Washington Hospitality Magazine March 2017

March 2017 │ 1

Washington Hospitality Association 510 Plum Street SE Olympia, WA 98501-1587

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SEATAC LESSONS FROM IN HOSPITALITY

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March 2017

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2017

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Inside

wahospitality.org

Features

9

ProStart® Highlights

11

Hill Climb and Taste Our Best 2017

16

A World of Opportunity for Women in Hospitality

20

The Power of Storytelling

24

Don’t Forget the Baby Boomers

26

Washington Hotels Lighten the Burden

In Every Issue

11

20

WA S H I N GTO N

March 2017

WOMEN IN HOSPITALITY

LESSONS FROM

SEATAC FOR TELLING YOUR STORY

Washington Hospitality Association 510 Plum Street SE Olympia, WA 98501-1587

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March 2017 │ 1

6

From Your President and CEO

7

News Briefs

12

State GA Update

14

Local GA Update

22

The HR Department

28

Calendar/New Members

30

Ask the Expert

On the cover

March is women’s history month, and in this issue we celebrate three Washington women who have seized opportunities to build successful careers in hospitality. You’ll also get updates on state and local issues as we continue to move forward in the legislative session.

March 2017 │ 5

President and CEO EDITORIAL STAFF Publisher, Anthony Anton Executive Editor, Lex Nepomuceno Editor-in-Chief, Marianne Scholl Art Director, Lisa Ellefson Managing Editor, Paul Schlienz Contributing Editor, Andy Cook Contributing Editor, David Faro Contributing Editor, Jillian Henze Contributing Editor, Wendy Hughes Contributing Editor, Stephanie McManus Research Editor, Sheryl Jackson

A Great Cook Can Come from Anywhere

EXECUTIVE COMMITTEE Co-chair, Phil Costello Stop n’ Go Family Drive In Co-chair, Frank Welton Hilton Worldwide

Sometimes kids’ movies can teach us simple lessons that stick with us for a lifetime.

Ours is an industry of opportunity and a melting pot, and great employees, managers and owners really do come from all over the world. We are a place where the American Dream is alive and well, and with hospitality bred in our bones we thrive on welcoming people from near and far. What we could do better is to share our stories of success.

EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Haase Director of Business Development, Ken Wells Director of Communications & Technology, Lex Nepomuceno Director of Local Government Affairs, John Lane Director of State Government Affairs, Julia Gorton Director of Internal Operations, Kylie Kincaid Director of Membership, Steven Sweeney Education Foundation, Naja Hogander

If you have kids or grandkids, you’ve likely seen the Disney movie Ratatouille about the rat that wants to be a great chef.

If you have, do you remember the epiphany the finicky food critic Anton Ego has at the end of the movie? He finally realizes how Chef Auguste Gusteau’s saying “Anyone can cook” is wrong. “It’s not that anyone can be a great artist,” he tells us, “but that a great artist can come from anywhere.”

As we talk to a new generation of employees who only see their job today as their lot in life, it’s on us as mentors to demonstrate a future for them. As managers and leaders, we can help them take the next step and inspire them to have the ambition to gain greater skills and move up the ranks. Sometimes this means they will move forward within our own establishments. Sometimes it means they step up to greater responsibility somewhere else. And sometimes they are ready themselves to take the great leap to become an owner or operator.

Whatever step they take, our investment in their success comes back to benefit us because when our industry and our employees thrive, so do our communities and so does Washington state.

And as we talk to a generation of voters who don’t understand the great opportunities in our industry, it’s up to us to demonstrate today’s success stories.

510 Plum St. SE Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 wahospitality.org

Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification.

Reproduction of articles appearing in Washington Hospitality Magazine are authorized for personal use only, with credit given to Washington Hospitality Magazine and/or the Washington Hospitality Association.

Articles written by outside authors do not necessarily reflect the views or positions of the Washington Hospitality Association, its Boards of Directors, staff or members.

Products and services advertised in Washington Hospitality Magazine are not necessarily endorsed by the Washington Hospitality Association, and do not necessarily reflect the opinions of the Washington Hospitality Association, its Boards of Directors, staff or members.

ADVERTISING INQUIRIES MAY BE DIRECTED TO: Michele Holmes Allied Relations Manager 206.423.3902 MicheleH@wahospitality.org Washington Hospitality Magazine is published monthly for members. We welcome your comments and suggestions. email: news@wahospitality.org, phone: 800.225.7166.

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Yes, we know that most of us started in an hourly position to get to where we are today. But does your team know it?

Yes, we know that the majority of restaurant owners and hotel managers are now women. But do your customers know it?

Please join us in Seattle on April 4 at our Washington Hospitality Summit presented by Food Services of America.

The Summit will be an informationpacked day for hospitality-industry professionals that includes workshops and a tradeshow to help you meet all of your business needs, followed by a Hospitality Happy Hour for socializing with your peers. Register for this exciting new industry event at WWW.HOSPITALITYSUMMIT.ORG.

And yes, we know that with the appetite for wonderful food from around the world—and the drive for diverse menu items and concepts—the majority of restaurant owners will be of an ethnic minority in the next ten years. But does your community know it?

As we talk about ourselves to the ever developing world of Millennials and Gen Z, a world of instant gratification and ballot-measure-driven policy, it is more important than ever to carry these messages of opportunity and great career ladders out into the places where we live. After all, a great cook can come from anywhere.

Anthony Anton

LODGING

FULL SERVICE RESTAURANTS

QUICK SERVICE RESTAURANTS

Primary Source of Information | News Briefs Anthony’s Budd Gould Receives 2017 Executive Excellence Award Long-time member Budd Gould, founder and president of Anthony’s Restaurants, was honored in February with an Executive Excellence Award from Seattle Business magazine. The award recognizes inspirational C-Suite leaders who model exemplary leadership in the community and in the day-to-day operation of complex businesses. Other 2017 honorees include Holland America Group CEO Stein Kruse, BECU president and CEO Benson Porter and Redfin CEO Glenn Kelman.

Gould founded his first restaurant in 1969, but it was his third restaurant, Anthony’s Home Port in Kirkland, that has grown into a seafood empire with 29 restaurant locations in Washington, Oregon and Idaho. In 1984 this expanded to include a wholesale seafood company to supply his restaurants straight from the fishing industry.

Anthony’s Restaurants has been civic-minded since the beginning, and it has carried that commitment into the communities where its restaurants are located.

In 2003 Gould received the Restaurant Neighbor Award from the National Restaurant Association, and in 2016 the Washington Restaurant Association recognized him as the Full Service Operator of the Year.

