The Front Burner January 2011

The official news magazine of the Washington Restaurant Association | January 2011

The Front Burner The

LEGISLATIVE ISSUE

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Inside

www.WRAhome.com

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Features

Other stories

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On your mark, get set, tip pool

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News Briefs

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WRA government affairs and lobby team delivers results, year after year

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Power of the PAC

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Industry snapshot

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Calendar

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New Members

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2011 Northwest Foodservice Show presents the Social Media Lounge

Legislative landscape 2011: Challenging opportunity to recalibrate state spending WRA government affairs director Bruce Beckett describes the work that lies ahead in the 2011 session.

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Session 2011: Top priorities impacting Washington PASS IT ON restaurants Find out what the WRA’s government affairs team will be focusing on this session and why it could be one of the most challenging we’ve seen.

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PASS IT ON

The WRA’s local government program in 2010: Big PASS wins, a lot of work left to do IT ON The WRA government affairs team continues to strengthen relationships with local elected officials and regulatory agencies throughout the state to advocate for restaurants and minimize changes that would negatively impact our industry.

Faces of the grassroots network: How WRA members stay politically active As a business owner, you no doubt have some opinions about state leadership. Getting active in the grassroots network is your opportunity to make those opinions known.

PASS IT ON

Tip pooling is legal: Will you take the plunge?

Ready, set, tip pool: It’s official. You can now establish a tip pool in your restaurant. Find out what you need to know first.

Anthony Anton, Publisher Heather Donahoe, Assistant Editor Lex Nepomuceno, Editor Lisa Ellefson, Graphic Designer Camille St. Onge, Marketing and PR The Front Burner is published monthly for Association members. We welcome your comments and suggestions. email: news@WRAhome.com, phone: 800.225.7166.

Readership: 6,310.

The opinions expressed within the contributed articles are those of the writers and do not necessarily reflect the views and opinions of the Washington Restaurant Association.

This article is worth sharing with your managers, chefs, bartenders or other restaurant staff.

January 2011 | 3

Industry Outlook | WRA President & CEO

On your mark, get set, tip pool 2010 and 2011 will mark a new era. Last year the Washington and Oregon Restaurant Associations prevailed in a lawsuit (Cumbie vs Woody Woo, Inc.) that could rewrite Northwest restaurant culture for the better.

You can read all the details on page 20 of this Front Burner; but in a nutshell, the US 9th District Court of Appeals found unanimously that the federal restrictions on mandatory tip pooling only apply to restaurants taking advantage of the federal tip credit. Since Washington and Oregon restaurants cannot take advantage of a tip credit, northwest operators can take full advantage of tip pooling (so long as management does not receive any of the tips).

Is this the solution to our minimum wage woes?

Let’s step back in time a bit.

In the 1970s, the Federal Department of Labor interprets rules that the practice of employer required tip pooling (sharing tips) shall not be allowed among essentially non-directly tipped employees.

In 1989 Initiative 518 wins overwhelmingly, raising Washington’s minimum wage past the federal minimum for the first time. Soon after, Washington’s Department of Labor and Industries rules that it has no authority over tips, therefore cannot recognize them as partially meeting the minimum wage requirement, (result no “tip credit”).

Those combined scenarios have placed Washington full service restaurants between a rock and a hard place for more than 20 years. The margins in the industry became so tight that labor costs became very difficult to manage, and the wage gap between the front and the back of the house began to grow.

The situation greatly compounded, after Initiative 688 passed in 1998 to raise Washington’s minimum wage to the highest in the country and hooked it to inflation to ensure increases nearly every year. Cook wages went stagnant for nearly a decade, Washington restaurant margins dropped under the national average for most of the following decade and the average employees per restaurant dropped in Washington (14.5 compared to 17.2 nationally).

In 2008, 80 percent of more than 800 Washington restaurant operators surveyed indicated that dealing with the minimum wage/tipped wage was their top issue.

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Anthony Anton, president and CEO

Anecdotally, most operators say that their main concern isn’t dealing with the tight margins as much as dealing with the growing wage inequity between the two lead professional staff—servers and cooks. In 1998, the average cook earned $12 an hour and the average server earned $5.15 plus reported average hourly tips of $12 an hour. From 1998 to 2008, cooks wages went relatively unchanged, while servers’ average hour wage grew 57 percent. Yet in 2009, servers wages were the ones to get a 6 percent raise, while owners had to explain to the gals and guys behind the grill why there were no funds to give a raise this year as customer counts and spending dropped.

This new opportunity for the industry will be fascinating to watch. This team concept allows for each of the people who clean the plate, prepare the plate, deliver the plate and pick up the plate to be rewarded for a great customer experience.

Operators who have been struggling mightily to deal with wage inequity will now have the ability to require that the back of the house employees receive a percentage of tips. It’s a concept that should unite houses and place focus on the fact that when the restaurant does well, ALL the employees do well.

My expectation is that tip pooling norms will take three to six years to fully develop among Washington restaurateurs.

The aggressive operators will begin tip pooling policies tomorrow and actively experiment with different concepts.

The conservative operator will not want to upset their current server team and will wait and watch to see what norms develop and what their neighbors are doing. And many will say tip pooling is not right for my business. All of these approaches, and the many others that will pop up, are valid and need to be the right thing for you.

The only clear advice I can give is if you choose not to tip pool because you want to wait until the Legislature finally comes to its senses and adopt a different minimum wage for significantly tipped employees, be honest with yourself.

We have pursued the issue for more than 20 years, and it is clear that this state is enormously influenced and controlled by the State Labor Council, which has strongly issued a mandate to the legislature not to move an inch on this issue.

And until the day comes where small business has an equal voice to big labor, nothing is going to change. This ruling is your best window for dealing with the tip issues that have plagued the industry for the past two decades. 

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Primary Source of Information | Legislature

Bruce Beckett Government Affairs Director

Challenging 2011 session for lawmakers and business; golden opportunity to recalibrate state spending

By Bruce Beckett

In

some respects, 2011 seems like more of the same: a fiscal nightmare, pressures to restore spending programs, thus creating pressure to raise costs on business to fund those programs.

From a fiscal standpoint, the Legislature appears to be running out of options. The time seems ripe to confront the structural problems that make Washington’s growing budget unsustainable.

To begin with, the budget adopted in 2009 and adjusted in 2010 is now underfunded by $1.2 billion—and that amount must be balanced by June 30, 2011. The governor has limited authority to make the necessary changes to put the spending plan into balance, and needs the cooperation of the Legislature to address this short-term problem.

Secondly, the primary purpose of the 2011 session is to enact the 2011-2013 budget against what is now expected to be a $5 billion shortfall. There are a number of reasons why the state continues on the path of budget shortfalls: Tax revenues fail to meet the projections used to develop budgets. Unfortunately, the models used to project state revenues have not accurately predicted the depth of this recession and the total impact on consumer spending, which drives a large portion of state revenues.

With the struggling economy, caseloads (health care, prison costs, assistance to families, etc.) have increased, putting more burden and expense on state services.

Persistently high rates of unemployment have led to decreased spending. Consumer purchases, real estate 6 | www.WRAhome.com

transactions and business activity remain challenged, in large part because of the large number of people who remain unemployed or underemployed.

State spending increased dramatically prior to the recession. These increases have lead to structural problems between program needs and revenues.

Over the last few sessions, lawmakers have addressed the budget shortfalls by diverting funds from various state accounts, by using one-time federal stimulus money to fund ongoing programs, by making selected reductions and last year by raising taxes.

