Tag Archives: Restaurants

by | October 22, 2013 · 8:51 am

Hospitality Industry Technology Solutions: Restaurant Companies Use Tablets And New Apps To Increase Efficiency, Consistency And Maintain Order Preparation Performance

“…to encourage kitchen efficiency, managers can also use the order system to set a performance benchmark…at Jason’s Deli, Michael Johnson Restaurant Tablet Technology(a regional manager) said the management has set acceptable order preparation that spans from six to eight minutes for each order. When the order has been in the pipeline for six minutes, information turns yellow on the counter/expo station display, which lets preparers know that customers have been waiting for quite a while and they have less than two minutes to finish preparing it…programming apps for tablets (also)produce analytic reports through orders, which can be sent to the management team at corporate headquarters for review. Technology use can also strengthen communication between franchisors, franchisees, and workers…”

The benefits of using tablets and technology extend beyond just table coverage for companies like Brinker International Inc. and DineEquity Inc., and possibly for Cheesecake Factory Inc. and Buffalo Wild Wings Inc. in the future. Combined with location pinpoint technology like RFIDs (radio-frequency identification), tablets can help servers quickly identify which table orders are coming from.

This will allow servers to spend less time wondering about the location they have to bring dishes to and more time on the actual delivery, giving customers an impression of operational efficiency, reducing cost for restaurant operations, and driving earnings higher. This is even more important when employment level in the United States is weak and people are still trading down to lower cost food. As Dave Praws, executive chef for Blue Lemon LLC says, “We’re able to deliver food quickly and efficiently and, in fast-casual, that’s what we are about. Without that ability, we’d be ‘slow-casual.’”

For more:  http://marketrealist.com/2013/10/restaurants-improve-efficiency-tablets-technology/

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by | October 21, 2013 · 8:48 am

Hospitality Industry Employment Issues: Management Must Have An “Interactive ADA Compliance Process” To Insure “Reasonable Accomodation” Of Employee Disabilities; Conduct “Brainstorming Meetings” To Enable Continued Performance Of Job Duties

“…the interactive process is the name given to the process that an employer utilizes in order to determine the appropriate reasonable accommodation that Americans wih disabilities actwill enable an employee with a disability to perform the essential functions of the position…”

“A primary goal (is a) meeting to determine what problems the employee is having in performing their job tasks because of a disability. This entails soliciting ideas from the employee about what you could provide that would enable the employee to perform his or her job duties…”

If the supervisor who is asked for an accommodation can easily provide one, then he or she should do so as soon as possible. However, to establish that you have engaged in good faith in the interactive process, best practice is to schedule a meeting with the employee, the employee’s supervisor and someone from HR.  In addition to soliciting ideas, you may also suggest solutions. The purpose of this brainstorming meeting is to come away with suggestions to enable the employee to continue working. A couple of suggestions:

  • If the employee has a work-related injury, consider involving your workers’ compensation carrier to determine whether there are any monies from your state workers’ compensation division to assist you in making workplace modifications. In Oregon, such funds may be available through the employer at injury program.
  • If you are not sure of an accommodation, consider calling in an expert. This can be accomplished through a phone call to the Job Accommodation Network (JAN), or you can locate a vocational rehabilitation specialist to assist.
  • If you do consult an outside resource, like JAN, be careful about ensuring confidentiality. Do not disclose the employee’s name and identifying information.
  • Keep an open mind.
  • In choosing the accommodation, it is a good idea to understand the employee’s preference, but the employee does not get to choose the accommodation – the employer does. The law requires only that the accommodation be reasonable. Eliminating the requirement to perform an essential job function is not a reasonable accommodation. The employee must still be able to perform the essential job function with an accommodation. Examples of reasonable accommodations include:
    • Job restructuring
    • Equipment (i.e., sit stand desks, lifting mechanisms, carts, new chairs, modified work stations, etc…)
    • Leave of absence
    • Change in work schedule
    • Job reassignment to an available and suitable job
    • Modified workplace policies

For more:  http://www.lexology.com/library/detail.aspx?g=601d48c8-025b-482a-abf9-4f56bd75c350

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by | October 18, 2013 · 6:26 am

