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Inside
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Features
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The times, they are a-changin’ in the hospitality industry
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Down to the wire: What the Affordable Care Act has in store for us in 2016
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Don’t let digital media’s ground shift beneath your feet
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Automation: A brave new world for hospitality
Other stories
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President and CEO: Restaurants’ new model must include fierce resolve, contagious optimism
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News Briefs
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HOSPITALITY TECHNOLOGY Big data, big responsibilities: Protect guests’ privacy
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Association Update: Collaboration on all fronts
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State Government Affairs update
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Local Government Affairs update
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Stats: Global Palettes
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Workplace fit
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New Members/Calendar
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Marketplace
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Ask the Expert: Ready, set, holidays
On the cover The hospitality industry is facing big changes. Ready or not, you need to get up to speed on the way that technology, labor costs and other factors are re-shaping our business. This Mega Trends issue of Washington Restaurant & Lodging Magazine, focusing on hospitality operations, will help you do just that.
Winter Edition 2015 | 5
EDITORIAL STAFF Publisher, Anthony Anton Executive Editor, Lex Nepomuceno Managing Editor, Paul Schlienz Contributing Editor, Andy Cook Contributing Editor, Stephanie Davenport Contributing Editor, David Faro Contributing Editor, Evan Fassler Contributing Editor, Marianne Scholl Research Editor, Sheryl Jackson Art Director, Lisa Ellefson JOINT EXECUTIVE COMMITTEE WRA Chair, Phil Costello Stop n’ Go Family Drive In WLA Chair, Matt Van Der Peet Westin Bellevue Hotel WRA EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Petrina Director of Business Development, Ken Wells Director of Communications & Technology, Lex Nepomuceno Director of Education, Lyle Hildahl Director of Government Affairs, Bruce Beckett Director of Internal Operations, Bekah Cardwell
510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.warestaurant.org │walodging.com 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 & Lodging Magazine are authorized for personal use only, with credit given to Washington Restaurant & Lodging Magazine and/or the Washington Restaurant Association. Articles written by outside authors do not necessarily reflect the views or positions of the Washington Restaurant Association, Washington Lodging Association, their Boards of Directors, staff or members. Products and services advertised in Washington Restaurant & Lodging Magazine are not necessarily endorsed by the WRA, or WLA, and do not necessarily reflect the opinions of the WRA, WLA, their Boards of Directors, staff or members. ADVERTISING INQUIRIES MAY BE DIRECTED TO: Michelle Holmes Allied Relations Manager 206.423.3902 michelleh@warestaurant.org Washington Restaurant & Lodging Magazine is published monthly for WRA and WLA members. We welcome your comments and suggestions. email: news@warestaurant. org, phone: 800.225.7166. Circulation: 6,310.
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President and CEO
Restaurants’ new model must include fierce resolve, contagious optimism By Anthony Anton, WRA president & CEO This is not a shameless plug, but it may be a little bit of hero worship. I just finished the book American Icon, about Alan Mulally’s fight to save Ford Motor Company. I became a huge fan of Mulally while working for Boeing when he was the CEO. I was hired at Boeing the summer it moved to Chicago, but was not scheduled to start working for the company until the end of September 2001. That changed on 9/11 when I got a call at 10 a.m. from the company informing me that I would start that afternoon. My first task, before I even had a security badge, was to inform legislative leadership the company was about to lay off thousands of workers. That was just the beginning of very tough work facing the company in order to survive in Washington. That day, through no fault of the company, shattered the existing model of commercial airplane building. On paper, there was no way to survive; airlines were canceling orders at a shocking rate, the confidence in air travel plummeted, fuel prices skyrocketed and available cash was drying up. But the company did survive, in my opinion, due to the leadership of Alan Mulally. Not only survived, but thrived. How? If you were around the CEO at the time, Mulally exuded fierce resolve, contagious optimism, a transparent recognition of reality and an adamant adherence to a plan. A few years later, Boeing rolled out the first 787 in Everett. The symbolism of Boeing reemerging stronger is a highlight of my life. I am proud to simply have been a small part of it. The parallels between Mulally’s turnarounds at Boeing and Ford are unbelievable. The Ford team had set a date when the company would be out of money, and that was before another September crisis (the collapse of Lehman Brothers, Bear Stearns and others) shattered the remains of their existing business model. Yet again, Mulally provided a fierce resolve, contagious optimism, a transparent recognition of reality and an adamant adherence to a plan. Ford emerged with a new business model, becoming stronger than ever; its stock went from almost $16, in 2004, to a low of $1.43, to a post-recession high of almost $19. Why am I telling you all this? I get many calls, worried that new proposed labor costs are the end of the world. It’s not. It’s likely the end of your business model as you know it, but you know what? You can build a new business model. There will be restaurants in the future, they will just be different. Summon your inner Mulally! Your employees and your business dream need you to do this. Shake off the negative. Develop a fierce resolve, contagious optimism, a transparent recognition of reality and an adamant adherence to a plan. It will be our honor to help you succeed in doing so.
Primary Source of Information | News Briefs Self-serve beer concept makes a big splash Self-serve soda machines have been a fixture of quick service restaurants for many years. Now, the self-serve concept has come to beer. While the number of fast-casual restaurants and gastropubs providing self-serve beer systems remains small, this innovation will inevitably be coming your way. Not only do these systems cut labor costs, they also boost revenue by encouraging guests to sample what would otherwise be a confusing list of exotic beers on a traditional menu. The technology has another attraction for restaurant operators: It measures and charges by the sip – a big moneymaker – while also reducing labor costs related to bartending. Read the full article at wra.cc/1115a. Restaurants file lawsuit against Washington State Liquor and Cannabis Board The Washington Restaurant Association (WRA) has filed a lawsuit against the Washington State Liquor and Cannabis Board (LCB) in order to challenge rules adopted by the board that restrict options for negotiating prices. The WRA stated its intention to file the suit in September, but the LCB has been unwilling to change its course of action. The WRA was joined by the Washington Lodging Association, Northwest Grocery Association and Costco. In September, the LCB adopted rules that would prohibit businesses from negotiating price on spirits and wine. The new rules set up a system of uniform quantity discounts for spirits, and strict rules around when and how those volume discounts can be calculated. Businesses are prohibited from taking advantage of product promotion and pricing specials, specifically “family plans,” or establishing a customer relationship beyond a single, one time order. The outcome is harmful and unfair for state restaurants, and the WRA believes it will ultimately be found illegal. “We think it’s pretty simple – price should be determined by the willingness of a customer to pay the price, and the willingness of the buyer to sell at that price, the way it works for ‘goods of all kinds,’ as permitted under the law,” said Bruce Beckett, the WRA’s director of Government Affairs. For more information, go to http://warestaurant.org/blog/ga-liquor-pr/. Gallup poll ranks restaurants as second most popular industry People love restaurants. After all, restaurants are important parts of every community. They are gathering places where we often go to celebrate important events in our lives. And this love for restaurants really showed up on a recent Gallup poll where the polling firm asked Americans to rate 25 major U.S. business sectors on which were the most and least popular. For the full article, go to wra.cc/1115mag. Airbnb announces it will collect Washington lodging and sales taxes Starting on October 15, Airbnb began voluntarily collecting lodging and sales tax on behalf of Washington state hosts who use Airbnb as a platform to rent out their home and properties on a short-term basis. While Airbnb’s announcement is a step forward, the Washington Lodging Association joins the American Hotel & Lodging Association (AH&LA) in calling for all lodging establishments, including those in the “sharing economy,” to be held to the same regulatory, licensing, insurance and taxation requirements to protect the health, safety and well-being of their guests. In a statement submitted to a recent congressional hearing on the “sharing economy,” AH&LA raised concerns about short-term online rental companies. AH&LA stated that these companies have obligations to uphold, including taking reasonable steps to facilitate compliance with commonsense safety, security, health and fire standards. It highlighted that some newer market players in the short-term online arena are significant commercial enterprises, including illegal hotels and inns, which need to be reined in. In some jurisdictions, these short-term rentals are illegal, while in others they may violate existing zoning, licensing or other laws in place to protect consumers and the safety and integrity of communities. AH&LA called on state and local jurisdictions to ensure that: Hosts register and obtain a business license and other applicable transient occupancy or vacation rental permits.
