Insider | Spring 2022

INSIDER SOUTH CAROLINA RESTAURANT AND LODGING ASSOCIATION

SPRING 2022

A look at our 2022 Legislative Priorities From Alcohol liability to tax credits and everything in between ©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.

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Some of that vision is positive... as variants wane, guests venture back into restaurants, and we continue to see a demand for travel. Some continue to focus on the lingering effects that we must still overcome. Can we say we are cautiously optimistic? I believe we can, but not without a bit of that now all to tiresome word pivoting.

I’m claiming executive privilege and changing pivot to evolve. That is how we are tackling the ripple effects of COVID-19 on the hospitality industry in our state; we are evolving. To be fair, some of the issues were challenging our industry, to a lesser extent, prior to to the pandemic. Workforce development is certainly one of those areas and we are grateful to have received funding from SC-PRT, via an Economic Development Act grant. We must tell stories of the great opportunities and careers the hospitality industry provides. We will be working to assist owners and operators attract, train and retain workers.

Another evolution has been to bring our governmental affairs representation in house. We are excited to welcome Hank Davis to our staff as Vice President of Governmental Affairs and Community Development. Hank will work to carry forward our legislative agenda at the statehouse, in addition to working with the National Restaurant Association, American Hotel & Lodging Association, and Asian American Hotel Owners Association to ensure we are on top of legislation and regulations that effect your operations.

We have been very fortunate to have our national partners relentlessly pursuing assistance for the industry, whether it's funding to offset loss of business (i.e. the Restaurant Revitalization Fund), Employee Retention Tax Credits, or through their support on specific issues such as cocktails-to-go or short-term rentals. However, the bottom line remains... no matter who we have working issues on staff or through our affiliations, your legislators want to hear from YOU, their constituents.

They want to know: how your business is doing, what your challenges are, and how certain bills will affect you.

Our members will receive a brief questionnaire that will assist us in our grassroots efforts. Please be on the lookout for this very soon and take a few minutes to let us know of your contacts. Your voice as an owner or operator speaks louder than anything we can say as staff.

We are working toward a more visible and assertive posture regarding our legislative agenda. An updated version of this can be found on pages 8-9.

Susan H. Cohen

President & CEO

WELCOME

With two months of 2022 behind us, we are beginning to see the potential for life after COVID in our industry.

MEET YOUR SCRLA TEAM & EXECUTIVE COMMITTEE The South Carolina Restaurant and Lodging Association provides superior value and effective communication by being the voice of the foodservice and lodging industry in government and public relations, educational programs, offering operational benefits, and creating opportunities for member involvement.

Michael Frits

Susan Cohen President & CEO

Chairman DoubleTree by Hilton Myrtle Beach Resort

Douglas OFlaherty Chief Operating Officer

Carl Sobocinski

Hank Davis VP of Governmental Affairs & Community Development Lenza Jolley Communications Manager

Vice Chairman Table 301

John Munro

AHLA Board Liason Sea Pines Resort

Sam Agee

Treasurer Gateway Hospitality

Bobby Williams

Immediate Past Chairman Lizard's Thicket

Randi Sullivan Membership & Business Development

Carl Sobocinski NRA Board Liason Table 301

Members

AnnMarie McManus Meetings & Events Manager Christal VanWickler Bookkeeper/Education Coordinator

Bill Ellen, Experience Columbia SC

PO Box7577 Columbia, SC 29202 803.765.9000

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

S can M e

Impacted by COVID-19? Let our South Carolina Small Business Development Centers network of over 50 highlytrained professionals across the state help adapt your business and position it for growth.

You can rely on us to provide: loan packaging strategic planning diversification strategies sales & growth strategies cash flow/fiscal management We offer no-fee individual, confidential business consulting; affordable educational workshops and access to valuable business resources.

Teresa Brandow, Owner Avocado Bleu SC SBDC Client

Ask us. We can help. Visit SCSBDC.com

Table of Contents 7

National Updates

8

2022 Legislative Outlook + Agenda

10 13 15 18 21 23 25 30

Promote good hygiene habits and a positive South Carolina Tourism Reports good hygiene restroomPromote experience Strong Recovery SCRLA's New Board Members

Promote good hygiene habits and a positive The "Knew or Should Have Known" habits and a positive Make sure your customers can thoroughly wash Standard restroom experience their hands without restroom touching surfaces when they experience visit your restrooms. Our touchless Signature 2022 Stars of the Industry Recap

Make your customers thoroughly wash Series® dispensers andsure scheduled service can visits also Make sure your customers can thoroughly wash theiressential hands without touching surfaces make it easy to have restroom supplies in when they their your hands without touching surfacesSignature when they visit restrooms.

Our touchless Personalized Approach to Employee stock — while non-textured bacteriostatic surfaces visit your restrooms.

Our touchless Signature ® Series dispensers and scheduled service visits also Onboarding, Training + Retention make cleaning easier and help minimize germs. service ® dispensers and scheduled visits also Series make it easy to have essential restroom supplies in stock — while non-textured bacteriostatic surfaces World Food Championships' Final stock —orwhile non-textured bacteriostatic surfaces • A choice of touchless manual dispensers make cleaning easier and help minimize germs.

Table Event make cleaning easier and help minimize germs.

• Weekly on-site •service An array of colors to choose from • An array of colors to choose from SCRLA Updates • A choice of touchless or manual dispensers • A choice of touchless or manual dispensers • Weekly on-site service • Weekly on-site service •

make easy to from have essential restroom supplies in An array of colors to itchoose

Upcoming Events

The cover of this Spring's Insider Magazine is an image of The Abbeville Opera House.

LEARN MORE LEARN MORE LEARN MORE Contact the Cintas National Service Team at Contact the Cintas National Contact the Cintas NationalService ServiceTeam Teamatat 800.795.7368 or NationalServiceTeam@cintas.com.

800.795.7368 or 800.795.7368 orNationalServiceTeam@cintas.com.

NationalServiceTeam@cintas.com.