As lawmakers enter the 2011 session, however, their options are limited. In November, voters: Overwhelmingly reinstated the requirement that new or increased taxes require a two-thirds majority of both Houses Repealed new taxes on soda, bottled water and some food products Rejected a new state income tax

Opportunity The options for diverting money from state funds, for using one-time federal stimulus dollars, and raising taxes appear very limited in 2011. Hence, the time is ripe for a serious debate over the fundamental structural problems with Washington’s budget—for serious debate over the priorities of government and for developing a truly sustainable budget. The WRA remains committed to working with lawmakers on this challenge.

Read on to gain more insight into the WRA’s priorities and opportunities for the 2011 session. And, please, get involved with the WRA’s Government Affiars Committee, the WRA’s grassroots network, and join us for Hill Climb—our industry’s annual day at the Capitol—on January 24. Your involvement and engagement make all the difference. 

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2011 LEGISLATIVE PRIORITIES 8 | www.WRAhome.com

Session 2011:

Top priorities for protecting

By Bruce Beckett

As a WRA member,

it’s important for you to understand where the WRA government affairs team will be focusing its energies this session. After meeting with the Government Affairs Committee in late November, we settled on a slate of our top priorities based on the most pressing needs of the industry. We’ll be sure to keep you updated on the progress throughout session. In the meantime, here is a look at how we plan to advocate on your behalf during a session fraught with unprecedented challenges.

There are two important pressure points in the 2011 session that drive a number of WRA priorities:

1.

The Need to Balance a $4-6 billion budget deficit: Although the risk of major tax increases is diminished because of the reinstatement of the two-thirds majority requirement, there are risks and opportunities that will likely emerge during the session. These include: Alcohol pricing—In 2009, the Legislature used funds from the liquor revolving

account to fund general state government. To restore those funds, the Liquor Control Board temporarily raised the price of spirits to all customers, including licensees, for the current biennium. The WRA supports the price increases ending for licensees in July, but we fully expect pressure to maintain the price level to fund state and local government programs.

Licensing fees—The WRA expects to defend against proposals to increase many,

if not all, licensing fees, fees for local health departments or other non-tax charges on hospitality businesses to fund state and local government activities. (I-1053 only requires that the Legislature approve fee increases by a simple majority, so our industry and the business community are still very much exposed in 2011.)

Gaming—The shortfall in state revenue may create the opportunity for debate on if

and how modifying current gaming restrictions could assist state and local governments, and businesses. The GA team is actively exploring a number of different options with interested parties. Our goal will be to pursue a realistic proposal that will ultimately be successful at the legislative level and also withstand a ballot challenge.

PASS IT ON

Washington restaurants

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Increases in workers’ compensation and unemployment insurance taxes

Unemployment insurance (UI)—Although the UI trust fund remains

healthy, the ongoing level of benefit payments from the fund will trigger a statutorily mandated increase in UI taxes. This increase, in what is commonly referred to as the “social tax”, has a much greater impact on businesses with little, or no, history of layoffs in recent years than on businesses with a history of large numbers of layoffs. The WRA, and the business community, are working to identify options for averting a tax increase in 2011. To do so, legislation must pass in the first month of the session. The WRA expects the following two policy questions to influence the final outcome of the UI tax debate: a. The Legislature will be under immense pressure from organized labor to expand eligibility for benefits, and to increase the duration of benefits. b. In order to become eligible for $98 million of federal funds, the Employment Security Department (ESD) will be proposing legislation to either expand training benefits, or increase benefit eligibility for individuals seeking part time work.

Workers’ compensation/retrospective rating programs:

a. Workers’ compensation—The Department of Labor and Industries announced an average 12 percent increase in workers’ compensation premiums for 2011. For restaurants, the average increase is expected to hover around 6 percent. The WRA and the The WRA will continue to defend against business community will again be offering increases in taxes or fees in the following areas: ideas for reforming the workers’ compensation Pop syrup or other taxes on food, system to lower overall costs and improve claims beverages and ingredients management.

Street utility taxes b. Retrospective rating programs—In 2009, the Extension of the sales tax on purchases in Legislature debated reforms of retrospective restaurants in King County, except under rating programs that would have adversely conditions acceptable to WRA members impacted the WRA’s ability to offer a competitive Local options taxes, such as a proposal program for our members. Due to a number of from the counties to authorize them to administrative changes to the program enacted collect a B&O tax over the last year, the pressure for legislative The WRA will work with action appears to have diminished. Nonetheless, the general business the WRA will remain vigilant.  community to protect WRA members from increased costs for implementing the federal health care mandates.

Additional defensive priorities:

Continued on page 22 January 2011 | 9

Government Affairs | Local representation

WRA’s Local Government Program in 2010:

PASS IT ON

Big wins, a lot of

By Josh McDonald, WRA state and local government affairs

The WRA’s

local government focus in 2009 was all about kickstarting relationships with local elected officials, as well as key figures within regulatory agencies at the city and county level.

We put a tremendous amount of effort at the local level into building the foundation of who we are as an industry and what we stand for. This work was done in the hope that the restaurant industries in Seattle, Tacoma, Spokane, etc., would be viewed by city leadership as a serious stakeholder at any table where budgets, fee increases and regulatory changes are discussed. Reflecting on this past year, it is apparent that we are beginning to achieve our goals on the local level.

However, there is still much work to be done.

Successes

Worked with King County to amend their menu labeling ordinance, allowing a

transition process between adoption of the federal menu labeling requirement and its full implementation expected in the coming year. Operators in King County are now not required to make any changes until the FDA finalizes the entire regulation and implementation begins nationwide.

Submitted comments to the Seattle Mayor and City Council, and arranged for members to testify before the Council, asking for their support of a proposed aggressive solicitation ordinance. If adopted, this law would have put more police officers on the street and allowed them to intervene when a citizen is being harassed or strongly solicited by another individual, creating a safer and more pleasant experience for those visiting, shopping and dining out in downtown Seattle. Unfortunately, the mayor chose to veto this legislation, but we are hopeful City Council leaders will make another attempt in the coming year.

Worked with the Tacoma mayor and the City Council to support eliminating their cabaret tax, which requires Tacoma businesses that have music or other events to pay a tax for the privilege of doing so. With the adoption of their 2011 budget, Tacoma successfully removed the cabaret tax. (see page 11) King, Pierce and Snohomish counties’ health departments did not make any significant increases in their inspection or other related fees when adopting their budgets for 2011.

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Challenges

Lynwood’s recent decision to

increase their head tax from $15 to $85 per employee. The WRA believes the head tax is one of the most anti-business taxes in existence, and this increase is dramatic and hurtful for our Lynwood restaurant owners. It is a clear disincentive for these businesses to begin hiring again.

Seattle’s decision to structurally change their on-street parking meter rate program and raise utility rates to balance their budget. Although Seattle chose to not increase any general taxes (sales or B&O), they did choose to raise rates on almost every utility, as well as change their on-street parking rates to a market-based approach that has the potential to raise the parking costs up to $4 an hour in a specific area of the city. On the bright side, some neighborhoods will see a drop in the cost of on-street parking, as low as 75 cents an hour, depending on the market demand for that area. We are working closely with council members Tom Rasmussen and Tim Burgess, moving forward on making sure that we have a voice in what rates are ultimately set. 

work left to do How to Make a Difference:

Members and city leader work together to eliminate Tacoma’s cabaret tax

M

any years ago, Tacoma elected officials adopted a “cabaret” or admissions tax that was placed on businesses who offered live music or performances.

Originally, the tax was imposed solely to fund adequate fire and public safety needs for the nightlife created by these businesses.

