At Your Service, Fall 2013

at your

Official Magazine of North Carolina Restaurant and Lodging Association

Service Carolina Brewery

A Sky Blue future

TOPO’s grain to glass success The latest craft cocktails

September 2013 Issue, Vol. 2, Issue 3 www.ncrla.org

table of contents

THANK YOU NCRLA thanks its 2013 Corporate Partners

in every issue

6 11

Letter from the Chair and the President NCRLA Chair Brad Hurley and President/CEO Lynn Minges

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Welcome New Members NCRLA welcomes several new members from across North Carolina

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Upcoming Events Network with North Carolina’s hospitality industry leaders at one of NCRLA’s upcoming events

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Ask NCRLA NCRLA’s experts answers your questions

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A la Carte A sampler of hospitality-related news stories

Benefits of Membership in NCRLA Membership in NCRLA offers educational resources to keep you informed and prepared

features

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Oct. 1 Deadlines New carbon monoxide detector regulations and restaurant concealed weapon laws to go into effect Oct. 1

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Keep it Green Greening assessments for the hospitality sector

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A Sky Blue Future The future is bright for Chapel Hill’s Carolina Brewery

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What’s Brewing Craft cocktails up the ante for distilled spirits

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Secrets of Success TOPO Distillery is a leader in the grain to glass movement

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ProStart News NC HEF Benefit & Golf Classic raises more than $90,000

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Legal Bites NCRLA sees a productive 2013 long session at the General Assembly

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Movers and Shakers Three NCRLA members elected to UNC Board of Governors

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Food Safety News Food Safety Manager Certification to be required on Jan. 1

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Advocacy NCRLA’s 30 in 30 Campaign, Manteo to Murphy Fundraiser need your support

Cover photo of Carolina Brewery taps courtesy of the Pittsboro-Siler City CVB and Carolina Brewery.

NCRLA Executive Board of Directors Brad Hurley, Chair 42nd Street Oyster Bar & Seafood Grill Joel Griffin, Chair-Elect Griffin Stafford Hospitality Jimmy Sizemore, Treasurer JP Steakhouse, LLC Randy Kolls, Secretary Travel & Tourism Board Representative Washington Duke Inn & Golf Club Christina Larson Immediate Past Chair Darden Restaurants Vinay Patel AH&LA Representative SREE Hotels, LLC Billy Sewell NRA Representative Platinum Corral, LLC Lynn D. Minges President and CEO NCRLA Frank Gray General Counsel and Lobbyist Jordan Price Wall Gray Jones & Carlton, PLLC

letter from the chair and CEO Many accomplishments in legislative long session As summer eases into fall, we at NCRLA reflect on the many accomplishments we achieved together on behalf of North Carolina’s hospitality industry in this year’s legislative long session. The accomplishments were many, and included legislation we helped craft, and legislation we successfully helped defeat.

On the positive side, NCRLA drafted, sponsored and passed legislation to prevent frivolous lawsuits against restaurants. We were solely responsible for bringing about House Bill 683 – the Commonsense Consumption Act. We also worked with a coalition of other employer groups to achieve comprehensive unemployment insurance reform. And in response to recent carbon monoxide related hotel deaths, NCRLA worked with legislators to enact sensible carbon monoxide detector requirements for lodging properties.

NCRLA defeated a high profile meals tax increase in Charlotte and in doing so, sequestered several other potential meals tax increases from around the state. NCRLA defeated several troublesome restaurant firearm amendments. NCRLA worked with a coalition to defeat countless bills that attempted to abbreviate public school summers and thus truncate the busy hotel and restaurant seasons in tourist areas.

In order to keep ensuring the passage of laws that are favorable to the hospitality industry, we need your help. NCRLA’s annual PAC fundraiser, Manteo to Murphy, is the largest restaurant PAC fundraiser in the nation. This year’s event is scheduled for Oct. 28 at The Angus Barn in Raleigh, and we hope to see you there. Your support is essential for NCRLA to support North Carolina’s $18.8 billion hospitality industry.

Brad Hurley

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Lynn D. Minges

At Your Service Volume 2, Issue 3 An official publication of the N.C. Restaurant & Lodging Association© OUR STAFF President & CEO Lynn D. Minges Chief Operating Officer Alyssa Barkley, IOM Membership Coordinator/ Office Manager Kristin Worrell Government Affairs Manager Whitney Christensen, Esq. Marketing & Communications Manager Karen A. Mann Education Programs Manager Ranita Bullock General Counsel & Lobbyist Frank Gray Printer Chamblee Graphics, Inc. Graphics and Design Paige Happel Friddle Creative Concepts & Solutions, (336) 908-0966 or paige-css@triad.rr.com BUSINESS OFFICE 6036 Six Forks Road Raleigh, N.C. 27609 Phone: (919) 844-0098 Toll free: (800) 582-8750 Fax: (919) 844-0190 For advertising and sponsorship inquiries, contact Marketing & Communications Manager Karen A. Mann at kmann@ncrla.org, (919) 747-2205 or (800) 582-8750

oct. 1 deadlines

Deadlines Looming on CO Detectors, Concealed Weapons

By Whitney Christensen, Esq.

New carbon monoxide detector regulations and restaurant concealed weapon laws to go into effect Oct. 1

The 2013 Long Session was a busy one for North Carolina lawmakers, with the House introducing 1023 bills in six months and the Senate introducing 728.

The carbon monoxide detectors must be listed by a nationally recognized testing laboratory that is OSHA approved to test and certify to American National Standards Institute/Underwriters Laboratories Standards ANSI/UL2034 or ANSI/UL2075. The detector’s labeling and packaging should specify whether it meets these qualifications.

