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March 2013
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PROSTART STUDENTS on the FAST TRACK to success
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Inside
www.warestaurant.org
Features
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On the fast track to success In many ways, the WRA Education Foundation and ProStart program represent the future of the state’s restaurant industry. Learn how you can support their endeavors.
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Employer requirements under the federal health care law Still unclear on what you need to do to comply with the Patient Protection and Affordable Care Act? WRA health care expert Donna Seward brings you up to speed.
Other stories
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WA S H I N GTO N
RESTAURANT
March 2013
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PROSTART STUDENTS on the FAST TRACK to success
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Wearable technology’s future impact on the restaurant industry
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News briefs
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Investment in education and training are keys to profitability
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Thank you for making Hill Climb and Taste Our Best a hit
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Light duty and kept on salary in this economy – Are you crazy?
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WRA Education Foundation programs keep restaurants prepared for success
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Washington’s Restaurant Industry Workforce
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Yes, you really can negotiate your commercial lease
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The gift
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Calendar/New Members
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Marketplace
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Focus your training on understanding
On the cover
Lakes High School ProStart students gather around the 2008 Ford Mustang Shelby GT 500 Cobra Coupe being raffled off by the WRA Education Foundation. Proceeds from the raffle will be used to help support ProStart, among other educational programs.
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EDITORIAL STAFF Anthony Anton, Publisher Lex Nepomuceno, Executive Editor Heather Donahoe, Managing Editor Sheryl Jackson, Research Editor Lisa Ellefson, Art Director WRA EXECUTIVE COMMITTEE Jim Rowe, Chair Consolidated Restaurants Phil Costello, Vice Chair Stop N Go Family Drive Inn Robert Bonina, Secretary/Treasurer Washington Athletic Club Bret Stewart, Immediate Past Chair Center Twist Nancy Swanger, WRAEF President WSU WRA EXECUTIVE TEAM Anthony Anton President and CEO Teran Petrina Vice President Bruce Beckett Director of Government Affairs Lex Nepomuceno Director of Communications & Technology Lyle Hildahl Director of Education Victoria Olson Director of Business Development Susan Howe Director of Internal Operations
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: Ken Wells Allied Relations Manager 425.457.1458 kenw@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.
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Wearable technology’s future impact on the restaurant industry By Lex Nepomuceno, Executive Editor Two major trendsetters in the technology space are gearing up for the next battleground for consumer dollars: wearable technology. Google is in the advanced stages of testing their Google Glasses, and Apple reportedly has more than 100 employees working on a smart watch. According to ABI Research, wearable computing devices (WCDs) are projected to explode in popularity over the next year, and with a wave of new gadgets set to hit the consumer market, could soon become the norm for most people within five years. It forecasts the wearable computing device market will grow to 485 million annual device shipments by 2018. Specifically, smartphone-compatible watches are beginning to emerge (such as the pictured Pebble Watch), and rumors have materialized regarding Apple releasing a smart watch some time this year. Furthermore, we will see the arrival of the much anticipated, Google Glasses later this year. What does this mean for the restaurant industry? Quite simply, the way restaurants interact with their customers may change dramatically in a very short period of time. Imagine customers walking up to your bar with their Google Glasses and looking at each tap to determine which beer to order. However, as the customer glances over every beer option, nutritional information and online reviews are displayed over their optics – so they go for the lowest calorie beer with the highest reviews. Or, how cool would it be if customers with smart watches could receive their bill and then pay via “near field communications” chips embedded within their timepieces. “The furor about wearable technologies, particularly smart watches and smart glasses is unsurprising,” says Josh Flood, senior analyst at ABI Research. Both technologies are very stimulating and some of the applications for the device are rather inspiring. “Apple’s curved glass-based watch could prove to be a revelation in the wearable technologies market. The major question is whether the digital time piece will act as a complimentary device to the company’s iPhone smartphones or as a standalone product with other functionalities like health or activity tracking capabilities.” Google just announced that they expect to release their Glasses by the end of 2013. The market already has several smart watches in play, and many in the technology media predict an iWatch-type product within the next 6-18 months. Unfortunately, many restaurateurs will shrug this trend off as another fad or too “sci-fi.” My suggestion? Don’t be that guy! Phones are the most personal pieces of technology and it is the natural order of things for this technology to become even more personal and wearable. Wayne Gretzky once said “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.” Whether it’s hockey or restaurants, striving to be great often separates the winners from the losers. Wearable technology is here, and it is here to stay. The “great ones” will not just recognize this, but will take full advantage.
Primary Source of Information | News Briefs WRA bill takes aim at LCB errors in 1183 implementation
Senate Bill 5644 and House Bill 1161 were introduced in February and were heard in their respective committees. The WRA is pleased with the strong sponsorship of the bill – indicating correcting the Liquor Control Board’s errors in implementing I-1183 is a top priority for the legislature this year. In June of 2012, the Liquor Control Board adopted permanent rules to implement Initiative 1183 – several of which directly contradicted the voter-approved reform to liquor laws. At press time, the House bill had moved out of committee. Please visit www. warestaurant.org for the latest information on this legislation.
Restaurants not required to serve allergen-free foods, according to DOJ
Following some confusion over the Justice Department’s stance on how the Americans with Disabilities Act applies to food-allergic customers, the Department of Justice published a Q&A reaffirming that the ADA does not require all restaurants to provide gluten-free or allergen-free foods. The Justice Department, however, indicated the ADA might require restaurants to take “reasonable steps” to accommodate people with celiac disease and other food allergies, as long as the accommodation doesn’t result in a “fundamental alteration” of the restaurant’s operation. For example, it said the ADA may require restaurants to answer questions about menu ingredients and omit or substitute certain ingredients upon request if the restaurant normally does this for other guests. But, a restaurant would not be required to “alter its menu or provide different foods to meet particular dietary needs.”
Labor Dept. issues new FMLA posters
The U.S. Department of Labor has issued regulation changes to the Family and Medical Leave Act that took effect March 8, 2013. As a result, employers with 50 or more workers are required to post an updated poster on premises that depicts the changes. The new regulations, which the Department of Labor issued Feb. 6, relate to such provisions as allowing for military caregiver leave for veterans, qualifying exigency leave for parental care, and job-protected leave for airline personnel and flight crews. For more information on the new regulations, visit https://www.dol.gov/whd/ regs/compliance/posters/fmlaen.pdf.