However, over time city leaders chose to divert those funds to the general fund, thereby creating simply another general tax for our members to pay each year with little to no benefit for doing so. Fortunately, Tacoma restaurants have a champion in a newly elected city council member, Marty Campbell. A small business owner himself, he understands the difficulties small businesses go through every day and made it his mission since being elected to get taxes like cabaret removed so our businesses are able to succeed.

“The tax didn’t have its intended outcome,” Campbell said. “Business owners wanted to know why they were paying thousands of dollars and seeing no additional law enforcement presence. To me, that was a compelling question, and I wanted to pursue it.”

The Tacoma restaurant community is also fortunate to have a local and vocal restaurant owner in Jack McQuade of The Swiss.

“This represents a real savings for me each month,” McQuade said. “I’m just glad we can move forward and keep trying to stay open.”

Local government successes stories are not possible without local leaders like Marty and Jack, and the WRA is grateful for their determination to make their community a better place to open and operate a restaurant. 

January 2011 | 11

Around the state | News Briefs Businesses required to pay new minimum wage on Jan. 1

Tides Tavern receives Restaurant Neighbor Award

Until a pending lawsuit against Washington state’s minimum wage increase receives court decision, “Members of the business community are required to pay the new minimum wage rate of $8.67 per hour beginning January 1, 2011,” said WRA President/CEO Anthony Anton. “Because we are engaged in a lawsuit contesting the increase, we feel it is our fiduciary responsibility to remind our members they are required to pay the new minimum wage January 1. We want to ensure that businesses understand that even though they may see media coverage of the lawsuit, they are required to pay the new wage until the case is concluded.”

In December, Tides Tavern was selected for one of the WRA’s four Restaurant Neighbor Awards on account of its involvement with the Relay for Life cancer charity.

Over the past eight years, the Tides has raised roughly $50,000 holding its annual Relay for Life Spaghetti Feed.

The WRA is a member of the coalition that has filed suit against the state asking for clarification of ambiguous language within the legislation. Washington’s current legislation ties the state’s minimum wage to the Consumer Price Index which took effect Jan. 1, 1998. The coalition is comprised of the Washington State Farm Bureau, the Washington Retail Association, the Washington Restaurant Association and the Washington Food Industry Association. 

Other Washington restaurants awarded a 2010 Restaurant Neighbor Award include Pearl Bar & Dining in Bellevue, Pike Place Bar & Grill in Seattle and Farrelli’s Wood Fire Pizza in Tacoma, which was also a recipient of a national Restaurant Neighbor Award. 

Hill Climb January 24, 2011 This upcoming annual event is the restaurant industry’s opportunity to tell their stories to local representatives. These lawmakers live in members’ neighborhoods and dine in their restaurants.

Legislators can’t really understand how their actions and decisions impact the restaurant business unless they hear from actual restaurant owners! It’s a great day of networking and, believe it or not, fun! For registration and event details, go to www.WRAhome.com/hillclimb.  WRA Retro program among top performing of its kind statewide In December, the WRA announced that its average Retrospective Rating program (Retro) refund to participating members from 2007 to 2009 was 21.5 percent—nearly 5 percent above the state average.

Additionally, the WRA Retro program performed roughly 70 percent above its refund projections.

Ultimately, this news translates to lower upfront expense on L&I premiums for program participants.

The WRA introduced the Retrospective Rating program (Retro) to the Washington restaurant industry in 1986. Since then, the WRA’s Retro has grown to be the third largest Retro program in the state, helping numerous member participants to realize savings on their workers’ compensation premiums by establishing sound safety policies.

For more information, contact Jill Brady at 800.225.7166, ext. 134, jill@WRAhome.com. 

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WRA remembers former executive director, Jack Gordon The death of WRA’s first ever executive director on November 30, Jack Gordon, prompted reflections on his legacy from several of those who worked closely with him at the WRA. Gene Vosberg, Gordon’s successor, recalled his sincerity and sense of humor. Vosberg worked with Gordon as a restaurateur and WRA board member in the 1970s and 80s, and ultimately as the chairman of the WRA Board of Directors in 1989 and 1990. Longtime WRA member Diane Symms attributes her desire to become active with the Association to Gordon.

A luminary in Seattle and a pioneer in the city’s evolution from small town to top-tier international hub, Gordon lent his vision and talent to the WRA for 25 years, from 1965 to 1990.

“The WRA is what it is today because of the hard work of my predecessors, Jack Gordon and Gene Vosberg,” said WRA President/CEO Anthony Anton.

Jack Gordon was 89 years old and is survived by his wife Roberta and four children. 

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Political Advocacy | Expert lobby team

WRA government affairs and lobby team

By Heather Donahoe

The WRA has one of the most seasoned lobbying teams at the Capitol. Period.

While many WRA members may understand that political advocacy is a major part of this organization’s mission (which is, to help you succeed, by the way), not every member may be aware of the skill and experience level of the WRA government affairs staff and lobby team. Take a minute and find out what they’ve done for you.

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Denny Eliason Lobbyist

Denny Eliason is regarded by much of Washington’s legislative community as one the most accomplished lobbyists on the hill in Olympia. Among other significant wins, Denny’s hard work yielded the B&O tax credit on pop syrup taxes that saves restaurants across the state an average of $3,000 annually.

Denny is the founder of Alliances Northwest, a business-oriented government relations firm emphasizing representation before the Washington State Legislature and local governments in Washington state. Denny has experience working on a number of issues, including banking, energy, employment, environment, finance, growth management, health care, insurance, pharmaceuticals, retail, securities, taxes and transportation. Some of Alliances Northwest’s other clients include Puget Sound Energy, Nintendo and Amazon.com.

Kim Hoff Lobbyist

Kim Hoff is a partner with Denny Eliason at Alliances Northwest.

Kim’s primary focus is workplace and labor issues. She is also a strong force on the front lines for the Washington Restaurant Association on some of the industry’s toughest issues. She routinely delivers results on issues that impact restaurateurs’ bottom lines. Kim has landed the state’s restaurateurs their biggest proactive wins in the past five years, which include tackling issues such as workers’ comp, gift certificates and pushing the obesity lawsuit prevention bill past the governor’s desk. Last session, Kim successfully defended WRA members against a series of bills that would have expanded eligibility for unemployment insurance benefits to (1) those who voluntarily quit their jobs and (2) those who are

delivers results, year after year

seeking only part time work. If enacted, these bills would have increased the overall costs of benefits for UI, thereby leading to higher UI taxes for employers.

Bruce Beckett

Government Affairs Director Bruce Beckett joined the WRA in January, 2009 as director of government affairs. Bruce’s experience in public affairs spans more than 27 years, including 17 years leading Weyerhaeuser Company’s Western Region and Washington State public affairs teams. Prior to joining the WRA, Bruce served as the director of public affairs for the Cascade Land Conservancy’s $20 million Cascade Agenda campaign. He has served on the boards of numerous business organizations, including the Association of Washington Business, as a Deputy to the Washington Roundtable, TVW, the Washington Forest Protection Association, Northwest River Partners and the Washington Research Council. Bruce is accountable for overall leadership of the WRA government affairs team, provides strategic direction to the lobby team, and ensures WRA members are fully informed and engaged in the development of WRA positions and tactics.

Josh McDonald

Local Government Affairs Josh McDonald joined the WRA government affairs team in 2007.

Before joining the WRA, Josh spent the several years previous splitting his time between contract lobbying work during legislative sessions and working on congressional, state and local campaigns. Josh spent three years working alongside our contract lobbyists Denny Eliason and Kim Clauson, assisting them with their daily lobbying duties and building relationships that help make him a strong asset to the

WRA. In addition to his work at the state level on such issues as nutrition/obesity, food safety, and the environment, Josh focuses much of his attention on building and maintaining a strong industry presence at the city and county level, as well as cultivating an ongoing dialogue with local health departments.

