Washington Restaurant & Lodging Magazine May 2016

WA S H I N GTO N

May 2016

& Lodging

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BEST PRACTICES

KNOW YOUR

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CONNECTING WITH YOUR COMMUNITY

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Inside

www.warestaurant.org

Features

14

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16

In Every Issue

22

WA S H I N GTO N

May 2016

& Lodging

[ CUSTOMERS ]

BEST PRACTICES

KNOW YOUR

FOR

BEST WEBSITES

CONNECTING WITH YOUR COMMUNITY

Alternatives to TIPPING

6

President and CEO: State of the Industry

7

News Briefs

9

Lex on Tech: Voice-activated Technology and the Future of Hospitality

10

Government Affairs Update

24

WRA’s Education Foundation at Work

26

Calendar/New Members

30

Ask the Expert: Build a Culture of Speed for Lasting Results

On the cover

With the hospitality industry changing so quickly in so many ways, it is essential that all operators stay on top of the latest trends. This issue of Washington Restaurant & Lodging helps you stay informed as you navigate new business models, new ways of compensating your employees and new ways of connecting with your customers.

Washington Restaurant Association 510 Plum Street SE, Suite 200 Olympia, WA 98501-1587

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Beyond Customer Feedback Cards Serving Our Communities Lessons in No-tipping Your Restaurant Customer Is Your Website Up to Snuff?

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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, Stephanie Davenport Contributing Editor, David Faro Research Editor, Sheryl Jackson

President and CEO

JOINT EXECUTIVE COMMITTEE WRA Chair, Phil Costello Stop n’ Go Family Drive In WLA Chair, Matt Van Der Peet Westin Bellevue Hotel WRA EXECUTIVE TEAM President and CEO, Anthony Anton Vice President, Teran Petrina Director of Business Development, Ken Wells Director of Communications & Technology, Lex Nepomuceno Director of Education, Lyle Hildahl Director of Government Affairs, Bruce Beckett Director of Internal Operations, Kylie Kincaid

State of the Industry

By Anthony Anton About a year ago I spoke at our first State of the Industry event on the death of the old business model and the birth of a new one. At that time a lot of what I said was a surprise to many of you. Today, I believe the hospitality industry is well aware that business models must be open to change and you are living that reality.

It’s a hard world out there for our industry. I couldn’t speak in any honest way without acknowledging that fact right off the bat. What are we facing? I outlined these issues last year, and this year the challenges are back, bigger than ever.

510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.warestaurant.org │walodging.com Letters are welcomed, but must be signed to be considered for publication. Please include contact information for verification.

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

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

Products and services advertised in Washington Restaurant & Lodging Magazine are not necessarily endorsed by the WRA or WLA, and do not necessarily reflect the opinions of the WRA, WLA, their Boards of Directors, staff or members.

ADVERTISING INQUIRIES MAY BE DIRECTED TO: Michelle Holmes Allied Relations Manager 206.423.3902 michelleh@warestaurant.org Washington Restaurant & Lodging Magazine is published monthly for WRA and WLA members. We welcome your comments and suggestions. email: news@warestaurant. org, phone: 800.225.7166. Circulation: 6,310.

Minimum wage increases. The battle over minimum wage increases is far from over. This November you’ll likely see a ballot measure to raise the state minimum wage to $13.50 an hour over four years.

A labor shortage. The retiring generation is much larger than the generation entering the workforce, creating a vacuum effect away from our industry jobs.

Additional regulatory burdens from new overtime laws, the health care mandate and local paid leave mandates. The minimum wage is not the only factor that will drive higher costs.

And restrictive scheduling is now a very real part of our future. It is being developed right now in Seattle. This scheduling mandate would likely require employers to give two weeks’ notice for any schedule change and undermine a key component of our workforce: flexibility.

The good news I have to deliver about all of this is that nobody knows how to adapt to change better than those of us who work in hospitability.

We continue to be one of the country’s most popular industries, and the generations entering the workforce desire to be more dependent on awayfrom-home dining and “experience” purchases over asset purchases. We are still one of the best places to work and we give people the leg up they need to be successful. In fact, we employ an average of 233,000 people in Washington.

I’m excited for the opportunity to go more in-depth during my presentation at the State of the Industry event on June 8 in Seattle. I hope to see you there!

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LODGING

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QUICK SERVICE

Primary Source of Information | News Briefs Food Donations in 2016 May Earn You Greater Tax Benefits Than in Past Years

A new tax law makes it even more worthwhile for restaurants and hotels to donate surplus food. Your donations are already helping those in need and reducing your environmental footprint. Now, with the passage of the PATH Act by Congress in December 2015, your donations can do even more to lower your tax burden. The PATH Act raises the annual cap on food deduction donations from 10 percent of a business’ total taxable income to 15 percent of its net income starting in 2016, and it allows businesses to carry the tax deduction forward for up to five years. It also codifies an important tax ruling that allows businesses to define the fair market value price of donated food as the retail price at the time of contribution, giving greater certainty in how to value donated food. Perhaps most significant for the industry, the law now allows all companies, not just C-corps, to take an enhanced tax deduction for food donations to 501(c)(3) charitable organizations, and the enhanced dedication is now permanent.

Seattle Chef Lauded as One of the Best New Chefs of 2016

Congratulations are in order for Chef Edouardo Jordan. He was named one of 2016’s best new chefs by Food & Wine magazine in April, and earlier in the year was featured in The New York Times and named a James Beard Award semifinalist for Best Chef: Northwest. All of this national recognition comes less than a year after opening his highly acclaimed Salare Restaurant in Seattle’s Ravenna neighborhood.

Join the WRA and WLA at Upcoming State of the Industry Forum

On June 8, the WRA and WLA are hosting a State of the Industry Forum to provide members with an in-depth, in-person update on key developments in Washington’s hospitality industry.

It takes place from 7:30 a.m. to noon in Seattle at the Goodwill Job Training and Education Center and benefits the Washington Restaurant Association Education Foundation.

The program features a review of the challenges facing the industry by WRA/WLA CEO Anthony Anton and a timely look at this year’s election environment by Government Affairs Director Bruce Beckett. It will also include information on the Ninth Circuit’s recent tip pool decision as well as an update on restrictive scheduling efforts in Seattle.

Food & Wine’s prestigious Best New Chef list celebrates individuals who have been in a chef role for less than five years, but Chef Jordan is no newcomer to the industry. Through his hard work and determination he has landed— and excelled in—coveted positions at some of the country’s top restaurants including The Herbfarm, The French Laundry and Sitka & Spruce. Known as a master in charcuterie—“salare” means to season, salt or preserve—he has spent six months in Italy studying salami making. He is also a graduate of Le Cordon Bleu College of Culinary Art in Orlando, Florida.

The event kicks off with networking and breakfast catered by FareStart, which helps people in need develop work and life skills for success in a foodservice job. In addition to the speakers, recent industry award winners will be recognized, and there will be opportunities to win door prizes. Food Services of America is the presenting sponsor, and additional sponsors include Goodwill, ERNwest and Bell-Anderson Insurance.

In recent years, Food & Wine best new chefs have included Washington stars such as Zoi Antonitsas (Westward, 2015); Cormac Mahoney (Madison Park Conservatory, 2012); Blaine Wetzel (The Willows Inn, 2012); Jason Franey (Canlis, 2011) and Maria Hines (Earth & Ocean, 2005). Chef Jordan is the first African American to be on the Best New Chef list. Photo by Nathan Ma.

