Insider | Spring 2024

It is certainly true that time doesn’t stand still... by the time this reaches you, we will be closing in on the end of the first quarter! So, here’s a recap of the Association’s work on your behalf in Q1 and a sneak peek into the second quarter of the year:

Restaurant Week South Carolina took place January 11-21 with impressive numbers!

The SCRLA's Annual Meeting was held January 22 in Columbia with a strong show of members who thanked Carl Sobocinski, president and CEO of Table 301, for his work as Chairman in 2023 and welcomed Tony Tam of IMIC as Chairman for 2024, as well as new board members as presented by the nominating committee.

The Stars of the Industry Awards Gala presented by Cool Care Heating, Air, Plumbing & Refrigeration was held on February 19 at the Marina Inn, Myrtle Beach (photos on pages 12-13).

The 2nd Annual Rock & Roast benefiting Hubitality and presented by Pinnacle Partnership was held at the FR8 Yard in Spartanburg on February 24. This event supports hospitality workers in need in Spartanburg County.

Our 20th Annual ProStart Invitational presented by the United States Coast Guard was held at the Embassy Suites at Kingston Resorts March 3-5. I hope that you followed the event on social media and will join us in congratulating the winners who will compete in the National ProStart Invitational in Baltimore at the end of April.

Hank’s update on pages 8-9 highlights our advocacy on the legislative priorities identified by the membership. We appreciate all who have traveled to Columbia to testify, contacted their Senator or Representative on an issue and contributed to our advocacy funds. It is more important than ever that our industry is proactive rather than reactive. Although we have covered a number of bills through meetings, written communications and personal testimonies, there is still much to be done as we anticipate a whirlwind of activity in the final weeks of session after the filing dates and initial budget work. Please watch closely for your weekly Legislative Insight and our calls to action to ensure industry concerns are addressed at the State House.

The second quarter promises to be just as busy as the first! Here’s a quick preview:

• National Restaurant Association Public Affairs Conference, April 15-17 at the Westin Downtown, Washington DC. Join us for this annual conference which features informative speakers and legislative discussion, as well as the opportunity to meet with our delegation about industry issues.

• The Myrtle Beach Area Hospitality Association’s 15th Annual Trio Dinner, April 15th, Sheraton, Myrtle Beach. The Trio Dinner is meant to support and promote the culinary arts profession and give students real-world experience. A portion of the proceeds from the event go to the Myrtle Beach Area Hospitality Association’s scholarship funds for hospitality and culinary education.

• AHLA and NRA joint “On the Road” Event – April 23rd, Columbia (location TBA) Join leaders of our national partner associations and other invited guests and speakers to discuss industry initiatives, achievements and challenges, trends to watch, etc.

• And immediately following on April 24, our flagship legislative event, Hospitality Day at the State House! One of the most popular events on the legislative calendar bringing together industry leaders from across the state to talk with our legislators while enjoying a sampling of amazing SC cuisine!

WHEW! Mark your calendars now and we will see you there!

Susan H. Cohen President & CEO

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.

Susan Cohen President & CEO

Douglas OFlaherty Chief Operating Officer

Hank Davis VP of Governmental Affairs & Community Development

Lenza Jolley VP of Membership & Development

Chris Patel Membership Services Manager

AnnMarie McManus Meetings & Events Manager

Christal VanWickler Bookkeeper/Education Coordinator

Victoria Tobin

Executive Director, Myrtle Beach Area Hospitality Association

Luna Hiott & Abigail Green Communications Coordinators

Tony Tam Chairman

Heidi Vukov Vice Chairman

Jonathan Sullivan Treasurer Members

Jonathan Kish, 82 Queen

Chad Patterson, Raldex Hospitality Gil Smith, US Foods

Kirk Watkins, Ruth's Chris Steak House Greenville

Meet the SCRLA's New Board of Directors and Executive Committee

The Legislative Landscape: South Carolina State House Activities Impacting the Hospitality Industry

Hospitality Day at the State House and The Hospitality Show

SCRLA Hosts 2024 Stars of the Industry Awards Gala in Myrtle Beach

SC Department of Agriculture Taking Over Restaurant Inspections, Among Other Responsibilities

Tips for Maintaining Refrigeration Equipment During the Warmer Months

PGA Tour Is Headed To Myrtle Beach For New Event 6 8 10 12 16 20 22 24 26 28 30

National Partners Release Statements on Joint Employer Final Rule

National Restaurant Association: US restaurant sales to exceed USD 1.1 trillion in 2024

Three Predictions for the Hospitality Industry in 2024

Employment Law Alert: Your Handbook is Probably Illegal After the NLRB’s Groundbreaking Decision

Meet the SCRLA's Executive Committee

The SCRLA hosted its Annual Meeting on January 22 at the Hilton Columbia. During the meeting, new board members were elected and new officers were installed.

