New Overtime Rules Are Coming Faster Than You Think

New Overtime Rules Are Coming Faster Than You Think

Restaurants could be forced to change the way they pay managers in just a few months as the federal government moves forward on new rules that dramatically expand who is eligible for overtime.

Earlier this week, the U.S. Department of Labor sent its final set of overtime rules to the Office of Management and Budget, a mandatory step that precedes publication of those final rules.

“The OMB has 30 to 90 days to review the rules, after which they will be published,” said Elizabeth Washko, an attorney in Nashville, Tenn., with the Ogletree Deakins labor and employment firm. After that, employers will have 60 to 90 days to comply.

Add it all up and restaurants have three to six months to figure this out.

However, it will most likely be closer to the three-month mark. According to Washko, “they’re pushing to have that done earlier than expected.”

The rules do not require an act of Congress, but there is an incentive for the Labor Department to get the rules out sooner rather than later – the prospect that the November election could usher in a new administration that stops the change.

The final rules are not yet known. But, as proposed, they would dramatically increase the weekly pay threshold for those who can be classified as exempt, from $455 per week to $970 per week, or from $23,660 per year to $50,440.

That would make the lowest paid 40 percent of the workforce eligible for excess pay if they work more than 40 hours a week.

The rules could have a significant impact on employers’ costs and management strategies. The National Retail Federation has estimated that it would cost retail and restaurant businesses $745 million to comply with the new regulations.

“I think it’s going to cost money in the long run for most restaurants,” Washko said. “Some restaurant companies will handle it more effectively and mitigate costs.”

In a note this week, Piper Jaffray analyzed several restaurant and retail companies and listed their average pay for store managers, based on numbers from Glassdoor. The analysis listed several chains that pay their unit managers less than $50,000 a year, on average.

Those chains or their franchisees, which include Dunkin’ Donuts, Burger King and Noodles & Company, could be required to hike pay for managers for them to qualify as exempt from overtime rules.

On the flip side, companies like Del Frisco’s Restaurant Group Inc. and Ruth’s Hospitality Group Inc. that operate upscale concepts would be less affected because their managers are paid higher wages and would be exempt under the rules.

Washko said that companies could reclassify unit managers as non-exempt and then pay them overtime wages. The problem with that is that unit managers work a lot of overtime.

“Exempt managers work hard, and they work hard for good reason, because of incentives, bonuses and things to make the restaurant more successful.”

“They’re either going to have to bump them up to the new minimum or reclassify them as non-exempt, which may result in overtime,” she said.

The National Retail Federation expects that the new rules will affect 2.2 million retail and restaurant workers, and that 32 percent of those would actually be converted to hourly.

But 21 percent of the affected workers would have their base wages lowered to reflect the number of hours they work, so even though those employees will get overtime, they won’t be paid more.

Washko believes that such a move could impact a restaurant’s morale. “It feels like a demotion,” she said. “You’re having to clock in and out and watch your hours. It could affect morale.”

Another potential concern is that the final rule could say something about the type of work that managers do.

Washko said the final rule could include a “duties test” that would govern how much basic labor managers are doing. The idea, potentially, is that managers must spend most of their time managing and not cooking food or serving customers.

“It’s hard to know anything concrete until we know the final rule,” she said.

Still, in the meantime, operators can prepare for the rules by getting a sense of what managers do, their job descriptions and what they do during a typical day. She also said restaurants should collect data for exempt managers and figure out how many hours they work in a typical week.

This article originally appeared on Nation’s Restaurant News.

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How To Avoid Burnout For Hospitality Managers

How To Avoid Burnout For Hospitality Managers

Hospitality management is one of the most rewarding fields in the industry, with the potential for strong earning power, industry accolades and public recognition for a job well-done. With all of its benefits, however, the field is definitely not all sunshine and rainbows. The challenges of a busy work environment, long (and odd) hours, and dealing with customers nonstop could easily lead to a career rut. But it doesn’t have to. Here’s the 411 on staying focused and engaged in your hospitality management position

Make learning a career-long endeavor

One of the best aspects of being in hospitality management is that there is always more to learn. Why’s this an advantage over other careers? Because, as a manager, it’s actually part of your job to learn as much as possible. Not only will it advance your career, it will also keep you stimulated at work. Plus, staff will appreciate you all the more!

There are a few ways to go about this. The first is with experience, so spend time alongside those working in areas beyond your own. Shadow them, ask questions and get to know their day-to-day responsibilities, the challenges they most often face and the roles they play in the business as a whole.