Josh received his B.A. in political science from the University of Puget Sound. Check out page 10 to learn how Josh’s wins at the local level over the past year have helped protect the state’s restaurants.

Julia Clark

Government Affairs Manager Julia Clark joined the Washington Restaurant Association’s Government Affairs Department as government affairs assistant 2007 and was recently promoted to government affairs manager.

During her three years in the government affairs department, Julia significantly grew and strengthened the WRA’s grassroots network which was directly responsible for our most recent defensive successes— protecting the pop syrup tax credit and our Retrospective Rating program. Additionally, Julia was responsible for establishing the WRA’s Ambassador training program – giving restaurateurs tools to communicate with their elected representatives. In the coming session, Julia will be working closely with state regulatory agencies, and focusing on liquorrelated issues. Prior to coming to the WRA, Julia studied state and local politics at Western Washington University where she received her B.A. in political science and social studies.

With more than 75 years of combined experience working with the state Legislature, the WRA’s legislative team is virtually unmatched in Olympia. These professionals are working daily to protect your interests with lawmakers; their wins contribute directly to your survival and success. Simply put: you’re in good hands. 

January 2011 | 15

Member Involvement | Grassroots network

Faces of the grassroots network: How WRA members stay politically active

By Heather Donahoe

We couldn’t be prouder of our grassroots network. It’s sophisticated. It’s effective.

And more than 1,200 of our members are involved in it. The network consists of WRA members from all corners of the industry, from suppliers to restaurateurs.

Our grassroots volunteers work hand-in-hand with our government affairs team to make sure our industry’s message is communicated loud and clear to legislators.

As a volunteer, grassroots networkers may respond to Action Alerts, deliver PAC checks to lawmakers or serve as grassroots ambassadors.

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While the WRA’s lobby team works closely with state legislators and agencies throughout the year, it is the voice of business owners that resonates most with state leaders. It is crucial that members of the restaurant industry establish and maintain a productive working dialogue with their legislators. Nothing is more effective when it comes to communicating the concerns and unique needs of the restaurant industry.

Several of the WRA’s grassroots volunteers have made a significant impact on state policy that impacts restaurants.

Below, a few of them explain why they place such a high priority on being involved with the grassroots network.

Kevin Gattke

Pine Lake Ale House, Sammamish

is a grassroots “To me, a small business portion od go operation in itself. A fees on d an es mes from tax of the state’s revenue co industry a s thi es t very fact giv small businesses, and tha ember rem to ng portant thi voice. I think the most im st mu y the t tha legislators is when dealing with your . ess sin bu r factor of you understand the human to re’s a person there, trying the t tha Reminding them a h suc on te era op to start. We survive, is a good place s tor isla leg t tha l it’s essentia small profit margin, and be stretched and strained ’t can We understand that. . ssible to hire or expand to the point that it’s impo ance ch my is rk two ssroots ne Being involved in the gra it’s ry, ust ind s thi things. In to tell my legislator those ctive of small businesses lle co a — really a joint effort A ration. Honestly, our WR and not one large corpo y ne mo st be the nations are membership and PAC do we spend all year.”

Phil Costello

Zips Drive-In, Spokane

“Financially, I look at this as my opportunity to be involved in the process of what’s going on in Olympia and helping to stave off harmful decisions. If you don’t participate, you can’t complain, and that’s why I’ve made it a priority. I appreciate the WRA’s approach locally and statewide, and I feel it is above-board. The fact that the government affairs team listens to members is important to me, and I like how they work really hard to keep us involved in the process. The GA team is knowledgeable, and during a big fiscal year like this one, that really matters. They know how to set priorities, and I’ve always been impressed with their ability to make solid decisions on how their time and PAC dollars will be best spent in a given session. As a business owner, I couldn’t be more pleased.”

Michael Troyer

Rainier Club, Seattle “I became an active participant in the grassroots network because of the liquor fee increase issue. From a priv ate club perspective, the Legislature was looking at imposing a B&O tax on priv ate clubs, and we saw a lot of representation from the WRA on that issue. I attended Hill Climb last year , and I was really impressed with how the information was prepared for us beforehand. Everything was real ly pared-down and concise, so we felt confident talking with our legislators.

And trust me, that’s something the legislators really notice. There wasn’t a single person we met with who didn’t mention that the WRA pro duces the best informational pieces they receive all year. Because of that successful interaction, I absolute ly believe it will pay off on some issue down the road. I’ve established that relationship as a concerned citizen who understands the difficulty of a legislator’s job. The opportunity to meet with them and express gratitud e and concern is invaluable. The political obligation of citizens and business owners doesn’t end at the polls on the second Tuesday in November, and I think we forget that sometimes.”

Marc Feigen

Bagel Brothers, Olympia “If you aren’t involved in the political process, as a business owner, you won’t have the chance to influence what happens. The WR A has wonder ful lobbyists, but they can’t do the job on their own.

Their message comes up empty with out the support of restaurant operators. My perception is that legislators want to see actual business owners, so they can truly understand what’s happening.

For anyone who may feel a bit of trepidation about meeting with their legislator, you’ve got to understand that the WRA doesn’t send you in there without getting you ready first . They talk to us ahead of time and explain, in detail, how to communicate our issues. Beyond that point, legislators are able to see that we’ re engaged in the battles that affect us. I’ll be hon est—I’m busy, and knowing that the WRA is mak ing sure that I’m aware of what’s going on is real ly worth a lot.

I’m glad every time I get an Action Alert, because it’s a reminder that the WRA is kee ping on eye on things for me.”

January 2011 | 17

Government Affairs | Political Action Committee

Inside one of the top business PACs in Washington

By Lex Nepomuceno, Editor As Washington state’s largest private sector employer, restaurants already represent a formidable political constituency for elected officials. When Political Action Committees (PACs) are added to the mix, it augments the Washington Restaurant Association’s already powerful voice with lawmakers. Helping lawmakers understand the challenges of running a restaurant is particularly vital during recessionary times.

of our members,” Beckett said. “Every PAC decision is driven 100 percent by our members, and we always strive to be as transparent as possible.”

He added that helping to create a more pro-business, prorestaurant philosophy in the state Senate makeup was a big part of the overall strategy, as the WRA won three of the four Senate seats it focused its support on.

Additionally, the WRA PAC supports current members who The WRA Government Affairs Committee examines current have worked productively with the WRA during their tenure and potential laws, regulations and taxes impacting the in office. In the State Senate, the WRA contributed to 21 races restaurant industry. They then use the resources of the WRA and was successful in 18. Similarly, the WRA contributed to 70 PAC to consider how to affect change by supporting proindividual races in the House, with restaurant, pro-business candidates for the state legislature from both What does the PAC do for you! 60 races proving successful. Such a success rate helps the WRA fulfill political parties. Through this Total Savings $23,938 another one of its objectives—“It allocation of financial resources, the Saved $1,430* helps us affect change by joining WRA is able to help support those Protecting RETRO program with others,” Beckett said. candidates running for office who Saved $3,000* support the industry.

Passing a phased-in B&O tax credit Beckett stressed that WRA member participation is an integral part of According to Government Affairs Saved $3,008* the PAC’s growth and success. “We Stopping the proposed $1 per Liter Spirit Tax Director Bruce Beckett, having a have done numerous events at our PAC “is a key component of the Saved $900* members’ places,” he said. “(The government affairs strategy because Protecting business with 50 or more employees PAC) gives us a chance to showcase from an employer-paid mandatory leave requirement this is our chance in these critical our members and allows candidates times to educate, support, bring Saved $12,000 to hear directly from business about change and showcase our Stopping the proposed Sprinkler Requirement owners.” members.”

