Insider | Spring 2021

INSIDER SOUTH CAROLINA RESTAURANT AND LODGING ASSOCIATION

SPRING 2021

Americans optimistic about traveling in 2021 The recovery of the travel industry is anticipated to take place in three phases ©2020 South Carolina Restaurant and Lodging Association. All rights reserved. Reproduction or quotation in whole or part without written permission is forbidden. While this newsletter is designed to provide accurate and authoritative information, the Association is not engaged in rendering legal or accounting services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

The marketplace is the South Carolina Restaurant and Lodging Association’s affinity program that helps members with selection and pricing advantages on important products and services that help advance and protect South Carolina's hospitality industry.

INSURANCE

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Visit SCRLA.org/marketplace today!

OPERATIONAL SUPPORT Heartland Cintas Credibly Soundtrack Your Brand BMI ServSafe Office Depot Dining Alliance Fintech STR

COVID-19 PRODUCTS LetsGetChecked PPE 4 Restaurants Evo Environments Modjoul Screening SayNoMore Promotions

Table of Contents 4 | Message from the SCRLA Board Chair 7 | Changes for 2021 Summary of Benefits & Coverage 8 | SCRLA Board of Directors 10 | SCLRA Legislative Agenda 12 | Ways and Means Subcommittee Hearing Testimony 13 | Operators Design Takeout Modifications to Meet Consumer Demand

15 COVER | Americans Optimistic about Traveling for

Vacation

18 | Protection Preparedness: Fire Safety 24 | Delivery-Focused Graduate Food Hall 26 | 2021 Stars of the Industry Award Winners 29 | Big Tax Credits to Restaurants 30 | New SCRLA Members

Providing ServSafe Food Safety and Alcohol training across South Carolina Food safety and responsible alcohol service is important. Protect your guests, employees and business with ServSafe Food Safety and ServSafe Alcohol certifications.

Spring Classes: March 10 - Columbia March 11 - Florence (incl. exam) March 15 - Charleston (incl. exam) March 23 - Myrtle Beach (incl. exam) March 31 - Charleston (incl. exam) April 7 - Columbia April 12 - Charleston (incl. exam) April 15 - Greenville/Spartanburg April 20 - Myrtle Beach (incl. exam) April 28 - Charleston (incl. exam) May 5 - Columbia May 6 - Greenville/Spartanburg May 10 - Charleston (incl. exam) May 18 - Myrtle Beach (inc. exam) May 24 -Charleston (incl. exam)

SCRLA members receive a 20% discount using the code SERV2.

Visit AtlanticFoodSafety.com or call 843.573.7935 to sign up for classes in your area.

October 3-5 Kiawah island

South Carolina Restaurant & Lodging Association PO Box 7577 • Columbia, SC 29202

Message from the SCRLA Board Chair Happy New Year! I hope 2021 brings us a better year— a year of regrowth and rebuilding for the hospitality industry.

803.765.9000 • Fax 803.252.7136 Email: info@scrla.org SCRLA.org

SCRLA Executive Committee Chairman

Bobby Williams Lizard’s Thicket

Vice Chairman

Michael Frits DoubleTree Resort by Hilton Myrtle Beach Oceanfront

Treasurer

Sam Agee Gateway Hospitality

Immediate Past Chair Bob Barenberg Hilton Hotel Corporation

Members

Bill Ellen, Experience Columbia SC John Keener, Charleston Crab House Sean McLaughlin, Forest Lake Club Tony Tam, IMIC Hotels Heidi Vukov, Croissants Bistro & Bakery

I want to thank each of you for your continued support of the SCRLA and your membership with us. During these unprecedented and uncertain times, we have witnessed, and still continue to witness, the very best of the hospitality industry. The incredible tenacity to keep the hospitality industry solvent—the generosity of helping team members and the spirit of giving in support of our local communities.

While 2020 and the COVID-19 pandemic left our industry reeling, initiatives from our national, state and local partners have us pointed in the right direction. Our optimism is based on the fact that we and our colleagues have been highly focused on getting additional relief for our industry. Four federal relief packages have been passed since March 2020, and we are hopeful that a unified RESTAURANTS Act will also be passed, providing billions of dollars in relief to the hospitality industry.

In January, we were thrilled to host our 12th annual Restaurant Week South Carolina campaign.

Approximately 200 restaurants participated statewide, with restaurants offering both dine-in and takeout experiences for patrons. Restaurant Week proved to be just as successful as it was prepandemic with more than 1.5 million pageviews and positive experiences from both restaurant operators and guests.

In February, we were honored to have Chip Rogers, President and CEO of the American Hotel and Lodging Association, in Columbia to keynote our 68th Annual Stars of the Hospitality Industry Awards at our first in-person event since the pandemic began.

The first session of the 124th General Assembly for the South Carolina legislature began on January 12. The SCRLA’s legislative agenda for 2021 includes: • • • •

AH&LA Board Liaison

John Munro, Sea Pines Resort, Hilton Head Island

• • • • •

support for SCPRT’s marketing budget request continued strategic implementation of our workforce-development-related plan assisting local governments in leveling the playing field with regard to collecting taxes on short-term rentals continued awareness of human trafficking working as a member of the Attorney General’s Human Trafficking Taskforce modernizing alcohol laws and legalizing cocktails to-go supporting statutory clarity on alcohol licenses supporting Dram Shop Reform supporting alcohol licenses for caterers defeating earlier school starts

With the experience of our government affairs team and McGuireWoods Consulting, we plan to be involved in any other relevant legislative and regulatory issues on the federal, state and local levels. We will continue to provide regular updates on any legislation that may impact our industry.

