Pennsylvania Restaurant & Lodging Matters

SUMMER 2013

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Developing the best and brightest talentProStart®

SecurityProtocols

Restaurant SupplierContracts

Is the small print SMALL for a reason?

INSIDE THIS ISSUE

PRLA 2013 Officers

CHAIRMANMatt EnglishMilestone Hospitality Management LLC, LancasterCentral and Lancaster Chapters

VICE CHAIRMANMike RoddenPhiladelphia Marriott West, West ConshohokenPhiladelphia Delaware Valley Chapter

VICE CHAIRMANRick SellBahama Breeze, ExtonPhiladelphia Delaware Valley Chapter

TREASURERJeff CohenSmallman Street Deli, PittsburghWestern Chapter

IMMEDIATE PAST CHAIRMANJeff MetzMetz Culinary Management, DallasNortheastern Chapter

PRLA STAFF

PRESIDENT & CEOPatrick Conway | [email protected]

EXECUTIVE ASSISTANTVicki Zeppa | [email protected]

VICE PRESIDENT OF OPERATIONSJohn Doulgeris | [email protected]

DIRECTOR OF MEMBER SERVICES—StateAmy Kieffer | [email protected]

DIRECTOR OF MEMBER SERVICES—Eastern RegionBrenda Mendte | [email protected]

DIRECTOR OF MEMBER SERVICES—Western RegionJoyce Kraemer | [email protected]

MEMBER RELATIONS COORDINATORSChristine Preuss | [email protected] Adams | [email protected]

MEMBERSHIP SALES REPRESENTATIVESRich Zlogar, Central PAKarin Kady, Eastern PACharlie Anderson, Northwestern PA

DIRECTOR OF FINANCE & HUMAN RESOURCESDiane Sherwood | [email protected]

GOVERNMENT AFFAIRS REPRESENTATIVEMelissa Bova | [email protected]

EDUCATION COORDINATORHope Sterner | [email protected]

MEETING & EVENT PLANNERHeidi Howard | [email protected]

COMMUNICATIONS COORDINATORStephanie Otterson | [email protected]

FINANCE ASSISTANTPaula Judd | [email protected]

PROFESSIONAL SERVICES PROVIDED BY

GENERAL COUNSELShumaker Williams, P.C.Keith Clark

GOVERNMENT AFFAIRSPugliese Associates, HarrisburgLou BiacchiGreenlee Partners, PhiladelphiaAndrew Zalenski

ACCOUNTANT AND INDEPENDENT AUDITORSBrown, Schultz, Sheridan & FritzJim Nace, CPA

INVESTMENT ADVISORSConrad SiegelTara Mashack-Behney

Pennsylvania Restaurant & Lodging Matters is a publication of thePENNSYLVANIA RESTAURANT & LODGING ASSOCIATION100 State Street, Harrisburg, PA800-345-5353 | www.prla.org | [email protected]

Graphtech PublishingSarah DiCello, Publications Manager717-238-5751 [email protected]

For Advertising Information:Alexis Kierce, Account [email protected]

Creative DesignGraphtech

Pennsylvania Restaurant & Lodging Matters is published quarterly by the Pennsylvania Restaurant & Lodging Association, 100 State Street, Harrisburg, PA 17101, tel 800-345-5353, and is a benefit of membership in the association. Articles do not necessarily reflect the view or position of the Pennsylvania Restaurant & Lodging Association. Editorial coverage or permission to advertise does not constitute endorsement of the company covered or of an advertiser’s products or services, nor does Pennsylvania Restaurant & Lodging Matters make any claims or guarantees as to the accuracy or validity of the advertiser’s offer.

©2013 All rights reserved. No part of this publication may be reproduced in print or electronically without the express written permission of the Pennsylvania Restaurant & Lodging Association.

DEPARTMENTS

4 Industry Outlook

6 Legislative Corner

7 Legislator Spotlight

9 Ask US

17 Chapter News & Notes

20 Legal Docket

22 Food Safety

23 Welcome New Members

10

20

ProStart trains students on industry-specific skills that can be used in all aspects of the restaurant and foodservice industry.

ProStart®

SecurityProtocols

15

PRLA 2013 AWARDS PROGRAM

Call for Entries14

Is the small printSMALL for a reason?

Restaurant Supplier

Contracts

4 • PENNSYLVANIA RESTAURANT & LODGING matters • SUMMER 2013

INDUSTRY OUTLOOK

THIS JULY marks the Pennsylvania Restaurant & Lodging Association’s one year anniversary. It’s been an exciting and productive year for the association. Since combining the memberships of the Pennsylvania Restaurant Association and Pennsylvania Tourism & Lodging Association, the hospitality industry’s voice has had greater reach to local and state policymakers.

We successfully lobbied against both a broad-based mandatory paid leave policy and an increase in the alcohol tax in Philadelphia. We have been at the table throughout the extensive negotiations in both chambers of the legislature regarding the privatization of wine and spirits sales in Pennsylvania. More than 100 members attended this year’s Legislative Day, meeting with more than 80 legislators and their staffs to advocate for a privatization plan that benefits licensees, closing the hotel tax loopholes and pre-empting local paid leave policies. Check out the Legislative Corner on page 6 for the complete wrap up of the event.

Internally, we successfully implemented a new database, helping us streamline our administrative processes such as billing, reporting and managing our member contact information. The next phase is the re-design of our website, which is nearing completion. The new website will offer our members a more user-friendly experience, including the opportunity to pay their dues online and update their contact information in real-time.

We are pleased to announce that our Educational Foundation board this spring voted to participate in ProStart®. ProStart® is a nationwide, two-year program for high school students, which develops the best and brightest talent into tomorrow’s restaurant and foodservice industry leaders. We are still ironing out the details of how we will implement ProStart® in Pennsylvania. In the meantime, page 10 provides an overview of the program.

For the third year in a row, the state budget was passed on time. The $28.4 billion budget includes no tax increases and about $120 million more in education funding. Gov. Corbett had a few major priorities for this budget year — on time budget, privatization of wine and spirits sales, transportation funding and pension reform. He only achieved the first one. Privatization and transportation funding will be addressed again in the fall.