“What the restaurant industry gives you,” he told Seattle Business, “is a platform to be involved in your local community.”

Phone App Uses Crowdsourcing to Identify Hotel Rooms in Trafficking Ads Since its launch in 2016, the smart phone app TraffickCam, has created a database of more than 150,000 hotel rooms to help investigators track down sex traffickers.

Traffickers enslave and exploit children and adults for personal gain. They regularly post photographs of their victims posed in hotel rooms for online advertisements. These photographs can be used to find and prosecute traffickers, but only if investigators are able to determine where the photos were taken.

TraffickCam uses an image analysis tools to transform photos into a number of data points based on features such as patterns on the carpet, paintings on the wall and landmarks seen from a window. The various data points in the photos then help match the photo to a specific hotel location.

To date, more than 100,000 people have uploaded photos using the app, which was developed by the anti-trafficking nonprofit Exchange Initiative. Kimberly Ritter, director for development for Exchange Initiative, recently told CNN that “This is an easy way for citizens to take a stand against sex trafficking by simply taking photos.”

NRA And AHLA Urge Balance Approach on Immigration Issues Both the National Restaurant Association and the American Hotel & Lodging Association have issued statements in response to the controversy surrounding the Trump Administration’s travel ban.

“The National Restaurant Association has always advocated for stronger border security and enforcement measures that keep Americans safe,” said Cicely Simpson, the NRA’s executive vice president, in a statement. “However, we should balance our safety and security with the importance of the economic contributions of travel and tourism to our country.”

The NRA statement was issued after the federal 9th Circuit Court of Appeals refused to reinstate the January 27 executive order that barred travelers from seven predominantly Muslim nations from entering the United States.

Simpson added that travel and tourism from abroad “plays a vital role” in the economy and the restaurant industry. “We strongly urge (the Administration) to consider the negative impacts any executive order may have on American small businesses.”

Katherine Lugar, president and CEO of AH&LA, similarly called for striking a balance between security and the economy. In a statement released prior to the ban, she said “It is our hope that the administration’s review will be completed quickly, so that we can work together to develop policies that both promote hospitality and travel to the United States for those who wish to come – both as employees and as guests – while also ensuring the safety of our citizens here at home.”

To learn more about TraffickCam, visit www.traffickcam.com or ExchangeInitiative.com.

March 2017 │ 7

THE WASHINGTON RESTAURANT ASSOCIATION EDUCATION FOUNDATION WOULD LIKE TO THANK ALL OUR GENEROUS SPONSORS.

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CONGRATULATIONS,

2017 Sysco ProStart® Invitational Winners

WINNERS!

CULINARY COMPETITION

2017 PROSTART®

By Paul Schlienz The hospitality industry’s future was on display at the 2017 Sysco ProStart Invitational, and that future is a bright one.

1st OAK HARBOR HIGH SCHOOL

The Invitational, held on February 18, in Lakewood, is the premier youth culinary and restaurant management competition in Washington state.

Groups of four students, accompanied by a mentor and educator, prepared three-course meals in just 60 minutes using only two butane burners and no running water or electricity.

In the management portion of the contest, the teens presented comprehensive business plans to open restaurants and manage daily operations.

“The local students who are competing at ProStart are amazing,” said Naja Hogander, the Washington Hospitality Association Education Foundation’s manager. “They impress celebrated chefs with their work.

ProStart is vital to creating rising stars of our industry.”

The first-place teams will go on to compete for scholarships and honors at the National ProStart Invitational, April 28-30, in Charleston, South Carolina.

2nd BONNEY LAKE HIGH SCHOOL

3rd HERITAGE HIGH SCHOOL, VANCOUVER

MANAGEMENT COMPETITION

1st LEWIS & CLARK HIGH SCHOOL, SPOKANE

Student of the Year Katarina Ducharme (Ferris High School, Spokane)

2nd BONNEY LAKE HIGH SCHOOL

Teacher of the Year

Jamie Pringle Jones (Mount Spokane High School, Spokane)

Mentor of the Year Scott Fraser (Frasers Gourmet Hideaway, Oak Harbor)

3rd FERRIS HIGH SCHOOL, SPOKANE March 2017 │ 9

HOTELS - RESTAURANTS - ENTERTAINMENT

APRIL 4, 2017 SEATTLE

WASHINGTON HOSPITALITY

SUMMIT www.hospitalitysummit.org

The schedule includes: Keynote speaker, panel discussions, and a “one-stop-shop” trade show.

“HOSPITALITY HAPPY HOUR” to follow event!

Renaissance Hotel - 515 Madison St. Seattle

Hill Climb and Taste Our Best 2017 On February 6, close to 100 Washington state hoteliers and restaurateurs braved the snow that fell that morning and participated in our 2017 Hill Climb and Taste Our Best reception. This was the first Hill Climb under the banner of the Washington Hospitality Association, and it was an especially important day of bringing our industry’s issues to legislators. The hospitality sector is having to adjust to an unprecedented number of significant regulatory, wage and labor changes in a surprisingly short period of time. The Association and its members arrived at the Capitol ready to offer innovative solutions to the challenges facing the state, such as adding a teen wage to the state minimum wage law, looping short-term rentals into state and local lodging regulations and taxes, allowing the use of credit cards for alcohol purchases and reinstating a statewide tourism marketing program.

In the evening, members socialized with legislators and their staff at the Taste Our Best reception, held at the Hands On Children’s Museum on Olympia’s East Bay. A collection of more than a dozen restaurants, breweries and wineries treated guests to a sumptuous array of food and beverages, from ribs to ahi tuna stacks to crostini bites.

Legislators, hoteliers, restaurateurs and association staff sipped, savored and played their way through the museum’s many exhibits.

A huge thank you to everyone who participated!

March 2017 │ 11

State GA Update The 2017 Legislative Session is Underway Washington’s Legislature convened on January 9 for a long, 105-day regular session. In odd years like 2017, the primary focus of the Legislature is to pass a two-year biennial budget, and state law requires that this budget balances.

Complicating things this year is the Washington State Supreme Court order to fully fund K-12 education. This could mean adding as much as $3.5 billion in education spending over the next biennium.

The partisan makeup of the Legislature will determine how it will go about crafting and passing a balanced budget.

The 2017 regular session began with a divided legislature, with each party controlling one house. The Majority Coalition Caucus (MCC) holds a single-seat majority in the Senate, led by Majority Leader Mark Schoesler, R-Ritzville, and the House of Representatives is under Democratic Party control, led by Speaker Frank Chopp, D-Seattle, with 50 Democrats and 48 Republicans.