Date change! WRA allied member sales breakfast
The WRA Education Foundation is holding its first ever allied member breakfast. Join us June 25 at 7:30 a.m. for “Bridge-Jumping to Success,” the WRA’s first annual sales-building breakfast, in support of the WRA Education Foundation. You’ll learn how to network with WRA restaurant members, get tips on how to drive sales through free tools provided by the WRA, and how to access WRA members for free. You will leave the seminar with a raffle ticket for a 2008 Ford Shelby GT500, and a newfound set of tools to increase your sales. Contact David Faro at davidf@warestaurant.org for more information.
Get your questions answered on healthcare reform and how it affects your business! The Washington Restaurant Association and the Washington Lodging Association has retained the services of healthcare expert Donna Steward to help educate the restaurant industry and individually answer member questions. Every week, the WRA conducts a toll-free conference call where members will be able to ask questions relating to the healthcare issue and receive a response on the spot. This is a member-only benefit to WRA and WLA members. For details, go to warestaurant.org/healthcare.
WRA’s 2013 Media Kit is now available online
Stand out at the top of the industry by advertising your product or service to restaurant owners across Washington through our monthly Washington Restaurant Magazine, the weekly e-newsletter Washington Restaurant Weekly, DineNW Radio Show, online banner ads and more. To view or download the latest version of the media kit, go to http://warestaurant. org/news/media-kit/.
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Industry Outlook | WRA President & CEO
Investment in education and training are keys to profitability—not distractions to success With extreme cost challenges on the horizon in labor law, mandatory health care and rising food costs, many operators undoubtedly will be seeking ways to reduce costs. May I boldly suggest a counterintuitive strategy? Invest more in training and education. Because of the ever-growing costs of hiring workers, employers (you) are not going to gain any advantage by hiring down. The minimum cost today, and moving forward, is very likely going to be the same whether hiring a sixteen-year-old, a sixteen-year career worker, a retired professional or a newly arrived immigrant. And while we can debate that fact with policymakers until we are blue in the face, they don’t really understand these realities, nor do they want to. We already employ three fewer workers per unit than the national average, and I predict we will likely drop yet another employee per unit because of these cost drivers. At some point all waste is eliminated, and if so, the business advantage isn’t going to be on the low-cost side. It’s going to be found in achieving the most efficiency, least waste and highest customer loyalty from of fewer workers on the team. Again, investment in education and training will be keys to profitability—not distractions to success. Ask yourself if your current workers REALLY make your customers feel: confident in their safety, loyalty to your business a comfort /excitement to spend more I dined out five times this past weekend, and I can answer with certainty that only one restaurant had workers that made me, my friends or my family feel this way. This is exactly why the WRA’s Education Foundation is continually pushing the envelope to provide more tools to help you meet this vital objective. The Foundation is striving to provide more… more access, more options, more affordability, more workers, more effective workers and a more positive impact on your business. Let me give you a glimpse of just some of the groundbreaking work underway. Access: With the ever-changing technology, as well as better public education/private industry partnerships, it is becoming more and more plausible for training to be provided in the restaurant industry en masse, versus the traditional in-store
Anthony Anton, president and CEO
methods. Earlier this winter our Education Foundation director, Lyle Hildahl, met with the deans of several community college culinary programs and discussed, for the first time, the concept of regional training centers across the state; and on a national level, the NRA has invested hundreds of thousands of dollars in technology platforms that will allow better and more effective training online. Options: In addition to ServSafe, on-line MAST training and allergy training, the EF is in active program development for workplace safety training—a ManageFirst curriculum that could provide existing and developing industry leaders with broad training options, ranging from restaurant accounting to team management and guest experience management. In addition, the team is in conversations about additional training options in floor level hospitality training and PIC food safety (a mid-point between food worker card training and ServSafe). More workers: The ProStart program dramatically increased the number of mentors in ProStart high schools around Washington in the past six months and hopes to double that number in the next six months. The kids coming out of ProStart programs today are getting remarkable restaurant exposure and experience from some top-notch teachers and mentors . And the WRA is making its strongest push to date to get these aspiring hospitality leaders the 400 hours of direct restaurant experience they need to graduate. All of this so you can have access to a more effective and dynamic workforce in the near future. More opportunities to invest in your business’s training and education services: The kind of groundbreaking work going on at the Education Foundation, on your behalf, has high upfront costs but huge future returns. To help cover these costs, the EF has come up with three creative ways for you to invest in your business. First of all, please help the EF by purchasing at least one of only 3,000 raffle tickets for a 2008 Mustang Cobra Shelby. The proceeds will go toward program development and an endowment for the ProStart students. Secondly, you can become a mentor for a local ProStart program, and use our training programs—of which all proceeds go right back into investing in you. Lastly, enroll your restaurant in the Round it Up America program—a program that diverts a portion of gratuities to the ProStart program. Check out page 18 for all the details. Investment in education and training are keys to profitability and success. Please help us help you succeed. March 2013 | 9
Thanks to members, sponsors and legislators for a great Hill Climb/Taste Our Best 2013 This year’s restaurant industry day at the Capitol was once again a success on Monday, thanks to the participation of restaurant operators throughout the state. Nearly 130 WRA members came to Olympia to attend 144 scheduled appointments with legislators. Later that evening, more than 300 people turned out at the Washington Center for the Performing Arts for the Taste Our Best
Legislative Reception, where restaurant operators mingled with lawmakers, legislative staff and fellow industry professionals. This annual event allows the restaurant industry to interact directly with decision-makers, and is integral to the WRA’s policy efforts. Visit warestaurant.org for the photo gallery!
Sponsors
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Participants
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Light duty and kept on salary in this economy – Are you crazy? By Greg Kabacy, MBA, ERNWest
When the economy turns south, workers’ compensation costs and claims often fall well below the radar. Enticing customers to spend money, or trying to figure out ways to retain employees tends to dominate a business owner’s thoughts, instead of who may be on light duty for the day. To begin, a business owner must understand their workers’ compensation premiums. In Washington state, experience modification factor (EMR) can greatly affect the amount of premium paid to the state. Did you know that an employer can receive an EMR well below what they could normally achieve on their own by having three straight years with no time loss claims?
