A foodborne illness outbreak can be devastating to an operation, resulting in damaging media exposure, loss of sales, or the worst-case scenario that leads to death.  The average cost of an outbreak to an operation is $75,000 or more.  For most, this would be financially devastating.  It is important for operators to have good policies and procedures in place to help control your risk.  

Let’s start with your HR practices.  The Kansas Food Code requires licensees to educate all employees and conditional employees on diseases that could be transmitted to others through the handling of food.  Food employees are required to inform the person in charge of the following conditions and illnesses so appropriate steps can be taken to prevent the transmission of a foodborne illness.  Staff must report illnesses before coming to work or immediately if they get sick while working.

There are three ways to ensure that staff are educated on these practices.  Your HR process can include utilizing the FDA Model Food Code form 1-A, which outlines the requirements. This form would be included in the employee file.  You could also add information on this requirement to your onboarding process.  The final option would be to have a poster outlining the requirements in your operation. 

Staff must also report history of confirmed or suspected exposure to any reportable diagnosis.  The food code also requires the person in charge to notify Kansas Department of Agriculture (KDA) when an employee is diagnosed with a reportable diagnosis or has jaundice.  This is a priority violation from 2-201.11(A) of the Kansas Food Code.   

Ensuring proper food safety within your operation is no easy task.  Having processes and procedures in place will help you minimize the risk.  If you would like a copy of the FDA Model Food Code form or a poster that you could include in your operation, contact the KRHA office at 316-267-8383 or email ncarlson@krha.org 

Save on your food & lodging license renewal by paying online!   The Kansas Department of Agriculture (KDA), the agency that administers food and lodging establishment licenses, is working to make renewing your license as easy as possible.

Emails with renewal information have been sent to the email addresses on file.  If you have not received an email, it is possible that they have they do not have an email or have an incorrect email on file.  Paper renewals will be mailed in late February. Remember that renewing your license online doesn’t have any service charges. However, starting this license year, renewing by paper will require a service fee of 4% of the license fee.

To pay for the 2017/18 license renewals on-line go to Renewals and click on 'New Account' prior to April 30th.

If you forget to renew by March 31, you can still bring your license current for an additional $25 fee. But, if you don’t renew by April 30, you will have to pay the application fee and possibly face additional civil penalties for operating without a license.

As of the 2017/18 license year, you will receive an e-mail containing your license, at the email address listed in the business account information.  You will need to print this license and post it where it is visible to the public.  If you do not have an email address, your license will be printed on a daily basis from the KDA office.  Please allow 7-10 days to receive it.

Please contact the program at (785) 564-6767 or KDA.FSL@ks.gov if you have additional questions. 

If you have tipped employees, ask yourself the following questions.

•  Do you Tip Pool or Tip Share in your business?
• Are your servers receiving the “tip credit” wage of $2.13 per hour? 
• Does your tip pool include back of the house employees? 
• Is tip pooling required? If it is voluntary, is there a perceived policy where staff “feels like” they have to participate?

If you answered yes to any of these questions, you need to Keep Reading!

The following article provides an overview of current regulation and proposed changes from the Department of Labor (DOL).  If you want to let government officials know how you feel about proposed changes to tip pooling, please follow the link to leave your comments and read what others have to say.  

Operators should confirm that their policies meet DOL requirements to avoid significant fines from an audit.   Recent audits have resulted in fines of $20,000 to over $100,000.  Ensuring compliance begins with understanding what is and is not allowed under current law.  

Current Law:
The DOL has issued the following guidelines concerning the application of the Fair Labor Standards Act (FLSA) to employees who receive tips.

Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)

Tipped employees are those who customarily and regularly receive more than $30 per month in tips.  Tips are the property of the employee.  The employer is allowed to use the tip as a credit against its minimum wage obligation to the employee “tip credit” or in a valid tip pool. 