Within the first weeks of the session, two budgets were introduced with very different ideas and funding mechanisms. Gov. Jay Inslee’s proposed budget boosts spending and includes a B&O tax increase, fees on carbon emissions and a new capital gains tax. Senate Republicans

Join us on Mondays for the Government Affairs Committee call.

Our GAC holds a conference call every Monday during session to discuss legislative issues. Members are encouraged to participate in these weekly calls.

Email KatieD@wahospitality.org for call information.

Stay informed of the progress of bills important to our industry with our opt-in Legislative Newsletter.

Each week during session the Association sends out a digest of the key legislative developments that impact our industry.

Subscribe to this informative newsletter by emailing StephanieM@wahospitality.org.

Be an Advocate!

Text “serve” to 52886 for urgent updates right to your phone.

12 │ wahospitality.org

also put forward a budget plan which would set a uniform statewide rate for local property taxes that go toward schools. These taxes would be collected by the state. Both budgets will need to be adjusted to find a middle ground to be passed by the divided Legislature.

By the third week of the session, the resignation of a state senator left the Senate in a temporary tie. In a lengthy floor debate, Senate Democrats attempted to take control and bypass a committee hearing to pull a bill to the floor for a vote. The attempt was unsuccessful and has made the political atmosphere in the Legislature even more tense.

All of this suggests that negotiations will take longer on all proposed bills, and the Legislature is very likely to go into special session(s) after the regular session reaches 105 days.

As we go to press in mid-February, the Washington Hospitality Association government affairs team was tracking 162 bills that could impact the hospitality industry.

For the most up-to-date information on how these bills are progressing, subscribe to our weekly legislative newsletter by emailing StephanieM@wahospitality.org.

Tax on Pop Syrup On February 3, 12 Democratic representatives introduced House Bill 1975, which would add a tax on sugar-sweetened beverages (including imitation sugar and diet drinks). This is not the first time lawmakers have sought to tax soda or other non-alcoholic drinks to fill budget gaps. In 2010, Gov. Christine Gregoire attempted to remove the B&O tax credit for pop syrup. Currently, pop syrup is taxed at a rate of $1 dollar per gallon.

Paid Family Leave Three bills have been introduced this year that propose a statewide paid family leave policy. All of them have been heard in policy committees, and additional bills on this topic are expected. The Washington Hospitality Association has testified on these bills.

Senate Bill 5032 and its companion, House Bill 1116, would offer employees six months paid time off to: • • • •

Bond with a child after either birth, adoption or foster care placement Care for a family member with a serious health condition Recover from a serious health condition Deal with exigencies arising out of the military service of a family member

In each of these bills, leave would be financed through a payroll tax on both employers and employees.

Senate Bill 5149 would provide 12 weeks paid time off.

Compensation within this bill would be phased-in to up to 67 percent of the employee's salary and financed through an employee payroll tax. The Washington Hospitality Association supports a paid family leave program that is sustainable for business and supports employees.

Teen Wage Senate Bill 5541, which would institute a teen wage, was introduced on February 2. The bill would offer a different wage for employees under 18 years of age. The Washington Hospitality Association supports this bill and testified at its first hearing. Teen jobs are important because every year individuals work in their teens, their income in their twenties exceeds by 14 to 16 percent that of individuals who don’t work as teens. These first jobs are vital not just for the employee, but to the entire economy.

Unfortunately, with the passage of I-1433 hiring teens can be an expensive investment. Senate Bill 5541 would remove

road blocks for hospitality businesses wanting to give teens their first job and a head start on a future career.

Tourism Marketing Tourism plays a critical role in the success of our industry and the health of our state’s economy, and our Association is a strong supporter of House Bill 1123 and Senate Bill 5251, which would create an industry-led tourism marketing authority and provide performance-based industry funding mechanisms without additional taxes.

The tourism authority, made up of tourism industry officials and legislators, it is expected to deposit $5 million into its account every two-year state budget cycle by diverting 0.1 percent of retail taxes from lodging, rental cars and restaurants. The measure would also allow the private sector to match some of the funding, which would ultimately bring in a total of up to $15 million per biennium to be spent on tourism across the entire state.

Committee hearings on this bi-partisan legislation have been held in both houses, and our Government Affairs team continues to advocate on this issue.

Workforce Development The Washington Hospitality Association also testified for Senate Bill 5731 which would create a skilled worker outreach, recruitment, and key training program to increase the state's skilled workforce by awarding grants to eligible applicants. This legislation will help the hospitality industry and our greatest asset, our employees. Several of our Education Foundation’s programs, including ProStart; ServSafe management, allergen and alcohol training; and our hiring summits would fall under the purview of this bill. These educational resources are vital to helping people move up the hospitality career ladder and to protecting public health. Grants from this bill would help us to continue to offer training programs to teens that make them prepared and capable to enter the workforce.

March 2017 │ 13

Local GA Update SEATTLE PAID FAMILY LEAVE EXPLORATION CONTINUES In January, Councilmember Lorena Gonzalez said that her office had begun drafting legislation for a paid family leave policy within the City of Seattle. She is continuing to hold information-sharing sessions with local businesses to discuss possible legislation on paid family leave in Seattle.

Legislation could include paid time off for Seattle-based employees who experience the illness of a family member, birth, adoption or fostering of a new child. The provisions might also allow for leave for an employee’s own serious health condition.

SECURE SCHEDULING ORDINANCE KICKS IN JULY 1 In September 2016, the Seattle City Council unanimously passed the Secure Scheduling Ordinance. This legislation applies to full-service restaurants if they have 40 locations and 500 employees worldwide. Other foodservice establishments and retail businesses are subject to the ordinance if they have 500 employees worldwide.

The ordinance requires businesses to provide two weeks advanced notice of schedules, penalty pay for changes made after posting schedules and extra pay when there is less than 10 hours between shifts. It also requires that any available hours are offered to existing employees before hiring more employees.

A stakeholder group that includes the Seattle Restaurant Alliance has been working with the city in the rulemaking process. City staff expect to have a draft of the rules by February 16.

The ordinance will take effect July 1, 2017. Watch for compliance resources in the coming months from the Seattle Restaurant Alliance and the Washington Hospitality Association.

Many of our member businesses already have paid family leave policies in place. Several local businesses, including members of the Seattle Restaurant Alliance and Seattle Hotel Association, have also been participating in these sessions to share how a paid family leave policy would impact them.

The Association’s state government affairs team is working toward a statewide paid family leave policy this legislative session, and our team is closely following the conversation in Seattle. Our government affairs team believes that draft policy may be ready for consideration at Seattle City Hall this spring, but this may change if there is action at the state level.