Tony Tam Chairman

Chad Patterson Raldex Hospitality

Gil Smith US Foods

Kirk Watkins Ruth's Chris Steak House

Heidi Vukov Vice Chairman

Jonathan Sullivan Treasurer

Carl Sobocinski Past Chairman

Jonathan Kish 82 Queen

Board of Directors

Adam Ashcraft JonesCraft Restaurant & Hospitality Recruiters

Don Alcorn Rush's

Vanessa Bailobreski F2T Productions & Honey River Catering

Ben Blackwell Hospitality America

Dan Blumenstock Lowcountry Hotels

Jesse Bullard Southernway Catering

Matt Burros DoubleTree Hotel Columbia

David Crone Brittain Resorts and Hotel

Steve Cook Saluda's

Tony Cuajunco Holy City Hospitality

Duane Davis Sysco Columbia

Randy DeVeaux Kingston Resorts

Paul Garcia Dayton House

Bill Groves Embassy Suites Greenville Golf Resort

Tommy Hall Hall Management Group

Adam Hayes Larkins Restaurant Group

Kyle Hughey Charlestowne Hotels

Thomas McDonald Compass Cove Resort

Payden Mitchell The Seals

Dartarian Moore BreakThru Beverages SC

Harris Mullis Lee's Famous Recipe

Bob Munnich Dray Bar and Grill

Danielle Nance Restaurant 17

Chris Olson Hub City Hospitality

Chris Oxford Pickney Carter Center

Madison Parker Raines Hospitality

Holly Penny SREE Hotels

Nathan Rex Trident Technical College

Scott Smith University of South Carolina

Jay Wiendl

The Beach House Hilton Head Island

Andy Wolfe Grand Palms Resort

Michelle Woodhull Charming Inns of Charleston

Ex-Officio Board Members

Fenil Desai Quality Inn

Helen Hill Explore Charleston

Amy Duffy

SC Dept. of Parks, Recreation & Tourism

Duane Parrish

SC Dept. of Parks, Recreation & Tourism

Karen Riordan Myrtle Beach Area Chamber of Commerce

Catherine Dority Lowcountry Hospitality Association

The Legislative Landscape: South Carolina State House Activities Impacting the Hospitality Industry

The South Carolina State House has been a hive of legislative activity since the commencement of the second half of the 125th legislative session of the SC General Assembly back in early January. At the time of writing this article, we have already seen several bills set for special order in the Senate, with topics covering the constitutional open carry of firearms, the legalization of medical marijuana, establishing a cabinet-level Office of Health and Policy, and the necessary qualifications for teachers to serve in SC public schools based of relevant industry prior experience. With 2024 being an election year (every seat in the SC House and Senate are up for grabs) and with such little time remaining before the crossover deadline (when a bill must pass at least one legislative body) on April 10th, there are many bills working their way through the legislative process that are vying for the attention of our elected officials. And of course, the budget process demands a great deal of time and discussion.

Skyrocketing insurance premiums across all lines of business continue to have the growing attention of the public, the media, and our lawmakers. Most notably, a House Ad Hoc Committee, tasked with studying the surging costs and availability of liquor liability insurance and commissioned by Speaker Murrell Smith, has introduced H. 5066 – the Fair Access to Insurance Requirements Act. For businesses required to carry liquor liability insurance, coverage could be obtained directly through a newly established state pool which would be funded by revenue collected from the excise tax imposed on alcoholic liquor by the drink for on-premises consumption. The bill would also update the existing code to drop the amount of mandated liquor

liability insurance coverage ($1 million minimum) if certain factors are met. Examples include:

• Closing your business at 10pm or earlier.

• Completes an alcohol server training course approved by the SC Department of Insurance.

• Meets requirements set by the SC Department of Insurance to limit the risk to the public, which may include identification scanners, cameras, and limits on drink specials.

• Has less than 30% of its total sales deriving from alcohol sales.

Furthermore, the bill also puts into code the recent SC Department of Revenue interpretation of needing a liquor liability policy or general liability insurance policy with a liquor endorsement for an aggregate, not per occurrence, of at least $1 million. At a recent Ad Hoc Committee hearing, SCRLA Immediate Past Chair, Carl Sobocinski, and SCRLA President & CEO, Susan Cohen, both shared vital industry-specific comments and prospectives and requested several points of clarification needed on the bill. Committee Chairman Jason Elliott said after the meeting that additional industry-friendly changes to the bill would be considered due to the association’s advocacy efforts. In addition to legislative focus, the SCRLA Ad Hoc Alcohol Task Force has held several meetings, including three with DOR staff, to address the often confusing and outdated alcohol regulations related to both permits and licenses.

If you’ve been following our weekly updates in the Legislative Insight, it’s no surprise that lawsuit reform remains a hot topic of debate on both sides of the isle. S. 533 – the SC Justice Act, would modernize the way South Carolina’s liability laws work to ensure businesses are only responsible for paying damages equivalent to their share of fault in civil lawsuits. The bill has already received several subcommittee hearings so far this session, though at the time of writing this article, no action has been taken by members of the subcommittee on the bill. There has been increasing chatter in the State House lobby that Senate leadership is poised to recall the bill from committee and bring it directly to the Senate floor for immediate consideration, though it remains to be seen if Majority Leader Shane Massey has the needed votes to invoke cloture and force a vote on the bill. South Carolina’s business community has long advocated for ensuring that our state remains competitive in recruiting and retaining job creators while continuing to protect injured South Carolinians. The SC Justice Act would ensure just that, and the SCRLA will continue to advocate for its passage.

Short-term rentals remain a topic of concern at the State House, with several bills being filed this session that require the industry’s close attention. H. 3253, if signed into law, would prohibit local governments from enacting any type of ordinance that bans the renting of a residence, spanning from entire homes to individual beds, for fewer than 29 days,

and if a local government enacts any type of short-term rental regulation anyways, they could be out millions of dollars of state funds. What’s even more concerning is that the bill ignores the South Carolina Department of Revenue’s definition, derived from the original accommodation tax legislation, of a short-term rental which is “any sleeping accommodations furnished at any place in which rooms, lodgings, or sleeping accommodations of any kind, including a taxpayer’s residence, are furnished to transients for less than 90 consecutive days.”

