Restaurant Minimum Wage – What Now?

Restaurant Minimum Wage – What Now?

The Colorado Restaurant Association has been doing great keeping us all up to date in regards to Amendment 70 and how that affects our industry, here is the latest new brought to you by our friends at CRA.

Regardless of how you felt about Amendment 70 (Colorado’s minimum wage ballot initiative), most of you will be impacted by it. We have received many questions from our members about how other restaurants plan to react.

First, to clarify, Amendment 70 is a constitutional amendment that increases Colorado’s minimum wage to $12/hour and the tipped wage to $8.98/hour by January 1, 2020. The passage of this amendment raises Colorado’s minimum wage as follows:

  • January 1, 2017: $9.30/hr. Tipped Wage = $6.28
  • January 1, 2018: $10.20/hr. Tipped Wage = $7.18
  • January 1, 2019: $11.10/hr. Tipped Wage = $8.08
  • January 1, 2020: $12.00/hr. Tipped Wage = $8.98

After that time, wages will increase annually according to the Boulder/Denver/Greeley CPI. They will not decrease in the event of a recession.

What are restaurants doing to cope with these increases?

Each of you will have to determine the right mix of how you will manage this increase. When we surveyed our members on a similar increase in 2015 they responded as follows:

  • 89% will increase prices
  • 72% will reduce hours for employees – ex: keep a smaller staff for traditionally slower times
  • 71% will reduce # of employees – Some restaurants have told us that they are eliminating bussers or runners for example
  • Some may decide to add a service charge
  • Some have mentioned trying tip pooling as a way to help with pay equity

What is a service charge? What is a tip? What is a tip pool? How can I use them legally?

Under both Colorado and Federal law any charge that is automatically applied to the bill and the customer must pay, even automatic gratuities for large parties, is considered a service charge. There are very distinct differences between tips and service charges, here are just a few.

Tips:

  • Are given freely from the customer to the employee, where the customer, in his/her sole discretion, decides whether or not to tip and how much belong to the employee, not the restaurant
  • Management cannot direct the use of that money
  • Sales tax is not applied to a tip

Service Charge:

  • Is anything automatically applied to the bill
  • Is considered revenue of the business
  • Management can determine how the money will be used
  • Funds can be given to the employee but must be done through the payroll system
  • Any money given to the employee from the service charge cannot be counted towards a tip credit
  • Restaurants must collect appropriate sales tax

Tip Pool:

  • Employers may run a tip pool but they must comply with certain requirements
  • The employer must provide written notice to all employees who will be participating in the tip pool prior to their participation
  • Only employees who customarily and regularly receive tips can participate in the tip pool. According to federal law, servers, counter personnel, bussers, and service bartenders can clearly participate.
  • Those that can’t participate are owners, managers, supervisors, janitors, dishwashers, chefs, cooks, and food prep personnel
  • If you are thinking about organizing a tip pool, please contact the CRA to ensure you are administering it correctly

Is there a chance that we can correct the flaws with amendment 70 by altering the tipped wage or adding a learning wage?

We believe that to be nearly impossible. Only one time in the last 100 years was something added to our constitution and later removed – prohibition. In order to change the constitution – as we saw with amendment 70 – we would need to raise millions of dollars just to get it on the ballot – and another several million to educate the public.

For this issue – many of our members who were adamantly opposed to it didn’t give to the campaign to defeat this. Meanwhile, the unions who initiated this have very deep pockets and would fight it heavily.

Going forward…

While this will be a difficult adjustment for a lot of businesses, it is what it is and those who have already started the process will be ahead of the game. It is always a struggle to balance the cost of doing business and providing a fair and liveable wage. We want our staff members to have a good quality of life, but we also want to make sure our doors are open to do so. These are interesting times right now for the industry and despite it all, we will go forward.

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Work Culture: Creating A Place To Love Not Leave

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Sirvo Says: How to Spend Less and Make More in Denver

Sirvo Says: How to Spend Less and Make More in Denver

Denver is one of the best cities in the country to live right now. With a great restaurant scene and numerous events every week, there is a reason why we are #1! All that being said, the city is getting more and more expensive to live in. The rising cost of living can often stand in the way of truly enjoying everything this great city has to offer. With that in mind, we thought we’d offer a few suggestions on how to do Denver right. Let us present, Sirvo Says: How to Spend Less and Make More in Denver.