Short-term online companies are
not enabling or encouraging illegal activity. Basic health, safety and cleanliness standards are met. All taxes and fees are paid. Zoning laws are followed. Appropriate levels of insurance are in place to protect homeowners, guests and communities. To date, more than 22 states and 100 municipalities are in the process of working on legislation to achieve uniform taxation and public safety standards. Neighbors for Overnight Oversight, a coalition of concerned residents, community leaders, businesses and policymakers, is also speaking out for sensible rules and oversight of the short-term online rental market. The group has posted an online toolkit, which includes sample letters to the editor and useful information on the issue of unregulated and unlicensed accommodation. Read more at www. overnightoversight.com/toolkit. The WRA welcomes Evan Fassler Evan Fassler has joined the WRA as its local government communication manager. In this position, Evan will serve as the liaison between the Communications Department and the local government efforts of the Government Affairs Department. As local governments find themselves under increasing pressure to raise minimum wages and create new workplace regulations, the WRA is focusing, as never before, in the local arena. Evan will be a vital part of communicating these efforts to our members. Evan, who hails from Carnation, in East King County, graduated from California State University, Bakersfield, with a major in political science and a minor in marketing. He served as campaign manager for Washington State Sen. Steve O’Ban, as legislative assistant for King County Councilmember Peter von Reichbauer and California State Sen. Jean Fuller. Additionally, Evan has worked in real estate.
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HOSPITALITY TECHNOLOGY
Big data, big responsibilities: Protect guests’ privacy Big data comes with big responsibilities. If you collect data about your customers, you have a responsibility to protect that data so it can’t be used later for identity theft or other fraud. You should collect, use and store guest data in compliance with applicable laws, regulations and best practices. Setting standards for protecting customer privacy includes, but isn’t limited to, letting your guests how their data is being used. You need to let guests choose whether they want their data to be tracked, and let them know the data you collect is stored and adequately protected. Here are four steps to help you set privacy standards:
Develop a privacy policy and privacy notice.
A privacy policy is your restaurant’s internal governance document, designed to guide the people who handle and manage data collection and analytics in your business. Your policy should outline the steps your company will take to respond to customer opt-out requests in a timely fashion. And it should spell out how you will inform guests about data breaches. A privacy policy is a public statement that discloses the information your company gathers, how you collect it and use it, who has access, whether you disclose it to third parties, and if so, for what purpose. You should post it on your website, at a minimum. Describe how customers can opt out of having their information tracked and collected. The opt-out process should be easy, allowing guests to call a toll-free number or send an email. Comply with the standards you’ve set. Regularly audit and refine your privacy policy and notice. Investigate third parties. If you use third parties to collect or analyze guest data, be sure to ask them about their data-protection measures and whether they adhere to applicable laws, regulations and best practices. Understand the law. As data breaches grow more common, more states are regulating in that area. Make sure you know the laws and regulations about breaches that cover your customers. Respect for customers’ privacy isn’t just good for your business and your reputation. Often, it’s the law. Consulting with legal counsel about your obligations will protect both your business and your customers. (Source: National Restaurant Association)
Big data checklist
Big data equals big opportunities for your restaurant. But where should you start? Use this checklist to generate some ideas. Talk to your POS vendor. Find out whether you’re getting all the information readily available from the data you collect. Take the time to carefully categorize food and beverage items in your POS system. To get the most from your POS data, you’ll need to properly assign your inventory to the correct departments and categories. Evaluate what your payments processor has to offer. You might be surprised at the amount of data about your guests. Find out whether your systems “talk to each other.” Your restaurant is a complex ecosystem of software and networks. You need a way to organize and query that data. Avoid drowning in too much data. Look for software that can integrate unstructured data with traditional, structured data sources. The ability to monitor customer review sites, blogs, forums and social media sites will give you insight about customers, products and competitors. Determine your goals, and identify the type of data you need. Are you revenue-driven? Food-driven? Take advantage of apps like Food Genius, which track millions of menu items in different regions and identify dining trends to predict the popularity of a new dish. Recognize that even the smallest operations can benefit from big data solutions. But size them to fit your operation and budget. You might be able to do some analysis yourself or without spending a lot on new software. Winter Edition 2015 | 9
Hospitality The
industry that serves. People. Careers. Communities.
Register today:
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Association Update: Collaboration on all fronts
The partnership between the Washington Restaurant Association and Washington Lodging Association kicked into high gear last month when a joint operating agreement and master services agreement went into effect on October 1. Under these agreements, the WRA is providing management services to WLA out of its Olympia office, and the two associations are collaborating on fronts in advance of launching a unified hospitality association in 2016.
Shain, owner of the Restaurant Group; Paul Ishii, a WLA past chair and general manager of the Mayflower Park Hotel, and Zahoor Ahmed, WLA’s immediate past chair and vice president and CFO of R.C. Hedreen Company. WRA Director of Communications Lex Nepomuceno is chairing the Rebranding Task Force and is assisted by Marianne Scholl, the WRA communications and events manager and former director of marketing and communications for WLA.
One of the objectives in combining forces is to give Washington’s hospitality industry a stronger political voice. The power that will come with working together on issues was in evidence at the WRA and WLA regional Government Affairs Committee meetings held throughout the state in October. Members from both the WRA and WLA took advantage of the opportunity to meet the expanded GA team.
In September, the Task Force issued a request for proposals for the rebranding and design project, and received a strong response from interested firms, including many of the Pacific Northwest’s leading design firms. Finalists will be interviewed in early November, and the selected firm will start its discovery process with a presentation at the joint meeting of the WRA and WLA Boards of Directors on November 17. The Boards are expected to adopt the new brand at their March 2016 meeting.
“The breadth and depth of the team that will now be representing the interests of hoteliers and restaurateurs in Olympia and beyond is significant,” says Warren Beach, general manager of Holiday Inn Express & Suites, Everett and vice president of operations at SMJ Management. “I was very impressed with the initiatives they’ll be moving forward on our behalf.”
