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The

December 2013 Volume 24, Number 12

Memphis Restaurant Association

Message from the PRESIDENT Dear Fellow Members: It’s the most wonderful time of the year! And what a year it’s been. The economy is heading in the right direction. More people are headed out to eat on a regular basis. The Memphis Restaurant Scene is getting more national press than it has in years. And there have been more local and federal regulation changes for our industry this year than one can shake a frill pick at. Hopefully, you’ve been able to take advantage of our educational efforts to protect your business and keep you informed. Our Affordable Healthcare Act panel at the beginning of this month addressed some of the challenges facing our members and explored guidelines for implementation strategies for your business. In May, we partnered with the Shelby County Health Department for a Q&A on the new Health Code. In case you missed these important meetings, recaps are available on the Membership Portal of MemphisRestaurants.com. We’ve been busy on the political front this year too! In January, along with the MRAPAC, we were able to prevent County and City Councils from passing the Wage Theft Ordinance, a poorly crafted ordinance that, had it passed, would’ve left your business open to dangerous lawsuits and actually done little to protect hospitality workers from unscrupulous employers. In March, a local delegation joined members of the National Restaurant Association in meetings with national leaders on Capitol Hill to address our concerns on Minimum Wage Increases and Food Costs, among other issues and asked for help incorporating the Affordable Care Act into our businesses. This summer, with our partner TNHA, we stopped a TABC re-interpretation of a law that would’ve have prevented infused cocktails of any form....tinctures, infused vodkas, frozen drink machines from being served in the state. A frivolous, completely unnecessary ban that would’ve stopped the burgeoning craft cocktail business in Memphis and beyond dead in its tracks. Your membership is at the core of what we do. So thank you for your support and giving us the opportunity to positively shape the Memphis Restaurant Industry. Please continue your support by renewing your membership for 2014. And join us for a celebration of the Past, Present & Future of Memphis Dining at our 50th Annual Banquet on February 23 at The Peabody. Have a wonderful holiday season and a prosperous new year. Slàinte,

Patrick Reilly Majestic Grille 522-8555, FAX: 328-5655 patrick@majesticgrille.com

MISSION STATEMENT: The Memphis Restaurant Association (MRA) is the premiere support organization dedicated to the success of our industry and community now and into the future. We provide useful, accessible tools, educational services and governmental representation to promote the stability and growth of our members. The MRA is dedicated to building community relationships and involvement in order to increase membership and create a spirit of fellowship among its members.

Newsletter

Peace on Earth Good Will to Men


Member Member Spotlight Spotlight

This month’s spotlight shines on Associate Member The Shopping Center Group. Spotlighted members are chosen at random from members who participate in MRA meetings and events.

The Shopping Center Group Shawn Massey and Gary Shanks

Shawn Massey, and Gary Shanks are with The Shopping Center Group a 3rd party retail real estate advisory firm in their Memphis office. Shawn and Gary have been members of the Memphis Restaurant Association since 2011. Why does a restaurant owner need a tenant representative? 1. Do you have the time; resources and expertise to do the market research necessary identify all the potential locations including the ones not readily on the market? 2. Do you know the market effective leasing rates of all the retail trade areas you may consider? This is the real leverage! 3. Do you have both the time and expertise to deal with the various brokers and landlord’s you will encounter while running your daily business? 4. Do you understand that quoted rents include a brokerage fee? 5. If you choose a location and it fails do you have an exit strategy? Very few local restaurateurs utilize the services of a good tenant representative, but there are no savings in trying to secure a commercial retail lease on your own. It’s both complicated and risky. Tenant Representation can: Save you time • Save you money • Increase your profitability • Provide financial analysis Navigate the leasing process • Provide the tenant leverage • Avoid a conflict of interest

CLICK HERE to read more Shawn Massey is an adjunct professor in the graduate real estate program at The University of Memphis and a co-founder, Chairman of the Board for the Memphis Business Academy Charter Schools (K-12grade) in the Frayser area of Memphis, an inductee in Lambda Alpha and the 2014 incoming President for the Metro CCIM chapter. He holds the following industry designations CCIM, CLS and CRX.