Members are encouraged to attend one of the conversations with Councilmember Gonzalez. Please email JillianH@wahospitality.org for dates and locations.

I-124 LEGAL CHALLENGE NEWS COMING SOON Initiative 124 was passed by Seattle voters in the November 2016 election. The initiative calls for new safety and health insurance requirements for Seattle hotel employers.

The Seattle Hotel Association, Washington Hospitality Association and American Hotel & Lodging Association filed a lawsuit December 19 requesting the court invalidate the ordinance.

One of the provisions, requiring hotels to blacklist guests, forces our industry to choose between protecting our guests or protecting our employees.

A hearing date has been set for March 31. Our team will keep you updated as other briefing and motions occur.

14 │ wahospitality.org

SHORT-TERM RENTAL LEGISLATION HEATING UP AROUND THE STATE

Short-term rental legislation is popping up in a variety of forms in counties and cities across Washington. Proposed or enacted legislation ranges from simply parking restrictions to how much space is required between rentals. Here is a sample: Whatcom County Whatcom County is in the process of creating legislation for rural rentals. This legislation focuses on the county’s shoreline code and has been sent to the Washington State Department of Ecology for input.

Bellingham The City of Bellingham has taken a more hands-off approach to short-term rentals, focusing more on health and safety rather than taxation. Rentals are required to have all health and safety inspections as well as register as a rental with the city each year.

Clallam County Clallam County has imposed a variety of health and safety guidelines on shortterm rentals that include having a proper sewage system and written information on where water and power shut-offs are located.

Port Townsend Port Townsend has created strict guidelines for its rentals, going so far as to hire a full-time code enforcement officer for health and safety violations. City Manager David Timmons stated that because of complicated tax processes, the city never knows if the correct amount has been paid. Because of this, he said the city will investigate properties for land use violations and tax evasion.

Walla Walla Walla Walla is still in the planning phases of creating rental legislation. On March 8, the city council is scheduled to discuss and vote on recommendations from the city’s planning commission.

Seattle An ordinance to regulate the short-term rental market in Seattle, including Airbnbs and VRBOs, is expected to be considered by the Seattle City Council in

March. The effort began in spring 2016 and has been led by Councilmember Tim Burgess, who said he is concerned short-term rental owners are taking much needed affordable housing stock off the market for residents of the city.

Burgess’ proposal would limit shortterm rentals to primary residences plus one additional unit. Operators would also need to secure a special short-term rental license in addition to a business license. As soon as a policy is approved, we’ll post it at wahospitality.org.

TACOMA UPDATE

In December, Tacoma Councilmember Victoria Woodards resigned from her position on the city council and announced her candidacy for mayor.

The city council has spent the last two months interviewing, discussing and deciding whom to appoint to the vacant at-large position for the remaining 11-month term. Out of 55 applicants, the pool was narrowed down to eight candidates for interviews.

On January 24, the council voted, 7-1, to appoint Lauren Walker to the at-large position. Walker served on the city council from 2008 to 2015, and she made it clear that she would not run for the position after the term is up. Two additional seats will be up for election this year, as is the mayorship.

March 2017 │ 15

A World of Opportunity for Women in Hospitality

By Paul Schlienz

March is Women's History Month and a good time to reflect on the immense progress and contributions women have made to the hospitality industry.

“There are more women in restaurant management and ownership positions than virtually any other industry,” wrote Dawn Sweeney, president and CEO of the National Restaurant Association in a recent statement. She added that restaurants provide “opportunities to women of all ages and at all stages of their careers, from owners to managers to college students to retirees.”

The numbers bear this out. At some point in their lives, 61 percent of adult women will have worked in a restaurant, and the number of women-owned restaurants is growing 16 │ wahospitality.org

at a faster rate than restaurants overall. According to the National Restaurant Association, 33 percent of all restaurants are owned by women with another 15 percent of restaurants equally co-owned by women and men. And in 2016, 51 percent of restaurant managers were female.

Women also play important roles in the world of hotels.

According to the Bureau of Labor Statistics, 52.2 percent of lodging managers are female.

Any way you look at it, the future is, indeed, bright for women in hospitality. Here are three Washington women who have taken advantage of opportunities to build successful careers in hospitality.

Symms attributes much of her success to sheer perseverance.

"If you have a lease, you have made a personal guarantee," Symms said. "You've made commitments you can't easily get out of, so you find a way to make it work."

Symms' perseverance was probably never more put to the test than it was when she faced high interest rates in the 1980s.

"When interest rates soared to 21 percent, things looked bleak," Symms remembers. "I thought I wouldn't survive.

I was even doing the unthinkable, not paying my payroll taxes because I didn't have any money."

Nevertheless, Symms did not throw in the towel, cut her losses and run. Instead, she ultimately straightened out that mess and moved on to even greater success in the industry.

"I'm always asking questions, looking for information and trying to find solutions not in front of me," Symms said.

"Being willing to hire people who know more than you do in certain areas is an important part of being successful in business."

Diane Symms

Owner of Lombardi's Italian Restaurant Diane Symms has deep roots in Washington’s hospitality industry. As a newly divorced single parent in 1970 Seattle, it was not an easy time to find work that would support her and her children. The state was in the midst of the devastating Boeing recession that spawned the infamous billboard asking, "Will the last person leaving Seattle- Turn out the lights?"

"I talked with a friend who was a real estate agent," Symms remembers. "He had a sandwich shop in Georgetown that he wanted to sell. It was a small location that was relatively inexpensive."

For $5,000, Symms purchased Little Caesar's Big Hero Sandwich Shop.

Symms also credits the Washington Hospitality Association and its forerunner, the Washington Restaurant Association, for helping her succeed.

"The WRA played an important part in my success." Symms said. "It allowed me to talk to folks in other parts of the industry."

I'm always asking questions, looking for information and trying to find solutions not in front of me.

— Diane Symms

"I launched it and found that I enjoyed running a business, even though I knew nothing about it beforehand," she said.

"It was open 11-3 every day, and that worked very well with my schedule with the children."

Eventually Little Caesar's moved to a different location and became a café and catering operation called Wild Strawberry.

Symms later opened a second restaurant, Roanoke Exit, in 1980. Then, in 1987, she opened the original Lombardi's in Ballard. From that flagship restaurant, the Lombardi's chain expanded to include additional restaurants in Issaquah and Everett. Today Symms still owns and operates the Everett restaurant in addition to a Mill Creek location.

Serving on the WRA board also convinced the Canadianborn Symms of the need to be active in politics via voting.