Rebranding & Design Project Timeline RFP Issued: September 2015 Proposals Received from Interested Firms: October 2015 Selection of Branding and Design Firm: November 2015 Presentation to Boards of Directors: November 2015
In preparation for the 2016 launch, a combined task force was established in August to begin working on the development of a name and brand for the new association. Members include Lane Hoss, WRA Board member and vice president of marketing for Anthony’s Restaurants; Arnold
Board of Directors Adopts New Name and Brand: March 2015 New Brand Ready to Launch: Summer 2015
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State Government Affairs update By Stephanie Davenport, contributing editor
The holiday season is approaching, and it is a demanding time for your business and your Government Affairs (GA) team. Throughout the month of October, the team traveled around the state holding meetings with members and lawmakers. We heard from you regarding the policy agenda for next year; as well, we got to discuss your concerns and up-to-the-minute issues in your area. At the regional meetings members also got to weigh-in on policy goals in the Issue Matrix. The matrix is a document that outlines the expected political agenda of state lawmakers by subject, the level of priority for the subject (high, medium, low), our associations’ objectives, current status of the bill, next steps and the team member who will be working on the issue. We received great feedback. The GA team always considers the needs of our members and takes their requests to the Capitol during session to protect your interests. We heard again this year that the minimum wage is a main focus of our industry. We also heard that liquor laws and tourism funding are big priorities. We will be working on these issues through the next couple months and into the legislative session, which begins January 11. The election, Hill Climb and you By the time you read this, the 2015 general election will have been held on November 3. This year, the majority of your state legislators were not up for election. However, 2016 will be a big election year for our state. This November, elections were impactful on a local level (as you can read on the next page). The entire Seattle City Council was up for re-election, and local ordinances that impact minimum wage and other labor laws were on ballots in cities near you. To read about the outcome of the vote, you can subscribe to our Restaurant Weekly email by emailing StephanieD@warestaurant.org. In 2016, all of your state representatives and up to half of your state senators will be up for re-election. Big ballot measures on minimum wage and taxes are likely. So, Jan. 25, 2016, may be the most important date for your year! On the 25th you are invited to attend our annual Hill Climb event. On this day, you can get to know your legislators, meet with them one-on-one and ask them directly about laws that impact you and your business. Prior to your meeting, we will provide you with background materials and talking points, offer you insight into the political process and answer any questions you have. We even set up meetings with your legislator on your behalf. With elections upcoming, this is the best time to let lawmakers know what it’s like to run a restaurant or hotel in Washington state. Hill Climb is followed by the Taste Our Best legislative reception. The reception brings together members and legislators for a night of the industry’s best food, finest craft beers and regional wines. This relaxed environment gives industry leaders a chance to socialize and visit with the state’s elected leaders. Please attend on January 25. Look for more updates via email. You can register for Hill Climb at www.hillclimb.warestaurant.org. 12 | warestaurant.org
Local Government Affairs update By Evan Fassler, contributing editor
Seattle City Council By the time you are reading this, the November 3 general election will have come and gone. The results of these races could have major implications on the hospitality sector. Our Government Affairs team has been busy at work for you. After a successful primary election where every candidate endorsed by the Seattle Restaurant Alliance (SRA) and the Seattle Hotel Association (SHA) made it through to the general election, we are optimistic the outcome of the Seattle City Council races will show positive results. The local Government Affairs team and the Hospitality PAC have been actively involved in the Seattle City Council races by supporting endorsed candidates. After an extensive candidate evaluation process, the SRA and SHA endorsed the following 2015 Seattle City Council candidates for the general election: District 1 (West Seattle): Shannon Braddock, shannonford1.com District 2 (Southeast Seattle): Bruce Harrell, electbruceharrell.com District 3 (Central Seattle & Capitol Hill): Pamela Banks, electpamelabanks.com District 4 (University District): Rob Johnson, rob4seattle.com District 5 (North Seattle): Debora Juarez, deborajuarez.org District 6 (Ballard; Fremont; Green Lake; Crown Hill): Catherine Weatbrook, catherine4district6.com District 7 (Downtown; Magnolia; Queen Anne): Sally Bagshaw, sallybagshaw.com At-Large, Pos. 8: Tim Burgess, electtimburgess.com Minimum wage increase Another issue of major importance in which our Government Affairs team has been actively involved is the minimum wage. SeaTac and Seattle were the first two municipalities in Washington state to introduce a local minimum wage hike separate from the state minimum wage. Tacoma is looking to follow suit.
There is an extreme $15 Now proposal on the ballot that gives businesses no time to adjust. Local business leaders, the Tacoma City Council, and Mayor Marilyn Strickland crafted a reasonable alternative called $12 for Tacoma that will be on the ballot as well. Although the Washington Restaurant Association would prefer a statewide minimum wage so that businesses are not put at a disadvantage, in different cities, the $12 for Tacoma proposal gives businesses time to adjust to the wage increase by phasing in $12 over two years. We’ve been active in the $12 for Tacoma campaign along with local business owners and the Tacoma-Pierce County Chamber with the education of Tacoma voters about the importance of a reasonable phased in alternative. Spokane Spokane is also looking at raising the minimum wage, as an advocacy group called Envision Spokane has crafted a proposition that will be placed on the ballot for the fourth time in a row. The proposition is called the “worker bill of rights” (Proposition 1) and could raise the minimum wage as high as $21 an hour. Seattle If you are located in Seattle and need help understanding how to comply with the recent minimum wage hike, visit our Seattle Minimum Wage Survival Guide at: warestaurant.org/blog/minimum-wagesurvival-guide-crash-course. Paid sick leave Municipalities have also seen an increase in paid sick leave ordinances being proposed at the local level as SeaTac, Seattle and Tacoma have all passed their own paid leave ordinances. Spokane has convened a task force that is currently in the process of collecting public input and researching the potential economic and community health impacts before submitting a draft ordinance. Spokane will most likely move forward with this issue at the beginning of 2016. Bellingham is also considering its own paid sick leave ordinance in the coming future. If you are located in Tacoma and need help understanding how to comply with the recently passed paid sick leave ordinance, visit our guide at: warestaurant.org/blog/paidleave-tacoma-2016 Winter Edition 2015 | 13
