hill Climb and Taste Our Best.

These great events, on January 26, provide terrific opportunities for you to meet with legislators, in Olympia, and let them know the challenges you face as a restaurant operator.

Contact your legislator when we need your assistance.

Sometimes, when important legislation is under consideration, we will ask you to contact your legislator in support of, or in opposition to, a particular measure.

Please respond when we send you these alerts.

Legislators really do listen to their constituents.

Thank you for all you do to help us help you succeed. It is an honor to serve our members at the WRA. ▪

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2015 session outlook The WRA Government Affairs team fights for restaurants to have a voice on laws that impact them. In order for us to keep you as up-to-date as possible, we annually craft this review of what to expect in the upcoming session. This review should give you insight into what your Government Affairs team is doing and what we face as an industry.

The 2015 legislative session is shaping up to be one of the most interesting to date. It is considered a “long session” and is scheduled for 105 days beginning January 12. Many have suggested that the regular session will be followed by special sessions that could put the timeline into the summer months.

Another aspect of this session that is especially interesting is due to the results from the November election. The 2014 election was characterized by record low turnout and little “top of ballot” interest. However, for business associations like the WRA, the result was mostly positive.

We were encouraged by the results of the elections as the outcomes align with our priorities and goals set by the WRA Political Action Committee.

The make-up of the 2015 Legislature is especially important because this session will determine the budget for the next biennia. Gov. Jay Inslee has proposed ways to find $1 billion in new revenue – usually found in taxes. In the past, the governor has championed raising new revenues by closing “tax loopholes,” advocated for dramatic climate change policies through carbon taxes and pushed for increased spending for social services beyond education. Additionally, this budget must address the Washington State Supreme Court’s ruling for dramatically 12 | warestaurant.org

MEET THE GOVERNMENT AFFAIRS TEAM Bruce Beckett, Government Affairs Director Bruce Beckett is the head of the WRA’s Government Affairs team, providing overall leadership, strategic direction to our lobbyists and keeping WRA members fully informed and engaged in the development of the WRA’s positions and tactics. Bruce came to the WRA, in 2009, with more than 27 years of public affairs experience, including 17 years leading Weyerhaeuser’s western region and Washington state public affairs teams.

Bruce also served as director of public affairs for the Cascade Land Conservancy’s $20 million Cascade Agenda, and has served on the boards of numerous business organizations.

higher levels of investment in education. Therefore, this Legislature will decide what your business faces for the next two years.

Composition of the Legislature Senate In the Washington State Senate, there are 49 members; of those members, 26 are members of the Majority Coalition Caucus (MCC), a unique partnership of 25 Republicans and one Democrat. The other side of the partisan aisle consists of 23 Democrats. For the past two years, the Senate has been led by the MCC. In 2012, the MCC held only a one-vote margin in the Senate; in 2013, the MCC gained one additional seat with the election of Sen. Jan Angel, R-Port Orchard, in the 26th Legislative District special election.

During the 2014 elections, millions of dollars from out-of-

state interests and others poured into campaigns to defeat incumbent MCC members in an effort to revert control of the Senate back to Democrats. Their efforts, however, failed. Every incumbent member of the MCC prevailed in their re-election bids; and Republicans gained onedistrict with the election of former Democratic Rep. Mark Miloscia of Federal Way. Further, despite enormous financial investment to defeat him, long time Sen. Tim Sheldon, D-Potlatch, succeeded in his bid for re-election. Sheldon, one of two Democrats that joined with Republicans to form the MCC, will continue serving with the MCC, giving the MCC its two vote margin.

While the outcome of every Senate race had an impact on the control of the Senate, perhaps the most hotly contested seat was that of Sen. Andy Hill, R-Redmond.

Hill, who led the development of the state’s current two

MEET THE GOVERNMENT AFFAIRS TEAM Julia Gorton, Government Affairs Manager A member of our Government Affairs team since 2007, Julia Gorton is the No. 1 resource for the WRA’s ongoing discussion with the Liquor Control Board on liquor pricing for restaurants. She is the point person on several issues including the continued debate surrounding the state’s evolving liquor privatization issue, tourism and the Retrospective Rating program (Retro). Among her many accomplishments, Julia grew and strengthened the WRA’s Grassroots Network and established the WRA’s Ambassador training program.

January 2015 | 13

year budget as chair of the Ways and Means Committee, comes from a Democratic leaning district, and faced a well respected and financed opponent. Nonetheless, Hill prevailed in his re-election with nearly 53 percent of the vote – and will again lead the development of the state’s two year budget.

House of Representatives In the House, there are 98 members; of those members, 51 are Democrats and 47 are Republicans. For more than a decade, Democrats, under the leadership of Speaker Frank Chopp, D-Seattle, have held control of the House.

They have been accustomed to winning votes by large majorities.

