$ ave Big this summer ENERGY-SAVING T IPS FOR RESTAURANTS
2016 Foodist Awards WINNERS
THE MAGAZINE OF THE ARIZONA RESTAURANT ASSOCIATION
From lowering overall costs and winning big amongst peers, this industry is no stranger to highs and lows. This issue of Arizona Restaurant News provides a mid-year review of both legislative and culinary accomplishments as well as savings and security tips to keep you thriving through the summer.
4250 N. Drinkwater Blvd., Suite 350 Scottsdale, AZ 85251 P 602.307.9134 F 602.307.9139 azrestaurant.org
or may have seen a promo on Fox10 or on the radio – either way, I hope that whether you were participating as a restaurant or a consumer, that you had a great experience and are looking forward to Fall.
We are an industry of innovators, visionaries and forward-thinking individuals. The past few months have brought changes to our industry both here in Arizona as well as nationwide.
Next up is Arizona Breakfast Weekend, being held July 28-31, when Arizona restaurants get a chance to showcase their best breakfast fare this summer and consumers enjoy a chance to rise-n-dine. On the political front, we are continuing to fight at both the city and state levels to address Arizona’s minimum wage and employment laws –
“The only constant in life is change.” This quote could not be more reflective of our industry as a whole. We are an industry of innovators, visionaries and forward-thinking individuals. The past few months have brought changes to our industry both here in Arizona as well as nationwide. In April, we celebrated our 4th Annual Foodist Awards, a true celebration of all things food and beverage related in our great state. We honored those who have put Arizona on the map and continue to cultivate and create the food and beverage culture that Arizona is known for. We also saw two Arizona ProStart teams head to nationals in Dallas the last weekend in April and though they did not come home with a trophy, they returned with invaluable feedback and experience that will help carry them through their culinary careers. The 2016 Spring Arizona Restaurant Week (ARW) just wrapped up and had stellar participation and media coverage – you may have seen buses driving all around the Valley promoting ARW
by no means an easy task. The state legislative session has wrapped up for the year, however our work is far from done. We continue to work on ballot initiatives, ADA lawsuits, voter education and press on in ensuring the most positive of changes for Arizona’s restaurant industry. As your association we continue to ensure that our members are kept up-to-date and educated on all of the changes taking place that affect our industry.
Steve Chucri President & CEO, Arizona Restaurant Association
message from chairman
serve as Chairman of the Board of Directors for the Arizona Restaurant Association, serving as the political voice for the state’s restaurant industry to ensure the industry’s continued success.
Knowledge is Power
The ARA serves as a resource for new or expanding
Our voice has to be heard when decision on city, state and federal policies are being made – it is important that the political and business leaders of our state understand that
Feature restaurants, communicates our needs and ideas to elected officials and initiates or monitors any legislative activity that impacts our businesses.
It is safe to say that to own or manage a restaurant has its fair share of challenges. Here at the Arizona Restaurant Association, we try to remove obstacles, challenges or regulations that might be in the way so you can focus on your restaurant’s prosperity. In addition to that, try to ensure that our members have an understanding about the policies that impact our businesses, families and futures. The ARA serves as a resource for new or expanding restaurants, communicates our needs and ideas to elected officials and initiates or monitors any legislative activity that impacts our businesses. The ARA Political Action Committee (PAC) is dedicated to funding issues and candidates that hear, observe and respect the needs of our industry. Arizona’s restaurant industry is leading the country for year-over-year sales growth. We are creating more job opportunities than any other state for the next decade. I would say that is something to be proud of and something we must cherish and protect. I am proud to
our industry matters. The ARA’s advocacy efforts are instrumental in ensuring that we have the ability to grow, expand, compete and hire the exceptional talent we all need in our restaurants. I encourage everyone in the restaurant industry, especially members, to learn about and get involved with the advocacy efforts made by the Arizona Restaurant Association. Without the focus on advancing policies, issues and candidates that have our industry’s perspective, we wouldn’t have a seat at our own table.