Drink cheaper

Alright, this is a no-brainer but we suggest taking advantage of all the great happy hours across town. The population boom has been both a curse and a blessing for many restaurants and bars in the area, with some seeing a rise or decline in sales due to more options. One thing is for sure though, they are all competing for your attention. Which means, some of the best value deals this city has ever seen! A lot of places have even extended their happy hour to start as early as 2pm or 3pm. Denverites like to do two things for sure, get out of the house and drink. So, if you’re gonna do it anyway, don’t break the bank.

Do things alone…

It’s great having a large group of friends, there is always something to do and someone to do it with. Sometimes this comes at a cost. For example, how many times have you gone to split the check and someone doesn’t even cover what they owe? Or that one roommate who always says “I’ll Venmo you”, but doesn’t even have the app downloaded on their phone? If you are truly looking to save money when enjoying this great city, do it alone. It will save you a lot in the long run and is the perfect way to show your true independence.

…Or with a friend

Okay, so not all of us are great by ourselves and it is kind of nice to have a partner in crime. But like just one! Having a roommate or someone to split a meal with makes things soooo much cheaper. This means that you can afford more things to do together like, concerts/festivals, events, going out to eat/drink, trips to the mountains etc. Unless you happen to choose a person who can never afford to do anything because then that’s on you. Literally.

Pay less rent

Finding a way to pay less in rent is the key to being able to experience Denver to it’s fullest. There are only a few issues with this though, one you don’t want to live in a slum and two you want to be IN THE CITY! Nothing wrong with the outer burbs (closer to the mountains), but many of us moved here to be around where it’s all happening. Plus it’s a cheaper Uber to the RiNo area than it is to Arvada.

Lucky for us, local groups like Cornerstone Apartments have income restricted units available at The Wheatley. The rent caps at $1202 (including all utilities) and the income is also capped at $44,900 for residents to qualify. Plus all new residents receive a Cornerstone Card that gives you discounts to local businesses. Check out their availability!

Work in the hospitality industry

Working in the hospitality industry allows for a work/life balance with a steady income and a non-conventional schedule. Plus, when you work for a lot of the hotel or restaurant groups that post on Sirvo you automatically get tapped into some of the best events this town has to offer. This is one of the fastest growing industries in the state/country and is quickly becoming a great place to start your career. Sirvo has a ton of great jobs across all professional spectrums. We love our city and we love having the time and the means at which to experience it.

Seriously though, Sirvo is the premier job board for the Colorado hospitality industry. We have the jobs and companies you are looking to work for. The hospitality industry is no longer just a temporary stop along the way to your “real” job, more often than not it is your “real” job and is the type of industry to take pride working in. We work hard, but we play hard too. Check out our job board and start applying today!

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5 Reasons the Hospitality Industry is a Viable Career Path for Millennials

5 Reasons the Hospitality Industry is a Viable Career Path for Millennials

It used to be that men and women in their twenties would work in the hospitality industry only as a temporary job, something to get them through college or to help them transition from part-time work to their “real job”. But things are changing. 

Many millennials are discovering that the hospitality industry is actually a great place to launch their careers. If you’re trying to figure out your career path, or are a manager working on a hiring plan, here are 5 reasons why the hospitality industry is a viable career option for millennials.

1. Social engagement

Contrary to the seemingly obsessive nature with all things technological, members of the millennial generation actually thrive when they are in social situations. The hospitality industry suits this desire for making personal connections and allows for networking opportunities that lead to possible new employment opportunities or social functions.

Many millennials do not want to be tied down to a computer all day long–they would rather spend their day having meaningful interactions. Which is exactly what you would encounter when working in hospitality.

2. We are motivated by our passions, not money

Millennials are unique in many ways, including the desire to have a fulfilling career instead of just working for a paycheck. Millennials are more likely than any other generation to turn down a higher paying job if it isn’t going to fulfill them on a personal level.

The hospitality industry isn’t exactly known for paying out maximum incomes, but it is known for providing a place where workers can grow and thrive. As an industry that provides a work/life balance, a livable wage and an opportunity to continue learning, this could be the right place for you!

The hospitality industry suits our desire for making personal connections and allows for networking opportunities that lead to possible new employment opportunities

3. We want to grow in our careers

Millennials don’t expect to work for one company for 45 years and then retire, like previous generations did. In fact 91% stated they plan on staying at their current employment less than three years. The key here is that they don’t necessarily want to switch companies. They want to grow in their careers, and in many industries, they just can’t do that at one company.