However, in the last three election cycles, Republicans have been gaining a few seats each year, and, to the surprise of many, gained four seats in recent election. The Democrats are now in control by a razor thin margin of two votes. Accordingly, that narrow margin will force both parties to work together to resolve controversial policy issues – Republicans will have a much greater role than in the recent past.

What does the 2015 Legislature face?

The Budget The primary, and overriding obligation of the 2015 Legislature is to adopt a 2015-2017 biennial operating and capital budget. In other words, it’s a major budget writing session – and that budget must be adopted before July 1.

The state’s operating and capital budget sets the policy parameters for nearly every issue impacting the state. It’s

MEET THE GOVERNMENT AFFAIRS TEAM STEPHANIE DAVENPORT, COMMUNICATIONS ADVOCACY MANAGER Stephanie Davenport is responsible for marketing, public relations and communications on behalf of our Government Affairs team to external media and WRA members. She also acts as a liaison between Government Affairs, Communications and WRA President/CEO Anthony Anton. Stephanie originally worked with the WRA during 2004-05, rejoining in April 2014. Additionally, she has worked in communications with the Washington State House of Representatives and the American Institute of Architects, and as a legislative liaison for the Washington Retail Association.

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not an easy task. And Washington’s constitution requires a balanced budget, so lawmakers cannot escape their obligations by borrowing money to balance the budget.

During the recession, lawmakers were constantly looking for ways to trim state spending because state revenues were declining; however, as the recovery has slowly taken hold, state revenues have been increasing. One would think that budgeting in that environment would be easier.

But lawmakers enter 2015 with something that no other state has ever faced; an order from the Washington State Supreme Court to dramatically increase funding for K-12 education by 2018. The court was not impressed with the progress to increase funding by $1 billion in the current budget, and, in a move that many say goes beyond the separation of powers, issued an order holding the Legislature in contempt for failure to adequately fund education. While the separation of powers argument is interesting, both Republicans and Democrats have expressed their commitment to meet the court’s demands. No one can really state the exact number, but most believe meeting the court’s expectation will require in excess of $2 billion into education this biennium.

Adding to the budget challenges are two additional forces. First, the narrow passage of I-1351 regarding class size reduction for K-12 will add at least $1.7 billion more in required spending. Given the very narrow passage of this measure by voters, it remains to be seen whether lawmakers will suspend the initiative with a two thirds vote. The governor has also negotiated an agreement with the public employees unions granting a 4.8 percent pay increase in each of the next two years – an agreement that costs the state nearly $600 million. Neither one of these

MEET THE GOVERNMENT AFFAIRS TEAM MORGAN HICKEL, LOCAL GOVERNMENT COORDINATOR Morgan Hickel joined the WRA in January 2014, quickly establishing herself as a key asset in the Seattle minimum wage debate. Within months, she built the most organized and effective grassroots program of any industry in Seattle. Morgan also works with the Seattle Restaurant Alliance. Prior to joining the WRA, Morgan managed the Stop Higher Utility Taxes Campaign Committee, worked with the American Frozen Foods Institute, and interned at the Tacoma-Pierce County and Federal Way chambers of commerce.

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budget busters are funded with current revenues.

So the debate will be over “how” to increase funding; not should funding be increased. House Democrats and the governor have proposed closing up to $1.4 billion in “tax loopholes,” instituting a capital gains tax, increases to property taxes and an increase in the B&O tax. The MCC continues to work toward re-prioritizing current state spending and re-directing current revenue increases generated though economic growth towards education. In the current biennium, the impasse over how to increase funding for education entailed special sessions until the end of June to resolve. Some believe the same scenario could be before us in 2015.

Transportation funding During the last four years, lawmakers have been unable to resolve differences over how, and under what parameters, to increase investments in both maintaining and upgrading Washington’s transportation infrastructure.

Entering the session, it’s an “open book” on whether lawmakers will determine that taxes should increase to fund transportation, and the outcome may be determined by how the need to fund education is resolved. The WRA will need to once again be vigilant regarding proposals to give local governments the right to impose a street utility tax – a tax that is based on the “theoretical” trips generated by a restaurant.

Labor and workforce issues Given the split Legislature, it is doubtful that any controversial workers’ compensation, unemployment insurance or general labor legislation will pass this

legislative session. The state departments of Labor and Industries and Employment Security both have agencyrequest legislation to make modest modifications, but none of the bills are controversial.

The employer community will continue to advance reforms to the workers’ compensation system to reduce costs, resolve claims more quickly and get people back to work. The Unemployment Insurance Trust Fund has a healthy reserve, and there may be attempts to raid some of this money for other purposes, which the WRA and other business organizations will vehemently oppose.

There will be a great deal of work on paid family sick and safe leave. The House passed a mandatory paid sick leave bill last session, but it died in the Senate. There may be openness from both chambers to discuss a reasonable compromise on this issue, similar to California, but it will largely depend on whether the labor community is willing to compromise a bit.

Similarly, with minimum wage, there’s interest in the Senate about a myriad of issues – total compensation, (phase-in approach) preemption of local governments, regionally-established wages – but again, it will depend on whether the labor community is willing to settle for something less than their ideal.