Sincerely, Shane Hitzeman Shane Hitzeman
CRESCENT CROWN DISTRIBUTING 1640 W BROADWAY RD. MESA, AZ 85202 CUSTOMER SERVICE 480.685.2000 CRESCENTCROWN.COM
brush title tbd national prostart invi ational
National ProStart Invitational Represents at the
The 15th Annual National ProStart Invitational was held in Dallas, Texas April 29 – May 1, 2016.
Two teams from Arizona attended with Mountain View High School battling it out for the Culinary Champion title against 46 states and DODe teams while Sahuarita High School faced 42 Management teams at the competition. The National ProStart Invitational is the country’s premier secondary school competition focused on restaurant management and culinary arts. Annually, 350 student competitors put their skills to the test in front of industry leaders, NRAEF Trustees, state restaurant associations, and family and friends - all with hopes of earning a coveted scholarship from one of the nation’s premier culinary and restaurant management programs.
Here’s a closer look at what this competition is all about:
Winners Awards The Arizona Restaurant Association is pleased to announce the 2016 Foodist Awards winners. Held on April 21, 2016 at the Showcase Room Tempe, the Foodist Awards honor the culinary minds that have helped shape Arizona’s vast culinary landscape.
This year’s winners:
Food Pioneer – Honors a lifetime of outstanding culinary excellence that continues to educate, inspire, entertain and foster a deeper understanding of the culinary culture in Arizona. • Joe Johnston (Liberty Market, Joe’s Real BBQ, Joe’s Farm Grill)
Uniquely Arizona - Home to some of the oldest documented food traditions, Arizona has a rich culinary past steeped in
tradition. We are searching statewide for the restaurants that embrace not only the local food but are staples of the state.
Lon’s at the Hermosa
Food Pioneer Award Recipient Joe Johnston
Top Chef – Pays tribute to outstanding culinary excellence, breaking new ground with an innovative menu while enhancing the dining experience.
Kevin Binkley (Binkley’s, Bink’s Midtown,
Bink’s Kitchen + Bar, Cafe Bink)
Innovative Restaurant Concept – Recognizes a restaurateur or restaurant group who demonstrates that they don’t follow trends; they define them, setting the bar in restaurant operations and the overall customer dining experience.
Outstanding Multiple Location Restaurant – Honors a culinary concept with multiple locations, demonstrating
exceptional achievement and commitment to excellence in marketing, menu design and customer service.
Foodist Awards 2016
Emerging Restaurant of the Year – Honors promising up-and-comers that demonstrate exemplary talent, showcase innovation and have already distinguished themselves as pacesetters in food, beverage and service.
Restaurant Employee – Recognizes the front or back of house employee that has set the gold standard for exemplary customer service and enhancing the overall dining experience.
Laura Baldassarre, Employee (Wildflower Bread Company)
Premier Cocktail Program – Recognizes an outstanding restaurant or bar that demonstrates excellence and innovation in their cocktail program.
Premier Beer Program – Recognizes an outstanding restaurant or bar that demonstrates excellence and innovation in their beer program.
Premier Wine Program – Recognizes an outstanding restaurant or bar that demonstrates excellence and innovation in their wine program.
Good Neighbor – Recognizes the outstanding community leadership and exceptional devotion to making a difference in our neighborhoods and community at large.
Outstanding Food Truck – Recognizes outstanding achievement in mobile nourishment, operations and community development.
Chef Wade’s Bistro on Wheels
Best Dish “Dessert” – Honors the restaurant that quite simply does it best.
Sumo Maya (Tres Leches)
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Skip Chase & Chianne Hewer Arizona Restaurant News orders off the menu and gets to know those that work in, support and lead Arizona’s restaurant industry in a different way… Off the Menu
Skip Chase Vice-Chairman of the Arizona Restaurant Association
Chianne Hewer Public Affairs & Communications
Manager at the Arizona Restaurant Association
What is your go-to restaurant in Arizona?
Been on a make my own salad kick so lots of sweet tomatoes. For burger night, Liberty Market; great quality, great options, and great vibe.