The second is with good old-fashioned studying. After all, there are some things that are best learned in a classroom setting. The most up-to-date standards and practices, trends in guest expectations, marketing innovations and business strategies are just a few of them. While you most likely don’t have the time to actually go to a traditional school, you can easily access areas of interest with online courses or free classes.

Pro-tip: It can be hard to get the ball rolling on continuing education, so choose an area that you’re actually interested in and think you’ll enjoying learning more about.

Enlist the help of a mentor

This tip is as relevant to the industry veteran as it is to the newbie because there is always someone who has more experience, more expertise or is just outright better (in a good way). So, take advantage of their know-how by developing a mentor-mentee relationship.

Whether it is official or casual, reach out to someone whom you respect and admire, and make checking in with them a regular habit.

This person can be a great source of knowledge and advice, especially when you hit a rough patch because they likely had a similar experience. Another benefit of cultivating this type of relationship is the possibility of a recommendation, formal or not, from a verified source that has industry clout.

Be the best you can be

Yes, it’s a slogan for the army, but it’s also a great piece of advice to keep in mind while on the job. Why? Because it means you’re working towards a goal. This equates to purpose, focus and motivation. Basically, it keeps work interesting.

This requires more action on your part than you think.

Yes, do the very best at every task and go above and beyond to take on new unassigned responsibilities. But also, engage with the industry at large outside of working hours as well as during them. Attend conferences and networking events, read trade publications and engage in industry-specific social media groups. Not only will you excel in your career, you’ll also meet great people along the way.

Keep lines of communication with other staff wide open

A surefire way to that career rut is by being in conflict with coworkers. The best way to keep this from happening is by communicating openly and honestly with both owners and more senior managers as well as colleagues and employees that are in more junior positions.

Keeping everyone on the same page by sharing as much work-related information as possible will go a long way toward preventing problems that miscommunication can cause. Give clear instructions and directions, ask for clarifications and explanations from other staff when necessary and address concerns and problems promptly.

Whatever you do, do not avoid the difficult conversations because this tactic will always make things worse in the end.

Make good hiring decisions

Taking the time to hire the right people for every position is especially important in the hospitality industry where the job performance of every person is evident not only to co-workers and management but also to guests and reviewers as well.

While taking shortcuts may seem to save time initially, the consequences of failing to hire competent, qualified, honest employees will be the time wasted cleaning up the metaphorical messes that they make.

Take the time to complete a thorough interview process, find the funds to pay the salaries that qualified candidates command and do not hesitate to fire employees who have proven themselves to be incapable, untrustworthy or unreliable. This will pay off in the end and save you plenty of those headaches that inevitably lead down the road that you’re trying to avoid.

The hospitality management field is ripe with long-term opportunity for those professional men and women who are not only willing to put in the effort to excel but also the effort to remain engaged. By following the tips above, any manager can get started down the path to continued job satisfaction and success.

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Getting ServSafe Certified As Efficiently As Possible

Getting ServSafe Certified As Efficiently As Possible

Food and beverage safety is the number one priority when running a restaurant, especially a successful one. That means making sure your managers, service staff and bar staff are trained and that their certifications stay up-to-date.

Enter ServSafe, the most popular food and beverage safety training program in the industry. Accepted in every state, it’s the obvious choice in terms of training resources. Now, you just have to figure out when and how to make sure your employees get ServSafe certified and that’s where we come in…

Here are the pro-tips to ensure your staff has all the training they need:

Create a schedule for everyone to get certified routinely

The ServSafe certificate is good for 5 years. In addition, many states mandate that you get re-certified once every certain number of years. For instance, California wants recertification once every 5 years, in Utah it is every 3 years, and Alaska is every 5 years.

No one expects you to keep track of all your employees hire-dates in your head, so have a schedule up in your break room that shows re-certification dates by hire date. For instance, if you hired 3 people in 2014, all three get a training day together in 2017.

Pro-tip: Make sure managers are also on the schedule, since many states (Rhode Island and California, for instance) mandate that a manager certified in safe food handling is always on site when food is being prepared.

Let technology be your friend

ServSafe has online courses that allow employees to take classes in the comfort of the break room or their own living rooms. Online courses make it easy to get new hires certified quickly and lets you work around everyone’s busy schedules.

To make things even more convenient, you can request eCertificates.

Students can request that the PDF file of the certificate be emailed to them immediately after they pass the exam, which means that you can have the proof of their training displayed right away.