We expect to see labor proposals related to gender pay equity (paycheck fairness), independent contractors, paid vacation leave, workers’ compensation benefits paid during appeal and an assortment of other proposals. The union representing the state employees will be the most active to protect pensions, benefits and COLAs, all of which have significant implications to the 2015-17 operating budget.

MEET THE GOVERNMENT AFFAIRS TEAM DENNY ELIASON, CONTRACT LOBBYIST Denny Eliason is one Olympia’s most accomplished lobbyists. The founder of Alliances Northwest, a business-oriented government relations firm, Denny has worked on such issues as banking, energy, employment, environment, finance, growth, management, health care, insurance, pharmaceuticals, retail, securities, taxes and transportation. Puget Sound Energy, Nintendo and Amazon.com are among Alliances Northwest’s other clients. One of Denny’s great lobbying successes was the B&O tax credit on pop syrup taxes, saving restaurants an average of $3,000 annually.

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MEET THE GOVERNMENT AFFAIRS TEAM KIM CLAUSON, CONTRACT LOBBYIST Kim is a partner with Denny Eliason at Alliances Northwest. She primarily focuses on workplace and labor issues. Kim has landed restaurateurs some of their biggest wins in the past five years including areas like workers’ compensation, gift certificates and pushing the obesity prevention bill past the governor’s desk. Kim has defended WRA members against a series of bills that, if enacted, would have increased the overall benefits of unemployment insurances, thereby leading to higher taxes for employers.

WRA priority issues

A comprehensive policy must include a teen and/or

Annually, with the guidance from the WRA Board of Directors and Government Affairs Committee, the GA team decides on our priority issues for the session.

Although these issues are not the only things the team will work on, they will receive a focused amount of effort.

Minimum wage Minimum wage and employer regulation tops the list.

With the adoption of minimum wage and paid sick leave regulations in SeaTac and Seattle, and movement towards ordinances in Tacoma, WRA’s GA team has been exploring options for comprehensive wage/benefit policies that adhere to the following principles:

Any increase in the minimum wage must be phased in; Forms of “total compensation,” such as tips, medical

training wage element; No exemptions or businesses are excluded (However, consideration of regional cost of living differences may be warranted.); City by city regulation of wages and benefits will lead to an overly complex system for Washington businesses to operate; hence authority should reside with the state with parameters for local governments.

Liquor fees Elimination of the 17 percent fee imposed by the Liquor Control Board (LCB) on the sale of spirits from retailers to restaurants.

Following passage of I-1183, the LCB imposed the 17 percent fee on sales from retailers to restaurants without the benefit of public comment or small business impact analysis.

benefits, education payments, etc., must be included;

MEET THE GOVERNMENT AFFAIRS TEAM TRENT HOUSE, CONTRACT LOBBYIST Trent House brings 18 years of government relations experience to the WRA. He is an expert in health care, environmental policy, workers’ compensation, unemployment insurance and environmental policy. From 2005 to 2008, Tent was director of Government Relations for the WRA. He has also directed Boeing’s state government relations program, headed the Association of Washington Healthcare Plans and worked as a lobbyist for the Association of Washington Business (AWB). In 2010, he received AWB’s Heavy Lifter Award for going above and beyond the call as a lobbyist the call for the business community.

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The Legislature has considered this issue in previous

sessions, and in 2014 the Senate passed legislation eliminating the fee. Despite a small fiscal note, the bill failed in the end due to an agreement that no bills impacting revenue, pro or con, would be enacted.

WRA will again pursue elimination of the fee in 2015.

Other pressing issues

Protect WRA members from tax or fee increases that

uniquely impact the hospitality sector – including any efforts to repeal the B&O tax credit for pop syrup.

Work with the Liquor Control Board to modernize their licensing program and to update the authority of enforcement officers in a manner that works for spirits, beer and wine licensees.

Work with lawmakers on options to modernize the current pull tab system to electronic gaming if legislators are interested in pursuing this option to increase revenues.

Protect the ability of WRA to offer a competitive retrospective rating program for our members.

For the first time since the passage of I-1183, there will be a vacancies on the LCB. This year, the governor will need to fill two vacancies at the Washington State Liquor Control Board. Chair Sharon Foster’s term six year term expires January 15, and another vacancy was created by LCB Member Chris Marr’s departure. The WRA will be providing input on the appointment process.

How you can get involved!

The WRA GA team is dependent on our members to provide guidance and input on these, and other issues that arise, during the session. At times the legislative process moves very fast; it’s essential to have members like you that are engaged and willing to voice their opinions.

You can join the weekly GAC conference calls every Wednesday, 10-11 a.m., starting January 21. If you have any questions or would like to participate, you may contact the WRA’s Shannon Garland at (360) 956-7279, ext. 139.