Tip Credit: Section 3(m) of the FLSA permits an employer to take a tip credit towards its minimum wage obligation for tipped employees equal to the difference between the required cash wage (which must be at least $2.13) and the federal minimum wage.  Thus, the maximum tip credit that an employer can currently claim under the FLSA is $5.12 per hour (the minimum wage of $7.25 minus the minimum required cash wage of $2.13).   The employer is also required to provide oral or written notice to their employees before using the tip credit.  

Tip Pool: The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangements among employees who customarily and regularly receive tips, which as waiters, waitresses, bellhops, counter personnel (who serve customers), bussers, and service bartenders.  A valid tip pool may not include employees who do not customarily and regularly received tips, such as dishwashers, cooks, chefs, and janitors.  

Typical problems:

• Where an employee does not receive sufficient tips to make up the difference between the direct (or cash) wage payment (which must be at least $2.13 per hour) and the minimum wage, the employer must make up the difference.
• Where deductions for walk-outs, breakage, cash register shortages, or cost of uniforms reduce the employee’s wages below the minimum wage, such deductions are illegal.  
• When a tipped employee is required to contribute to a tip pool that includes employees who do not customarily and regularly receive tips, the employee is owed the full $7.25 minimum wage and reimbursement of the amount of the tips that were improperly utilized by the employer.  
  

Proposed Law:
On December 5, 2017, the U.S. Department of Labor published a Notice of Proposed Rule Making (NPRM) regarding the tip regulations.  

Under the proposed rule, workplaces would have the freedom to allow sharing of tips among more employees.  This change would only apply where employers pay a full minimum wage and do not take a tip credit. It would allow sharing of tips through a tip pool with employees who do not traditionally receive direct tips – such as restaurant cooks and dishwashers.  The proposal would not affect current rules applicable to employers that claim a tip credit under the FLSA.  

The Department of Labor promulgated tip regulations in 2011 that restricted this option. Since 2011, there has been a significant amount of litigation involving the tip pooling and tip retention practices of employers that pay a direct cash wage of at least the federal minimum wage and do not claim an FLSA tip credit.  There has also been litigation directly challenging the Department’s authority to promulgate the provisions of the 2011 regulations that restrict sharing of tips.

This NPRM seeks the views of the public on the proposed rescission of those portions of the regulations.  The 30-day comment period for the NPRM was originally scheduled to end on January 4, 2018. However, on December 15, 2017, the Department published a notice in the Federal Register extending this comment period for an additional 30 days, to February 5, 2018. You may submit comments on or before February 5, 2018, at www.regulations.gov or by following the instructions listed in the NPRM as published in the Federal Register.

The content of this article was taken from United States Department of Labor Wage and Hour Division.  

Congress gave American brewers an early Christmas present with the passage of the Craft Beverage Modernization and Tax Reform Act (CBMTRA), which lowers the federal excise tax for breweries, wineries and distilled spirits producers. Passage of the Act is expected to produce $142 million in savings for America’s brewers including $80 million in savings for breweries producing under 6 million barrels annually.

For the first time, the associations that champion beer, wine and distilled spirts rallied together to lobby for lowering the tax burdens imposed on the industry. Championed by Congressional members including Roy Blunt (R-Mo), the Act provides federal excise tax relief to smaller brewers specifically with:

• Lowering the federal excise tax on beer to $3.50/barrel from $7.00/barrel on the first 60,000 barrels for domestic brewers producing less than 2 million barrels annually. All other brewers and beer importers will see a reduction on the excise tax from $18/barrel to $16/barrel on the first 6 million barrels.

• Permitting transfer of beer between bonded brewing facilities without tax liability.

As accountants and consultants to the brewery and brew pub/restaurant industry, we help clients understand how the passage of the CBMTRA will impact them and also work with them to gain the most benefit from the Tax Act .  If you have questions about the impact of this recent change, please contact us.

You can learn more about how we help entrepreneurial brewers with payroll, business and tax advice at mizehouser.com/brewers.  

