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Your Voice for the Hospitality Industry.
A letter from the CEO.............1&10A letter from our Chair.....................3HeinSight............................................4ProStart..............................................7Calendar of Events...........................82013 Industry Growth...................10Welcome New Members...............11
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Table of Contents
by qsrmagazine.com
News &Insights
Are you ready for emv?
2013Submissions
You are invited to share your expertise and perspective. To
submit articles or other editorial input, please
contact Lisa Graham at [email protected] or
316.267.8383.
AdvertisingGet your products and
services noticed by industry decision-makers
through advertising. Kansas Restaurant and Hospitality Association
News & Insights is distributed to all
members four times a year, this maximizes
your advertising exposure to the largest
possible audience. For information on advertising
opportunities, please contact Lisa Graham at
[email protected] or 316.267.8383.
MembershipFor more information
about your membership or to renew your
membership contact ouroffice at [email protected]
or 316.267.8383 or log on to www.krha.org.
Your voice for the hospitality industry
Though 2013 has just begun, restaurant operators should keep at least one eye on 2015, when new credit card standards will begin to reshape how most customers pay for goods and services.
By October 2015, all restaurants and other merchants will be subjected to new Europay, Mastercard, and Visa (EMV) standards, which reflect a shift from magnetic-stripe credit cards to chip-and-pin cards. Considered safer and widely used across Europe and other nations, the chip-based cards require insertion of the card into a terminal throughout the entire transaction.
“That’s going to be a change in behavior that restaurants and retailers are going to have to adapt to, as well as consumers,” says Mike English, executive director of product development for Heartland Payment Systems, which processes about one in seven restaurant industry transactions.
EMV compliance is required for credit card acquirers and processors, though it’s not mandated for merchants and processors. But merchants who don’t meet compliance by October 2015 will assume liability for fraudulent purchases—a shift that is poised to drive many to adopt the new standards and avoid the risk.
English says the change does come with a share of good news for operators. First, the chip-based cards are less susceptible to fraud. U.S. adoption will also allow for increased interoperability between domestic and international markets as things move to a more global credit card standard.
“The U.S. is the last bastion of the [magnetic] stripe,” English says. “Every other country and every other continent, with the exception of Antarctica, has moved over to EMV.”
The shift means restaurants across the country will have to review their point-of-sale systems, including in-store hardware and software. The transition could prove easier for small operations, which may be able to move to EMV by simply adding a new external pin pad. But the larger quick-serve chains will likely have to invest heavily as they look to upgrade thousands of terminals and systems.
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Adam MillsPresident & [email protected]
Neeley CarlsonVice President, Education & Training
Tina CoxVice President, Risk Management
Sheila ThomasVice President, Finance
Bob ChambersMember Services Representative
Karie BellAccount Manager
Dave BelvinLoss Control Manager
Rich EwenMember Services Representative
Lisa GrahamMarketing & Communications Manager
Christine Hanaka Account Manager
Karen Hrdlicka Claims Specialist
Hannah NighswongerMarketing Representative
Jeff RichardsMember Services Representative
Anna SadlerAccounting Assistant
Shannon Wilkinson Accounting [email protected]
Ron & Julie HeinLegislative [email protected]
by Adam Mills, KRHA President and CEO
your association equals advocacy
KRHA Staff
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Frequently while traveling, waiting on an elevator, trying to get into a crowded restaurant, or meeting new people at kid’s activities I get the difficult question…”So, where do you work?” or “What do you do?” To which I reply, have you got a few minutes? You see, it’s not really that our business is so complex it can’t be explained but rather there are just very few people who truly understand the workings of Government and the meaning of the word Advocacy.
By definition Advocacy means the practice of supporting someone to make their voice heard. In the modern world of politics Advocacy is so much more. I have read that years ago strong advocacy meant you had a lobbyist with an expense account. As you can probably imagine that is not the case today. Special interest groups are using mobile technology and social media to distribute their messaging. With a society that is quick to believe anything in print and often does not research the facts, perception can be skewed into reality. Don’t forget, voters elect leaders who come from that Society and there is often a huge stream of misinformation that fuels the fire of distrust, dissatisfaction and in some cases disdain! Bottom line is this, a strong Association has never been more important than it is today.