And, please join us for Hill Climb and Taste Our Best on January 26! With the minimum wage and liquor issues squarely before the Legislature, it’s crucial that you come and tell your story about your business, your employees and your contribution to the community. ▪

RESTAURANTS SERVE. PEOPLE. CAREERS. Communities.

MEET THE GOVERNMENT AFFAIRS TEAM SHANNON GARLAND, EXECUTIVE ASSISTANT Shannon Garland is an essential part of our Government Affairs team. Shannon keeps the department running and organized.

Shannon holds a B.S. degree in business with a focus on office administration from Pensacola Christian College. She has worked in government affairs since 1996, when she was first hired by the Association of Washington Business, where she worked until 2007, when she moved to the Washington State Farm Bureau. She has worked at the WRA since 2011.

18 | warestaurant.org

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January 2015 | 19

Multiple stakeholders unveil Restaurant Success Gov. Jay Inslee, King County Executive Dow Constantine, and Mayor Ed Murray joined the Washington Restaurant Association and restaurant entrepreneurs last month, in Seattle’s Capitol Hill, to announce the launch of Restaurant Success, a new initiative to provide better service and support for prospective restaurateurs.

“I’m excited about this effort because opening a restaurant is a common entry point into the economic mainstream for communities of color, and our business assistance support will be working to reach a broad spectrum of business owners,” said Murray. “We also expect to use this initiative’s approach to shape how we break down silos within government and make it simpler for businesses in Seattle to start and grow.

We’re committed to helping businesses succeed here.”

Washington restaurants employ more than 222,900 people statewide with more than 85,905 jobs in King and Snohomish counties. The majority of restaurateurs employ fewer than 20 people. State, county and city leaders launched Restaurant Success, saying that supporting a thriving restaurant industry will provide needed job and career opportunities and make our cities better places to live.

“Restaurant Success is an important milestone in our ongoing efforts to improve the regulatory environment for startups and existing businesses across the state,” said Inslee. “Our partnership with Seattle, King County and the restaurant industry has made it easier for prospective local restaurateurs to navigate the permitting and licensing requirements so they can do what they do best: cook delicious food and create jobs. This is an effort we’ll soon be taking to Spokane and Spokane Valley so those cities 20 | warestaurant.org

can streamline their regulatory processes and attract new restaurants.”

Restaurant Success is a publicprivate partnership between the State of Washington, City of Seattle, King County and the Washington Restaurant Association. The initiative was developed in collaboration with more than 17 agencies and organizations. It includes:

A comprehensive, one-

stop online guide with city, county and state permitting and licensing information and tools to help restaurateurs easily navigate the process.

Dedicated customer service and technical assistance in the City of Seattle’s Office of Economic Development. led by Restaurant Advocate Jennifer Tam. Ongoing regulatory reform and process improvements across city, county and state agencies that interact with restaurant entrepreneurs.

Restaurants have tight margins, and are often among the first to feel the impact of shifts in the economy. More than 50 percent of restaurants close or change hands every five years. This is also an industry where there are a higher number of immigrant and minority entrepreneurs.

The restaurant advocate’s role is to provide direct business support and navigational help to restaurant entrepreneurs as they start and operate restaurants in Seattle. In addition to conducting outreach to businesses, specifically ethnic business owners, the restaurant advocate will work with partners to improve policies or programs across the publicprivate partnership.

Restaurant Success is located at www.growseattle.com/ restaurant. ▪

Restaurants get involved

By Paul Schlienz, Managing Editor

Like it or not, restaurant operators can’t get away from public policy. Every day they face health and safety regulations, minimum wage laws, taxes and other regulations that govern nearly every aspect of how they conduct business. While they didn’t go into business to deal with the political world, they ignore it at their own peril.

Although public policy issues greatly impact restaurant operators’ ability to do business, many restaurateurs are reluctant to get involved in the nitty-gritty of politics and lobbying.

“There’s probably a real good reason why a lot of restaurateurs can’t be involved in political races or being candidates – we work seven days a week,” said Monique Trudnowski, co-owner of Tacoma’s Adriatic Grill, who ran for a seat in the Washington State House of Representatives during 2014.

Nevertheless, Trudnowski and other restaurateurs have taken the plunge and gotten involved in public policy debates, whether that involvement means running for office, as Trudnowski did, or simply speaking out on issues of concern to restaurateurs.

Part of the solution “Lawmaking will happen whether we like it or not, and if you’re not part of the solution, we will have to react to what’s been done,” said Jasmine Donovan, vice president and director of communication at Dick’s Drive-In. Dick’s has a long tradition of public involvement and a unique philosophy of based on four responsibilities – the responsibility of a business to itself to make a profit, the responsibility to treat employees and suppliers fairly, the responsibility to help the immediate community through charitable activities and, finally, the responsibility to the common good, to help build a sustainable community.

“This is civilization building – the next step of investing in the community by being part of the policymaking,” said Donovan.

When the $15 minimum wage debate gathered steam in Seattle, in early 2014, Donovan became an important voice for speaking out to the public and media, effectively communicating restaurants’ concerns over this issue.