NRA Board Liaison

Carl Sobocinski, Table 301, Greenville

Association Staff John Durst President and CEO Douglas OFlaherty Vice President Susan Walters Director of Meetings and Events Lenza Jolley Communications Manager Christal Van Wickler, Bookkeeper/Education Coordinator Randi Sullivan Membership and Business Development

The momentum established in the last months serves as a catalyst as we look ahead to other upcoming events, such as: • • •

March 9-11 – 16th Annual SCRLEF Silent Auction, Myrtle Beach April 21 – Hospitality Day at the State House October 4-5 – Second Marketing and Operations Conference, Kiawah Island

The SCRLA continues to be the leading voice of our industry, advocating for our members in legislative matters and in business, increasing awareness about important issues, and training the people of our state to work in hospitality and to also achieve meaningful careers.

With all of this in mind, let’s have a successful year full of rebuilding and regrowth for the hospitality industry.

Sincerely,

Bobby Williams SCRLA Board Chair

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HOSPITALITY DAY at the Statehouse WEDNESDAY, APRIL 21, 2021 • 10:00-2:00 Individual tickets are free for SCRLA members. SCRLA member properties receive up to 5 tickets.

Pre-registration is required for ALL tickets. Visit SCRLA.org for more information!

Changes for 2021 Summary of Benefits and Coverage Here is a new Summary of Benefits and Coverage (SBC) notice requirements for health plans starting with the 2021 coverage year.

The requirements, released by the Department of Labor, have new model templates, new instructions and new information that affects the coverage examples that are required to be in SBC documents that employers with group health plans must distribute to their employees.

Under the Affordable Care Act, all non-grandfathered health plans are required to provide enrollees and prospective applicants an SBC, which is essentially a synopsis of the plan’s coverage and benefits. It must be produced in a specific format, contain specific information, and be written in a way that is easily understood. Here are the changes that were made to the SBC template for plans that started on or after January 1: Coverage Example The coverage examples that appear on the last page of the document have been modified to reflect changes in the cost of medical services that occur over time due to inflation and other factors: •

•

•

“Managing Joe’s Type 2 diabetes” (diabetes example): The total amount of expenses incurred for “Joe” has decreased.

“Mia’s simple fracture” (fracture example): The total amount of expenses incurred by “Mia,” who visited the emergency room for a simple fracture, has increased.

“Peg is having a baby” (maternity example): The costs incurred during “Peg’s” hospital stay have been changed to remove separate newborn charges. The deductible line of the example should now match “your deductible amount” (if applicable).

Minimum Essential Coverage Under the entry for minimum essential coverage, the template has been revised to reflect the elimination of the individual mandate penalty, which was repealed

SCRLA.org

effective January 1, 2019.

The entry now indicates that individuals eligible for certain types of minimum essential coverage may not be eligible for a premium tax credit under the ACA marketplace.

Uniform Glossary The uniform glossary has been updated to remove references to the individual mandate penalty.

What To Do If you offer group health plans to your employees, you are a plan sponsor and thus required to distribute SBCs to staff who are eligible for coverage during open enrollment. The SBC must also be given to new hires within 90 days of hiring for mid-year enrollment.

If you don’t have your latest SBC, you can contact us or your health insurer. The insurer is obligated to provide all covered employers with updated SBCs after the Department of Labor and the Department of Health and Human Services release changes to templates.

Article provided by Haynes Full Circle Benefits

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South Carolina Restaurant and Lodging Association's Board of Directors

Bobby Williams Chair Lizard's Thicket

Michael Frits Vice Chair DoubleTree by Hilton Myrtle Beach Ocean Front

Sam Agee Treasurer Gateway Hospitality

Bill Ellen Experience Columbia

John Keener Charleston Crab House

Sean McLaughlin Forest Lake Club

Heidi Vukov Croissants Bistro & Bakery Hook and Barrell

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John Munro Sea Pines Resort AHLA Liaison

Bob Barenberg Immediate Past Chair Hilton Hotels Corporation

Tony Tam IMIC Hotels

Carl Sobocinski Table 301 National Restaurant Association Liaison

SCRLA.org

Chapter Presidents Adam Ashcraft RJ Rockers Brewing Company Spartanburg

Bill Groves Embassy Suites Greenville Golf Resort Greenville

Ric Coates Axelrod Realty & Property Managent Myrtle Beach

Bobby Williams Lizard's Thicket Columbia Restaurant Chapter

Harris Mullis Lee's Famous Fried Chicken L.U.C.C.Y.

Chad Patterson Raldex Hospitality Group Florence

Marcus Munse Hotel Trundle Columbia Hotel Chapter

Michelle Woodhull Charming Inns Lowcountry Hospitality Association

Education Members Robin DiPietro University of South Carolina

Brumby McLeod College of Charleston

Board of Directors Expiring Dec. 31, 2021 Don Alcorn Rush's Food Systems

John Marshall Chipotle Mexican Grill

Steve Seitz Table 301

Dale Barth Red Bone Alley

Holly Penny Courtyard by Marriott USC

Gil Smith US. Foods

Janice Brady Denny's

Patricia Porter PWP Hospitality Management

Jonathan Sullivan Beaufort Inn

Gary Cohen The Abernathy

Tom Propps Sysco

Kirk Watkins Sizzling Steak Concepts

Ron Glancy Raines Hospitality

Brendan Reilley Coastal Restaurants & Bars

Board of Directors Expiring Dec. 31, 2022 Moe Baddourah Badd Boys Cafe & Catering