Hospitality Industry Legal Risks: Employers Unaware Of A Co-Worker’s Harassment Are Still “Vicariously Liable” If Done By A “Supervisor”; Defined As Power To Take “Tangible Employment Actions” In “Hiring, Firing, Decisions On Benefits”

“…The enforcement guidance issued by the EEOC interprets broadly which employees should be considered “supervisors” under Title VII. Hospitality Industry Sexual Harassment LawsuitsAccording to the guidance, any individual with the ability to exercise significant direction over another’s daily work is a supervisor, and the employer would be liable for their acts…The U.S. Supreme Court rejected the EEOC’s stance with the 2013 case of Vance v. Ball State University. If the employer is unaware of a co-worker’s harassment, the Supreme Court decided that employers should only be vicariously liable under Title VII for a co-employee’s harassing behavior if the employer granted them the power to take “tangible employment actions,” such as hiring, firing, failing to promote, significant reassignment, or decisions causing significant changes in the employee’s benefits…”

Employers are not automatically liable for harassment committed by all employees. If the employer is aware of harassment occurring and does not take steps to address and stop it, then the employer has some exposure. If the employer is not aware of the harassment, the employer may be liable if the harasser is considered under the law to be a “supervisor.”

Some harassment lawsuits turn on whether the person who was doing the harassing should be treated as a supervisor. A recent Tenth Circuit Court of Appeals decision (which applies to Oklahoma employers), sets some guidelines for what employees are considered supervisors, for purposes of imposing potential harassment liability on employers.

Priess Enterprises operated a McDonald’s restaurant in Cheyenne, Wyoming. Megan McCafferty began working as a crew member on February  15, 2007. Her shift leader was Jacob Peterson. Peterson participated in the restaurant’s “Manager-in-Training” program. He was also responsible for directing day-to-day activities of shift workers like McCafferty. His responsibilities included assigning duties, scheduling breaks, authorizing crew members to leave early or stay late, and writing up employees for misconduct. Everyone agreed that Peterson did not have the authority to hire, fire, promote, demote or transfer other employees.

McCafferty, a high school student, agreed to cover another employee’s shift, but explained to Peterson she would need a ride from school. As promised, Peterson picked up McCafferty from school and checked her out of class early. Peterson told McCafferty that she had been excused from her shift, and asked her if she wanted to “hang out.”

When she accepted his invitation, Peterson offered McCafferty marijuana. Peterson and McCafferty spent the next two days together, which involved alcohol, methamphetamines and sex. Eventually, McCafferty’s sister spotted her, pulled McCafferty from Peterson’s car, and called the police. When McCafferty did not contact anyone at McDonald’s, the restaurant treated McCafferty as having resigned.

McCafferty filed a charge of discrimination with the Equal Employment Opportunity Commission, and later filed a lawsuit against the restaurant and Peterson. McCafferty claimed Peterson was a supervisor under Title VII, and that she had been sexually harassed. McCafferty also included a state law claim, accusing the restaurant of being negligent in hiring, supervising and retaining Peterson.

For more:  http://hr.blr.com/HR-news/Discrimination/Sexual-Harassment/Sexual-harassment-Is-employer-liable-for-shift-lea

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Hospitality Industry Technology Trends: More Restaurants Are Installing “Electronic Payment Systems” As Many Consumers Prefer Self-Service Terminals, Use Smartphone Apps, And Visit Websites For Information

Restaurant Technology Infographic

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by | October 14, 2013 · 9:46 am
by | October 13, 2013 · 6:27 am

Hospitality Industry Legal Risks: IRS Rules That “Automatic Gratuities” Are Now “Service Charges”; Restaurants Must Add To Paychecks As Wages

“…The IRS has signaled its intent to scrutinize auto-gratuity patterns to determine whether they are tips, or if there has been more coercion so it Restaurant Tips And Service Chargesbecomes more of a service charge…rather than receiving automatic gratuities at the end of the night, under the new IRS rule, those payments would be tacked onto paychecks as wages…Darden Restaurants – which operates Red Lobster, Olive Garden, Longhorn Steakhouse Seasons 52, The Capital Grille and other chains – is testing a concept that eliminates 18 percent automatic gratuities for parties of eight or more, and instead leaves tip percentage calculations at the end of a bill…”

Even with automatic tipping, customers have always faced a decision over how much to leave a server. Now, thanks to an IRS ruling, restaurants are being thrown into the debate – and are faced with a decision of their own: Should tipping for large parties be left to the customer or should the restaurant tack it on to the bill?