Of all of the new rules and regulations passed, two that are particularly relevant to hospitality businesses share an Oct. 1 effective date. Hotels must be in compliance with new carbon monoxide detector regulations and restaurants must be aware of changes to concealed weapon laws at the beginning of next month.

Carbon monoxide detectors can be battery-operated or electrical and can also be combined with smoke detectors so long as the smoke detector complies with the above mentioned requirements and is also compliant with ANSI/UL217. All detectors must be installed in accordance with either the standard of the National Fire Protection Association or the minimum protection designated by the manufacturer’s instructions.

CO Detectors Section 19 of House Bill 74 – The Regulatory Reform Act, requires the North Carolina Building Code Council to adopt new code provisions requiring carbon monoxide detectors in certain places within every North Carolina lodging property. By Oct. 1, lodging establishments must install carbon monoxide detectors in any enclosed space having a fossil fuel burning appliance, heater or fireplace and in any room that shares a common wall, ceiling or floor with an enclosed space with a fossil fuel burning appliance, heater or fireplace.

Common examples of these appliances include water heaters and gas appliances in the hotel kitchen. A national carbon monoxide regulation expert estimated that most midsize hotels average twothree carbon monoxide sources.

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Concealed Weapons The General Assembly also passed, and Governor Pat McCrory signed into law, a body of amendments to current North Carolina firearms laws. Of these new laws, one expanded the rights of concealed firearm permit holders to bring their firearms into ABC permitted restaurants and bars, effective Oct. 1. North Carolina has long allowed concealed handguns in restaurants that do not serve alcohol, so long as the restaurant owner does not post a sign forbidding weapons in his establishment, but this bill would now expand that provision to also include restaurants that serve alcohol.

The owners and operators of ABC permitted and non-ABC permitted restaurants alike will have the right to post a notice on the restaurant’s door

expressly prohibiting concealed weapons in their establishment if they so choose. For restaurants electing that option, NCRLA will soon have decals available that will cite the appropriate statute to prohibit firearms. If the restaurant owner elects to allow concealed handguns within his establishment, no signage is required.

Under both old law and this bill, any individual carrying a concealed weapon is prohibited from consuming alcohol on the premises.

If you have any questions about either of these new regulations, please contact the NCRLA offices at 919-844-0098 or email Whitney Christensen at wchristensen@ncrla.org.

To order a door decal prohibiting concealed weapons in your establishment, contact Kristin Worrell at 919-844-0098.

www.raleighbrewingcompany.com

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Keep it Green

Greening Assessments for the Hospitality Sector take advantage of an on-site, no-cost "Greening assessment"

Many hospitality providers are seeking smart approaches to save money, conserve resources, be green and create a marketing distinction as a “green destination.”

Waste Reduction Partners is offering a limited number of no-cost “Greening Assessments” to hospitality businesses in North Carolina.

The Hospitality Greening Assessment is an on-site, technical review of a business’s utility use and environmental practices.

Participants such as lodging, restaurants, conference centers and other tourist destinations will receive a report with a cost/benefit assessment of recommendations to improve management strategies for energy, water, solid waste and recycling efforts. These WRP technical services are supported by a grant from the US Environment Protection Agency. The assessments also can help hospitality businesses pursue recognition through the NC GreenTravel Initiative.

Who is eligible for a hospitality greening assessment?

Any hospitality-related business is eligible for a greening assessment on a first come, first served basis. Only 25 no-cost greening assessments in North Carolina will be provided under this EPA-funded initiative. WRP is targeting businesses that have not been constructed or significantly renovated in the past ten years. Businesses must complete a preassessment survey before Waste Reduction Partners staff will come on-site to conduct the review.

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Why participate?

Many hospitality businesses are seeking smart approaches to save money, conserve resources, be green and create a marketing distinction as a “green destination.” These Hospitality Greening Assessments are unique in combining energy and water reduction assessments, solid waste recycling guidance, and other sustainability recommendations into one technical assessment. Businesses can use these assessments to meet the requirements of the NC Green Travel Recognition Initiative or other green business certification programs.

What evidence does the lodging industry have that shows travelers are seeking green hotels?

A survey by Deloitte in 2008 found that 34 percent of business travelers seek out hotels that are environmentally friendly. The same survey also found that 40% of business travelers were willing to pay more for green lodging.

Our facility is older and our budget is small. Would WRP’s assessment be worthwhile for us?

Yes, WRP can often provide the most helpful recommendations to facilities that are older because the fixtures in these facilities might not be as efficient as the latest innovations in the marketplace. Even if your budget is small, WRP’s assessment can give a facility a strategic plan for future renovations by identifying which upgrades will give you the greatest return on your investment.

To learn if your business can benefit from a Hospitality Greening Assessment, contact Russ Jordan with Waste Reduction Partners at russjordan.wrp@ windstream.net or call 828-251-7477.

Benefits of Membership in NCRLA Membership in NCRLA offers educational resources to keep you informed and prepared Keeping abreast of changes to food codes, health department mandates, and health care reform can be daunting while meeting the demands of running a fast-paced business. At NCRLA, we make it easy. We follow these changes for you and offer free seminars, webinars, and white papers on a wide variety of topics of interest – all free of charge to our members. We offer free consultation to help your business prepare for and comply with health department inspections.

And, our full-time staff attorney offers up to four hours of free legal advice a year to our members in order to help you navigate the unique issues faced by hospitality industry businesses like yours.