The Abbeville Opera House received the Charles A. Bundy award at the 2021 Governor's Conference on Travel and Tourism. This award is given in recognition to the attraction, destination or development that helps rural communities reach their tourism potential.

Nearly 177,000 eligible restaurants did not receive RRF grants as the program ran out of funds in a matter of weeks. The SBA estimates they need $43.6 billion to fund the unmet applications currently stuck in the RRF queue. Congress needs to complete the mission of the Restaurant Revitalization Fund. The restaurant industry is still struggling to recover and replenishing the RRF will help provide stability for some of the hardest hit restaurants.

Congress can help restaurants. Make your voice heard by contacting your elected officials today and asking them to replenish the RRF. Take action now by visiting restaurantsact.com/rrf.

Take 60 Seconds and Make a Difference for the Hotel Industry The Save Hotel Jobs Act will provide critical support to hotels and their workers during this recovery period. AHLA and UNITE HERE! recently sent a joint letter to Congressional leadership and staff, urging critical and much needed support for our members and our workforce.

This unprecedented show of unity between business and labor demonstrates just how vital it is that we come together to support the lodging industry and save the jobs of the hardworking employees in hotels across America.

If you have not yet sent a letter to your representatives in support of this legislation, today is the day. It just takes 60 seconds of your time to email your Members of Congress to support this vital bill. The email is pre-written, just enter your information and click send. It's that simple! Take action now by visiting AHLA.com/hotelsact.

U.S. Restaurant Sales Forecast to Hit $898 Billion in 2022 The U.S. foodservice industry is expected to reach $898 billion in sales this year, returning to pre-COVID pandemic trajectory, the National Restaurant Association said in its 2022 State of the Restaurant Industry report released in February.

The Washington, D.C.-based association, in the new report that’s available for download, noted that foodservice sales remain, in inflation-adjusted dollars, about 11% below where they were before the COVID-19 pandemic was declared in March 2020.

Wholesale food costs were up 7.9% in 2021 and hourly labor costs in eating and drinking places was up about 8.6% for the year. Two years ago, the association’s forecast at the end of February 2020 was for the industry to reach $889 billion in sales in 2020, an anticipated 4% increase from $864 billion in 2019. But pandemic restrictions choked sales in both 2020 and 2021, and many effects linger into this year.

The association released a mid-year report in August last year that projected sales to reach $789 billion in 2021, up nearly 20% from 2020. The increase was bolstered by increased consumer confidence, pent-up desire and people returning to work.

NATIONAL UPDATES

Help Replenish the Restaurant Revitalization Fund

Key Bills the SCRLA is Tracking for the Second Session of the 124th General Assembly House Bill 4547 would amend the current laws governing short-term rentals. H. 4547 would ban any municipality or country government to prohibit the short-term rental of any residential dwelling.

Senate Bill 367 would prohibit revenue for state government from fees collected from alcohol licenses and prohibiting the curbside delivery/ pickup of liquor. S. 367 is twofold: 1. the bill would prohibit the state legislature from receiving any revenue generated from the distrubuting of licenses for the sale of curbside/ to-go beer and wine at restaurants, and 2. the bill would also prohibit said restaurants from selling curbside/to-go alcoholic beverages that include liquor.

Senate Bill 524 would regulate the sale and delivery of beer and wine. S. 524 would give businesses who sell beer and wine the opportunity to deliver purchased beer and wine to customers, either by employees of said business or via a third-party.

House Bill 3575 would allow curbside delivery or pickup of beer and wine to customers. H. 3575 would grant retail vendors who sell beer and wine the opportunity to offer curbside delivery or pickup of said beverages to customers at the place of business. This would be made possible via purchasing a license or permit to do so.

Senate Bill 472 would establish a mandatory alcohol server training and education program for business who sell alcoholic beverages. S. 472 would require restaurants who sell alcoholic beverages to complete mandatory training in relation to the selling and distribution of alcoholic beverages in a responsible and constructive manner.

Senate Bill 952 would authorize the expenditure of federal funds disbursed to South Carolina via the American Rescue Plan Act of 2021. S. 952 outlines how the nearly $1.75 billion South Carolina received from the American Rescue Plan is to be used and distributed. These funds would primarily to go to the SC Department of Transportation, the Rural Infrastructure Authority and the Office of Regulatory Staff and would be used to update rural water and sewer infrastructure, increase rural broadband internet access, and other various rural infrastructure improvements.

House Bill 4408 would authorize the expenditure of federal funds disbursed to South Carolina via the American Rescue Plan Act of 2021. Similar to Senate Bill 952, H. 4408 also outlines how the nearly $1.75 billion South Carolina received from the American Rescue Plan is to be used and distributed. These funds would primarily go to the SC Department of Transportation, the Rural Infrastructure Authority, the Office of Regulatory Staff, as well as the Office of Resilience and the Department of Administration and would also be used to update, rural water and sewer infrastructure, various state-wide infrastructure projects, to accelerate completion of projects included in the Statewide Transportation Improvement Program, as well as increase rural broadband internet access.

House Bill 3126 would reject any federal funds for the enforcement of a federal mask mandate. H. 3216 would prohibit the SC legislature from accepting any federal funds from the U.S. Congress pertaining to the policing and enforcement of any federal mask mandates House Bill 3348 would provide tax credits to business who employ formerly incarcerated individuals or veterans of the U.S. Armed Forces enrolled in an apprenticeship program. H. 3348 would provide tax credits to business owners who employ either formerly incarcerated individuals or veterans of the U.S. armed forces who are currently enrolled in some type of apprenticeship program.

The amount of the tax credit is $3,000 per eligible employee.

House Bill 3620, the Clementa C. Pinckney Hate Crimes Act, would increase the severity of punishment for individuals convicted of hate crimes. H. 3620 would promote and allow for the enhancement of additional penalties for hate crimes for performed by convicted accusers.

Senate Bill 14, the Hate Crime Penalty Enhancement Act, would increase the severity of punishment for individuals convicted of hate crimes. Similar to House Bill 3620, S. 14 would also promote and allow for the enhancement of additional penalties for hate crimes for performed by convicted accusers.