Susan Cohen Charlestowne Hotels

Randy Marvin Gilligan's Seafood Restaurant

Tom Bannar Marriott Ocean Watch Villas

Athan Fokas Luxury Hotel Suites @ 493 King

Jimmy Moore Heartland

Michael Blake Kiawah Island Golf Resort Mike Bolchoz Southern Eagle Distributing Andy Briggs Solara Investments

Karen Hall California Dreaming Tommy Hall Halls Management Group Scott Martin Wyndham Sea Watch Plantation

David Nelson Marina Inn at Grande Dunes Tony Perricelli Bauknight, Pietras & Stormer

Glen Williams Embassy Suites by Hilton Greenville Downtown Riverplace Alan Wolf The SERG Group Andy Wolfe Plantation Resort

Patrick Rogers Charleston Marriott

Other Members Catherine Dority Lowcountry Hospitality Association

Stephen Greene Myrtle Beach Hospitality Association

Amy Duffy SC Parks, Recreation & Tourism

Jill Maynard Lowcountry Hospitality Association

Duane Parrish SC Parks, Recreation & Tourism

LEGISLATIVE AGENDA The first session of the 124th General Assembly for the South Carolina Legislature began in January. The SCRLA's legislative agenda for 2021 includes:

Support SC-PRT’s Budget Request

Modernize Alcohol Laws

Strategic Implementation of Workforce Development Plan

Legalize Cocktails To-Go

Support COVID-19 Business Liability Protection Level Playing Field with Short Term Rentals Continued Awareness of Human Trafficking

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Statutory Clarity on Alcohol Licenses Support Dram Shop Reform Support Alcohol Licenses for Caterers Defeat Earlier School Starts Maximize COVID-19 Vaccination Phases for Frontline Workers

SCRLA.org

The hospitality industry is a force for good in South Carolina— it lifts people up, it’s where life is celebrated and memories are made. This industry gives people a first chance and a career, and many times, a second chance. As businessowners, you give back constantly, even when your own business is hurting as we’ve seen with the COVID-19 pandemic. A strong hospitality industry creates stronger communities, and in order to be successful, you need a strong voice. We are your voice.

Through grassroots advocacy and meaningful relationships, the South Carolina Restaurant and Lodging Association (SCRLA) promotes and protects the industry at the local, state, and federal levels. The SCRLA approaches advocacy on two fronts: 1. promoting legislation and regulations that will benefit the industry and your business; and 2. working to defeat legislation and regulations that could negatively impact the industry and your business.

The 124th legislative session is marked by unprecedented opportunities and unique challenges for South Carolina's hospitality industry. It is paramount that the SCRLA take full advantage of this first legislative session.

The COVID-19 pandemic has devastated the hospitality industry, but it has also created enormous goodwill for restaurants and hotels amongst the general public and our policymakers.

Because our agenda fits within the broader category of COVID-19 recovery, it is likely for legislation to be fast-tracked compared to other bills this session.

Get to know your elected officials. Building relationships with them can help us work together so we can continue promoting the best interests of our industry. Stay engaged by communicating with your family, friends, and coworkers when we need grassroots support.

Minimum Wage Impact Survey Results Respondents were presented with the Raise the Wage Act of 2021, which would increase the federal minimum wage to $15 by 2025 and eliminate the tipped wage by 2027.

The initial 2021 wage increase would negatively impact restaurants’ ability to recover from the coronavirus pandemic.

In 2021, the Raise the Wage Act is scheduled to boost the federal minimum wage from $7.25 to $9.50 and the federal tipped wage from $2.13 to $4.95.

82% of operators say these initial wage increases would have a negative impact on their restaurant’s ability to recover from the coronavirus pandemic.

Only 2% of operators say the wage hikes would have a positive impact on their ability to recover from the pandemic.

Understanding the RESTAURANTS Act of 2021 This bill builds on a concept first proposed to Congress by the NRA in March 2020—a dedicated industry fund to help restaurants which have suffered more losses in jobs and revenue than any other sector because of the COVID-19 pandemic.

Establishes a $120 billion “Restaurant Revitalization Fund” managed by the U.S. Department of Treasury to provide direct grants to eligible entities.

Visit RestaurantsAct.com and AHLA.com/HotelsAct for more information and to take action today!

Covered Period: Began February 15, 2021 and ends 8 months after enactment of the program. If funds are not spent within 8 months of enactment, the entity’s funds convert to a loan with an interest rate of 1% with a maturity date of 10 years.

Eligible Entity: Owns or operates—as of March 13, 2020—20 or fewer establishments, regardless of the type of ownership of the locations and whether those locations do business under the same or multiple names.

Ways and Means Subcommittee Hearing on Vaccine Distribution in South Carolina John Durst, President and CEO of the SCRLA, was invited to testify at a Ways and Means Subcommittee hearing on February 16. Below is the testimony he gave.

A headline on WIS-TV’s website today reads: “While the rest of SC’s economy is almost back, leisure and hospitality are down 15%. In the story, it cites UofSC economist Joey Von Nessen’s indicating that the missing piece for our industry to return to previous employment levels is based on biology rather than economics.

What Dr. Von Nessen was referring to is COVID-19 vaccination levels.

Here are some examples of how our hospitality industry has been so very hard hit by the pandemic: •

More than 58,000 jobs in our state’s hospitality industry have been lost since last March

•

Hundreds of hotels have been teetering on the brink of foreclosure or closure due to low current and projected demand, putting thousands of livelihoods at risk

•

Hotel occupancy is hovering around 40%, which is down 24% since this time last year

•

Consumer spending in restaurants remains well below normal levels – at least 28% on average

•

18% of South Carolina restaurateurs say they are considering temporarily closing

South Carolina’s hospitality industry is clearly reeling from this unprecedented health care crisis and the accompanying economic fallout.