Suggested donation is $20. Space is limited, so please reserve your place now at wraef.org/events/state-of-theindustry-forum.

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Lex on Tech

Voice-activated Technology and the Future of Hospitality

By Lex Nepomuceno I love to eat at restaurants, stay in hotels and order stuff from Amazon – and much to my delight I see these three things coming together soon. At the center of it all is the Amazon Echo voice-activated personal assistant. Of course, not everybody will be happy with blending these three ecosystems, but surging consumer adoption of voice-activated technology has forced the issue.

What is the Amazon Echo?

The Echo is a wireless speaker and voice-controlled device that consists of a 9.25-inch tall cylinder speaker and a seven-piece microphone array. As a result, the device is able to hear your commands clearly from a distance without having to yell. It responds to the wake word “Alexa” and accesses the internet in order to answer questions, play music, order pizza or turn off your lights. It is essentially the Star Trek computer materialized.

Why is this important?

Imagine going into your hotel room and turning on the lights, setting the temperature, turning on the television, requesting a wake-up call and finding out where the nearest steak place is just by speaking out loud. Seriously, this is the stuff of sci-fi films, but it is here now, and it actually works. Wouldn’t this be

a great way to stay ahead of, or leapfrog past, the competition? Couldn’t this significantly improve guest experiences? This technology can also help the bottom line because instead of calling the front desk and talking with the concierge, guests would be interacting with an automated device.

Amazon has sold three million Echos in the U.S. since it launched the device in 2014, according to Consumer Intelligence Research Partners. This research also reveals that more than half of Echo owners use the smart speaker for more than just a voice-controlled music.

“Boldly go where no one has gone before…”

Whether you are a restaurant, hotel, fast food or bed and breakfast, there is the opportunity to take advantage of this emerging technology. Already, Domino’s Pizza has created its own feature on the device that allows people to order from the nearest location. Hotels can use this voice technology to create a premium experience for guests by providing each room with its own automated concierge. Remember, the Echo is a hub for almost the entire Amazon world, so it will ultimately be integrated with Fire TV, food delivery, gift ordering and payments.

If you have never played with an Echo, Siri, Cortana or other voice-powered internet appliance, I encourage you to give it a try. I guarantee it works better than the voice tech in your car, and if you use the Echo you can talk to it with the natural tone of your voice. The possibilities for integrating voice technologies into hospitality are almost endless. The best part is that we are early in the game on the adoption of these kinds of devices, so it is not too late to blaze a new trail for forward-thinking business owners.

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GOVERNMENT AFFAIRS

UPDATE

By Stephanie Davenport

SINE DIE

The 2016 Legislative Session adjourned on March 29, 2016, after a special session was needed to get the 2016 supplemental budget passed. The original session ended on March 10 with a $225 million gap between the House and Senate budgets.

Gov. Jay Inslee immediately called the Legislature back for the special session and, in an unprecedented move, he started vetoing bills in an attempt to make lawmakers find compromise on a budget. He stopped at 27 seemingly nonpartisan vetoes.

With a divided Legislature, it is impossible to craft a budget that pleases everybody. Nevertheless, the Legislature finally put the finishing touches on the session by finding a compromise to complete the supplemental budget. In the end, no new taxes were adopted, and lawmakers overrode all 27 of Inslee’s vetoes.

LIQUOR IN THE LEGISLATURE

Early in the session, the liquor distributors introduced companion bills, House Bill 2577 and Senate Bill 6324, to grant authority to the Liquor and Cannabis Board (LCB) to allow for differential pricing of spirits to on-premise licensees such as restaurants, bars, taverns and hotels. In promoting their bills, distributors claimed that their passage would restore their ability to offer lower prices to on-premise licensees. The bills initially attracted bipartisan sponsorship as a result.

Last year the LCB adopted rules prohibiting differential (or channel) pricing, and the WRA and WRA have filed a legal challenge to these rules arguing that the LCB does not have the authority to regulate market pricing for spirits. The 2016 bills, if passed, would have effectively granted authority to the LCB to regulate such pricing without any guarantees that the LCB would take any action that would lead to more favorable pricing or terms for on-premise retailers. The WRA/WLA team pointed this out in hearings and in meetings with the bill sponsors, and the early support for the bills evaporated. Neither bill made it out of committee.

TOURISM MARKETING

As the session drew to a close, our tourism coalition efforts focused on advocating for interim funding to continue a bare-bones marketing presence while the industry and the Legislature continue negotiations on long-term funding for statewide tourism promotion.

With many groups vying for limited funds, our request, while small, ultimately was unsuccessful.

The good news is that discussions surrounding the long-term funding of tourism marketing in Washington have been elevated to a new, more substantive level since January, and we are headed in a positive direction to find a solution this interim. The WRA and WLA have received a commitment from legislative leadership to work with our associations and the Washington Tourism Alliance on this issue prior to the next legislative session.

MUSIC LICENSING

On March 29 Inslee signed House Bill 1763, “Regulating Music Agencies,” into law. This important piece of legislation will dramatically help restaurants, bars and hoteliers in their interaction with music licensing companies. It establishes a code of conduct these companies must follow, including giving notice prior to arriving at a hospitality business. Companies also must make a current list of their music licenses available electronically, adding accountability and greater clarity as to which company owns which piece of music.

MINIMUM WAGE

Senate Bill 6087 would have increased the minimum wage to $12 an hour by 2020 but it failed to make it out of initial committee.

Towards the end of the regular session, WRA/WLA GA team was in discussions with proponents of I-1433, the labor-backed $13.50 minimum wage initiative headed for the November ballot, to hammer out a legislative solution to raising the minimum wage.

Although that work continued into the special session, in the end, no package emerged that could pass the Legislature. There will be an extensive review of this issue and the entire 2016 session in the July edition of the magazine.

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Restrictive Scheduling: What You Need to Know

By Paul Schlienz

If you haven’t heard of efforts to regulate employee scheduling practices, you soon will.

promotion, seniority and paid and unpaid leave policies.

Nationally, there are union efforts to require employers to provide at least two weeks advance scheduling notice and to pay compensation if the employer deviates from that schedule.

Scheduling legislation is currently under consideration in Seattle, referred to as “secure” scheduling by the city.

Of course, this restrictive scheduling, also known as “predictive” or “secure” scheduling, directly impacts the flexibility of the restaurant industry to meet customer and employee needs.

On the Books in San Francisco

In November 2014, San Francisco led the way by becoming the first U.S. city to pass legislation regulating employee scheduling.

Its two restrictive scheduling ordinances, which went into effect in July 2015, apply to retail employers with more than 40 physical establishments worldwide and more than 20 employees in the city. They require employers to provide new hires with an initial notification of their work schedules, including a monthly estimate of the employee’s anticipated minimum hours. Employees have the option of requesting modifications to their respective schedules, and employers must consider these requests. Additionally, employers must post work schedules at a minimum of two weeks in advance for existing employees.

Significantly, San Francisco’s scheduling ordinance discourages schedule changes by penalizing employers with a “predictability pay” rule. Under this regulation, if employers change an employee’s schedule with less than seven-day (but more than 24-hour) advance notice, the employee affected by the schedule change receives an extra hour’s pay. If a schedule change is made with less than a 24-hour notice, and this includes any cancellation of on-call and call-off shifts, the affected employee receives two to four hours of additional pay, dependent upon the shift’s length.