Get all your certificates at once

ServSafe certifies in food safety for managers, food safety for food handlers, responsible alcohol serving, and allergen safety. Their website also has links to National Restaurant Association programs for food management professionals.

Line everything up at once so you don’t have to keep track of different expiration dates and which certificates you are missing.

Make sure everyone passes the first time by offering study help

Honestly, some people don’t take tests well. They may be fantastic Chefs and Managers, with sterling records regarding safety and sanitation, but they have a hard time taking notes or they freeze at the word ‘exam.’

Remind your staff that if anyone needs a little assistance in note taking or understanding questions, you’re more than willing to help, and that ServSafe has links to quizzes and other study guides.

This way, your world-class employees can spend more time doing their jobs and less time fretting about a test.

Food safety certification is mandatory in most states and counties. These tips will make complying with these regulations easy and efficient, and will keep your establishment focused on producing good food, instead of keeping up with paperwork.

 

5 Interviewing Tips for Smart Hiring in the Hospitality Business

5 Interviewing Tips for Smart Hiring in the Hospitality Business

The world is saturated with advice for job seekers in the hospitality industry about how to come out of interviews ahead when seeking new employment, and as any manager who has held more than one round of interviews can confess, that shows. However, smooth talk and instant likability during the interview don’t always translate to the workplace. So how can management see past the shine to choose the best possible person for a position? We’ve got the answer…

Here are five tips for smart hiring in the hospitality business:

 

Determine whether or not the candidate has done his or her research

Hiring managers often begin an interview by telling the candidate about the business, both its history and current positioning in the industry. Instead of going traditional, break the mold and ask the candidate to explain what he or she knows about the company.

Candidates who have put in the extra work to learn as much as possible about the company prior to the interview are more likely to go above and beyond when it comes to time to work. Not to mention, it’s a good sign that the candidate is interested in actually working for you and not just finding a job.

Ask interview questions about job-specific tasks

Hospitality is sometimes unpredictable, so it’s essential for employees to show overall good judgement, quick decision-making, and flexibility. However, a large portion of any hospitality job is predictable, which allows you to get a glimpse at how candidates would approach their daily tasks.

Start by asking general questions that touch on part of the position for which the candidate is interviewing. After a few of these, move on to more specific questions having to do with the same topic.

You’re not only testing their ability to handle the job, but also their sincerity by opening up the opportunity for inconsistent answers.

For example, part of a general manager position is firing employees, so start by asking questions about handling conflict in the workplace. Then transition to specific questions about firing responsibilities and handling confrontation.

If a candidate is either unable to answer your questions or inconsistent in their responses, it’s unlikely they’ll thrive in the position.

Test the candidate’s industry knowledge

Even the most experienced interviewers can’t weed out all unqualified candidates solely based on resumes, so count on some slipping through the cracks. Most often, these are enterprising problem solvers desperate for any job at all who have no prior experience in hospitality.

Thankfully eliminating these candidates can be as simple as quickly quizzing each person who sits in the interviewee chair on basic industry knowledge.

For example, nearly anyone will be able to explain what a server does during service, so skip to what’s behind-the-scenes. Ask about the post-service tasks to gain decidedly more insight about the candidate’s true level of industry know-how.Discuss industry trends

 

Discuss industry trends

Another type of candidate to look out for is the person who does have industry experience and is qualified, but who does not want a career therein for the long-term. While it may be more difficult to ascertain this than other factors, it’s an important piece of information. So how to tell?

A candidate who is serious about a successful future in the hospitality industry should be able to speak about current trends and latest news.

Ask which of latest industry innovations he or she is most excited about. But don’t stop there. Also inquire about what trade publications or events the candidate has found to be the most and least helpful in his or her career and which connections have been the most fruitful.

Someone who is unable even to name a trade magazine, for example, probably does not view hospitality as his or her permanent field. Finding this out now will save the company time and money on repeating the hiring and training processes in the future.

Ask Other Staff For Impressions

It is natural that every job candidate do his or her best to make an excellent impression during the actual interview. However, good behavior doesn’t always extend to the waiting room or with other employees not conducting the interview.

Asking other staff members who had a chance to interact with candidates before or after the interview can therefore provide valuable insight. This alternate perspective can reveal what would otherwise remain unknown and lead to more informed hiring decisions.

 

It is never possible to completely eliminate the risk of hiring someone who turns out to be ill-suited in the long-run. But, by following the tips above, every hiring manager can make the most of his or her time with each candidate and increase the likelihood of choosing the best possible person for the job.