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By keeping time loss off your workers’ compensation account you can achieve 10 percent—25 percent savings every year in your Labor & Industries (L&I) premiums. If the prospect of providing light duty or keeping an injured worker on salary is still too much to bear in today’s economy, keep this SAVINGS in mind: let’s say you already have a time loss free discount rate (three years of no time loss claims) from L&I, and have an individual on light duty from an injury. Business slows down. Your first instinct is to get rid of your excess non-producing employees. You may be tempted to let the person who is on light duty go, and have L&I cover his/her costs with time loss payments. If you allow that individual to go out on time loss, it is almost guaranteed that your rates will increase by as much as 25 percent in the next year or two. That adds up to a lot of money. Before making a hasty decision to allow L&I to pay an injured worker time loss compensation, carefully consider what impact that may have on the future of your company. Are we advocating for you to keep all of your injured workers on light duty or salary? No. This is not an achievable goal depending on various circumstances. But keeping a person on salary for two to four weeks will buy you some time to do one of two things: first, you can use that time to determine if you can provide light duty to that individual and bring them back to work in a meaningful capacity, and second, you can determine how bad the injury is. If it appears the person is going to be off work for longer than 30 days, keeping that person on salary may not necessarily the best option. Do you feel like you can’t afford to bring an employee back to light duty? Washington state now has the Stay At Work
(SAW) program to help you. This program can provide up to 50 percent of a worker’s wages for up to 66 days, while they are on light duty. The 50% funding for this program is actually generated from your own rates, so if you’re paying for it, why not use it? Looking for more incentive to bring an injured worker back to light duty? Did you know that if you can prevent time loss compensation from being paid out on a work related injury claim, the Department will pick up part of the worker’s medical costs? In the current calculation of EMRs, employers are receiving up to a $2,460 credit on each medical-only claim. Let’s go through a short example to illustrate this. You have a claimant who has gone to the doctor and is excused from work for five days. Instead of allowing L&I to pay time loss, you either provide this worker with light duty at full pay or provide Kept on Salary (KOS). The total medical costs on his claim add up to $1,500. Applying the credit of up to $2,460 because you kept time loss off the claim, the total cost to your company and against your premiums is now $0. If, however, you allowed even one dollar of time loss to be paid, this claim would be charged against you for the full amount of medical and indemnity costs. Again, it is easy, but may be short-sighted to look at the near term effects of cutting an injured worker loose. By focusing on the long-term health of your company, and determining what course of action will keep you competitive in the future, light duty and Kept on Salary can make business sense. ERNWest, a Federal Way-based workers’ compensation risk management provider, provides claims management services for the WRA’s Retrospective Rating program. For more information on joining WRA’s Retro program visit warestaurant.org/wise-buy/Retro or call 800.225.7166.
CLAIMANT
has gone to the doctor and is excused from work for five days
OPTIONS
xx L&I cover his/her costs with time loss payments xx Light duty at full pay xx Kept on salary (KOS)
xx
L&I cover his/her costs with time loss payments
=
Rates will increase up to 25% in the next year or two.
LIGHT DUTY AT FULL PAY
Instead of allowing L&I to pay time loss
UP TO $2,460 CREDIT When no time loss is filed
KEPT ON SALARY (KOS)
Instead of allowing L&I to pay time loss
UP TO $2,460 CREDIT When no time loss is filed
March 2013 | 13
WRA Education Foundation programs keep restaurants prepared for success By Heather Donahoe
The WRA Education Foundation (WRAEF) exists to be the leading resource for training, education and career development for Washington state’s hospitality community. In order to reach its objectives, the WRAEF offers a full slate of training curricula and educational programs. The WRAEF began operating in 1997, tasked with providing the most current training resources for Washington’s restaurant workforce. The WRAEF will:
PROPEL talented individuals into successful hospitality careers.
PARTNER with members, agencies and the community to promote food safety through ongoing training and certification. PROMOTE the exchange of information among our diversified member base. PROVIDE timely industry-specific resource materials to our members. Below is an overview of the programs and resources the WRAEF offers in order to keep Washington’s restaurants fully trained and positioned for success.
ServSafe Advanced Food Safety
Understandably, today’s restaurant customers are keenly aware of how their local restaurants approach food safety. Everybody knows which restaurants in a given community have “a reputation,” and which ones are well-known for their cleanliness and good order. Establishing a known culture and standard of food safety excellence is essential to a restaurant’s success. Without it, long-term survival is nearly impossible. ServSafe Advanced Food Safety is designed to help restaurants achieve and maintain that standard. This curriculum delivers classroom and online training options
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for every manager, focusing on the most current best practices in advanced food safety. Additionally, ServSafe gives managers the tools they need to communicate food safety knowledge to their employees. Students stay engaged in current state health code regulations and learn how to demonstrate knowledge of foodborne disease prevention, application of HACCP principles, and the requirements of the Washington State Food Code to the regulatory authority. Want to send your employees through ServSafe training? The WRA can help. Visit www.warestaurant.org/trainingeducation/training-schedule/ to find class dates in your area.
ServSafe Alcohol
ServSafe Alcohol is structured to educate restaurant workers on responsible alcohol service. Developed by the National Restaurant Association, ServSafe Alcohol implements the same approach ServSafe pioneered as the industry’s most recognized food safety training and certification. The WRAEF played a key role in the Washington State Liquor Control Board’s decision in 2012 to allow mandatory alcohol server training to be offered online. Partnering with the National Restaurant Association, the WRAEF is now offering exceptional server training using the award winning Servsafe Alcohol curriculum. Online or in-person, ServSafe Alcohol is your resource for preparing employees to safely and legally serve alcohol. Those who complete the Washington version of the ServSafe Alcohol course and exam will not only receive their ServSafe Alcohol certification but their Washington state required mixologist (Class 12 or Class 13) permit. By providing practical knowledge and best-in-class resources, ServSafe Alcohol helps servers put knowledge
into action when it matters most. That makes ServSafe Alcohol the smart training solution for every operation and every classroom. Visit www.warestaurant.org/trainingeducation/training-schedule to register for a class.