Other components of the ordinances include requiring part-time employees to be offered additional hours before hiring new employees and eligible employees be retained for a 90-day period after a change of ownership. San Francisco also requires equal treatment of full-time and part-time employees of the same level when it comes to starting wages, eligibility for

Being drafted in Seattle

Mayor Ed Murray and Councilmembers Lisa Herbold and Lorena González are leading this. The initial timeline anticipated legislation being drafted and finalized in May, with the measure to be heard in committee in June and to go before the full Seattle City Council in July. However, as a result of input provided by businesses in a stakeholder process being led by the Mayor’s Office and councilmembers, the city has contracted with a consultant to explore current scheduling practices in Seattle, employee thoughts on the issue and initial impacts in San Francisco. This report will be completed in early July. Thus, the original timeline is expected to be pushed back until late summer or fall, but meetings and hearings on the issue continue.

At present, proponents want to apply the law to businesses with 250 or more employees, but they have also indicated interest in possibly lowering that number. They are also pushing hard for penalty pay to apply when any “employer-initiated” change is made. Keep in mind that even “employee-initiated” changes would need to be documented and records retained by the employer to protect against potential legal liability.

A Seattle restrictive scheduling law with these components would mean significant change for hospitality business operators and employees. The WRA and WLA are committed to working with the Mayor’s Office, councilmembers, staff, and others to explain the unique circumstances faced by the hospitality industry in meeting customer and employee scheduling needs and finding workable solutions that meet the needs of all involved. This is particularly important in Seattle, where restaurants operating on extremely tight margins are in the process of adapting to the many new regulatory changes in the city over the past several years.

The WRA/WLA local government affairs team is actively working on this important issue. If you have any questions, please contact Morgan Hickel at morganh@warestaurant.org or John Lane at johnl@warestaurant.org.

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Beyond Customer Feedback Cards

By David Faro The psychologist Daniel Kahn, when writing about behavioral economics, claimed that, “True intuitive expertise is learned from prolonged experience with good feedback.” For hospitality professionals, developing an instinctive sense of a customer base can be difficult.

Moreover, even if you do have robust feedback mechanisms in place, developing an understanding of how to capitalize on those insights is key.

Businesses should always be asking themselves, “How do my guests and customers interact with my products and services?” The answers to that question provide springboards for strategic decisions on all levels.

Collect the cards at the end of each week, capture the information on the cards in a spreadsheet and start using that information to connect guests with your promotions and incentives by direct REWARDS and electronic mail.

Loyalty Card Program

So what is the best way to get feedback? The classic customer comment card, although still a robust tool for feedback, only really gives you one type of insight into your business. Although the card illuminates individual experiences, the data is most often relatively qualitative.

Unless organizations are meticulously recording the data and running analyses on those numbers, then the feedback mechanism lacks any sort of potential “big data” organization and scrutiny.

Call your credit card provider, hospitality association or a third party-service, and develop a loyalty card program that makes sense for the size and scope of your business. WRA and WLA allied members like VIA 121 are great sources of information with a deep understanding of loyalty card programs, incentives and feedback structures derived from the data collected by loyalty cards.

Luckily, in the 21st century, we are deep into the age of information, and hospitality’s ability to connect with customers via “digitalis” also provides managers with the capacity to collect all sorts of information about the interests, behaviors and engagement trends of the people who visit their “properties.”

After you’ve designed the program, and it’s in place, the next step is to get your staff to buy-in. The goal is to get one of your cards in the hands of every guest who walks through your door. Make it part of every transaction. After that?

Make a point of following the analytics of your campaigns.

Discover the stories those numbers tell.

How is this helpful? Each “feedback” mechanism tells a unique story that allows you to calibrate a distinct approach to meeting your customer’s needs. Each different type of feedback layer provides a modified lens to observe your customer’s integration with your business. Without these, you are running blind.

So, how might a robust feedback ecosystem look? It’s all good and well to outline the theoretical underpinnings of feedback activity and capitalization, but how does one start?

Here are some suggestions:

Collect Business Cards

This can be done by placing a fishbowl on a concierge desk, a bulletin board by the hostess’ stand, or any other place where your guests can leave a card with the hope is it chosen for the bottle of wine, free sandwich or some other small product or service.

Website and Social Media

Hook up Google Analytics to your website, which can serve as the flagship feedback mechanism for their business.

Right now the Association can tell you what the top keyword searches have been on warestaurant.org in any time frame, helping tailor our content to meet members’ needs. And that is the point of feedback, to help you keep getting better at giving your customers what they want.

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SERVING OUR C

By Marianne Scholl

Writing about how Washington’s hospitality businesses support our communities is a surprisingly difficult assignment. That’s because in the industry that serves, giving back is in everyone’s DNA, and compelling examples abound. So where does one start?

Perhaps with ProStart, the culinary training program that helps high school students find a passion and gain real-life job skills. Thirty-three Washington schools, in partnership with the Washington Restaurant Association Education Foundation, currently offer ProStart’s curriculum as part of their vocational training options. It’s a program that changes lives by opening kids’ eyes up to the challenge and immense satisfaction of a culinary career. And it works because hundreds of industry professionals volunteer each year to teach, mentor and guide Washington’s ProsStart students.

Take Jennifer Faught, a ProStart graduate herself and owner of a Zip’s Drive-In in Spokane who has mentored in Spokane Public Schools. She knows firsthand that many of the skills the students acquire will be valuable throughout their lives, and she personally appreciates the ambition ProStart helps foster.

“Dreams do come true, and ProStart gives students the sense of the possibilities,” she said.

Then there is FareStart, the Seattle-based non-profit that helps homeless and disadvantaged men, women and teens achieve self-sufficiency and employment.

It has a broad array of programs and services, and its cornerstone is an adult culinary program that provides participants with the tools, training and support they need to get a long-term, good-paying job in the food service industry. It also has a youth barista and customer service training programs that helps homeless youth ages 16 to 24 with eight-weeks of job training, along with resume and interview help and 10 months of additional support while they get established in a job.

Local chefs and restaurants play an important role in FareStart’s ability to live up to its motto “Great Food.

Better Lives.” Hundreds of Seattle-area chefs have volunteered for the Guest Chef Night which is a weekly tradition at FareStart Restaurant. These talented

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volunteers help students gain valuable experience and have helped raise $4.5 million for job training programs.

The success of any job training program ultimately rests with the ability of graduates to find and keep a job, and that’s another way restaurants help FareStart and its students succeed. The list of restaurants and hotels that have hired FareStart graduates is a veritable who’s who in hospitality good citizenship, and ranges from large players like Starbucks Coffee Company, Pineapple Hospitality and Ivar’s Acres of Clams to independents such as Skillet, Altstadt and Vios Café.

Theo Martin, owner of Island Soul in Seattle’s Central District, has been teaching kids to cook for close to 20 years at Coyote Central, a non-profit that serves middle schoolers with classes and workshops in a range of artistic endeavors.

Although he has seen students with “serious skills,” the goal of his classes is to help young teens, especially those with challenges at home, learn how to cook so they’d eat healthier with more fresh produce.

He now also serves on Coyote’s board of directors.

Of course, welcoming and feeding people is what our industry does.

Scott Fraser, owner of Frasers Gourmet Hideaway in Oak Harbor, has been doing it to give back to his community

Radisson H otel Seattle Airport tea actively vo lunteer in m membe the comuu rs nity.