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The times, they are a-changin’ in the hospitality industry By Paul Schlienz, managing editor Change is inevitable. Whether it’s good or bad depends on how you approach it. You can either embrace change or resist it, but we highly recommend that you find ways of adapting to it because it’s going to happen with or without you. Running a restaurant or lodging establishment is not the same, in 2015, as it was in 2005, and it’s not the same as it will be in 2020. Minimum wage increases, paid sick leave, new federal overtime laws, federal menu-labeling regulations, scheduling restrictions, a tight labor market – they’re all coming your way, and they’re coming fast. Some of the biggest changes coming down the pike for the hospitality industry are in health care, media and technology. ACA – big impact now, bigger impact in the future Nowhere do you more need to face reality and find ways of coping with change than in relation to 2010’s Patient Protection and Affordable Care Act (ACA). Starting at the beginning of 2016, if yours is a business with 50 or more full-time employees or the equivalent, you will have to meet the ACA’s complicated requirements, which can be costly. Since January 2015, if you have more than 100 employees or full-time equivalents (FTEs), and do not offer affordable health insurance to these employees and their dependents, you are subject to a $2,000 assessment per employee. Employers with 50 to 100 FTEs, too, will be required to offer minimum essential coverage or face a monetary penalty. With the ACA’s complexities, you owe it to yourself to learn more about the Hospitality Industry Health Insurance Trust (H.I.H.I.T.). This benefit of being a member of the Washington Restaurant Association and Washington Lodging Association provides affordable health-care solutions, helping you navigate the rapidly changing ACA environment. Social media and you There was a time when advertising your hospitality establishment was a relatively 14 | warestaurant.org
simple, straightforward affair. Ads in the local newspaper, radio spots, perhaps an advertisement on TV were frequently quite enough. Today’s media environment is more complex than ever before, and you need to embrace the changes if you’re going to reach the tech-savvy Millennial generation, which is the future of our industry. Ever more consumers, especially Millennials, connect with the digital world via handheld devices. Your website needs to be mobile friendly to reach this essential demographic. And you can’t forget social media, especially the big gorilla on the block, Facebook. Be sure and delegate social media tasks to people you trust on your staff. While you do need to maintain ownership, don’t even think that you can handle it all by yourself. And always remember that the WRA is there to help you. Brave new world of technology Technological innovation is moving at a faster pace than ever before, and it is profoundly affecting the hospitality industry. Extreme examples of robot hotels and robot restaurants, where there is little, if any interaction between guests and human staff are starting to pop up in various places around the world. While we don’t believe this full-blown sci-fi-like model will ever be the norm, aspects of robotics are already finding their way into many restaurants, especially in the QSR segment of the industry. Inevitably, when you have high labor costs, a narrow profit margin and low-skilled employees, you are going to find ways of cutting costs, including innovations like electronic ordering kiosks. Ultimately, however, we are in a very people-centric industry. Hospitality means taking care of people, and only a live human being can provide the kind of warmth and interaction many people crave when they come to our establishments. However the balance between human and automated labor is ultimately struck, human workers will be very much involved. So, embrace the transformations coming your way. Although there are many changes in sight, the essentials of our industry will remain the same.
By Andy Cook and David Faro, contributing editors
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Winter Edition 2015 | 15
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Down to the wire:
What the Affordable Care Act has in store for us in 2016 By David Faro & Marianne Scholl, contributing editors
Chances are you did not get into the restaurant or lodging business with an overriding interest in health care. And insurance was probably not your forte.
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Yet five years after the 2010 passage of the Patient Protection and Affordable Care Act, commonly known as the Affordable Care Act, ACA or simply Obamacare, what used to be a dry and wonky subject is now central to the financial success of plenty of hospitality businesses. If you have a large staff, but haven’t become well-versed in the complexities of the ACA, hopefully, there is someone in your organization who has. That’s because by the beginning of 2016, all businesses with 50 or more full-time employees or their equivalent will be subject to the ACA’s complicated and potentially costly requirements. Under the ACA’s employer shared responsibility mandate, employers with 100 or more employers or full-time equivalents (FTEs) that do not offer affordable health insurance to their full-time employees and their dependents have been subject to a $2,000 assessment per employee since Jan. 1, 2015. Employers with 50 to 100 FTEs were give a one-year reprieve to this “Pay or Play Rule,” but as of Jan. 1, 2016, they, too, will have to offer minimum essential coverage or pay a penalty. All of this comes with extensive—most HR managers would say onerous—tracking and reporting requirements, particularly for restaurants and hotels that employ large part-time staffs with fluctuating schedules. The FTE rules pool the hours worked by part-time employees and convert those hours into FTEs for purposes of applying the large employer threshold. Leased employees and in some cases temporary employees must be included in the FTE calculation. Under the current rules, “full time” is defined as 30 hours, meaning employers on the cusp of being classified as a large employer may reach the threshold for coverage with fewer employees than they realize. As to reports, early 2016 will be an even busier time than usual for HR and accounting staff. Employers of 50 or more full-time equivalent employees must join larger employers in submitting
new IRS employer and employee forms for each full-time employee or face significant penalties. In early 2016, smaller businesses that provide health insurance coverage must also file reports on their coverage. On the plus side, employers with fewer than 25 FTEs that provide healthcare coverage may be eligible to file for tax credits in 2016. And all of this looks as if it is here to stay. In October, passage of the bipartisan Protecting Affordable Coverage for Employees (PACE) Act was seen as a dramatic shift from the standoff over the legitimacy of the ACA. The two sides of the political aisle now appear willing to start fixing flaws in the sprawling health-care act. Both the National Restaurant Association and the American Hotel & Lodging Association were leading advocates for PACE, which will preserve the ability of businesses with 50 to 100 employees to buy health insurance on the more affordable large group market. The Congressional Budget Office estimates the PACE Act will save businesses $400 million over next 10 years. Another fix to look for is a correction of the ACA’s redefinition of full-time employment as 30 hours a week down from the traditional 40-hour work week. The NRA and AH&LA have been working together to change this provision which by lowering the threshold for "full-time employment" pushes many restaurants and lodging franchise owners into the large business category at a very steep price tag. Solutions at your doorstep In our own state, the Washington Restaurant Association and Washington Lodging Association have been helping members find affordable health-care solutions since 1999. That’s when the two associations joined together to form the Hospitality Industry Health Insurance Trust, known now to members as “H.I.H.I.T.” “We created a trust with like-minded industry leaders, and doing that afforded us leverage in a number of ways - buying power, partnerships, and robust membership participation,” says Teran Petrina, WRA’s vice president and CFO. “Since then, we have steadily built a strong portfolio of insurance products that have one aim only - to save hospitality organizations money while providing the widest range of benefits possible.” The options provided by H.I.H.I.T are appealing to employers of all sizes, whether they now provide healthcare coverage under the ACA mandate or are not required to provide insurance but do so as a strategic business decision. “Small business owners often assume health care is too expensive and don’t take the time to research all of the options,” said Joe Peoples, H.I.H.I.T. manager. “When people contact us for a simple, no-cost consultation, they are delighted Winter Edition 2015 | 17
ACA
RESOURCES