Saved $1,200* Consequently, the WRA focuses on four objectives for the PAC: 1. Educate existing and potential lawmakers on issues that directly impact the restaurant industry.

Stopping the proposed Street Utility Tax

* annual savings

2. Support candidates and lawmakers who take the time to understand, work with and support restaurants.

3. Bring about and affect positive change for WRA members.

4. Showcase WRA members and the industry.

For the 2008-2010 election cycles, the WRA PAC raised $377,000 and contributed $327,000 to political candidates or issues. Thus, contributions to political candidates or issues increased from $275,000 during the 2006-2008 election cycles—an increase of nearly 30 percent or $52,000 in additional contributions.

The WRA put the increased funding to good use by strategically targeting areas where the greatest impact could be made.

“We are very proud of our PAC process and the engagement 18 | www.WRAhome.com

The WRA PAC is funded entirely by contributions from its members – the association does not use any retro refund money to support the work of the WRA PAC. “We are fortunate to have had a healthy PAC over the years; the WRA has been able to support very good candidates and causes,” said Beckett. “Our goal is to have a completely self-sustainable and organically funded PAC.”

Saved $2,400* Stopping the proposed Energy Efficient Mandates

There is strength in numbers. The WRA’s PAC provides a practical and powerful means for the restaurant industry to pool resources to maximize the impact financial contributions have on the electoral and legislative process. In other words, because the WRA PAC provides the chance to work with candidates for public office, and provide strategic support, the WRA’s GA team is much more effective in their efforts to protect and enhance the industry. “(The PAC) gives us a chance to educate candidates on restaurant and hospitality issues during the campaign season,” said Beckett. “It (also) gives us a chance to support candidates that we work with.”  To learn more about WRA’s PAC, or get involved, go to www.wrahome.com/pac

Lower Your Workers’ Comp Rates t Save money on your Workers’ Compensation costs t Have 24/7 access to FREE customizable online safety training The WRA provides you with the necessary tools and support to close claims and bring people back to work quickly.

Start taking advantage

WRA’s Retro benefits today! of

Visit www.WRAhome.com/Retro, or call Jill Brady at 800.225.7166, ext.134.

Operational Changes | Tip pooling

PASS IT ON

Tip pooling is legal.

Will you take the plunge?

By National Restaurant Association staff

Thanks to a court decision issued earlier this spring, management-run tip pools are now legal in northwest restaurants. Here we are providing you, our members, with some answers and guidelines about facilitating a tip pool in your resturant. Of course, the details below should not be considered legal advice. We strongly urge you to review options with your attorney before taking any action.

First, a little background.

Cumbie v. Woody Woo, Inc. A waitress, Misty Cumbie, worked at the Vita Café in Portland, OR. The restaurant is owned by Woody Woo, Inc. Ms. Cumbie was paid a cash wage required by the Oregon state minimum wage law, which exceeded the federal minimum wage requirement under the Fair Labor Standards Act of 1938 (“FLSA”). Oregon law prohibits employers from taking any tip credit, and so Ms. Cumbie and all other servers were paid the minimum wage in cash. Vita Café required servers to contribute all of their tips to a “tip pool.” The total tip pool was then distributed to servers and other nonmanagerial employees in the restaurant in various amounts.

The largest portion of the pool—55 percent to 70 percent of the contributed tips—was distributed to “back-of-the-house” employees (e.g., dishwashers and cooks). Servers received only about 30 to 45 percent of the tips they had contributed to the pool; these amounts were distributed to servers in proportion to the hours they worked.

Ms. Cumbie filed a class action suit on behalf of all Vita Café servers in federal district court. She alleged that the tip pool violated federal law (FLSA) primarily on the basis that it included employees who do not “customarily and regularly” receive tips (the kitchen staff), and that the small amount of her tips she was allowed to retain exceeded federal guidelines set by the U.S. Department of Labor.

The United States Court of Appeals for the 9th Circuit ruled that federal law does not restrict a restaurant employer from setting up a tip pool that includes back-of-the-house employees nor does it prohibit the employer from requiring directly tipped employees to share a substantial portion of their tips (even in excess of limits prescribed by the U.S. 20 | www.WRAhome.com

Department of Labor), as long as no tip credit is taken and employees are paid at least the applicable minimum wage Law on Tip Pools The law in regard to management-run tip pools is complicated. It also depends in part on the applicability of federal and/or state laws. The 9th Circuit’s ruling focused on tip pool restrictions under federal law. The court acknowledged the fact that the Vita Café pool included employees who did not customarily and regularly receive tips and that servers did not retain a majority of their tips – but said federal-law restrictions do not apply in cases where the employer takes no tip credit and pays servers at least the federal minimum wage. The court rejected the U.S. Department of Labor’s (“DOL”) argument that the 1974 legislative history of the FLSA supported the DOL’s interpretation of federal law that tip pool restrictions applied even if no tip credit is taken and the employer pays servers the full minimum wage. The court also refused to apply DOL’s long-standing rule that employers may not require servers to contribute a greater percentage of tips than what DOL construes as “customary and reasonable” (i.e., no greater than 15 percent of the tips the server receives).

The court stated that such an approach is contrary to court decisions and the statutory language, citing the 6th U.S. Court of Appeals decision in Ohio in Kilgore v. Outback Steakhouse.

Conclusion This is an important decision for employers, particularly restaurants in those 9th Circuit states where no tip pooling restrictions exist under state law. Restaurants in the nine states under the jurisdiction of the 9th U.S. Circuit Court of Appeals (Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon and Washington) may require servers to share their tips with other employees, including “back-of-the-house” employees, if employees are paid in cash at least the federal minimum wage, no tip credit is taken, and their state law does not restrict this approach. The U.S. Department of Labor is bound by this decision in the 9th Circuit.

The following Q&As may provide further understanding of the scope and applicability of this important ruling. Any questions you have should be directed to your legal counsel or Peter Kilgore, General Counsel, National Restaurant Association 202.331.5910, pkilgore@restaurant.org.

Your tip pooling questions answered Q: A: Q: A:

May employers in the nine states covered by the 9th Circuit Court’s ruling now require tip pools?

Yes. Was tip pooling clearly legal before the ruling? And if so, why is this ruling so important?

Yes, under federal law before the ruling some tip pools were legal. However, before the recent ruling, employers could only set up a tip pool under certain limitations prescribed by the U.S. Department of Labor. After the ruling, the U.S. Department of Labor restrictions (including who can be part of the pool and how much servers can be required to contribute) are not applicable if the employer takes no tip credit, pays the employees a cash wage at least equal to the federal minimum wage (or any higher applicable state minimum wage) and there is no applicable state law that restricts tip pools.

Q: A:

If I require a tip pool, who may be included?

As long as your particular state law does not require a different approach, you may include servers, bussers, cooks, dishwashers, other “back-of-the-house” employees or other workers as you deem appropriate.

Q: A:

Does the ruling also allow restaurants to include management personnel in the pool?

This is not clear. The 9th Circuit’s decision did not discuss whether owners, managers or supervisory employees may participate in an employer-required tip pool. Vita Café’s tip pool did not include these types of workers, and so this question remains an open issue. If you are considering doing this, we strongly urge you to first discuss the legal implications with your attorney.

Q:

If my establishment is in a state covered by the 9th Circuit’s ruling, but my state has a specific law restricting tip pools, may I follow the 9th Circuit’s ruling?

A:

No. The 9th Circuit’s ruling only applies to federal law. Since your state law restricts tip pools, you must comply with those state law restrictions. State law requirements on tip pools that are more beneficial to employees than federal law require employers in that state to follow state law.