Olive and Ivy, Postino’s, or Oreganos
What is in your fridge right now?
Left-overs from Isabella’s, ground turkey and taco fixings, eggs and cheese
Steel cut oats and all different kind of berries. I eat them every morning.
Home cooked or dine out?
Dine out more often than eat at home. After working in restaurants all day, I don’t cook at home for myself. If the whole family is going to be there, I’ll put the time into it.
Dine out, without a doubt!
Salty or sweet?
Both! More often sweet, though.
YES [to both]! Like salted caramel, find ways to put them together. Had some salted fudge in Sedona last month.....amazing.
South African Bobotie
Favorite childhood dish?
Favorite dish was and still is my Mom’s meatloaf, mashed potatoes, corn fritters, and German chocolate cake. Growing up, one of the treats was to pick our birthday dinner (not a lot of restaurants in area I grew up in). I always picked this. Still use my mom’s meatloaf recipe at the diner.
IT’S OUR BUSINESS TO BRING PEOPLE TO THE TABLE.
Legislative session is officially over and here is quick wrap up on statewide issues you should know that impact your business: The Arizona Legislature has adjourned Sine Die Fifty-Second Legislature, Second Regular Session: May 7th, 2016 5:45 A.M.
restaurants . If you are a Restaurant Series 12 liquor license holder, you can now apply with the Department of Liquor Licensing and Control for a BEER GROWLER TO GO PERMIT . That’s right! With this approved permit, restaurants would be able to sell growlers to go of your customer’s favorite beer!
HB2579 Nonwage Compensation
This bill defines and clarifies what constitutes “benefits”. We defined it as nonwage compensation because there are MANY things outside the hourly wage that employers offer their employees as compensation. Therefore, minimum wage is defined as the NONDISCRETIONARY hourly financial gain, but nonwage compensation is defined as the DISCRETIONARY other type of benefits. This bill preempts any city or local municipality from regulation your business on employee scheduling . Many cities in other states have started this type of regulation – where you would receive a penalty for changing any employee’s schedule within two weeks of the change. We all know in our business that changing of schedules comes with the job and this bill protects you from any local regulation. HB2191 Employee Predictive Scheduling
HCR2014 Minimum Wage Ballot Referral
We are deeply saddened and disappointed that our solution to address Arizona’s minimum wage law did not make it through the final of the legislative process. This bill would have sent an alternative option to Arizona voters in the fall that was a much more business friendly approach to wage law. We know that there is a huge hype and a lot of propaganda around high minimum wage hikes around the country, and we believe this was a truly balanced and realistic approach for voters. The ARA will continue to fight minimum wage hikes at the local levels as well as address the statewide proposals on your behalf.
SB1373 Liquor Omnibus
This bill makes many technical changes and adds clean up to the entire section of statue related to liquor law, however, the reason you should know and care is a new change coming for
National Restaurant Association Public Affairs Conference Recap
Members of the Arizona Restaurant Association joined the National Restaurant Association for their annual Public Affairs Conference on April 11-13th. We heard from leaders and pioneers in our industry, followed by a day of meetings with our Congressional delegation.
Thank you to our members who traveled to D.C. to represent Arizona’s restaurant industry!
Shane Hitzeman | Burger King/Pride Restaurant Group Skip Chase | Chase’s Diner/Taco Bell
Dennis Lechner | Taco Bell Mark Peterson | Taco Bell Raveen Arora | The Dhaba Clara Arora | The Dhaba Louis Basile | Wildflower Bread Company Kristina Hogan | Outback Steakhouse
Managing Costs in Your Restaurant
The Importance of Financial Information
You might ask…how do I save on some of my restaurant costs? It might be the CPA in me, but I believe the first step is making sure you have accurate financial information that you are receiving and this information needs to be received in a timely manner. The financial information needs to be accurate and timely so quick changes in restaurant operations can be made. Time is money and taking too long to make a change will cost you money. On the flip side, inaccurate financial information will lead you down a path of making a wrong decision that could impact customer satisfaction and indirectly cost you money also. Next, look at the largest expenses on your financial statements. That’s likely going to be food costs and labor costs. These costs need to be managed on a daily basis since they are the significant costs being incurred to operate your restaurant, and saving 1% of these costs can translate to big savings.