Webinars, seminars, training and advisories – NCRLA offers online and in-person training, professional development and educational opportunities to keep you up to date on such things as health care reform, food safety, FDA food code regulations, labor laws, ADA requirements. We can also offer tips on best practices in marketing, social media, and business expansion.

Annual Law Review – Let the NCRLA attorney analyze and summarize the latest laws that affect your business, and what they mean to you. This is a members-only resource.

Free legal advice – Members are eligible for up to four hours of free legal advice a year, provided by Association counsel – the expert in issues that matter most to you and your business.

Health Department Regulations Consultant – Members are eligible for free consultation from an on staff expert in food safety and health code compliance. We serve as your advocates at the state and local levels to help protect yourself and your business. Rely on our expertise in FDA food code regulations, health inspections and best practices to assist your business with proper compliance.

Hotel and Travel Research – NCRLA’s lodging members receive a discount of up to 31 percent on various customizable regional reports and industry profiles from Smith Travel Research, including the free regional STR Report each month.

Go to ncrla.org/membership for more detailed information on how membership in NCRLA can help your hospitality business.

A Sky Blue Future The future is bright for Chapel Hill’s Carolina Brewery Robert Poitras wasn’t much different from most other kids attending UNC Chapel Hill in the early 1990s. He liked beer. But it took a study-abroad trip to Europe during his sophomore year at UNC Chapel Hill to instill a permanent appreciation of good beer.

By Karen A. Mann

“It was nothing like what we had in the United States,” he says. “It was just really unique. The flavors were wonderful.”

Beyond beer, Poitras also discovered new flavors in bread, wine and cheese, and became fascinated with the European tendency to use local ingredients whenever possible. After returning home, he spent the summer waiting tables in San Diego, and discovered many of the same trends in brewing and locavore eating happening on the West Coast. Like in Europe, the food and drink he discovered in San Diego wasn’t homogenized. Instead they were locally sourced products with better flavor.

Poitras then began travelling the country, touring microbreweries and seeking out new flavors. He dabbled in home brewing, but found he couldn’t make exactly what he wanted. Unsure of what career path to take after graduation, Poitras spent his senior year writing the business plan for Carolina Brewery.

Construction began in June of 1995, one month after Poitras graduated from UNC Chapel Hill. Poitras recruited English brewmaster Jon Connelly from Legend Brewing in Richmond – a graduate of the prestigious Siebel Institute in Chicago – and opened the brewpub the following February.

The concept has been a success. Carolina Brewery is now the fifth oldest brewery in North Carolina. A second brewpub, Carolina Brewery & Grill, opened in Pittsboro in 2007, greatly expanding the company’s brewing and wholesale sales capacity.

Within the last three years, Carolina Brewery has expanded its wholesale operations and now services accounts across North Carolina, Charleston, 12

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South Carolina and surrounding beach communities, Rock Hill, SC, Knoxville and Nashville, Tennessee, Virginia Beach, Hampton Roads and Williamsburg areas of Virginia and, most recently, Georgia.

Now it seems that North Carolina beer drinkers have gained the same appreciation for craft brews that Poitras found years ago. North Carolina is now home to more than 80 microbreweries, nanobreweries and brewpubs. Within the last year, three of the nation’s largest craft breweries, Sierra Nevada, New Belgium and Oskar Blues, have opened facilities in Western North Carolina. Poitras believes the brewing boom is due to two major factors: North Carolina’s reputation as a tourist destination with abundant natural beauty, and the pride our state’s brewers take in their product.

“We have a lot of pride in what we make in our state.

Also, I think the North Carolina breweries today are making very good beer,” he says.

“We ought to celebrate what we’re doing in this state.

We have a great story to tell, and we need to continue to tell this story with our products.”

Poitras also notes that North Carolina’s populace has also changed.

“We have a lot of people who have lived elsewhere.

A lot of people in Research Triangle Park are not just affluent, but also well-traveled,” Poitras says. “North Carolina is a pioneer state, certainly way ahead of our neighbors to the south and the north. I think that speaks to the uniqueness of North Carolina as a tourism destination and the people who have relocated here.”

(Above) Robert Poitras (Right) The taps in Carolina’ Brewery’s Pittsboro location

He also believes that a big reason for craft beer's success is that younger (21-30-year-olds) people and women are now consuming craft beer at a higher pace.

Younger consumers have traditionally favored cheaper beer, and women have traditionally favored wine.

It’s been a big year so far for Carolina Brewery. The Sky Blue Golden Ale, a German-style kölsch won the Bronze Medal at the 2012 Great American Beer Festival in Denver. Carolina Brewery’s beers are now being carried by 16 distributors in North and South Carolina, Georgia and Virginia. That fits with Poitras’ plan for Carolina Brewery to be a regional player in the beer industry.

“We believe the Carolina Brewery name resonates very well in there. People who live in Chapel Hill vacation in the Outer Banks, visit Columbia and Asheville, and vice versa. There’s a lot of crossover in our brand.”

As for what’s next, Poitras is still trying to figure that out. There might be more boutique beers in 22-ounce bottles, and there may be a third canned beer in the next year. Right now Poitras says his plan is to slow down a bit, backfill Carolina Brewery’s markets, and spend more time with family and customers.

“I’m going to get back to my roots,” he says.

For more information on advertising and sponsorship opportunities, contact Karen A. Mann at (919) 747-2205 or kmann@ncrla.org. z

“

North Carolina is a pioneer state, certainly way ahead of our neighbors to the south and the north. I think that speaks to the uniqueness of North Carolina as a tourism destination and the people who have relocated here.