ProStart
Across the country, and in 32 Washington state high schools, the next generation of restaurant leaders is being cultivated. ProStart is a two-year classroom-to-career program structured to education students on culinary techniques and restaurant management skills. The ProStart curriculum, developed by the National Restaurant Association, provides students with real-world educational opportunities and establishes the practical skills that will give students an edge within the restaurant workforce. By bridging the gap between the industry and the classroom, ProStart allows students the chance to explore the foodservice industry first-hand and develop the skills that will sustain a lasting career. Each year, participating ProStart students showcase their talents in cooking, knife skills and restaurant management in front of chef judges at the Boyd Coffee ProStart Invitational. Students compete for thousands of dollars in scholarships and the chance to compete at the national level. The most exciting aspect of ProStart is that restaurant operators have the opportunity to get involved with the up-and-coming crop of new restaurant talent. Chefs and managers are encouraged to consider volunteering as ProStart mentors, by partnering with a ProStart class in their community. If you’d like to help nurture the industry leaders of tomorrow, or you’re interested in hiring a ProStart student, please drop us a line at prostart@ wrahome.com.
Spot Check Allergy Safe Certification
Each year, more than 45 million Americans suffer from food allergy and sensitivity related illnesses. Correspondingly, a growing number of restaurant customers are seeking foodservice establishments that are prepared to accommodate their unique needs. In late 2011, the WRAEF took the first steps toward helping Washington state restaurant operators ensure that they are prepared to serve guests with food allergy needs. The WRAEF now offers Spot Check Allergy Safe Certification training for front and back of the house personnel. This curriculum is designed to help kitchen staffs seamlessly integrate allergy-safe food prep practices into a normal restaurant kitchen. Spot Check debunks the myth that an allergy-safe kitchen requires an extensive remodel or duplicate equipment purchases. This training option shows operators how to adapt their kitchens as is, with minimal expense and disturbance to existing food prep areas. The Allergy Safe Certification training is designed not only to educate restaurant professionals on eliminating the risk they pose to food allergy sufferers, but the curriculum also is structured to help workers understand the allergy and sensitivity issues many customers struggle daily to manage. To get more information on any of the training opportunities offered by the WRAEF, visit www.wraef.com/ training-education, or call 877.695.9733. ď Ž
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On the fast track to success
ProStart students gear up for the future… and they need your help By Heather Donahoe
Sports cars and high school students aren’t always the best combination… in most cases. But thanks to the generosity of a longtime WRA member and supporter, one sports car in particular has the potential to benefit hundreds of Washington teens. Last year, WRA member Marc Zanner, offered up his 2008 Ford Mustang Shelby GT 500 Cobra Coupe to the Washington Restaurant Association Education Foundation. (WRAEF) In turn, the WRAEF decided to raffle off the rare car—3,000 raffle tickets at $75 apiece. The goal is to sustain and strengthen the WRAEF’s existing programs, while planning for the future of the organization. Largely, the raffle will benefit Washington state’s more than 1,200 ProStart students across 32 high schools. ProStart is a nationally accredited classroom-to-career training program, taught in secondary schools all over the U.S. According to the National Restaurant Association Educational Foundation (NRAEF), ProStart reaches more than 95,000 students in 1,700 high schools across 47 states, Guam, and U.S. military bases. From culinary techniques to management skills, ProStart’s industry-driven curriculum provides real-life experience opportunities and builds practical skills and a foundation that will last a lifetime. ProStart merges the restaurant industry with classroom instruction, giving students a platform to discover new interests, skills and talents that ultimately will strengthen their career trajectories. The ProStart curriculum showcases all facets of the industry and instills in students a standard of excellence. Students complete the requirements of the ProStart
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program are awarded an industry-recognized certificate – the ProStart National Certificate of Achievement. To earn the certificate, students pass two national exams, demonstrate a mastery of foundational skills and work 400 mentored hours. Students who receive the certificate are eligible for NRAEF scholarship opportunities and course credits at more than 75 of the country’s leading hospitality and culinary arts colleges and universities. Washington state’s ProStart students frequently go on to establish careers in some of the state and country’s best restaurant kitchens; therefore supporting the WRAEF is a good investment in the future of the state’s restaurant industry. As WRA president and CEO, Anthony Anton, mentioned in his column this month (page 9), there are several simple and beneficial things restaurateurs can do to support the WRAEF.
NUMBER ONE
Buy a raffle ticket… or 10… or more! The WRAEF is committed to selling 3,000 tickets for the beautiful Ford Mustang Shelby by August 6. Meeting this goal will raise $225,000 for the WRAEF, allowing the Foundation to continue its mission of being the leading resource for foodservice training and education in Washington state. The work of the WRAEF is crucial to the success of Washington’s restaurant industry. For only $75, you’re not only buying a strong chance (1 in 3,000!) at winning a collector’s edition sports car; you’re also ensuring the stability of future prosperity of the state’s restaurant industry. With a supercharged V8 engine, a manual six-speed transmission with overdrive and only 110 miles on the odometer, you my never find a prettier way to be charitable. Want the WRAEF to bring the car and a stack of raffle tickets to your next big event? Contact Jennifer Dixon at jenniferd@warestaurant.org for more information.
NUMBER TWO
Sign up your restaurant to participate in Round It Up America. This national program was founded by industry
Want to get your restaurant on board? Jennifer Dixon can make it happen. Email her at jenniferd@warestaurant.org.
NUMBER THREE
Be a mentor in your local ProStart classroom. Mentorship can be done in many ways—both in the back and front of the house. Mentors can help a class in both areas or specifically in the area of their expertise. Mentorship can involve the following: hosting tours of your business or your vendor’s facilities inviting the students to work / intern at your business visiting their school or speaking to them in a relevant setting engaging them in your specific industry, service or product helping them to learn about workplace culture and sharing your success story be an advocate and role model for the industry prompt them to develop new ideas and promotions for the industry offering focused introduction or training in specific tasks or processes i.e. cheese-making/tasting, pastry arts, vegetarian menus, sustainability, menu costing, etc. encourage them to develop new recipes for your business helping them to prepare for the state ProStart competition in March!
leaders and encourages restaurant patrons to round up their purchase to the nearest dollar at the close of a credit card sale. Round It Up America restaurant partners can select a charity to which a portion of the round-up can be donated. The WRAEF is looking for restaurant partners, willing to join with the Foundation in the Round it Up America program. The program is simple, but can make a big difference. Consider this: the first restaurant to participate in Round it Up America was a mid-size restaurant with 27 locations. That restaurant is able to raise an average of $40 daily, per location—which translates to about $1,000 collectively for the chain each day. The potential is significant for Washington state’s restaurants to make a big difference through Round It Up America. Visit www. rounditupamerica.org for more information.