One example of how we are doing our part to make safety and health our top priority is having established, in collaboration with the Governor’s Office, DHEC and PRT, the Palmetto Priority program which is a formal commitment made by South Carolina restaurateurs to provide a clean and safe environment for their staff and customers, and to demonstrate the extensive precautions that they are taking to prevent the spread of COVID-19.

To maximize the resilience of our industry, I respectfully submit that it is vital for our frontline, essential workers to be classified in Phase 1A to receive COVID-19 vaccinations. As indicated by the Governor, they do work in essential industries and are truly frontline, essential workers.

As our industry continues to use best practices, following the guidelines of the CDC and DHEC, our resilience, our world-class cuisine and lodging, along with our highly-sought-after attractions and events, will steadily increase the number of our guests. The results of classifying our frontline hotel and restaurant workers in Phase 1A will speed up our economic recovery and help us further demonstrate to those growing numbers of guests – through our proven, successful brand of Southern hospitality – that, “We’re glad you’re here.”

Our tourism industry, a leading economic engine, proudly, for example, hosts internationally known events such as the RBC Heritage, the Darlington Southern 500 and the 2021 PGA Championship... not to mention some great collegiate games. Our natural beauty is also enjoyed by thousands annually.

Before the pandemic struck, ours was a $23.8 billion industry, supporting one in every 10 jobs and generating $1.8 billion in state and local taxes.

Taking those facts into account, that’s why Governor McMaster included restaurants and hotels in his initial list of essential businesses that would remain open.

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SCRLA.org

Operators Design Takeout Modifications to Meet Consumer Demands Drive-thru, pickup windows provide solutions for off-premise dining during the pandemic and beyond Restaurant operators across segments are designing stores for the future based on consumer demand for multiple options for off-premise dining, from drive-thru to takeout.

Chains and independents alike are incorporating pickup windows and adding drive-thru lanes, including lanes dedicated to orders placed on mobile apps.

Chain operators are also designing stores that can be tailored to meet the demands of consumers at individual locations, including some that have no indoor seating at all.

Several of the largest quick-service and fast-casual companies have unveiled new prototypes in recent months that encourage digital ordering and customer pickup, and the trend has even extended into the casual-dining space. Applebee’s Neighborhood Grill + Bar recently unveiled plans for its first drive-thru lane, which is being added to a franchised restaurant in Texarkana, Texas.

“Off-premise demand has been increasing for over a decade, with significant acceleration in the past nine months, and we anticipate continued growth in the channel,” Scott Gladstone, vice president of strategy and development at Applebee’s, told Nation’s Restaurant News.

He said the local Applebee’s operator, Apple Arkansas, had identified the market as having strong potential for off-premise dining, given the trends it had been seeing in its operating area. Likewise, other operators are preparing to respond with different store designs based on the consumer needs in each market and the variables of each individual location.

Louisville, Ky.-based KFC, for example, in November unveiled two next-generation prototype stores that could each serve different types of locations. One format would have no dining room, while the other would have a small dining room and an outdoor seating area, along with more options for contactless pickup of

digital orders.

Nashville, Tenn.-based Captain D’s, meanwhile, is developing an Express design, offering no seating, with plans to open in the Atlanta area by mid-year. The design has a drive-thru window on one side for orders and payment, and a window on the opposite side for customer pickup. There are walk-up windows as well.

“The Express units are generally designed for areas with very high population density, with a lot of foot traffic and, maybe, a lot of bus traffic — just where there are a lot of people,” said Phil Russo, Captain D's vice president of real estate, in an interview with NRN in November.

Other restaurant chains introducing new designs include Schlotzsky’s, which is also planning two new prototypes — Design 1800 and Design 1000, named for their respective square footages — both of which will debut later this year. Design 1000, which will not have a dining room, will have a dedicated two-sided drive-thru lane or a walk-up window for to-go order pickup on the other side of the building. The second lane in the drive-thru on the passenger side can also be used for curbside pickup.

Others planning takeout-centric prototypes include Chipotle, Burger King, Taco Bell, Sweetgreen, Burger Fi, El Pollo Loco and La Madeleine, with more announced almost every week. Checkers & Rally’s, long a leader in the drive-thru segment, also recently said it was testing stores with dedicated drive-thru lanes to handle digital orders. And Pokeworks is getting ready to test a prototype store with a “Cruise-Thru” lane that will only fulfill orders placed ahead through the mobile app or for delivery. It is also building dedicated pickup counters into all new stores, said Peter Yang, chief development officer and co-founder of the fast-casual chain.

Independent restaurants around the country have also been adding takeout windows that have proven to a be lifeline for some operators.

said Karen LuKanic, owner of the restaurant, which is located in a pedestrian friendly neighborhood that attracts traffic to the window from the street.

The restaurant had been generating about 10% of its sales for off-premise consumption before the pandemic, but that share has since increased to 50%.

“It was our savior,” LuKanic said of the window, adding that she was fully committed keeping it in operation after the pandemic. “This has permanently changed our business model.”

Zorba’s has had success driving foot traffic to the window by displaying paper menus in a box in front of the restaurant, she said. The point-of-sale register is also just inside the window, making walk-up orders easy to manage. The location of the window just a few steps off the street also facilitates third-party delivery orders, LuKanic said.

In Detroit, acclaimed sandwich shop Mudgie’s also added a window for takeout, while converting its bar into a staging area for off-premises dining. The restaurant has been closed for indoor dining since the start of the pandemic, said owner Greg Mudge, out of concern for the safety of his employees and customers, but the window has generated a strong off-premise business.