 

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Create A Motivational Environment For Your Restaurant Staff

Create A Motivational Environment For Your Restaurant Staff

One of the biggest challenges in the food and beverage industry is hiring qualified and capable employees and keeping them around for the long run. The average day in the life of a food and beverage worker can be stressful, and using motivational techniques to inspire and support your staff will not only improve the quality of work but also increase the liklihood that they’ll stick with you.

Use these tips to incorporate a dose motivation into the daily management of your staff and watch them succeed!

Focus on the positive

Have you ever had a manager who put a spotlight on everything that was going wrong during the pre-shift meeting? Nothing beats people down more than only hearing about the things they have done wrong. The things that your staff needs to improve upon do need to be addressed, but addressing them in a constructive way is more likely to have a positive effect.

Try the “sandwich” technique. Begin by talking about some positive things you have seen in your employees. Maybe celebrate the successes of each individual employee. Then discuss things that need improvement. Then, conclude by thanking your staff for their hard work. By sandwiching the negative between two positives, your staff will feel encouraged, instead of discouraged.

Keep the acknowledgement coming

Have ongoing acknowledgement programs, like “Employee of the Month”. Designate an area in the back of the house where the successes of your staff members can be posted. If a customer writes a good review of your restaurant or the staff, post it there. Regularly update the postings, making sure to rotate through the whole staff.

Have daily goals

Create daily goals for your staff to work towards. Do you manage a steakhouse? Offer a reward to the server who sells the most of a certain type of steak. Does your restaurant specialize in fine wine? Set a wine sales goal for the server who has the highest wine sales.

The reward can be anything from a free meal to a gift card. Make it interesting by creating teams, and having your employees work together to achieve a goal.

Set monthly goals as well

If your daily goals are for a small reward, create a larger goal for the entire month. For example, set a goal for the staff member with the highest monthly sales, with nothing under a certain amount. The reward could be something like a $500 bonus or a paid day off.

Set up a continuing education program

If your employees feel like you care about them, it will show in the quality of their work. Investing in their future by offering further job training and education shows them you care, and it will increase the likelihood that they will stick with you long-term.

Provide opportunities to cross train within your restaurant, and if promotion is possible, try to do it from within.

Get your hands dirty

In a restaurant’s busiest moments, it’s easy for a manager to shout out for someone to cut lemons or roll silverware, but that may send the wrong message to your staff. Show them that you aren’t above tasks like these.

When it’s obvious a staff member could use an extra pair of hands, roll up your sleeves and help out. One of the characteristics of a good leader is to lead by doing not by telling.

Feed your staff

If you have ever worked as a server or cook, you know often it is that you go an entire shift without getting the opportunity to sit and eat. Provide these short breaks for employees to grab a bite if possible.

For shifts that are really busy, bring in breakfast, lunch, or dinner every now and then. This is another way to show your employees that you care, and they won’t have to try to get through a shift on empty stomachs!

The food and beverage industry is a stressful, but rewarding one. By following these tips, you’ll motivate your staff and encourage them to work towards being a valuable part of the team!

 

 

5 Ways Mentorship is Transforming the Restaurant Industry

5 Ways Mentorship is Transforming the Restaurant Industry

Mentorship not only opens the door to opportunities that would have never before been accessible, it can also propagate change on a broader scale at the industry level. One such mentorship program is the James Beard Foundation’s Women in Culinary Leadership Program, awarded to women who are aspiring to careers in the culinary industry.

Cindy Pawlcyn, chef and owner of three restaurants in California, is one of the established restaurateurs providing mentorship and leadership training to grantees through the 2016 program. Cindy, along with Minneapolis restaurateur Kim Bartmann — of Barbette, The Third Bird, Pat’s Tap, and many more concepts — explains how they see the role of women evolving in this industry and how mentorship can help.

“There’s not that many women who stick with this business. The more mentoring they get, the more helpful it will be for them to be successful and stay with it long-term.”– Cindy Pawlcyn

Create a supportive kitchen culture

Kim started her career as a line cook in restaurants in Minneapolis. “I had a couple of bad experiences, especially being a woman in the kitchen in the ’80s,” she says. “I quit and vowed I would never work in a restaurant again.”

Eventually, Kim found her way back to the industry when she opened a coffee shop with a friend, and now she has eight restaurants. But early on she struggled to be taken seriously by some of her male colleagues, especially when she became an expeditor and had to tell everyone else what to do. She points to “the usual butt pinching” and the fact that at that time, there were almost no women in the kitchen at all.

