Washington Restaurant Magazine Winter Edition 2014

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WA S H I N GTO N

RESTAURANT

Winter Edition 2014

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Inside Features

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What wellness means to restaurants

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Health Insurance – Who is covered?

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Affordable Care Act: What’s next?

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Health-care timeline

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Affordable Care Act resources

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Stay at Work: A win-win for employers, employees and taxpayers

Other stories

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WA S H I N GTO N

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Winter Edition 2014

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Lex on Tech: Video’s role in the restaurant business

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News Briefs

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Unions and restaurants – How union marketing and PR impacts restaurants

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WRA Government Affairs Update

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What wellness means to restaurants

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Member Spotlight: How three restaurants are coping with the Affordable Care Act

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The WRA Education Foundation: What it can do for you

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Calendar/New Members

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Marketplace

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Grow profitability by retaining loyal guests

On the cover The Affordable Care Act is one of the most complex and far reaching pieces of legislation ever. It will effect every restaurant in numerous ways. This issue of Washington Restaurant Magazine will help you be prepared for the big health-care changes that are coming soon.

October 2014 | 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.

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Video’s role in the restaurant business By Lex Nepomuceno, Executive Editor Being in hospitality, it is easy to overlook various mediums in communicating to our customers or staff. One of the fundamentals of our industry is dealing directly with consumers, potential customers and new employees. However, there are only so many hours in a day, and resources are getting thinner with every new regulation or tax. Video can play a major role in growing and managing a restaurant. Right now, we will just focus on getting new customers. But first, we need to tackle those questions going through your mind: Isn’t video too expensive to create? What do I know about making videos? To answer these questions, you will need to let go of the traditional expectations you have already attached to video creation. YOU DO NOT NEED TO BE A VIDEO EXPERT TO MAKE GREAT VIDEOS. Almost all of the most viral videos found on YouTube were done by amateurs only armed with a smartphone and a neat idea. There is no need for big budgets or even small budgets, for that matter. One of the nice things about online videos is that viewers don’t expect great production, but they do expect worthwhile content. Getting new customers Did you know YouTube is the second largest search engine in the world? It is second only to Google, which also happens to own the video giant. Most restaurant owners already know the value of an effective online presence, but video has become an important part of this ecosystem. Think about your competition and how you can “one-up” it by offering helpful and/or entertaining video content while everyone else settles on static websites and the same old social media posts. What types of videos could you make to promote your restaurant? There are a ton of creative video concepts that could be made inexpensively and attract potential customers. The following are just a few ideas that could get your creative juices flowing: 1. Popularize your product(s) – If you are trying to launch a new menu item or contrast your products with your competition, a video of you passionately creating a new dish, as can be seen on the Food Network, would provide a nice, personal flair to an otherwise impersonal menu item. 2. A “Why did I start this restaurant?” video – It sounds simple, but you would be surprised at how many people would be intrigued by this type of video. Think of it as a form of “cause marketing,” but you are the cause. It isn’t just consumer tastes that are getting more demanding. Customer motivations are also in play. Diners may choose one restaurant over another if they realize the business supports the same causes they do. However, motivations can also be applied to shared passions, such as healthy foods, tasty foods or first class customer service. This type of common passion can easily be highlighted with a two minute video of the owner talking about “why” he/she started the restaurant. What’s the best way to start making videos? Just dive right in! Creating effective videos is easier than you think. You already have a smartphone with more video processing power than professional video equipment from just 15 years ago. You already take videos of your pets, kids and trips, so why not start making videos for your business? ▪


Primary Source of Information | News Briefs Minimum wage increase announced The Department of Labor and Industries announced that on Jan. 1, 2015, Washington’s minimum wage will increase 15 cents to $9.47 per hour. Washington is one of 10 states that increase the minimum wage annually based federal the Consumer Price Index for Urban Wage Earners and Clerical Workers. The change will affect more than 67,000 workers, based on full-time equivalent positions according to the Washington State Employment Security Department. The per hour increase will total $312 per year. The minimum wage applies to workers in all industries, including agriculture, although 14 and 15-year-olds can be paid 85 percent of the adult minimum wage, or $8.05 an hour.

Restaurant Success has three main components:

A comprehensive online guide for navigating city, county and state regulations involved in opening and operating a restaurant in Seattle; Dedicated customer service and technical assistance led by a new restaurant advocate in the City of Seattle’s Office of Economic Development; and Ongoing regulatory reform and process improvements across city, county and state agencies that interact with restaurant entrepreneurs. The website can be found at http:// www.growseattle.com/restaurant. ▪

Washington has the highest state minimum wage in the nation, followed by Oregon, where the minimum wage will increase to $9.25 – an increase of 15 cents – in 2015. ▪ Save the date – Hill Climb coming on January 26 Please plan to join us for Hill Climb and the Taste Our Best on Jan. 26, 2015, in Olympia. This event is your ticket to a conversation with lawmakers. Running a business isn’t always easy; laws and regulations can make it even more difficult. That’s why the WRA organizes Hill Climb and Taste Our Best each year. It’s the perfect way to ensure that your legislator knows exactly what you need to be successful. Later in the evening, the Taste Our Best legislative reception brings together restaurateurs and legislators for a night of the industry’s best food and finest beers and wines. This relaxed environment gives industry leaders a chance to socialize and visit with the state’s elected leaders. If you would like information on becoming a sponsor, would like to be a restaurant at Taste Our Best or just have questions, please contact the WRA’s Shannon Garland at shannong@warestaurant.org. ▪ City of Seattle partners with the WRA to rollout Restaurant Success website The WRA is proud to be vital part of the new Restaurant Success initiative, an ongoing partnership to provide better service and support for local restaurants. On October 30, the WRA, the Governor’s Office and the City of Seattle announced the launch of the website and program.