The IRS ruling, which takes effect in January, will treat automatic gratuities as service charges, rather than tips. The switch means servers will no longer be responsible for reporting those automatic tips as income. And it also means automatic gratuities will be considered a part of a server’s wages, making that money subject to payroll tax withholding and delaying receipt until the next paycheck.

Understandably, many servers aren’t happy about the tax policy, but neither are restaurant owners. The change will create additional accounting and bookkeeping work, because automatic gratuities will have to be factored into hourly pay rates that could vary depending on the number of large parties served by the employee.

The IRS policy change also could mean the loss of an income tax credit, which restaurants receive for paying Medicare and Social Security taxes on employees’ reported tips. Service charges are not eligible for the credit.

For more:  http://www.news10.net/news/national/260375/5/Tip-ruling-could-prove-taxing-to-servers-restaurants

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by | October 10, 2013 · 6:20 am

Hospitality Industry Employment Risks: California Restaurant Found Liable For Over $480,000 In Penalties, Unpaid Wages By EDD; Failed To Pay Minimum Wage, “Split-Shift” Premium

“…(the restaurant) owners are individually and jointly responsible for $108,200 in civil penalties, as well as $373,613 owed to their workers in unpaid minimum wages, overtime pay, rest period, and split-shift premiums…Workers were not paid the state-mandated minimum wage for California Employment Development Departmenthours worked or the one-and-a-half regular rate of pay for overtime hours. Rather, the owners paid in cash: $45 per day for servers and between $75 and $120 for kitchen staff…”

“…The pay rate was further inadequate because it did not reflect the “split-shift” premium, as is required when employees work two or more shifts in a workday with an unpaid break of more than an hour. Workers were not allowed to leave the premises before 2:30 each afternoon when business was closed to the public, and then reported back at 4:30 p.m. for several more hours of work. The investigation also revealed that employers had not kept time records prior to September 1, 2013, or provided staff with itemized wage statements….”

California Labor Commissioner Julie A. Su issued to the owners of a restaurant in Alameda citations totaling $481,813 The citations consisted of civil penalties and wages owed to 13 employees for violation of minimum wage, overtime, and rest period laws. The Labor Commissioner’s joint inspection with the Employment Development Department (EDD) was based on complaints filed in August. The investigation revealed that the cooks, dishwashers, kitchen helpers, and servers employed by Toomie’s Thai Cuisine routinely worked at least 10.5 hours each day, up to 7 days a week.

“The Labor Commissioner is charged with ensuring that employees are paid for all wages they are owed,” affirmed Christine Baker, director of the Department of Industrial Relations (DIR). The Labor Commissioner’s Office, also known as the Division of Labor Standards Enforcement (DLSE), is a division within the DIR.

Labor Commissioner Su stated, “We want to create a culture of compliance where employers profit by playing by the rules and employers who have concluded that it is cheaper to break the law, that the chances of getting caught are slim, and the costs even if you do get caught are minimal know that those days are over.”

Additional information on labor laws and work-related topics are available on the DIR website at http://www.dir.ca.gov.

For more: http://hr.blr.com/HR-news/Compensation/Wage-and-Hour-Investigations/CA-labor-commissioner-cites-restaurant-481813-for–

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by | October 7, 2013 · 5:46 am

Hospitality Industry Employment Issues: Restaurants Increasingly Use “Payroll Debit Cards” To Save Money And Time; Workers Must Be Legally Notified Other Payment Options Exist

For managers, Darden says the cards eliminate two hours of paperwork each pay period. Employees incur no fees if they use their cards at more Hospitality Industry Payroll Debit Cardsthan 40,000 Allpoint ATMs nationwide and make purchases at places that accept Visa cards…They can be a convenient option for workers who don’t have checking accounts, a common situation for many restaurant or retail workers. The National Restaurant Association says 30 percent of industry workers don’t have traditional checking accounts…The Consumer Financial Protection Bureau recently issued a warning to employers that federal law requires other pay options besides debit cards.