”

Carolina Brewery Copperline Amber Ale BBQ Sauce

A Carolina Brewery classic since 1995, this BBQ Sauce is handcrafted with top quality ingredients and slowly simmered with Copperline Amber Ale, Gold Medal Winner of the World Beer Championships. This succulent sweet and tangy sauce is perfect with pork ribs, chicken, salmon, pizzas and more.

Directions: Mix all ingredients well and heat to 200 degrees Fahrenheit.

Yields approximately two quarts.

Item Quantity Ketchup White vinegar Cider vinegar Honey Creole mustard Worcestershire Copperline Amber Ale Yellow onion, minced Brown sugar Garlic, minced Ground mustard Salt and pepper to taste

4 cups 1 cup 2 cups 1/2 cup 1 1/3 cups 1/3 cups 2 tbs.

1/2 each 1/3 lbs.

1 tsp.

1 1/2 tsp.

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What’s Brewing

Craft Cocktails Up the Ante for Distilled Spirits irish whiskey leads the way in current trends

The passion for craft cocktails shows no signs of slowing in North Carolina. Rather than being satisfied with a well drink and generic mixer, consumers are showing a passion for high-end liquors thoughtfully composed by artisan mixologists.

Katherine Yarborough of Southern Wine & Spirits, which represents and distributes a variety of beverage brands, reports that whiskey is trending now, with Irish whiskey leading the way, particularly among female consumers. Bourbon, as always, continues to be strong. z

Here are a few cocktails currently popular among Southern Wine & Spirits’ sales team Bacon and Eggs

Jim Beam 4 Year-infused bacon bourbon, maple syrup, egg white, Bittermens Vanilla and Burlesque bitters, lemon peel

Garden and Gun Club

Maker’s 46, Cointreau, lemon, bitters, dry vermouth

The Deconstructed Cosmo

Muddled smoked cranberries, orange slice and lemon with Jacob’s Ghost white whiskey and club soda.

Devil’s Stag Old fashioned Red Stag Black Cherry, Devils Cut, Club Soda, Cherry, Orange and Angostura Bitters.

The Garden and Gun Club

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Secrets of Success

TOPO Distillery is a Leader in the Grain to Glass Movement forging a path between all local and organic

It was a love of local ingredients, along with an area farmer’s timely miscalculation, that led Scott Maitland into the distilling business.

After getting into the microcanning game at his first business, Chapel Hill’s Top of the Hill Restaurant and Brewery, Maitland began investigating distilling, and was pleased to find that it was quite possible to create an all organic, all local, high quality product. The key would be soft red winter wheat, a variety that grows well in North Carolina. Not long afterward, Maitland received a call from a farmer who happened to have a surplus of that very wheat, and was hoping to sell it to local breweries.

Maitland took a chance – and ended up buying the farmer’s wheat for a few years while he worked to open the distillery – and began bottling his products in 2012.

TOPO distills three products: TOPO vodka, Piedmont Gin and Carolina White Whiskey, all of which use the same soft red winter wheat grown in Scotland Neck.

TOPO also sells a kit with a small barrel that allows buyers to age their Carolina Whiskey. The vodka and whiskey are both all local and all organic. For the gin, Maitland was unable to find local juniper berries of any sort, so he imports organic berries from Latvia. Maitland credits his time as chair of the Chapel Hill-Carrboro Chamber of Commerce with helping him understand the importance of local sourcing.

“I don’t think people understand how much wealthier it makes a community if you keep the dollars local,” he says.

For TOPO, the result has been award-winning spirits.

The Distillery’s TOPO Carolina Whiskey received a silver medal on its very first entry at the Beverage Tasting Institute’s International Spirits Competition held in Chicago, Illinois. The judges noted the

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Scott Maitland in TOPO’s distilling room

following about the whiskey: “Mild aromas of creamy porridge, pepper dust, roasted corn and sarsaparilla with a soft, dryish light-to-medium body and a lively anise cookie powder, chalk, cream, and peppercorn accented finish. Very clean and lively; a solid cocktail choice. “ Like other North Carolina distillers, Maitland would like to see a change in ABC laws allowing distillers to sell their own products – the same products at the same price – on-site.

“From a distiller’s perspective, it’s a no-branier,” he says. “From a public policy perspective, it’s still a nobrainer.” Maitland believes that laws can be crafted with stipulations that prevent large retailers from coming in and selling spirits too. He also doesn’t see how selling spirits on-site will lead to un-safe drinking.

“I don’t think people who come and take a tour of the distillery are the ones you need to worry about,” he says. “I mean, you’re going to take a tour of the distillery so you can get a bottle of booze? You can go

“

down to the ABC store to get a bottle of booze. “

I don’t think people understand how much wealthier it makes a community if you keep the dollars local.

For Maitland, being able to sell his own spirits in his own distillery means making a sale when his product is top-of-mind. Those who take a tour may not go straight to their local ABC store afterward, and may end up simply buying what they normally buy when they finally do go. Getting attention, he says, is very difficult. Still, TOPO’s success has him very excited about forging a path between all local and organic.

“We can make an investment in sustainable land practices rather than making an investment in Jay Z or someone else hawking our stuff. “ z

”

TOPO vodka, Piedmont Gin and Carolina White Whiskey,

new members NCRLA welcomes new members from across North Carolina Go to www.ncrla.org/membership to learn more about NCRLA and to download a membership application.