These are just a few of the bills we will be tracking.

Stay tuned as these bills develop over the next few months.

Meet Our Board The SCRLA hosted its Annual Meeting on January 17 at the Hilton Garden Inn in Columbia. During the meeting, new board members were elected and new officers were installed.

Mike Frits, Chairman

Bill Ellen ExperienceColumbiaSC

John Keener Charleston Crab House

Sean McLaughlin Forest Lake Club

Tony Tam IMIC

Heidi Vukov Croissants Bistro & Bakery Hook and Barrel

John Munro Sea Pines Resort AHLA Liason

Carl Sobocinski, Vice Chairman National Restaurant Association Liason

Sam Agee, Treasurer

Bobby Williams, Past Chairman

Board of Directors Adam Ashcraft Jonescraft Restaurant & Hospitality Recruiters

Paul Garcia Dayton House Resort

Brendan Reilley Coastal Restaurants and Bars

Bill Groves Embassy Suites Greenville Golf Resort

Patrick Rogers North Charleston Marriott

Tommy Hall Hall Management Group

Emmy Scott Homegrown Hospitality

John Marshall Chipotle

Steve Seitz Table 301

MIchael Blake Kiawah Island Golf Resort

Randy Marvin Gilligan's Seafood Restaurant

Gil Smith US Foods

Mike Bolchoz Southern Eagle Distributing

Dr. Brumby McLeod College of Charleston

Jonathan Sullivan Beaufort Inn

Janice Brady Denny's

Harris Mullis Lee's Famous Recipe

Kirk Watkins Ruth's Chris Steak House

Andy Briggs, CHA A14 Capital

Roy Neal El Jefe Texican Cantina

Matt Burros DoubleTree by Hilton Columbia

Chad Patterson Raldex Hospitality Group

Glen Williams Embassy Suites Greenville Downtown Riverplace

Trip Chalk Private Property

Holly Penny SREE Hotels

Ric Coates Axelrod Realty/Property Management

Tony Perricelli Bauknight, Pietras & Stormer

Duane Davis Sysco

Adrian Radder Sonesta Resort HHI

Dr. Robin DiPietro University of South Carolina

Gray Raines Raines Hospitality

Tom Bannar Marriott Ocean Watch Villas at Grande Dunes Vanessa Bialobreski F2T Productions & Honey River Catering

Alan Wolf SERG Restaurant Group Andy Wolfe Grand Palms Resort Michelle Woodhull Charming Inns Eric Young PepsiCo

Ex-Officio Board Members Fenil Desai AAHOA

Amy Duffy SC Parks, Recreation & Tourism

Catherine Dority Lowcountry Hospitality Association

Jill Maynard Lowcountry Hospitality Association

Duane Parrish SC Parks, Recreation & Tourism

Honorary Board Members Bob Barenberg Hilton Hotel Corporation

Suzanne Hinde Sheraton Hotel

Rick Erwin Rick Erwin Dining Group

David McMillan Drunken Jack's Restaurant

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South Carolina tourism reports strong recovery in 2021 Tourism in South Carolina saw a strong rebound in 2021, according to figures released today by the South Carolina Department of Parks, Recreation & Tourism (SCPRT).

During his annual “State of the Tourism Industry” address at the South Carolina Governor’s Conference on Tourism & Travel at the Hyatt Regency in Greenville, SCPRT director Duane Parrish shared statistics and stories about what the industry experienced in 2021.

After seeing a slow and steady start in January and February, by June 2021, key tourism metrics like hotel occupancy and revenue began to surpass the record levels South Carolina achieved in 2019. The year finished with a 32.8% increase in statewide hotel occupancy compared to 2020, and down only 5.3% compared to 2019. Hotel revenue per available room was 75% higher than 2020 and 4% higher than 2019.

“These metrics tell a great story of South Carolina’s tourism recovery in 2021,” Parrish said. “They tell us that we have regained much of the economic ground that was lost in the first year of the pandemic – but they also tell us that we still have work to do. They tell us that we all must continue our efforts to achieve a full economic recovery to make our state’s tourism industry whole again.”

Statistics show that South Carolina recovered faster than neighboring states in the first six months of 2021, seeing greater gains in hotel occupancy than North Carolina, Georgia and Florida. Director Parrish attributed that success to a

number of factors, including: the $20 million investment the state made to fuel SCPRT’s tourism recovery marketing in late 2020 – early 2021, which drove nearly $1 billion in hotel revenue; the quality and variety of travel experiences South Carolina offers; how quickly the state’s industry adapted to the “new normal”; and dedicated marketing efforts led by tourism leaders at our local and regional levels.

Director Parrish reminded the audience of tourism professionals from across the state that the competition to attract visitors to South Carolina will only increase moving forward.

“In 2021 we got off to a great start, but we can’t let off the gas now because – trust me – our competition isn’t going to let up either.”

To help show the status of our recovery, SCPRT unveiled a Road to Recovery data sheet at the conference to show our 2021 results compared to 2020 and 2019 levels.

Along with our continued recovery, another challenge SCPRT is focused on in 2022 is the staffing shortages facing the hospitality and tourism industry. At a general session on Wednesday, Erin Francis-Cummings, President & CEO of Destination Analysts, will share the results of a study on the attitudes and perceptions of working in South Carolina’s hospitality industry compared to national results. Director Parrish also announced that SCPRT will partner with the South Carolina Restaurant and Lodging Association to create a workforce development and training initiative to help address this issue.

Continued on next page...

Director Parrish also announced a few other projects and highlights to look forward to in 2022, and in the years to come: •

•

•

•

•

SCPRT is partnering with the US Civil Rights Trail to increase consumer awareness of Civil Rights attractions and sites in the state. We’re also partnering with WeGOJA (formerly known as the South Carolina African American Heritage Commission) to develop a Civil Rights podcast series that will launch in May 2022.