In Orlando, companies that swear by the payroll cards include Darden Restaurants, Tony Roma’s, and Smokey Bones Bar & Fire Grill. Nationwide, the number of such cards is expected to more than double in five years to 10.8 million, according to business-research company Aite Group.

The cards save employers money and time. But workers who aren’t careful about where they use the cards can rack up fees, which has put payroll cards under scrutiny. New York’s attorney general is investigating more than 40 companies, including Darden, asking for information about fees and seeking proof that workers know they can receive their pay in other ways.

At Darden, which owns chains including Olive Garden and Red Lobster, new employees automatically are set up to receive debit cards, but they can make a phone call or go online to opt out. Now, 48 percent of Darden’s workers use the debit cards, and 50 percent have direct deposit. Only 2 percent receive traditional checks.

Consumer advocates frown on the automatic signup, saying employees should make the choice upfront. Darden said the cards are more convenient than paper checks, which used to be the automatic payment method.

For more:  http://articles.orlandosentinel.com/2013-10-06/business/os-cfb-cover-payroll-cards-20131006_1_debit-cards-payroll-cards-such-cards

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by | October 6, 2013 · 7:56 am

Hospitality Industry Health Insurance: Restaurants That Are “Applicable Large Employers (ALE)” Must Comply With Affordable Care Act “Measurement Period” Beginning November 1; Workers Classified As “Full-Time” If They Work Over 30 Hours Per Week

Across the country, many restaurant operators are being forced to make a difficult choice: Do they hire fewer employees, reduce the hours of Hospitality Industry Health Insurancecurrent employees or raise menu prices? For some, the answer may be a combination of the three. But regardless of the conclusion they reach, there are no easy solutions…And they’ll have to make those decisions quickly, as the notification period begins in a few weeks and soon the Affordable Care Act will require businesses with 50 or more full-time-equivalent employees to offer health coverage to those employees or face significant penalties.

Without changes, the Affordable Care Act will hurt economic growth and make flexible work schedules for employees more limiting to offer.

The irony is that many restaurant owners already offer health coverage to their full-time employees. However, they define a full-time workweek as 40 hours, which is the accepted definition across most industries. Unfortunately, the Affordable Care Act has redefined “full time” employees as those who work an average of 30 hours per week in a given month. This means that restaurants and other businesses that have always operated as small businesses are now considered “large employers” under the law, and therefore are responsible for health care costs that could reach well into the tens of thousands of dollars.

While restaurant jobs are sometimes unfairly described as low-wage, menial work, the industry is one of the few that still allows employees to prove themselves and work their way up. One in every 3 Americans have worked in a restaurant at some point in their life, and many who work in restaurants chose to do so because of the flexibility in scheduling the industry offers.

This is an industry that accommodates part-time and full-time opportunities. It’s also an industry where people can begin their careers and work life with minimal experience, and learn not only about hospitality and service but also finance, advertising and other business and leadership skills.

Unfortunately, if the Affordable Care Act takes effect in its current form and redefines the full-time workweek as 30 hours, those opportunities could be significantly limited. It very likely means fewer hours for part-time employees and a more rigid scheduling structure.

For more: http://www.rollcall.com/news/obamacares_acute_affliction_on_restaurant_industry_commentary-228092-1.html

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by | September 30, 2013 · 6:21 am

Hospitality Industry Health Risks: Restaurants Must Make Food Safety A “Core Value”; Lack Of “Hand Washing, Food Holding Temperature Controls” Remain Biggest Risk To Customers

“…Hand washing and proper holding temperatures — the basics of food safety — have not changed in 30 years, said Moore of Eat’n Restaurant Kitchen Health RisksPark. The key is keeping the message fresh so that employees pay attention…with a workforce largely under the age of 25, employers need to make sure their messages are quick and easy to grasp. Moore said he relies on lots of colorful visuals, and customized posters, comics, video clips featuring celebrities, games like Pandemic 2, and stuffed-animal germs and microbes are among his favorites…”

Food safety “needs to be part of your core values,” William Moore, director of safety and security for Eat’n Park Hospitality Inc., the Homestead, Pa.-based parent of the 75-unit Eat’n Park family-dining chain, said during his keynote speech. “If it’s not in your core values, your mission statement, then it’s not a priority.”