Advocacy has 3 main components or legs, if you will. An effective lobby that works for you at all levels of government, a strong PAC that works to promote candidates for office who are going to support our industry, and an accredited Educational Foundation with a meaningful and engaging messaging campaign. KRHA is using these components to promote industry. When it comes to advocacy we need to lead the front with an engaged membership that is pushing us forward.
YourHospitalityBusinessHOSPITALITY
I n s u r a n c e S e r v i c e s
Risk
Man
agement Workforce Developm
ent
Advocacy
Protecting your business from every angle
Your Voice for the Hospitality Industry.Kansas Restaurant and Hospitality News & Insights is a quarterly publication for members and industry partners. If you have questions about your membership or would like additional information about benefits, please contact KRHA at 316.267.8383 or 800.369.6787.
A letter FromOur Chairby John Arnold, KRHA Chair &Proprietor Redrock Canyon Grill
Benefits of MembershipThe Kansas Restaurant & Hospitality Association is dedicated to helping members operate with greater ease, efficiency and savings. Member participants save on their bottom line each year by taking full advantage of KRHA’s many member benefits.
Contact us for more information at 800.369.6787KRHA Self Insurance Fund• Workers’ Compensation
Hospitality Insurance Services• Property & Liability• Health Insurance Programs• Liquor Liability• Trade Name Restoration• Employment Practices Liability• And much more...
Some of our providers:
Heartland Payment Systems• Credit Card Processing
ServSafe• Food Handling and Alcohol Server Training
National Restaurant Association• Dual membership with NRA included with KRHA retail membership
BMI, ASCAP, SESAC• Discounted Music Liscensing
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The Kansas Restaurant and Hospitality Association is starting the spring season on a tremendously positive note. For this, I would like to offer heartfelt congratulations. The beginning of 2013 was highly successful. In addition, over 90% of business owners agree, the favorable weather conditions of the coming months will bring an even bigger increase in business.
A few successes to celebrate:
•The national level of unemployment is hovering around 7.7/7.8%. The state of Kansas has published our unemployment rate at 5.4%; which is down 1%.
•Another win for the restaurant and small business industry was the supreme court ruling that overturned New York City’s Mayor Bloomberg’s plan to prohibit the sale of sugary beverages over 16 ounces in size. We are still able to regulate our own commerce.
•Cell phone applications for the restaurant and hotel industries are on the rise. The technology in “apps” has made it possible to order pizza in three phone touches and secure a luxurious hotel room with a few presses of the screen. Smart phones are driving sales.
Some parts of Kansas are going to be fighting against the high gas prices, government automatic cutbacks, and income reduction. However, our optimism based on success is rampant.
Our industry, as a whole, is growing. This growth is exciting to me and all our members!
John Arnold KRHA ChairProprietor Redrock Canyon Grill
HOSPITALITYI n s u r a n c e S e r v i c e s
krha: sTEPPED uP pOLITICAL & lEGISLATIVE iMPACTby Ron Hein, KRHA Legislative Counsel with Hein Law Firm, Chartered
After considerable and involved participation in the political process in 2012, the Kansas Restaurant and Hospitality Association continues its stepped up efforts regarding legislative activity. Although significant improvements were made in the alcohol laws during the 2012 Legislative Session, the current 2013 Legislative Session is seeing continued KRHA impact on the governmental process.
Alcohol bills involving restaurant sampling/tasting authority, use of pitchers for several non-beer drinks, improvements to laws governing drinking establishment employees, and utilization of drink coupons in lodging establishments are alive and moving through the legislative process. In addition, the KRHA has been working with the Division of Alcoholic Beverage Control of the Kansas Department of Revenue to address fusion drinks, catering issues, and other issues favorable to the industry that can be addressed administratively.
Beyond the alcohol legislation, the KRHA is also seeing success with a bill which preempts local units of government from mandating onerous wage and paid leave requirements on businesses. The KRHA anticipates favorable action on this legislation as well.