Q:

I have restaurants in several states, including Washington, Oregon, California, Texas and Louisiana. Can I follow the 9th Circuit Court ruling in each of my establishments in those states?

A:

No, only in states covered by the court’s ruling, and then, only if there is no state law restrictions on tip pools. Your restaurants in Oregon and Washington, in which there are no state law restrictions on tip pools, allow you to set up a tip pool along the lines outlined by the court since they are in the 9th Circuit. Your restaurant in California, which is also in the 9th Circuit but has state law restrictions on tip pools, requires you to comply with the state law restrictions. Your restaurants outside of the 9th Circuit (Texas and Louisiana), are not covered by the court’s ruling. Thus, the U.S. DOL approach under federal law restricting tip pools in accordance with DOL guidelines will still apply. DOL is not bound by this ruling outside of states in the 9th Circuit.

Q:

My wait staff in the states I mentioned has already been sharing tips on their own with cooks. Is that illegal in any of those states?

A:

No, unless your state law restricts this approach. If the wait staff decides on their own to share tips with cooks without any employer involvement, the U.S. DOL has stated that its tip pool restrictions do not apply. DOL’s approach is that under federal law wait staff can decide as they wish with whom they share their tips, as long as their employer is not involved.

Q: A:

Does this recent ruling mean that my waitstaff must now share their tips?

No. They may be required to share tips only if the employer decides to set up a tip pool under the approach outlined in the court’s ruling.  January 2011 | 21

Primary Source of Information | Legislature

Continued from page 9

WRA Proactive priorities:

The WRA will be advocating favorable outcomes on the following: Taxes on employee meals—Sales and B&O taxes are being levied on the value of meals that employers are providing employees free of charge.

The WRA intends to propose legislation to exempt meals provided free of charge from sales and B&O tax.

Given the significant budget deficit facing lawmakers, a solution in this regard may be a longer term project.

Authorizing on-line food safety training—

Currently, food safety training and the issuance of food worker cards is totally under control of individual counties. With current revenue challenges facing many counties, the ability of the counties to sufficiently meet the task of providing training, testing and certification for every food worker in their respective county has been diminished. The WRA is working with the Department of Health on a proposal to authorize noncounty entities to provide food worker card training, testing and certification as long as that program is certified (possibly by the Washington State Board of Health).

Privatizing the sale and distribution of liquor—If passed, I-1100 would have privatized the

sale and distribution of spirits, and de-regulated the sale and distribution of beer and wine. The WRA will work with interested stakeholders to develop an alternative proposal to address concerns expressed by the voters.

The WRA will continue to be a constructive participant in packaging, energy and other sustainability issues impacting the hospitality sector.

Minimum wage and tip credit—Economic challenges facing WRA members continue to be exacerbated by the current policies guiding the growth in the minimum wage and the lack of tip credit in Washington state. Additionally, the lack of a workable teen wage, entry level program in the state disadvantages both entry level workers and businesses that could benefit from providing those opportunities.

22 | www.WRAhome.com

During 2010, the 9th Circuit Court of Appeals rendered a decision that allows a restaurant to require pooling of tips under certain circumstances (see page 20 for more information). That decision impacts only those states that do not have a tip credit; i.e.

Washington state.

This is a positive outcome for our owners and operators, giving them the legal freedom to put a mandatory tip pooling program in place if desired. The GA team will be watching this issue closely and stringently defending any attempt by opposition to jeopardize our members’ right to have a mandatory tip pooling program.

Additionally, In October, the Department of Labor and Industries announced a 12-cent increase in the minimum wage, despite the formal opinion of the attorney general that state law did not mandate the increase. The WRA has joined with a number of business organizations in legally challenging the decision.

Nonetheless, while it is doubtful that the Legislature or governor would take favorable action of minimum wage or teen wage, the WRA lobby team’s objectives for 2011 include: Continue educating lawmakers and others on the adverse impacts of current minimum wage policies.

Seek a Democratic support for legislation to freeze the minimum wage under certain economic conditions.

Pursue options for tip credit and teen wage with the Department of Labor and Industries. 

Join the revolution … and discover how you can improve your restaurant.

The National Restaurant Association, Council of State Restaurant Associations, 40 state restaurant associations — including the Washington Restaurant Association — and Heartland Payment Systems® have joined forces to upgrade the crucial business services of every restaurateur. Full Course Business SolutionsSM — an exclusively endorsed suite of payments products and services — does just that, helping you reduce expenses, enhance operations and increase profitability. Our offering will grow as the industry — and your needs — evolve.

Full Course Business Solutions Card Processing • Gift Marketing • Payroll Services • Check Management To learn more about how this movement can help revolutionize your restaurant, visit GoFullCourse.com and call 866.941.1HPS (1477) x150. © Copyright 2010 National Restaurant Association. All rights reserved. © 2010 Heartland Payment Systems, Inc.

January 2011 | 23

The

National Restaurant Association each year surveys professional chefs, all members of the American Culinary Federation, on which foods, beverages, cuisines and culinary themes will be hot trends on restaurant menus. The What’s Hot in 2011 survey was conducted in the fall of 2010 among more than 1,500 chefs.

Top 20 trends 1

Locally sourced meats and seafood

2

Locally grown produce

3

Sustainability

4

Nutritionally balanced children’s dishes

5

Hyper-local (e.g. restaurant gardens, do your own butchering)

6

Children’s nutrition

7

Sustainable seafood

8

Gluten-free/food allergy conscious

9

Simplicity/back to basics

10

Farm/estate-branded ingredients

11

Micro-distilled/artisan liquor

12

Locally-produced wine and beer

13

Half-portions/smaller portion for a smaller price

14

Organic produce

15

Nutrition/health

16

Culinary cocktails (e.g. savory, fresh ingredients)

17

Newly fabricated cuts of meat (e.g. Denver steak, pork flat iron, Petite Tender)

18

Fruit/vegetable children’s side items

19

Ethnic-inspired breakfast items (e.g. Asian-flavored syrups, chorizo scrambled eggs, coconut milk pancakes)

20

Artisan cheeses

24 | www.WRAhome.com

Top trends by category Appetizers

Ethnic/street food-inspired appetizers (e.g. tempura, taquitos, kabobs, hummus)

Desserts

Artisan/house-made ice cream

Breakfast/Brunch

Ethnic-inspired breakfast items (e.g. Asian-flavored syrups, chorizo scrambled eggs, coconut milk pancakes)

Non-alcoholic beverages

Specialty iced tea (e.g. Thai-style, Southern/sweet, flavored)

Alcohol and cocktails

Micro-distilled/artisan liquor

What will be the hottest restaurant operational trend in 2011?

1

Mobile food trucks and pop-up restaurants

30%

2

Restaurants with gardens (e.g. rooftop, backyard, communal)

18%

3

Social media-based marketing

17%

4

Cooking classes/demonstrations

12%

5

Electronic/iPad/smartphone application menus and wine lists

12%

6

Customer DIY (e.g. build-it-yourself menus, customization)

8%

7

Other

3%

S

tretch Your Healthcare BeneďŹ ts

without Stretching Your Wallet Strata Limited Benefit Health Plan offers employees flexible healthcare coverage without costing the employer.

Strata Plan is an affordable limited benefit health insurance* program that WRA members can offer to full or part time employees. Strata offers an extensive network of physicians and is available to employees with pre-existing conditions and there are no exclusions for smokers.

Enrollees can be covered for the cost of a month of daily lattĂŠs.