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Edison Elaine's Dueling Piano Bar Harris-Robinette, Inc. Horizon's Dining Room Jacksonville Tourism Development Authority Library Lounge Littler Mendelson Magnolia McDonald's - Dunn #34710 McDonald's - Four Oaks #34939 McDonald's - Holly Springs #32242 McDonald's - Zebulon #10148 National Restaurant Properties – Asheville National Restaurant Properties Greensboro National Restaurant Properties – Raleigh

National Restaurant Properties Wilmington Northwin Agency, LLC Qualified Builders, Inc. Raleigh Brewing Company Restaurant Technologies, Inc. Ryder Cup Lounge Savannah Red Spa Cafe Stable Cafe Sunset Terrace Taco Mac Sports Grill Corporate Taco Mac Sports Grill - South Park Taco Mac Sports Grill - University City Taco Mac Sports Grill - Huntersville The Tavern Wingate by Wyndam - Winston Salem z

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ProStart news

By Ranita Bullock

NC HEF Benefit & Golf Classic Raises More Than $90,000 The Future of Hospitality Benefit and Golf Tournament is the primary fundraising source for the scholarship and grant program.

Each October since 2004, the N.C. Hospitality Education Foundation opens up its scholarship and grant applications to secondary students, post-secondary students and hospitality educators. The scholarships assist individuals in pursuing educational programs in hospitality and tourism and the grants support student development, program development and/or faculty development.

One of the primary fundraising sources for these scholarships is the annual Future of Hospitality Benefit and Golf Tournament. The 2013 benefit and tournament, which took place June 9 and 10 at North Ridge Country Club in Raleigh, raised more than $90,000 that will be directed toward statewide scholarships and grants for North Carolina students and teachers. These awards will be distributed at the 2014 Future of Hospitality Benefit. NC HEF has awarded more than $1 million in scholarships and grants, since 2005.

More than 300 guests gathered at the benefit on the evening of June 9 to recognize the 2013 N.C. Hospitality Education Foundation scholarship and grant recipients. NC HEF

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awarded 47 scholarships, up to $4,000 each, in the names of NC HEF, Golden Corral, Johnson & Wales University, The Chef’s Academy, K & W Cafeterias, Davidson & Jones Hotel Corporation, and Darden Restaurants. NC HEF also awarded 16 grants, up to $2,000 each, to deserving students and teachers who are an integral part of the future of our industry. Other highlights of the evening were the array of food and beverages – including a popular cabbage and pork recipe created by culinary students, and a silent auction with several exclusive prizes. During the evening, Michael Martino, general manager of the Sheraton Imperial Hotel & Convention Center, was given the 2013 Excellence in Education Champion Award, which is awarded annually to a hospitality leader who has made significant contributions to education in North Carolina.

The excitement continued on June 10 at the Future of Hospitality Golf Classic. Despite the rainy weather, 132 golfers on 33 teams teed up at the North Ridge Country Club Lakes and Oaks courses for a day of golf, contests, delicious food and networking, all for a good cause.

We hope that you will join us next year for the

2014 N.C. Future of Hospitality Benefit and Golf Classic as we return to the North Ridge Country Club on June 1-2, 2014. Please mark your calendar, and be on the lookout for sponsorship opportunities and registration details.

For a full list of sponsors, scholarship recipients and golf classic winners visit www.ncrla.org/foh.

The N.C. Hospitality Education Foundation is a non-profit 501(c) 3 organization founded in 2003 that provides necessary resources for building an educated, strong and committed workforce for the hospitality and tourism industry in North Carolina.

(Top) NCRLA Corporate Partners SIA Group enjoy the Future of Hospitality Golf Classic.

(Bottom left) NCRLA Chair Brad Hurley of 42nd Street Seafood Grill & Oyster Bar chats with a young scholarship winner.

(Bottom right) Michael Martino, master of ceremonies for the Future of Hospitality Benefit and recipient of the 2013 Excellence in Education Champion Award

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legal bites

NCRLA Sees A Productive 2013 Long Session at the General Assembly

By Whitney Christensen, Esq.

SIGNIFICANT WINS FOR NORTH CAROLINA HOTELS AND RESTAURANTS

The 2013 Long Session of the General Assembly, which officially adjourned for the year on July 25, was busy and productive with many significant wins for North Carolina hotels and restaurants.

NCRLA was able to declare victory on a hospitalityrelated state budget provision that was more than a year in the works. We worked with coalitions of other lobbyists to successfully ensure compliance with occupancy tax guidelines, to protect employers by reforming our state’s unemployment system, to oppose minimum wage increases, to increase the state’s tourism marketing budget and to prevent a four week cut to the length of public school summers.

By being proactive, we were able to work with legislators on reasonable hotel carbon monoxide detector requirements, thus avoiding legislation that would require detectors in every hotel sleeping room.

We were even able to pass a bill of NCRLA’s own creation that protects restaurants from unwanted obesity lawsuits, and have it signed into law by Governor McCrory prior to adjournment.

Although we met substantial opposition on our Casino Night bill, we learned a lot about what could help the bill next year, when it will still be eligible for passage. Along with other business advocacy groups, we encouraged legislators to pass a historic tax reform package that cuts the North Carolina corporate income tax rate and holds franchise taxes steady. Some NCRLA member businesses estimate that the cuts brought about by the tax reform package will save them hundreds of thousands of dollars each year.

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Of these many legislative victories, perhaps the most significant was our work with policy makers to defeat a proposal that would have doubled the Charlotte meals tax. NCRLA has a longstanding policy to oppose meals taxes because they unfairly single out our industry to finance city or county projects that are often unrelated. This victory was not just one for Charlotte businesses, because by defeating this proposal we were able to sequester meals tax proposals from across the state that had begun to surface.