Our weekly Legislative Update will keep you informed on legislative happenings at the local, state and federal levels. Email Melissa Bova, [email protected], to subscribe.

Thank you for supporting us as we transitioned to the Pennsylvania Restaurant & Lodging Association this past year. We look forward to serving you and the industry in years to come.

Best regards,

Matt English Patrick ConwayChairman of the Board President & CEO

Matt English Patrick Conway


LEGISLATIVE CORNER

The Pennsylvania Restaurant & Lodging Association is committed to representing the hospitality industry at all levels of government on legislative and regulatory issues that have a direct impact on our industry and our members’ bottom lines. The above issues are just a few of the priorities in which your association is currently engaged.

Privatization of wine & spirits sales

PRLA supported HB 790 in the House because the bill increases the wholesale discount from 10 to 14 percent, allows licensees to sell six bottles of wine to go and preserves important de novo protections.

Although PRLA supported passage in the House, the association has some concerns that it will address in the Senate. PRLA’s primary goals are to: increase the wholesale discount to 18 percent, ensure a privatized wholesale system does lower prices, and reduce the increased fees and fines for licensees in the current legislation.

Increase of the alcohol tax in Philadelphia and enabling it in other municipalities

PRLA is opposed to all alcohol tax increases and creating new alcohol taxes in other areas. It is a tax that specifically targets the hospitality industry, and puts businesses in an alcohol tax location at a disadvantage to those businesses that do not have to assess such a tax.

Mandatory leave policy pre-emption

PRLA believes that businesses should make operating decisions based on their specific needs, not because a local government decides for them. Private sector employee benefit decisions should not be determined by local governments. PRLA and other business groups support state

legislation that would pre-empt local paid leave mandates.

Closing the hotel tax loophole

PRLA supports the closing of the hotel tax loophole. Currently, the Commonwealth is losing money because online travel companies are remitting taxes on a lesser amount than the actual cost at which they sell a hotel room. It puts in-state hotels that collect and remit the tax properly at a competitive disadvantage.

ON MAY 7, the Pennsylvania Restaurant & Lodging Association (PRLA) held its 26th annual Legislative Day in Harrisburg. Nearly 100 members from hotels and restaurants from across the Commonwealth descended on the Harrisburg Capitol to discuss issues of importance to the industry.

More than 80 meetings were held with state representative and senators and PRLA once again held its Taste of the State legislative reception, where all 253 members of the legislature were invited.

Legislative day is an important event for the association, as it allows elected officials to personally meet with the business owners and representatives of businesses within their district.

This year, PRLA members focused on the following key issues:

Stay tuned to our weekly Legislative Update e-newsletter for the most up-to-date information on the Legislature’s actions. Not receiving the Legislative Update? Email Melissa Bova at [email protected] to subscribe.

If you didn’t participate

in Legislative Day in

2013, please consider

joining us next year.

This is an important

event for our industry

and can only be

successful when you

participate.

SENATOR LARRY FARNESE was elected to the Senate in 2008 to represent Pennsylvania’s First Senatorial District. Sen. Farnese serves as the Democratic Chair of the Communica-tions and Technology Committee. He is also a member of the Appropriations Committee, Banking and Insurance Committee, and the Judiciary Committee.He earned a Bachelor’s degree in Political Science from Villanova University and graduated from Temple University’s Beasley School of Law in 1994. He is presently of counsel at Archer and Greiner P.C. He is a member of the Pennsylvania Housing Advisory Committee and serves on the board of the Pennsylvania Historical Society. He also serves on the board of Casa Farnese, the first affordable senior housing complex in Philadelphia, founded in 1966 by the Senator’s grandfather.Following in his family tradition of commitment to education, Sen. Farnese was recently appointed to serve on the boards of the Pennsylvania Higher Education Assistance Agency (PHEAA) and the Public School Employees Retirement System (PSERS).He continues to build his record as a reformer through legislation and policy initiatives in the areas of public safety, economic development, and job creation. Recognizing that quality of life is crucial to economic development, Sen. Farnese has sponsored a number of initiatives to improve public safety. He has introduced legislation to reduce gun violence, and supported continued funding of the Gun Violence Task Force to combat straw purchases of illegal handguns. Sen. Farnese obtained state funding to help restore the Philadelphia Police Mounted Unit, and has also worked closely with local officials and community leaders to improve oversight of neighborhood nuisance bars. He recently became the leading proponent in Pennsylvania for “Caylee’s Law.”Sen. Farnese has championed capital funding for many commercial and cultural institutions, including new hotel construction, expansion of the convention center, and development of the Delaware River waterfront. He has been an advocate for dredging the Delaware River and the expansion of Philadelphia’s ports, activities which support and create thousands of family-sustaining jobs. Sen. Farnese introduced enabling legislation for Philadelphia’s property tax abatement program to spur new construction, and successfully led the fight to defeat proposed taxes on the arts and professional services.Sen. Farnese has sponsored bi-partisan legislation to enact campaign finance contribution limits, and initiatives to end pay-to-play contributions by companies doing business with the state. In 2009, he drafted the provisions in state law that ended the DROP program for future elected officials statewide, and also authored new reforms to Pennsylvania’s gaming law.

legislatorspotlight

SenatorLarry Farnese


Left to right: Joe McInerney, President & CEO, AHLA, Tracy Trotman, Isaiah Griffin (Team Captain), Namansa Marah, Keziah Duncan

The American Hotel & Lodging Educational Institute hosted the 10th Annual LMP International Competition on April 10–12, 2013, in Orlando, Fla. Each year, hospitality students from around the world come to Rosen Shingle Creek Resort in Orlando, Fla. to showcase their skills in a two-day competition that challenges participants with events based on real-world job scenarios.

Thirteen teams participated in this year’s competition, representing schools in the Bahamas (Andros Island and New Providence), California, Florida, Guam, Hawaii, Idaho, New Hampshire, Ohio, Oklahoma, Pennsylvania, Washington, D.C., and Wyoming. These teams competed for scholarship dollars and a chance to join AH&LA in New York City this November.

Under the leadership of teacher Patty LeCompte, the Monroe Career & Technical Institute team of Isaiah Griffin, team captain and junior at Pocono Mountain East; Namansa Marah, senior at East Stroudsburg North; Tracy Trotman, sophomore at Pocono Mountain West; and Keziah Duncan, sophomore at East Stroudsburg South, represented Pennsylvania.