Restaurants are benefiting from falling gas prices Gas prices continue to trend steadily lower, and the restaurant industry appears to be among the sectors reaping the benefits. According to preliminary figures from the U.S. Census Bureau, eating and drinking place sales totaled $48.1 billion on a seasonally-adjusted basis in September, up 0.6 percent from August and the strongest monthly volume on record. The September performance represented the seventh increase the last eight months, and each of the monthly gains were at least 0.4 percent. The most recent growth mirrored a downward trend in gas prices, which fell $0.50 since the end of June. This boost in consumers’ disposable income typically benefits discretionary sectors like restaurants, where a large proportion of the growth is driven by cash on hand. For the full article, go to http://wra. cc/mag1114a. ▪ October 2014 | 7


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Industry Outlook | WRA President and CEO ART 3 P ARICTLE 2 ARTICLE OF 4P 3 A ARS T ESRIEOSF A ERI ! ES !

Unions and restaurants – How union marketing and PR impacts restaurants

Recap: The scene is front of us is straight out of an old western – two of the most well-known gunslingers are standing on either end of town; a silence settles over the buildings as each awaits the other to make the first move. Innocent townspeople stare out the windows, hoping they don’t become victims of the pending crossfire. Town leaders are pacing, worried how bad the aftermath might be. Instead of wearing cowboy gear, one of the gunslingers is dressed in a purple shirt emblazed with union letters, and the other is wearing a burgundy visor showcasing a corporate logo. Instead of guns, both have millions of dollars in their holsters. This is not David vs. Goliath; this is two Goliaths. Last month, in part two of this four-part article, I talked about how this showdown impacts the regulatory environment. In part three, I will focus on non-regulatory effects. How will you, the local restaurateur who is just trying to make a living, be impacted by the gunfight? Many local restaurants can get hit by ricochet of union ammunition even though these small businesses are unlikely to ever be a part of union organizing efforts. Several progressive restaurateurs have pleaded with political allies and union friends to not be so callous about the results. The get same reply time and again, “Sorry, but you are collateral damage in a much larger fight.” Your reputation is a target of the unions – they need to sway public opinion One of the unions’ biggest dilemmas is that restaurants are part of the second most popular industry in the country, preceded only by software. In order to change people’s view of restaurants, it takes a lot of money and an extensive smear campaign against the whole industry. People adore their neighborhood coffeehouses, diners, bistros and bar. The public recognizes the high failure rate in the industry. Restaurants are usually owned by a neighbor or someone from the PTA. So unlike attacking a massive manufacturer or “big tobacco,” this fight is

Anthony Anton, president and CEO

against businesses the public likes. Unions are spending huge amounts on PR firms and hiring temp workers to give the appearance of big rallies. They know they can’t win the battle without the hearts of the people. You could be a victim of industry consolidation Large hotels, grocery store chains and retailers that have lost or ceded to organization efforts have survived because they successfully push out most smaller or midsized competition. These bigger businesses can absorb the higher costs and inefficiencies of belonging to a union. If the impacts of the union legislative agenda force the closure or consolidation of thousands of small businesses, that’s an outcome both gunslingers would view as a benefit. Consolidation creates more profitable targets for organizers and less competition for corporations. A union presence could trickle down to hit every restaurant An organizing win by the Service Employees International Union against any of the corporate giants would generate millions in dues. Those dues would be used to organize others against mid-size targets and impact a system where unions haven’t had a stronghold. In our industry, the career ladder usually crosses six or more restaurant companies. Therefore, you would be far more likely to hire employees from a union background who will bring those traits into your culture. The story continues So with the impacts and risks identified, 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. In next month’s final section of this article, I will highlight what our next steps within the hospitality industry can be in response to the threat of being caught in the gunfight. ▪

October 2014 | 9


WRA Government Affairs Update By Stephanie Davenport, contributing editor

The last month has been a busy one for your WRA team, and the upcoming months will be even busier! The holiday season is a demanding time for your workplace as it is also in government affairs circles. The 2014 general election was held on November 4. At the time of this writing, the results are unknown. The 2015 legislative session will begin on January 12. The election may change the landscape – Hill Climb is an opportunity The results of the November election decide who the GA team will be working with in the Legislature for the next two years. In 2013, the Senate was controlled by the Majority Coalition Caucus (MCC): two Democrats and 23 Republicans. The MCC originally took control of the Senate by a one vote margin, but gained a two vote margin with the election of Sen. Jan Angel, R-Port Orchard. If the outcome of the 2014 election changes the make-up of the Senate, the WRA will have new people and challenges to negotiate. That is why it is more important than ever that you attend WRA’s Hill Climb and Taste Our Best reception on January 26. Each year, the WRA organizes meetings during Hill Climb to provide restaurant operators an opportunity to interact one-on-one with legislators and talk about important issues. The Taste Our Best legislative reception brings together restaurateurs and legislators for a night of the industry’s best food and finest beers and wines. This relaxed environment gives industry leaders a chance to socialize and visit with the state’s elected leaders. Please attend on January 26. Look for more updates via email! Recent action on minimum wage and other labor laws In the last month, the WRA has continued its efforts to work on minimum wage and other labor related issues. In Seattle: The WRA secured a seat on the Minimum Wage Rulemaking Committee along with along with the Seattle Metropolitan 10 | warestaurant.org