“At first, we weren’t sure if we should get involved in the minimum wage debate, but we felt it was our responsibility – people were asking us to speak out,” said Donovan. “By doing this, I think we helped change the conversation.”

Effective ambassadors The WRA has learned through extensive polling and research that the best messengers on these issues are restaurant operators themselves.

“We found that people related to the local restaurants and servers they saw every day,” said Stephanie Davenport, the WRA’s communications advocacy manager, who runs a media training program for restaurant owners that prepares them to effectively communicate with the media and the general public.

Davenport urges restaurateurs to attend these sessions, which are being held in various locations around the state.

“Restaurateurs are often very busy people who aren’t used to being in front of the camera or the microphone, so a little extra training goes a long way,” said Davenport. “We can help them talk about what goes on in their businesses in a way that people can relate to, bring them put of their shells a little bit. Once we’ve done that, hopefully, these same restaurateurs will be our ambassadors to the media, legislators and local government.”

Davenport stressed the importance of communicating with state legislators, and recommended the WRA’s Hill Climb, to be held on January 26, as an especially good opportunity to meet and develop relationships with state lawmakers.

“It’s very important for legislators to know that when they’re making laws that impact restaurants, they’re also making laws that impact the families and communities that are touched by these businesses,” Davenport concluded. ▪ January 2015 | 21

This is our Member Spotlight section. Are you a member with a story you want told or a celebration to be shared? Email us at stephanied@warestaurant.org.

MEMBER SPOTLIGHT

Member Spotlight: Cloverleaf Pizza

By Andy Cook, Contributing Editor I had the pleasure of getting to know Debbie Brese recently when she participated in the WRA’s first media training workshop. Debbie is the owner of Cloverleaf Pizza on Tacoma’s 6th Avenue, a local fixture since 1950.

The atmosphere is immediately warm and welcoming. We were immediately transported back to the classic pizzerias of our youth, except for one thing: This pizza is in a class above and beyond anything we’ve ever had.

For Debbie, restaurant ownership is a labor of love. She recognizes it’s more than a living, it’s a lifestyle. I sat down with Debbie at the Cloverleaf to discuss the hot topics of regulatory reform and emerging laws. We talked at length about the challenges we face when restaurants are painted with the same brush as other small businesses.

External events effect all businesses. Offices and retail outlets adapt to holidays, local sporting events and seasonal vacations, among other things. But restaurants are affected differently by such occasions as birthdays, anniversaries and retirement parties. Restaurants might even have actual busloads of customers dropped on them out of the blue – it’s a good problem to have, but it does come with its own unique challenges.

Running a restaurant is about more than just running the numbers of a business; it’s nurturing a community. It’s not a 9-5 office, retail or a landscaping business, but restaurants are thrown in the same pot as every other kind of business with regulations like the Affordable Care Act (ACA), minimum wage, and Tacoma’s emerging Sick Leave Act. Debbie has opinions on all of these topics, and she is not at all shy about sharing them.

Tacoma’s Sick Leave Act: “In this industry, we’ve always navigated around this issue through cooperation and shift trading. These are details are seemingly foreign to the policymakers; we do care and we do address these needs.

Imposing a structure or regulation that makes sense in, say, an office setting translates into an obstacle for us.”

22 | warestaurant.org

Affordable Care Act: “I’ve always strived to offer insurance for my staff.

For years, I had a plan with a major provider and paid 50 percent of the premiums, and employees could opt out. Now with the ACA, the plan we’ve used for years cancelled us. The details of insurance requirements that my staff and I were happy with were no longer valid under the law. I currently have 28 employees. Only a handful of them are full-time – all back-of-house. If I could offer them a new plan, it would be much more expensive, and they would not be allowed to seek out insurance elsewhere for less. It doesn’t seem fair” Minimum wage: On this topic we reminisced of the good old days when the minimum wage was south of five dollars. Yes, the tipped employees would come out slightly ahead in earning, but there was a sense of equity. Back-ofthe-house could be earning 10-15 bucks an hour. While this is only an example, the reality remains that with the profit margins of restaurants being as low as they are, when the minimum wage rises across the board, the opportunities to offer a higher, well-deserved wage to the back-of-the-house producers shrink significantly.

“I’d pay my cooks 25 bucks an hour if I could, but I can’t,” said Debbie.

WRA membership: “Being a member of the WRA is more rewarding when you participate. Sure you can get your money’s worth in discounts and programs, but as a member, you’re part of a larger community that is aligned with your goals and needs. Choices are being made that impact us; individually, we are nearly silent, together we can be a majority to be heard.”

Great advice. Thank you, Debbie. ▪ To learn more about the WRA’s media training workshop contact Stephanie Davenport, stephanied@warestaurant.org.