NCRLA is very pleased with what we were able to accomplish at the General Assembly in 2013, and we extend our sincere appreciation to all of the legislators who helped us achieve these goals. Because 2013 was a year of unprecedented grassroots involvement from NCRLA members, we send a very special thank you to those who made phone calls, sent emails and met with legislators in working towards these goals. This session would not have been nearly as productive without your efforts.

Contact NCRLA’s Government Affairs Manager, Whitney Christensen, at wchristensen@ncrla.org or 919-844-0098. z

Movers and Shakers

Three NCRLA Members Elected to UNC Board of Governors Three members of the N.C. Restaurant & Lodging Association were elected to the University of North Carolina Board of Governors.

They are: William “Marty” Kotis, CEO and owner of Kotis Holdings in Greensboro, which includes Darryl’s Wood fired Grill and several other restaurant properties. Kotis was appointed by the N.C. Senate in March to the 2013-2017 term. Kotis is on the Audit Committee, and Budget and Finance Committee.

J. Craig Souza, CEO of the N.C. Health Care Facilities Association and owner of Vinnie’s Restaurant in Raleigh. Souza was appointed

Marty Kotis

J. Craig Souza

by the N.C. Senate in March to the 2013-2017 term.

He serves on the Educational Planning, Policies, and Programs Committee, and is the chair of the Public Affairs Committee.

R. Doyle Parrish, CEO of Summit Hospitality in Raleigh. Parrish was appointed by the N.C. House in March to the 2013-1017 term. He is on the Personnel and Tenure Committee, and Public Affairs Committee.

Kotis, Parrish and Souza join NCRLA member Ann Goodnight on the board. Goodnight, who owns The Umstead Hotel and Spa and An Restaurant along with her husband, Jim, was elected to the Board of Governors in 2011. Goodnight is on the Educations Planning, Policies and Programs Committee and the Public Affairs Committee. z

R. Doyle Parrish

Ann Goodnight

Sept. 25, 2 p.m.

I-9 Forms and Eligibility Compliance Rebekah Grafton, an immigration and labor law attorney with Fay and Grafton, will host this webinar for NCRLA members on Wednesday, Sept.

25 at 2 p.m. The webinar will be about the I-9 forms that all employers must complete to verify a new hire’s eligibility to lawfully work in the US. The webinar will cover common errors on the form, penalties with noncompliance and what to do if the Department of Labor ever audits your I-9 forms.

Go to ncrla.org/webinars for more information.

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upcoming events and webinars Network with North Carolina’s hospitality industry leaders at one of NCRLA’s upcoming events Throughout the year, the N.C. Restaurant & Lodging Association hosts several events that are open to members and the hospitality industry. We also provide event information for the National Restaurant Association and the American Hotel and Lodging Association.

Sept. 25, 2 p.m.: I-9 Forms and Eligibility Compliance (More information on page 22) Oct. 2-4 N.C. Tourism Leadership Conference, Southern Pines Oct. 4 N.C. Division of Tourism Mid-Year Marketing Update, Southern Pines Oct. 7-13 Richard E. Marriott SAFE Golf Invitational, Palm Beach, Fla. Oct. 23-24 Restaurant Innovation Summit: Emerging Technology and the Customer Experience, Denver Oct. 28 Board of Directors meeting, The Angus Barn, Raleigh Oct. 28 Manteo to Murphy PAC Event, The Angus Barn, Raleigh Nov. 8-12 AH&LA Fall Conference held with the IHMRS Show, New York, NY Nov. 9 Hospitality Leadership Forum, Jacob K. Javits Convention Center, New York, NY Nov. 10 AH&LA Inaugural Gala honoring incoming Chair John Fitzpatrick, President/CEO, Fitzpatrick Group Hotels, The Plaza, New York, NY Nov. 20-13 CSRA State Government Affairs Conference, San Antonio, Texas Nov. 28 & 29 NCRLA office closed

Taste of North Carolina is scheduled for Feb. 3, 2014, at Sheraton Imperial Hotel & Convention Center, Durham

Dec. 24, 2013-Jan. 1, 2014 NCRLA office closed Feb. 3, 2014 Taste of North Carolina, Sheraton Imperial Hotel & Convention Center, Durham Feb. 4, 2014 Board of Director's Meeting & Annual Member's Meeting, Sheraton Imperial Hotel & Convention Center, Durham March 18-19, 2014 AH&LA Legislative Action Summit, JW Marriott, Washington, D.C. April 29-30, 2014 NRA Public Affairs Conference, Washington, D.C. May 17-20, 2014 Annual NRA Show, McCormick Place, Chicago, Ill. May 18-19, 2014 International Wine, Spirits & Beer Event (with NRA Show), McCormick Place, Chicago, Ill. June 1-2, 2014 Future of Hospitality Benefit and Golf Classic, North Ridge Country Club, Raleigh Visit www.ncrla.org for more information and event updates. z SEP T EMB ER 2 0 1 3

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Food Safety News

Food Safety Manager Certification Required on Jan. 1

By Alyssa Barkley

new rule enforced during routine health inspections

On Jan. 1, 2014, Food Safety Manager Certification will be required for all persons in charge during foodservice operation. This follows a 15-month grace period from the September, 2012, adoption and enforcement of the 2009 U.S. Food & Drug Administration food code, The new rule, which will be enforced during routine health inspections, requires that each designated person in charge on every shift during foodservice operation hold a valid Food Safety Manager Certification. Those in charge must be able to produce the certification during the inspection.

If there is not a way to prove that the person in charge is certified, the inspector will deduct two points off on the health inspection.