A growing number of cities around the state already have set, or are in the process of setting, their own regulations around short-term rentals in their communities. In Greenville, homes in residential zoning districts can’t be leased for any fewer than 30 days, and in Myrtle Beach, it’s no fewer than 90 days. In Folly Beach, residents voted to cap the number of short-term rentals allowed at 800, and in Charleston, homeowners must follow strict rules, including obtaining a business license and living at the residence for at least half the year. Under the bill, cities and counties that impose short-term rental bans would face penalties, including not being able to collect a 6% commercial property tax currently levied on short-term rentals. Instead, those property owners would be charged a lower 4% rate reserved for primary residences. Local governments would also be barred from receiving money from the state’s Local Government Fund, from which annual allocations can range from hundreds of dollars to millions, based on population. A similar bill was introduced in the Senate (S. 953) in January. At the time of writing this article, neither bill has been assigned to a subcommittee for public comment, but we expect there to be public hearings on both H. 3253 and S. 953 at some point this session.

While these topics are all priorities of the SCRLA’s Governmental Affairs team, there are dozens of other bills that we are actively monitoring, including increasing the apprenticeship tax credit, establishing a statewide family medical leave program for small businesses, additional workforce development programs specific to South Carolina’s hospitality and tourism industries, public school start dates, and minimum wage legislation, just to name a few. For more information about bills we are monitoring this session and the SCRLA’s ongoing advocacy initiatives at both the state and federal level, please visit our website at scrla.org/GA or scan the QR code below. Scan Me

Join us for Hospitality Day!

On April 24, South Carolina's hospitality industry will hold a legisltive luncheon unlike any other event on the General Assembly's social calendar – a Taste of South Carolina featuring restaurants from all across the state serving a taste of their menu specialties. The event promises to be a crucial platform for industry leaders, restaurateurs, hoteliers, and other stakeholders to engage directly with policymakers, addressing key issues affecting South Carolina's hospitality sector.

Focused Advocacy for a Resilient Industry

Hospitality Day serves as a rallying point for the SCRLA, bringing together members from across the state to voice concerns, discuss challenges, and propose solutions that will shape the regulatory landscape for the hospitality industry. This year, the SCRLA has identified several key areas of focus, including workforce development and other regulatory reforms such as lawsuit reform and modernizing South Carolina’s outdated laws that govern alcohol. With so many different factors competing for legislator’s attention, Hospitality Day becomes even more crucial in supporting the growth and long-term viability of South Carolina's hospitality sector.

Engaging with Policymakers

Attendees will have the opportunity to engage directly with state legislators, allowing them to convey firsthand the needs and priorities of their businesses. The goal is to foster a collaborative relationship between the industry and policymakers, ensuring that legislative decisions align with the realities faced by those who serve on the front lines of our critical industry.

Supporting Economic Growth

The hospitality industry plays a significant role in South Carolina's economy, providing jobs and contributing to the state's vast tourism appeal. By actively participating in the legislative process, the SCRLA aims to create an environment that fosters economic growth, job creation, and the overall prosperity of our industry.

For more information about Hospitality Day at the State House and to learn more about how you can get involved, please visit our website at scrla.org/ events.

EXCLUS IVE BRA ND

The Lowcountry Hospitality Association hosted their annual Lowcountry Oyster festival on February 4 at Boone Hall Plantation. Highlights included live music on the main stage, raw oyster eating and shucking contests, wine, a selection of domestic and imported beers, and a "Food Court" showcasing a variety of local favorite restaurants.

Myrtle Beach

Top local executive chefs join their students to bring you the Trio Dinner, A Coastal Culinary Experience. Grand Strand Provisions will provide hors d’oeuvres, and the event includes a cocktail bar, live entertainment and a silent auction. The Trio Dinner is meant to support and promote the culinary arts profession and give students real-world experience. A portion of the proceeds from the event go to the Myrtle Beach Area Hospitality Association’s scholarship funds for hospitality and culinary education.

Columbia

The 6th Annual Columbia Food & Wine Festival will take place from April 24-28. This festival week is a mosaic of diverse events, each offering a unique taste of Columbia's vibrant food and wine culture. Each day of the festival unfolds with new flavors and unforgettable experiences. The South Carolina Restaurant & Lodging Foundation will benefit from this annual event.

Spartanburg

SCRLA UPDATES Charleston

The Spartanburg Chapter hosted their 2nd Annual Rock and Roast, an oyster roast benefiting Hubitality, on February 24, 2024. This event, presented by Pinnacle Partnership, serves as a fundraiser for Hubitality so they may continue providing emergency medical assistance and funding to those in critical need and facing financial hardship.

SCDA Taking Over Restaurant Inspections July 1

The South Carolina Department of Agriculture (SCDA) is preparing to take on some important regulatory duties currently handled by the Department of Health and Environmental Control, better known as DHEC.

Starting July 1, 2024, the SCDA will handle all retail food safety inspections, including restaurant kitchens, school cafeterias, caterers, grocery stores, some convenience stores, and more. SCDA is also taking over DHEC’s Manufactured Food Programs, including soft drinks, cheese and dairy, bottled water, and ice, as well as the Milk Inspection Program and Laboratory.