The hospitality industry, though, can be different. There are a wide range of professional opportunities within the hospitality industry that foster professional growth (i.e. Management, Marketing, HR, etc.)

4. We are engaged with what’s happening online

Millennials are very comfortable with technology and interact with it on a daily basis. This can be a huge gain for the hospitality industry, which is starting to catch up to other industries when it comes to being tech-savvy. Millennials can help the hospitality industry move forward technologically by being tuned into how people are using social media, reviews and apps to find restaurants and hotels.

Being tech-savvy can work to your advantage. Especially if you are seeking opportunities in marketing or social media management within the hospitality industry.

Forget everything you read about millennials being a “me” generation. When it comes down to it, we genuinely care about the world and they want to help people.

5. We want to help people

Forget everything you read about millennials being a “me” generation. When it comes down to it, we genuinely care about the world and have a need to help people. We want a rewarding career that allows us to give back to our community. Millennials are not clock-watchers — we don’t want to punch in at 8 and out at 5 just in the name of getting a paycheck.

Motivated millennial employees can take your restaurant, bar or hotel to the next level with their social understanding and tech skills, so don’t underestimate them. And if you’re a millennial employee, don’t underestimate the career opportunities that await you in the hospitality industry. This is a great industry that supports the quality of life that most of us want to have outside of work due to the non-traditional work schedule and the opportunities to make a livable wage. 

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Hotels: A Great Place to Start or Advance Your Career

Hotels: A Great Place to Start or Advance Your Career

If you’re interested in a career in the hospitality industry, a hotel is an excellent place to start. There is a very wide range of entry-level positions that can lead to mid/upper level professional positions. Let’s take a look at the general entry-level jobs available and the possible paths of advancement that each one offers.

Desk Clerk

A hotel desk clerk works a basic, fairly low-impact customer service position that isn’t difficult to get into. Some hotels may ask for prior related hospitality experience or a high school diploma. Very rarely do hotels require any higher education or formal training.

This is a very good position to advance into management as you’ll rapidly learn the hotel’s day-to-day operations. If you’re considering pursuing a career in accounting, another interesting branch is to work as a night auditor. This overnight job retains the functions of the front desk clerk, but with less incoming traffic during the shift, the rest of the time is spent preparing the daily revenue and room occupancy reports.

Hotels have a wide variety of departments…

Administrative Assistant

Hotels have a wide variety of departments in which they require administrative assistants; accounting, development, human resources, legal, marketing, etc. This is yet another area that enables you to quickly learn about day-to-day operations and has room for advancement to a variety of other departments.

Depending on the complexity of the job, the educational requirement for an administrative assistant may be anything from a high school diploma to a related bachelor’s degree. It is a job that can potentially be obtained without prior experience.

Accounting

Accounting work doesn’t differ much in a hotel from what is done pretty much everywhere else; hotel accountants will process financial data, prepare regular reports, manage payroll and conduct audits among other duties. Opportunities exist not just at individual hotels, but at the corporate offices of chains as well. Duties can expand to working with investments, strategic initiatives and business case recommendations.

Opportunities exist not just at individual hotels, but at the corporate offices of chains as well…

Areas to potentially move up include real estate, the supply chain and management of individual hotel locations or regions. These positions will usually require a degree, but there are plenty of entry-level opportunities for new graduates.

Marketing

Marketing is another area in which jobs are available both at the independent and corporate level. Opportunities are particularly rich for those who speak another language and have a deep understanding of cultures that a hotel brand is expanding into.

This position requires a degree, but a wide range of communications, psychology or social studies bachelor’s degrees are often sufficient to secure an entry-level position.

There are plenty of opportunities to advance in a hotel.

Food Service

Most of the world’s top chefs pass through a hotel or resort at one point or another in their careers. This is a great breeding ground for chefs looking to learn traditional cooking techniques.

There are plenty of opportunities to advance in a hotel kitchen and often all it takes is a little luck and timing. Craft your trade, learn from those around you, play your cards right and you may become the next executive chef.

A lot of people do not always look to hotels as having a plethora of professional opportunities. Hopefully, this blog has opened your eyes to some of the paths forward as you look to develop professionally. Regardless of what career path calls out to you, a series of hotel positions always looks great on a resume.