Chamber. The work on this committee will begin in early November. We will keep you updated on our progress. Three public meeting are also being held in early and midNovember to inform rulemaking for that Minimum Wage Ordinance that we plan to attend and monitor. The Labor Standards Advisory Group’s work came to a close. The goal of the group was to discuss strategies on how the city could most effectively handle all current city labor laws. A representative from the Seattle Restaurant Alliance and Seattle Hotel Association was chosen to participate on this group. After two months of work, the group came to a close and forwarded a set of recommendations to the mayor and Council. There are many different viewpoints expressed in the final document. Our industry does not agree with all of them, but overall, our responsible and balanced recommendations on how the city should approach labor standards exist throughout the final document. It is fair to say the process was a significant success. In Tacoma: The WRA is in continued negotiations with the mayor and City Council members. The City Council has been approached by representatives of $15 Now with requests to take up the living wage issue. However, the Council hasn’t demonstrated an interest in this. The mayor has announced that she will be proposing a mandated paid sick leave ordinance. The WRA is working closely with the mayor on this issue in order to ensure it is equitable for everyone – employers and employees. Statewide: The GA team held meetings around the state to discuss plans for key issues impacting hospitality sector businesses. The meetings were a success and provided an opportunity for members to hear the WRA team’s suggested priorities, view the outline of our draft issue matrix and weigh-in on our legislative agenda. An overarching concern voiced by members was the possible impact of an increased minimum wage in their area. From

these meetings, the GA team was able to receive feedback to prepare a final draft priority issue matrix and legislative plan for review and approval by the Government Affairs Committee. Local Recently, the WRA was key in helping to form the Hospitality PAC with joint restaurant, hotel and nightlife members. The group is currently working on fundraising and election strategies. The WRA is also working with SRA members and other coalition partners to identify potential elected officials for the Seattle City Council race. Additionally, the WRA and our members, recently helped to mitigate the King County Health Department’s high and exorbitant proposed permit fee increases for the coming year. Fee increases similar to those in the past (3-5 percent were expected now that the economy has started rebounding, but some of the proposed adjustments were between 30-100 percent). The King County Board of Health is currently reviewing the fee structure. We will keep you updated when a new proposal is released. LCB accepting comments on catering license rules Last legislative session, the WRA worked with the Legislature to pass a bill to allow catering businesses the opportunity to sell and serve alcohol. Under previous rules, only restaurants with a catering endorsement were authorized to sell alcohol at catered events. The bill that passed requires that businesses operate as legitimate caterers, and comply with similar requirements as current restaurants with a catering endorsement. We are pleased that the Liquor Control Board has drafted rules that are identical to current restaurant requirements, ensuring that new licensees will be held to the same standards as current licensees. ▪

October 2014 | 11


What wellness means to restaurants By David Faro, contributing editor

Wellness is a state of optimal health that is oriented towards maximizing potential. A healthy restaurant is one that is moving toward physical, intellectual, emotional, social and environmental wellbeing at all times. The restaurateur who looks only to her bank balance for indicators of well-being misses out on a holistic understanding of what makes her store tick. The restaurant that overlooks the real needs of its employees opens itself up to infectious ideas that may or may not contribute to the overall well-being of the establishment. A restaurant that does not actively seek to understand its role in the community in which it resides - one that does not participate in the civic processes that define many of its operations quickly atrophies. You get the point. Wellness equals wholeness, and wholeness requires people to be aware of their whole being. A healthy restaurant is one where each system is looked at, assessed individually, then calibrated to fit into the complete organizational structure in a way that moves the whole machine forward with as little friction as possible. The well-being of individual restaurants is important to consider, and creating an environment where hospitality establishments can thrive is paramount to the over-all health of a local economy. Local restaurants allow people to move forward. Many stories from upper echelon hospitality professionals start in the dish room or as entry level assistants. Local restaurants treat workers fairly and

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serve a vital role in the communities in which they do business. Healthy restaurants and healthy communities go hand in hand. The system is a cycle. As long as the local environment for restaurants allows them to prosper, they will be a pipeline of entry-level jobs for the community. They will generate the wages that allow young people to attend college and fund dreams. Many American dreams started in a local restaurant, and those dreams continue to be the building blocks of our local cultures across the state and the nation. Restaurants often lead on the issues of our times, and the change to healthy offerings, local products, going green and investing in education are all indicators that being part of a healthy society is a top priority for many restaurateurs. So, do a wellness check on your business; are you providing useful training and career opportunities for your staff? Does employee performance indicate that your business is helping to teach responsibility, time keeping and a strong work ethic? If you are doing these things, you are providing an avenue for young people - with no experience - to move toward a rewarding career. Your healthy restaurant is contributing to a healthy economy, healthy families and a healthy community. Beyond serving great food and being a meeting place for people, being an important part of a community’s fabric is the real role of restaurants, and it should never be overlooked how important the health of your business is to the vitality of the whole state. Local restaurants employ almost a quarter of a million people in Washington. That’s important, too. The health of our industry starts with the well-being of YOUR business. Take care, be aware, be healthy and be well. ▪


Health insurance – Who is covered? By Sheryl Jackson, research editor According to the U.S. Census Bureau’s recent report, “Health Insurance Coverage in the United States: 2013,” below is a breakout of the U.S. population and their health insurance coverage in 2013: 86.6% of people in the US had health insurance 64.2% were covered by private health insurance 53.9% were covered by employment based health insurance

{

Government health insurance

Medicaid

34.3% were covered

17.3%

Medicare 15.6%

For children under age of 19, the percent of those not insured are: 7.6% in total

{

9.8% of those in poverty 7.0% of those not in poverty

Uninsured Rate Using the American Community Survey: 2008 to 2013 (Civilian noninstitutionalized population) 20%

2009 2008

2010

2011

2012

2013

15%

10% Note: For information on confidentiality protection, sampling error, nonsampling error, and definitions, see <www.census.gov/acs/ www/Downloads/data_documentation/Accuracy/ACS_Accuracy_of_Data_2013.pdf>. Source: U.S. Census Bureau, 2008 to 2013 1-year American Community Surveys. Source: “Health Insurance Coverage in the United States: 2013”, United Census Bureau, September 2014 October 2014 | 13