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R COMMUNITIES on a truly grand scale. He helped launch a free community harvest celebration 14 years ago, and last year the annual event served Thanksgiving dinner to 3,000 local residents.

In 2009 he wanted to do even more to bring his community together and hosted a pig roast and block party. Now a fullon festival, the Oak Harbor Pigfest treated 6000 people to a free BBQ lunch in 2015 and raised $12,000 for charities. It’s no surprise that Scott’s restaurant was a state Restaurant Neighbor Award winner in 2015.

For hotels, shelter is a theme that often informs their community involvement. The Radisson Hotel Seattle Airport, a winner of the Washington Lodging Association’s community service award, has made a committee to support the Genesis Project, a drop-in center that offers a safe haven for victims of prostitution and sex trafficking.

Radisson staff members have rolled up their sleeves to clean and paint the center and have collected clothing, toiletries and financial donations for the women who use the center. It also turns out in force in June for the Genesis Project’s Freedom Walk which raises funds and awareness about the issue of sex trafficking in the greater Puget Sound area.

The entire team is committed and excited to be involved in responsible business,” said Sanjay Mahajan, the Radisson Hotel Seattle Airport’s general manager.

Together, they have given back in a myriad of other ways, including supporting city tree plantings, volunteering for the Washington State Criminal Justice Training Commission’s “Chief for a Day” program, celebrating children who

have been diagnosed with a life-threatening or chronic medical conditions, gathering school supplies schools in need, and partnering with U.S. Marine Corps to collect unwrapped toys for their Toys for Tots program.

SpringHill Suites by Marriott and TownePlace by Marriott in Bellingham paired up to help Habitat for Humanity open a new store in Bellingham, which sells new and gently used furniture, appliances, housewares and building materials to raise money to construct homes. It turned out to help its annual “Spirit to Serve” Day, inspired by the Marriott community building initiative.

What’s good for your community is also good for your employees.

According to research from the University of Georgia’s Terry College of Business published in the Academy of Management Journal, employee volunteering is linked to greater workplace productivity and satisfaction.

“Overwhelmingly employees who volunteered gave more time and effort to their jobs, were more willing to help out their colleagues, talked more positively about their companies and were less likely to do detrimental things like cyberloaf or waste time on the job,” said Jessica Rodell, an assistant professor of management at UGA and author of the research.

The 2014 Millennial Impact Report by The Case Foundation underlines the value of offering opportunities to volunteer through the workplace. This study of Millennial employees and their preferences for company cause engagement found that more than 63 percent of female Millennials and 45 percent of males were influenced to accept a job at a company based on its involvement with social causes.

Nica Tovey, a Starbucks’ district manager, knows that volunteerism also helps employees expand their skill base as they build stronger connections to the communities in which they live.

“In a time where people are moving so fast, community service provides a chance to support others that may not be as fortunate while developing leadership skills and community ownership,” she said.

bers

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LESSONS IN

NO-TIPPING

By Paul Schlienz Photos by Lisa Ellefson

Your minimum wage is going up. How are you going to make it work?

This is the question restaurateurs have been asking themselves in Seattle, SeaTac and now Tacoma where local ordinances are pushing the minimum wage significantly higher than the state minimum wage. And with a statewide $13.50 an hour minimum wage initiative expected on the November ballot, it’s a question for the entire industry.

There is no one right answer, no tried and true rulebook to follow and no restaurant operations guru who can give you the one-size-fits-all formula. However, given the industry’s notoriously narrow profit margins, getting the balance right between wage increases for employees and increased costs to consumers is a must, not an option.

Fortunately, we have pioneers in the brave new world of higher wages who are learning what works best for their 16 │ warestaurant.org

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guests, their entire staff and their ability to generate a profit.

Some restaurants are switching from tipping to higher overall costs. Others are moving toward service charges instead of tips. Some have even tried service charges and gone back to tipping.

Regardless of the approach, a common thread that runs through these restaurant operators’ thinking is that changing their compensation models away from tipping creates an opportunity to address front- and back-of-house pay equity.

The Ninth Circuit’s tip pooling ruling in February, which bars “customarily non-tipped employees” from employer-backed tip pools, gives even greater impetus to reevaluate the tip model. (Learn about the implications of the ruling and the WRA and its co-plaintiffs’ petition to have the court review the decision at wra.cc/mag0516c).

Another thing these operators all have in common is that they put serious thought into their response to higher wages

4/20/2016 12:31:32 PM

before making their move. This, after all, is not a decision to be taken lightly.

“Be very careful and do your homework,” said Pamela Hinckley, CEO of Tom Douglas Restaurants, Seattle’s largest upscale restaurant group. “It’s very expensive if you don’t get it right. Before you decide what you’re going to do, run some different compensation models and see what impact higher wages will have. We want to make sure we get it right. That’s why we’re going slowly.”

SERVICE CHARGES

Tom Douglas Restaurants replaced gratuities with a 20 percent service charge at Dahlia Lounge, Palace Kitchen and The Carlile Room in February.

“We were hoping it would go well, and it has,” said Devony Boyle, human resources director at Tom Douglas Restaurants, when speaking on an HR panel at the 2016 Northwest Foodservice Show in March. “We have had very little negative feedback from our guests.”

As a result, Tom Douglas’ other high-end eateries also eliminated tipping in favor of service charges in mid-April.

“With the service charge model, the money goes directly to the company, so we are able to equitably distribute it rather than having our employees at the mercy of a tip,” said Hinckley. “Servers also get commissions, and the rest of the staff gets revenue sharing. This is a much more predictable compensation model for our employees.”

For Renée Erickson’s Seattle restaurants – The Whale Wins, The Walrus and the Carpenter, Barnacle, Bar Melusine,

Bateau, General Porpoise Coffee and Doughnuts – there were additional reasons the company moved to service charges after Seattle’s minimum wage increase.

“We had been wrestling with the issue of tipping for years and have reached a point where we are resolved to move away from tips,” said Jeremy Price, co-owner of Sea Creatures, the umbrella company for the Erickson restaurants. “We understand that our people deliver great service because they are professionals.”

He does not believe workers in the service industry need to be incentivized by tips to perform their jobs well. “The correlation between service quality and amount tipped is almost nonexistent,” he said. “Multiple peer-reviewed studies support this position. Compelling arguments can also be made that the practice of tipping has sexist, racist and xenophobic dimensions - on both sides of the exchange.”

As with Tom Douglas’ eateries, the Erickson restaurants also liked the amount of control an employer has over service charges versus no control at all with tipping.

“We reject the idea that our customers are best positioned to control the amount our employees are compensated,” said Price. “Service charge dollars are treated differently than tip dollars by the law. Service charge dollars can be distributed to our people as we see fit.”

Price and his colleagues also saw service charges as a way to encourage its best employees to stay with the company for the long haul.

“We believe in creating workplace environments where professionalism and careerism are encouraged and where

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mutual respect between our people and our guests is nurtured,” said Price. “After much consideration, we are convinced that tips don’t really fit with this goal. These concerns coincided with Affordable Care Act, the Seattle Minimum Wage Ordinance and legal rulings on the Fair Labor Standards Act to create a situation where moving away from tipping was absolutely necessary for us.”

So far, employees are generally happy with the new system.