“These new duties will strengthen our ability to assure food safety while also streamlining services for businesses, some of which are currently regulated by both SCDA and DHEC,” said Commissioner of Agriculture Hugh Weathers.

This change was a result of Senate Bill 399 (S.399), a bill restructuring DHEC and dividing oversight among new and existing agencies.

These inspections were formerly handled by DHEC. The DHEC conducts risk-based inspections in approximately 22,000 establishments in the state annually or quarterly, based on an establishment's food processes and their compliance history. Their five risk factors are: food contact equipment cleanliness, cooking temperatures, employee health, food sources, and food holding temperatures.

Retail Food Establishment Inspections are scored based on a 100-point scale: Grade A is 87 points or higher, Grade B is 78 to 87 points, Grade C is 77 points or lower.

What does SCDA do?

The SCDA ensures that foods are manufactured and marketed under safe and sanitary conditions through routine surveillance inspections. Inspectors ensure that food is pure and wholesome, safe to eat, and properly labeled according to food safety laws and regulations. The department regulates foods manufactured for wholesale distribution.

As Assistant Commissioner at the SCDA, Derek Underwood has expressed his excitement for the upcoming change, elaborating on the long-standing rapport between these two departments.

“We’ve worked with the DHEC food protection staff and the dairy staff since the SCDA was formed,” said Underwood. “We have memorandums of understanding, work sessions, and work groups; we share regulatory oversight over several facilities, so it is a natural fit.”

What's Changing?

The South Carolina Department of Agriculture will take over regulation of:

• Retail food safety (restaurant kitchens, grocery stores, caterers, school cafeterias, some convenience stores, and more)

• Dairy and Milk

• Wholesale bottled water, soft drinks, and ice manufacturing

• A new look for decals, manuals, forms, and other materials.

• Online applications and fee payment.

• No more regional offices: Food safety will be headquartered in Lexington County, with regionally based inspectors working from their vehicles, creating efficiency for customers

• One agency for Food Safety: After the transfer, SCDA will regulate food safety in South Carolina except for meat and poultry

The blending of these two agencies will mean a steep increase in food safety focus within the SCDA. A former 135 employees will now expand to over 4,000 as the SCDA merges into the DHEC’s previous facilities.

“We’re going from an agency of 3% to 55% focused on consumer protection and ensuring our food supply is safe and wholesome,” said Underwood.

What Will Stay the Same?

• Regulations: The laws governing food safety are not changing

• Staff: DHEC food safety staff will become part of SCDA

• Other food safety programs: SCDA will continue to regulate wholesale food safety, feed safety, produce safety and other programs as before

• Cottage Foods: The South Carolina Home-based Food Production Law remains in effect.

“What will change is that the regional office is becoming centralized, which we hope will make more consistency and more uniform decision making,” said Underwood. “We hope that restaurant owners and lodging agencies can see a faster reaction time because the decision making will be centralized.”

2024 Governor’s Cup Awarded to the RBC Heritage presented by Boeing

More than 350 tourism industry leaders from across the state gathered for the 59th annual South Carolina Governor’s Conference on Tourism & Travel on Hilton Head Island at the Westin Resort & Spa, February 12-14.

The annual tourism conference provides opportunities for knowledge sharing, networking, and celebrating industry accomplishments. To open the conference, Duane Parrish, director of the South Carolina Department of Parks, Recreation & Tourism (SCPRT), previewed Discover South Carolina’s 2024 tourism marketing strategies and highlighted the impact the industry has on the state.

Gov. Henry McMaster was in attendance to celebrate the success of the tourism industry and present the RBC Heritage Presented by Boeing the 2024 Governor’s Cup. This annual award recognizes outstanding practices in tourism promotion, marketing, and development and is given to an attraction, destination, or development that demonstrates extraordinary success in tourism, positively impacting our economy and quality of life.

Played over the Harbour Town Golf Links on Hilton Head Island since 1969, the RBC Heritage Presented by Boeing celebrated its 55th year in 2023. It gets better every year, with marketing initiatives that strategize not if, but when, the tickets will sell out. According to a 2019 Economic Impact Study, the RBC Heritage yielded $102 million for the state overall and encouraged more than 90% of tournament visitors to revisit Hilton Head Island.

“Tourism is a major industry for us, and the future looks great,” said Gov. McMaster. “We are in paradise. We have so much in terms of natural beauty, history, and climate. This is the perfect place for a vacation. There is no place like it on earth, and I want to thank you for recognizing that and sharing it with the world.”

The tournament will be played April 15-24.

National Restaurant Associaton and AHLA Release Statements on Joint Employer Final Rule

The National Restaurant Association (NRA) and American Hotel and Lodging Association (AHLA) each released statements concerning the final rule of the Joint Employer status. The National Labor Relations Board released this final rule on October 26, 2023, an addition to the “Joint Employer Status Under the National Labor Relations Act.” The final rule establishes that, under the National Labor Relations Act, two or more entities may be considered joint employers of a group of employees if each entity has an employment relationship with the employees, and if the entities share or codetermine one or more of the employees’ essential terms and conditions of employment.

Both the NRA and AHLA released a statement regarding this final rule the day it was passed, condemning the standard’s expansion. The AHLA wrote:

“AHLA President & CEO Chip Rogers is speaking out today after the National Labor Relations Board issued a final regulation unjustifiably expanding the “jointemployer standard” under the National Labor Relations Act. The standard is used to determine when two or more employers are jointly responsible for a shared group of workers’ essential terms and conditions of employment and thus jointly liable for violations of the National Labor Relations Act and have joint bargaining responsibilities for unionized employees. The NLRB’s expansion, effective Dec. 26, 2023, will impact business-to-business relationships in a manner that will limit opportunities for small businesses and entrepreneurs and threaten the franchising model.