Cindy knew she wanted to be a chef when she was as young as 13. She took cooking classes, catered, attended trade school at night throughout high school, and eventually graduated college with a hotel and restaurant management degree. When she was 28 she opened her own restaurant, Mustards Grill, in Napa. “Everybody told me I couldn’t do it because I was a woman,” she recalls. Having to endure name calling and other discriminatory behavior, Cindy says, “some wouldn’t believe it now, what happened in those days.”

When she applied to the Culinary Institute of America, she was told they had filled their quota of women for the next three years and advised to reapply then.

Now, Cindy says the door is opening for women, but she’s still eager to see more women finding success in this business — and that’s where mentorship can help affect change.“I think it’s good for our restaurant community if everybody could have someone that they’re bringing up. When you start being more in a teaching and nurturing and developing mindset to this one person, it spreads to all the rest of them. It’s a good culture.”

Reward people who work hard and want to learn

When asked how they managed to achieve success in the environment of those early days, Cindy and Kim have similar answers: they put their heads down, worked hard, and learned as much as they possibly could.

For Kim, that meant becoming familiar with new ingredients and learning to execute the same dishes and techniques perfectly every time. “The only way you can get that skill set in a kitchen is by having a mentor, a chef, or a teacher teach you how to do it – on-the-job training,” she says. “And to be able to utilize a mentor, you have to be willing to accept the help and learn from other people’s mistakes and successes. Those are rare people in the world.”

Cindy advises not to leave a job before you’ve learned everything you can from that place. “People come in with a pre-determined, ‘I’m going to work here six months or a year and a half,’ but it doesn’t really matter how long it is. It matters how much you get out of that experience.”

Offer real-life training for a broad range of skills

Grantees under Kim will have a program tailored to their goals, but she hopes to mentor someone who wants to learn about multi-unit management, her area of expertise. As manager of eight sets of chefs and front-of-house managers, she offers a unique perspective into the business and operations of a restaurant group.

Similarly, Cindy looks forward to teaching someone how to grow food for a restaurant in Mustards’ garden. They will learn how to harvest, order and plan ahead, work all stations in the front and back of house, work with all of the managers, and build their wine experience by working with local wineries. “I think you have to take the time out of your day to put somebody under your wing, versus just having them work a station,” Cindy explains.

“You have to teach them how your mind thinks and how you make a decision. You have to say how you’re going to do this and why you’re going to do it that way.”

She sees younger team members who come on board and don’t understand what the restaurant business really is — those who just want to be a TV chef. They don’t have management skills or know how to make the business profitable or cost recipes. “You don’t learn that in school, you learn that on the job and facing real day-to-day experiences.”

Make yourself a better, stronger leader

Young chefs aren’t the only ones who benefit from a mentoring relationship; As Cindy and Kim explain, there are massive rewards for the mentors, too. Once you’re explaining your thought processes and nurturing your team, you begin to reexamine and refine your techniques, which is always healthy for the team and the business.

“When they come in and go, ‘why do we do it this way?’ You’ve got to figure out why we do it this way,” says Cindy, because “maybe there is a better way.”

Provide the knowledge and confidence to achieve goals

Kim and Cindy both have benefitted from the support of mentors throughout their careers. Kim opened her coffee shop by maxing out her single mother’s credit card. Later on, she participated in a benefit dinner and was introduced to four female leaders of the Minneapolis food and wine scene: Brenda Langton, Lynne Alpert, Pam Sherman, and Nan Bailey.

“All of the sudden I had somebody to call when I had a really difficult question or a problem that I couldn’t figure out. That can be a really powerful thing, to have that assistance.”

Working with mentors like Rich Melman and Julia Child, Cindy built the skill set and confidence she needed to succeed. Julia taught her to stand her ground, to cook good food, and to use good ingredients. Rich has advised her every time she opened a restaurant; she would call him with questions or challenges (and still does).

She learned to trust herself even when others assured her she wouldn’t succeed. “That’s important, to be able to have confidence in yourself and go out on your own,” she explains, remembering making the decision to walk away from her business partnership of 22 years. “They would mess with me and say, ‘On your own you’re not going to be very good because you don’t know how to do this and that.’ In the end, I knew how to do all that stuff.” And it was because of mentorship.

The James Beard Foundation’s Women in Culinary Leadership Program provides aspiring female chefs and restaurateurs the chance to work with some of the industry’s most influential leaders, building in-depth skills in the front and back of house. Now in its third year, the program aims to break through the glass ceiling of the culinary world. Now accepting applications through February 8th. Learn more and apply here.

This article was originally posted on Open For Business.