As a result, she became a U.S. citizen in 1991.

Over the years, Symms has seen great changes in the status of women in the hospitality industry.

"It's much easier to be a woman in business these days than when I started," said Symms. "Working women are now the norm while in 1970, when I started, the stay-at-home mom was still the rule, not the exception."

March 2017 │ 17

Symms urges young women who are interested in making a career out of hospitality to get a good education in whatever part of the industry they want to be in.

"It's much more difficult today to jump in to owning a business with next to nothing like I did in 1970," Symms said. "There are still opportunities, but you have to remember that it's demanding work, and you'll still have to give up other things in life."

All in all, however, Symms is happy with her career choice.

"I really like the hospitality industry," Symms concluded.

"I like the creative part of running a restaurant, and I like being part of communities. That means a lot to me."

Denise Vickerman

General Manager, Ramada Spokane Airport By anyone's estimation, Denise Vickerman has had an impressive career. She's been at the Ramada Spokane Airport since 1984.

In 2007, after many years as the property’s bookkeeper and then administrative assistant, she was so popular with the other employees that when there was an opening for a general manager, her co-workers signed and forwarded a petition to the hotel's owners that they wanted her to be the new general manager. They listened, and in 2012 the American Hotel & Lodging Association named Vickerman the nation’s top general manager for midscale hotels.

Vickerman's journey began in her hometown of Ritzville where she got her first experience in the hospitality industry by working at Spike's Drive-In as a waitress when she was a high school sophomore. Thoughts of a hospitality career, however, were in the distant future for Vickerman who went on, after studying fashion merchandising at Spokane Falls Community College, to a bookkeeper/ secretary position at Lawton Printing.

Vickerman left Lawton Printing in 1982 to have a child.

In 1984, she reentered the hospitality industry by taking a

I’m always hiring people who are a little smarter than me.

I’m always promoting from within, keeping an eye out for people with potential.

— Denise Vickerman

18 │ wahospitality.org

part-time bookkeeping position at the Ramada Spokane Airport, where she's remained ever since.

"The hotel industry has great potential for growth," said Vickerman. "Don't let the stress of working with the public get to you. If you know each job thoroughly, it will lead you to a great career. This is particularly important if you are aiming for management because I can't see anyone without hotel experience as a general manager. Never rest on your laurels. You always need to be training. " Vickerman has also seen a great increase in the number of women in the lodging industry over the years, although they have been slow to enter into executive and management positions.

"I don't necessarily see it as a gender thing, at least in my company," Vickerman said of the lower numbers of women in management. "I think it is the person and if they want to succeed. Fifty years ago you'd never see women working.

Things have changed a lot, and in the future, I expect to see a lot more women in management positions."

As a manager, Vickerman is always on the lookout for new talent with potential for moving up in the ranks.

"I'm always hiring people who are a little smarter than me," she said. "I'm always promoting from within, keeping an eye out for people with potential. My employees know there is career potential in this company. That makes them feel they have a stake in its success."

Vickerman's devotion to her employees and her company has helped get her through even the hardest moments she's faced as a general manager.

"There were many a day when I went home and said I couldn't do anymore, but with my history with the hotel and my relationship with the owners and the other employees who counted on me, I'd feel horrible leaving them in the lurch," Vickerman concluded. "The majority of employees feel the same way, and it keeps me going knowing such good people work there with me."

Whoever is in charge, ask them what you can do to succeed. Ask what you can do to improve yourself.

Make your wishes known.

— Shelley Keitzman

Shelley Keitzman

Owner, KFC/Taco Bell, Omak Like Vickerman, Shelley Keitzman also hails from a small town east of the Cascades. Growing up in Omak, her first job, in high school, was at a locally-owned quick-service restaurant. Little did she know that she would one day own the restaurant.

Keitzman went on to Washington State University. After graduation, she built a career in the hospitality industry, supervising McDonald's in the Olympia area. Eventually, however, she felt the lure of her hometown and she took a job managing the restaurant where she had worked in high school.

After five years as manager, she purchased the restaurant, a combination KFC/Taco Bell under one roof. Keitzman has never regretted her choice.

"I really enjoy the employees and customers," said Keitzman. "I'm very hands on in the way I run that restaurant. It's fortunate that I have one restaurant. I can spend more time there. I'm really a bit of a control freak."

With nearly 30 years in restaurants under her belt, Keitzman has a lot of advice for young women who want to build a career in the hospitality industry.

"Spend enough time in a job to know if it's a good fit for you," Keitzman said. "Whoever is in charge, ask them what you can do to succeed. Ask what you can do to improve yourself. Make your wishes known."

Keitzman also urges young people to stay focused if they are interested in building a hospitality career.

"The work ethic or lack of a work ethic is much more challenging today than ever before if you're running a restaurant," she said. "A lot of it is due to the Millennial Generation's absorption with electronics. There are so many distractions like cell phones that it is sometimes really hard to keep employees on track."

Still, even with the many distractions available, Keitzman continues to find excellent employees.

"I'm always on the lookout for my next manager," she said.

Above all, she urges young people to never underestimate the importance of their jobs in restaurants, even if they see them as only a temporary position on the way to something else.

"This may be your first job," Keitzman concluded. "The last thing I thought when I was 17 was that I would one day own the business. Never burn your bridges. Stay in touch with your former employer."

March 2017 │ 19

THE POWER OF

STORYTELLING

By Marianne Scholl

up of facts, feelings, and interpretations, which means that part of your story isn’t even told by you.

Seattle’s Portage Bay Café offers a great example of a clear brand story. They have expanded to four locations over the past decade, not just because they offer good food or because Seattleites have an insatiable appetite for brunch.

Their guiding principle is “Eat Like You Give A Damn. Local.

Organic. Sustainable,” and it informs everything from their menu to what they put on their table tops. It guides what they post on social media and what their guests say back at them about their eating experience.

Here are some common tips on how to clarify your story and leverage it to improve your outreach to guests:

Who are you talking to?

STORYTELLING is as old as mankind for a reason. At

their most basic level, stories help us make sense of our world.

They link us to our past and they strengthen our emotional connection to people, places and things. You could also say that history, and even politics, are built on the complex stories people tell each other. And these days, stories are the “it thing” in marketing.

Smart marketers have always focused on establishing an emotional connection with customers, and the really good ones are now using a wide range of media to tell stories that tickle your funny bone or pull on your heart strings. Take those Super Bowl ads, made by top-tier advertising agencies that excel in tapping into what’s trending to tell stories that elicit strong, positive emotional responses. If you watched Super Bowl LI, you’ll have seen this demonstrated in the Budweiser founders’ immigrant story and the equal-pay-for-women pitch from Audi.