Affordable Care Act: What’s next? By Paul Schlienz, managing editor

Make no mistake about it. No matter what size your restaurant may be, the Affordable Care Act (ACA) of 2010 will impact the way you run your business during 2015 and beyond. How the health-care law affects your restaurant depends, in great part, on whether it is classified as a small or large business. Small or large, however, one thing that holds true for all employers is that they must inform all employees about how they can access Washington’s state exchange. Large employers “Applicable large employers” are defined by the health-care law as those businesses with 50 or more full-time-equivalent employees including full-time salaried and hourly workers and counting part-timers based on the hours they work. First and foremost, large employers generally face an employer mandate that they offer all full-time employees and dependents affordable coverage of minimum value beginning on Jan. 1, 2015. (The mandate phases in; employers with 50 to 99 full-time-equivalent employees have until Jan. 1, 2016, to provide coverage or face penalties. The Jan. 1, 2015, deadline applies to companies with 100+ full-time-equivalent employees.) If employers fail to comply with this regulation, they will potentially face penalties of up to $2,000 per year for each full-time employee. Penalties will begin when at least one employee receives subsidized coverage through the premium tax credit on a state health-care exchange. In calculating their penalties, employers generally will be able to exclude the first 30 full-time employees (For 2015, employers with 100 or more full-time-equivalent employees can exclude the first 80 full-time employees). Employers would also get hit with penalties of $3,000 per year for each full-time employee who seeks subsidized 14 | warestaurant.org

coverage through the exchanges if an employer’s plan is deemed unaffordable or not of minimum value under ACA regulations. According to the ACA’s definition, “affordable” plans are self-only coverage that cost employees no more than 9.5 percent of household income. Minimum value refers to the richness of the plan’s benefits and must meet a 60 percent test. Beginning in 2016, companies of up to 100 will be able to buy health plans for their employees through Washington’s state exchange. In 2017, the exchange may offer plans to employers with more 100 employees. “Large employers should be getting ready for January 1 to comply with their employer shared responsibility requirements, and that’s everybody with over 100 full-time equivalent employees,” said Michelle Neblett, director for labor and workforce policy for the National Restaurant Association (NRA). “It’s also important to note that those employers that are part of ‘common–control’ groups with 50 or more full-time equivalent employees, if they’re offering coverage, need to be tracking starting January 1, so they can report in to the IRS in 2016. The thing that many people with 50 to 99 full-time equivalent employees don’t know is that this applies to them in 2015. Even if they’re not offering coverage, they still are going to have to submit and do the statements, in 2016, to their employees and claim that they’re taking the transition relief to the IRS. Everybody with 50 full-time-equivalent employees or above needs to comply with the reporting requirements under tax code Section 6056.”


“Large employers should be getting ready for January 1 to comply with their employer shared responsibility requirements and that’s everybody with over 100 full-time equivalent employees,” Michelle Neblett, director for labor and workforce policy for the National Restaurant Association

Small employers According to the ACA, a small business is one with fewer than 50 full-time-equivalent employees. This includes full-time salaried and hourly employees in addition to part-time workers counted based on their total working hours. If your business qualifies as a small one, you will be much less impacted by ACA health-care regulations than businesses that employ 50 or more workers. Most significantly, small employers are not subject to the ACA’s employer mandate. Small employers offering coverage may qualify for a tax credit for contributing to their employees’ health coverage. This benefit is available to restaurants with up to 25 full-time employees, based on a 40-hour workweek, who also pay at least half of the cost of coverage for their full-time salaried and hourly employees, and whose employees’ wages average no more than $50,000. Employers who take advantage of this tax credit must purchase their coverage through the state exchange. The maximum credit for the smallest restaurant with the lowest wages is 50 percent. Small businesses that offer health plans are prohibited from imposing annual/lifetime limits on coverage. The plans must cover employees with preexisting conditions. Coverage cannot be rescinded, and children must be allowed to remain on parents’ plans until they are 26 years-old. Keep in mind that small businesses are also subject

to a 90-day limit on maximum waiting periods, and restrictions on flexible savings accounts, health savings accounts and health reimbursement, and will be subject to nondiscrimination rules once guidance has been issued by the Department of Treasury. They must also offer a “plain English” summary of benefits and coverage to employees and are required to report the value of health care coverage on W-2 forms. Look out for some new taxes and fees under the law. Medicare tax rates have gone up for some, and some new taxes and fees imposed on health care plans under the ACA, including the “exchange reinsurance fee,” which is in effect from 2014 through 2016, may hit small businesses that purchase insurance. Get ready “I really am trying to encourage everyone to take a close look at those reporting requirements and instructions, what those requirements are, what changes they will mean,” said Neblett. “It will absolutely mean changes to how you keep track of all this data. The IRS is asking us to track and report a massive amount of data like we’ve never had to do before. There are going to be system changes that need to happen. At the very least, everything has to be collected and recorded on a calendar month basis. You can’t do it by payroll periods. It has to be, for example, January 1 to January 31. That, in and of itself, is going to be a change for our current system. So people need to take a close look at it and get ready.” Whether your restaurant is a small or large business, it is of utmost importance that you stay on top of the changes wrought by the ACA. Don’t take anything for granted. While this law is complex, it is the law, and you are responsible for following it. “It’s going to be important that everyone pay attention to this now as opposed to a year from now,” Neblett concluded. “If you do not begin collecting the required information in January, it will be very difficult, costly and time consuming to rebuild the data you will need to report.” For more information on what you need to know as you prepare for the new ACA requirements, visit the NRA’s Health Care Headquarters at Restaurant.org/HealthCare. The IRS’ draft forms and instructions are posted in the website’s regulatory section. ▪


Health-care timeline Oct. 8, 2009 – H.R. 3590, Patient Protection and Affordable Care Act passed by House.

March 21, 2010 – House agrees to Senate-passed H.R. 3590.

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2 Dec. 24, 2009 – H.R. 3590, Patient Protection and Affordable Care Act (PPACA) passed by the U.S. Senate with amendment.

March 23, 2010 – President Barack Obama signs H.R. 3590 (PPACA) into law (P.L. 111-148).

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4 March 21, 2010 – House passes H.R.4872, Health Care and Education Reconciliation Act of 2010.

March 30, 2010 – President Barack Obama signs H.R. 4872 into law (P.L. 111-152). Combined P.L. 111-148 and P.L. 111-152 are known as the Affordable Care Act (ACA).