Since the 2009 FDA food code was adopted by the state of North Carolina late last year, local health inspectors were charged with using the initial inspections in each establishment as an educational opportunity to help operators and kitchen staff understand the new requirements.

Some easy-to-swallow changes regarding Food Safety Manager Certification requirement came from NCRLA negotiations with the N.C. Division of Public Health’s Food Protection and Facilities Branch. ServSafe certificates will now be recognized for the full five years (versus three years by the state of North Carolina), as is intended by the national program. Also, the 12-hour seat time requirement is no longer mandatory, as the online training course is now recognized by the state of North Carolina.

People taking the exam must have their exam proctored by a certified instructor/proctor.

NCRLA serves as the state affiliate of the National Restaurant Association and promotes ServSafe, the NRA’s premiere food safety education suite of products. It is the mutual goal of both the food service industry and regulatory bodies to produce and serve safe food to customers in an effort to protect the public’s health and the viability of the food service industry.

To learn about the certifications offered by ServSafe, to find a class or to register for the on-line program and to find a certified instructor/proctor, visit www.ncrla.org/ServSafe.

For questions on this regulatory requirement or any questions/concerns regarding food safety regulations and health inspections, contact our resident expert, Alyssa Barkley at 919-844-7883 or abarkley@ncrla.org. z

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ask ncrla

NCRLA’s Experts Answers Your Questions QUESTIONS ON COMPENSATION, SERVICE ANIMALS AND THE fda fOOD cODE

Each week NCRLA's team of experts tackles your questions on all aspects of the hospitality industry in the weekly In the Mix member email.

Selected questions are republished here. To submit a question for consideration, or to subscribe to In the Mix, please email Marketing & Communications Manager Karen Mann at kmann@ncrla.org. We will not print your name.

Q: Does the law allow me to pay my kitchen staff on a salary basis?

A: It depends, but most likely not. The default payment standard under the Fair Labor Standards Act requires employees to be paid hourly, with increased compensation (“time and a half”) for all hours worked in excess of 40 in a given week. For an employ to be paid a fixed salary instead, they must be exempted from this requirement. The two most commonly used exemptions for kitchen staff are the Managerial Exemption and the Creative Professional Exemption.

To meet the Creative Professional requirement, the employee must be responsible for creating the menu.

Executive chefs usually qualify for this exemption but cooks do not. Both exemptions are strictly construed by the Department of Labor and often result in hefty fines being imposed on any employer found to be noncompliant. If you compensate any employees on a salary basis that you fear may not meet an established exemption to FLSA, please contact NCRLA today to ensure your compliance and avoid large US DOL penalties before it is too late.

Q: As a restaurant or hotel operator, am I allowed to turn away customers with animals they claim to be service animals if my establishment is not pet friendly?

A: As a public business, you cannot refuse access to customers accompanied by service animals. Under the Americans with Disabilities Act, businesses that serve the public must allow people with disabilities to bring their service animals into all areas of the facility where customers are normally allowed to go. You will be in

To meet the Managerial Exemption, the salaried employee must:

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1.

Have the primary duty of managing the business or a recognized subdivision of it,

2.

Must direct the work of at least two full time employees,

3.

Must have the authority to hire and fire or impact those decisions, and

4.

Must be paid at least $455 per week. If all four requirements are not met, the business is subject to fines if the employee is not paid by the hour.

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Photo by Sean Freese. Used via Creative Commons License.

violation of this federal law if you refuse access/service and will be required to pay monetary damages and penalties.

Here are a few things you should know: u

u

u

u

Service animals are not required to be licensed or registered and you are not authorized to ask for special ID or proof the animal is officially classified as service.

Service animals are not pets and shall not be considered as such.

Service animals have traditionally been considered “seeing eye dogs” but have evolved in recent years.

Service animals come in all forms and include, but are not limited to: dogs of all types/breeds, cats, ferrets, monkeys, birds… and the list goes on.

Even though you may not visually observe a person to have a disability, you cannot question their need for the service animal to accompany them into your establishment.

Q: Is the newly adopted FDA Food Code enforced differently by county?

A: No, the FDA Food Code, just like the former NC Food Safety and Sanitation Rules, is to be enforced exactly the same state-wide. Each and every local health department jurisdiction reports to the State Health Department’s Food & Lodging Program, housed in the Department of Health and Human Services (DHHS), and the rules are governed by the state agency. All rule clarifications, point deductions and return visit procedures are to be uniform across county lines.

NCRLA has received notifications from members over the years regarding inconsistencies in rule interpretations and enforcement. When NCRLA receives these member alerts, we immediately begin work with our partners at DHHS in the Food & Lodging Program to ensure they exercise their oversight on any county or jurisdiction that may be acting out of accordance to the uniform set of rules and enforcement. z

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a la carte A sampler of hospitality-related news stories

Members learn about health care reform in Durham and Concord The N.C. Restaurant & Lodging Association held two successful seminars on ways to prepare for health care reform, Aug. 5 at the Sheraton Imperial Hotel and Convention Center in Durham and Aug. 6 at Electrolux in Concord. Expert panelists Michelle Neblett – Director of Labor and Workplace Policy for the National Restaurant Association, Clinton Wolf – Senior Director of United Health Group, and Kelsey Mayo, Employee Benefits Attorney for Poyner Spruill, gave presentations on the Affordable Care Act and answered questions from members. Topics included how to determine whether your business has 50 full-time equivalent employees, and to whom among its employees does a business legally have to offer insurance.

NCRLA will continue to keep you abreast of news and events surrounding the implementation of the Affordable Care Act. Go to our Health Care web portal at www.ncrla.org/healthcare for more information. If you would like a copy of the presentations given during the seminar, contact Kristin Worrell at kworrell@ncrla.org or 919-277-5851.