Griffin and Marah were members of the MCTI team that took home the overall first place international title in 2012. Last November, that team had the opportunity to attend the AH&LA Fall Conference and meet the AH&LEF Board of Trustees. It was a meeting that helped them return to the competition in 2013. Neil Shah, president and chief operating officer of Hersha Hospitality Trust, was at the meeting and impressed by the students.

“The 2012 team gave an impressive presentation to the board, after which they mentioned that they did not have the funds to attend the national competition again in 2013,” he said. “Inspired by their passion for hospitality and competition, I felt compelled to sponsor the team so that they could again compete in 2013,” he continued. “This was an opportunity that they earned and truly deserved.”

Hersha Hospitality Management is one of the top 10 hotel management companies in the United States, with 22 hotels under management in Pennsylvania alone.

At this year’s competition, the MCTI team displayed their hospitality knowledge and skills by competing in a variety of events, including a night audit, room inspection, banquet

planning, case studies and knowledge bowl quiz. The judges were all experts and professionals from the industry.

Between events, the students had the opportunity to network with their peers from around the world, as well as representatives from colleges, hotels, hospitality associations and industry experts.

“Participants benefit from these programs and competitions by learning and practicing industry-specific skills, gaining real-life

work experience, networking with hospitality professionals who can provide career advice and opportunities, and competing for valuable scholarships,” said Shah.

While the 2013 team did not place in the top three, LeCompte did not see this competition any less successful. “We want the folks at Hersha to know that this event has made a huge difference in each of their lives.”

Marah graduated this spring and is planning on pursuing hospitality management at Pace University

in the fall. After her experience at the competition, she plans on concentrating in lodging management and would like to become a general manager someday.

Griffin, Trotman and Duncan will all return to the MCTI program in the fall. They are still exploring all that the industry has to offer, and with the expansion of their program’s curriculum at MCTI, they will have many new opportunities to learn.

Pennsylvania team competes at 10th annual Lodging Management Program International Competition

Participants benefit from these programs and competitions by learning and practicing industry-specific skills, gaining real-life work experience, networking with hospitality professionals who can provide career advice and opportunities, and competing for valuable scholarships.

SUMMER 2013 • PENNSYLVANIA RESTAURANT & LODGING matters • 9

USaskKnowledge is power in your operation. As a PRLA member,

you have many informational resources available at your

fingertips to help you with your day-to-day legal, regulatory

and operational questions.

Tip Reporting

Q What is a tip vs. a service charge?

A: A tip is a sum a customer gives as a gratuity in

recognition of a service performed. Whether to give a tip and how much to give is solely the decision of the customer. A service charge is an amount automatically added to a customer’s bill by management. Under federal law service charges must be considered as income to the employer and may be retained by the employer or distributed to employees in any amount chosen. Service charges that are distributed to employees are treated as wages under federal law.

Q What type of tip reporting is required by employees?

A: Employees need to keep daily records and must report tip earnings to their employer if they receive at least $20 in a month. Daily tip records are kept so employees can:

• reporttipsaccuratelytotheemployer

• reporttipsaccuratelyontheir tax return

• provetipincomeifeverquestioned

IRS Form 4070A is a simple daily diary to record tips. Non-cash tips such as tickets, passes or other items of value should also be recorded in this tip diary. Employers may also consider purchasing the Tip Reporting Education Kit from the National

Restaurant Association online store (www.restaurant.org). Members receive a $30 discount off the $59.95 non-member price. The kit includes an employer guide, employee brochures, posters, and sample payroll stuffers.

Although the law does not require employers to police employee tip reports, unreported tips can cause big problems for the employer and the employee. Employers who fail to report tip income can be held liable for income tax and their share of FICA tax on unreported tips, and could be assessed penalties and interest. Employers may also have the IRS step in to estimate unreported tips and be liable to pay back taxes. Because of these liabilities, Employers should be vigilant in reminding their employees the importance of accurate reporting and supply helpful tools in keeping accurate records.

Q I own a restaurant; do I need to file any specific forms to the IRS regarding tips?

A: IRS form 8027 is required to be filed in a timely manner by restaurants:

• wheretippingiscustomary

• thatprovidesfoodandbeveragesforon-premises consumption

• thatnormallyemploysmorethan10employees (tipped and non-tipped) or the equivalent (80 employee hours) on a typical day

Q Is there a scenario when I must allocate tips?

A: If total tips reported by employees are less than 8 percent of the establishment’s food-and-beverage sales (not counting carry-out sales or sales to which a service charge of 10 percent or more is added), the employer is required to allocate the difference among all directly tipped employees who reported less than 8 percent of their share of the restaurant’s sales.

This information has been summarized from the National Restaurant Association Legal Problem Solver. The Legal Problem Solver is a free, online member resource that summarizes various legal topics, including tip reporting, employee meals, uniforms, etc. Visit restaurant.org/profitability/support/legal to access all available topics.

ProStart trains students on industry-specific skills that can be used in all aspects of the restaurant and foodservice industry.

ProStart®


ProStart® is a nationwide, two-year program for high school students that develops the best and brightest talent into tomorrow’s restaurant and foodservice industry leaders. From culinary techniques to management skills, ProStart’s industry-driven curriculum provides real-world educational opportunities and builds practical skills and a foundation that will last a lifetime.

By bringing industry and the classroom together, ProStart gives students a platform to discover new interests and talents and opens doors for fulfilling careers. It all happens through a curriculum that teaches all facets of the restaurant and foodservice industry, inspires students to succeed and sets a high standard of excellence for students and the industry.

With national and local support from industry members, educators, the National Restaurant Association Educational Foundation (NRAEF) and state restaurant associations, ProStart reaches 90,000 students nationwide in 1,700 schools in 47 states, Guam and Department of Defense bases.

WHO ARE PROSTART STUDENTS AND EDUCATORS?

• ProStartservesalltypesofcommunities, from rural to inner-city schools across the country, to Department of Defense schools around the world.

• Studentstakeitasanelectivetrackin traditional high schools, career & technical centers, and vocational high schools.