“Our employees have either seen their wages stay the same, in the case of front-of-house workers, or increase, in the case of back-of-house workers,” said Price. “Employee reactions have ranged from ambivalent to elated, depending on their level of agreement with our rationale for changing the system and how their take home pay has been affected.”

There was also something else that sweetened the pie.

“It should be noted that we made the move away from tipping at the same time we began offering health insurance to all employees working 25 or more hours a week and a matching retirement savings plan for all employees working 20 or more hours a week,” Price added. “This certainly factors into our employees’ view of the service charge.”

And there was no rebellion from the guests.

“The vast majority of our customers do not care or have not noticed,” said Price. “The small minority that does have an opinion is overwhelmingly pro-service charge. We hear, ‘I

would have tipped more’ quite a bit. Many of our guests are familiar with service charges from their travels to other countries. Every now and again, we do get someone who disagrees with the policy. Generally, the objection is to the compulsory nature of the service charge. This has happened a handful of times in what is closing in on a full year.”

GRATUITY INCLUDED

Seattle’s famous seafood chain, Ivar’s, took a completely different route in response to the city’s minimum wage ordinance. Rather than follow the city’s phase-in schedule to reach $15/hour over four years, Ivar’s approach was to bring all employees at its full-service eateries in Seattle to $15 on April 1, 2015 by eliminating tipping, and it raised prices in order to do so.

That price increase at its Acres of Clams and Salmon House restaurants incorporates a moderate labor increase of 4 percent and well as a gratuity average of 17 percent based on the company’s historical guest data. On top of the $15 an hour wage, Ivar’s shares the increase in menu pricing with all hourly employees. So, hosts and hostesses, bussers, cooks, dishwashers, servers and bartenders all benefit.

“We saw Seattle’s $15 minimum wage law as an opportunity to right some of the serious discrepancies between the back-ofhouse and front-of-house,” said Bob Donegan, president of Ivar’s. “We asked ourselves if we could reallocate our revenue model and bring up everyone’s income, especially raising kitchen salaries. And it worked. By going to a tip inclusive

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“We’ve already seen a lot of restaurants in Seattle react with service charges – and we are still a few years out from a mandated $15 minimum wage for most operators,” said Price. “I expect restaurants in other communities will also experiment with service charges, higher menu prices and so on. Ultimately I think increased costs, in the form of a higher minimum wage in this case, will be passed on to customers in some way, shape or form.”

In fact, at least one restaurant that experimented with a service charge has gone back to tipping.

Mollusk, a new restaurant in Seattle’s South Lake Union district, recently replaced its 20 percent service charge with tipping and a 10 percent increase in menu prices that goes to the back-of-house.

Mollusk’s service charges had been equally split between front- and back-of-house, bringing the latter up from $15 to $18 an hour. Servers, bartenders and hosts, however, found they were making considerably less than they had in their previous jobs where tips were part of their wages.

model, we took all hourly employees to a minimum of $15 an hour immediately and put all the hourly staff on a revenue sharing system which distributes the funds so the entire team shares in the success of the restaurant.”

And how did Ivar’s employees respond?

“All of our employees are doing better under the new system,” said Donegan. “We now have 21 percent more revenue to share with our employees, and none of this new revenue goes to the company. We have only lost one server over this issue, and he has asked for his job back.”

One change Ivar’s did make after instituting its price increase was related to that tried and true American tradition of tipping.

“About two weeks after we took the tip line off of our checks, we added it back because guests were saying, ‘We get it. You’re taking full responsibility for your employees, but we still want to tip,” Patrick Yearout, Ivar’s director of recruiting and training, said at the 2016 Northwest Foodservice Show. “We put the tip line back on, saying ‘Tipping is not expected, but if you’d like to do so, here’s a line.’ ”

TRIAL AND ERROR

With minimum wage increases and other labor cost pressures, the restaurant model is in a period of significant change.

Mollusk owner Travis Kukull, who remains committed to ultimately eliminating tipping, puts the blame on South Lake Union’s growing pains due to construction and lack of foot traffic.

“I want it to work, and I think it’s a great idea and creates a better community atmosphere,” Kukull said of service charges in a Seattle Times interview. “But we’re just not in a position to make it work … until we’re slammed.”

The process of change, as Kukull discovered, can be confusing and often difficult. Careful planning and flexibility are essential, whatever you decide to do.

“When we switched to a $15-per-hour base wage for all workers, five of our 60 employees were making less than this amount when tips were considered into their hourly rate - we have always been a tip pooling and tip sharing house frontto-back,” said Price. “While our labor costs are higher now, our service charge has helped us to mitigate these increases substantially. I would encourage other restaurants to run the numbers and to speak with their accountant.”

Ultimately, it is also a good time for hospitality owners and operators to start paying closer attention to the political arena where decisions over employer mandates and higher labor costs are being made.

“Restaurant operators will confront government actions more often,” said Donegan. “It is very important to be involved in the process. You can’t complain about what government does if you are not involved in the process.” 

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Your Restaurant Customer Tableservice Trends Customers More Plentiful As the economy continues to improve, tableservice operators are finding it somewhat easier to fill seats, compared to recent years. When asked in December 2015, roughly seven in 10 tableservice operators said attracting new customers is a significant or moderate challenge for their business. Flash back to 2013, more than nine in 10 tableservice operators said this was a significant or moderate challenge for their businesses.

Operators are also reporting an easier time getting patrons to return to their restaurants. Thirty-three percent of finedining operators and roughly four in 10 family-dining and casual-dining operators say bringing back repeat customers is a significant or moderate challenge.

This was down across the board from 2013, particularly for family-dining and casual-dining operators.

Importance of Repeat Customers With repeat customers representing a median of 60 percent of sales for tableservice operators, finding ways to bring them back is critical for creating a healthy business. In 2015, operators were generally successful in this endeavor.

Thirty-five percent of family-dining operators say repeat customers were a larger proportion of their sales in 2015 than they were in 2014, while just five percent say they represented a smaller share. Among casual-dining and fine-dining operators, three in 10 say repeat customers comprised a larger share of their business in 2015.

Repeat Customers as a Percent of Sales in 2015, Compared to 2014 Family dining Casual dining Fine dining

35% 5% 29% 7% 32% 5%

Larger amount of sales About the same amount of sales Smaller amount of sales

61%

65%

63%

Food Matters Customers have different wants and needs when it comes to choosing a tableservice restaurant, so the National Restaurant Association looked at how food and menu attributes stacked up among consumers.

Consumers’ number-one priority when they pick a tableservice restaurant is the opportunity to order their favorite food. Eighty-four percent of adults say it is important that some of their favorite food items are on the menu, a sentiment that is shared among consumers across all demographic groups.

Many consumers also look to restaurants for new culinary experiences. Sixty-one percent of adults say an important factor is the chance to have innovative or creative food they can’t make at home, while 51 percent want food they haven’t tried before. Younger consumers are more likely to place an emphasis on those attributes when they choose a tableservice restaurant.

The availability of healthy menu items is also a top draw for consumers, particularly among women and older adults.

Fifty-seven percent of consumers say locally sourced food is important to them, while 42 percent are drawn to tableservice restaurants that offer organic or environmentally friendly food.