SCPRT is partnering with tourism regions to promote the important role South Carolina played in the American Revolution as the Sestercentennial approaches, to encourage residents and visitors alike to explore our arsenal of Rev War experiences.

SCPRT looks forward to opening new state parks in the coming years, including the linear park along the Black River in Georgetown and Williamsburg counties, May Forest on Fort Johnson in Charleston, Pine Island on Lake Murray in Lexington, Ramsey Grove Plantation in Georgetown, and Misty Lake in Aiken.

The state’s golf metrics are reaching the highest levels seen in a decade, after South Carolina hosted the RBC Heritage in Hilton Head, the Palmetto Championship at Congaree, the BMW Charity Pro Am, and the PGA Championship in Kiawah in 2021. We look forward to seeing that positive trend continue.

SCPRT looks forward to welcoming international visitors back to South Carolina as those markets slowly recover.

We are partnering with Travel South USA and Brand USA to optimize our advertising effectiveness, and preparing to increase our investment in international marketing when the time is right.

South Carolina by the Numbers HOTEL OCCUPANCY

∆ 32.8% compared to 2020 ∇ 5.3% compared to 2019 HOTEL REVENUE

∆ 75% compared to 2020 ∆ 4% compared to 2019 ROUNDS OF GOLF PLAYED ∆ 13.6% compared to 2020 ∆ 13.4% compared to 2019

Hosted 4 major tournaments including: RBC Heritage, BMW Charity Pro-Am, Palmetto Championship at Congaree and PGA Championship at Kiawah ESTIMATED NUMBER OF VISITORS SERVED IN S.C. WELCOME CENTERS – 677,000 ∆ 22% compared to 2020 ∇ 15.4% compared to 2019

"What have y'all been up to tonight?"

The Innocuous Question Your Servers Should Be Asking Article by Christian Stegmaier

Understanding the parameters of what constitutes the safe454 service of alcohol in South Carolina bars, restaurants, and clubs can be a tricky thing. That’s because South Carolina does not have Dram Shop laws (Program note: The General Assembly should really enact Dram Shop statutes). Instead, alcohol liability in the Palmetto State is a case law-created beast that intertwines criminal statues found in Title 61 with a negligence-based theory. Understanding the amalgamations created by the case law and developing training to account for it can be challenging for permit holders to say the least.

The Law in South Carolina: “Knew or Should Have Known” To sum up, third party commercial alcohol liability in South Carolina is established if the plaintiff can demonstrate permit holder’s service to an intoxicated guest. Our case law holds a jury may infer intoxication at the time of service if a toxicologist retained by the plaintiff can show through either retrograde extrapolation or by counting drinks that the tortfeasor driver who allegedly caused injury to a third party possessed a BAC of .08 or above at the time of service.

SCRLA.org

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Moreover, visible intoxication is not the standard (or an absolute defense) in this state; instead, our standard for permit holders is whether a server “knew or should have known” that he or she was serving an intoxicated guest. This is a key factor for permit holders to understand and embrace.

Hartfield v. Getaway Lounge is the case establishing the standard for alcohol liability in South Carolina.

In Hartfield, the South Carolina Supreme Court upheld a $10 million verdict awarded to a passenger seriously injured after the vehicle he was riding in collided with a car driven by a Getaway Lounge patron.

At trial, the plaintiffs established Hoyt Helton, 54, had visited a number of bars on the night of the crash, including The Getaway Lounge. The Getaway Lounge was Helton’s second stop. Testimony revealed Helton had at least three beers at The Getaway Lounge. Additional testimony elicited that at least created the inference Helton had consumed some beer prior to his visit to The Getaway Lounge.

Shortly after leaving his third and final stop, Carolina DriveIn, wherein there was no evidence of any additional alcohol consumption while there, Helton collided with the car occupied by the plaintiff, Jon E. Hartfield, then 18. Helton died at the scene and Hartfield was seriously injured. Hartfield spent approximately 10 months in the hospital following the accident, six months of which he was in a coma. Today, Hartfield still requires care, wears a leg brace, is unable to drive, and has problems with short-term memory.

The Highway Patrol investigated the accident. Fluid samples revealed Helton’s blood alcohol level (“BAC”) to be .212 at the time of the collision. At trial, using retrograde extrapolation,” Plaintiff’s toxicology expert estimated Helton’s approximate BAC during the time he was at The Getaway Lounge to have been between .18 and .20, and that Helton would have been grossly intoxicated and exhibiting symptoms of intoxication while at that bar. The inference from the expert’s testimony was that The Getaway Lounge either knew or should have known Helton was intoxicated at the time the bar served him beer.

The jury returned a verdict for Hartfield for $8 million and $2 million for Hartfield’s father.

The bar attacked the trial court’s use of the criminal statutory inference concerning intoxication, which is used in DUI prosecutions. At trial, the judge directed the jury to determine if it was established at the time alcohol was served to Helton that he was intoxicated. The trial court further advised the jury the law creates a permissive inference that a person is under the influence of alcohol when that person has a blood alcohol level of .10 (now .08) percent or greater. Again, as established through plaintiff’s expert testimony, Helton was alleged to have had a BAC between .18 and .20 while at The Getaway Lounge.

The Supreme Court concluded the jury could consider whether Helton was “under the influence of alcohol” at the time of the accident to determine the existence of his intoxication while at The Getaway Lounge. Reasoning that since South Carolina’s civil alcohol liability remedy is predicated on

criminal statutes, the Court determined it’s permissible for a trial judge to charge a jury on the permissible inference of intoxication under those criminal statutes. Thus, a plaintiff in a similar future case is able to establish intoxication by demonstrating the allegedly intoxicated person possessed a BAC of .08 or greater, which is the current standard for showing a person to be “under the influence” in the criminal context.