• Educatorsrangefromfamily&consumer sciences educators to chefs who transitioned from industry into the classroom.

PROSTART NATIONAL CERTIFICATE OF ACHIEVEMENT

The ProStart National Certificate of Achievement is the exciting culmination of the ProStart program. To earn it, students must complete the program, pass two national exams and complete 400 hours of mentored work experience. It is integrally linked to NRAEF scholarship opportunities and articulation benefits at more than 60 of the country’s leading hospitality/culinary arts colleges and universities.

NATIONAL PROSTART INVITATIONAL®

The National ProStart Invitational, held each spring, showcases the talent of the top ProStart students as they compete in culinary & management events. Culinary teams have 60 minutes to prepare a three-course meal using only two butane burners, while also competing in knife skills and poultry fabrication.

Management teams develop an original restaurant concept and apply critical thinking skills to challenges managers face in day-to-day operations.

Annually, more than $1 million in scholarships are awarded to the top five teams in both events from the NRAEF and attending colleges.

Source: National Restaurant Association Educational Foundation

The Pennsylvania Restaurant & Lodging Association and its Educational Foundation are pleased to begin participating in the ProStart program. The PRAEF board of directors is currently developing Pennsylvania’s implementation strategy. If you are interested in becoming a program mentor, please contact Hope Sterner, education coordinator, at (800) 345-5353 or [email protected].


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*Early bird pricing must be pre-paid 14 days prior to the class.

Regular prices are $135/member and $175/non-member.

Shipping & handling fees apply.

Visit www.prla.org or call (800) 345-5353 for details.

Early Bird Pricing*

$130 PRLA member

$170 non-member

REGISTER TODAY

www.prla.org

(800) 345-5353

ServSafe® Food Protection Manager Certification Classes

11/11 Villanova11/18 Wilkes-Barre11/18 Greensburg

DECEMBER12/2 Harrisburg12/2 Philadelphia12/9 Reading12/9 Williamsport

OCTOBER10/7 Harrisburg10/21 Monroeville10/21 Philadelphia10/21 State College10/28 Bethlehem

NOVEMBER11/4 Butler11/4 Lancaster

SEPTEMBER9/9 Lancaster9/9 Philadelphia9/16 New Castle9/16 Washington9/23 Wilkes-Barre9/23 York9/30 Johnstown

9/30 Media

AUGUST8/5 Butler8/5 Philadelphia8/5 State College8/12 Reading8/19 Gettysburg8/19 Greensburg8/19 Tannersville

Retest, home study and online classes also are available.

presented by the Pennsylvania Restaurant & Lodging Association

Tuesday, August 27Omni Bedford Springs Resort

REGISTERwww.prla.org

(800) 345-5353

Power PEC 16TH

ANNUAL

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sAwards Program Call for EntriesThe Pennsylvania Restaurant & Lodging Associ-ation is now accepting nominations for its 2013 Awards Program in the following categories:

EXCELLENCE IN FOOD SAFETY AWARDDeadline: August 15, 2013

RESTAURANT, LODGING & ALLIED MEMBERS OF THE YEARDeadline: October 15, 2013

WILMER S. LAPP KEYSTONE AWARDDeadline: October 15, 2013

Criteria, eligibility requirements, nomination forms and more information about the program can be found at:

www.prla.org/awards


MUCH OF THE LITIGATION RISK

posed by internal security is rooted in the need for subjective analysis and discretionary intervention (e.g. who to watch, and when and how to intervene). Shift managers, front desk clerks, bellmen, pool attendants, and security guards confront these questions every day:• When should they respond to noise

complaints by shutting down a party in a guestroom?

• At what point should they intervene in a poolside party that has gotten too wild?

• When should they approach a person who appears to be loitering without a legitimate reason to be on the property?

• When and how should they intervene in cases of suspected shoplifting?

Even honest mistakes in answering these questions can lead to a perception of discrimination or other inappropriate conduct, and the resulting lawsuit can sap profitability and lead to devastating publicity in a sensitive marketplace.

Keeping in mind that applicable laws vary state-by-state and there is no “one-size-fits-all” solution, here are some suggestions to mitigate your litigation risk:

Hotels are microcosms of the retail experience. They include overnight accommodations, of course, but many also include restaurants, recreation facilities, and shopping. Thus, there is a daily struggle to meet customer safety and loss-prevention objectives without imposing security that is so intrusive that it harms the guest experience.

COMPREHENSIVE POLICIES

The core of your security program should be a set of policies that guide employee conduct. They also are the first place a plaintiff’s attorney will look for evidence that you have targeted a specific group for disparate treatment, or that you acquiesce in bad behavior by employees. Thus, your security policies should articulate the purpose of the program, explain how it will be implemented, and set minimum and maximum parameters for employee conduct.

Policies that are developed by outside experts based on best practices and industry standards are more likely to withstand scrutiny than are programs developed by company insiders who lack requisite expertise. Regardless of who develops the policies, they must periodically be reviewed to ensure that they remain consistent with prevailing law, evolving best practices and changed market conditions.

It is equally important that your policies are adhered to in practice and consistently enforced. This can be a significant challenge for hoteliers that operate nationally or internationally, but periodic surprise audits can be effective tools to ensure compliance, identify gaps in training, weed out problem employees and defend against charges of acquiescence.

EFFECTIVE TRAINING

The best programs are developed and implemented by professional trainers, and they involve scenario-based training, role-playing exercises and specific instruction on profiling and the bounds of appropriate physical contact. Initial and refresher training should be provided to all who interact with guests, and there should be defined standards for graduation. Like your policies, your training program must periodically be reviewed and updated.

Continued on next page

SecurityProtocols

By Alan M. Freeman

As seen in Lodging Magazine March 2012.

*Early bird pricing must be pre-paid 14 days prior to the class.

Regular prices are $135/member and $175/non-member.

Shipping & handling fees apply.

Visit www.prla.org or call (800) 345-5353 for details.