The KRHA has also been active in workers compensation, unemployment insurance, and immigration reform legislation.
The restaurant, lodging and hospitality industries in Kansas provide an economic boom to the state and employ a large number of citizens. These industries are only as strong as their membership, and the dedicated effort and hard work of a number of individuals, including the Board of Directors of the Kansas Restaurant and Hospitality Association, the staff of the KRHA, and the lobbying team, has resulted in significant strides being made to impact legislative policy in the state. As with any association, the ability of the association to grow its membership, to expand its dues paying members, to increase its contributions to the association and to the political action committee of the association will help determine if the KRHA is able to expand its effectiveness in the future. In addition, efforts continue to expand the presence of the industries at the national level so as to impact federal legislation as well.
It is imperative that each member of the Association encourage colleagues in the industry to consider joining the KRHA. Please reach out to your individual friends, your business colleagues, and others who may not be members of the association. If each member of the association could make just one outreach effort, the ability of the association to expand its influence, impact, strength, and success would be greatly increased. There is strength in numbers, and the KRHA has the ability to be the strongest association in the state, if our members are willing to reach out to others.4
Allied Member’sGoods & Services
Arcadian Inc.913.381.0505
Arcadianevents.com
Brooks Grease Service316.721.6700
Constellation Energy316.269.9802
Darling International, Inc.913.321.9328darlingii.com
falls city Merc. Co., Inc.402.245.2716
fishbowl, Inc.703.836.3421
fishbowl.com
General Parts, LLC816.421.5400
generalparts.com
Hockenberg’s Food Service Equipment913.491.4999
hockenbergs.com
Kansas Logos, Inc.785.272.1771
kansas.interstatelogos.com
Muckenthaler, Inc.800.279.6825
muckenthaler.com
Party Personnel, Inc.913.451.0218
partypersonnelks.com
Simplexgrinnell316.686.6363
simplexgrinnell.com
visit topeka800.235.1030
visittopeka.com
Call Steve Fischer, Certi�ed Business Intermediary at316-262-8722 s�[email protected]
Member KRHAwww.vrbbplains.com
Thinking AboutSelling YourRestaurant?
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An Effective LobbyKRHA enlists the services of the Hein Law Firm in Topeka to lobby the State Legislature for our industry year round, not just during session. In addition, KRHA staff spends countless hours working with the regulatory departments to solve problems, answer questions, and provide guidance to our members whether the issues is tax, food safety, or licensing and inspections. KRHA also involves itself in local issues when requested by members in that community. By teaming with the National Restaurant Association, it also means we have one of the top lobbies in Washington DC working every day to advocate for all businesses large or small.
Strong PACWhat is a PAC and why is it important can best be explained like this. Have you ever had a discussion with someone and realized that it didn’t matter how convincing of an argument, how much more educated on a topic, or how hard you tried you were not going to reach them. Without a Strong PAC in place, your lobby may be fighting an uphill battle getting the message across to an unfriendly Legislature. It’s good to know that KRHA was able to raise and contribute a record high amount for the 2012 election. This led to 80% of the candidates receiving our PAC contributions winning their elections.
Education & MessagingAny organization or industry must offer first class training and education in an effort to advance industry initiatives and grow the value in the public perception. If you wish to elevate the industry you must first educate its workforce and then educate the public. KRHA and the KRHAEF serve the membership by offering the most accepted training and industry recognized certification programs called ServSafe Food and ServSafe Alcohol Safety Training. We also educate the future leaders of industry through the ProStart School to Career programs. Our industry is one of opportunity and each of us has the responsibility to tell that story. Recently the Wichita Eagle called to get a quote from me regarding why our industry pays BELOW minimum wage to such a high percentage of its workforce. I was surprised to find out that the author had no idea how server tip credit worked or that all employers were required to pay at least minimum wage. If a server’s tips didn’t take them over the threshold, it was the employer who was required to make up the difference. I then made sure to remind him that most servers make
considerably more than minimum wage and love working in industry because of the flexibility of the hours. In short, Education and Positive Messaging create the backdrop for how our issues are going to be viewed in both the Legislature and the court of public opinion.