Internal Revenue Service Sometimes you just have to go to the horse’s mouth, and in the case of the Affordable Care Act, that’s the IRS. That’s because the IRS monitors ACA compliance for individuals and businesses, and it’s the IRS that will assess penalties for failing to comply with reporting and coverage requirements. www.irs.gov/Affordable-Care-Act/ Employers Small Business Administration As a part of its mission to support small businesses and self-employed business owners, the SBA keeps its website up to date with useful information for employers of all sizes. www.sba.gov/healthcare Hospitality Industry Health Insurance Trust (H.I.H.I.T.) Offering health insurance solutions specifically designed for Washington’s hospitality employers and members of the WRA and WLA. Joe Peoples 877.892.9203 www.hihit.com Washington Restaurant Association The WRA has added “health-care solutions” to its extensive list of member benefits, including affordable plans that meet the ACA’s minimum essential coverage requirement and include ACA compliance reporting software. Stephanie Conway 360.581.5788 stephaniec@warestaurant.org www.wra.cc/hcsolutions
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to find exclusive opportunities and savings that are a direct result of a trust built by hospitality organizations for hospitality organizations.” A popular H.I.H.I.T. feature is its ability to provide health insurance plans to businesses with as few as three participating employees, giving them the purchasing power of a large employer group. Owners working in the business can be included in this count. The trust also allows for lower rates on employer contributions and lower participation requirements than available in the open market place. Through H.I.H.I.T., employee contributions can be as low as 50 percent, and only 50 percent of eligible employees have to participate. WRA/WLA members also receive free COBRA administration of their H.I.H.I.T. plans. There are seven plans to choose from in 2016, and new businesses are not excluded from the deep discounts available through H.I.H.I.T. More options for large employers With more than 25 years of experience providing healthcare solutions to its members, the WRA and WLA have been proactive in helping businesses understand and meet the challenges presented by the ACA. Most recently, the WRA’s Business Development team has gotten ahead of the curve by exploring opportunities under the ACA’s Minimum Essential Coverage (MEC) provisions. “The WRA aggressively seeks out the best possible health care solutions for hospitality organizations,” say Ken Wells, WRA’s director of Business Development. “I’m extremely proud of the healthcare solutions we now offer members in cooperation with terrific and committed partners. Our relationship with United Health Care and its ability to augment our offerings is a great example of our efforts.” One of the key lessons is that MEC coverage is an especially good match for hospitality businesses that have large, shift-based and seasonal staffs. The right MEC plan could potentially save large employers like these hundreds of thousands of dollars. Thanks to WRA’s carefully vetted cooperative enterprises, WRA and WLA members can get MEC coverage that meets the ACA preventative care requirements for just $67 per enrolled employee per month. The coverage, provided in partnership with PayneWest Insurance and CLG Employer Resources, can save participating employers from pay-orplay assessments. The WRA’s MEC plan comes with RiskRT, a software tool that uses a company’s existing payroll data to track employees’ eligibility in accordance with ACA rules. This ACA compliance software is especially useful for hospitality companies with fluctuating and seasonal employees because it tracks monthly eligibility in real time and tracks both company and individual measurement periods. It also generates the new IRS reports 6065 and 6066. So, if worrying about what your business should be doing on the health-care front has been keeping you up at night, the WRA has programs that will solve your coverage issues and help you sleep. Even if you’re sleeping just fine, now is the time to consider looking at cost-effective health-care coverage options for the coming year. Whether you’re in need of help meeting your responsibilities under the ACA, looking for cost savings, or have decided that improving your benefits package is a smart strategy in today’s tight labor market, the WRA has health-care solutions you should consider. Take advantage of your membership and call Lesley Webb-Henrt at 877.246.0545 to find out what options are available for you, your business and your employees.
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Don’t let digital media’s ground shift beneath your feet By Andy Cook, contributing editor
Chances are excellent that most of you reading this are connected to the Internet in some way – websites, Facebook, Twitter, LinkedIn, Yelp. If you launched your business into the digital realm following best practices as little as a couple of years ago and have since stayed the course, it’s time to reassess those best practices. Why? Because there are significant differences now. Innovation, monetization and improvement in analytics have shifted the digital landscape in significant ways. Websites and mobile technology Today an increasing number of consumers are engaged in the digital realm by way of hand held devices. Keeping your website updated isn’t enough. Dependent on a score of variables, 50 to 75 percent of your potential customers are looking for you on their phones, and that percentage continues to be on the rise. Your website needs to be mobile friendly. Put yourself in your customers’ position; If you have to pinch your small screens and squint your eyes to find the most basic information about a business, you’ll move on to a competitor with an easier interface. The first thing you should do is find yourself on Google Maps. Make sure you’re there by visiting Google My Business www.google.com/business/. This will also result in the creation of a Google+ page. You may not be interested in Google+, but it’s a growing social media space, and having it will increase your SEO (search engine optimization) making your business easier to be found by your consumers search queries. With mobile devices comes geolocation. Look into third-party
technology partners such as VIA 121, or Venuelabs, which will help you connect with your customers, old and new. Your next most important step is to have your website set up to ensure your customers can find what they’re looking for; statistically, they’ll give you about a minute. Bare minimum, you need an address, a phone number, hours of operation, a menu or reservation information and links to your social media platforms. Other best practices: Keep your website current. Even if you only update it occasionally, you can’t get away with having your Christmas promotions in July. Maintain ownership. Web design for most of us in the hospitality industry may as well be rocket science. We hire out that service; when and if you do, insist that you have full access and ownership. Integrate with Google. If you need to use a link shortener, use Google’s https://goo.gl/. As stated previously, don’t ignore Google+, make it part of your flow; when you post something to your website, post a link on Google+. It will take very little extra time, and it will pay dividends. Social media platforms Recently, there’s been a huge operational shift cross all the major social media platforms. Twitter, LinkedIn and Facebook have monetized. For the sake of space on the printed page, we’ll stick to the big player – Facebook. For many businesses, Facebook IS their website. Just like a website, you need to make sure the important elements of your business are easy to find. You can do this simply by filling everything out about your business. Also, choose Winter Edition 2015 | 19
your cover and profile picture carefully and be sure you are using appropriately-sized images of adequate resolution by employing a cursory internet search for Facebook image guides. Choose the most recent. Not long ago, Facebook was simple; you gained a following through various tactics and those followers would receive the posts you created. Done. Much to the chagrin of many restaurateurs, Facebook changed all that. MY REVIEW
Followership – as it was – fell by the wayside, kind of. In this new modus operandi, your direct bandwidth to your followers is throttled. Less than 20 percent of the people who follow your business’s page will receive your ”organic” (non-paid) posts. There are a variety of ways to increases that percentage. Encourage your followers to give your page a high ranking, use hashtags and post pictures… better yet, post multiple pictures for the same post. Facebook’s algorithm recognizes multiple pictures as good news content sharing, and grants a greater broadcast to your followers.