Early Bird Pricing*

$130 PRLA member

$170 non-member

REGISTER TODAY

www.prla.org

(800) 345-5353

ServSafe® Food Protection Manager Certification Classes

11/11 Villanova11/18 Wilkes-Barre11/18 Greensburg

DECEMBER12/2 Harrisburg12/2 Philadelphia12/9 Reading12/9 Williamsport

OCTOBER10/7 Harrisburg10/21 Monroeville10/21 Philadelphia10/21 State College10/28 Bethlehem

NOVEMBER11/4 Butler11/4 Lancaster

SEPTEMBER9/9 Lancaster9/9 Philadelphia9/16 New Castle9/16 Washington9/23 Wilkes-Barre9/23 York9/30 Johnstown

9/30 Media

AUGUST8/5 Butler8/5 Philadelphia8/5 State College8/12 Reading8/19 Gettysburg8/19 Greensburg8/19 Tannersville

Retest, home study and online classes also are available.

presented by the Pennsylvania Restaurant & Lodging Association

• Acquisition, sale and financing of restaurants • Liquor license acquisition and sale • Defense of liquor license citations and enforcement actions • Dram shop liability • Structuring to limit liability • Employment law and wage & hour issues • Litigations, mediation and dispute resolution • Intellectual property protection including trademarks, copyrights and trade secrets • Tax, business and estate planning

serving the needs of the restaurant industryfor more than 45 years

www.shumakerwilliams.com

PENNSYLVANIA MARYLAND NEW JERSEY NEW YORK WASHINGTON DC

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STAFFING

The constitution of your staff can be a source of litigation risk. A staff that is homogenous although the community is diverse may suggest inappropriate hiring and promotion practices, and a plaintiff’s attorney will use any disparity to argue that your security practices are tainted by discrimination. Take care to ensure that hiring and promotion practices are non-discriminatory and result in a diverse workplace.

SURVEILLANCE, APPREHENSION AND DETENTION

There is a subjective element to security that cannot be avoided, though it invites litigation risk. Consider carefully the criteria that will be used to determine whether to monitor a particular person or location, whether to focus surveillance on particular days or times or at particular events, and whether to shut-down events on your property. Where possible, deploy security resources based on objective data rather than hunches, and initiate surveillance (and, where absolutely necessary, detention) based on non-discriminatory criteria and uninterrupted observation. Apprehensions should be effected away from large crowds if possible, and the use of force should be minimized.

CUSTOMER SERVICE

How a person is treated when he interacts with your employees will influence what he does next. Thus, interventions should be discrete, respectful, and efficient, while still being safe and secure. Particular care should be given to the treatment of juveniles. Where bag and body searches are absolutely necessary, they should be “same sex” and witnessed. And when customers complain about mistreatment, take their complaints seriously.

RECORD KEEPING

Adequate record keeping is a powerful tool to reduce litigation risk. Generally, your staff should be required to make a contemporaneous written record of any intervention, including a narrative description of the process by which they came to observe, interact with and, where applicable, detain, the guest. These reports should be stored in a central location, and be reviewed by supervisors for sufficiency and identification of possible employee misconduct.

There is no silver bullet to ward off frivolous litigation, but careful attention to the preparation and implementation of your security program can be an effective way to reduce your litigation risk.

Alan M. Freeman is a partner in the Washington, D.C. office of Blank Rome LLP. His commercial litigation and legal risk reduction practice is national in scope, and he can be reached at [email protected].


CHAPTER NEWS & NOTES

what’s happening around the state?BERKS-SCHUYLKILL CHAPTER

• Winedown Café & Wine Bar of Reading is on YouTube. Catch owner Ben Franco’s weekly wine tasting notes and updates at www.youtube.com/user/winedowncafe.

BRANDYWINE CHAPTER

• National Restaurant Association Chairman Phil Hickey was the keynote speaker at the PRLA Power PAC Golf Classic on June 25 at RiverCrest Golf Club & Preserve in Phoenixville. Hickey currently serves as CEO of Jocks II Inc., which is based in Santa Rosa Beach, Fla.

• Brandywine Chapter will hold a golf tournament on Tuesday, September 17 at Applecross Country Club, Downingtown. Proceeds will benefit the association’s Educational Foundation scholarship fund.

CENTRAL CHAPTER

• Make plans to play the annual Central Chapter Golf Outing, which will take place on Monday, October 21 at Hershey Country Club. More than 300 golfers are expected to enjoy a full day of food, golf, contests and prizes. Proceeds benefit the association’s Educational Foundation scholarship fund and the Pennsylvania State Trooper’s Camp Cadet program.

• Central Chapter awarded scholarships to three students this year from their contri-butions to the PRLA Educational Foundation scholarship fund. Louis Manza is headed to Johnson & Wales University, Megan Waleff to Robert Morris University and Samantha Formica will continue her education at a yet-to-be-determined institution.

LANCASTER CHAPTER

• Get your clubs ready for the annual Lancaster Chapter Golf Outing, which will be held on Monday, September 23 at Foxchase Golf Club, Stevens. This yearly event raises money for the chapter to

present several scholarship to culinary and hospitality students through the association’s Educational Foundation.

• Lancaster County Coffee Roasters has partnered with the Lancaster Barnstormers to be the exclusive coffee provider at Clipper Magazine Stadium. LCCR will be serving its great coffees and cold coffee-based drinks at all Barnstormers’ home games.

• Singer Equipment Company of Elverson has been named the #2 business in the Greater Reading Top 50, as compiled by the Greater Reading Chamber of Commerce and Industry. Singer Equipment Company is currently the fifth largest foodservice equipment and supplies distributor in the United States. Its nine contract offices provide kitchen design and installation services nationwide. Stores in Wyomissing and Philadelphia are open to the public. The company is celebrating its 95th anniversary in 2013. For more information, visit www.singerequipment.com.

• This year Sabrina Heller, Andrew Hershey and Hannah Valent, all students at the PA School of Culinary Arts at YTI Career Institute, were each awarded $1,200 scholarships from the Lancaster Chapter’s contributions to the Educational Foundation scholarship fund.

• Isaac’s Famous Grilled Sandwiches recently received the 2013 Circle of Honor distinction from United Way of Lancaster County for its stellar annual Employee Campaign. In addition to financial contribu-tions, the Circle of Honor recognizes Isaac’s quality workplace campaign, employee support of and participation in United Way activities, and other non-monetary contributions.