Fortunately, good storytelling to promote your business doesn’t take a multi-million-dollar ad budget. What is does take is a good starting point, and that place is what is now called your “brand story.” This isn’t a mission or vision statement, and it isn’t simply what you put on your “about us” page. It is more multi-dimensional, what you might think of as the essence of your business. As marketing consultant Bernadette Jiwa writes on her website, thestoryoftelling.com, “Your story isn’t just what you tell people. It’s what they believe about you based on the signals your brand sends. The story is a complete picture made

20 │ wahospitality.org

The first task in marketing is to identify your target audience.

As you refine your brand story or look to connect better with current and future guests, take the time to find out more about the people who walk through your door. Get to know your guests by striking up conversations. Offer a special promotion using Facebook or Twitter that will give you an opportunity to learn more about the people who care enough about your business to engage with you on social media. Talk to your POS provider about mining your sales data to better understand your customers.

Another approach is to think about your ideal customer. If you could clone one of your customers, who would it be? Male or female? Income level? Food preference? What does she (or he) care about and who influences them? It should be someone who is already a fan of your business. Speaking to this ideal customer when you post on Facebook, approve an ad or develop menu items will add an emotional strength to your outreach and help you get out of the “catering-to-everyone” trap.

Figure out your core message.

Every good story relies on a specific themes and ideas. Figure out what you want to say and then boil it down to one or possibly two ideas. Eliminate branding that distracts from your key idea(s).

Be honest and authentic.

Don’t try to be something you aren’t or aim for a clientele that hasn’t already been walking through your door. For example, if most of your guests are students and young families, pitching to upscale, single professionals will confuse everyone. And rather than hard-selling your latest promotion, take a softer, more intimate approach. Use social media to share the creative process that went into a new dish. If you’ve switched to service charge or a surcharge, share how this is helping your employees in both the front and back of the house.

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The HR Department

Lessons from SeaTac Minimum Wage Litigation?

Outcome of SeaTac back-pay lawsuits suggest employers should not ignore contested federal overtime rule.

By Catharine Morisset, Attorney at Law

As of the writing of this article, the litigation challenging the U.S. Department of Labor’s new rule increasing the salary basis for the white-collar overtime exemptions remains active. Specifically, this means that the situation is the same as it has been since Nov. 22, 2016: The preliminary injunction remains in effect; and Expedited proceedings are moving forward in the Fifth Circuit U.S. Court of Appeals.

Despite employers’ desire for certainty, no attorney, commentator or legal analyst can read the tea leaves. The fact is that the future is clouded by so many potential scenarios that few, if any, indisputably “right” or “wrong” courses of action exist.

The prudent employer will undertake to make a measured analysis now to prepare for the ultimate litigation outcome.

This should be more than just doing what “everyone else” is doing. A measured analysis should include consideration of potential outcomes if the salary increase is upheld. For Washington-based hospitality employers, there may be some lessons to learn from our litigation challenging SeaTac’s minimum wage law.

Let’s review the background. In November 2013, SeaTac voters passed Proposition I, resulting in the city’s Employment Standard Ordinance, imposing mandatory paid sick leave and increasing the minimum wage for certain hospitality and transportation businesses. That same year, several employers and the Washington Restaurant Association filed suit challenging the application of the ordinance to employees working at Seattle-Tacoma International Airport. The suit was known as Filo Foods, LLC et al. v. City of SeaTac et al. A trial court agreed with the challengers in late 2013 that the law did not apply to airport workers. The case then made its way to the Washington State Court of Appeals and eventually the Washington Supreme Court.

22 │ wahospitality.org

In its August 2015 decision, the state’s Supreme Court reversed the lower court decision. It held that the SeaTac ordinance could be enforced at both the airport and in the city because there had “been no showing that this law would interfere with airport operations.” Unclear was whether this ruling meant that the law applied to workers as of its original effective date of Jan. 1, 2014.

Not unsurprisingly, beginning January 2016, local plaintiffs’ attorneys began filing putative class or multi-plaintiff actions against various transportation and hospitality employers located at SeaTac seeking unpaid wages and overtime from January 2014 to the present. Employers who had delayed raising employees’ base wage to at least the SeaTac minimum or failed to closely follow the outcome of the Filo Foods case found themselves having to defend against employee lawsuits.

The potential damages are steep. Under Washington law, a successful plaintiff is entitled to recover the wages owed plus 12 percent prejudgment interest, the plaintiff’s own attorney fees and double the wages owed for “willful” withholding, a broad term that courts found does not include a misunderstanding of the law. In other words, these employers face claims for more than just the difference in the wages. Issues in these cases include whether the double damages penalty applies and if so, for how long (e.g., from the date the law was effective or the date of the Filo Foods decision). There is no definitive court ruling on those issues, and it will likely be the subject of an appeal. Affected employers are now faced with tough decisions – whether to litigate these issues while incurring more potential liability or settle the lawsuits. According to the Seattle Times, a settlement in one of the class actions totaled over $8 million.

What does all this mean for the U.S. Department of Labor overtime rule litigation? Firstly, employers should appreciate that all that is currently in place is a preliminary restraining

order. In other words, the courts have temporarily suspended the effectiveness of the salary increase that was set to go in effect Dec. 1, 2016, pending a final decision on whether the rulemaking was lawful, which usually requires a trial.

It could be a while until we know the final outcome, and there is no guarantee the lower court decision will be upheld. Secondly, if the appellate court does uphold the rule, rather than the restraining order, there is no way to predict if that final decision would be retroactive to December 2016. That means that employers who made no changes could face claims under the Fair Labor Standards Act (FLSA) for wages owed back to this date in addition to administrative penalties.

Lastly, there is no certain way to predict what damages an employee could recover if the rule is upheld.

Somewhat similar to Washington’s law, the FLSA also allows employees to recover liquidated damages in an amount equal to the pay employees should have received and their attorney fees. It is uncertain whether the pending litigation would give employers a “good faith” defense to the liquidated damages provision.

As with any legal uncertainty, it remains important to have a plan for compliance and be fully informed about potential outcomes. As always, if you need legal advice, seek it from your attorney.

This article is not intended as legal advice. Please consult your employment attorney for guidance on your specific situation. Catharine Morisset is a partner in Fisher Phillips’ Seattle office. Her practice focuses on representing local and national employers in litigation in state and federal courts, on appeal, and also before the EEOC and similar state agencies in all aspects of workplace law. You can reach her at cmorisset@fisherphillips.com or visit www.fisherphillips.com for more information.