Furthermore, to achieve the best standing you can on Facebook or any social media vehicle, rule No. 1 is to be social. Engage with your followers. Respond to queries, take a moment to thank positive commenters and be sure to connect with your critics (off site) as well. Many hospitality operators experienced an initial adjustment period to this drastic change, but have since discovered through experimentation that this fundamental shift is for the better. Now, with very little investment, you have the ability to focus your marketing dollar’s target through boosting. Longstanding WRA member Farrelli’s Pizza has enjoyed great success with social media. Farrelli’s social media manager Clayton Krueger spoke at length on this at the annual State of the Industry address. “At first, I didn’t like it… but once I started to experiment, I realized that it’s not only cheap, it works!” said Clayton. “Sure, you have to pay to play, but once we understood how simple it is, we spend only about a hundred bucks a month – across all eight of our stores! We do this for all the different things we have going on across our company, and we can measure the effectiveness. We know the level of engagement, and have access to real metrics that inform us moving forward. It’s been really successful!” Try it yourself. Next time you have an event, create a post for it. Once it’s created, look to the bottom right corner for a 20 | warestaurant.org
button titled ”Boost Post.” This will create a pop-up window with your post on the left and a menu of options to the right. Experiment with your options. Consider your goals and use them to inform your choices. Spend five bucks. Trust me, the learning curve is easy, and it’s kinda fun! Clayton, now a bonafide social media expert, theorizes that Facebook is poised to enter the rating game. “So much effort has been put into check-ins, reviews, and ratings that I’d be stunned to learn that Facebook isn’t positioning themselves to be in direct competition with market share leader, Yelp,” Clayton observed. Another great reason to pay close attention to this feature, and to start using it to your advantage now, not later: Imagine a time in the near future where people can search and sort for your business based on your reviews, ratings and audience engagement. Other best practices: Be realistic with your social media channels. Sure, it would be great to be great across multi-platforms, but the return on investment simply isn’t there, and it’s also an enormous waste of time and energy. Start with the big platforms and go where your audience is. Delegate social media tasks to your staff leaders or trusted employees. It’s unrealistic to handle it all on your own. Just be sure to maintain ownership. Many businesses have lost their social media standing because they delegated creation to staff members who’ve vanished along with all the log-in information. Fight the urge to only post ‘”boosted” content. Doing so will result in loss of followers. A good rule of thumb is to post organic, good news content about two thirds of the time with about one third reserved for advertising. When you do boost your posts, be aware that Facebook has an algorithm to weed out overly promotional content. For instance, pictures with too many words are interpreted as advertisements, and will result in rejection. A small amount of research on this will save you a large amount of frustration. Offer special offers to your followers. Direct your customers to access these special offers by becoming followers. Reach out to the WRA/WLA team and take advantage of our allied network of service providers who can take a lion’s share of the work off your plate and offer virtually turnkey solutions. StephanieC@warestaurant.org | Programs Manager MicheleH@warestaurant.org | Allied Relations Manager
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Automation: A brave new world for hospitality By Paul Schlienz, managing editor
Automation and robotics are coming to the hospitality industry. Big time. Labor costs, a desire for speed and efficiency, a drive for simplification, concerns about improving the customer experience and the rapid pace of technological advancement are all driving this trend. How hoteliers and restaurateurs deal with it is up to them, determined by the type of establishment they run, their budget, their personal tastes, their relative openness to change and innovation, and the expectations of their guests. But deal with it, they must. The automation train has already left the station. Robots in restaurants It’s not exactly the Jetsons, but it’s definitely a peek into the future. A waitstaff is a distant memory and iPads are everywhere in a new San Francisco restaurant where guests can order, pay and eat with little human contact. Due to its futuristic approach, it’s become known as the “robot restaurant.” Eatsa, the restaurant in question, is the first outlet in a company with ambitions to become a national chain. It is nearly fully automated. Eatsa has no waiters or order takers behind a counter. In fact, Eatsa has no counter. While employees work behind the scenes at Eatsa, helping prepare food, this model may change in the future. Plans to fully automate the restaurant’s food preparation are in the works, and might be implemented if these methods prove to be cost-effective. Cost-cutting automation may gather steam as a model for the future in view of the ever rising expenditures required in running a restaurant.
You might not even want to call Eatsa a restaurant. In many respects, it’s more of a food delivery system. The concept of a food delivery system or restaurant, depending on which term you want to use to describe it, with automation and little contact between restaurant staff and guests is not completely new. Anyone who has ever traveled in the Netherlands will have almost certainly encountered the country’s many automats – waiterless restaurants that are a cross between a cafeteria and a vending machine. Nothing new with this concept. These automats, which were also once common in the United States, have been around, in various forms, since the 1890s. Eatsa, however, takes the automation concept to the next level. Guests approach a flat-screen monitor, browse a menu of eight quinoa bowls, each costing $6.95, approach an iPad, tap in their order, customize it and pay. Their names, taken from their credit cards, appeared on another screen. When a food order is ready, a number shows up next to it, corresponding to a cubby where the food will soon appear. The cubbies are behind transparent LCD screens that go black when the food is deposited. Thus, no human involvement is visible. With two taps of the guest’s finger, the cubby opens with the food waiting. Ready or not, the robot restaurant does seem like a concept we’re likely to see more of in the near future. Customer reaction to Eatsa’s innovations are largely positive, indicating that many people definitely are ready for it. Robots in hotels When it comes to robotics, all eyes turn to Japan, where an aging population and declining labor force, provide an impetus for the development of robotics like nowhere else in the world. Not surprisingly, there is now a Japanese robot hotel. When you visit the Henn-na Hotel, which translates as “Strange Hotel,” at the bizarre Dutch-themed Huis Ten Bosch Winter Edition 2015 | 21
park complex in Sasebo, Nagasaki Prefecture, self-service check-in eliminates any need to stand in line at the front desk. If you do, however, venture to the front desk, you will encounter “warm” and “friendly” robots who will even chat with you as they help you check you in. Porter robots carry luggage to and from rooms. Cleaning robots keep the hotel as spotless as Rosie the Robot kept the Jetsons’ house in the much loved 1960s cartoon vision of the future. There is also a robot employed in the cloak room, and objects as large as small bags can be handed over to the robot, who will store them in secure lockers. When guests need their belongings, the robot will simply hand them back to their owners. Facial-recognition replaces room keys or cards for guests who are comfortable with this rapidly developing biometric technology. Swipe cards are available, however, for those guests who are creeped out by being identified by face or have other privacy concerns. Motion-sensor-controlled lighting detects when people are in a room, turning lights on and off automatically, depending on their need. Room lighting can also be controlled through tablets that can also operate other amenities and are included in each hotel room. Radiant panel air conditioning systems utilizing electromagnetic waves to transfer heat directly between objects with no effect on the air in between are featured in each room. The system’s temperature-controlled surface draws heat away from the body when warm, but keeps heat from escaping when it’s cool. Human touch So, where do human beings fit in this brave new world of hospitality? It all depends on which segment of our industry you’re discussing. Quick service restaurants, for one, are already seeing labor saving technology, and will, undoubtedly, see more.
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“It’s inevitable that any industry undergoing massive change will look to technology,” said Scott Dickinson, who spent 29 years as a KFC franchisee in Vancouver, Wash. According to Dickinson, the trend toward automation in quick service has actually been a long time in the works. “Many products that used to be done in house, in quick service, are now coming from manufacturing facilities,” said Dickinson. “For example, 50 years ago, every restaurant in the world cut its own french fries.” Tom Wolf, general manager of the Hyatt Regency Bellevue, sees the lodging industry also embracing new technologies. “Technology is expanding in the hotel world, and we’re going to see more of it in the future,” said Wolf. “Mobile check-in, apps to do anything you want to do – tech is our future. Wolf, however, remains skeptical about anything like the Japanese robot hotel becoming the new normal in lodging’s near future. “Robotics is a prestige item,” Wolf said. “The reason why you do it is because it’s cool, but it doesn’t really improve the guest’s experience.” Which brings us back to the question of where human beings fit in with all the technological advances taking the hospitality industry by storm. Dickinson, who recently opened Costa Vida, a Vancouver, Wash., fast-casual restaurant, has been thinking a lot about the balance between technology and human labor. “At Costa Vida, we do most everything from scratch, so we’re going to be very careful,” said Dickinson. “You want to automate and improve where possible, but you’re never going to totally replace human contact and touch. It would be a very boring and cold world without that human factor. There is a very human need to be taken care of, and the only way we can do this is if we have caring people in the hospitality industry.”