KEYSTONE CHAPTER

• James Purdum, general manager for Hospitality Services at Penn State, has been named the recipient of the 2013 International Foodservice Manufacturer’s Association (IFMA) Silver Plate Award in Hotels and Lodging. Purdum and other Silver Plate Award winners were honored at the 59th annual Gold & Silver Plate Awards Celebration on May 20 at the Great Hall at Union Station in Chicago.

MIDWESTERN CHAPTER

• The PRLA Power PEC Golf Classic West will be held at the beautiful Omni Bedford Springs Resort, Bedford, on Tuesday, August 27. The resort is home to one of this country’s first golf courses. Overlooking breathtaking views of the Allegheny Mountains and

For more information on any of the above events or to include your event or news in the next issue of Pennsylvania Restaurant & Lodging Matters, contact Heidi Howard, PRLA meeting and event planner, at (800) 345-5353 or email to [email protected].

Norm Cella, Ronald Highlands, Tony Crouse, and Jake Lawrence enjoy their day on the course during Central Chapter’s 2012 golf tournament.

Phil Hickey


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CHAPTER NEWS & NOTES continued

Cumberland Valley, this remarkable course spans the work of three golf architectural masters—Spencer Oldham, A.W. Tillinghast, and Donald Ross. Bedford Springs Old Course has undergone a total renovation overseen by noted classic golf course restoration architect Ron Forse, restoring it to its original course layout. A round of golf on these historically significant tees is a must-play for golf enthusiasts of all levels. Register online at www.prla.org/pecgolf.

• In February, Hoss’s Steak & Sea House, based in Duncansville, was recognized by the Beef Checkoff Program as the 2012 National Foodservice Beef Backer Award winner in the Chain Operator category. Started in 2007, the National Foodservice Beef Backer Awards program recognizes foodservice operators that exhibit leadership and innovation in promoting and using beef. A judging panel of industry professionals selected one winner in each of the three categories: Independent Operator, Chain Operator and Innovator of the Year. The Beef Checkoff Program was established as part of the 1985 Farm Bill.

NORTHEASTERN CHAPTER

• John Metz, vice president of restaurant operations at Metz Culinary Management, is carrying on his father’s legacy by being the second in his family to receive the International Food Manufacturers Association (IFMA) Silver Plate award. His father, John C. Metz Sr., received the award in 1979 in the Foodservice Management category.

NORTHWESTERN CHAPTER

• Bertrand Artigues, owner of Bertrand’s French Bistro in Erie and Northwestern Chapter President, spent some time with

American chef, author and Travel Channel personality Anthony Bourdain at the National Restaurant Association show in Chicago this May.

PHILADELPHIA CHAPTER

• Long recognized for its excellence in food and beverage, Omni Hotels & Resorts has created its own Umami Sauce that has premiered at the Omni Hotel at Independence Park, Philadelphia. Created by a team of Omni chefs from Chicago, Denver, Orlando and San Antonio, Omni Hotels’ new Umami Sauce captures the deliciousness that defines umami, a loose translation from the Japanese umai (delicious) and mi (taste).

• Through the Darden Foundation’s Restaurant Community Grants program, the staffs of 21 area Red Lobster, LongHorn Steakhouse, Capital Grille, Olive Garden and Bahama Breeze restaurants recently awarded $21,000 to Philabundance, the Philadelphia area’s largest hunger-relief organization.

WESTERN CHAPTER

• PRLA and Western Chapter board member Steve Musciano of ARAMARK has been selected as a 2013 ARAMARK Outstanding Volunteer and a Bronze Jefferson Award for Public Service winner. The ARAMARK Outstanding Volunteer Awards showcase ARAMARK employees’ extraordinary efforts to enrich and nourish lives in their communities through exemplary volunteer service. We recognize and honor the wonderful things they do through the ARAMARK Outstanding Volunteer Awards. Since 2007, we have recognized dozens of employees for their commendable service. Each year, ARAMARK partners with the Jefferson Awards for Public Service (www.jeffersonawards.org) to identify those employees who demonstrate outstanding volunteer service and involvement in their communities.

• Joseph DiSalvo of DiSalvo’s Station Restaurant, Latrobe is the current chairman of Distinguished Restaurants of North America (DiR–o NA). DiR–o NA is a non-profit organization that, by recognizing excellence, seeks to promote fine dining throughout the United States, Canada, and Mexico. DiR–o NA will hold its annual Conference & Reunion September 15–18, 2013, at the Sheraton Wall Centre, Vancouver. For more information about DiR–o NA or the conference, visit www.dirona.com.

Bertrand Artigues (r), with Anthony Bourdain at the National Restaurant Association show.

Steve Musciano

John Metz (c) receives his IFMA Silver Plate Award.

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Take the worry out of kitchen fire prevention

PA: 267-382-0745 email: [email protected] NJ: 609-704-0688 www.airventductcleaning.com


LEGAL DOCKET

by Evan C. Pappas, Esquire

Shumaker Williams, P.C.General Counsel,

Pennsylvania Restaurant & Lodging Association

Restaurant Supplier ContractsIs the small print SMALL for a reason?

As a restaurant, you sign contracts all the time for the delivery of your food and drink, services related to uniforms and cleaning, and construction and renovation. Although you could think of better ways to spend your time than revising a contract provided by a vendor, this time is well spent because contracts contain a lot of small print, and are drafted to make the deal better for the supplier—not the restaurant.

Provided that your supplier’s performance is satisfactory, non-preferable contract provisions may never affect or concern you. However, sometimes suppliers become less than responsive, or a better deal comes along that you might like to consider. For example, we recently assisted a restaurant client who had been with the same carbon dioxide gas supplier for many years. The supplier they had been dealing with for years had been purchased by another company and, therefore, all the supplier contracts became the property of the new (out-of-state) company. As soon as the new supplier took over control, immediate service problems developed. So although the restaurant was content for years with its supplier’s service, and may have even

forgotten that a contract governed their relationship, the situation changed as soon as the new company took over. The contract terms became important—but they were less than favorable.

Two important contract provisions that compliment one another are the provisions related to contract renewal and contract termination. Restaurants should be careful to understand them because they can vary widely from supplier to supplier. An automatic renewal provision usually states that on each anniversary of the contract it will automatically renew and extend for another one year period (or longer). The termination clause outlines the circumstances under which you and the supplier may cancel the contract. Typically, a supplier will draft the contract in such a way that prevents the restaurant from canceling the contract at any time except for a set number of days prior to the renewal date. As the recipient of services, you want to make sure, if possible, that this contract clause allows you to terminate the contract at any time if you become unhappy with their services.