Attributes Consumers Say Are Important When Choosing a Tableservice Restaurant All Adults

Some favorite food items on menu

84%

Healthy menu items

69%

Innovative or creative food

61%

Locally sourced food

57%

Food they haven’t tried before

51%

Organic/environmentally friendly food

42%

Attracting Customers Familiarity is important to many consumers when it comes to choosing a tableservice restaurant. Eighty-two percent of adults say they often pick a tableservice restaurant that they have been to in the past and liked. Women and older adults were the most likely to rate this as an important factor in their decision-making process.

Source: 2016 Restaurant Industry Forecast, National Restaurant Association 20 │ warestaurant.org

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On the other hand, many consumers also like to try new places. Fifty-eight percent of adults say an important attribute in choosing a tableservice restaurant is that it is one they haven’t been to before.

Something Old, Something New Important attributes when choosing a restaurant Restaurant that they’ve been to and liked

Restaurant that they haven’t been to before

All adults

82%

58%

Men

75%

55%

Women

88%

60%

Age 18–34

77%

65%

Age 35–44

78%

52%

Age 45–54

85%

58%

Age 55–64

82%

57%

Age 65+

89%

51%

Limited Service Trends Traffic Pressures Easing While challenges remain, limited-service operators overall are reporting an easier time building customer traffic. In December 2015, slightly more than one-half of limited-service operators said attracting new customers is a “significant” or “moderate” challenge for their business. Back in 2013, 94 percent of quick-service operators and 88 percent of fast-casual operators said this was a challenge for their business.

The story is similar when it comes to repeat business. Only about one-third of limited-service operators say bringing back repeat customers is a “significant” or “moderate” challenge for their business, which is less than half of the proportion who reported similarly in 2013.

This is likely why operators reported that repeat business was on the rise in 2015. Roughly four in 10 limited-service operators say repeat customers represented a larger share of their business in 2015 than they did in 2014, while only a small proportion say they were a smaller amount of sales.

Customer Demographics Roughly two-thirds of operators in each of the three tableservice segments say 35-to-54-year-olds are the most important demographic group in their current customer base.

Looking ahead over the next five years, a majority of operators in each tableservice segment still plan to focus on growing the 35-to-54-year-old demographic group.

However, 39 percent of casual-dining operators and 34 percent of family-dining operators will try to expand the under-35-year-old cohort.

Target Demographic Groups in Tableservice Operators’ Customer Base

Been There Before Familiarity is an important attribute in making a limitedservice restaurant choice, according to consumers. Eighty-one percent of adults say a key factor in choosing a limited-service restaurant is that it’s a restaurant that they have been to in the past and liked.

A somewhat lower 50 percent of adults—including 62 percent of Millennials—say an important consideration is that it’s a restaurant that they haven’t been to before.

6 in 10 limited-service operators say consumers under the age of 35 will be their most important demographic to grow in the next five years Target Demographic Groups in Limited-Service Operators’ Customer Base

Most important demographic group in current customer base Family dining

Casual dining

Fine dining

Less than 35

13%

18%

13%

Age 35–54

65%

69%

Age 55+

21%

13%

Most important demographic group in current customer base Quickservice

Fast Casual

Less than 35

38%

40%

66%

Age 35–54

53%

51%

21%

Age 55+

9%

8%

Most important demographic group to focus on growing within the customer base in the next five years

Most important demographic group to focus on growing within the customer base in the next five years

Less than 35

34%

39%

25%

Less than 35

58%

60%

Age 35–54

55%

55%

68%

Age 35–54

35%

36%

Age 55+

11%

7%

7%

Age 55+

6%

4% May 2016 │ 21

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LODGING

FULL SERVICE

QUICK SERVICE

Is Your Website Up to Snuff?

By Alina Day

92% of consumers search for restaurants on a web browser and 75% choose where to dine based on the search results.

–Constant Contact

It goes without saying that we are in the digital information age. Consumers look online for everything these days, from finding a restaurant to meet a specific dietary need to carefully scoping out a property before booking a room night. That’s why your website, the front line of your online presence, is key to your success. But is it doing its job of driving customers to your business? If it isn’t, here are some things to consider.

Can your website pass the test?

As soon as customers land on your website, they should be able to find the information they’re looking for in 30 seconds or less. This is what we call the 30-second test. For example, if a customer lands on your website and is looking for your location, they should be able to find your address in 30 seconds. Should they be successful, their experience with your business has started off great, and the probability they’ll stay on the site or purchase a product increases. Should they be unsuccessful, they will get frustrated (think bad experience) and most likely leave the site.

Is it responsive?

“Responsive” is a new term for mobile-friendly, and a responsive website looks good and performs correctly on all internet browsers and mobile devices, including on smartphones and tablets. It’s a good idea to check your website on your multiple devices since oftentimes a website will look stellar on a desktop computer or laptop, but when brought up on a phone or tablet it becomes a nightmare. According to a 2015 study done by Pew Research Center, 64 percent of American adults and 85 percent of young adults own smartphones and 89 percent (97 percent for young adults) use them to access the internet. Google searches now will also prioritize responsive websites, so make sure your websites are just as easy to use on mobile devices as they are on computers.

The importance of accessibility

Accessibility means customers can get information from your website without images, videos and audio, which is

important for visitors with vision or hearing disabilities. As a place of public accommodation, your guestfacing technology might be subject to Americans with Disabilities Act accessibility requirements. Although the law is ambiguous when it comes to websites and the Justice Department has so far provided little information on how the ADA applies to website accessibility, it has entered into several settlements with businesses over website and app accessibility.

There are, however, voluntary guidelines developed by the World Wide Web Consortium to make the web accessible to people with disabilities, and these are important to consider. Many content management systems now come with features that address some of these guidelines. For example, there is an alt text that allows you to add a description of the image in text format. If a customer is using the net in a text-only format, he or she can still “see” the image through its description. Another smart practice is to use video with captions or closed captioning. For more information on ways to make your site accessible, visit wra.cc/mag0516b .

Housekeeping

Auditing a website is a lot like spring cleaning or auditing your taxes, except a lot less stressful. Ask someone who hasn’t worked on the website

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WHAT MAKES A COMPELLING SITE?

Your business website doesn’t need to be fancy, but it should reflect the character of your business. Now there are plenty of affordable professional web developers out there, or you can DIY it using WordPress, Webs, Weebly or Wix, to name a few free web template companies. And even if you have a corporate website through a franchise, you may consider having an independent site for greater personalization.

Here are some components you want to be sure to include:

Your hotel website is the most influential factor in the booking decision-making process.

–Fuel Travel’s 2016 Travel Study

previously to audit the site for you.

They’re a lot less likely to miss or skim over information (especially since you probably know the site like the back of your hand). Auditing means clicking on every single page and link of the site, and reading all information from beginning to end. Basically they’re like an editor looking for anything that doesn’t work, fit or is hard to find on the site such as broken links/images or out of date information. Best practice is to do a website audit at least every six months.

Getting more from your website

When you feel ready, there is the more advanced side of website optimization. This includes search engine optimization (SEO) and Google Analytics.

Google Analytics allows you to learn more about who is visiting your website, how they’re getting there and what they’re doing while on the site. This robust tool goes very well with SEO, which is the practice of ensuring customers can find your site when they search for it on any search engine. 

WebsiteBestPractices_page22_23.indd 23

GREAT PHOTOS

High resolution photos make your business look amazing and draw customers in. They are also the perfect way to let customers know what to expect. Photos of the outside location are particularly important, as they can help customers find your business, especially if located in a city block or surrounded by other businesses. One of the great things about the internet, is you can also use your guests’ photos on your site (but remember to ask permission first) or take the photos yourself.