Gary Shanks has served on the Board of Directors at The Boys & Girls Clubs of Greater Memphis and LifeQuest Counseling Center. He is a member of the Real Estate Advisory Committee at St. Agnes Academy-St. Dominic School, the Memphis Restaurant Association, and the Memphis Metro CCIM. Gary was named to the Memphis Business Journal’s “Top 40 Under 40” in 2007 and selected as a CoStar Power Broker in 2006, 2007, 2008, 2009, and 2011. The Shopping Center Group, LLC 773 Brookhaven Circle East • Memphis, TN. 38117 P) 901.869.2720 Shawn Massey, CCIM, CLS D) 901.334.5702 • C) 901.461.707 shawn.massey@tscg.com Gary Reed Shanks, Jr. D) 901.334.5705 • C) 901.210.9999 Gary.Shanks@tscg.com

For all your restaurant real estate needs including Tenant Representation, Site Selection and Disposition, choose The Shopping Center Group and their team. They understand that representation is a privilege and that you have a choice!


THA Day on the Hill

OPEN HOUSE

Please mark your calendars for our 2014 Tennessee Hospitality & Tourism Day on the Hill - Wednesday, February 26th! This is our annual legislative action day at the Tennessee General Assembly when we meet with our state legislators face-to-face and discuss with them the important issues facing our industry. We will also be hosting the annual “Pancakes and Politics” Breakfast as well as an evening reception for our members, friends, state legislators, and the legislative staff. Our host hotel is the DoubleTree by Hilton Downtown Nashville. Our Morning Session and Legislative Reception will take place at this venue. You may go ahead and start making your room reservations online HERE. The DoubleTree has offered us the discounted room rate of $159 per night, which will apply to the nights of February 25th and 26th. To receive the discounted rate, you must make your reservations by February 4th, so please book early!

Saturday, Jan. 11, 2014 9:00 a.m. - 1:00 p.m. Wellness facility tours available throughout the day. Exercise classes available: Boot Camp - 9:00 a.m. Mixed Level Yoga - 10:00 a.m. Information available: Model for Healthy Living Medical Clinic and Memphis Plan Diabetes Education Insurance Reimbursement Plan Options Faith Community Outreach / Congregational Health Promoter class Behavior Health Resources Free Blood Glucose Testing and Bone Fracture Risk Assessment

Legal

Church Health Center Wellness | 1115 Union Avenue | Memphis | 901.259.4673 | churchhealthcenter.org