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Why Giving Thanks is Good for Your Career

Why Giving Thanks is Good for Your Career

Soon, we will gather to celebrate Thanksgiving, acknowledging our blessings and giving thanks for our good fortune. It’s a lovely tradition. But this year, why not try to extend the practice of gratitude beyond the Thanksgiving table to the workplace? Most of us rarely give or receive thanks at work, but why’s this the case? In part, there’s the belief that we shouldn’t have to thank people for doing things they’re paid to do. But it’s also because we often feel uneasy about the correct way to say thanks in the workplace. So, in the holiday spirit, here are a few suggestions to help ease the way.

Just say it

Skip the email or text and go tell that awesome co-worker or manager how much you appreciate him or her. But tailor your delivery to the recipient; some people prefer to be acknowledged in private, others bask in public praise. Exactly what you say is up to you, but for the greatest impact, make sure it’s specific, heartfelt and genuine. It’s remarkable how even a few words of praise will help improve your work relationships.

It’s remarkable how even a few words of praise will help improve your work relationships.

Send an e-note

We all complain about getting too much e-mail. But have you ever complained about getting a personalized e-mail expressing genuine thanks? I doubt it.

In his book, The Happiness Advantage, positive psychology researcher Shawn Achor recommends starting your mornings by spending two minutes writing an e-mail of praise or thanks to a different friend or colleague each day. It doesn’t need to be long; just a few sentences will suffice.

Try to do it for at least 21 days (the time it takes to establish a habit). Sending these e-notes will not only increase your happiness, they’ll help broaden and cement your work relationships.

Write a thank-you card

Handwritten cards are an increasing rarity in the Internet age. So the next time you want to show your appreciation to a work colleague or someone in your professional network, consider doing it the old-fashioned way. A thank-you card is a heartfelt way to express your gratitude when a co-worker has gone above and beyond, or after the completion of a huge event or project.

If you’re in job search mode, you should always send a thank-you note soon after an interview, either by e-mail or card. But don’t forget to send a handwritten note of thanks to friends and colleagues who’ve actively helped you during the search, too.

Within every workplace, there are employees who put incredible effort into jobs that few ever notice.

Thank the people who never get thanked

Within every workplace, there are employees who put incredible effort into jobs that few ever notice: the janitor who mops the floors, the admin who perfects her manager’s PowerPoint, the cashier who always remember your lunch order, the temp who answers the phones…

If you’re in a position where you can thank these workers with a raise, bonus or promotion, I urge you to do so. But all of us, no matter what our rank, have the power to make other people feel appreciated. It may not offer a direct payoff, but it’s the right thing to do and good karma is never a bad thing.

So the next time you’re about to walk past one of these workers, stop, chat and express your gratitude. Doing so won’t take much time and will likely prove the highlight of their day — and yours.

Practice gratitude

Beyond expressing thanks to others, it’s equally important to focus on all that you are grateful for in your own life.

Positive psychology research shows that by regularly practicing gratitude you can significantly improve your happiness. This can ultimately pay off for you in your career, since happier people are more productive, engaged and resilient workers. It’s why Achor says, “The greatest competitive advantage you could have is a positive and engaged brain.”

Here are three simple practices to consider:

1. Keep a gratitude journal. Spend two minutes a day making note of at least three new things you’re grateful for and do it for at least 21 days. Positive psychology research has shown that keeping track of what you are thankful for trains your brain to scan for the positives in your life and stimulates production of serotonin and dopamine — the brain’s “feel-good” chemicals. That in turn, reduces feeling of anxiety, stress and helplessness, which is an invaluable aid for navigating an uncertain workplace.

2. Savor happy memories. Rekindling happy moments from the past is a proven way to boost your mood, which, in turn, can make you more productive and resilient at work.

Fortunately, the holidays offer a wonderful chance to share treasured family videos, photos and family stories with loved ones. But you can reap the benefits of savoring fond job-related memories, too. Surround yourself at your workplace with things like photos of conferences you attended or awards you received. Or get together with colleagues to swap humorous “war stories” and remind each other of important accomplishments.

3. Be grateful for what you’ve learned from career setbacks. Nobody enjoys when things don’t go well at work. But you can lessen the pain when you acknowledge their lessons and reframe the losses as potential gains.

A few questions to help you find the silver lining:

  • What lessons did this experience teach me?
  • Can I find a way to be thankful for what I learned or gained from this experience, even though I was initially disappointed by it?
  • What new abilities did the experience draw out of me?

This article was originally published on Forbes.

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