As I write this article we are working several issues in the 2013 Legislature, we hosted the 2013 Kansas ProStart Invitational featuring 100 students from KS High Schools, and are preparing for the PAC Golf Tournament coming up May 13th at Firekeeper Golf Course in Mayetta. Lobby, PAC, Education…..ADVOCACY!
Yours Truly,
Adam R. MillsPresident & CEO
Endorsed by
40+ State Lodging and Restaurant Associations
With Heartland, you get the solutions you need to help your business improve and grow. Discover the peace of mind that comes with knowledgeable resources, industry-leading security and clear communication from a company that cares as much about the success of your business as you do.
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by Neeley Carlson, Vice President Education & Training
The Kansas ProStart Invitational provides students the opportunity to showcase skills learned through the ProStart program. Students are trained on many of the skills in the classroom. However, some of the skills are gained through industry internships or by mentors coming into the classroom. Jaleel Patilo can attest to this first hand.
Jaleel is a student at Wichita Heights High School. While taking culinary classes through the career & technical training program, he developed a passion for cooking. His teacher helped him get a job at Newport Grill, where he continues to develop his skill set. ProStart has helped Jaleel to further understand the culinary industry, and has assisted him in acquiring a job at on of the top restaurants in Wichita. His favorite foods to cook are Italian and French cuisine.
Jaleel plans to continue his culinary and management education, and is considering attending Butler Community College. He hopes to one day start his own culinary franchise. Jaleel advises other students to “figure out what
you want to do in life and see if your high school offers classes to help you fufill your dream and stick with it!”
At the state competition teams compete in three events during the competition requiring intensive culinary and hospitality management skills. The culinary competition highlights the creative abilities of each team through the preparation of a three-course meal in 60 minutes using only two butane burners. Management teams develop a proposal for an original restaurant concept and apply critical thinking skills to challenges restaurant managers face in day-to-day operations. Students in
the edible centerpiece competition demonstrated their creative ability through the preparation of an edible centerpiece consisting of fruits and vegetables. The performance of teams in all events is observed and rated by expert judges from industry and academia.
The first place culinary and management teams will be traveling to the national competition with a goal of becoming the national champions. Students will compete against 43 teams from across the country for a chance to win the national title, April 19–21, 2013, in Baltimore. At the national competition, hosted by the National Restaurant Association Educational Foundation, the top five teams from both the culinary and management competitions will be awarded scholarships to pursue a college education.
kANSAS pROSTART cHANGING LIVES
april 9GKCRA Board of Directors Meeting 2:30PM KC CVA Office
April 17-18NRA Public Affairs ConferenceWashington, DC
April 19-21National ProStart Student InvitationalBaltimore, MD
April 21-22MRA Board of Directors Meetings Sheraton Suites – Plaza, Kansas City, MO
April 29Hospitality Day at the “K” -Royals Tailgate & GameKauffman Stadium
May 13Hit ‘em & Hold ‘em PAC Golf and Poker TournamentFirekeeper Golf Course, Mayetta, KS
May 18-21NRA Trade ShowMcCormick Place, Chicago, IL
June 20KRHA Insurance Board of Directors9am-12pmJoint Lunch 12pm-1pmKRHA Association Board of Directors1pm-3pmKRHAEF Board of Directors3:15pm-4:15pmRedRock Canyon Grill
Calendar of EventsVisit krha.org and click on the Calendar/Events tab for a full listing of our annual events.
WE’RE BREWIN’OPPORTUNITIES
Dunkin’ Donuts Ranked #1
Source: 2011-2013 Entrepreneur Magazine
Dunkin' Donuts Ranked #1
7th year in a row Source: 2006-2013 Brand Keys Customer Loyalty Index
Topeka
For more information about available counties, contact Tom Ennis at 847-418-7421 or via email: [email protected]
©2013 DD IP Holder LLC. All rights reserved.Campaign Code: KRHA_605_0413
Special Development incentives available in
Restaurant Industry sales are projected
to reach $660.5 billion in 2013.