Medical • Wellness • Outreach

New IRS Rules On Mandatory Gratuities Affect More Than Just Taxes January 1, 2014 Effective Date Quickly Approaching By Lisa Lichterman Leach and R. Alex Boals It is a common practice in the restaurant industry to charge customers a “mandatory gratuity” or “automatic tip” for large parties. For years, the Internal Revenue Service (IRS) treated these mandatory gratuities as it would any other tip. Starting January 1, 2014, however, the IRS will treat mandatory gratuities as service charges rather than tips, which will affect reporting and withholding obligations for tax purposes. In Revenue Ruling 2012-18, the IRS reiterated the four-part test governing whether a payment constitutes a tip: (1) the payment must be made free from compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment. The IRS then clarified that mandatory gratuities do not meet the definition of a “tip” under this test. As a result, employers will no longer be able to claim the FICA tip credit under IRS Code Section 45B for mandatory gratuities. Additionally, employers must report mandatory gratuities as wages rather than tips on payroll reports. In addition to these tax consequences, the IRS’s treatment of mandatory gratuities as wages rather than tips will affect the calculation of minimum wage and overtime payments under the Fair Labor Standards Act (FLSA). Going forward, employers will no longer be able to apply mandatory gratuities toward the tip credit for meeting the federal minimum wage. Instead, employers will have to treat mandatory gratuities as wages and include such amounts in an employee’s regular rate of pay when calculating overtime. Employers have several options to minimize their exposure moving forward: • Eliminate all mandatory gratuities, automatic tips, or other service charges. • Use a “suggested gratuity” on the customer’s receipt or provide sample calculations of tip amounts at different rates (e.g., 15%, 18%, 20%). Do not include the suggested gratuity in the total and allow the customer to leave whatever tip he or she deems appropriate. • If you continue to use mandatory gratuities, treat them as wages both for tax purposes and wage and hour purposes. • Manage your employees’ hours to avoid overtime, thereby avoiding the complications that may arise in calculating an employee’s regular rate of pay. Be sure not to include any mandatory gratuities in your calculation of the tip credit for purposes of minimum wage. Regardless of the approach taken, employers will need to review their policies and processes concerning tips and service charges to ensure they comply with the IRS’s new rules in the coming year. Lisa Lichterman Leach is a shareholder and R. Alex Boals is an associate in the Memphis Office of Littler Mendelson, P.C.

Littler Mendelson, P.C. 3725 Champion Hills Drive • Memphis, TN 38125 • Tel: 901.795.6695 littler.com


MRA Health Care Meeting & Holiday Mixer Monday, December2, 2013

After attending the membership meeting and Health Care Panel Discussion, attendees re-grouped in the Peabody’s Corner Bar for fun and festivities!

Buddy Gaynor, Jimmy Z. and Sandy Robertson Brian Dickerson and Mariah Benson

Greetings from US Foods and Jack Pirtle’s

A Holiday Spirit Filled the Air

Randy Jackson and Bob Hicks

Kate Pera, Kelly Johnson and Jamie Chapman

Lana & Shawn Danko

Thanks to our lovely hosts at The Peabody! Dan you are the man!


Celebrating the Season

Terry Sesti

Patrick Reilly and Mary Schmitz

Hale Barclay and Shawn Massey

Danny & Sharron Sumrall

Colin and Traci McDoniel

Carl Webb and newcomer from HCS Aloha recap the meeting with Bill Watkins over drinks Lisa Franklin and Ben Brock

Chuck Hudspeth (shhh..... he has read the entire Affordable Health Care Act)

New Member, Richard Magevney from Blues City Cafe


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Tips

The

Memphis Restaurant Association

Newsletter

The 2013 MRA Board of Directors

“Our Members Hotline to the Association”

President................................ Patrick Reilly, The Majestic Grille 522-8555, FAX: 328-5655 patrick@majesticgrille.com

Vice-President............................ Shawn Danko, Kooky Canuck 578-9800, FAX:578-9808 swdanko@comcast.net

Treasurer......................Lisa Franklin, Interim Restaurant & Bar 818-0821, FAX:818-0819 lisa@interimrestaurant.com

Secretary......... Kate Pera, Catering for U, Alfred’s, Automatic Slims 528-1748, kate@cateringforu.com

Sergeant-at-Arms..... Daniel Bamrick, Peabody Hotel Memphis 529-3687, FAX: 529-3639 daniel.bamrick@peabodymemphis.com

Past President........................................... Mike Miller, Patrick’s 682-2853, FAX:767-9673 redrockmm@gmail.com

2013 Elected Restaurant Officers Andy Ticer and Michael Hudman (Co-Officers) Andrew Michael Italian Kitchen, Hog & Hominy............................... 347-3569 aticer@aol.com / michael@amitaliankitchen.com Samantha Dean, Huey’s..............................................726-9693, FAX: 726-5162 sdean@hueys.cc

2013 Appointed Officers Restaurant Members Eric Vernon, The Bar-B-Q Shop. ........................................................... 272-1277 evernon001@gmail.com Jerry Wilson, Fino’s from the Hill............. 272-3466, jerrywilsonjr@yahoo.com