Jan. 1, 2011 – Changes to tax-free savings accounts. Excludes costs for over-the-counter drugs not prescribed by a doctor from being reimbursed through a Health Reimbursement Account or health Flexible Spending Account and from being reimbursed on a tax-free basis through a Health Savings Account or Archer Medical Savings Account. Taxes are increased on distributions from a health savings account or an Archer MSA that are not used for qualified medical expenses to 20 percent of the amount used. Sept. 23, 2012 – Private individual and group health plans must provide a uniform summary of benefits and coverage to all applicants and enrollees. The provision applies to all individual and group health plans, regardless of whether they are grandfathered or not.

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6 March 25, 2010 – Senate amends and passes H.R. 4872, Health Care Education Reconciliation Act of 2010.

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Jan. 1, 2013 – Excise tax of 2.3 percent imposed on the sale of any taxable medical device.

House agrees to Senate amendments and passes the Senateamended H.R. 4872.

Sept. 23, 2010 – ACA market reform provisions, such as allowing adult children to remain on their parents’ health plan until age 26, takes effect for new plans or existing plans when they renew. 16 | warestaurant.org

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July 2013 – U.S. Department of Treasury grants transition relief for employers compliance with the employer mandate for tax year 2014.


Oct. 1, 2013 – Exchanges open. Seventeen states and Washington, D.C., operated their own exchange or partner with the federal government on an exchange. Thirty-three states choose to let the federal government run the exchange in their state for 2014. Employee-notification rules. All employers covered by the Fair Labor Standards Act are required to provide written notice to current employees as of this date, and all new hires thereafter, about health care coverage options through the new health insurance marketplaces/exchanges.

Feb. 12, 2014 – Employer mandate final rule issued.

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Jan. 1, 2014 – Individual mandate. With limited exceptions, all Americans are required to obtain “minimum essential coverage” through their employers, exchanges, Medicaid/ Medicare or elsewhere for themselves and their dependents or face potential tax penalties.

Nov. 3, 2014 – End of comment period on IRS draft forms and instructions to comply with employer information reporting.

Jan 1 2016 – Employers with 100 or fewer employees can purchase coverage on the state exchange.

July 24, 2014 – IRS releases first draft forms to comply with employer information reporting.

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Jan. 1, 2016 – Employer mandate covers employers who averaged 50 or more full-timeequivalent employees on business days in 2015.

16 March 10, 2014 – Employer information reporting (IRC §§ 6056 and 6055) final rule issued.

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Jan. 1, 2018 – Tax on high-cost insurance. Imposes an excise tax on insurers of employersponsored health plans (and employer sponsoring self-funded plans) with aggregate expenses that exceed $10,200 for individual coverage and $27,500 for family coverage.

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Aug. 28, 2014 – IRS releases draft instructions to accompany forms for employer information reporting.

Jan. 1, 2015 – Employer mandate begins to phase in. Employers who averaged 100 or more full-time-equivalent employees on business days in 2014 are considered “applicable large employers” for 2015 and will be required to offer full-time employees and their dependents the opportunity to enroll in a qualifying health plan starting in 2015, or face possible penalties. All entities that are members of an applicable large employer and self-funded employers begin tracking data to comply with the employer information reporting requirements.

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22 Early 2016 – Large employer reporting requirements. Each entity in control groups with 50 or more full-time-equivalent employees will be required to file their first annual statement to employees on or before Jan. 31, 2016, about any health care coverage offered during 2015. The same information must also be sent to the IRS about a month later.

24 Jan 1, 2017 – Washington state may choose to open up the SHOP exchange to employers with 100+ employees to purchase coverage.

October 2014 | 17


Affordable Care Act Resources Navigating the complex terrain of the Affordable Care Act and what it means to your business can be daunting. For many, knowing where to begin is the first hard step. How do you remain compliant? How do you know how many FTE’s (full time equivalent employees) you have working for you? What are the upcoming deadlines and what paperwork do you need to have in order? Use the resources below to begin to understand how to incorporate The Affordable Care Act into your business model. Use your smart phone or tablet to scan the QR codes, or type the link URL into your browser. The Affordable Care Act: What you need to do.

http://www.restaurant.org/healthcare

7 Things You Should Know About the ACA

https://www.myedge.org/resources /health.aspx

Understanding the ACA and “operationalizing” it in a restaurant business will be challenging, and deadlines are looming. Download the NRA’s “Affordable Care Act: Next Steps for Restaurateurs” for an overview of the law. http://wra.cc/110514a

The NRA has developed a Notification Tool that makes it simple for members to comply with the health care law’s employee-notification requirement. The online tool helps you inform your employees about exchanges, as federal law requires, and keep records of employees who have read and understood the required notice. http://wra.cc/110514b Employer Benefits Marketplace Created by the National Restaurant Association’s Health Care HQ to provide its members and their employees affordable and high-quality health-care insurance solutions and products. http://wra.cc/restauranthc The SHOP FTE calculator is a quick way to see if you qualify to use the SHOP Marketplace, especially if you have a mix of full-time and part-time employees. The Small Business Health Options Program (SHOP) Marketplace is open only to employers with 50 or fewer full-time equivalent (FTE) employees. http://wra.cc/ftehc2014 Get your questions answered on health-care reform and how it affects your business! The Washington Restaurant Association retained the services of health-care expert Donna Steward to help educate the restaurant industry and individually answer member questions. Every month we conducted a toll-free conference calls where members were able to ask questions relating to the health-care issue and receive a response on the spot. Check out the recording of the conference calls below. http://wra.cc/wrahealthcare 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. Hospitality health care made by hospitality professionals. http://wra.cc/grouphc 18 | warestaurant.org


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October 2014 | 19


Stay at Work: A win-win for employers, employees and taxpayers By Paul Schlienz, managing editor