“It is the heart of the restaurant now,” he said. “Until we are able to reopen and operate in a safe manner, the window will stay.”

To install the window, the restaurant simply removed one of the large, existing windows, and replaced it with a sliding window — “the biggest one we could find at Home Depot,” Mudge said — and applied a new coat of paint to the outside.

In Los Angeles, All Day Baby, an eclectic, Southerninfluenced casual bakery/cafe that opened just a few months before the pandemic hit, has been doing a brisk business through its so-called Biscuit Window.

In Denver, Zorba’s, a diner that closed temporarily at the start of the pandemic last year, executed a remodel that includes a takeout window facing the outdoor patio seating area. The restaurant had already been considering adding a window to create a ghost kitchen supporting dinner delivery — it currently offers dine-in service only for breakfast and lunch — and it accelerated the plan after the pandemic hit.

The restaurant encourages ordering ahead, but also accepts walk-up orders and fulfills third-party delivery.

The window was originally used to offer specials on baked goods on different days — Donut Window day, Cinnamon Bun day, for example — but has since become an all-purpose takeout destination in the heart of the trendy Silver Lake neighborhood.

“In some weird way, COVID gave us this opportunity,”

Reprinted from Nation's Restaurant News

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SCRLA.org

Americans Optimistic about Traveling for Vacation

A new survey conducted by Morning Consult and commissioned by the American Hotel & Lodging Association (AHLA) shows Americans are optimistic about traveling again this year, with 56 percent reporting they are likely to travel for vacation in 2021.

That represents a significant decline from prepandemic levels, when approximately 70 percent of Americans took a vacation in any given year, according to OmniTrak (TNS) data. Since the onset of the pandemic, just 21 percent of survey respondents reported traveling for vacation or leisure, and only 28 percent reported staying in hotel. Prior to the pandemic, 58 percent of survey respondents said they stayed in a hotel at least one night per year for leisure, and 21 percent stayed at least one night per year for work.

The survey also found that while consumers remain optimistic about travel, consumer confidence about staying in hotels is tied to widespread COVID-19 vaccine distribution: 11 percent said they will feel comfortable staying in a hotel when vaccines are available to the general public, 20 percent when a majority of Americans have been vaccinated, and 17 percent when they are personally vaccinated.

The recovery of the travel industry is anticipated to take place in three phases: leisure travel, small and medium events, and group and business travel.

While recovery will begin in 2021, full recovery is not expected until 2024.

The survey of 2,200 adults was conducted in January by Morning Consult on behalf of AHLA. Key findings of the survey include the following: •

56% of Americans say they are likely to travel for leisure or vacation in 2021;

•

34% of adults are already comfortable staying in a hotel, while 48 percent say their comfort is tied in some way to vaccine distribution;

•

Compared to last year, 36% of Americans expect to travel more for leisure in 2021, while 23% expect to travel less and 42% expect to travel about the same amount; and

•

One in five Americans (19%) expect their next hotel stay to be between now and April, with another 24% expecting it sometime between May and August.

“While consumers are optimistic about traveling in 2021 after nearly a year of self-distancing measures, we continue to face record devastation.

COVID-19 has wiped out 10 years of hotel job growth,” said Chip Rogers, President and CEO of AHLA. “In the next COVID-19 relief package, the hotel industry needs support from Congress and the administration that will ultimately help small business hoteliers keep their doors open, and bring more employees back to work. Despite the challenges facing the hotel industry, hotels across the country are focused on creating an environment ready for guests when travel begins to return.”

While business travel itself will remain below 2019 levels for some time, business travelers expressed greater comfort in traveling for any reason compared to adults overall, and they are more likely to say they will travel more in 2021.

Leisure travel demand is projected to begin increasing from Q2 to Q3 of 2021 as vaccine distribution increases across the country and people can again connect with family and friends. In the year ahead, Americans say they are most likely to travel for a family event such as a wedding or family reunion (51 percent likely to travel), while many are likely to travel over summer holidays, led by the Fourth of July (33 percent) and Labor Day (28 percent).

While cleanliness has always ranked among the top factors when choosing a hotel, it has risen to the top in the wake of COVID-19. In a separate survey of travelers conducted by Ecolab in December 2020, 62 percent of consumers placed overall cleanliness in their top three factors when choosing a hotel—a 24 percent increase over pre-COVID preferences.

Further, 53 percent of consumers say that enhanced cleaning regimens will make them feel more comfortable staying at a hotel.

These findings were also outlined in AHLA’s State of the Hotel Industry 2021 report, which details the forecasted state of the hotel industry in 2021 and into the immediate future. The report examined the highlevel economics of the hotel industry’s recovery, the specific impact on and eventual return of business travel, and consumer travel sentiments.

Protection Preparedness: Don't Forget About Fire Safety!

While best practices for responding to the coronavirus have dominated hotel industry communications for nearly a year, hoteliers can’t let down their guard, lest they find themselves unprepared for other potential disasters, such as wildfires and hurricanes, which did in fact occur and complicate the response to the coronavirus raging across the world in 2020.

Of course, there is little hoteliers can do about catastrophic weather events, including, wildfires. However, they can and should be prepared for the type of fires that are far too common in hotels, says Chad Connor, president of Affordable Fire & Safety. He shared some best practices for controlling fires and preventing harm to people and property, including having the right equipment, protocols, and signage at the ready.