Ken Hite, CPA, Shareholder, Mize Restaurant Group

The Internal Revenue Service released updated Forms 1094-C and 1095-C for employers to report 2017 information to the IRS and employees under the Affordable Care Act (ACA). The forms must be filed by February 28, 2018 (for paper filers) and April 2, 2018 (for electronic filers). Employers with more than 50 full-time-equivalent employees use the forms to report information on offers of health care coverage and enrollment in health care coverage for their employees. Get the IRS's instructions.

The SBA Office of Advocacy will be hosting a Regulatory Reform Roundtable in Overland Park, Kansas on September 14. We wanted to be sure any of your small business clients are aware of this opportunity to speak directly to the federal government about federal regulations impacting their business.

The purpose of these roundtables is to help us identify specific regulatory barriers to small business growth through first-hand testimony and thereby assist federal agencies in complying with the President’s directive to eliminate burdensome regulations.  

For more details click here.

WICHITA, Kan. (KSNW) – Delano restaurant owners say they’re scared, after one of their own was shot while at work.

Wednesday, Wichita police met with almost a dozen owners to talk safety in the normally quiet area.

It was a packed house at Delano barbecue as neighborhood restaurant owners talked safety.

“It’s been a trend in the industry for quite a while, that we’ve always concerned ourselves with,” said Adam Mills, CEO of Kansas Restaurant and Hospitality Association.

Business owners say there’s been an uptick in crime here in the Delano area. Mills and his team want to make sure the restaurant owners are aware.

“What kind of steps and actions can we take to if not eliminate the risk, lower it,” explained Mills.

Which is why the Wichita Police Department had several officers here at the BBQ joint, in an effort to build a relationship with employers.

Officers like Sgt. Steve Yarberry shared multiple ways these business owners can help prevent armed robberies like the one at Ruben’s Mexican Grill that happened last month.

He tells them to look into increasing security, make sure to keep the back doors locked at all times, even when employees are coming in and out and be on your guard especially during closing time.

“The police department knew Ruben very well, so when that occurred it even shocked our department,” said Yarberry.

But like many others, Yarberry sees the silver lining.

“When bad things like that happen, there has to be a positive out of it, and I think today was a positive because maybe we can prevent that from happening in the future or do something that maybe we can’t have that kind of outcome down the road,” answered Yarberry.

“This being spurred with what happened to Ruben down the street has really raised a lot of awareness with what’s going on,” stated Jon Suddent, Owner of Delano BBQ.

Suddeth says he’s thankful Wichita police is having this conversation with them.

“We’ve tried to make the staff more aware of what they’re doing at the end of the night as far as propping doors open when they run trash and do things like that,” said Suddeth.

Though Suddeth hopes nothing bad happens to him or the rest of his neighbors, he says he’s now prepared for the worst.

Another tip from officers, don’t have pictures or signs covering your windows, because if something is happening inside this restaurant, no one from the outside could see it.

WPD Meets with Delano Restaurant Owners video clip

 Meet the 2017 Restaurant Neighbor Award winners.

We’re pleased to share that Nick & Jake's is a Kansas Restaurant Neighbor Award winner.

Congratulations on being selected as a state winner for this prestigious award!

Kansas

Nick and Jake’s

Overland Park, KS

nickandjakes.com

Nick and Jake’s supports numerous charities and nonprofits. As part of their efforts, they donate 10% of their sales, which amounts to over $2,000 every year. In addition to this donation, the restaurant has raised a total of over $1.5 million in the past six years. They are also the creators of the For the Kids Foundation, which supports Children’s Mercy Hospitals (CMH), and hold an annual golf tournament to support projects that the hospital’s general operating funds are unable to fund such as new ambulances, iPads for long term beds, a Pet Therapy program, and more. The restaurant also is a founding partner in the “Shoot for the Cure” Dinner for Cystic Fibrosis. In addition, the restaurant provides ten $500 scholarships for high school kids that excel in “Community Service.”