Furthermore, the Supreme Court disregarded the bar’s argument the plaintiffs were required to demonstrate Helton was “visibly intoxicated” at the time of the bar’s service of alcohol to him. The Court held that § 61-4-580 requires no such showing at trial. The statute only states that a permit holder shall not “knowingly” sell beer or wine to an intoxicated person. Thus, if a permit holder knows a patron has consumed alcohol prior to entering the permit holder’s establishment, that knowledge can be ultimately used to demonstrate the permit holder “knowingly” sold alcohol to an intoxicated patron. The fact the patron didn’t look intoxicated at the time of sale is not a safety net for the permit holder.

Finally, the Supreme Court upheld the language within the jury charge, which stated the defendants could be liable if they knew or should have known Helton was intoxicated at the time of their service of alcohol to him. The Court held that “knew or should have known” is an articulation of the objective “reasonable person” standard that is the underpinning of every negligence action prosecuted in South Carolina. Thus, if a permit holder possesses information or makes observations that would lead a jury to think the permit holder should have known a patron was intoxicated at the time of service, such evidence is likely admissible and can be used to establish liability.

The difference between the “Visible Intoxication” standard and “Knew or Should Have Known” standard is important to understand. That’s because the threshold for recovery against a permit holder is so much lower under the “Knew or Should Have Known” standard.

As noted above, unlike most states, South Carolina does not have Dram Shop statutes. Dram Shop statutes are civil statutes, which create a private right of action for injured third parties against the person who caused the injury, as well as the establishment that sold him or her the liquor. Most states in the United States that have Dram Shop statutes observe the “Visible Intoxication” standard. This means the key to suing under Dram Shop laws is establishing that the server sold alcohol to someone who was already “visibly intoxicated.” For instance, New Jersey law defines visible intoxication as “a state of intoxication accompanied by a perceptible act or series of acts which present clear signs of intoxication.”

What makes the “Knew or Should Have Known” standard so difficult for permit holders in South Carolina is that someone at .08 BAC isn’t always perceptible, especially in instances where a guest has just come into an establishment and has ordered only a drink or two (i.e., the guest hasn’t been in that one establishment all evening, ordering drink after drink – in that instance, the server should be counting drinks and measuring that service against time the guest has been at the establishment). Absent some sort of investigation by the server regarding prior activities of the guest that has just come in, many people don’t demonstrate any signs of intoxication at

.08 BAC and arguably at any point less than .15 BAC due to gender, height, weight, experience with alcohol. Hence, the challenge for South Carolina permit holders that are trying to serve alcohol safely at their respective establishments.

The Absolute Necessity for Training of Servers by Permit Holders on the “Knew or Should Have Known” Standard So, how does a permit holder account for the “Knew or Should Have Known” standard in its safe alcohol service operations.

It all goes back to training, oversight, and reinforcement.

No matter how big or small the operation, a bar, restaurant, or club in South Carolina should have a documented safe alcohol training program led by competent trainers. This is Safe Alcohol Service 101. Such a program should be taught in an understandable and meaningful manner while onboarding new employees, as well as used to refresh seasoned employees on a periodic basis.

When it comes to training, a permit holder doesn’t have to reinvent the wheel. There are myriad programs in existence, which are readily available to be deployed at your establishment. These programs include ones that are considered the standard in the hospitality industry: •

ServSafe Alcohol Training Program, which was developed by the National Restaurant Association (servsafe.com/servsafe-alcohol)

•

TIPS: Training for Intervention Procedures.(gettips. com)

These programs are formatted as online course addressing concerns specific to restaurants, hotels, bars, nightclubs, and other on-premise liquor license holders where alcohol is served by the drink. These courses are designed to teach participants to prevent intoxication, drunk driving, and underage drinking among the people to whom they sell or serve alcohol.

Putting the Pieces Together: Integrating the “Knew or Should Have Known” Standard Into Your Operations At the heart of an initial encounter with a patron, the training teaches servers to size up patrons to determine if they may be already under the influence. Being under the influence generally means from alcohol, but it can also mean from drugs too. To say the least, a server’s job sizing up the patron can be challenging, We defend many alcohol cases in this state for both insurers and self-insured permit holders. As we have defended these cases, we have identified several trends in the matters where ultimately sizeable indemnity payments have ultimately been paid. Basically, there are two sets of cases we defend: •

The way overserved patron who was at the defendant’s establishment for way too long; and

•

The patron who comes in, often late at night, has 1-3 drinks, leaves, and then gets into an accident. Often, when we investigate the accident, we hear the patron was seemingly okay and not visably intoxicated at the time of service.

The stakes for permit holders are too high to be just hoping

for the best when it comes to safe alcohol service. In Getaway Lounge, the plaintiff pursued the bar’s owner personally for judgment. Even assuming there is sufficient insurance, payment of the $1 Million limits of a liquor liability policy or even a claim with a demand for limits can make a permit holder uninsurable in future years. Instead, in the interest of prudence and reducing the prospect for claims, the permit holder must be proactive when interacting with each guest coming through the doors. This doesn’t mean hostile interrogation of a guest’s activities prior to arriving at the establishment, but it does mean a thoughtful and intentional interaction with the guest to best gauge that guest’s physical and mental status.

It can include jocular and gentle questions like ““What have y’all been up tonight?” The response can provide a server with great cues regarding whether service is appropriate: •

“I just got off of work and figured I’d stop by here on the way home” is going to be generally a green light for service. Most folks aren’t drinking during their work day.

•

Conversely, “We’ve been on the boat at the sandbar all day relaxing and drinking” is going to be either a yellow or red light for service. Applying common sense, what do you think those boaters have been doing all day? And while they may be having a seemingly cogent conversation with the server, how far are they really from a .08 BAC or above?

The same caution should be exercised by a permit holder that is adjacent to other permit holders or in a town’s entertainment district where there are many other nearby permit holders. There is a solid chance that guest or guests have been at other permit holders before coming into yours, especially on a weekend or at late in the evening. Selling $25-50 worth of drinks to potentially questionable guests is not worth the $100,000 or more in premium your establishment will be paying following a claim (assuming you can find coverage in an ever diminishing insurance market here in South Carolina).