‘NLRB’s actions today are devastating to the hotel industry and the millions of people we employ. This is

a partisan gambit to force unions on hotel franchisees and their employees as well as countless other small businesses and workers across the country,’ said AHLA President & CEO Chip Rogers. ‘NLRB’s goal is to coerce businesses to the bargaining table with workers they do not actually employ to artificially increase unionization. This dramatic shift will effectively dismantle the franchise business model – the single greatest avenue to successful entrepreneurship in American history and a system that has helped our industry build millions of well-paying jobs and careers. AHLA is reviewing opportunities to legally challenge this regulation to restore certainty for America’s lodging industry.’”

Similarly, the NRA wrote:

The National Labor Relations Board today released its final rule defining Joint Employer status. The National Restaurant Association and the Restaurant Law Center (RLC) strongly oppose the definition of Joint Employer outlined in this final rule. Sean Kennedy, executive vice president for Public Affairs at the National Restaurant Association issued the following statement in response:

‘Today’s final rule on Joint Employer is a heavy blow to small business restaurant operators. The rule upends employment policy, adopting a far-fetched definition of ‘employer’ based on ‘indirect or potential influence’ of an employee and then fails to define how ‘indirect control’ will count toward a joint employer relationship.

‘Nearly one-third of the restaurant industry operates under a franchisee-franchisor relationship and nearly all restaurants contract third parties for work like laundry or delivery. This means nearly every restaurant operator

is now on a crash course to figuring out if they have a joint liability for the host of people working in their establishment. And franchisees are suddenly having to come to terms with losing their independence in the eyes of the NLRB.

‘This new definition of Joint Employer will create chaos and legal questions across the restaurant industry. The National Restaurant Association and the Restaurant Law Center will work to help franchisors and franchisees understand their responsibilities while we fight to restore a workable joint employer standard based on the direct and immediate control of their employees.’”

Both associations consider the new joint employer standard to create a trap for companies to be considered a joint employer as it expands the scope of what is considered essential terms and conditions of employment.

National Restaurant Association and the Restaurant Law Center will work to help franchisors and franchisees understand their responsibilities while we fight to restore a workable joint employer standard based on the direct and immediate control of their employees.’

The new Joint Employer standard creates a trap door for companies to be considered a joint employer and expands the scope of what is considered “essential

terms and conditions of employment.” This dramatically increases the liability risks of the franchisor-franchisee relationship, as well as service providers and third-party companies.

As a result, a restaurant operator could be jointly liable for violations committed by an entity with which they have a business relationship. This new standard will also create unnecessary challenges for restaurant operators who are trying to understand what qualifies as joint employer status.

The NRLB’s final rule will:

• Share risk among two or more businesses even if there is only “reserved and indirect” control of employment between the two companies.

• Potentially penalize a restaurant operator if she/he works with a third-party contractor (linens cleaner, janitor, plumber, etc.) who receives a labor violation.

• Create massive labor uncertainty and risk management concerns.

• Reduce opportunities for franchisee ownership and independence.

The Association and the RLC submitted extensive comments opposing proposed changes included in the final rule and are considering all options available to restore a workable standard, including litigation."

Tips for Maintaining Refrigeration Equipment During the Summer

During summer months, commercial coolers (re-frigerators) and freezers in retail food establishments work hard to try to keep/ temperature control for safety (TCS) foods maintained at 41 F or less despite heat. An issue that causes a cooler or freezer to stop working properly could contribute to a foodborne illness and/or the loss of valuable product. Regular cleaning and maintenance of of refrigeration equipment will help minimize the impact of hot summer weather. The following steps promote efficient and effective operation of refrigeration equipment.

CONDENSOR AND EVAPORATOR COILS

Remove dust, dirt, grease, and other debris form the coils on a regular basis. Buildup on coils puts a strain on the system. making it difficult for the for the equipment to remove heat.

DOOR GASKETS

Check gaskets for tears and cracks and replace as needed. Gaskets are designed to make the door air-tight to maintain and recover cool temperatures efficiently. Gaps and cracks in gaskets allow warm air to enter the refrigeration equipment.

FILTERS

Monitor any filters to make sure they are clean and free of dust and debris.

SPACING (CLEARANCE)

Most refrigeration units require minimum spacing from walls and other equipment to allow airflow around the exterior of the unit. Inadequate spacing causes the refrigeration unit to work harder. Guidance on minimum required spacing may be found in the manufacturer's installation or owner's manual.

LOCATION

Some refrigeration units are designed to effectively maintain temperatures when the unit is in an area that does not rountinely get warmer than the temperature specified on its label. A refrigeration unit located near heat producing equipment may affect its ability to perform efficiently.

THERMOMETERS & OTHER TEMPERATURE MEASURING DEVICES

Make sure internal thermometers or other temperature measuring devices are working properly. Repair or replace as needed.

CLEANING/ORGANIZATION

The interior of refrigeration units should be kept clean and organized. An overstuffed, poorly organized unit will minimize the ability of cool air to properly. Repair or replace as needed.