Running a profitable restaurant takes a lot of time and energy. You have to consider a lot of variables in making sure your business is operating effectively and efficiently while also turning a profit. One aspect that is a must in ensuring profitability is monitoring costs on a daily basis. Saving just 1% of costs can have a significant impact and translate into a significant increase in your bottom line.
Managing Food Costs
There are many things that can be done to manage food costs. These can range from managing vendor relationships, to controlling the size of food portions to menu reengineering to adequately price and layout your menu.
By: Brian Campbell, CPA, Partner, Henry & Horne
Vendor Relationships. Restaurants will enter into vendor agreements for the purchases of food. These vendor agreements can be negotiated, signed and forgotten. There needs to be an active review of all vendor invoices to ensure pricing negotiated as part of the agreement is being adhered to. Food portions. When preparing plates, make sure that the cooks and food preparers are measuring portion sizes. Serving eight ounces versus six ounces results in increased food costs. If larger portions are going to be served, consider reviewing your menu to ensure items are priced correctly based on portion sizes being served.
Menu reengineering. You need to know the profit being earned on each menu item so you can adequately price out the menu.
Menu layout. Knowing the profit on each menu item also aids in ensuring that the menu is properly laid out so the most profitable menu items are catching the customer’s eye the most. Managing Labor Costs One major area you can tackle in managing labor costs is taking a look at when your employees are working. Allowing employees to work when a restaurant is not busy will eat into your bottom line. Adjusting hours worked by employees by one or two hours is a start in managing labor costs during off peak hours. Food and labor costs, when combined, can range from 60% to 70% of sales revenue. So, you can see focusing on managing these costs will go a long way to ensuring you are increasing profitability in your restaurant. Managing Utility Costs Outside of food and labor costs, utilities are probably the next significant cost that should be monitored. In bathrooms and storage areas, lighting that automatically turns on and off
can result in savings. Energy efficient light bulbs i.e. compact fluorescent bulbs, T8 lamps and electronic ballasts, and LED lighting should also be used throughout your restaurant. When available, look to install or replace equipment with high energy efficient restaurant equipment. Another way to save on utilities is to just remind employees of basic common sense practices, such as only running the dishwasher when completely full and turning off fans and lights when not in use. Taking small steps like those discussed in this article can easily lead to saving at least 1% on each of the above three costs lines on your financial statements. A savings of 3% can easily translate into at least a 10% increase in your restaurant’s bottom line. Start today to implement some of the above items to be on your way to an increase net income in your restaurant. Brian Campbell, CPA, is a Partner at Henry & Horne. With over 20 years of experience, he provides audit and accounting services as well as business advice for his clients in the restaurant industry. Brian can be contacted at (480) 839-4900 or email@example.com.
Remodeling, expanding or adding a new location? to see how you can save your restaurant money. Click Here
Henry &Horne is one of the largest locally owned accounting firms in Arizona with offices in Tempe, Scottsdale and Casa Grande.
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$ave Big this $ummer Energy-Saving Tips for Restaurants
In today’s economy, restaurant managers are giving every item in the operating budget close scrutiny – including energy. For food service facilities, energy is not just another cost of doing business, but an opportunity to save money and increase profits. According to the Energy Information Administration, restaurants are the most energy-intensive commercial buildings in the United States. Per square foot, restaurants consume nearly three times the energy of the average commercial building. Up to 80 percent of this energy is wasted on heat and noise generated by inefficient appliances, HVAC systems, lighting and refrigeration. Understanding how restaurants use energy specific to the local climate zone is important when considering ways to reduce electricity use to become more efficient.
How does your business compare to the typical energy use for a restaurant in the Valley?