Having systems in place

As in homes, smoke detectors are required for fire code compliance in hotels, but that’s just the beginning of what is needed in hotels, says Connor, who notes that equipment required for hotels and other commercial properties is generally far more sophisticated. Smoke detectors, he says, should be located in every guestroom and throughout the building. Then, too, are alarm systems with horns and strobes to rouse sleeping guests and all on the premises at the time of the emergency; battery operated lights above exit doors, which should be unlocked at all times; sprinklers in ceilings in guestrooms and throughout the property; and, of course, fire extinguishers—which are typically mounted encased in glass in hotel hallways—rated 2A or larger for Class A hazards within 75 feet of every location. “No one should have to travel more than 75 feet to get to a fire extinguisher,” Connor adds.

Ensuring systems are functioning properly

Connor reminds that these systems need regular maintenance to work as they must in an emergency.

“Your equipment should be serviced annually, for example, by a professional contractor who services kitchen hoods; and fire extinguishers, sprinklers, and alarms should be regularly inspected, tested, and repaired if needed.” He notes that the emergency lights that guide people fleeing fire to exits, which are battery-operated, are frequently overlooked, and that fire extinguishers whose labels are no long legible must be replaced and updated to reflect current standards.

Training employees on pertinent equipment use

Connor reminds that these systems need regular maintenance to work as they must in an emergency.

“Your equipment should be serviced annually, for example, by a professional contractor who services kitchen hoods; and fire extinguishers, sprinklers, and alarms should be regularly inspected, tested, and repaired if needed.” He notes that the emergency lights that guide people fleeing fire to exits, which are battery-operated, are frequently overlooked, and that fire extinguishers whose labels are no long legible must be replaced and updated to reflect current standards.

In the event of an evacuation

Posted on the back of every guestroom and in the corridors of each floor should be a sheet with the information all hotel occupants need when there is a fire emergency. It includes the routes they should take, the exits they should use, and where they should gather once they have reached safety.

Connor says all inside the hotel at the time of a fire need to understand what to do and where to go, including those who find themselves in the elevator.

“When the first alarm goes off, the elevator will drop to a floor that’s safe, open to let passengers out, then go out of service,” he says.

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Restaurant Sales Rose for the First Time in Four Months After trending sharply lower at the end of 2020, restaurant revenues bounced back with a healthy gain in January. Eating and drinking places* registered sales of $54.6 billion on a seasonally-adjusted basis in January, according to preliminary data from the U.S. Census Bureau.

That was up 6.9% from December’s sales volume of $51.1 billion, and represented the largest monthly increase since June. However, it wasn’t enough to make up for the 8.3% drop in sales during the final three months of 2020.

January’s sales gain was a step in the right direction, but the restaurant industry’s road to recovery remains long. Overall, eating and drinking place sales in January still stood nearly $11 billion – or more than 16% – below their pre-coronavirus levels in January and February.

While January’s sales gain was much needed, most restaurant operators remain uncertain if it will be sustained in the weeks ahead. Only 16% of fullservice operators expect to have higher sales in February or March than they did in January. Forty-six percent think their sales will decline from January’s level.

Limited-service operators are only slightly more optimistic about the next several weeks. Twenty-one percent of limited-service operators think their sales in February and March will be higher than January; 37% expect to have lower sales.

46% in November and 60% in September. *Eating and drinking places are the primary component of the U.S. restaurant and foodservice industry, which prior to the coronavirus outbreak generated approximately 75 percent of total restaurant and foodservice sales.

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Winter is here Restaurants lost an important customer touchpoint during the recent surge in winter weather, with outdoor dining becoming less feasible in many parts of the country. This had been a lifeline for many restaurants, particularly in areas that ramped up indoor dining restrictions in recent months.

Only 42% of fullservice operators say their restaurant currently offers on-premises outdoor dining in a space such as a patio, deck or sidewalk, according to a National Restaurant Association survey conducted February 2-10, 2021. That’s down from 52% in November and 74% in September.

In the limited-service segment (quickservice, fast casual and coffee/snack concepts), 37% of operators say they currently offer outdoor dining – down from

PerformanceFoodservice.com (800) 800-6434 Explore our resources to help operators renew and refocus for the coming year.

Sysco Purchases More Than 21,000 Gift Cards From Restaurant Customers Nationwide Sysco Corporation announced it had purchased more than 21,000 gift cards providing a cash flow boost totaling more than $525,000 to support its restaurant customers across the United States. Each of these $25 gift cards were given to Sysco’s operations frontline associates in appreciation for their hard work and dedication to the company’s customers.

“At Sysco, we are here to support our customers as they continue to navigate a difficult pandemic environment,” said Greg Bertrand, Sysco’s executive vice president of U.S. Foodservice Operations. “This initiative enabled us to not only support restaurants in a big way, but also say a well-deserved “thank you” to our operations frontline associates for their ongoing dedication to the foodservice industry and support of our customers.”

This is the latest initiative launched by Sysco to support the restaurant industry. As part of its Restaurants Rising campaign, Sysco announced in November 2020 that it had eliminated minimum order size requirements for regularly scheduled delivery days. Sysco customers can also take advantage of free services to help market their business including contactless menus, signs, banners and social media support. In addition, the company launched its Foodie Solutions platform in 2020 which includes numerous toolkits to help restaurants safely navigate the pandemic environment and generate additional revenue.

The effort was inspired by The National Restaurant Association’s challenge to Sysco and others to join

the #StepUpToTheTable campaign, and encouraged food industry executives to support the restaurant industry by buying gift cards and giving them to friends and family over the holidays. Sysco immediately participated in the challenge in December, and began planning to create an even greater positive impact to support frontline associates and help generate meaningful cash flow for its restaurant customers.