POWER

Electrical outlets used for refrigeration units should be designed for the type of equipment installed. Refrigeration equipment should be plugged into sockets that provide the needed volts or wattage to make sure the equipment is operating as designed.

U.S. Restaurant Sales to Exceed $1.1 Trillion in 2024

The National Restaurant Association (NRA) has forecasted restaurant sales to exceed USD 1.1 trillion in 2024.

Nearly eight in 10 restaurant operators anticipate their sales will either increase (33 percent) or at least hold steady (45 percent) compared to last year, according to the NRA’s “2024 State of the Restaurant Industry Report.”

However, 97 percent of restaurant operators say they are still struggling with higher food and labor costs. Average food costs have increased more than 20 percent and average wages more than 30 percent compared to 2019, the NRA found.

Seventy-seven percent of operators also say their restaurant experienced supply delays or shortages of key food or beverage items in 2023 and reported needing to find new suppliers, removing items from their menus, adjusting portion sizes, or substituting lower-cost items due to elevated food prices.

In addition to higher food costs, 98 percent of operators say higher labor costs are an issue for their restaurant, and 38 percent said their restaurants were not profitable last

year. Only 27 percent of restaurant operators expect to be more profitable this year, despite a higher percentage than that believing they will increase their sales.

The U.S. Bureau of Labor Statistics found menu prices jumped 7.1 percent last year, as grocery prices rose 5 percent. NRA Research and Knowledge Group Senior Vice President Hudson Riehle said U.S. consumers are have grown more cautious in their spending, which could impact the frequency at which they go to restaurants.

Nearly half of consumers are taking a “wait-and-see stance” when it comes to spending, according to Riehle. He said consumers’ disposable income is expected to increase only 1.5 percent this year.

As a result, restaurant operators who “offer a solid value proposition for dining out can nudge customers out of their holding pattern,” NRA said.

The majority of consumers – particularly younger generations – appreciate variable pricing on menus, Riehle said. Consumers are also looking for smaller portion options; 75 percent would opt for smaller-sized portions for a lower price, and 70 percent said they often

look for a daily special or discount.

The 2024 State of the Restaurant Industry report is the authoritative source for industry sales projections and trends. It is based on analysis and forecasts by National Restaurant Association economists and surveys of restaurant operators and consumers conducted throughout the year.

The report examines key factors impacting the industry including the current state of the economy, operations, workforce, and food and menu trends to forecast sales and market trends for the year ahead.

Its key points were:

• Sales are up: The foodservice industry is forecast to reach $1 trillion in sales in 2024.

• Restaurants are hiring: The industry workforce is projected to grow by 200,000 jobs, for total industry employment of 15.7M by the end of 2024. 45% of operators need more employees to meet customer demand.

• Competition is strong: In 2024, 45% of operators expect competition to be more intense than last year.

• Costs are up: 98% of operators say higher labor costs are an issue for their restaurant. 97% cite higher food costs. 38% say their restaurants were not profitable last year.

• Consumers are value conscious: Nearly half of consumers are taking a wait-and see stance when it comes to spending. Operators who offer a solid value proposition for dining out can nudge customers out of their holding pattern.

• Consumers love restaurants: 9 in 10 adults say they enjoy going to restaurants. Restaurants allow them to enjoy a favorite meal that has flavor and taste sensations they can’t easily replicate at home.

Visit restaurant.org to download your copy today.

Three Predictions for the Hospitality Industry in 2024

With 2024 off to a start, are you curious about the future of hotels and travel? This articleunveils three highly likely predictions for the hospitality industry. From the surge of electronic reservations to the intriguing shift of guests becoming pivotal in hotel marketing and the robust growth in travel, we dive deep into the trends that will shape tomorrow's hospitality world.

The Rise of Electronic Reservations

Looking ahead to 2024, there are strong indicators that electronic reservations will continue to grow. This increase can be attributed to several factors:

Influence of Technology Advancements

Booking platforms tend to become easier to use and more user-friendly thanks to technological advancement, and people are getting used to hotel booking processes. AI and machine learning innovations enable more personalized and efficient booking experiences, drawing more users to digital platforms. OTAs and mega-chains will drive booking experience enhancements and new features.

Changing Guest Preferences

Modern travelers, particularly millennials and Gen Z, strongly prefer digital interactions. The ease of comparing prices, reading reviews, and making reservations with just a few clicks aligns perfectly with their lifestyle and expectations.

As electronic reservations continue to dominate the

booking landscape in the hospitality industry, hotels face decisions on adapting to and capitalizing on this trend.

The Guest Becomes the Hotel Marketing Department By 2024, the trend of guests as primary marketing agents for hotels is expected to intensify. The reasons behind this shift include:

• Increased Digital Connectivity: As more people become digitally connected and adept at using social media, the reach and impact of usergenerated content will grow. This increased connectivity will enable guests to share their experiences instantly and widely.

• Authenticity in Marketing: Modern consumers, especially younger generations, tend to trust peer reviews and authentic guest experiences more than traditional advertising. Hotels will recognize the value of this authenticity and shift their marketing strategies accordingly.

• Evolving Role of Social Media: Social media platforms will continue to evolve, offering new and innovative ways for guests to share their experiences. Features like live streaming, augmented reality, and enhanced story capabilities will give guests more tools to create engaging content.

User-generated content, particularly on social media, will become a cornerstone of hotel marketing. Photos,

videos, and reviews shared by guests will not only serve as testimonials but also as a window into the real-life experiences offered by the hotel. This content is seen as more genuine and relatable than traditional marketing materials.