10% 8% 4%
Ventilation, 4% Other 8% Water Heating 10% Lighting 14% Refrigeration 16% HVAC 18% Cooking 30%
Source: US Energy Information
Getting Started SRP offers rebates, facility audits and training to help your business save energy and money. Whether it’s replacing inefficient equipment, upgrading HVAC controls and maintenance, or installing LED lighting and signage, SRP Business Solutions provides a wide range of options to help lower your energy costs.
SRP customers can receive up to $300,000 per year in energy-efficiency rebates. For more information, or to find a certified contractor in your area, call (602) 236-3054. Energy-Saving Opportunities Below are a few simple solutions that are a good place to start. For even more energy-saving ideas unique to restaurants, visit savewithsrpbiz.com .
Some of the most popular rebate measures, used by local restaurants include: • Gaskets • DC fan motors for walk-ins • Network thermostats • Lighting • Strip curtains • HVAC • Economizers • Evaporative coolers
Restaurants tend to operate with narrow profit margins and have pretax income that is 4 to 7 percent of total revenue. Achieving just a 20 percent reduction in energy costs can translate directly into an additional 1 percent in profit.
No-cost and low-cost improvements
Potential system savings*
Replace dimmable incandescent light bulbs with higher-efficient lighting such as LEDs Install smart or programmable thermostats to schedule automatic overnight setbacks, instead of setting by hand Use ceiling fans when occupied to maintain comfort Keep newer refrigerators and freezers filled; empty and disconnect older ones Clean refrigerator and freezer coils every three months Replace cracked or warped refrigerator or freezer gaskets or hinges Turn off appliances and equipment when not in use
Up to 35%
Up to 2%
Up to 1%
Source: E Source
Up to 1%
Up to 1%
Not only will efficiency updates cut costs, there are added benefits that will impact your bottom line like improved comfort, better lighting, increased employee productivity and an enhanced dining experience for customers resulting in more repeat business.
Up to 2%
Up to 2%
*Savings percentages represent achievable savings within the system/technology, not the total utility bill.
Top 5 Energy-Saving Tips for Restaurants
1. Update lighting: Install T8 or T5 lamps and electronic ballasts . If your facility uses T12 fluorescent lamps , re-lamping with the latest T8 or T5 lamps and electronic ballasts can cut 35 percent off the light portion of your lighting bill. Adding specular reflectors, new lenses, and occupancy sensors or timers can double the savings. Paybacks of one to three years are common. 2. Replace equipment: Purchase ENERGY STAR ® qualified appliances to replace worn-out cooking, refrigeration, and dishwashing equipment. Qualified models contribute to a cleaner environment by using less energy and water than conventional commercial food service models. Often times, energy-efficient models require less upkeep and maintenance, further reducing life-cycle costs. 3. Add fan controllers to coolers: Nearly all walk-in coolers have forced-circulation evaporators that contain motorized propeller fans. These fans run continuously, despite the fact that full airflow is only necessary part of the time. Inexpensive
walk-in cooler controllers are now available that slow these fans when full cooling capabilities are not necessary. 4. Perform maintenance and repairs: Keep lights clean. Inspect refrigerator, freezer, and hot-food holding cabinet doors. Repair controls. Inspect the water heater. Check the economizer on the AC. 5. Turn things off: Turn off lights and equipment in storage areas such as walk-in coolers. In the kitchen, encourage your staff to turn off equipment when not in use (i.e. back-up fryers and idle broilers and high-temperature dishwashers). Doing this can save hundreds of dollars per year in energy costs.
Exclusive health care pricing and solutions for Arizona Restaurant Association members
Together, the National Restaurant Association (NRA), Arizona Restaurant Association (ARA) and UnitedHealthcare offer special advantages for your ARA member business: } Health care reform guidance and solutions around the Affordable Care Act } Exclusive savings on group medical plans and specialty benefits for NRA/ARA members } Wellness programs and services } Bilingual resources for Hispanic/Latino owners, operators and employees Save with rate discounts up to* 5 on Medical Plans 5% on Specialty Benefits *Some restrictions apply. %
Find out what the ARA and UnitedHealthcare can do for your business. Visit uhctogether.com/ara. For more information, contact your broker or Clinton Wolf at (312) 348-7064 or firstname.lastname@example.org.