There are no definitive minimum or maximum time commitments as it’s based on your availability and resources. Some business owners/managers utilize their line managers or supervisory staff as a management training tool for that employee’s career development. Others take ownership of the mentor relationship entirely and offer to comprehensive levels of teaching and coaching to ProStart students. The future workforce depends on every relationship, and every moment helps. Helping them prepare for the annual ProStart Invitational is essential, since it is an important benefit and a tremendous highlight of the school’s participation as a ProStart-affiliated school. WRAEF ProStart mentors report that it is one of the most rewarding experiences of their careers. Want information on how to get involved with the WRAEF? Jennifer Dixon can help! Contact her at jenniferd@ warestaurant.org or call 877.695.9733, ext. 127.
March 2013 | 17
Employer requirements under the federal health care law By Donna Steward, president, Kiawe Public Affairs The federal Patient Protection and Affordable Care Act (ACA) contains numerous provisions affecting health care coverage across the nation. While large employers, specifically those with more than 50 full-time equivalent employees, have specific requirements to either provide health care coverage or pay an IRS penalty, there are three provisions that phase-in this year that all employers must comply with:
Discrimination: Beginning in 2014, employers will
be prohibited from precluding full-time employees from participating in their health plan based on the employee’s salary level or hourly wage; and from offering lower premium contributions or richer benefit packages to higher wage employees that are not also offered to lower wage employees. W-2 Reporting: Beginning with the 2012 tax year, employers issuing more than 250 W-2s, must include the value of health care coverage provided for the employee on the employee’s W-2. All employers must include this information beginning with the 2013 tax year. FLSA Announcement: Beginning in 2013, all employers will be required to notify employees of the existence of a state-based health exchange from which the employee may be entitled to federal subsidies for health care coverage. The following Frequently Asked Questions are based on the above three requirements:
Discrimination How does the law describe “discrimination” as it applies to the offer of health benefits/health care coverage to employees? Section 2716 of the ACA states the following: “(a) IN GENERAL – the plan sponsor of a group health plan (other than a self-insured plan) may not establish rules relating to the health insurance coverage eligibility (including continued eligibility) of any full-time employee under the terms of the plan that are based on the total hourly or annual salary of the employee or otherwise establish eligibility rules that have the effect of discriminating in favor of higher wage employees.” What does the description of discrimination mean in plain terms? The federal Departments of Labor and Health and Human Services are interpreting this section to mean that employers are precluded from: a) offering coverage 18 | warestaurant.org
to only those full-time employees that have hourly wages exceeding a set amount, or have annual salaries exceeding a set amount; or b) offering higher wage employees lower premium contributions or richer benefit packages if those same options are not also available to lower wage employees. What about part-time employees – am I subject to these same restrictions if I offer coverage to my part-time employees? Not at this time. The discrimination restrictions currently apply to coverage provided to full-time employees only. However, the Departments of Labor and Health and Human Services are still developing the final rules that will govern this issue and it is possible that they will choose to include additional restrictions for discrimination that extend to part-time employees as well. What if I am a small employer and not required to provide coverage, may I still determine which employees I want to provide coverage to? While there is no requirement for small employers to provide health care coverage, if they choose to provide coverage to their full-time employees, they still may not preclude participation in their plan based on earnings, and may not offer lower premium or richer benefit packages to higher paid employees that are not also offered to lower paid employees – doing so would be a violation of the discrimination provision. Still under debate at the Department of Labor (DOL) is whether a small employer, not subject to employer responsibility provisions, may choose to offer coverage to only select employees, such as managers only, even though they have full-time non-management employees. In this situation, the DOL is contemplating whether the absence of coverage for lower wage employees could be considered discriminatory. Additional rules are expected to address this situation within the year. What is the penalty for violating this anti-discrimination requirement? The DOL has indicated no penalties will be issued on this provision until the rules have been finalized. What can I do to avoid developing a discriminatory policy and perhaps subjecting my business to a penalty? Because the rules have not been finalized, the simplest way for an employer to avoid a penalty for violating the anti-discrimination provision is to select only one health benefit plan and set one premium contribution level for all employees (or pay 100% of the premium for all employees, that will work as well). However, since that may continued on page 27
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March 2013 | 19
Washington’s Restaurant Industry Workforce Largest private sector employer in the state
Over the past year, Washington state foodservice employment continues its recovery by adding an additional 8,000 jobs over the previous year.
250000
DOING MORE WITH LESS Despite employment gains, Washington state restaurants still employs three fewer workers per location than the national average.
200000
150000
11/11 12/11 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12
Washington state ESD seasonally adjusted, NAIC 722; November.
INDUSTRY OF OPPORTUNITY
INDUSTRY OF DIVERSITY Washington’s restaurant industry*
Restaurant industry—ladder of opportunity Position
MINORITY OWNED
Average Starting/Base
General / Operations Manager
$74,776
Food Service Managers
$60,050
Chef/Head Cook
$40,976
First Line Manager/Shift Supervisor
$39,499
Entry Level Crew (hourly)
30.9% 25%
WOMEN OWNED
ASIAN OWNED
23%
Minimum wage
Employment Security, Washington wage report, full service positions, June 2012
* http://www.census.gov/econ/sbo/; 2007 Washington Data set
TEEN LABOR; 5 YEAR COMPARISON % Change in Employment 2011 to 2006 -44.8%
TOTAL RESTAURANTS
-45.9%
LIMITED SERVICE RESTAURANTS
-42.3%
FULL SERVICE RESTAURANTS
-40.3% -50
-40
20 | warestaurant.org
TOTAL ALL INDUSTRIES -30
-20
-10
0
The foodservice industry used to be the go to entry level job for teens providing experience and instilling work ethic. Since 2006, there has been a 44.8% drop in teens employed for the food service industry. Limited/quick has been hit harder with almost a 46% drop in the past 5 years.