Business as Usual: Travel and Hotel Industry Growth

The growth in travel and tourism will continue due to two significant drivers. The world is getting more prosperous, and more people can afford to travel. Younger generations do not want to buy things. They want to buy experiences, so there is a shift in consumption patterns favorable to travel and tourism.

On top of that, there might still be a pent-up demand post-pandemic, but that is slowly wearing off. The reason for travel will continue to change over time. The way of working changed during the pandemic, and not everyone will return to the same way of working as before the pandemic. People talk about an increase in bleisure and workations, but hotels are not known for their capabilities to collect accurate data, so this might be more hearsay than facts.

Given the positive outlook for the travel and hotel industry in 2024, here's how hotels are likely to react based on the mentioned predictions:

• Welcoming Increased Demand: Hotels will likely express enthusiasm and relief as the market expands. The increased occupancy rates and rising number

of guests will clearly show recovery and prosperity. This general market growth will be met with a positive attitude, as it promises higher revenues and profits.

• General Market Approach Rather Than Targeted Segmentation: With a lack of high-quality, segmented data, hotels might adopt a more generalized approach to marketing and guest services. Instead of targeting specific market segments, they will welcome all bookings, focusing on serving a broad audience. This approach, while simpler, may lead to missed opportunities in catering to niche markets or emerging traveler segments.

• Limited Adaptation to 'Bleisure' Travel: Despite the growing trend of blending business and leisure travel, hotels might not actively adapt to this market segment, viewing it as a minor part of their overall business. This could be due to either a lack of awareness of the potential of this segment or the perceived complexity in catering to these specific needs.

These predictions underscore the need for industry professionals to anticipate changes and actively prepare and adapt. Embracing data-driven decision-making, exploring new marketing strategies, and continually innovating service offerings are crucial steps in staying ahead in this dynamic industry. The future of hospitality will likely belong to those who can anticipate trends and react swiftly and strategically.

Employment Law Alert: Your Handbook is Probably Illegal After the NLRB’s

Groundbreaking Decision

Over the last year, the National Labor Relations Board (NLRB) has made a series of moves, which includes attacks on employee handbooks in its Stericycle, Inc. decision– and, unless your labor lawyers have updated it recently, your current handbook may be unlawful.

The ruling once again puts employers in the position of having to reconsider their workplace policies to align with the evolving priorities of the NLRB, regardless of whether they are unionized or not. This ruling has significant implications for all employers nationwide, including those in the restaurant and hospitality industry. While some employers already conduct annual reviews of their handbooks, it is now necessary to do so more frequently in light of this groundbreaking decision and the other NLRB decisions and General Counsel memoranda expected in the foreseeable future.

Here’s what you need to know about this decision and the adjustments you need to make to your policies to ensure they are compliant.

How Did We Get Here?

Under Section 8(a)(1) of the National Labor Relations Act (NLRA), it is an unfair labor practice for employers to

interfere with, restrain, or coerce employees in exercising their right to engage in concerted activities under Section 7. Section 7 of the NLRA guarantees employees the right to self-organize, form and join a labor union, and engage in other concerted activities for purposes of collective bargaining or other mutual aid or protection. These rights exist in both unionized and non-unionized workplaces.

For over 20 years, the NLRB has frequently analyzed whether specific rules established by employers are inherently unlawful under the NLRA. In 2004, the NLRB held that an employer violates Section 8 when it implements a policy, rule, or provision in a handbook that an employee could “reasonably construe” as preventing the employee from exercising their Section 7 rights.

In 2017, the NLRB shifted its stance with an employerfriendly decision. There, the Republican-majority Board established it would determine whether workplace rules were legal by weighing the potential effect on NLRA rights against the valid justification behind the rule. Unlike the approach taken in previous decisions, the 2017 ruling emphasized that the employer’s legitimate business interests in upholding a workplace rule should be considered in the NLRB’s evaluation process.

What Changed?

In August 2023, the NLRB concluded the criteria established by the Trump-era Board provided excessive latitude for employers to implement overly broad workplace rules. As a result, the NLRB overturned that decision and adopted a new two-part standard that closely resembles the employee-friendly standard from 2004.

First, the NLRB’s General Counsel must prove an employee could reasonably interpret a challenged workplace rule as having a coercive meaning, which leads to a chilling effect on a protected activity. Here, the NLRB considers the following factors from the perspective of the “economically dependent employee who contemplates engaging in Section 7 activity”:

• The specific wording of the rule;

• The specific industry;

• The workplace context in which the rule is maintained;

• The specific employer interests the rule may advance; and

• The statutory rights in which the rule may infringe.

This is a low burden, as the General Counsel must only show the challenged workplace rule has a “reasonable tendency” of violating an employee’s rights under Section 7. If the General Counsel can meet this burden, the challenged workplace rule is presumptively unlawful.

The second step of the analysis allows the employer to rebut the presumption that the challenged workplace rule is unlawful. The employer must prove the rule advances a legitimate and substantial business interest; and the employer cannot advance such interest with a more narrowly tailored rule. The workplace rule will be upheld if the employer can prove both of these elements.

What Are Some Stericycle Implications on the Restaurant and Hospitality Industry?

Handbook Policies Likely Unlawful: The following four policies are now likely to be deemed unlawful: (1) workplace civility rules; (2) loitering rules; (3) rules prohibiting unlawful strikes, work stoppages, and slowdowns; and (4) restrictions on video and/or cell phone recording.