LOOKING FOR WAYS TO LOWER YOUR ENERGY COSTS? Think SRP business rebates. When it comes to wanting to save money and energy, you’re not alone. SRP Business Solutions offers a variety of rebates for all kinds of energy-saving equipment — from refrigeration and window lm to lighting and cooling. If there’s a way to save on your energy bill, chances are SRP has a rebate to make it happen. So stop thinking and start saving with SRP.
Because health care is a top concern for businesses like yours and to help meet your needs, the Arizona Restaurant Association (ARA) and the National Restaurant Association (NRA) are working with UnitedHealthcare to provide easier access to health care coverage and related products and services. UnitedHealthcare, the ARA and the NRA offer an exclusive program to members, featuring the following: • Up to a 5 percent discount on medical rates for fully insured groups with 51 or more eligible employees • Annual invoice credit of up to 5 percent on administrative fees for new ASO medical products for self-funded groups with 100 or more eligible employees • Up to a 5 percent discount on specialty benefits products (dental, vision, life and disability) for fully insured groups – in addition to all other discounts including the Packaged Savings ® program • Wellness programs and services aimed at helping people live healthier lives Exclusive Health Care Pricing and Solutions from UnitedHealthcare
• Access to the National Restaurant Association Notification Tool , which helps employers meet the exchange notification law requirements from the ACA with notice templates from the U.S. Department of Labor and the ability to track employee health care law verification records • Latino Health Solutions resources and tools for Latino/ Hispanic owners, operators and employees through UnitedHealthcare’s PlanBien ® program • Lower-cost “preventive” medical plans that meet minimal essential coverage requirements for the Individual Mandate under the ACA for self-funded groups with 100 or more eligible employees The NRA and the ARA chose to work with UnitedHealthcare because of its wide range of innovative products and services to address the diverse health care needs of hospitality industry employers, employees and their families. Some restrictions apply; and discounts may vary by location and group size. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through a UnitedHealthcare Company. Interested in learning more? Visit www.uhctogether.com/ara.
Sponsored by United Healthcare
the value of customer service
Feature Create A Culture of Service From the onset of hiring, the expectation needs to be set that customer service is important. Staff observe how others currently treat customers, including owners. They take cures from those things. Creating a culture of service means that everyone from the chef to the kitchen staff to the servers should be on board. Implementing training programs that help teach and reward staff for excellent service and attentiveness makes a big difference in a restaurant’s culture. Manage Wait Lists and Reservation Customers want to know up front what to expect. Keeping things timely and service oriented involves being honest with customers and staying on track. Avoid the urge to overbook thinking more money can be made if the appropriate staff are
When it comes to setting yourself apart, customer service is key. It can make or break a patron’s experience in a restaurant. In a competitive market, excellent customer service is essential and the great thing is that it just requires setting an expectation among staff that customers are paramount. Here are five tips taken from restaurant owners with whom we work that will help keep customer service in the forefront. Customer Service The Value of for Bars & Restaurants
By David DeLorenzo, Bar & Restaurant Insurance
not in line to handle the overflow. You may manage to service a lot of people in one evening, but if they are disappointed in the service or the timing they might not return. Be Friendly This sounds simple but it’s amazing how many times we all have had experiences where we went out looking to relax and be served and we had to deal with a cranky waiter or bus boy. While everyone has a personal life and we all have challenging days, encourage staff to leave those issues at the door and put on a positive persona. When staff are encouraged to take pride in their job and they are also treated in a friendly and positive way by others within the establishment they are more likely to pass that happiness on to customers. Ask For Feedback Asking patrons for feedback is a great way to find out what kind of experience they are having. Ask specifically about their service experience, what they enjoyed and what could be done better. Share comments with employees, both positive and constructive. Work as a team to make improvements.