Did you know?
-National Restaurant Association
Contributing
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Thank you to our Annual Corporate Sponsors!Would you like to sponsor us? Contact Adam Mills at [email protected] to learn about the many benefits that come with being a corporate sponsor!
Platinum
silver
Contributing
2098 Airport RoadWichita, Kansas
945-1966
servsafe trainingManager Training
April 23: LenexaMay 14: Iola
June 4: WichitaJune 6: Manhattan
June 18: Lenexa
employee TrainingApril 25: Hillsboromay 14: Kansas City
May 16: ChanuteMay 23: Ft. Scott
June 4: Manhattan
Government issues new I-9 formby the National Restaurant Association
The federal government issued a new I-9 form March 7 -- and while the new form is available for immediate use, employers have a 60-day grace period to begin using it, according to U.S. Citizenship and Immigration Services . The new form will be required for new hires starting May 8, 2013, USCIS said.
The revised form has been in the works for a while. The agency said its goal was to make the I-9 clearer and more user-friendly for employers and employees. Employers and employees complete the form to verify the identity and work eligibility of newly hired employees.
USCIS said it realizes employers will need extra time to update their business processes to accommodate the new form, particularly businesses that use electronic I-9 forms. As a result, certain older versions of the form can be used for the next 60 days, or through May 7, the agency said.
Employers do not need to complete a new I-9 for existing employees who already have an I-9 on file, unless their employment needs to be re-verified, USCIS said.
The new form includes a revised layout that expands the form to two pages from one, along with improved instructions. More
And while the change is still a ways off, experts say the move could influence operators’ purchase of POS equipment; some may want to delay purchases planned for the next couple of years, while others will speed up their upgrades to obtain EMV compliance by the 2015 deadline.
For Dallas-based Wingstop, the shift to EMV will likely be handled through installing add-on devices to existing POS terminals, says vice president of technology Jason McEachern. He expects the transition will be easier for Wingstop than some other brands because the 550-unit chain typically has only two or three terminals in each store. McEachern says operators should be prepared to invest time and energy to meet new standards. “It’s going to be different,” he says. “And there is going to be an expense. Even if you have compliant devices, at some point in the future you’re still going to have some legacy elements you’re going to deal with.”
But the new EMV standards shouldn’t detract from a restaurant’s commitment to PCI compliance, says Bob Russo, general manager of the PCI Security Standards Council, a nonprofit that establishes standards for all organizations that store, process, or transmit credit card data. In fact, Russo says, EMV and PCI standards are best used together, as merchants do in many European countries that meet both standards.
“Even in the very mature [EMV] markets, people are realizing that EMV alone, while a good fraud tool in the face-to-face environment, is not really enough to protect everything,” he says. “We don’t see any downgrading of PCI at all.”
While operators may lament the costs associated with meeting another set of standards, Russo says, the upgrades will save operators heartache and cash in the long run through improved data security.
Russo expects to see larger merchants add EMV terminals this year as credit card companies begin to issue more chip-based cards. Then it will take time—some estimate as many as seven to 10 years—for chip-based cards to become fully integrated into the marketplace.
“You’re probably looking at two to three years before you begin to see it really becoming ubiquitous out there,” Russo says. “It’s a rather slow conversion over to EMV. But it’s definitely coming.”
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details are available on USCIS’s website. Employers also can call the agency at (800) 870-3676. For more information about the I-9 process, call the USCIS’s National Customer Service Center at (800) 375-5283. A Spanish version of the form is available on the USCIS website for use in Puerto Rico only.
The USCIS offers additional background on the new form in the March 7 Federal Register.
According to USCIS, employers must maintain I-9 forms for their employees as long as they work for the employer and for the required retention period after the end of employment. That period either is three years after the date of hire or one year after the date employment ended, whichever is later. Employers also must make their I-9 forms available for inspection by Immigration and Customs Enforcement, the Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices, and the Labor Department.