For more information or to sign up contact your local area coordinator at www.WRAhome.com/healthcare * Limited Benefit Health Insurance is not basic health insurance or major medical coverage and is not designed as a substitute for basic health insurance of major medical coverage.

Benefits may vary from state to state. The policies contain reductions, limitations, exclusions and termination provisions. Full details of the coverage are contained in each policy. If there are any conflicts between this document and each Policy, the Policy (series N20000 through N20010) shall govern. Not all coverages are available in every state. Limited Benefit Health Insurance is underwritten by National Fire Insurance Company of Pittsburgh, Pa. with its principal place of business in New York, NY.

Visit www.WRAhome.com/calendar for a full list of events.

INDUSTRY CALENDAR Training | Meetings | Events January & February

Hill Climb &

Taste Our Best Jan. 24, 2011

Register at www.WRAhome.com/HillClimb

Events January 5 January 24 February 2

Seattle Restaurant Alliance Afternoon Social 2011 Hill Climb & Taste Our Best Seattle Restaurant Alliance Morning Mixer

Meetings January 11 January 11 January 13 January 25 January 26 February 1 February 8 February 9 February 9 February 9

Member Services Committee Meeting Finance Committee Meeting Executive Committee Meeting WRA Board of Director’s Meeting EF Board of Director’s Meeting Executive Committee Meeting Spokane Chapter Meeting Retro Investment Workgroup Retro Trustee Meeting MSC Sub-Committee Meeting

26 | www.WRAhome.com

Training

January 4 January 17 January 20 January 27 February 1 February 7 February 21 February 21

ServSafe®, Seattle ServSafe Advanced Food Safety Class, Post Falls, ID ServSafe Advanced Food Safety Class, Tacoma ServSafe Advanced Food Safety Class, Kent ServSafe®, Seattle ServSafe®, Kent ServSafe®, Yakima ServSafe®, Everett

Visit www.WRAhome.com/calendar for a full list of events.

Got a tax question?

Call WRA the

Consulting

Network 800.225.7166

GET A from our

succession

planning

FREE 30-Minute

expert Consultation

Gerry Adams...

is a CPA and WRA Consulting Network consultant. He has 30 years of experience with the hospitality and food service industry in all aspects of business planning, taxation and assurance work. Contact the WRA Consulting Network at 800.225.7166 for a free 30-minute evaluation with Gerry.

Visit www.WRAhome.com to learn more about the 17 FREE consulting services for members.

Welcome New Members 5 Corner Market, Seattle

Garlic Jim’s, Tacoma

AFK Tavern, Everett

Garlic Jim’s, Vancouver

Alfy’s Pizza, Everett

Garlic Jim’s, West Seattle

Avalon, Seattle

Hockinson Cookhouse, Vancouver

Bajio Mwexican Grill, Tukwila

Hockinson Cookhouse, Vancouver

Bevinco, Seattle

IHOP, Federal Way

BrickHouse Pub, Redmond

Jack in the Box, Fife

Chinook Family Dining, Chinook

Keyport Mercantile, Keyport

Crazy G’s Burgers, Phillys & Dogs, Spokane

Lava Lounge/Encore, Oak Harbor

Dairy Queen, Gig Harbor

Marco’s Restaurant, Lynnwood

Dairy Queen, Oak Harbor Dairy Queen, Port Orchard Dairy Queen, Raymond Dairy Queen, Shelton Draft Choice Sports Bar & Grill, Auburn Earl & Shirley’s Riverview Rest. & Lounge, Cattilamet Feeding Station, Tekoa Figaro’s Pizza, Centralia Five Fish Bistro, Seattle Five Guys Burgers & Fries, Lynnwood Frankies Sports Bar & Grill, Olympia Garlic Jim’s, Bellevue Garlic Jim’s, Bothell/Woodinville Garlic Jim’s, Eastgate Garlic Jim’s, Edmonds Garlic Jim’s, Federal Way Garlic Jim’s, Juanita Village Garlic Jim’s, Kirkland Garlic Jim’s, Klahanie Garlic Jim’s, Lacey Garlic Jim’s, Lake Meridian Garlic Jim’s, Lakewood Garlic Jim’s, Maple Valley Garlic Jim’s, Marysville

Litz’s Bar & Grill, Spokane Masala India Cuisine, Bothell Masala India Cuisine, Seattle Mazatlan Restaurant, Tacoma Mezzo Pazzo Wine Bar & Market, Spokane Nipps Drive Through, Longview Norm’s Place, Everett Old Town Burgers & Breakfast, Vancouver Oysterville Sea Farms, Oysterville Papa Murphy’s, Aurburn Papa Murphy’s, Sumner Pau Hana, Seattle Pizza Time, Olympia Rib City Grill, Vancouver Ristorante Simone, Sammamish Shelter Lounge, Seattle Subway, Moses Lake Subway, Quincy Sweetie Barbecue, Washougal The Great Nabob, Seattle The Leary Travler, Seattle Valamos Pizzeria, Seattle Varsity Grill, Tacoma Welcome Inn, Hoquiam

Garlic Jim’s, Mill Creek

West Wing of the White House, Spokane

Garlic Jim’s, Mukilteo

Westport Winery, Aberdeen

Garlic Jim’s, North Lynnwood

Wheeler Street Kitchen, Seattle

Garlic Jim’s, Redmond

Wink Cupcakes, Llc, Seattle

Garlic Jim’s, Seattle

Zatz A Better Bagel, Seattle

28 | www.WRAhome.com

Welcome Allied Members Air Control Heating & Electric, Inc. Harry Tefft 7203 E. Nora Ave. Spokane Valley, WA 99212-1201 509.924.0018 harry@aircontrolspokane.com www.aircontrolspokane.com We are a 24 hour service and repair of all HVAC, refrigeration and electrical equipment. We also service most kitchen equipment, including ice machines, steam tables and convection ovens. We also install or replace all items that we service.

Bevinco Seattle Tim Arnot 506 N. 143rd St. Seattle, WA 98133-6834 206.569.8121 t.arnot@bevinco.com www.bevinco.com Bevinco has been improving sales profits and lowering costs for bars and eateries since 1987. We are a global company with franchise operations in over 15 countries and across the United States.

Our job is to uncover hidden losses for bar owners due to Bevinco system set-up fee waived lost sales. Our weekly reports help bar owners hold their staff more accountable by providing them with business intelligence on their operation’s efficiency. With this information, our clients are able to reduce pour costs by 2 to 4 points and increase profits by up to 15% on weekly sales.

Costco www.costco.com Seattle | 206.622.3136 Union Gap | 509.454.5242 Covington | 253.796.1004 Clarkston | 509.758.1800 Aurora Village | 206.546.0480 East Vancouver | 360.828.2262 Issaquah | 425.313.0965 Wenatchee | 509.886.0593 Silverdale | 360.692.9213 Bellingham | 360.671.6947 Kennewick | 509.737.8861 Southcenter | 206.575.9191 Federal Way | 253.874.3652 Gig Harbor | 253.853.8600 Sequim | 360.406.2025 Tumwater | 360.357.6580 Marysville | 360.652.4530 Spokane | 509.466.9668 Puyallup | 253.445.7543

Marketplace BUSINESS FOR SALE

Drive-in restaurant in Columbia Basin, very successful & well established. Picnic area outside and large seating capacity inside. Excellent location. Stable client base with year round revenue. RV parking and excellent highway access. Great opportunity for business investment. 1.509.662.9602.

SELLING OR BUYING?