February 2013 | 21
Yes, you really can negotiate your commercial lease By Dale Willerton, The Lease Coach
Dale Willerton, The Lease Coach
When speaking at major restaurant shows, I am often reminded of how challenging it can be for a restaurant owner to negotiate a good lease or lease renewal against an experienced agent or landlord. While a restaurateur thinks of marketing, managing and menus, savvy real estate agents and brokers are specialized sales people. Their job is to sell restaurant tenants on leasing their location at the highest possible rental rate. 22 | warestaurant.org
When negotiating a new lease or a lease renewal, here are some tips for restaurant tenants:
Negotiate to win
Restaurant tenants frequently enter into lease negotiations unprepared and don`t even try winning the negotiations. With big commissions at stake, you can be sure the landlord’s agent, on the other hand, is negotiating fiercely to win. Negotiate assertively!
Be prepared to walk away
Try to set aside your emotions and make objective decisions. Whoever most needs to make a lease deal will give up the most concessions. A good business in a poor location will become a poor business.
Ask the right questions
Gathering information about what other tenants are paying for rent or what incentives they received will position you to get a better deal. Consider that your landlord and his agent know what every other tenant in the property is paying in rent, so you must do your homework too.
Brokers … friend or foe?
Real estate agents and brokers typically work for the landlord who is paying their commission. It is not normally the agent`s role to get the restaurant tenant the best deal – it is their job to get the landlord the highest rent, the biggest deposit, etc. The higher the rent you pay, the more commission the agent earns. When researching multiple properties, try to deal directly with the listing agent for each property, rather than letting one agent show you around or show you another agent’s listing. Your tenancy is more desirable to the listing agent if he can avoid commission-splitting with other agents.
Never accept the first offer
Even if the first offer seems reasonable, or you have no idea of what to negotiate for, never accept the leasing agent’s first offer. In the real estate industry, most things are negotiable and the landlord fully expects you to counteroffer.
Ask for more than you want
If you want three months free rent, then ask for five months. No one ever gets more than they ask for. Be prepared for the landlord to counter-offer and negotiate with you as well. Don’t be afraid of hearing ‘no’ from the landlord – counter-offers are all part of the game.
Negotiate the deposit
Large deposits are not legally required in a real estate lease agreement. Deposits are negotiable and, more so than anything else, often serve to compensate the landlord for the real estate commissions he will be paying out to the realtor. The Lease Coach is frequently successful in negotiating for the tenant’s deposit refunded upon a lease renewal.
Negotiate, negotiate
The leasing process is just that – a process, not an event. The more time you have to put the deal together and make counter-offers, the better the chance you have of getting
TIPS
what you really want. Resist trying to hammer out the deal in a two- or three-hour marathon session.
Educate yourself and get help
The Lease Coach has done leasing webinars for many state restaurant associations and the National Restaurant Association. If you would like to see The Lease Coach in-person and learn more about this important area of business, talk to your meeting planner andor show organizer for upcoming trade shows. Educating yourself and getting help from a qualified professional can make the difference between success and failure. With hundreds of thousands of dollars in rent at stake, personal guarantees and other risks, you can’t afford to gamble. In leasing, restaurant tenants don’t get what they deserve, they get what they negotiate. Please request my free leasing CD, Leasing Do’s & Don’ts for Restaurant Tenants via e-mail to DaleWillerton@ TheLeaseCoach.com. Dale Willerton is The Lease Coach and author of “Negotiate Your Restaurant Lease or Renewal” Dale is also a recognized public speaker as well as a member of the Washington Restaurant Association. Got a leasing question? Need help with a new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@ TheLeaseCoach.com or visit www.TheLeaseCoach.com and/or www.HelpULeaseRestaurant.com.
Negotiate to win Be prepared to walk away Ask the right questions Brokers … friend or foe? Never accept the first offer Ask for more than you want Negotiate the deposit Negotiate, negotiate Educate yourself and get help
February 2013 | 23
Shelby show dates so far. Invite us to your event!
The gift By Lyle Hildahl, WRA Education Foundation director
You ever wonder what you might do if you won the lottery? In some ways, when Marc Zanner approached us with a gift for the Foundation, it was like winning the lottery. On the cover of this magazine, you see that gift— a 2008 Ford Mustang Shelby GT 500 Cobra Coupe. As a ProStart student might say—OMG. Before we decided on the raffle, we discussed what the Education Foundation needed in order to grow. Actually, just like many nonprofits and businesses today, growth wasn’t the goal-- it was to sustain itself. But Marc told us to think big. This car is Marc’s example of giving back to the Foundation that drives the future of our industry. This car is a message to the industry leaders and companies that benefit, and to the economy that benefits from the growth of the state’s largest private employer. I’m just one person with one gift, Marc said. The WRA has 5,000-plus members and more than 15,000 support-businesses that depend on the growth of our industry. Think bigger, Marc told us. So, we did; and here are a few of the things we hope this car will allow us to accomplish: Growing ProStart, our high school culinary and restaurant management program from 33 to 100 schools in two years. The school districts are challenged with shrinking revenues just as employers, so in order to expand, it will take resources. Approx. cost: $200,000 Providing scholarships for ProStart graduates. Expanding to new school districts will expand the number of students we serve getting into the industry. We would like to provide at a minimum, a $2,000 scholarship to every ProStart student who completes the program with a National certificate of achievement. Cost: $100,000 Providing training for ProStart teacher professional development. Many school districts have teachers in family and consumer science education who are former home economics teachers wanting to learn the skills to teach knowledge and skills that apply to the industry. Approx. cost $75,000 Starting a research and development fund for professional development training programs 24 | warestaurant.org
March 16 and 17: Shawn O’Donnell’s, Everett April 15: Swinging Door, Spokane April 16: Long Horn BBQ, Spokane April 17: Stop N Go, Spokane April 18: FSA food show Spokane fairgrounds May: Microsoft campus ( date and time TBD) June 25: Emerald Downs, Tukwilla August 6: Winning raffle ticket drawing, Washington
National Golf Course, Auburn Visit www.warestaurant.org/blog/win-the-shelby to learn how to purchase your raffle tickets.