LOCATION AND CONTACT INFORMATION

Include your address and for restaurants, hours of operation. You can even add your location in relation to other businesses so customers can find your business from the road. If customers have a question, comment or concern, they need a way to contact you. Have a very visible place (even better, a couple of places) on your website with your phone number and email.

SOCIAL LINKS

Having links to your social media on your website gives customers an avenue of interacting directly with your business. Social links can be nonintrusive and simply exist at the top and/or bottom of a page. By keeping your social media up to date, you can also drive customers back to your business or website.

SPECIALS, COUPONS, & DISCOUNTS

Do you offer a special rate for first-time customers or customers who haven’t visited in a while? A special holiday package? If you’re offering something special, make it very visible and list out exactly what you’re offering.

LODGING-SPECIFIC SITES:

    

Types of rooms and rates List of amenities List of nearby businesses Things to do in your area Trip Advisor ratings or links to other review sites

RESTAURANT-SPECIFIC SITES:

 Menu  Gluten-free or allergy-free menu items, if available  Reviews or links to Yelp, Zomato or other review sites

ADVANCED FEATURES SUCH AS ONLINE RESERVATIONS OR ONLINE ORDERING

For most lodging establishments, online reservations are a given and many restaurants are now also using systems that allow for online reservations or ordering. If you do decide to make your customers’ lives easier with advance online options that include accepting payment or collecting information, be sure to take cybersecurity seriously. Learn more on data breaches at wra.cc/wamag0516a.

May 2016 │ 23

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LODGING

FULL SERVICE

QUICK SERVICE

Making Dreams Reality

By Lyle Hildahl, Director, Washington Restaurant Association Education Foundation

When I visit ProStart schools around the state and ask students what their dream job would be, many say they hope to own their own business someday. The list of what I’ve heard is very diverse: pastry shop, coffee shop, catering business, fine dining restaurant and even a chain of seafood restaurants. It’s great to dream, but the reality sinks in for many when they discover just how hard it is to own and operate a successful restaurant.

I was introduced to Torrey Le at the 2016 Northwest Foodservice Show. Cathy Fox, one of our area coordinators, said I had to check out Torrey’s restaurant. My first thought was he was awfully young to own a restaurant.

He’s still in his twenties and he already owns Crawfish King in Seattle’s International District.

Recently, I had the chance to enjoy lunch and conversation with Torrey, Cathy and Monica Hollar, another WRA/ WLA area coordinator. We ate great food and heard about Torrey’s path from ProStart student to restaurant ownership.

Torrey went on to study at Portland’s Western Culinary Institute, graduating in 2006. He cooked and bartended at a variety of restaurants until May 2015, when Torrey became the proud owner of Crawfish King. His friend Tai is the banquet captain at the Sheraton in Seattle, and Torrey helps out from time to time on the larger events.

Chris is in New York City, and his is a story for a future issue.

I asked Torrey if he was living the dream, and he said he actually has bigger dreams. He hopes to create a plaza of businesses that helps young entrepreneurs open their own businesses. The plaza would include a martial arts studio, photography studio and a machine and auto shop, to name a few. Young people could come and intern at these businesses and learn about developing business plans to launch their own enterprise someday. I truly believe that whatever Torrey puts his mind to, he’ll accomplish.

Torrey doesn’t have turnover in his restaurant. He cross trains, has high expectations of his team and takes very As a sophomore at Roosevelt High School, Torrey was good care of his team members. One of his strategies is the struggling, and the thought of graduating from high school Switch It Up program. On certain days, the back-of-thewasn’t looking real promising. Grades and motivation were house team switches with the front-of-the-house team. They lacking. His buddies, Chris and Tai, convinced him to try gain a deep appreciation for the different jobs and tasks a ProStart class. If nothing more, they would get good their colleagues perform and the impact each one has on food to eat. Fast forward, Torrey and his friends not only the total guest experience. graduated, they graduated with honors. ProStart gave them the motivation to work hard and enjoy the process because Hospitality is clearly an industry of opportunity. Just ask they had found a career that excited them.

Torrey.

24 │ warestaurant.org

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INDUSTRY CALENDAR May/June Training May 23

ServSafe® Manager, Tacoma

June 7

ServSafe® Manager, Seattle

June 14

ServSafe® Manager, Kent

June 16

ServSafe® Manager, Tacoma

June 20

ServSafe® Manager, Everett

Meetings May 9

WSCA Board Meeting

May 10

Seattle Hotel Association Board Meeting

May 10

Spokane Chapter Board Meeting

May 17

Spokane Hotel/Motel Association Meeting

June 7

Spokane Golf Tournament

June 7

Executive Committee Monthly Meeting

June 14

Seattle Hotel Association Board Meeting

June 14

Board Development Conference Call

June 21

Spokane Hotel/Motel Association Meeting

Events June 8

State of the Industry Forum @ Seattle Good Will

NEW HOSPITALITY MEMBERS 7 Bridges Restaurant, Colfax Absinthe, Seattle Backwoods Brewing Company, Carson Bastion Brewing Company, Anacortes CC Attle’s, Seattle Cooper Valentina LLC, Shoreline Damn the Weather, Seattle Davenport Grand Hotel, The, Spokane Davenport Lusso, The, Spokane Econo Lodge Federal Way, Federal Way Griffin & Wells Café, Enumclaw Hellbent Brewing Company, Seattle Hundred North, Bellingham Jack’s BBQ, Seattle Jimmy’s 94th Ave Pub, Gig Harbor Little Si Retaurant & Lounge, North Bend Lynnwood Bowl & Skate, Lynnwood Remedy, Spokane Rogue Holdings, Eastsound Roses Bakery Café, Eastsound Simon Family Enterpirses, Tumwater Sora Sushi, Kelso Subway – Broadway, Tacoma Sunset Grill, Gig Harbor Taradise Café, Seattle Trails End Taphouse & Restaurant, Snohomish Watershed Pub & Kitchen, Seattle

NEW ALLIED MEMBERS Express Construction Company Inc. Eric Featherstone efeatherstone@expressconstruction.net 355 118th Ave SE Bellevue, WA 98005-3554 206.230.8500 www.expressconstruction.net

Tiger Sheep LLC Austin Krol 14025 SW Farmington Rd Ste 360 Beaverton, OR 97005-2512 844.323.2673 austin.krol@tiger-sheep.com www.tiger-sheep.com

Northwest Restaurant Services Kyle Wilkins 14910 Aurora Avenue North Shoreline, WA 98133-6528 206.362.4114 www.nwrestaurantservices.com

Victor Jessica Gumieny 69 North Locust St Lititz, PA 17543-1714 717.626.2125 jgumieny@epiccreative.com www.victorpest.com

We are a commercial kitchen equipment service company providing services to restaurants, hospitals, schools, churches and more in the Puget sound area. We offer service, repairs, parts, installation, and preventative maintenance for commercial refrigeration, Gas and electric cooking equipment, ice machines, dishwashers etc. We are also factory certified and trained to perform warranty repairs and installations for many major manufacturers.

Scully Agency-Farmers Insurance John Scully 603 Central Ave N Kent, WA 98032-4510 john@scullyagency.com 253.277.8922 http://www.farmersinsurance.com/jscully We are a local insurance agency who have expertise in the restaurant and bar industry. We believe in taylor writing the policy to meet the needs of the client.