Thinking about selling or buying an existing restaurant, or adding a new location? Call Allan Boden, Sunbelt restaurant specialist at 206.229.4717, or email a.boden@sunbeltnetwork.com. Sunbelt has been serving clients since 1982 with offices nationwide. www.sunbeltseattle.com

SERVSAFE®

The WRA Education Foundation holds ServSafe food safety courses throughout Washington. Visit www.wrahome.com/training-education/training-schedule/ for schedule information. Fee is $125 for members and includes the text, class and exam.

Welcome Allied Members (continued) Costco (continued) Burlington | 360.757.5703 Spokane | 509.842.0003 Lacey | 360.412.3500 Woodinville | 425.806.7700 Vancouver | 360.828.2262 Kirkland | 425.827.0913 Tacoma | 253.475.5595 D & J Consulting Richard Denson 106 Partrick Ct. Sunnyside, WA 98944-1060 509.837.8026 Helping restaurants increase profits and menu designing.

Direct POS Annemarie Fransk 2823 N. Monroe St. Spokane, WA 99208-3358 509.328.5312 annemarief@directpos.com www.directpos.com Micros Hospitality Point of Sale systems, Samsung cash registers, Counterpoint retail POS systems and credit card processing services.

Fikes Northwest Rick Peterson 13401 E. Trent Ave. Spokane Valley, WA 99216-1267 509.924.0534

Fikes Northwest (continued) rick@fikesnorthwest.com www.fikesnorthwest.com Odor control, sanitizing of restrooms, cleaning of restrooms, cooking hoods, odor elimination, restroom and kitchen.

Paper and plastic supplies, cleaning and sanitizing supplies.

Fischer Meats Chris Chiechi 85 Front St. N. Issaquah, WA 98027-3237 425.392.3131 fishermeats@gmail.com www.fischermeatsnw.com Retail & wholesale meat.

Hoodz of Puget Sound Nick Coates 4320 S. 131st Pl., Ste. 100 Seattle, WA 98168-3200 206.632.0800 nick.coates@hoodz.us.com www.hoodz.us.com HOODZ is the nation’s largest kitchen exhaust cleaning company. At HOODZ, we specialize in cleaning the entire exhaust system, from roo-top to cooktop. HOODZ also installs fan/duct access panels, fan hinge kits and grease containment systems. After the clean, HOODZ will provide before and after photos to validate all work performed.

Small Restaurant Specialist Jean Klein 5360 Lansdowne Ln. Mercer Island, WA 98040-4649 206.795.4443 jklein@smallrestaurantspecialist.com www.smallrestaurantspecialist.com 25 year CPA and hands-on restaurant owner I don’t do taxes, but I do confidentially help you improve your bottom line through more efficient operations, improved cost controls and clean financial reporting. Retiring or selling? Plan these exit 30 minutes free consulting. maximize your selling value.

Thorough buyer and seller due diligence assistance. QuickBooks Pro Advisor and POS savvy.

Sunshine Disposal & Recycling Marc Rickey 11320 W. McFarlane Rd. Airway Heights, WA 99001-9763 509.252.9060 mrickey@sunshinedisposal.com www.sunshinedisposal.com Comprehensive waste disposal & recycling services including food waste recycling, cardboard, grease trap and pumping services.

January 2011 | 29

Trade Shows | Northwest Foodservice Show

Social Media Lounge

2011 Northwest Foodservice Show presents Social Media Lounge

By Paul Paz, WaitersWorld and Jeffrey J. Kingman, Chalkboarder “Social media, at its nature, creates connections with real, living people, but it is, perhaps, at its greatest when it brings complete strangers together face to face via these tools.” (Oregon Wine Press 9/10)

Fanpage to start building the connections. You can engage by posting comments, questions, links, photos, videos or images. Start a separate conversation on a topic related to the business or show under “Discussions”.

For the first time ever, there will be a Social Media Lounge (virtual and booth) available to the show. This will connect restaurateurs, lodging operators, food-hospitality-travel professionals, educators, and exhibitors over the months leading up to the show day (April 3 and 4) and beyond. It is a new opportunity for people and companies to meet, engage and build relationships with each other before, during and after the show.

TWITTER: nwfoodshow Hashtag: #NWFOOD2011 Twitter is a great way to share 140-character messages, including ongoing conversations. These could be alerts such as, “Just had a great sample of Charlie’s Cheese at booth #999!”; or “Staff from Joe’s Place meet at Chef Demo Stage @3PM”; or “Need service pro to work private reception after NWFS 4/4”; “Share a taxi to PDX airport @4pm?”

The social media campaign will focus on Facebook, Twitter, Youtube and working from a WordPress blog format. You can connect online with each by clicking on the social media icon for each at the show website, www.nwfoodserviceshow.com. All electronic messages broadcast by the show management will include the hyperlinked logo for each as well.

Why should you connect with the Social Media Lounge?

IT’S FREE, and that fits everyone’s budget, especially in today’s economy. Ignoring consumers’ growing preference to engage businesses with social media holds the door open for them to leave your brand and shift their loyalty (aka dollars) to competitors.

For those new to social media, you can test the waters for your business and use this opportunity to learn new skills and tactics from your peers.

For those already engaged, this is a fantastic venue to strengthen existing bonds and build new relationships.

Social media is changing the way communities do business.

Our hospitality network supports and delivers the “social experiences” our customers seek. It is only natural that our industry take the lead and respond to the social media cue from consumers.

How to use the Social Media Lounge.

FACEBOOK: Northwest Foodservice Show 2011 Fanpage Facebook is the most dominant social media platform used globally. It is a common format and language that many are familiar with and comfortable using. Add yourself to our 30 | www.WRAhome.com

There will frequent posts on how to use the Social Media Lounge on the Northwest Foodservice Show Facebook Fanpage, under “Notes.” We invite all hospitality operators, exhibitors and associations to share your social media tips and tricks with the community.

ATTENDEES Use the Social Media Lounge to track down that one hard-to-find product or service you are seeking for your operation. Ask for recommendations from your peers. Ask questions of the presenters.

HOSPITALITY OPERATORS Connect with the Social Media Lounge to gain exposure for your company with both vendors and visitors to the area. Connect and make appointments to meet at the show. Bring your staff to the many demonstrations and education seminars. Reach out to the presenters and ask specific questions of interest to you, your staff and your hospitality operation. By adding you and your company to the Social Media Lounge, you elevate you brand presence and awareness.

EXHIBITORS Share your story about a relative need or problem your organization solved to benefit the industry. Invite the community to engage you in the Social Media Lounge.

Post content relative to your products/service. Did you know that posting photos, images, and videos increases the probability that it will be viewed by 80 percent and makes it easier to “Share” your post with the broader Social Media Lounge network?  Visit www.nwfoodserviceshow.com for more information.

Raise the Bar in 2011!

Multiple Exciting Show Features Including: s s s s s s

Exhibit hall featuring 450+ vendor booths.

Alcoholic Beverage Tasting Pavilion & Beverage Stage.

Chef Stage with emphasis on beer, wine & spirits as ingredients.

Gadget Garden showcase of new culinary technology & tools.

New Product Showcase for new & soon-to-be-released products.

Virtual Trade Show pre-show exposure through our website.

Reserve booth space now for optimal placement and to take advantage of all pre-show marketing opportunities! Sponsorships available!

Contact the show office: 800.645.7350, or 503.582.9482, or email: info@nwfoodserviceshow.com Attendee registration opens January 1, 2011.

April 3-4, 2011 Oregon Convention Center Portland, OR nwfoodserviceshow.com Produced By:

“A delicate, well-balanced Prosecco, showing a good blend of baked apple, sour lemon and grapefruit, with a lightly creamy mineral texture on the palate.

Medium froth, with some body and a pleasant lemon and mineral finish.�

Wine Spectator

90 Points

Proudly sponsored by: TM

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