for industry. Developing training programs that accommodate the challenging work day of our employees and managers is critical to their growth. Cost: $ 50,000 Building a network database of training programs from hospitality and training institutions such as the National Restaurant Association, American Culinary Federation, Hotel and Lodging Association, colleges and universities, military, etc. Cost: TBD The Mustang Shelby has the potential to generate enough revenue to fund each of these goals. The remaining need, approximately $250,000, would have to come from other donations, sponsors and fundraising events. The good thing is that it is doable. The challenging thing is, it takes work; but all good things do! ProStart serves an amazingly diverse population—homeless teens, at-risk youth, college-bound students and all types in between. ProStart takes this varied population and teaches them how to cook, how to serve, how to run a business, how to do a marketing feasibility study, how to do a marketing plan, the science behind food, teamwork, critical thinking, nutrition, problem solving, how to prepare for an interview and that a smile is worth everything in our business. Look at the cover of this magazine and the smiles on the ProStart students from Lakes High School. Ten, 20, 30 years from now, they will remember ProStart—the program that gave them a chance, the program that jumpstarted their career and introduced an industry to them that changed their world. The youth of ProStart will have many “good old days” because you cared enough to reach out and touch their lives as a mentor, a teacher, an employer, a friend. I hope Marc Zanner’s legacy is remembered as the restaurant operator who made a difference in the lives of so many young people getting their start in the greatest career I have known. My style is to speak from the heart and be nice with the ask. Going out of my comfort zone, I urge you to support the WRA Education Foundation. Buy a ticket, buy 10 tickets, get your teams involved. Invite me out to your business for a Shelby event. We cannot do it alone, and ultimately it’s for YOU!
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INDUSTRY CALENDAR March/April Training Mar. 18
ServSafe® Manager
Mar. 21
ServSafe® Manager
Mar. 26
ServSafe® Manager
Apr. 2
ServSafe® Manager
Meetings Mar. 5
Executive Committee
Mar. 6, 13, 20, 27
GAC Conference Calls
Mar. 12
Spokane Chapter Meeting
Mar. 19
MSC Meeting
Mar. 22
Board Development Conference Call
Apr. 4
Executive Committee Meeting
Apr. 3, 10, 17
GAC Conference Calls
Apr. 9
Spokane Chapter Meeting
Apr. 14
Finance Committee Meeting
Apr. 16
EF Spring Board of Director’s Meeting
Apr. 30
WRA Spring Board of Director’s Meeting
Events Apr. 21-22
Northwest Foodservice Show
NEW RESTAURANTS Ambrosia Bistro & Wine Bar, Spokane Beau Legs Fish & Chips, Lacey Brooklyn Brothers Pizzeria, Everett Chairs Coffee & Public House, Spokane Chairs Coffee House, Spokane Charlies Bar & Grill, Olympia Eddie’s Black & Tan, Mercer Island Great NW Soup Co, Seattle Harry’s, Seattle Hop Jack’s LLC, Auburn K&M Drive In, Washougal Koral Bar & Dining, Bellevue Lottie’s Lounge, Auburn Poole’s Public House, Spokane Powder Keg, Tenino Preservation Kitchen, Bothell Schafers Bar & Grill, Sumner Sea Galley, Union Gap Sportspage, Auburn Tab’s Bar & Grill, Kenmore Twisted Pastry, Kirkland Zobel Ethiopian Restaurant, Seattle 26 | warestaurant.org
NEW ALLIED MEMBERS Chef Works Ananda Nettnin 12325 Kerran Street Poway, CA 92064-6801 800.372.6621 ananda@chefworks.com www.chefworks.com Chef Works manufactures and distributes high quality culinary uniforms to the hospitality industry. CSM Bakery Products Antonia McDonald 1912 Montreal Rd Tucker, GA 30084-5201 253.224.8374 antonia.mcdonald@csmglobal.com csmbakeryproducts.com CSM Bakery Products offers the highest-quality, most complete sweet goods portfolio in North America. We can design customized selections, exclusive to your business. In addition we offer outstanding components, fillings and finishes. Del Real Foods Herb Bowden 11041 Inland Ave Mira Loma, CA 91752-1155 951.681.0395 hbowden@delrealfoods.com www.delrealfoods.com Del Real Foods is a manufacturer of authentic heat & serve Mexican entrees and side dishes, our products are made with high quality ingredients and traditional cooking methods. Our line includes items such as Carnitas, grilled chicken, tamales, rice and salsa. Interstack, Inc. DJ Norman 1904 9th Ave Seattle, WA 98101-1304 206.826.2216 djn@interstack.com http://loyalchannel.com Interstack Inc. is a Seattle based tech company that builds cloud solutions. Loyalchannel is a digital comment card and it was built specifically for the
restaurant & hotel industry. Loyal channel is a simple web app to capture, manage and 10% discount on any of our web solutions. Legal Plans by Legalshield Ken Mattson 1529 Westwood Ave Wenatchee, WA 98801-1681 877.400.5260 kennethmattson@legalshield.com www.kennethmattson.legalshield.com The Small Business Legal Plan protects you on the job and at home. Every business deserves legal protection and now every business can access it for a flat monthly fee, available to forprofit businesses with fewer than 100 employees. Companies with publiclytraded stock are excluded. Business questions by a team of top business consultants and business partners. Mr. Oil Saver Taylor Myers Gabe Taylor 8510 N Hill N Dale St Spokane, WA 99208-5810 386.668.7600 gabetaylor@mroilsaver.com www.mroilsaver.com We are a “total oil management company”. We help restaurants manage their oil to save money, improve quality and increase safety to employees.