March 2017 │ 23

DON’T FORGET

THE

BABY

BOOMERS

By Paul Schlienz

The hospitality industry is abuzz with talk about Millennials – and for good reason. Millennials, born roughly between 1982 and 2000, make up the largest age cohort in the U.S. Naturally, restaurants and hotels will want to cater to their interests, tastes and expectations. They are, after all, the future.

But businesses ignore the still formidable Baby Boom generation at their own peril.

Sixty-two percent of all quick service/drive-in restaurant visits during the coming 10 years will be from guests in the 50 or older range, according to research from MRI Research. This translates into an additional 1.4 billion visits by 50-plus consumers in comparison to an increase of merely 875 million among the 18-49 age group.

These people are mostly empty-nesters with disposable income – exactly the kind of consumers with the means and the freedom to dine out and travel. AARP research on travel trends reports that virtually all Baby Boomers—or 99 percent—will travel in 2017, taking an average of five or more trips throughout the year.

Riggs study for NPD offers many insights into Boomers’ expectations for restaurants. One of the Boomers’ biggest pet peeves is noisy restaurants where they must strain to hear dinner conversation. This is easily remedied by turning down background music and utilizing designs and materials that bring down the ambient noise.

“Yet, this is a group of people who feel neglected,” said Bonnie Riggs, an NPD industry analyst who authored a study on Baby Boomers and their impact on the restaurant industry. “Restaurant operators have not paid enough attention to their wants and needs.”

Other ways to win points with Boomers include making menus readable with larger fonts and better lighting, providing comfortable seating and offering frequent diner and discount programs.

According to Patricia Lippe Davis, mass media and advertising expert, Boomers really do want quick service to be quick.

And don’t forget to smile when you serve them. “Boomers really want the people serving them to be polite and friendly,” said Riggs.

“People over 50 are reinventing life’s ‘golden years’ as a time of possibility,” said Davis. “They stay active, exercise, volunteer and travel, all of which lead to needing quick meals that fit into their busy lives.”

There is a tendency to overlook Boomers because Millennials and the even younger Generation Z are much more attuned to the most recent hot trends in flavor and food. In contrast, Boomers are no longer early adapters.

Neither are they generally as adventurous as the younger age groups. Nevertheless, they are a massive presence in American life with more purchasing power than any other generation. They eat out and travel more than any other demographic. They also tend to choose full-service restaurants more than anyone else.

Increasingly, the Boomers are demanding healthy eating choices in addition to prioritizing time with their grandchildren.

“Who likes to stop off for lunch more than a kid?” asks Davis. “If the food options are there for Boomers along with Happy Meals, everyone wins. Marketers who can win over grandparents will gain their families, too.”

24 │ wahospitality.org

In other words, the generation that shook the world, in the 1960s, still matters.

At your

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Spotlight on Members Supporting Communities:

Washington Hotels Lighten the Burden on Cancer Patients

By Jillian Henze

Fifteen years ago, the American Cancer Society started a Hotel Partners Program to provide cancer patients free overnight accommodations when they have to travel for outpatient treatments.

For about 10 of those years, Bill Weise, the general manager of the Silver Cloud Hotel Seattle - Stadium, has participated in the effort in Seattle.

He’d also supported the program when he was at other properties, but it really hit home for him when his own mother battled cancer. “[The cause] is near and dear to my heart,” Weise said of the program. “We want to give patients one less thing to worry about.”

Christina Kelly, senior communications with the American Cancer Society, said there are 70 hotels in Washington state currently participating in the Hotel Partners Program. In 2016, these hotels provided about 2,400 free room nights to cancer patients.

The Hotel Partners Program is available to cancer patients of all ages, including pediatric patients accompanied by a parent and patients traveling with children.

Hotel rooms are given based on eligibility requirements and are subject to availability and to restrictions imposed by the participating hotels.

Kelly said most patients are seeking treatment Monday through Thursday, when hotels are less likely to be full, which is why the program is successful.

The American Cancer Society coordinates the patient reservations, so the patient doesn’t have to worry about where they’ll stay and can focus on their treatment.

Weise said the society’s regional representative gives him a call on a caseby-case basis to inquire if he has a room to donate to a patient. Many of the patients are traveling from Alaska, Idaho or other Washington cities, he said.

The American Cancer Society has identified the need for lodging as one of its top two priorities. The other priority is connecting patients with free transportation to and from treatments.

“We need more hotel partners to join us to ensure that cancer patients don’t have to make a decision about whether to travel for the best treatment based on the financial burden of paying for lodging,” Kelly said.

“Patients already have a lot of out-ofpocket expenses,” Kelly said. “Some of these people were going bankrupt.

There are a lot of unmet needs.”

Weise estimates that in 10 years at Silver Cloud - Seattle Stadium, he has donated about 1,000 room nights through the program. He said his staff

SHINE THE SPOTLIGHT ON YOUR GOOD WORKS 26 │ wahospitality.org

YOU, TOO, CAN HELP! The American Cancer Society is looking for more hotels to participate in their Hotel Partners Program. Interested hoteliers should call 1-800-227-2345 to connect with one of the Society’s regional representatives.

provides special accommodations to these special guests. For example, his team has taken spouses to the grocery store for some fresh air and goodies.

He added that Silver Cloud Inns & Hotels’ owners are huge supporters of the cause.

Through the years, Weise has personally received thank you letters and positive comment cards from the patients who have stayed at his hotel.

Occasionally, they will spot his name tag while riding up in an elevator and make the connection.

His favorite stories are the success stories, the patients who have stayed at Silver Cloud multiple times, fully recover and never have to come back.

“I have been hugged many times in an elevator as a thank you,” he said with a laugh. “I am blessed and very thankful for what they do for these patients and that we get to be a small part of their treatment and recovery process.”

We want to hear about how your hospitality business is giving back to the community! Email JillianH@wahospitality.org if you have a story you’d like to share.

www.wahospitality.org

CREDIT CARD PROCESSING

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Terms and Conditions* Other terms and conditions apply: • Offer applies to new U.S. Bank merchant customers only.

• Offer requires deposit of settlement funds to U.S. Bank Business Checking Account.

• Offer not valid if customer’s current rates are set to be competitive for a large franchise or association members under corporate pricing, government or non-profit entity pricing, warehouse pricing, petroleum merchants, merchants processing through a third party network, Elavon or U.S. Bank Partner, or other U.S. Bank group offers. Offer requires merchant processing a minimum of $50,000 in annual credit card sales.