Show Customers Appreciation
Patrons who frequent your establishment on a regular basis are extremely important. Show them that by extending a few perks. Consider comp’ing them a free meal, drink or dessert on occasion. Tell them you appreciate their business. Small tokens on appreciation go a long way. Give staff the green light to do this occasionally with loyal customers. They will feel empowered and also develop positive relationships with their repeat customers. Commit to excellence in service and your restaurant will benefit. At Bar and Restaurant Insurance, we have a great appreciation for the staff at the restaurants we frequent and insure. As our way of saying thank you, as a sponsor of this year’s Arizona Restaurant Association Foodist 2016 awards, we created a special honorarium for an outstanding employee. This year, Laura Baldassarre of Wildflower Bread Company was awarded $500 for her excellent in service. Congrats to her and thanks to the ARA for allowing us to show our appreciation and create this award!
DiD You Know? Water conservation is a rising challenge for the foodservice industry. kitchens are responsible for the majority of water usage within a foodservice operation. ecolab is committed to help increase water savings, protect water resources and improve operational efficiency.
water savinG tips
SAVE uP tO 154,000 Gallons OF WAtER PER LOCAtiON PER yEAR
51,000 gallons DiShroom SavingS } Rinse Jets / Arm Assembly 1 } Apex™ One-Pass Cleaning 2 28,000 gallons hanD hygiene SavingS } Syncra™ Hand Hygiene System 3 40,000 gallons equipment SavingS } Point-ofEntry Water Softeners 4
1 Operation running 350 racks per day. 2 10% rack reduction in an operation running 350 racks per day. 3 CDC study. Assumes avg. of 4 food handlers use 1 gal per wash. 4 Operation running 700 covers per day at 5 gals per cover, with 12 grains water hardness. 5 Use of 60 minutes per day. 6 Water running for 33 minutes a day. 7 Assumed 1 application per day with in a 1,000 sq ft size restaurant kitchen. 30,000 gallons Sink SavingS } Low-Flow, Pre-Rinse Spray Valves 5 } Low-Flow Faucet Aerators 6 5,000 gallons Floor care SavingS } Sanitizing Wash ‘N Walk™ 7
contact your local ecolab associate today to learn more. call 1.800.35.clean for more information
Don’t Let EMV Chargebacks Cut into Your Profits With EMV in full swing in the U.S., chargebacks have been on the rise—especially for restaurateurs. Following a successful co-hosted webinar with National Restaurant Association on the basics of chargeback management and best practices last month, we discovered a second installment was in high demand. By Heartland Payment Systems
The webinar took a deeper dive into the rules of EMV and chargebacks and what you can do to avoid them. If you weren’t able to join us for the presentation, we’ve summarized the high points here to help you better understand chargebacks and the liability shift. Why EMV, Why Now? Protecting yourself against counterfeit fraud is one of the main benefits to implement EMV because it’s virtually impossible to recreate the chip. The October 1, 2015 shift has caused some serious headaches, but the ultimate goal is to fix the p yment ecosystem by heightening card security. There is, however, a glitch—if your equipment isn’t EMV-compatible, then use of a fraudulent EMV card can go undetected. Here’s how it works: Fraudsters take the magnetic stripe information from a stolen EMV card and create a non-EMV forgery. However, the magnetic stripe information still identifies the card as EMV. If one of these forged cards is presented and swiped on an EMV-enabled terminal, the magnetic stripe data tells the terminal that this is an EMV card and notifies the cashier to dip the card in the EMV slot. The cashier would then attempt to dip the card and notice the absence of the chip. Fraud averted. With an EMV reader, fraud is virtually impossible unless your terminal tells you to override and swipe—which would then put the liability on the issuing bank.