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Welcome New Members!Mcdonald’s1630 s hillsidewichita
mcdonald’s1219 s rock rdwichita
t&t managementdba Mcdonald’spo box 5008topeka785.266.1700
mcdonald’s3117 sw topeka blvdtopeka785.266.4770
mcdonald’s1100 s kansas avetopeka785.232.4434
mcdonald’s2001 n topeka blvdtopeka
mcdonald’s2880 se californiatopeka785.267.6181
mcdonald’s3072 sw 29th sttopeka785.271.2131
mcdonald’s7530 state avekansas city316.222.2222
revolution rock bar233 n mosleywichita316.992.1000
garbled bit16212 w 126th terrolathe913.730.7128kansascitypos.com
hr solutions on call8997 commerce drde Soto855.864.3847
daddy’s diner405 e maingardner785.418.1371
on deck capital155 e 56th streetnew york646.412.6286
license solution3316 w 79th stprarie village913.788.6250licensesolution.com
pioneer college caterers5816 96th streetoverland park 913.302.0507
ace grease service inc.9035 state route 163millstadt800.473.2733acegrease.com
sweetie’s gourmet coffee & candy222 n 2ndmulvane316.640.8781
one block south7300 west 119th stoverland park913.451.0444
the old muffin factory217 s mainmcpherson620.245.9757
luigi’s llcdba luigi’s italian restaurant1021 washington rd, ste 300newton316.804.4313
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3PACWhackOpen
MONDAY MAY 13, 2013FIREKEEPER GOLF COURSE
MAYETTA, KS
Hit ‘em & Hold ‘em
Register online at krha.org
Staffing a restaurant isn’t always an easy task. Finding someone with the patience, people skills, and work ethic necessary for the job isn’t easy. It’s a challenge that many hiring managers encounter when hiring hourly workers. Consider these three issues many businesses encounter when dealing with hourly workers:
Age of Labor PoolWith flexible educational requirements and scheduling opportunities beyond 9-5 weekdays, restaurant work often attracts students. The Bureau of Labor Statistics estimates that more than a fifth of food and beverage servers and related workers are between ages 16-19. But employing people new to the working world can be problematic.
Craig Dunaway, president of Penn Station East Coast Subs, notes that hourly employees sometimes fail to pay for what they eat or give free food to friends and family. These newer workers sometimes forget the company needs to make money and that too many freebies hurts the bottom line.
Other obstacles he’s encountered include parents who interfere when their child does something wrong and employees taking breaks and forgetting to clocking out.
High TurnoverSince many restaurant workers view their employment as a paycheck or as a holdover until they can find something in their
CareerBuilder and the National Restaurant Association announce a new partnership to provide its members access to the best retail talent at a cost effective price.
Starting Now: Take Advantage of Exclusive
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3 challenges of hiring hourly employeesBy Beth Braccio Hering, Special to CareerBuilder
career field (think of the stereotypical struggling actor waiting tables), they often are quick to leave for another opportunity.
“In restaurants there is an old saying, ‘You can hire a dishwasher for a nickel,’” says Alan Guinn, a 30-year veteran of the foodservices industry and CEO of The Guinn Consultancy Group in Bristol, Tenn. “What this means is that if there are two restaurants paying the same wage to a dishwasher, he’ll probably be willing to leave one for the other for five additional cents per hour. It’s a tough environment, and I’ve seen people leave and go somewhere else for next to nothing.”
Legal IssuesLastly, note that there are legal issues when hiring hourly workers. “Be acutely aware of wage-and-hour laws, particularly as they relate to employees’ tips,” warns Gary Young, corporate attorney at Herrick, Feinstein and counsel to the New Jersey Restaurant Association. “Government regulators -- usually, the Department of Labor -- and plaintiff-side class action lawyers are forever targeting restaurants and can effectively put you out of business or at least drive you into bankruptcy if you run afoul of those laws.”
As the owner of your own business, you are responsible for knowing your legal responsibilities, both to the government and to your employees. Make sure you consult the proper authorities and reference books to learn everything you need to prepare, from health codes to safety practices to immigration laws and everything in between.