Unless and until there are Dram Shop statutes that establish “visible intoxication” as the standard (which is the standard in most states), permit holders in the commercial setting here in South Carolina need to recognize and understand the significance of the “Knew or Should Have Known” standard, as created by the Supreme Court in Hartfield v. Getaway Lounge on their operations. Accordingly, permit holders must adopt an ever-vigilant mentality when it comes to training servers and continuously maintaining appropriate protocols for the safe service of alcohol to account for this standard.

Christian Stegmaier is a senior shareholder and firm president of Collins & Lacy, PC, a Columbia, South Carolina-based defense firm that serves all of the Palmetto State. Christian is also chair of the firm’s Retail & Hospitality Group and represents the nation’s and region’s largest retail and hospitality operators doing business in South Carolina. He has a national reputation in the retail and hospitality law space and routinely speaks nationwide on the issues of alcohol liability, premises liability, third party tort, food claims, and diversity/inclusion in law. Christian chairs the DRI Retail & Hospitality Committee. He is also active in the International Amusement & Leisure Defense Association, Academy of Hospitality Industry Attorneys, and Primerus. He is a member of ABOTA. He is recognized by his peers in SuperLawyers and Best Lawyers. Christian can be reached for your questions at cstegmaier@collinsandlacy. com or (803)-255-0454.

Hospitality Educator of the Year Bill Twaler

Hospitality Supplier of the Year SpotOn

Outstanding Community Service Program - Haydn Shaak

Outstanding Community Service Program - SERG Restaurant Group

Outstanding Community Event Midlands Area Vaccination Clinic for Hospitality Employees

Rising Star Qiah Hernandez-Rivera

Hotelier of the Year Yatish Patel

Restaurateur of the Year Bob Munnich

Runner Up: Jason Price

Runner Up: Michael Ivey

Lodging Manager of the Year Jana Medlin

Restaurant Manager of the Year Natasha Cline

Runner Up: Chris Osborne

Runner Up: Lucas Haramut

Lodging Front of House Employee of the Year Delphine Holden

Restaurant Front of House Employee of the Year Nichelle Torres (pictured: Rick Erwin)

Runner Up: Bryan Hernandez

Runner Up: Sydney Lopez

Lodging Heart of House Employee of the Year Rosa Fonseca

Restaurant Heart of House Employee of the Year Tierra Locklear

Runner Up: Telly West

Runner Up: James Glenn

Restaurant Bartender of the Year Ben Flemming

Outstanding Certified Sommelier Hernan Martinez

Runner Up: Kelsey Bundy

Runner Up: Tori Whittenberg

Hotel Chef of the Year Fernando Coppola

Restaurant Chef of the Year Adam Cooke Runner Up: Robin Hinton

Event Spotlight

2022 Stars of the Industry Awards Gala The South Carolina Restaurant and Lodging Association (SCRLA) hosted its 69th Annual Stars of South Carolina Hospitality Awards Gala on February 21 at 1881 Event Hall in Spartanburg.

The Stars of South Carolina Hospitality Industry Awards celebrate the exceptional professionalism and outstanding service of top individuals in the hospitality industry. These individuals go above and beyond to contribute to the positive image of the hospitality industry while also being confronted with supply and labor shortages.

During the awards ceremony, 31 individuals were recognized for their contributions to South Carolina's hospitality industry. A full list of winners and runners up can be found at SCRLA.org.

National Restaurant Association Names Michelle Korsmo CEO The National Restaurant Association has appointed Michelle Korsmo, a seasoned association executive with a policymaking background, as its new president and CEO, effective May 1.

Korsmo will also serve as CEO of the association’s training and educational arm, the National Restaurant Association Educational Foundation.

Observers have been waiting to see if the association would fill the vacancy with someone with deep association experience or opt for a lobbying veteran to serve the group's advocacy mission. Korsmo brings experience in both realms.

For about the last four years, she has been president and CEO of the Wine & Spirits Wholesalers of America, a trade association for the alcoholic-beverage industry. Prior to that post, she was CEO of the American Land Title Association and has also held a senior position at the Americans for Prosperity Foundation, a conservative think tank focused on economic policy and opportunity. During the first administration of President George W. Bush, Korsmo was deputy chief of staff for Elaine Chao, then the U.S. secretary of labor.

Korsmo assumes the top job at the association from Marvin Irby, who was fulfilling the roles on an interim basis until a new permanent CEO was hired. The post was vacated by the resignation late last summer of Tom Bene. Irby is also the group's CFO and chief people officer.

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Reprinted from LodgingMagazine.com

All Aboard: Expert Advice on Taking a Personalized Approach to Employee Onboarding, Training & Retention Joel Carver, who is founder and CEO of the hospitalityfacing human capital organization The Carver Companies, is also co-author, with Mary Weber, of the book The People Effect, Find, Grown, and Retain The Best of the Best, in which the authors claim, “Hotel operators must treat their teams like the great assets they are to the company—not like commodities.” It was that point he stressed while sharing his thoughts with LODGING about the importance of employee onboarding, training, and, most of all, retention to set up hotels and their team members for success.

Commenting on the latest labor woes the hotel industry is facing, Carver says, “In the last 24 months, we first saw layoffs, then a reluctance of employees to return to work, and now what’s being called ‘the great resignation.’ While there’s always been high turnover in the industry, it wasn’t a significant problem when demand for jobs was high.

That’s not the case now.”

SCRLA.org

He says to achieve the goal of creating and growing a team that can meet the ever-changing demands of expectations of both guests and owners—especially in a tight labor market—hotel employers need to make a commitment to giving employees the information and support they need to adjust and succeed right from the start. “Instead of throwing new employees to the wolves, we need to make a greater effort to help them succeed,” he says.

Onboarding This, says Carver, starts with a conscientious approach to onboarding new employees so they are less likely to become a turnover statistic. “The onboarding piece is hugely important now. Too often, new hotel employees come in and don’t clearly understand what they’re walking into.” Carver observes that with high demand for their services, prospective and new employees have Continued on page 24...

