Ideas!

1. Ideas!

2. Dealing with a Higher Minimum Wage

3. A Diverse Industry • Table Service Restaurant • Fast Casual Restaurant • Quick Service • Buffet or Other Style • Full Service Hotel • Focused Service • Limited Service • Resort with Food • Housekeeping Resort • Campground • Other

4. One Wage Wasn’t Enough! • Large Employer > $500,000 • Small Employer < $500,000 • Training Wage • Youth Wage • International Student Wage

5. The Change that Keeps on Changing • Increased on August 1, 2014 • Increases on August 1, 2015 • Increases on August 1, 2016 • Indexed for Inflation in 2017

6. Impact on Jobs Average Employees Per Restaurant 2013 USA 17.65 MN 18.84 OR 14.29 WA 14.43

7. Large Employer • 2014 $8.00 • 2015 $9.00 • 2016 $9.50

8. Small Employer • 2014 $6.50 $7.25 • 2015 $7.25 • 2016 $7.75

9. Training Wage • August 1, 2014 $6.50 $7.25 • August 1, 2015 $7.25 • August 1, 2016 $7.75

10. Youth Wage • August 1, 2014 $6.50 $7.25 • August 1, 2015 $7.25 • August 1, 2016 $7.75

11. Summer Work Travel Wage • August 1, 2014 $7.25 • August 1, 2015 $7.50 • August 1, 2016 $7.75

12. Proposal for a Tipped Tier • Coalition and partners working on recognizing tips as income for over 20 years • Proposal for a tipped employee tier came close in 2013-14 session • Major effort to pass this in 2015 • $8.00 an hour for those earning $12 an hour or more with tips and wages

13. Survey: Adjustments to $9.50 • Increase prices 90.1% • Reduce staff hours 76.6% • Postpone investments 68.5% • Postpone hiring 58.6% • Layoff current staff 31.5% • Reduce open hours 15.3% • Close locations 16.2%

14. Pricing • Menu prices – across the board or targeted • Room rates – ROH or targeted • Meeting room charges • AV charges • Service charge levels

15. Operational Ideas • Change the Format • Close on a slow day or days • Hosts? When and how many? • Dining room teams – who does what • Tighter schedules • Housekeeper schedules • Testing technology

16. Service Charges "Gratuities" means monetary contributions received directly or indirectly by an employee from a guest, patron, or customer for services rendered and includes an obligatory charge assessed to customers, guests or patrons which might reasonably be construed by the guest, customer, or patron as being a payment for personal services rendered by an employee and for which no clear and conspicuous notice is given by the employer to the customer, guest, or patron that the charge is not the property of the employee.

17. Service Charges • Clear and Conspicuous Notice • Employee education and buy in • Employees will be explaining this to guests! • Policy for using the service charge • Be prepared for social media

18. Credit Card Fees MR 5200.0080 “Where a tip is given by a customer through a credit or charge card, the full amount of tip must be allowed the direct service employee minus only the percentage deducted from the tip in the same ratio as the percentage deducted from the total bill by the service company.”

19. Section 7 (i)Overtime Exception Hotels, motels and restaurants may levy mandatory service charges on customers which represent a percentage of amounts charged customers for services. If part or all of the service charges are paid to service employees, that payment may be considered commission and, if other conditions in section 7(i) are met, the service employees may be exempt from the payment of overtime premium pay.

20. What Else Are You Considering for Dealing with Increasing Labor Costs?

21. Dan@hospitalitymn.com651-925-4011

22. Thank You!