• Written processing agreement required. Service may be provided by a U.S. Bank group company.

• Merchants must provide their two most recent complete credit card processing statements.

• Meet or Beat promotional campaign is available for a limited time only. Offer subject to change, modification, or termination without notice.

To take advantage of this offer a rate evaluation must be requested by 12/31/2016.

• Our meet or beat offer is limited to total processing costs excluding equipment/software costs. Offer limited to one per business entity or related business.

• The U.S. Bank Visa Gift Card cannot be reloaded with additional funds, nor can it be used at an ATM. For use in the U.S. only. Terms and conditions apply and other fees may apply. For complete details visit www.usbankmyaccount.com. Card is issued by U.S. Bank National Association, pursuant to a license from Visa U.S.A. Inc. Deposit and credit products offered by U.S. Bank National Association. ©2016 U.S. Bank National Association. Member FDIC. 7502-A (1/15) MMWR59364

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INDUSTRY CALENDAR March/April TRAINING Mar. 23

ServSafe® Manager, Vancouver

Mar. 27

ServSafe® Manager, Kent

Mar. 28

ServSafe® Manager, Spokane

Apr. 4

ServSafe® Manager, Seattle

Apr. 6

ServSafe® Manager, Wenatchee

Apr. 11

ServSafe® Manager, Kent

Apr. 17

ServSafe® Manager, Everett

MEETINGS Mar. 9

Seattle Hotel Association Board Meeting

Mar. 14

Board Development Conference Call

Mar. 21

Spokane Hotel/Motel Association Meeting

Mar. 21

Spokane Chapter Membership Meeting

Apr. 4

Executive Committee Monthly Meeting

Apr. 5

Seattle Chapter Monthly Meeting

Apr. 11

Seattle Hotel Association Social

Apr. 13

Pierce County Hiring Event, Hotel Murano

Apr. 18

Spokane Hotel/Motel Association Meeting

Apr. 18

Finance Committee Meeting

Apr. 18

Spokane Chapter Board Meeting

Apr. 23

MSC Board Meeting

Apr. 24

Education Foundation Board Meeting

Apr. 24

Hospitality Board Meeting

Apr. 25

Hospitality Board Meeting

UPCOMING EVENTS Apr. 4

Washington Hospitality Summit, Seattle

Apr. 23-24

Northwest Foodservice Show, Oregon Convention Center

NEW MEMBERS Best Western Plus Pasco Inn & Suites, Pasco

Pita Pit, Pullman

Best Western Plus, Kennewick

Sagedog LLC, Yakima

Choukette Eclair’ Art, Seattle

Seattle Certified Pizza, Seattle

City of Spokane Parks, Spokane

Spice King LLC., Renton

Dillingers, Olympia

The Atlantic Seattle, Seattle

Graham’s Restaurant, Glacier

The Grey House Cafe, Port Orchard

Japonessa Bellevue

Tootsie’s, Sequim

Luioge, Lynnwood

Tri Cities Tap & Barrel, Richland

Lunchbox Lab, Redmond

Turkish Kababs, Fort Lewis

NW Kings LLC., Issaquah

Vino Rosso Inc., Seattle

Palmers East, Redmond

Waterstreet Cafe & Bar, Olympia

Pavz Cafe, Leavenworth

Graham’s Restaurant, Glacier

Peyrassol Café at Southport, Renton

Pita Pit, Pullman

Pioneer Tavern, Long Beach

Sagedog LLC, Yakima

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Four Financial Trends Offer Restaurants a Rare Opportunity

By Rick Braa, CHAE

This year I’m looking at new trends in many different areas. I’m curious, what are the major issues in the financial areas?

Every year starts fresh with new ideas, energy, hope, interest and challenges. This is especially true in 2017, and the restaurant industry has a rare opportunity to address and fix some significant issues.

Staffing will be more difficult, and kitchen wages are going to continue to grow.

The labor market for kitchen employees is tight. This will continue in 2017. Expect hourly wages in the kitchen to be in the upper teens or low twenties for cooks, assuming cooks can be found. To combat this, work with your vendors to find competitively-priced product that uses less prep labor. Blend excess prep labor with line cook labor, and work with fewer bodies. With the ability to find kitchen employees continuing to be challenging, a great strategy is to use fewer bodies and to make sure that they make you more money. Provide overtime where appropriate, and be the employer of choice.

Sales building will be managed more aggressively, and non-revenue producing staff will be reduced.

Wages will continue to increase, and restaurants will address this in three ways.

The average impact on restaurants statewide of an increasing minimum wage is an estimated $20,000 per million in sales. Automatic service charges may take the place of the traditional tipping model, and there has been an abundance of press coverage regarding service charges.

Early data suggests this model is being accepted, but only in certain geographical areas. Secondly, surcharges are finding their way onto guest checks. This is typically a small percentage charge applied to the overall guest check with the option to tip kept in place. While some operators have had success, others have not. Success depends on the guest base’s sensitivity to price point. Lastly, increased menu prices are being introduced to combat higher wages. This is a simple way to improve the bottom line by offsetting higher costs. The important thing to remember is that the public voted for higher wages, and you can respond to this.

Restaurateurs have traditionally used hosts, bussers and bar backs to support revenue-producing positions such as servers and bartenders. It is important in 2017 that each position in the front of the house produces revenue or has the ability to do so. Increasing check average while increasing the speed of table turns is imperative to generating revenue and reducing labor cost. Emphasize sales building and speed at the same time. Check with your POS providers about solutions for pay at the table to assist with closing tickets, becoming chip compliant and reducing those few minutes of wasted time per table.

Food cost will continue to trend lower, and more value to the guest will be offered with higher menu prices.

The Consumer Price Index forecast for 2017 anticipates food will increase a nominal 1.0 percent in 2017, following what is expected to have been an equally low increase in 2016. While this appears to be good news on the surface, the gap between food-at-home pricing and food away from home will widen. To manage the pricing gap, add more value to each plate while increasing prices to match consumer price/value quotient.

With every new year comes new opportunity: Although labor costs are increasing, 2017 offers a rare opportunity to reinvent price/value perception while increasing pricing— as expected by voters—to address both increasing wages and higher profitability.

For a more information on improving profitability and driving sales, contact AMP Services at rbraa@ampservices.com. Rick Braa is the co-founder of AMP Services, an accounting and consulting firm specializing in helping companies grow profitability.

30 │ wahospitality.org

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For more information, contact John Stallsmith at (317) 513-5496 or john.stallsmith@optum.com. *Some restrictions apply. ©2016 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through a UnitedHealthcare company.

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