Taste Envy by Lost Luggage Nadine Brown 3849c 1st Ave S Seattle, WA 98134-2203 Nadine@lost luggage.com 206.728.6044 www.taste envy.com We believe menus are an integral part of the dining experiance and should be viewed as the presentation the story of who you are and what your customer can expect. Let us help you create the presentation your food deserves.

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The kill alert system uses wireless technology to notify users after the kill via test message or email. Users can also track and monitor the performance of the system online. Learn more about the kill alert remote notification system package options and system specifications at http://www.victorpest.com/victor kill alert.

Washington State Potato Commission Ryan Holterhoff 108 S Interlake Rd Moses Lake, WA 98837-2950 509.765.8845 rholterhoff@potatoes.com http://www.potatoes.com/ Washington state is home to the world’s most productive potato fields and Washington potatoes are enhancing our meals, our culture, and our economy.

From Russets to reds to fingerlings and more, Washington potatoes provide consumers around the globe one of the most versatile, flavorful, and nutritious dishes. Learn more at www.potatoes.com.

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“EXPECT EXCELLENCE”

It’s not rocket science.

OTHERS

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Take advantage of exclusive health care pricing and solutions for Washington Restaurant Association (WRA) members Contact your insurance broker today and ask for your WRA member UnitedHealthcare quote, or visit uhctogether.com/wra.

For more information, contact Clinton Wolf at (312) 348-7064 or clinton_v_wolf@uhg.com.

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©2015 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates.

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H STATE OF THE INDUSTRY

JUNE 8, 2016 #WRANETWORKING16

We’re putting together a timely and highly informative program for this year’s forum.

Topics will include an update on the challenges facing our industry and a look at this year’s election environment, restrictive scheduling and tip pooling.

JUNE 8 FROM 7:30AM – 12:00PM GOODWILL JOB TRAINING & EDUCATION CENTER Suggested Donation: $20 per person REGISTER HERE: wraef.org/events/state-of-the-industry-forum

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Healthc

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Are you lying awake at night wondering if you are compliant with all of the healthcare laws? Let the WRA help you sleep better!

The Washington Restaurant Association has added “HEALTHCARE SOLUTIONS” to our program offerings. To find out what works best for your business, visit: wra.cc/hcsolutions to walk through our healthcare options for your business.

Or, ask your broker. Don’t have a broker? Call or email and I will set you up with an expert in our industry!

Contact Stephanie Conway for more information at 360.581.5788 or email her at stephaniec@warestaurant.org.

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Ask the Expert | Restaurant Profit Coach Build a Culture of Speed for Lasting Results

By Rick Braa, CHAE

Q:

We’ve always had one or two people that were a little slower as performers than the others on staff. It seems lately slowness has become more cultural and normal, and we seem to be slowing down not only in performance but also in top-line sales.

What can I do to reverse this?

A:

There is one word that sums up a great staff— speed. It’s a result of clear expectations and a sign of engagement as well as natural ability and hustle. Speed is critical for building and maintaining sales and will build naturally as knowledge, focus and precision increase with measurement and feedback. An increase in speed will result in major benefits to the culture and sales.

Speed builds repeat visits. When guests can count on the restaurant to get them in and out at whatever pace they desire, guests return more often, especially at lunch. Speed builds check average. When the team is fast, there is plenty of time to spend at the table refilling drinks, offering appetizers and desserts, and taking the time to describe special items. Speed builds trust and reputation. The most potent marketing strategy outside your four walls is word of mouth advertising (WoM). WoM advertising is considered trustworthy in more than 84 percent of recommendations.

(Yes, even Yelp has a high level of trust.) When guests feel positive about a restaurant, they freely share information about their experiences. Hitting all the touch points from greet to exit because the team is fast enough provides guests something positive to share. Lastly, speed puts the guest in charge. The more disposable time guests have, the freer they feel during their experience. Guests can craft whatever length of an experience they desire and enjoy genuine hospitality.

Measurement is the gateway to ensuring employees are functioning at top speed and guests are enjoying the best experience possible. Key performance indicators (KPIs) are important data points that measure success in the ultra-important area of speed, and instead of set standards, consider keeping the following KPIs in front of your employees: KPIs by department: These include food and beverage sales mix, menu mix by major category e.g. entrees, desserts, appetizers by meal period, guest counts, overall guest check

average, comps for poor food/service, plates and sales per labor hour and Yelp scores. (Each star increase or decrease will result in a movement of sales between five and nine percent according to a Harvard study.)

KPIs for the kitchen by individual and total: Timed prep lists, ticket times, plates per labor hour, kitchen prime cost (food cost plus kitchen labor cost), comps by reason and waste.

KPIs for the front of the house by individual and total: Time to seat, time to place order, time to drink delivery (bartender ticket times), sales mix percentage by category, number of items sold per guest count, guest check average, table turnover times, average wait time, sales per labor hour, kitchen prime cost (food cost plus kitchen labor cost), comps by reason and beverage waste.

In using KPIs as data points, make sure you have performance meetings focused on coaching and development and discuss the effort needed to reach individual goals. Post and celebrate milestones met by the team and by individuals and raise the bar on performance.

Insist all employees meet their potential and performance expectations. By keeping to data and measuring against expected standards, employees will rise to the challenge and improve or select out of employment. Either way, the culture will benefit as those excelling will provide the type of hustle guests enjoy and celebrate and share with their friends. Once guests start frequently sharing outside your four walls, word of mouth marketing will deliver top-line sales increases to attract the best and brightest staff. The cycle will repeat itself, providing explosive growth for your business and employees.

For more information on improving profitability and driving performance, 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.

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Orcas Island, WA

LOCATION:

18 Orcas Hill Road, Orcas, WA 98280 (Strategically located in Orcas Village within a few easy steps and overlooking the Orcas Island Ferry Landing)

SALES PRICE:

$1,795,000 (Includes Land, Building, & Business) Prefers Cashout (Possible Seller Financing for Credit Buyers)

YEAR BUILT:

1904 (Significantly Remodeled Over the Years)

LOT AREA:

23,522 Square Feet (.54 Acres) per San Juan County records

BUILDING SIZE:

11,001 SF (1st: 3,514 SF + 2nd: 2,900 SF + 3rd: 1,188 SF + Decks: 3,399 SF)

GROSS REVENUES:

$1,151,324 (2014) – (Approx. Café: 1/3 + Bistro: 1/3 + Hotel 1/3)

The Orcas Hotel is a charming Victorian-style Bed & Breakfast that first opened its doors to guests in 1904. Nestled in the heart of the San Juan Islands, it offers breath-taking views, delicious food and a lively atmosphere. Experience friendly service and the peaceful atmosphere of Orcas Island from the Inn’s premium accommodations of 12 spacious Guest Rooms with tasteful decor that can sleep up to 32 people. Revenues are shared evenly between the Orcas Café (breakfast & lunch); Octavia’s Bistro (dinner & lounge); and hotel accommodations. Receptions and parties can serve up to 150 guests – perfect for wedding packages. The strategic location is ideal for travelers by foot, bike, or car. Whale watching and kayak trips are all within walking distance. Please call for a tour.

Visit Website: www.orcashotel.com

P EIZER

COMMERCIAL REAL ESTATE, L.L.C.

MARK PEIZER

E RS E EV E! R E ID SE S

Principal • Broker • MBA

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