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SCRLA Hosts 2022 South Carolina ProStart Invitational Boot Camp The SCRLA's 2022 South Carolina ProStart Invitational Boot Camp was a HUGE success! Hosted February 4, the boot camp was held at the Culinary Institute of the Carolina's at Greenville Technical College During the boot camp, students learned insightful tips and ideas for their upcoming culinary and management presentations. Culinary Students also helped prepare and cook the lunch served during the event. Schools also competed for three cooler sets, with Chester County Career Center, Thunderbolt Career & Technology Center, and Woolard Technology Center taking home the prizes.

This event prepares students for the upcoming 2022 South Carolina ProStart Invitational, which will be held March 6-8 at the DoubleTree by Hilton Columbia.

World Food Championships' Final Table Event Coming to Columbia, SC "South Carolina is famous for our hospitality and the quality and originality of our culinary scene."

Often referred to as “The Ultimate Food Fight,” The World Food Championships’ final competition, “The Final Table” will be held at the University of South Carolina, April 30May 1.

The World Food Champion will be crowned when the 10 category champions compete at the McCutchen House, located on the University of South Carolina’s historic Horseshoe. The regional tourism office chose the university for this prestigious event since it is an everchanging blueprint of South Carolina’s rich and unique history. The competition will be filmed for a special Final Table televised broadcast later this year.

“It was an easy decision to bring this event to the McCutchen House and the university’s Horseshoe. The McCutchen House exemplifies Southern hospitality and is especially ideal since it is operated by the School of Hotel, Restaurant and Tourism Management. The location provides the perfect atmosphere to showcase the region to Final Table competitors and guests,” said Miriam Atria, President/CEO of the Capital City/Lake Murray Country Regional Tourism Board.

The event will draw 10 top culinary competitors and their families to the Capital City/ Lake Murray Country region and the community is invited to join in the fun. The public is invited to Boyd Plaza in Downtown Columbia on Saturday, April 30 from 10 a.m. to 3 p.m. for a free expo with live entertainment, interactive exhibits and, of course, good food. The event will include the chance to meet the chef competitors and enjoy music by Cody Webb and Spencer Rush.

“Visitors and locals will be greeted by an enthusiastic community and a fun filled weekend. We encourage everyone to come out and join in the celebration at Boyd Plaza,” said Vickie Davis, Vice President of Special Events/Funding for the Capital City/Lake Murray Country Regional Tourism Board.

The contest will last from April 30 through May 1, featuring three rounds of challenges inspired by local cuisine experts. Like previous Final Table events, the 2021 finalists will participate in an elimination process

SCRLA.org

that narrows the 10 Food Champs to five, then three, and ultimately one winner. More details on the specific challenges will be revealed soon.

The School of Hotel, Restaurant and Tourism Management at the University of South Carolina is one of the top 10 hospitality and tourism management schools in the country. The school is part of the College of Hospitality, Retail and Sport Management and offers tourism degrees and hospitality degrees at the undergraduate, master’s and Ph.D. level.

Team Lake Murray Country is no stranger to major food sport events as the Team played host to a WFC Super Regional Qualifier in 2021 by incorporating the competition into their fan-favorite “A Taste of Lake Murray.” The event qualified six chefs/cooks who just competed in the main event in Dallas. The destination was also recently named a Top Southern Food & Travel Destination by Food & Travel.

“The Final Table competition is a unique opportunity to showcase our incredible capital city, the beauty and charm of UofSC’s historic campus, and all of the adventures that visitors can discover in the surrounding region. We’re proud to welcome the Final Table competitors, and we’re grateful to the team at Capital City/Lake Murray Country for bringing this event to Columbia,” said Duane Parrish, Director of the South Carolina Department of Parks, Recreation & Tourism.

23

...Continued from page 21 more leverage when it comes to getting their own needs met. “Employers have always had high expectations of employees; new team members now have their own expectations of us.”

one, and then firing, onboarding, and training would be number two. He says it’s a mistake to take employees who have stayed over the years—especially during the pandemic—for granted.

To meet those expectations, he says, employers need to be prepared. “I know one of the greatest frustrations for a new team member is not knowing where to go or what to do when they first arrive. For example, if they need a laptop, is it there and ready to go? What about passwords and access? Is their training and their orientation scheduled and ready to go? For these reasons, everything should be spelled out on day one. Nothing should be assumed.”

In his opinion, meeting staffing needs comes down to meeting team member needs. “We may think it’s all we can do to keep up with the demands of our jobs, but if we can’t maintain the staffing level we need, we need to make changes.”

Carver says when an employee accepts a position only to quit within a short period of time, it begs these questions: “Did we do a good job of onboarding them? Did we make them feel welcome?”

Training Carver considers training as an ongoing process that continues long after the initial designated program, as employees flex along with their hotel to meet changing demands and, ideally, their own career growth goals.

However, Carver describes his preferred approach to that new-hire training process, which, depending on the position, can last anywhere from two to four weeks.

“The only thing that I always have found works very well is to mix it up; don’t just park them at a computer with videos and modules, which give them a great foundation but can become boring really fast.” Because new employees need hands-on experience and the chance to apply what they’re learning, Carver recommends rotating module training, human interaction training, and hands-on training. He notes, too, that there needs to also be some level of testing, which gauges learning and assesses how well the trainer did their job.

Then, he says, there is retraining. “Providing support really does come down to training and retraining when things change, as during the pandemic, when along with new cleaning and social distancing protocols, many hotels began providing limited housekeeping. Now, as this reverts back to daily housekeeping, we need to retrain our team members appropriately.” Observing that things will continue to change, he says ongoing training is essential. “Hotels must be able to provide the services guests expect—regardless of what the expectation is.”

Retention And, last, is what Carver says he would actually place first. “If I had to prioritize, retention would be number

24

Carver recognizes that it may be difficult to incorporate yet another “demand,” but says, “We need to show our employees just how much we value them. We need to respond to their feedback, just as we do to that of guests.”

He urges hotels to take seriously feedback from hotel employees, whose expectations include that hiring employers make a good impression on them, that they are onboarded correctly and understand exactly what’s expected of them, and that they are trained completely before they are turned loose to do the job.