The Cloverleaf 6430 6th Avenue Tacoma, WA 98406 253.565.1111 http://www.cloverleafpizza.com/

Pre and post-election, state and U.S. party composition Washington State Senate Party

As of Nov. 3, 2014

After Nov. 4, 2014

Democratic

25

24

Republican

24

25

Total

49

49

Washington State House of Representatives Party

As of Nov. 3, 2014

After Nov. 4, 2014

Democratic

54

50

Republican

43

47

Vacancy

1

1

98

98

Total

Congressional pre-election Senate Partisan Balance Party

113th Congress

Democratic

53

Republican

45

Independent

2

Total

100 House Partisan Balance

Party

113th Congress

Democratic

201

Republican

234

Vacancies

0

Total

435

Congressional post-election U.S. Senate

U.S. House

Democratic

44

Democratic

188

Republican

53

Republican

244

Independent

2

Independent

0

Total

432

Undecided

3

Total Undecided

99 1

http://wra.cc/ballotpedia

January 2015 | 23

Helping restaurants build opportunity

By Lyle Hildahl, WRA Education Foundation Director

WRA Director of Government Affairs Bruce Beckett participated in a work session in the House Labor & Workforce Development Committee.

The work session focused on wage laws, economic impacts and a report titled The Self-Sufficiency Standard for Washington State 2014. The WRA gave insightful testimony, reminding legislators that our industry employs 222,900 people and is the largest private employer in the Washington.

We took this opportunity to tell legislators about the critical role restaurants play in our economy as the preeminent training ground for America’s workforce. Additionally, the WRA helped educate members about our industry with some often overlooked missed facts:

Our industry is largely comprised of small businesses,

with 82 percent of Washington’s restaurants employing 20 or fewer employees.

Restaurants have tight margins, and are often among the first to feel the impact of shifts in the economy.

More than 50 percent of restaurants close or change hands every five years.

The hospitality sector has a higher number of immigrant and minority entrepreneurs than most sectors.

Under the new Federal Workforce Innovation and Opportunity Act, WIOA, industry, education, government, economic development, and community organizations must come together to assure education and training programs meet the skill requirements for area employers.

The Opportunity Act directs the workforce system to help job seekers and workers access employment, education, training, and services necessary to prosper in the labor market. The measure makes employer needs for skilled workers the highest priority.

Your Education Foundation is motivated to insure that current training programs like ProStart and evolving programs like the career ladder project will meet and exceed the employer demands for finding qualified employees to enter the hospitality workforce.

24 | warestaurant.org

I recently was working with a committee in Chicago on curriculum development for the ProStart program. This two year high school program provides curriculum focused on culinary foundations, restaurant management and workplace experience. Educators, chefs, owner operators and managers are working together to insure the curriculum reflects current information and knowledge requirements and meets or exceeds the training needs for cooks, servers, shift leaders and future managers.

We are partnering with DSHS and ESD to develop the career ladder training program that identifies skills needed for jobs from entry level all the way to $50K per year jobs, and a training program that includes classroom and on the job experience at multiple levels. We believe this innovative project falls right in line with the expected outcomes of the Opportunity Act. Finally, I want to update you on a project that is very important to me. Sometimes people make bad decisions, especially when they are young and invincible. Sometime those decisions land the individual in jail. The Green Hill School is a maximum security juvenile detention center.

We are attempting to establish a ProStart training program in the high school within the center. We are partnering with the Pacific Mountain Workforce Council and a private nonprofit organization to secure the necessary funding to make this work. As taxpayers, we pay more for corrections than we do for education and healthcare. Wouldn’t it be nice if we could change the cycle of (in and out of jail) to earning an income and contributing to the growth of our economy? These graduates would have a job for six months after release. The problem is, we haven’t been able to secure enough funds to kick off the project. We will keep working at it.

It is our goal to provide training and education programs that build a skillful knowledgeable workforce for your business. ▪

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INDUSTRY CALENDAR January/February Training Jan. 19

ServSafe® Manager, Kent

Feb. 3

ServSafe® Manager, Seattle

Feb. 5

ServSafe® Manager, Olympia

Feb. 9

ServSafe® Manager, Everett

Feb. 10

ServSafe® Manager, Kent

Meetings Jan. 20

Finance Committee Meeting

Jan. 21

Weekly GAC conference call 10 a.m. to 11 a.m.