Every restaurant operator knows it’s no easy task to bring an employee back to work after an injury. The process can be lengthy and costly. Worst of all, the longer employees are out of work, the less likely it is that they will ultimately return to their positions. Fortunately, the Washington State Department of Labor and Industries has a program that saves employers and taxpayers’ money while also keeping injured workers working. The program is called Stay at Work. In a nutshell, Stay at Work is a financial incentive that encourages employers to bring injured workers quickly and safely back to medically-approved light-duty or transitional work by reimbursing them for some costs. Eligible employers can be reimbursed for 50 percent of the base wages they pay to the injured worker. Additionally, some of the cost of training, tools or clothing the worker needs to do the light-duty or transitional work can also be reimbursed. 20 | warestaurant.org


Cultural change “What we’re trying to do is improve the return-to-work culture within the State of Washington,” said Bill Smith, director of the Stay at Work program.”We want to get employers, doctors and workers to understand that being injured doesn’t necessarily mean that you can’t work. While some injuries may prevent you from returning to work for a while, at some point, in most circumstances, you’re going to return to work. We want to get the worker, employer and doctor into communication in order to make the return to work happen as quickly as possible.” Return to work options for employees include working shorter hours or performing transitional work. For example, employees might perform some of their original duties or different duties with lighter physical demands. Return to work can also mean performing a different job temporarily or working in a modified job, which could entail making adjustments to the work site, making changes to the job in order to meet a worker’s limitations or providing tools, equipment or appliances allowing a worker to work within limitations resulting from an injury. “An article in the Miami Herald noted that it cost between $2,000 and $4,000 for an employer to replace an employee with the $2,000 representing an unskilled-type position,” said Smith. “Every time an employer takes a hit on an employee getting injured and not coming back, there are other costs like retraining, overtime and loss of production.” While Stay at Work’s benefits to employers, who are better able to hold on to workers and their skills in the wake of an injury, injured workers also have much to gain from a program that keeps them employed. “It’s been well-documented that when workers stay at home and become disassociated with their employer with no communication between them, the worker can become what we used to term ‘hopeless,’” said Smith. “Once you get into a state of hopelessness, you tend to get into a state of worklessness. It’s been identified by insurance medicine

that those workers have a higher risk of further illnesses, depression and other mental health problems. It just spirals from there.” Big benefits Washington’s Stay at Work program was signed into law by Gov. Chris Gregoire, in 2011, and went live in 2012. It was modeled after a program in effect in Oregon for the past 25 years. As of the beginning of September, 2,884 employers and 10,773 injured workers have been served by the program with $25,760,000 worth of reimbursements going to employers. And none of these reimbursements are tied to medical claims as expenses. “For every dollar the Stay at Work program pays out to an employer, the state is saving about $2.40,” said Smith. “When it is fully mature, the program will save the taxpayers $32 million a year. By helping the workers return to work quickly, they avoid continuing time loss. They avoid the possibility of going on a pension. Those savings are savings to the state.” One of Stay at Work’s many happy customers is Rhonda Warner, director of human resources for Northwest Restaurants, Inc., in Woodinville, which operates Pizza Huts. “I think it’s a great program,” said Warner. “It’s easy to use, and it’s great for both the employee and the employer. It keeps the employee working, but it also makes things a lot easier for the employer. It’s expensive and complicated to hire new employees, and this is a great way to keep them on board by giving them light duty instead of telling them to go home until they feel better.” For more information on the Stay at Work program, go to www.StayAtWork.Lni.wa.gov or call (866) 406-2482. “The concept behind the Stay at Work program of bringing workers back to work quickly in a jobs providers have released them to is well documented throughout the insurance and workers’ compensation worlds as a win-win for everybody,” Smith concluded. ▪ October 2014 | 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: How three restaurants are coping with the Affordable Care Act By Andy Cook & Stephanie Davenport

Major provisions of the Affordable Care Act, a.k.a. the ACA, a.k.a. Obamacare, take effect on Jan. 1, 2015. As we all know, it’s a confusing collection of moving parts and waitand-see policies. Getting the best information compiled is much like herding cats or grasping water. Nevertheless, many Washington restaurants will be affected by this new law’s implementation.

A. Peter Braun: Our risk management team is on top of our most pressing details, they’re pretty sharp. We’re glad to have them as a resource.

Navigating the complexity of the ACA is a challenge to restaurants. In response, we, at the WRA, are reaching out to our members to learn and share what they are doing to stay compliant.

Q. Do you feel you’re ready for the ACA taking effect on January 1?

Joining us in this discussion are Shirley and Steve Simmons, owners/operators of the Country Gentleman, in Kennewick; Peter Braun, CEO of Orchard Foods, in Silverdale; and Chad McKay, president and COO of El Gaucho. Here’s what we learned: Q. Who is handling the implementation of the ACA on your staff? A. Steve and Shirley Simmons: We’re handling the transition in house as the owner/operators. It’s a challenge.

A. Chad McKay: Our insurance advisor, Gary Bylumb, and his team have been our invaluable resource that keeps us updated and ready

A. Steve and Shirley Simmons: This is our goal. We need to be compliant, and are working hard to be. A. Peter Braun: The biggest uncertainty right now is ”Will it be the same rule in a few months as it is now?” It changes all the time. It’s changing as we speak. A. Chad McKay: We’ve always had a health insurance strategy that happens to be compliant with the January 1 implementation. Our challenge will be staying compliant come this spring when our policy will be renewed. The question that hangs in the air is how will it change between now and then? We currently offer insurance for 25 hour per week employees. This could change, and our contribution may have to change as well. We’ll see what state the law is in this spring

A. Peter Braun: We have three people here who have our hands on it. Karin Brandes, our controller, is our primary contributor.

Q. What aspects of the ACA have you struggled with the most?

A. Chad McKay: It’s a team effort of in-house, payroll department, our insurance broker and our HR staff.

A. Steve and Shirley Simmons: How to pay for it. It’s a difficult economic environment here. It’ll be a struggle.

Q. Who/what has been your best resource finding solutions?

A. Peter Braun: Understanding who we have to cover and why. Will there be a flexibility of plans amongst levels of employees? No one seems to know the answer to that.