EMV cards also decrease the chance of a data breach before hackers can get into your system and steal card information to make fraudulent cards. Chip cards store data in a more sophisticated, secure way than the magnetic stripe. If a hacker broke into your business’s EMV-enabled system, they would only obtain an encrypted version of the data—completely useless to fraudsters. The U.S. was the last developed country to adopt EMV. But the alarming rise of fraud in this country made implementation essential. Other countries have seen a decrease in fraud since EMV’s arrival. Disputes—What’s Different After October 1, 2015? EMV has designated dispute codes. The kind of fraud that EMV solves has always existed, but most merchants weren’t aware because it was the responsibility of the card issuer. Now the party with the least secure technology is liable, so merchants are seeing more of these codes on their chargeback statements. If a merchant doesn’t have a working EMV reader, then they can’t dispute a chargeback that appears under this code—even if the merchant has evidence the customer was present. Another issue is “friendly fraud”—also called chargeback fraud. In this instance, customers fraudulently use the chargeback
process to secure a refund. Consumers illegitimately dispute a transaction with the bank instead of contacting the merchant for a refund. In short, there’s nothing “friendly” about this type of fraud. In addition, friendly fraud is very difficult to prove. A few ways to protect your business include requiring a signature for goods delivered to your customers, asking for the credit card verification code or creating/participating in a blacklist database that tracks customers frequently getting refunds on purchases. Chargeback Trends The tidal wave of chargebacks has been occurring across all types of markets and states, but there are a few industries and regions that have been the hardest hit since the liability shift.
Top Merchant Categories: • Petroleum/inside sales • Restaurants/bars • Quick Service/vending High Risk Areas: • TX, NY, CA, FL, IL, NJ •
Large cities/populated areas
Foreign cards/border areas
There are some common fraudulent activities you should be looking out for when an EMV card is used. If you notice the same individual is using multiple cards, that should be a red flag. Keep your eye out for large orders. Many times, if fraudsters are going to steal, they want to get the most value they can with one purchase. Another common type of fraud is presenting gift cards that are actually EMV cards. Fraudsters are stealing numbers and instead of making magnetic stripe credit cards, they’re making gift cards. In essence, the sooner you can process EMV cards, the better protected your business will be. Best Practices If You Don’t Have EMV If you decided not to update your equipment, there are some best practices and ways to identify counterfeit cards. Make sure the receipt matches the card and verify the last four digits, expiration date and name. Also, compare the signature and facial features to the cardholder’s ID. To learn more about ways to spot a counterfeit card, click here . Bottom line: The safest bet to protect yourself from chargebacks is to upgrade to EMV. If you do have an EMV terminal, always process chip cards as chip transactions and swipe non-chip cards. If a card is declined, ask for another form of payment—do not re-swipe or override.
What Heartland Does to Protect and Warn You About Chargebacks
Makes sure that reported cards are closed
Monitors for issuer/customer abuse and looks for patterns
Monitors for incomplete or incorrect disputes
Visit Heartland’s EMV page if you’re still on the fence about upgrading your equipment. If you would like to watch the entire webinar, click here .
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Energy creation. Recycling programs. Closed-loop solutions. All to keep your business moving forward.
Ener y creation. Recycling programs. Closed-loop solutions. All to keep your business moving forward. Energy creation. Recycling programs. Closed-loop solutions. All to keep your business moving forward.
Energy creation. Recycling programs. Closed-loop solutions. All to keep your business moving forward.
Energy creation. Recycling programs. Closed-loop so All to keep your business moving forward.
These are just a few of the innovations we’re delivering for customers and communities alike. We live in a world where things can no longer go to waste. That’s why Waste Management is ensuring that we get the most from our existing resources. It’s good for business and the environment. For more information visit us at wm.com.
Using ServSafe reinvests in the ARA These are just a few of the innovations we’re delivering for customers and communities alike. We live in a world where things can no longer go to waste. That’s why Waste Management is ensuring that we get the most from our existing resources. It’s good for business and the environment. For more information visit us at wm.com. These are just a few of the innovations we’re eliv ring for customers and communities alike. We live in a world where things can no longer go to waste. That’s why Waste Management is ensuring that we get the most from our existing resources. It’s good for business and the environment. For more information visit us at wm.com.
For more information, please visit ServSafe.com.
Proud of the company we keep
For more information, please contact Angela Ihry 605.940.9861 or firstname.lastname@example.org heartlandpaymentsystems.com
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