Even if you do not negotiate more preferable termination language for the contract, you

Read the fine print! Are contracts drafted to make the deal better for the supplier

— not the restaurant?


must understand your responsibilities pursuant to the termination clause. Merely providing notice when you choose to do so is not sufficient. Cancellation provisions are sometimes written to require you to give notice within a certain time frame before the expiration of the term. This means that your notice cannot be provided too early and not too late. Other cancellation provisions require you to give notice no later than a certain number of days before the expiration of the term. This means that you must consider cancellation at a sufficiently early date before the renewal.

As an example, a recent supplier contract we reviewed on behalf of a client contained a cancellation provision that required notice of cancellation to be provided at least 12 months prior to the expiration of the contract term. Such a provision requires the restaurant to know a full year ahead of the end of their contract term whether or not they want to cancel the contract. Failing to provide notice a full year in advance could cause you to be bound not only for the duration of that term, but for an additional year on top of that! If not negotiated, such a provision can trick a restaurant owner into being bound by the terms of their supplier contract for much longer than anticipated.

Another set of contract provisions to be aware of relate to court venue and alternate dispute resolution. Court venue provisions or “choice of law” provisions dictate what state’s laws will be followed if a dispute arises and what court may hear a case if a dispute arises. An out-of-state supplier will obviously select its home state as the venue for legal actions. This can result in an injustice for a restaurant owner because it may require hiring an out-of-state lawyer and legal proceedings in another state. Alternate dispute resolution (ADR) is another thing you must consider. ADR encompasses both mediation and arbitration, which are two methods to resolve disputes without having to litigate in state or federal court. Mediation is where an independent, neutral person is selected to hear the issues and attempts to get the parties to negotiate or agree to a settlement. Arbitration is an informal trial where lawyers or arbitrators, rather than judges, hear the case and make a binding ruling.

If these provisions exist, they are not automatically bad because ADR is typically much cheaper than a trial. However, you want to ensure that the arbitration or mediation provisions are fair and allow you a right of appeal if you are not satisfied with the result. Often a supplier will require arbitration to the exclusion of any other courts that may otherwise hear the issue. This makes the arbitration the only place where you may have your case heard. In some cases, mediation may be required before arbitration drives a wedge between you and an ultimate resolution of the dispute.

Some last considerations when you negotiate contracts with vendors or suppliers relate to specific description of the services, limits on assignability, and remedies for non-performance of the contract. Having a specific description of services may seem like an obvious ingredient to a good contract, but too often contracts contain very poor descriptions of the services to be performed—which could lead to differences of opinion later. Regarding assignment of the contract, some supplier contracts may attempt to limit your ability to assign the contract to another restaurant or successor. In the event your restaurant may be purchased or merged with another restaurant, not having such limitations on assignment of the contract will allow you to reap the benefits of that contract without having to execute a new one. Finally, most contracts that are drafted by the supplier (or their attorney) will be silent on what penalties should be incurred if the supplier provides insufficient services or breaches the contract. You must specifically negotiate these terms into the contract so that the supplier has an incentive to continue providing quality goods and services.

Being aware of these provisions will help you as you review supplier contracts. Even if you think the supplier may not be willing to accept your changes, you (or your counsel) must try to negotiate for these changes before your signature is provided—because after you sign, it’s too late to make changes.

Having a specific description of services may seem like an obvious ingredient to a good contract, but too often contracts

contain very poor descriptions of the services to be performed—which could

lead to differences of opinion later.


FOOD SAFETY

ServSafe Food Handler programYour manager or chef have been trained and certified in food safety through a program like ServSafe® Food Safety for Managers. Are they passing that knowledge on to the rest of your staff who handle food? Do you have an in-house training program for new employees on food safety best practices?

It is mission-critical to ensure that every member of your foodservice staff understands what they must do to handle and prepare food safely. One food safety incident can destroy a business, so food safety training is vital.

Rather than risk your business or your loyal customers’ health, ensure your team learns and adheres to proper food safety practices by providing them with training. The ServSafe® Food Handler program is an easy to use, nationally recognized program that is scientifically based and legally defensible.

Available online or on-site, it uses innovative techniques to help employees learn critical concepts and practices. For your protection and peace of mind, use the most trusted training system in the industry.

Participants are thoroughly trained in the following five key areas:

• basic food safety

• personal hygiene

• cross-contamination/allergens

• time and temperature

• cleaning and sanitizing

ServSafe® works closely with the FDA and other regulatory agencies to ensure comprehensive training is compliant with all national, state and local requirements.

The program uses consistent terminology and definitions, which makes implemen-tation, supervision and management of all food safety practices easy and efficient. The materials are designed to keep students engaged and motivated while retaining and recalling. It is delivered online or on-site and in English and Spanish.

Participants must satisfactorily complete a 40-question assessment in order to be awarded a Certificate of Achievement.

To see if the Food Handler program meets your training needs, call PRLA at (800) 345-5353 or visit www.servsafe.com/foodhandler.

IT PAYS TO BELONGPennsylvania Restaurant & Lodging Association members have exclusive access to special discount programs. If you aren’t already a member, join Pennsylvania Restaurant & Lodging Association today by calling 800-345-5353 to take advantage of these great offers:

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Pennsylvania Restaurant & Lodging Association100 State Street, Harrisburg, PA 17101800-345-5353•www.prla.org

It is mission-critical to ensure

that every member of your

foodservice staff understands

what they must do to handle

and prepare food safely.