A. Steve and Shirley Simmons: As a small organization, it’s on us to navigate the sea of information. Quite frankly, it’s a real challenge to find good information buried in the details of law.

22 | warestaurant.org

A. Chad McKay: Understanding the affordability test and the implications should we find that our plan is unaffordable. ▪


RESTAURANTS SERVE. Communities. Employees. Customers. Washington.

WARESTAURANT.ORG/HILLCLIMB October 2014 | 23


The WRA Education Foundation: What it can do for you By Lyle Hildahl, WRA Education Foundation director

SC

The Washington Restaurant Association Education Foundation can give you access to some of these rock star employees. But it takes some involvement on your part. We have 31 high school programs that the foundation partners with to facilitate an industry connection to the teaching and learning environment. You get to tell the

24 | warestaurant.org

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students about the real world, and while they are listening, I was thinking that back when I had you get to recruit. And more importantly, the more you are my restaurant, the landscape was very involved with the students, the easier it gets to find the rock stars in the group. different. We had our challenges, but certainly not at the level restaurant ProStart is just one avenue. We also have connections to owners are facing today. Minimum wage, the community college culinary programs and universities. All are required to have an advisory committee. healthcare, tourism… Washington We can connect you to whatever college is just a really tough place to that interests you, and as a member of their advisory committee, you will do business. One thing have access to the students at the that hasn’t changed college level. is the need for On another front, the capable, qualified, foundation is working motivated on some projects with the Washington State employees that Department of Social want to work, and Health Services, who also have education services districts, Pacific an awareness Mountain WorkSource of the basic Center and some private foundations to foundation skills develop training centers and attitudes around the state for the like being nice, hospitality and tourism sector. More to come on being clean, that. HO understanding PR OL E CO FE Connecting and helping students at teamwork, knowing MP OF C ® ETI high schools, colleges and universities ’S NG A how to solve problems, T THE 2014 BOYD do more than make the heart feel good. If helping the dishwasher, being the you play your cards right and make the local news dishwasher and having a “What more can media aware of the work you are doing with schools, your seats start to fill up in the restaurant because the I do?” attitude. community wants to support you for supporting the kids. “Engaging with Pro-Start is a natural fit for restaurateurs,” said Jacque Farrell, operations manager for Farrelli’s Wood Fire Pizza. “I have been able to get to know students then hire engaging pre- motivated young people. Pro-Start is an amazing way for my stores and myself to get to know our future as well as to help mold it!” ▪


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INDUSTRY CALENDAR December 2014/January 2015 Training Dec. 2

ServSafe® Manager, Seattle

Dec. 8

ServSafe® Manager, Everett

Dec. 9

ServSafe® Manager, Kent

Dec. 11

ServSafe® Manager, Olympia

Dec. 16

ServSafe® Manager, Fife

Jan. 13

ServSafe® Manager, Kent

Jan. 19

ServSafe® Manager, Kent

Meetings Dec. 2

Government Affairs Committee Meeting

Dec. 2

Executive Committee Meeting

Jan. 6

Board Development Committee Meeting

Jan. 7

Seattle Restaurant Alliance Meeting

Jan. 13

Spokane Chapter Meeting

Jan. 20

Finance Committee Meeting

Jan. 27

WRA Board Meeting

Jan. 28

WRA EF Board Meeting

Events Jan. 26

Hill Climb & Taste Our Best

NEW RESTAURANTS Ballard Smoke Shop, Seattle Bitterroot, Seattle Carolina Smoke, Bothell Casa Durango, Renton Central Ave Pub, Kent Chungee’s Drink ‘n Eat, Seattle CJ’s Eatery, Seattle Company Bar, Seattle Firehouse Pub, Buckley La Conner Waterfront Café, La Conner La Corona, Kirkland Little Bird Deli, Tacoma Mammoth, Seattle Moksha Indian Cuisine, Bellevue Over Easy, Bellingham Papa Murphy’s, East Wenatchee Papa Murphy’s Take ‘N’ Bake, Anacortes Sahara Pizza, Black Diamond Sahara Pizza, Snoqualmie Salish Kitchen, Langley Snoqualmie Bowl, Snoqualmie Sojourners, Chelan South Perry Pizza, Spokane Unicorn Bar & Restaurant Inc., Seattle Voila, Seattle

26 | warestaurant.org

NEW ALLIED MEMBERS Deals Ashore Inc. Walter Jackson 25010 235th Ct SE Maple Valley, WA 98038-7914 855.355.3332 wjackson@dealsashore.com http://dealsashore.com/ New mobile app to bring businesses a marketing source they have complete administrative over and to offer consumers a free portal to deals. Special offer: Special offer: 25% off monthly subscription or 2 locations for 1 price. Dorsey & Whitney LLP Josh Piper 701 Fifth Ave Suite 6100 Seattle, WA 98104-7043 206.903.8800 piper.josh@dorsey.com www.dorsey.com We assist new franchisors with their developement and state registration for a reasonable fixed fee. We counsel franchisors, international franchisors, master franchisees, franchisee associations and developers. Industry experience includes hotels, restaurants, professional services real estate, fitness and many others. Inland Data Services Dave Metzger 109 S Scott St Ste B-5 Spokane, WA 99202-2177 509.220.9940 dave.metzger@inland-data.com www.inland-data.com Point of Sales for Maitre’ D and Dinerware software and services. Full service solutions that includes install and support of the point of sales systems. Juice Tyme Inc. June Lee 4401 S Oakley Ave Chicago, IL 60609-3020 773.579.1291 jlee@juicetyme.com http://juicetyme.com Juice Tyme is now one of the nation’s leading foodservice manufacturers shelf stable, bag-in- box concentrate offering an array of beverages spanning the spectrum of foodservice markets - from bars and restaurants to healthcare and school cafeterias and beyond. Loyal Mark LLC Sam Sorbara 3450 Northlake Blvd Suite 203 Palm Beach Gardens, FL 33403-1711 905.726.5343 sam.sorbara@loyalmark.com www.loyalmark.com Loyal Mark offers merchant customizable & dynamic loyalty, gift card and mobile app solutions