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Stats: Global Palettes
Ethnic cuisines are a long-term trend on restaurant menus. Here’s a look at how consumers are eating their way through international flavors in the United States.
How well do Americans know ethnic cuisines? The MOST well-known cuisines are: Italian
Mexican
Chinese
3 in 5 consumers take pride in having tried a lot of different cuisines.
Korean
Two-thirds of consumers eat a wider variety of ethnic cuisines now than they did 5 years ago.
The LEAST well-known cuisines are: Ethiopian
Brazilian/Argentinian
Where do they get it? Most common on-premises in restaurants: Sushi
Thai
Vietnamese
84% of consumers say they prefer to eat ethnic cuisine in a restaurant focused on that cuisine... But
Brazilian/Argentinian
Greek
Southeast Asian
75% also like it when restaurants with mainstream menus serve ethnic food.
How often do they eat it? Most common as restaurant takeout and delivery: Chinese Mexican Italian
8 in 10 consumers eat at least one ethnic cuisine per month.
1 in 5 consumers eat 7 or more ethnic cuisines per month.
Source: National Restaurant Association, Global Palates: Ethnic Cuisines and Flavors in America Winter Edition 2015 | 23
Workplace fit By Lyle Hildahl, Washington Restaurant Association Education Foundation director
What does it mean to be fit for work in the hospitality business? Focused, rested, clean, fed, smiling energized… It seems that a lot of attention for employment readiness is around experience, knowledge, education and volunteer work, as it should be. I would argue that just as much attention should be given to workplace fitness. Another buzzword for this is health and wellness. Nutrition, rest, mental awareness, attitude and physical fitness are all factors. On one side, schools are reducing physical education classes and playground time for kids. On the other side, schools are building gardens, inviting farmers and chefs into the classroom and improving food quality in the cafeterias. The U.S. continues to talk about how obese and stressed we are as a society, but most of what we attempt to do in response doesn’t seem to work. Health and wellness seems to be treated as a personal issue, not a public issue and for sure not as an employment issue because of HR discrimination risks. I think we need to wake up and start telling our employee candidates what’s required to be workplace fit. We have
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job analysis data that identifies how much someone should be able to lift, and how long they should be able to stand on their feet, etc. We should take it further and let students in hospitality training programs know about the mental and physical demands of working in the hospitality industry. Have you ever waited tables, or been a line cook? If you have, you’ll know exactly what I mean. One of our partners identified health and wellness as a contributing factor for a capable job-ready Latino workforce. As part of their training programs to prepare Latinos for the workplace, it emphasizes health and wellness. Below is a statement from Mike Sotelo, managing partner of Consolidar. “The Consolidar vision,” Sotelo said, “is to connect employers with the growing, capable and job-ready Latino workforce, and provide sustainable careers for Latino parents to financially support and better educate their children. Achieving that vision will require a scalable method of getting participants to visualize success, and to build self-esteem and self-respect.” In a program the Education Foundation is launching with DSHS called RISE (Resources to Initiate Successful Employment) health and wellbeing, balancing work and life is one of the training modules. At one time in my life, I was 50 pounds overweight, tired, depressed and working just to get through the day rather than working to make a difference, improve the quality of my life, the people I served and the company where I worked. Let’s get honest and talk about health and wellness as a contributing factor to career success in the hospitality business.
2016
NORTHWEST FOODSERVICE SHOW
MARCH 20-21, 2016 • SEATTLE, WA
Washington State Convention Center
Presenting Sponsor:
Mark your Calendar FREE ONLINE REGISTRATION IN DECEMBER!
AT THE SHOW: • 400+ vendor booths • Educational seminars and tangible takeaways • Tasting Pavilion of beer, wine and spirits • Hot Product showcase • Networking opportunities
VISIT NWFoodserviceShow.com
EXHIBITORS visit NWFoodserviceShow.com for booth reservation, floor plan, prospectus with sponsorship and ad info and more.
BOOTH SALES / SPONSORSHIP / ADVERTISING CONTACT: MICHELE HOLMES micheleh@warestaurant.org | 206.423.3902 SHOW INFORMATION: info@NWFoodserviceShow.com | 800.645.7350 The Northwest Foodservice Show is Produced by the Washington Restaurant Association and the Oregon Restaurant & Lodging Association.
INDUSTRY CALENDAR Nov/Dec Training Dec. 1
ServSafe® Manager, Seattle
Dec. 7
ServSafe® Manager, Everett
Dec. 8
ServSafe® Manager, Kent
Dec. 10
ServSafe® Manager, Tumwater
Dec. 15
ServSafe® Manager, Fife
Meetings Nov. 11
MSC Sub Committee Meeting
Nov. 16
WRA EF Board Meeting
Nov. 17
WRA Fall Board Meeting
Nov. 18
MSC Fall Board Meeting
Nov. 19
Retro Invest/Retro Trust Meeting
Dec. 1
GAC Meeting
Events Nov. 1517
WLA’s Annual Convention & Trade Show
Jan. 25
Hill Climb & Taste Our Best
Mar. 20-21
Northwest Foodservice Show
NEW HOSPITALITY MEMBERS Auto’s Pub, Vancouver
Silk Thai Café, Tacoma
Bella Luna Pizzeria, Suquamish
Subway Micky Diwan, University Place
Breakwater Seafood, Aberdeen
Tofu Hut, Lacey
Goldies BBQ, Vancouver
Turning Leaf Townhomes, Spokane
Il Sicilano, Enumclaw
Union Square Deli, Union
Kitsap Pizza, Port Orchard
Vinny’s Ristorante, Friday Harbor
McMenamins Anderson School, Bothell
Westside Pizza, Poulsbo
Scotty’s Dog House, Spokane
Wild Buffalo, Bellingham
NEW ALLIED MEMBERS Alliant Employee Benefits Chad Schulz chad.schulz@alliant.com 1420 5th Avenue Suite 1500 Seattle, WA 98101 2424 206.204.9125 http://alliantbenefits.com
Omni M2M John Suk john@omnim2m.com 410 Bellevue Way SE, Suite 205 Bellevue, WA 98004 6649 425.279.7994 omnim2m.com
Alliant provides a full spectrum of employee benefits consulting, risk management and insurance brokerage services to over 20,000 employers nationwide. Our Seattle based employee benefits office offers a consulting model based on creating a custom multi year strategy for you, sourced from your organization’s resources, culture, and people. The goal is to create a sustainable benefits program that you manage, not one the manages you.
Manage, Optimize and Analyze your refrigeration equipment. Protect your refrigerated assets both on site and in route with products from Omni that add sensors and reporting software to your refrigeration equipment that can be easily monitored from your mobile device or customized portal. Special offer for WRA members: 33% off our standard pricing to the public.