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C3 and Graduate Hotels Launch DeliveryFocused Graduate Food Hall C3 (Creating Culinary Communities), a food and beverage platform founded by Sam Nazarian, and Graduate Hotels, a collection of hotels in university markets founded by Ben Weprin, this week announced the launch of Graduate Food Hall, a new deliveryfocused, hybrid digital kitchen concept. Graduate Food Hall powered by C3 will launch in the first quarter with plans to roll out to six Graduate properties by mid-2021 and to a majority of Graduate locations nationwide by the end of the year.

Through this joint venture with Graduate Hotels, C3 will assume daily operations of all on premise food service across the Graduate properties. An industry first, this digital food hall concept effectively injects C3’s popular restaurant brands and shared kitchen model into the hotel space. Graduate’s hotel kitchens will be converted into multi-brand digital kitchens in which up to six of C3’s brands—including award-winning concepts such as Umami Burger, Krispy Rice, and Sam’s Crispy Chicken—can operate at once. Graduate Food Hall will feature dine-in options within Graduate Hotels’ lobbies

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and gathering areas, as well as delivery and take-out, all catered to the needs of students, guests, and the surrounding community. Graduate Hotels will continue to operate its own bar outlets.

“The partnership between C3 and Graduate will set the precedent for the future of hotel dining,” said Sam Nazarian, founder of C3. “This setup not only supports and supplements in-room hotel dining and on-site catering, it also streamlines the ordering process and extends the hotel’s reach within the local community.

One of the easiest ways for hotels to connect with locals is through food and with Graduate Food Hall, we’re making a selection of C3’s most popular restaurant brands available at their fingertips. At the same time, our digital kitchens are driving supplemental revenue streams back to our hotel partners, making this a winwin for the hotels and the communities they serve.”

“We’re thrilled to partner with our friends at C3 and bring this innovative new dining experience to some of our Graduate communities across the country,”

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said Ben Weprin, Graduate Hotels CEO and Founder.

“This year has presented both immense challenges and opportunities for our industry, and we have taken these moments to pause, reassess, and evolve our offerings in order to best serve guests, students, and locals. With Graduate Food Hall, we’re providing some exciting options and epicurean experiences, but also an incredibly streamlined and convenient approach that reflects today’s market.”

C3’s digital kitchen model will allow Graduate Hotels to offer an array of cuisines in one place, with options ranging from Krispy Rice’s approach to Japanese cuisine; Umami Burger’s burger concept; and as well as the pipeline of brands currently in development that include, Mediterranean, Thai, Wings, and more .

Instead of being restricted to one menu or cuisine type, diners can choose their preferred items from any of C3’s food hall concepts in one order. Orders can be enjoyed in-person at Graduate Food Hall, on-the-go, or through delivery via any major delivery platform. In the next phase, orders can also be placed via C3’s soon-tolaunch delivery app.

Graduate Food Hall is anticipated to debut in Graduate Berkeley, California, Graduate Richmond, Virginia, and Graduate Tempe, Arizona, with additional locations to come.

“The university market was the prime place for C3 to expand into the hospitality space, and Graduate Hotels

provided direct-to-consumer relationships with 3.5 million students at iconic institutions around the country,” said Nazarian. “College students are deeply connected to app culture and are already forgoing dining halls for meal delivery. Graduate Food Hall serves as a natural extension of the campus experience and introduces students to C3’s restaurants, creating an emotional connection to these brands that they can enjoy long after they graduate. They become part of the social fabric of university life.”

Graduate Hotels is a collection of hotels in universityanchored communities across the country. Each hotel pays homage to the heritage of its town through cultural nods to the local community. Launched in 2014, there are currently 28 hotels across the United States and the United Kingdom and an additional eight hotels set to open by the end of 2022.

C3’s has implemented its digital kitchen approach through standalone ventures in cities like Los Angeles and Miami as a first-of-its-kind restaurant incubator in which consumers can order from some of the world’s leading chefs through quick-service culinary brands.

Graduate Hotel Columbia, formerly the Inn at USC, is situated steps from the scenic campus grounds that mixes classic style and campus spirit. Rooms at the hotel boast local charm, with Gamecock-inspired headboards and echoes of “Oot-Oot” plaids, chevrons and touches of grass cloth making each room a work of art.

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Stars of the Industry Award Winners Robin DiPietro Hospitality Educator of the Year

David Evans Hospitality Supplier of the Year (pictured Warren Clayton)

Palmetto Shop Outstanding Community Service Program

Matthew Shirah Outstanding Community Leader Private Sector

SCDHEC Outstanding Community Leader Public Sector

Andrew Cajka Hotelier of the Year

Anthony DiBernardo Restaurateur of the Year

Ashley Johnson Lodging Manager of the Year

Alberto Vargas Restaurant Manager of the Year

Toby Wiggers Lodging Front of House Employee of the Year

Dawn Hlavacek Restaurant Front of House Employee of the Year

Carole Roglin Lodging Heart of House Employee of the Year

Runner-up: Darren Whitaker

Runner-up: Acadia Kant

Runner-up: Conrad Cooper (pictured)

Phil Sacco Hotel Bartender of the Year

Kat Hunter Restaurant Bartender of the Year

Haydn Shaak Hotel Chef of the Year

Runner-up: Hanna Platt

Sarah Pinkernell Restaurant Heart Heart of House Employee of the Year Runner-up: Malcolm McMillan

Runner-up: Tony Lee

Runner-up: Dorothy Kohl

Runner-up: Michael Wade

Runner-up: Connor Kaise (pictured)

Nico Romo Restaurant Chef of the Year Runner-up: Ben Sanders

Joe Crossan Outstanding Certified Sommelier

Chip Rogers, AHLA's President and CEO, made an honorary member of SCRLA Pictured from left to right: Bobby Williams, John Durst, Chip Rogers, Michael Frits

Runner-up: Sarah Tomlinson

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Big Tax Credits to Restaurants Could Support Employee Retention Did you know a new law signed in December might mean your operation is eligible for an employee retention tax credit?