WELCOME NEW MEMBERS

Restaurant Members10.09 KitchenBedford, PA

17Th Street CafePittsburgh, PA

Arooga’s Grille House & Sports BarHarrisburg, PA

Arooga’s Grille House & Sports BarYork, PA

Bado’s Pizza Grille & Ale HousePittsburgh, PA

Barnaby’s Of West ChesterWest Chester, PA

B. BraunBethlehem, PA

Bella CenaHermitage, PA

Carson City SaloonPittsburgh, PA

Casa Italia Pizza & PastaLincoln University, PA

Casey’s DrafthousePittsburgh, PA

Chart House PhiladelphiaPhiladelphia, PA

Chris BozakisEaston, PA

Country Barn LLCLancaster, PA

Dragon FirePittsburgh, PA

Eagle Restaurant & BarHarrisburg, PA

Easy Street PittsburghPittsburgh, PA

Flying Hills Cafe & GroceryReading, PA

Freddie’s II Restaurant & LoungeBethel Park, PA

Front Street FountainMedia, PA

Mrs. Gibble’s Candies & RestaurantGreencastle, PA

Grand ConcoursePittsburgh, PA

Hershey Road Family RestaurantHarrisburg, PA

Hollywood CasinoGrantville, PA

Infinito’s Pizza BuffetHanover, PA

Infinito’s Pizza BuffetHarrisburg, PA

Infinito’s Pizza BuffetLancaster, PA

Infinito’s Pizza BuffetLebanon, PA

Infinito’s Pizza Buffet York, PA

Isaac’s Famous Grilled SandwichesMount Joy, PA

Jacks Steak and ShakesWest Chester, PA

Jane G’s RestaurantPhiladelphia, PA

Kelly’s CafeCoatesville, PA

Landry’s RestaurantsHouston, TX

Lang Restaurant Group dba Steel City SamichesIndiana, PA

La VeronaKennett Square, PA

Le CastagnePhiladelphia, PA

The Lodge At Tussey MountainBoalsburg, PA

London GrillPhiladelphia, PA

Nine on NinePittsburgh, PA

The ManorHarrisburg, PA

McCormick & Schmick’sPhiladelphia, PA

McCormick & Schmick’s — Piatt PlacePittsburgh, PA

McCormick & Schmick’s — SouthSidePittsburgh, PA

Meat & PotatoesPittsburgh, PA

Morton’s Of ChicagoKing of Prussia, PA

Morton’s Of ChicagoPhiladelphia, PA

Morton’s Of ChicagoPittsburgh, PA

OffCenter GrillYork, PA

Olive or TwistPittsburgh, PA

Pappy T’s Pub & LoungeHamburg, PA

Publick House Restaurant and TavernWyomissing, PA

Quaker Steak & LubeJohnstown, PA

Reading Terminal Market Merchants AssociationPhiladelphia, PA

Reading Terminal Market Merchants Catering Co.Philadelphia, PA

Red Robin — CollegevilleCollegeville, PA

Romeo’s Pizzeria & Mediterranean KitchenIndiana, PA

Sheetz, Inc.Altoona, PA

Side Bar RestaurantWest Chester, PA

Slack’s HoagiesWillow Grove, PA

The Soda Jerk DinerHummelstown, PA

Square BarWest Chester, PA

TreVi Pizza Pasta BYOBGlenside, PA

Urban TapPittsburgh, PA

Valozzi’sGreensburg, PA

Valozzi’s PittsburghPittsburgh, PA

Windsor Dining RoomSkytop, PA

Winthorpe & ValentinePhiladelphia,PA

XochitlPhiladelphia, PA

Allied MembersA+ Insurance Agency1000 Nationwide DriveHarrisburg, PA 17110Andy Jiang

A-Tech Refrigeration and Mechanical474 Hickman Street ExtensionBridgeville, PA 15017 Jim Dunlay

Brakebush Brothers, Inc.N4993 6th DriveWestfield, WI 53964Steve Male

Butera Beusang Cohen & Brennan630 Freedom Business Center, Suite 212King Of Prussia, PA 19406J. Kenneth Butera

Chorus Communications, Inc.210 Church Street, Unit D Philadelphia, PA 19106Mike Barkovich

Clean Currents1528 Walnut StreetPhiladelphia, PA 19102Dylan Straughan

Comfort Profit Consulting Inc.745 Hill RoadHegins, PA 17938Dan Comfort

Conference Center At Central Penn CollegePO Box 309Summerdale, PA 17093Kevin Karczewski

EA Consulting Group 303 Vine Street #101Philadelphia, PA 19106Eric Arnold

First Niagara Risk Management 125 Hillvue LanePittsburgh, PA 15237Jason Corrado

Fisher & Phillips LLP201 King of Prussia RoadWayne, PA 19087Brent Cossrow

Giannascoli & Kent722 Springdale DriveExton, PA 19341Thomas Kent Jr.

GreenBrand Services57 Hamilton CirclePhiladelphia, PA 19130Lorenz Coates

Heineken USA230 Kent RoadSpringfield, PA 19064Jarett Raffel

High Impact 2, Inc.171 Fifty Acre RoadJohnstown, PA 15904Grace Markum

HOODZ of Scranton/Wilkes Barre1812 Tingley Lake Road New Milford, PA 18834Kevin Gerland

Mark Bakos and AssociatesPO Box 20003Scranton, PA 18502Mark Bakos

New Age Financial Consulting LLC985 W. Bristol RoadWarminster, PA 18974Julia Nikishina

Penn Jersey Paper9355 Blue Grass Boulevard Philadelphia, PA 19114Steve Lettero

Philadelphia Gas Works800 W. Montgomery AvenuePhiladelphia, PA 19122Jonathan David

Pro Signs251 Boot RoadDowningtown, PA 19335Jack Protesto

Reading Terminal Market Corporation51 North 12th StreetPhiladelphia, PA 19107Brent Cossrow

Rodgers Insurance Group651 Holiday DrivePittsburgh, PA 15221Laura Wehar

Smartsite Strategies610 West Main StreetLigonier, PA 15658Ray Speicher

The Social Merchant503 South 5th StreetPhiladelphia, PA 19147Jason Morgan

Sprague Energy2308 Shepherd DriveNorthfield, NJ 08225Michael Koob

Lodging MembersHigh Hotels Ltd.Lancaster, PA

Hilton Garden Inn Pittsburgh —CranberryCranberry Township, PA

Microtel Inn & Suites Hamburg, PA

Midway HoldingsBethel, PA

TravelodgeLancaster, PA

VisitPittsburghPittsburgh, PA

Wilkes-Barre Motel AssociationWilkes Barre, PA


40+ State Lodging and Restaurant Associations

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