Jan. 27

WRA Board Meeting

Jan. 28

WRA EF Board Meeting

Jan. 28

MSC Board Meeting

Events Jan. 26

Hill Climb & Taste Our Best Legislative Reception

NEW RESTAURANTS 12 Hawks Bar & Grill, Ephrata 1 800 SUSHI, Bellevue 95 Slide Sports Bar, Seattle Amaro Bistro, Bothell Arista Pasta, Puyallup Best Western, Arlington & Covington Bookwalter Winery LLC, Richland Buck’s American Café, Everett Bullpen Sports Bar & Grill, Sedro Woolley Cafe Vincero, Tacoma Castle Event Catering, Richland Cole’s Fine Foods, Spokane Collector’s Choice Restaurant, Snohomish Corretto Trattoria & Bar, Seattle Dickey’s Barbecue Pit, Port Orchard Dickey’s Barbecue Pit, Spokane Dixie’s Home Cookin, Sumner Don Juan’s Mexican Kitchen, Tenino Durkin’s Liquor Bar, Spokane Five Mile Heights Pizza, Spokane Fujiyama Japanese Steakhouse, Olympia Good Fortune Enterpirses Northwest Inc., Issaquah Greek House, The, Burien Island Cafe II, Oak Harbor Island Pizzeria, Tacoma Jeremy’s Farm to Table Restaurant, Chehalis Jersey Mikes, Bellevue La Brisa Restaurant, Chelan Lolli’s Broiler & Pub, Federal Way Love By The Slice, Tacoma Maple Valley Bar & Grill, Maple Valley Mi Mexico, Bellingham Nathan Vaughn, McAlester Palace Tukwila, Tukwila Palmers East, Redmond Pecado Bueno, Seattle Petit Chat Village Bakery, Spokane

26 | warestaurant.org

NEW RESTAURANTS (Continued) Pho Cyclo Café, Seattle Pita Pit, The, Tacoma Restaurant Marche, Bainbridge Island Saranac Public House, Spokane Sedro Woolley Eagles #2069, Sedro Woolley Sen Japanese Gourmet Deli, Kirkland

Stacks, Federal Way Stimpy’s Sports Bar and Grill, Kent The Hoosegaw, Vancouver Trapper’s Sushi, Sumner Triumph Bar, Seattle Zip’s Drive In, Spokane

NEW ALLIED MEMBERS Curtis Law Group mbroggel@curtislaw-pllc.com Marisa Broggel 3400 188th St SW Ste 565 Lynnwood, WA 98037 4773 425.409.2745 www.curtislaw-pllc.com

Michael B. Crane & Associates, PS Michael Crane m1134@aol.com 1155 N State St Suite 420 Bellingham, WA 98225 5024 360.734.4700 http://www.mbcrane.com

We provide expert legal representation for liquor licensed businesses and permit holders and businesses holding tobacco retail licenses issued by Washington State. We specialize in helping restaurant, bar and nightclub owners and employees who need to appeal liquor license violations issued by the Washington State Liquor Control Board, and are experienced in fighting enforcement violations for business owners facing monetary penalties, fines, and license suspensions, to keep your licensing record clean.

A full service Bookkeeping and Accounting firm serving clients throughout the Bellingham, Washington area, dedicated to providing our clients with professional, personalized services and guidance in a wide range of financial and business needs.

Farmstr janelle@farmstr.com Janelle Maiocco 500 Yale Ave N Seattle, WA 98109 5680 206.787.2220 www.farmstr.com Farmstr is an online marketplace connecting you to local farmers, fishers and ranchers. All producers meet quality standards including organic practices, non GMO, sustainable, grass fed.

GraTrack LLC Craig Clark info@gratrack.com 2522 North Proctor Street Dept 301 Tacoma, WA 98406 5338 571.357.4728 www.gratrack.com GraTrack provides tip management software to the restaurant industry. The daily tasks required to manage employee tip income have become very burdensome as well as risky for most restaurants.

GraTrack places the management of the tip program into the hands of the employees.

Lovsted Worthington Insurance Wendy Pyle wendy@lovstedworthington.com 424 Third Ave W Seattle, WA 98119 4022 206.838.1026 www.lovstedworthington.com Lovsted Worthington Insurance is the largest independently owned brokerage in Seattle. We pride ourselves in understanding the unique exposures faced by companies in all areas of the hospitality industry, from dirt to dinner table.

Pointe Pest Control Ray Vanderlouw r.vanderlouw@pointepest.com 1324 N Liberty Lake Rd #226 Liberty Lake, WA 99019 8523 509.590.4200 www.pointepest.com We provide pest control and eradication services for homes and businesses.

Super Charge Marketing Matt Cail matt@superchargemarketing.com 19730 64th Ave W Ste 104 Lynnwood, WA 98036 5963 425.247.1870 www.superchargemarketing.com Providing premier digital marketing services to Northwest businesses. Get a great website, or improve the one you have, ensuring that it is mobile friendly and meets the latest design standards. Get a professionally managed presence on sites like Facebook, Twitter, and Google+. March up the local search rankings to increase your online exposure and increase foot traffic into your location. Get a high definition, online video to SHOW exactly how great your restaurant business is.

Trade On Eric Shaw eric.shaw@tradeonapp.com 1200 Westlake Ave N Ste 1006 Seattle, WA 98109 3529 206.748.1291 www.tradeonapp.com Trade On provides a dynamic customer feedback and incentive tool for restaurants and small businesses. 30% off retail price plans.

Your menu is fabulous, your staff is the best‌ protect your reputation.

Establishments are 82% less likely to experience critical violations during a health inspection when they have staff certified in advanced food safety.

Protect your reputation. Register your staff for an online course or an instructor led class at wraef.org!