Restaurants won a key breakthrough in year-end legislation when lawmakers expanded employee retention tax credit (ERTC) eligibility. Many small businesses who were previously ineligible may now be eligible for up to $19,000 in ERTC per employee.

Under the CARES Act, passed in March 2020, a restaurant’s use of a Paycheck Protection Program loan restricted any subsequent eligibility for the ERTC. This was all changed on December 27, 2020, when the Taxpayer Certainty and Disaster Tax Relief Act passed.

Now, for any calendar quarter between March 13 and Dec. 31, 2020, a restaurant with 100 or fewer full-time employees may be able to access ERTC of up to $5,000 per employee.

And, for the first two quarters of 2021, Jan. 1–March 31, and April1–June 30, restaurants with 500 or fewer fulltime employees may be able to access ERTC of up to $7,000 per employee per quarter.

While there are many considerations to evaluate, eligible restaurants can now access employee retention tax credits for both 2020 and 2021 for eligible employee wages as long as they did not pay specific payroll wages and/or group benefits with PPP loan funds. Here are two examples to explain how a restaurant might claim the credit: Example 1 Henry’s Hotcakes received a $120,000 PPP loan in April 2020. These funds were fully spent on its 10 employees

by September 20, 2020. Previously, the restaurant would not have qualified for ERTC. Under the new law, the operation can now reach back to its wages for the 4th quarter of 2020 (Oct.-Dec.) and obtain up to $5,000 per eligible employee (50% credit of up to $10,000 in eligible wages) in ERTC. Result: Henry’s Hotcakes gets up to $50,000 in ERTC for Q4 2020 wages it paid.

Example 2 Henry’s Hotcakes is eligible for a Second Draw PPP loan

SCRLA.org

but would also like to coordinate to receive ERTC for its 10 employees during the 1st quarter of 2021 (Jan.-March).

On February 1, 2021, the restaurant receives a Second Draw loan of $168,000 (at the 3.5 multiplier for restaurants/ accommodations) and selects a 24-week covered period to use those PPP funds. It spends 40% of the loan on rent, protective equipment, cleaning supplies, a new drive-thru window, and other forgivable PPP expenses in February and March 2021. Beginning April 2021, the restaurant spends the rest of the PPP funds (60%) on eligible payroll expenses for the remainder of the covered period. For the 1st quarter of 2021 (Jan.-March), the restaurant files for the ERTC and obtains $7,000 per eligible employee (70% credit of up to $10,000 in eligible wages).

Result: Henry’s Hotcakes obtains up to $70,000 in ERTC for Q1 2021 wages it paid... and Henry’s Hotcakes uses a Second Draw PPP loan to cover both Q1 (Jan.-March 2021) non-payroll expenses and Q2 (April-June, and even parts of July, 2021) payroll expenses, depending on the covered period.

The upshot: Restaurants can now receive up to $5,000 per employee for 2020 and up to $14,000 ($7,000 per employee in each of the first two quarters of 2021) for a potential total of $19,000 per eligible employee in ERTC. “For a restaurant that fought uphill for the last quarter of 2020 with say, 50 full-time employees, it’s an amazing opportunity to access up to $250,000 in ERTC,” explains Aaron Frazier, director of Healthcare and Tax Policy.

“We strongly encourage restaurants to consider synchronizing their Second Draw PPP loan and ERTC for the first half of 2021, as 40% of the loan can be used for forgivable non-payroll expenses while the restaurant accesses ERTC to support payroll.”

We urge restaurateurs to learn more about this new law (see links below) and engage your tax and finance specialists to ensure you don’t leave this money on the table.

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Badd Boys Cafe Columbia, SC

Experience Columbia SC Columbia, SC

HUB International Columbia, SC

River Room Restaurant Georgetown, SC

Burgers & Bakery Spartanburg, SC

Flock Shop Spartanburg, SC

ICF - Charleston Mt. Pleasant, SC

Shem Creek Crab House Mt. Pleasant, SC

Cambria Hotel & Suites Summerville Summerville, SC

FR8 Yard Spartanburg, SC

Initial Q Smokehouse Spartanburg, SC

Soby's New South Cuisine Greenville, SC

Frannie and the Fox Charleston, SC

Kiawah Island Golf Resort Kiawah Island, SC

The Cook's Station Greenville, SC

Galpao Gaucho Brazilian Steakhouse Charleston, SC

Leaf Lounge Florence Florence, SC

The Tulip Tree Spartanburg, SC

Nigel's Good Food II Florence, SC

Ty's Roadside Coastal Kitchen Mt. Pleasant, SC

Persis Indian Grill Greenville, SC

VisitGreenvilleSC Greenville, SC

Rainbow International Chapin, SC

Willy Taco Boiling Springs, SC

Ratio Elgin, SC

Willy Taco Greenville, SC

Reid's Fine Foods Greenville, SC

Willy Taco Spartanburg, SC

Candlewood Suites Mount Pleasant Mt. Pleasant, SC Charlestowne Hotels Charleston, SC Clerks Coffee Company Charleston, SC Coastal Development Partners Spartanburg, SC DoubleTree by Hilton Charleston Airport North Charleston, SC Di Vino Rosso Columbia, SC

Griffin Market Beaufort, SC Hampton Street Vineyard Columbia, SC Handy & Hot Charleston, SC Heidi's Corner Restaurant Group Myrtle Beach, SC Hilton Garden Inn - Summerville Summerville, SC

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