Carver’s own additional suggestions—getting back to pairing new employees with a mentor to guide them and making employees feel valued with expressions of thanks—all come down to the personalized approach he favors in all matters related to human capital. “The bottom line is that it’s really all about a personalized onboarding and training experience. For those who think they don’t have time to do this, I would say they don’t have time not to do it.”

Training Tricks Joel Carver, The Carver Companies’ founder and CEO, says a way to take some of the stress—and the guesswork—out of employee training is to have at the ready a written onboarding document detailing exactly what they need to do. “Every new person should have a sort of roadmap for those first days. They shouldn’t be just sitting around, wondering. On day one, this might read: ‘First go to HR to finalize new-hire paperwork and get set up with equipment, passwords, etc.”

Carver also recommends developing a mini-training manual of perhaps five to 10 pages for every position.

“This tells them the things they need to be aware of that aren’t necessarily in the general employee manual—what they need to do to start off on the right foot in their new job. I know my own organization works at a frantic pace, and new employees who aren’t prepared for that can struggle,” he says, adding, “Even the most seasoned professional needs to learn how to function in the new world they are entering.”

SCRLA.org

The SCRLA recently named Michael Frits, General Manager of the DoubleTree Resort by Hilton Myrtle Beach Oceanfront, as its new Board Chairman. Frits succeeds Bobby Williams, President and CEO of Lizard’s Thicket Restaurants, who served as Chairman for two years prior.

“It is my absolute pleasure to be working with the team at SCRLA to continue the phenomenal work they have done to help guide our industry through growth, innovation, and most recently, the challenges of the pandemic,” said Frits. “As we embrace the culture of the ‘new normal’, I look forward to working with the SCRLA and the board of directors to further South Carolina’s hospitality industry.”

Frits has spent more than 30 years as a manager in the lodging industry, leading hotels across the United States including: Hilton Atlanta, Hilton Anatole in Dallas, The Palmer House Hilton in Chicago, Capital Hilton in Washington, D.C., Hilton San Francisco, and Hilton Anchorage. Frits recently transitioned the independent Springmaid Beach Resort into the DoubleTree Resort by Hilton Myrtle Beach Oceanfront, a 453-guest room resort which sits on 27 acres at the south end of Ocean Boulevard. The resort offers more than 40,000 square feet of meeting space.

Frits graduated from the University of Wisconsin-Stout in 1992 with a Bachelor of Science in Hotel and Restaurant Management.

SCRLA Welcomes Hank Davis to the Team The SCRLA recently welcomed Hank Davis to the team as Vice President of Governmental Affairs and Community Development. Hank will be responsible for state advocacy, regulatory relations, and municipal government relations in addition to developing the SCRLA's Political Action Committee.

Hank graduated from Wofford College in 2015 with a Bachelor of Arts Degree in Government and History with a concentration in Political Thought. Prior to working with the SCRLA, Hank was an Implementation Specialist with DDC Public Afairs and a Government Affairs Associate with Witt Global Partners in Washington, D.C. He has more than six years of experience in finance, lobbying, government relations, public affairs, client relations, database management and PAC fundraising.

Hank brings experience and a proven track record of success in the advocacy area, which will be invaluable in meeting the Association's goals and objectives in cultivating policy to protect our members best interests.

South Carolina ProStart Educator Excellence Awardee Dominic Hawkes has over 29 years of experience in the food service industry, getting his start in some of London’s finest hotels, including the Ritz Carlton. He completed his Bachelor of Arts Degree in business and hospitality studies. Dominic then travelled to Charlotte, NC to work for Bank of America and Corporate Food Services at their headquarters. Following this he took the opportunity to work for Charlotte City Club in uptown Charlotte. He retired after 19 years to move into teaching. Since 2019, Dominc has taught Culinary Arts at Lancaster County School District Career Center. He is certified to teach and proctor four certifications offered by the National Restaurant Association, including ProStart Culinary and ServSafe.

Dominic is happily married to his amazing wife Courtney of 20 years and has two teenage children, Jack & Tate. Join us in congratulating our ProStart Educator Excellence Awardee for South Carolina!

SCRLA UPDATES

SCRLA Names New Board Chairman

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NOW’S THE TIME! Finish up your college degree with us!

On your own time On your own terms Around your schedule

Take advantage of our industry’s rebound, and catapult yourself to the top of the career ladder by completing your education online.

Uof SC Palmetto College at USCB Online Bachelor’s Program in Hospitality Management Take advantage of open enrollment, with new classes starting every 8 weeks We accept transfer credits from your previous Associate- and Bachelor-level coursework www.uscb.edu/academics/online_programs

SCRLA introduces the Global Hotel Rate Travel Program Hotel Employee Rate is a hospitality company dedicated to hoteliers.

Drawing inspiration from the hotel team members working tirelessly during COVID, Hotel Employee Rate came together in 2020 by seasoned hotel executives with the aim of offering the benefit of hotel employee rate travel to all hoteliers and hotels worldwide. We recognize the contribution employee rate travel has for the recovery of travel and tourism, the benefits it has for our colleagues in the hotel industry, and the positive impact it can have to connect people.

Hotel partners of SCRLA receive complimentary enrollment for the first year when signing up with the Hotel Employee Rate travel program through SCRLA. To sign-up, please email us at scrla@hotelemployeerate.com Hotel employees can add up to ten of their friends and family to the Hotel Employee Rate travel program.

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For more information, visit PerformanceFoodservice.com today.

Upcoming Events March 6-8

South Carolina ProStart Invitational March 15

Florence Area Chapter Meeting April 27

Hospitality Day at the Statehouse October 9-11

Marketing & Operations Conference

HOSPITALITY DAY at the Statehouse WEDNESDAY, APRIL 27, 2022 • 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/events for more information!

PRSRT STD US POSTAGE PAID COLUMBIA, SC PERMIT 168

PO Box 7577, Columbia, SC 29202

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