Enforcing Unlawful Policies: The NLRB may invalidate a disciplinary decision made by an employer pursuant to an unlawful policy. This includes, but is not limited to, reinstatement and an award of backpay.

Enhanced Employee Protections: The positions taken by

the current Board grant employees expanded rights for engaging in protected concerted activities like discussing wages, working conditions, and union organizing.

Increased Unionization Efforts: The agenda of the current Board has been to make organizing easier for employees. The Board has encouraged employees to organize with the inference that doing so will lead to higher wages and better benefits.

Impact on Business Operations: This new standard may have implications for the day-to-day operations of restaurants and hotels. For instance, disciplinary actions and terminations may also be impacted, requiring employers to show that such measures are not retaliatory for engaging in protected activity under Section 7.

Looking Forward?

Since Stericycle was issued, NLRB administrative law judges have decided several cases analyzing handbook policies under this new standard. Some handbook policies found to be overbroad and unlawful include, but are not limited to, arbitration clauses, confidentiality policies, non-disparagement provisions, no-recording rules, policies prohibiting the making of false, vicious, or malicious statements, removal and/or return of company property and information policies, social media policies, solicitation and/or distribution policies, and workplace conduct policies. As seen during the Obama administration, we expect the NLRB to continue to find other policies unlawful that were otherwise lawful during the Trump-era Board.

We have seen from recent NLRB decisions and guidance that these changes can impact both unionized and nonunionized businesses. For example, last year, the NLRB issued a decision that scrutinized employee severance and non-compete agreements. Generally, the NLRB concluded it will invalidate these agreements if they include language that could be construed to broadly restrict a worker’s rights to speak about the agreement or otherwise talk negatively about their former employer, among other things.

Given the rapidly evolving regulatory landscape, employers are strongly advised to maintain close collaboration with their internal HR teams and legal advisors to stay abreast of the latest developments.

This article is courtesy of Fischer & Phillips. If you have any questions about how this development impacts your organization, please contact Andreas Mosby, Attorney at Law, at amosby@fischerphillips.com.

PGA Tour Is Headed To Myrtle Beach in May 2024

The PGA Tour is finally coming to one of the hotbeds of recreational golf: Myrtle Beach, South Carolina.

The Myrtle Beach Classic will debut in May at The Dunes Golf and Beach Club, a semi-private club on the Grand Strand with more than 800 members and a Robert Trent Jones Sr.-designed course. Sponsored by Visit Myrtle Beach, the tournament will have a $3.9 million purse.

The event will take place from May 9-12. The Myrtle Beach Classic will be part of the PGA Tour’s 2024 FedExCup regular season as a full-field additional event played the same week as a “Designated” tournament. As part of the PGA Tour’s classification system, there are 12 designated events (excluding the Players Championship and the four majors) with elevated prize money, no cuts and smaller fields that showcase most of the tour’s top players. While some of the designated events are fixed on the PGA Tour schedule, a handful haven’t been determined, giving other tournaments and title sponsors a chance to be assured of an elite field.

The PGA Tour has committed to holding the Myrtle Beach Classic for at least the next four years.

“(It’s) an exciting new playing opportunity for our members in one of our country’s most recognized and visited destinations,” said PGA Tour President Tyler Denis. “With its incredible passion for golf, the Myrtle Beach community is a natural fit to bring this tournament to life.”

The Myrtle Beach area is one of the more popular tourist destinations on the East Coast, particularly for golfers and families, boasting more than 90 golf courses in addition to 60 miles of beachfront and over 2,000 restaurants across 14 communities along the northeast coast of South Carolina. There are more than 6 million golfers within a 500-mile radius of Myrtle Beach, according to the National Golf Foundation, one of the highest-density destination golf markets in the country.

“The Palmetto State has the weather, the landscapes and the variety of courses that make us the perfect destination for every kind of golf vacation,” said Duane Parrish, Director, South Carolina Department of Parks, Recreation and Tourism. “Hosting PGA Tour events gives us an unparalleled opportunity to share that allure with golf viewers around the world. This four-year partnership is a huge win for Myrtle Beach golf and for the greater tourism industry, and it will undoubtedly inspire countless trips to ‘The Beach’ and to South Carolina as a whole.”

While the PGA Tour has never held an official tournament in Myrtle Beach, The Dunes Club was the site of the tour’s Q-School Finals in 1973. That year, Ben Crenshaw took medalist honors as a three-time defending NCAA champion. The next month (November 1973), the future World Golf Hall of Famer won in his first start as a PGA Tour member, becoming just the second player at the time to have done so.

AHLA: On the Road

2024 South Carolina Hotel Conference

You’re invited to the first ever 2024 South Carolina Hotel Conference brought to you by SCRLA, NRA, & AHLA in Columbia! Join fellow hoteliers from across South Carolina for an afternoon of networking and learning about the very latest policy issues impacting your hotel and restaurant. A special networking reception with complimentary drinks and appetizers will follow. Mark your calendar and invite all your hotel colleagues to this special afternoon event. Register today at AHLA.org/events or scan the QR code! SCRLA Partners with National Partners to Host

You’re invited to the first ever 2024 South Carolina Hotel Conference brought to you by SCRLA, NRA, & AHLA in Columbia! Join fellow hoteliers from across South Carolina for an afternoon of networking and learning about the very latest policy issues impacting your hotel and restaurant.