Brown Bag Bookkeeping Bretton Jones brett@brownbagbookkeeping.com 1228 N 172nd St Shoreline, WA 98133 5418 206.551.1941 www.brownbagbookkeeping.com Brown Bag Bookkeeping provides bookkeeping and accounting services including payroll processing, with emphasis in the restaurant industry. We have over 30 years of experience in the restaurant accounting field, as well as event accounting. The initial consultation is always free. Email or phone us to discuss how we can save you time and money. Special offer for WRA members: 10% off our standard hourly rate for the first 6 months DRIVE Customer Retention Software Dale Dubberley ddubberley@drivebi.com 6995 Hycroft Rd West Vancouver, WA 98101 604.318.8111 http://drivebi.com DRIVE Customer Retention Software enables restaurants to gain valuable insights abouts their customers’ dining experiences, including how to get them back in more often. Spot trends, improve operations, grow your VIP customer list, and reward employees for improving the customer experience. DRIVE gives owners a 360 degree view of their restaurant. Special offer for WRA members: 25% off a one year subscription of DRIVE Plus or Pro.
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Strategic Business Coalition Alan Haugen wincom1585@msn.com 1725 Pointe Woodworth Dr NE Tacoma, WA 98422 3480 253.952.0180 www.sbcprovider.com Strategic Business Coalition Cost Recovery Program suite of services. Our programs are specifically designed for business owners to help them reduce, recapture and streamline their operational expenses in areas which have the greatest impact such as: commercial property benefit, research and development, property tax reduction, energy deregulation, workers compensation, waste reduction, pharmacy benefit manager audit, company cell phone audit, lease audits, credit card merchant audit, freight/parcel audit, 401k audit and many more. Special offer for WRA members: 10% off tax incentive programs Zero Fee Processing Brian Raynes bapayitforward@gmail.com 314 E Mill St Davison, MI 48423 1444 810.653.9031 www.zerofeeprocessing.com Helping all business’s so they don’t have to pay credit card fees anymore. Special offer for WRA members: No CC fees charged to merchant
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Marketplace EMPLOYEE BACKGROUND CHECK
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According to ACRAnet, the WRA employee background check partner, one-third of job applicants lie on their applications and another five percent falsify their social security number. In today’s economically challenging times, employers are more likely to see a rise in embezzlement and other potentially harmful behaviors. In fact, a reported $4 billion is lost annually to embezzlement and a violent employee incident costs employers on average an incredible $250,000. These sobering statistics make any small business owner cringe. However, employers can protect themselves with a mere $19 investment in an employee background check. Visit warestaurant.org for more information.
Increase your profits by reducing your card processing expenses. Heartland Payment Systems will help you do just that by eliminating outsourcing and middlemen- delivering cost savings and streamlined processes to your restaurant or hotel. Contact HPS online or contact Harry Wagoner for a personalized quote today. Email: Harry.wagoner@e-hps. com | Phone: 405.818.0914
MEDICAL AND DENTAL COVERAGE
BIG DISCOUNTS ON OFFICE SUPPLIES
The Washington Restaurant Association and Washington Lodging Association designed a health care plan just for their 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 Joe Peoples at 877.892.9203 for a FREE quote.
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CARLOS GARCES 425‐291‐5279
425‐291‐5200 WWW.BELL‐ANDERSON.COM
28 | warestaurant.org
MIKE ENGLUND
Employment Practices 425‐291‐5255 Employee Benefits General Liability & Liquor Liability Cyber Liability – For Sensitive Customer Data
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FULL SERVICE RESTAURANTS
QUICK SERVICE RESTAURANTS
Ask the Expert: Ready, set, holidays By Rick Braa, CHAE
Q:
The holidays are fast approaching. I’d like to have a better result coming out of the season this year. What can we do differently through this holiday season?
A:
The holidays are a wonderful time to showcase your restaurant. Decorations and holiday cheer can bring renewal and an opportunity to communicate expectations for something different. For many businesses, the holidays mean higher traffic volume and larger parties along with the highest amount of new local guests visiting your business. The holidays are also the time to over communicate and win new guests for seasons to come. To maximize your opportunity, consider the following: Program special events and menus around each holiday— Thanksgiving and Christmas Eve are increasing in popularity for dining out. Find other special days worthy of celebrating such as Black Friday and Boxing Day, beyond just the traditional holidays, and host special events around them. Through the holidays, design special menus for food and beverage with fresh, seasonal ingredients motivating sharing and different choices than what is normally available during other times of the year. Engineer every menu to maximize profitability, and horde cash for the doldrums of the beginning of the year. Raise check average by increasing the probability of ordering more items or offering prix fixe menus available only through the holidays. Run contests on appetizer, dessert and beverage sales. Additionally, be smart and cross-utilize all ingredients. The last thing you want is a storage room or freezer full of ingredients waiting for another year to roll around. Staff up and be skinny on the shoulders and fat in the middle—Bring people in for shorter shifts during busier times. Provide communication and preparation materials electronically and expect employees to be prepared when their shifts begin with full knowledge of events and special menus. Retrain procedures for large parties and the importance of serving every guest at the table, not just the main people that are most outgoing or paying the bill. Too often, large parties will be 50 percent engaged as some guests may receive more interaction and higher level of service than the others. Every table represents equal opportunity to convert infrequent and new guests to regular guests. Staffing more heavily will provide the extra time to serve every guest with the highest level of
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attention possible while delivering a smoother result from the kitchen. Communicate the importance of situational awareness— During the holidays, ensure the team is especially in tune with the situation of every guest. Read the guest from the front desk to the table to the exit. Be clear on the guests’ situation. Are they celebrating, are they shopping and stopping by, do they want to leisurely enjoy their time with minimum interruption or are they looking to get in and out and get on with their day? Regardless of the situation, speed is the order of the day. Everyone on the team needs to be in high gear whether the guest is in a hurry or not. They will need that extra speed to maximize service and win back guests for seasons to come. Maximize social media—Drive guest behavior by connecting with them on social media. Involve your staff in posting pictures, posting about special events and inviting their friends to celebrate at their business. Invite inactive guests to visit through the holidays to enjoy special events and menus. Focus the team on the importance of increasing Yelp and other Internet scores. While many don’t enjoy being reviewed via social media, the business really has no say in it other than to invite happy guests to review the restaurant. Yelp scores have been studied and tied to sales increases/decreased by Harvard Business School and correlated to a 5-9 percent increase/decrease in sales per star movement. Keep those stars at four or above or find a way to get there. The holidays are rich in opportunity. Be ahead of the season by properly planning and training for a higher level of service position by position. Stay active and program each day as though it were a special day and you’ll see profits that will carry the business successfully into the new year. 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.
HEALTHCARE SOLUTIONS
Are you lying awake at night wondering if you are compliant with all of the healthcare laws? Let the WRA help you sleep better! The Washington Restaurant Association has added “HEALTHCARE SOLUTIONS” to our program offerings. To find out what works best for your business, visit: http://wra.cc/hcsolutions to walk through our healthcare options for your business. Or, ask your broker. Don’t have a broker? Call or email and I will set you up with an expert in our industry!
Contact Stephanie Conway for more information at 32 | warestaurant.org 360.581.5788 or email her at stephaniec@warestaurant.org.