that will help increase sales, attain and retain new and existing customers and increase customer frequency. Office Depot Jim Hudson 6600 N Military Trail Rd Boca Raton, FL 33496 253.468.5083 jim.hudson@officedepot.com www.officedepot.com Office Depot strategically develops customized value-add solutions for businesses that include office supplies, copy & print services, furniture, cleaning & breakroom supplies and technology. Special offer: Up to 80% off manufacturers suggested list price (MSLP) Peizer Commercial Real Estate LLC Mark Peizer 121 Windsor Dr SE Sammamish, WA 98074-3420 206.909.3314 mpeizer@comcast.net http://www.commercialmls.com Specializing in the sale of restaurants and bars in Washington for over 30 years. While many sales include the real estate, most involve the assignment and extension of existing leases to new Buyers. Also can be retained as a consultant for the valuation of businesses and the negotiation of Lease Options for Tenants. SlipSafe Tile Ron Leonard PO Box 2574 Friday Harbor, WA 98250 2064188083 ron@slipsafetile.com www.slipsafetile.com SlipSafe Tile products are designed to help mitigate the risk of slip and fall accidents and resulting liability. SlipSafe Tile provides the sensible and inexpensive solution to government mandated slip and fall compliance standards. Strategic Advantage LLC Eric Kantor 3620 100th St SW Ste B Lakewood, WA 98499-4429 2536866140 Venuelabs Neil Crist 505 5th Ave S Suite 300 Seattle, WA 98104-3894 8663337328 neilc@venuelabs.com www.venuelabs.com Venuelabs provides restauarant owners with a consolidated stream of customer feedback about their restaurant by capturing feedback from across the web.


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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.

LED LIGHTING DISCOUNTS Through a partnership with North American LED and the National Restaurant Association, WRA members receive special pricing on LED lighting. Legislation passed in 2007 phases in new energy efficient standards for lighting and phases out the traditional light bulb. To access discounts, visit: www.northamericanled.com/restaurants | User name: NRA175 | Password: NRA175

APRIL 26 - 27, 2015 • PORTLAND, OR OREGON CONVENTION CENTER

Exhibitor REGISTRATION OPEN! Exhibit at the Northwest Foodservice Show to promote and network with the largest group of decision makers and influencers from across the foodservice industry.

TAKE ADVANTAGE OF SPONSORSHIP AND ADVERTISING OPPORTUNITIES CONTACT: Nina Booth at 425.220.7778 or NinaB@WArestaurant.org

VISIT NWFoodserviceShow.com 28 | warestaurant.org

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



Ask the Expert | Restaurant Profit Coach

Grow profitability by retaining loyal guests By Rick Braa, CHAE

Q:

Recently, I spent a week straight in my restaurant covering for my manager while she was on vacation. It appears that fewer regular guests are visiting as I didn’t see many of the people I’m used to seeing. We’ve lost some, so how do I make sure we don’t lose anymore and build some back?

A:

Sales from loyal, frequent guests contribute 60 to 80 percent of annual sales for an average restaurant. Those numbers can be higher in a rural or neighborhood location and lower in a tourist location. According to the Gartner Group, 80 percent of your future profits will come from just 20 percent of your existing customers. Further importance is highlighted in a study conducted by Bain & Company, in coordination with the Harvard Business School. This study showed increasing guest retention rates by 5 percent increases profits by 25 percent to 95 percent. Loyal consumers spend on average 33 percent more than a typical consumer and return more often with zero cost of acquisition. There are several tactics to make and keep loyal guests, including consistency, cleanliness and community impact among others. There is nothing more important than creating a place of connection. Starbucks has grown to over 20,000 stores worldwide; many stores are within a few blocks of one other. Howard Schultz’s vision was to create a third place, beyond work and home – a place to belong. Starbucks is successful because of consumer connectivity to the brand; consumers are part of it and live inside it. What keeps loyalists coming back is an “ownership” stake in the business and a personal interest in building it. They recommend the business, post about it, brag about it and invite others while spending more; they’re evangelists. What happens in the restaurant is what makes them feel this way. The food is expected to be good, the facility is expected to be clean, the service is expected to be timely and appropriate and the atmosphere is expected to be right—those are entry points. The variable in all of this is connection and engagement of EACH guest. Working with some of the best restaurants in the United States provides a rare glimpse into success and failure of many restaurants. Some are busy because of popularity of the food or the chef, but those draws fade and slow down eventually as the next new, hot spot opens and thrives. Restaurants that make the experience about the guest, not itself, have the highest, longest lasting success. Wellconceived restaurants find what consumers want and attract guests because the guest is the star of the show, not the restaurant. Those businesses build and become legendary.

30 | warestaurant.org

To make sure your business is set apart measure these things daily:

Ensure the guest experience is the focus of every

person on staff. From the front desk to the dishwasher, every greeting, clean plate, great product and point of service matters. Engage each person visiting the restaurant, not just the most vocal or visible people. As service becomes a commodity, customization of the guest experience is the differentiator. Use names. One of the busiest restaurants in the country requires servers and front desk to learn and use names of guests while in service. Remember faces. If a guest cannot be recognized by name, the next best thing is acknowledging their presence. Say, “Thank you” to each guest and mean it. Guests are 75 percent more likely to return to a restaurant if they feel legitimately thanked. Measure employee engagement on each shift. Make sure each person on staff has a connection with the management team and feels connected with the business. Create a place where the guest can belong outside the four walls. This can be in the form of a loyalty program, email list or great social media, the point is to communicate often enough so the guest feels “in the loop” and “part of the club.” Evaluate all touch points of the guest experience. Ensure they deliver the brand promise. Strategically, set loyal guest acquisition as a priority and focus. Target, convert and keep guests who will evangelize for your restaurant and you’ll enjoy a thriving, profitable and healthy restaurant. ▪ 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.


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32 | warestaurant.org


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