continued from page 18 be unrealistic based on workforce demands and financial constraints, consider incorporating each of the following into the development of your benefit eligibility policy:
Establish parity in employee contributions for each
health plan or benefit level offered to employees (not all contributions must be the same for each health plan or benefit level, but employees that select the same health plan or benefit level, must pay the same premium contribution based on their selected plan or benefit level). Do not offer higher paid employees lower co-pays, coinsurances, deductibles or premium contribution levels Do not offer higher paid employees richer benefit packages than those available to lower wage employees Establish only one standard waiting period for access to coverage
W-2 Reporting When must I start providing this information on the W-2s? Employers issuing 250 or more W-2s for tax year 2012, must include this information on the 2012 W-2s. All other employers will begin reporting this information during the 2013 tax cycle, on 2013 W-2s. What information must be included on the W-2? At this time employers are only required to include the amount paid for major medical health care coverage provided to the specific employee. Employers may choose to include coverage for standalone dental or vision plans, employer-only contributions to employees’ flexible savings accounts; health reimbursement arrangement contributions; or Archer medical savings account contributions, but are not yet required to do so. Must I include employee premium contributions as well? Yes, you must report the aggregate amount of contributions made by both the employer and the employee. Will the aggregate premium contributions be considered taxable wages for my employees? No Will I be taxed on the premium contributions include on the W-2s of my employees? No Where on the W-2 must this information be recorded? In Box 12 Will the reporting requirements for employers that must report in 2012 be the same for those who must report beginning in 2013? Even though a substantial number of employers must begin submitting health care contribution information this year, the IRS is still in the process of finalizing the rules. It is unlikely the final rules will have different requirements
for employers of different sizes, but it is possible the rules will be different for all employers for the 2013 reporting. It is also possible exceptions to the requirement or waivers from the requirement may be issued for certain employers beginning with the 2013 reporting as well. The additional guidance/rules should be available soon. If no one is taxed on this information, why I am required to report it to the IRS? The IRS is responsible for identifying large employers (those with 50 or more full-time equivalent employees) that are not providing health care coverage to their employees, and individuals who do not have health care coverage to ensure they are complying with the federal law. Ultimately it is the responsibility of the individual to have health care coverage. Individuals that cannot demonstrate that they have coverage will be penalized by the IRS. The information submitted on the W-2 will be used as a cursory validation of coverage for the employee. Individuals for whom no employer coverage is identified, will complete additional information fields on their federal tax returns to validate that they indeed do have health care coverage. The absence of such information will lead to a penalty.
FLSA Announcement Why must I communicate the availability of the state exchange if I am already providing coverage to my employees? The ACA includes the requirement for all employers, regardless of whether they provide health care coverage. The intent is to ensure that employees are aware they may be eligible for federal health care subsidies if their employer is either not providing coverage or is providing what the federal law defines as unaffordable coverage. What specifically must I communicate to my employees? The federal Departments of Labor and Health and Human Services are developing the final rules/guidance on employer responsibilities for this issue. While legislators in Washington have chosen to develop the new government state-based health exchange, not all states have chosen to do so. The requirements for the information that must be shared will thus be different among the states and those details are currently being finalized. This is intended to inform employers about provisions of the Patient Protection and Affordable Care Act and how those provisions may affect them. This information should not be construed as legal or tax advice, and readers should not act upon the information contained therein without professional counsel.
March 2013 | 27
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Ask the Expert | Restaurant Profit Coach
Focus your training on understanding By Rick Braa, CHAE
Q: It seems like our training is not as effective as it should be. How do I make my training investment pay off?
A:
There is a clear industry slide downward in service over the last few years. There is likely one culprit— understanding the “why” of hospitality. Effective training needs to focus on understanding—not imparting knowledge. Employees can know a lot about something but not really understand the important reason behind it. Why do you want them to offer appetizers, beverages, special entrees, dessert, a legitimate greeting and a thank you? Why do you want excellent product quality, prepared quickly? Why do you want a sparkling clean facility? People can forget what they know but they never forget what they understand. When was the last time you needed a refresher on tying your shoes or brushing your hair? Obviously, you understand how to do these things and will never have to be taught again. When was the last time you recited a few of the elements from the Periodic Table in chemistry? Likely, you would need to brush up on it. What’s the difference? Tying your shoes and brushing your hair have real meaning and application to your life and are more important to you and you have a high level of understanding. At one point you may have known the Periodic sign for Iron, yet today you may not be able to recall it at all. The most successful companies continually train their people to a level of understanding and where there is understanding there is breakthrough and paradigm shift. Take the time with each training technique to answer the key question of “Why?” Use these techniques to move your training to a culture of understanding: Be repetitive. Every player that enters the NFL is a great player. So why do they practice? Professional coaches explain that amateurs practice in order to get it right, but professionals practice so they don’t get it wrong. Practice the same activity over and over and over. Use a simple technique called the five steps of training: 1) Tell the trainee what you are going to train and be clear on why. 2) Show the trainee how to perform the activity correctly. 3) Have the trainee tell you how he or she is going to perform the activity. 4) Have him or her show you how to do it. 5) Discuss the result after the activity is complete. Check for understanding not just knowledge. This allows for all learning styles to be involved: auditory, visual and kinesthetic. Use Workshop training. This is structured classroom-style learning and one of the most impactful and positive training
30 | warestaurant.org
techniques. Set an agenda to follow a similar format as below: For a 60 minute session Lecture to include a dynamic presentation on the material or video: 15 minutes Work in small groups on worksheets: 15 minutes Small groups present to the larger group: 15 minutes Recap significant learning points: 15 minutes Learning is locked in by forcing individuals to discuss the issues, find solutions, then stand in front of their peers and present their findings. Public speaking is a common fear, and fear has a significant influence on creating a presence in the moment. If someone may have to present to the group, he or she is likely to pay close attention and have high recall of the content. The goal is to create a teacher because those who know can do; but those who understand can teach. Use multimedia. One underutilized training method is video. The younger generation in the workforce is wired for visual learning mainly because they were born with a computer in one hand and a video game in the other. We live in an age where capturing video is easy and inexpensive. Video can also be watched repetitively. But don’t stop there; use slide shows, webinars, voice recordings, presentations and other modes for learning. Use e-learning techniques and programs that require interaction, problem-solving and online testing. The multimedia training must be focused on building understanding on top of knowledge. Effective training features multiple teaching methods and a solid philosophy behind the training. If training is simply about knowledge it will never take, nor will the team realize its full potential. The goal is a workforce of people that “get it” with a high level of understanding the real meaning of product preparation, hospitality and service. For a more information on improving profitability and driving sales, contact AMP Services at rbraa@ampservices.com. Rick Braa is the founder of AMP Services, an accounting and consulting firm specializing in helping companies grow profitability. He also leads the WRA’s Consulting Network.
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