Associate Members Hale Barclay GEM Distributors...................................744-7005, FAX: 744-7069 haleb@candleland.com Louis Costabile, SYSCO Memphis, LLC....................369-9287, FAX: 375-8855 costabile.louis@mem.sysco.com Rebecca Fowler, Boys & Girls Club of Greater Memphis................ 278-2947 rebeccaf@bgcm.org John Seay, State Systems, Inc............................................................ 489-0421 jseay@statesystemsinc.com Ginger Wilkerson, Athens Distributing............................................... 774-8888 gwilkerson@athendistributing.com Maury Wade, U. S. Food............................ 230-4186, maury.wade@usfood.com Hotel/Lodging Representative: Wayne Tabor, Metropolitan Memphis Hotel & Lodging Assoc................ 525-5491 wtabor@hisdowntownmemphis.com Tourism: Mary Schmitz, Memphis Convention & Visitors Bureau..... 543-5327, FAX: 543-5350 mary@mcvb.org Executive Director: Kimberly Carlson......................... 488-4745, 1-888-836-5061 kimberly@memphisrestaurants.com

P.O. Box 770027 Memphis, Tennessee 38177 901/788-1000 • FAX 1-888-836-5061 http:// www.memphisrestaurants.com E-mail address: dining@memphisrestaurants.com

Important Numbers At a Glance 3R Project (Division of Corrections/ reentry program) John H. Freeman............. 545-3175(office),596-8846(cell) email: John.Freeman@shelbycountytn.gov Project MOST Patricia Melton.................................................... 222-8868 email: patricia.melton@shelbycountytn.gov Commercial Appeal Jennifer Biggs, Food Editor............................. 529-5223 email: biggs@commercialappeal.com Federal Probation Re-entry Program Gloria Simpson.............................................. 495-1460 gloria_simpson@tnwd.uscourts.gov Greater Memphis Chamber Angela Michaels, Manager/Member Services...... 543-3546 email: amichaels@memphischamber.com Memphis Convention & Visitors Bureau Mary Schmitz, Tourist Information Link .......... 543-5327 email: mary@mcvb.org Memphis Flyer Hannah Sayle................................................. 626-3489 email: sayle@contemporarymedia.com Memphis Magazine Marilyn Sadler..................................................575.9451 email: sadler@memphismagazine.com Memphis Light Gas & Water 24 Hour Outage Number: ................................. 544-6500 (after business hours) 24 Hour Emergency Number: ................................... 528-4465 (Call for burst water pipes, gas leaks, power line down) Commercial Resource Center: ........................ 528-4270 (outage information during regular business hours, 7:30 a.m. - 5:00 p.m.)........................ email: crc@mlgw.org Residential & Commercial Electric Outage Reporting (reports status of current outages)...................... 544-6500 Al Sander’s Direct Line .............. 528-4143, 491-5235 (cell) (Use this number during business hours for suggestions and tips on how to best utilize your energy sources.) email: asanders@mlgw.org Memphis & Shelby County Code Enforcement Ask for a Building Plans Examiner...................... 379-4270 Memphis & Shelby County Health Department Otho Sawyer, Assistant Manager.................... 222-9213 email: Otho.Sawyer@shelbycountytn.gov National Federation of Independent Business (NFIB) Randy Horn, Territory Manager...................... 605-5774 email: randy.horn@comcast.net Project Green Fork Margot McNeeley............................................. .292-1700 ServSafe TIPS Alcohol Server Training Certification Richard Zurburg................................................861-2535 rzurburg@comcast.net Tennessee Hospitality Association Melissa McIntyre. ......................................615-385-9970 email: melissa@tnhospitality.net TIPS/TABC Certification Sharon Sumrall......office: 737-6755 or mobile: 569-1207

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TIPS December 2013