The Washington Restaurant Association Education Foundation is proud to offer ServSafe Advanced Food Safety, a nationally accredited program that satisfies requirements for advanced food safety training nationwide.

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12/18/2014 1:23:39 PM

Marketplace EMPLOYEE BACKGROUND CHECK

WHY DO CUSTOMERS NOT RETURN?

A reported $4 billion is lost annually to embezzlement and a violent employee incident costs employers, on average, an incredible $250,000. According to Airfactz Screening & Reporting Services, a WRA endorsed employee background screening 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. Protect yourself with an employee background screening for a mere $19 investment for peace of mind with Airfactz.

Visit warestaurant.org for more information.

Customers go to a restaurant for food, but they will return if offered great service. On an average year a restaurant will experience a 10-30% loss in customer retention. 80% of those customers leave a restaurant never to return based on a single occurrence of poor customer service. Our mystery shopping services allow you to train your staff to provide “consistency of service.” We can provide you and your staff a customized program that will help you to succeed to the next level. We are an Accredited Member of the BBB and WRA. 509-327-7373 * info@selectinfoservices.com www.selectinfoservices.com

MEDICAL AND DENTAL COVERAGE The Washington Restaurant Association designed a health care plan just for WRA members. The Hospitality Industry Health Insurance Trust (H.I.H.I.T.) enables business owners in the hospitality industry to provide affordable healthcare benefits statewide. Contact Amber Hahn at 877.892.9203 for a FREE quote.

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28 | warestaurant.org

Ask the Expert | Restaurant Profit Coach

Layering: The key to boosting your lunch sales

By Rick Braa, CHAE

Q:

Our restaurant has reasonable lunch sales, but some online reviewers complain that we’re expensive. What is the best way of changing the guests’ perception to improve lunch traffic?

A:

Your decision to address your guests’ input is wise.

Be encouraged the guest took the time to complain; now you can make necessary changes. What the consumer is expressing is a lack of consistency between pricing and the value perceived by the guest.

the menu. The restaurant is in downtown Seattle, so be sure to adjust pricing appropriately to your market. Lunch entrée prices range from $8.95 for sushi to $18.95 for a steak salad.

The menu below illustrates a section of specials that have been bundled.

Rarely will one complain about price if the value matches what the guest believes the product is worth.

Take the power of a brand. In a supermarket, you’ll find one product next to another with identical ingredients often made by the same company. One is a “private label” the other is a trusted consumer products brand.

Consumers have gotten wiser, but most still choose a brand over a private label more often because the perceived value is higher though the product is exactly the same. What can be borrowed from retailers is the secret of differentiation in the mind of the consumer. We buy brands because we trust them and they provide a positive assurance to meet our need or want. In the restaurant equation, we buy because we want to “feel” a certain way: satisfied, treated, spoiled, full, etc., while having our needs met. Your menu is a direct line of generating that emotion and delivering a message of value. Remember, value has more to do with perception than price, and the best way to improve the price/value perception is to layer the pricing on your menu.

Key number one: Provide extra value with an additional offering, not discounting— Notice that the Specials section provides smaller portion sizes, but more choice for the guest. Chosen separately at full portion and price, the most expensive combination is $18.90, making the special nearly $10.00 cheaper in the mind of the consumer.

Layering the pricing on a menu has dramatic results. In this example of successful layering at a Seattle restaurant, lunch sales are increased by double digits and have been since addressing the price/value perception issue when the economy crashed. The idea is to layer pricing from bottom to top and provide different price choices. This allows the consumer the choice of a quick, tasty, inexpensive lunch or lingering over a beer and some baby back ribs. When executed correctly, price choice is in the hands of the guest. This allows the guest to choose to spend less or more, while broadening the appeal to more consumers. Usually when parties dine together, the person with the least amount of money leads the decision. Providing consumers a place where each person can choose to spend more or less is the goal. The approach taken in this restaurant was to allow the consumer to assign value to 30 | warestaurant.org

Key number two: Play to the strengths of the restaurant— variety—There are 36 combinations in all. This allows the consumer options at a price point that can be used more than once per week.

Key number three: Make production fast—speed kills competition and lack of speed kills business.

Key number four: Improve the rest of the menu. While the menu was repositioned to provide lower price points, the food quality of the rest of the menu was improved to deliver extra “crave” by dialing up flavor profiles, choosing new and interesting ingredients and improving presentation.

Additionally, a new non-alcoholic drink menu was implemented to drive incremental sales.

The irony is that while the pricing was reduced to fit the consumer’s new budget, check average actually increased and so did lunch visit frequency. With price layering, the guest makes the choice to spend what he/she finds reasonable, and that will quiet the critics. ▪ For a 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.

New And Improved Health Insurance Plans!

Our new plans with industry specific flexibility will be essential for the hospitality industry to get through the healthcare reform changes unscathed.

New plans include an extended PPO network, and employer flexibility for contribution and participation.

32 | warestaurant.org