The symposium occurred against the backdrop of a Cyclospora outbreak that had sickened 642 people in 25 states, leading to 45 hospitalizations but no deaths, throughout the summer. The cause of the outbreak was still under investigation at press time, although a salad mix from Taylor Farms de Mexico served at Darden Restaurants Inc. in two states had been implicated in about 240 of the illnesses.

Tugging at the heartstrings doesn’t hurt either, said several attendees. Al Baroudi, Ph.D., vice president, quality assurance and food safety for The Cheesecake Factory Inc., the Calabasas Hills, Calif.-based operator of 175 upscale casual-dining restaurants, shows his audiences an image of the hundreds of children and adults that have died during foodborne illness outbreaks to drive home the point that lives are stake.

For more:  http://nrn.com/food-safety/7-steps-ensuring-restaurant-food-safety?page=2

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by | September 28, 2013 · 5:56 am

Hospitality Industry Employment Risks: New York Restaurant Settles “Sexual Harassment” Lawsuit For $35,000; Seven Female Workers Subjected To Groping, Explicit Propositions And Lewd Remarks

“…The EEOC’s lawsuit charged that Angelo’s owners subjected seven female employees to sexual harassment from January 2005 through September 2012.  Angelo’s Pizza was purchased by Kefalas in September 2012…in January 2013, Kefalas was added to the lawsuit as a successor EEOCemployer…According to the seven harassment victims, Angelo’s owners, Kostantinos Raptis, Nikolaos Raptis and Andrew Xenos, groped their breasts and buttocks and made sexually explicit propositions and comments, including requests for sexual acts and other lewd remarks…The EEOC further alleged that Kefalas fired two of the women in retaliation for complaining about the sexual harassment…”

Angelo’s Pizza and Grill, Inc. and Kefalas Enterprises, Inc., the former and current owners of Angelo’s Pizza and Grill, a full-service family restaurant located in upstate New York, will pay seven women $35,000.00 to settle a sexual harassment lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

For example, one of the owners would hold a cucumber or orange traffic cone between his legs and simulate sex.  Another forced a female employee into a back storage room, where he shut the door, turned off the lights, touched her breasts and fondled her.  Angelo’s owners also routinely made comments about oral sex and body parts.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964.  The EEOC filed suit, EEOC v. Angelo’s Pizza & Grill, Inc., and Kefalas Enterprises, Inc., 8:11-cv-01043 (NAM) (RFT), in U.S. District Court for the Northern District of New York in August 2011 after first attempting to reach a voluntary pre-litigation settlement through its conciliation process.

Although Kostantinos and Nikolaos Raptis and Andrew Xenos, the original owners of Angelo’s Pizza, are no longer involved in the restaurant, both Angelo’s and Kefalas will be bound by a three-year consent decree settling the suit.  The decree, in addition to the $35,000 monetary relief, enjoins Angelo’s, its principals and any future businesses it may purchase or operate and Kefalas from engaging in future sexual harassment or retaliation.   Kefalas must also put mechanisms in place to protect any future employees from sexual harassment and retaliation.  The decree has been approved by Federal District Court Judge Norman A. Mordue.

“These women were subjected to especially crude and unacceptable conduct,” said EEOC New York District Director Kevin Berry.  “The EEOC will not stop aggressively pursuing remedies for victims of sexual harassment in the workplace.”

EEOC Senior Trial Attorney Judith Biltekoff added, “The victims in this case have shown great strength in standing up to right the wrongs perpetrated against them by their former employer.  They live and work in a small town in upstate New York where jobs are at a premium.  It took courage to come forward at the risk of losing their jobs.  We are pleased that they will be compensated and that future harassment will be prevented.”

EEOC enforces federal laws prohibiting employment discrimination.  Further information about the commission is available on its website at www.eeoc.gov.  The Buffalo Local Office is part of EEOC’s New York District Office which oversees New York, New England and portions of New Jersey.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/9-27-13a.cfm

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