The Durham seminar

CareerBuilder special offer for NCRLA members CareerBuilder and its niche restaurant website, JobsOnTheMenu.com, have joined forces with NCRLA to provide members access to the best talent at a cost effective price. Companies like Chipotle, Noodles & Co. and Panda Express are just a few finding success when using both CareerBuilder and JobsOnTheMenu.com to target management and hourly candidates on the appropriate website, and at the right value.

NRA members can now take advantage of an exclusive posting package to fulfill your restaurant hiring needs.

These special pricing options are: u

30-Day CareerBuilder Posting for Management positions = $250 (A $419 value!)

u

30-Day JobsOnTheMenu Posting for Hourly positions = $50 (A $299 value!)

Call a CareerBuilder representative at (877) 513-4867 to receive your posting package now! z

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LM Restaurants donates to N.C. ProStart through the DORES LM Restaurants, Inc. recently made several ProStart educators in schools throughout North Carolina very happy by donating used restaurant furniture and plateware valuing more than $2,500. The donation was made through the N.C. Hospitality Education Foundation DORES – Donating Older Restaurant Equipment to Schools – program.

The goal of the DORES program is to partner restaurants, hotels and equipment suppliers, who have gently used or new restaurant equipment/supplies that they are no longer using, with N.C. high school ProStart programs, that are in need of equipment/supplies. Since 2009, more than $32,500 in donations have been made through the DORES program.

The DORES program has been instrumental in assisting N.C. ProStart programs, which face budget cuts or lack of funding, with building a food service equipment/supply inventory to enhance students' learning.

Before discarding used equipment and supplies, please remember that what may seem “old," still may have years of usefulness for students.

Thank you to LM Restaurants, Inc. for being the first DORES donor for the 2013-14 school year.

If you would like to participate in the DORES program, contact Ranita Bullock, NCRLA Education Programs Manager, at 919-844-0098 or rbullock@ncrla.org z

Santos named 2013 Stevan Porter Emerging Hospitality Leader Wes Santos, general manager of the Fairfield Inn & Suites Charlotte-Matthews, was selected as the 2013 Stevan Porter Emerging Hospitality Leader during the American Hotel & Lodging Association conference in June in Denver.

This new award honors an exemplary lodging employee under age 30 who has demonstrated superior professional dedication, leadership, and a fresh perspective to their job at an AH&LA member company. This individual should illustrate “out of the box” thinking in their professional and personal life, and dedication to the industry by actively participating in association, community, or industry programs. Award recipient should also be actively involved in community service in either the local or national arena. z

Jim Abrahamson, CEO, Interstate Hotels & Resorts and secretary/ treasurer of the American Hotel and Lodging Association, Wes Santos, general manager of the Fairfield Inn & Suites Charlotte-Matthews, and Katherine Lugar, president & CEO of the American Hotel & Lodging Association at the AH&LA Stars of the Industry award ceremony.

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advocacy

NCRLA’s 30 in 30 Campaign, Manteo to Murphy Fundraiser Need Your Support make a donation to support our advocacy program 30 in 30 For the second consecutive year, NCRLA will host a 30 in 30 Fundraiser for the NCRLA Political Action Committee (PAC) beginning Sept. 1 and ending Oct. 1. The goal of the fundraising campaign is to raise $30,000 for the NCRLA PAC in 30 days. All NCRLA members are asked to make a donation to the PAC, in any denomination, in order to support the continued success of our advocacy program.

This year, the event will feature a new component under which NCRLA members are encouraged to ask their suppliers and allies to contribute to the PAC during the month of September. Because our suppliers benefit from our success, we are asking them to invest in our legislative efforts by contributing to our PAC alongside us. Please share the attached PAC Contribution Form with your suppliers and ask them to support you by supporting the PAC. The NCRLA PAC, the official Political Action Committee for the state restaurant and hotel industries, is the 35th largest PAC in the state. Through broader investment by both NCRLA members and our suppliers and allies, we hope to ascend in the PAC rankings and thus raise our industry’s profile at the General Assembly.

The NCRLA PAC is non-partisan and works towards the sole objective of keeping legislators who are supportive of restaurant and hotel issues in office. The NCRLA PAC supports the campaigns of incumbent candidates who have stood by us in the past and also occasionally gives to non-incumbent candidates who are known to have ties to our industry.

Last giving cycle, almost 97 percent of candidates receiving a contribution from the NCRLA PAC in the general election were ultimately elected to office, 30

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(Left-right) Laura Oldham, Roger Carter and Jamar Bryson of Winston’s Grille at the 2012 Manteo to Murphy PAC event. This year’s event will take place Oct. 28 at The Angus Barn in Raleigh. and because so many pro-hospitality legislators were elected, NCRLA saw a very successful 2013 Long Session at the General Assembly. Please support the PAC today so we can continue to elect candidates who value the hospitality industry to office in North Carolina. No contribution is too small and any donation given in the month of September will help us in reaching our $30,000 goal.

Manteo to Murphy Make plans now to participate in our annual PAC event, Manteo to Murphy, which is scheduled for Oct. 28 at the Angus Barn. Manteo to Murphy is a fun evening featuring the cuisine of talented chefs from across the state. It's also a vital means of support for the advocacy efforts of both NCRLA and the National Restaurant Association. North Carolina has consistently raised more money for the NRA Restaurant PAC than any other state.

Go to www.ncrla.org/pac to contribute to the PAC and register for Manteo to Murphy.

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