Wichita Sports Forum hosts youth sports tournaments upwards of 40 weekends a year.

Those events — many of them for basketball — attract teams and hundreds of people from across the country.

It’s a quick rise for the less than two-year-old sports venue near K-96 and Greenwich.

The full slate of tournaments brings with it the need for hotel rooms and lots of them, often for multiple nights.

Tymber Lee, president of The Lee Cos. and a Wichita Sports Forum developer, says the organization works with local hotels — particularly those in the northeast part of Wichita — to offer group rates and on cross promotion of the facilities.

The expansion of the youth sports industry in Wichita and a more concerted effort to promote tourism in general has made the city ripe for hotel development, observers say.

“Wichita has a lot of rooms and a lot of older rooms,” says Jeff Walenta, hospitality and investment advisor with Landmark Commercial Real Estate.

Hotel developers, he says, are responding to needs they have identified in the market by adding hotel capacity in growing areas of town, such as northeast and northwest Wichita.

National hotel companies expanding their line-up of flags, with brands such as Aloft and Tru, also are presenting new development opportunities locally. Existing flags in many cases also are being reinvented amid changes in consumer preference toward hotels providing an experience instead of just a room in which to stay.

Developers are investing tens of millions of dollars to construct new hotels and add hundreds of rooms to Wichita’s inventory in the process. Millions of dollars more is being spent on renovating existing properties.

With all things equal, “new always wins,” Walenta says.

 It’s all helping to elevate the quality of lodging in Wichita.

An analysis from STR, a Tennessee-based company that tracks supply and demand data for the hospitality industry, shows as of February three hotels under construction will add 350 rooms to the Wichita market. Three more are considered to be in the final planning phase, while six others are said to be early in the planning process. Those projects are expected to add 777 rooms, according to STR data.

Wichita had 126 hotels and 9,508 rooms in February, STR data shows.

Attracting more events

Some view hotel development as a precursor to more events and conventions.

“If you are going to have the events, you’ve got to have adequate supply of rooms,” says Adam Mills, president and CEO of the Kansas Restaurant & Hospitality Association. “It is an important cog in the wheel.”

In 2016, Wichita hosted 524 meetings, conventions and events yielding a $48.5 million economic impact, data from Visit Wichita shows.

That total is expected to climb in 2017 and beyond. Visit Wichita last year confirmed more than 145,000 future hotel room nights, stays expected to generate a $52.6 million economic impact.

Mills says those totals are trending up because city leaders and other stakeholders, such as Visit Wichita, are doing more to promote the city as a destination. Building a new airport terminal and getting rid of the antiquated Mid-Continent Airport is aiding that effort and creating a front door to Wichita, Mills says.

Local attractions and quality dining also add to the appeal of the city, he says.

In many cases, Mills says, developers are responding to consumer demand. That’s reflected in the ability to bring new hotel flags and more contemporary design concepts to Wichita.

“People will call the shots,” Mills says. “You can’t spend money on things that aren’t going to go.”

Other revenue opportunities

New lodging properties also are adding meeting and convention space locally, creating new revenue streams for hotels in an increasingly competitive events business.

Susayn Brandes, CEO of Great Plains Ventures Inc., says event space has been lacking in some parts of Wichita, such as the northeast.

“We’ve been desperate for meeting space,” she says of that part of town.

Great Plains Ventures recently opened a 126-room Aloft Hotels facility at 35th Street North and Oliver.

Already, Wichita State University and Koch Industries Inc. have reserved meeting space for events, Brandes says.

Hotel development sends a message Wichita is serious about promoting tourism, Brandes says.

“It makes us seem more contemporary, more modern,” she says. “If you build something that is different, you have that wow factor.”

Occupancy concerns

The increased supply of hotel rooms has some operators concerned.

Chris Ruffin, who is managing the Hyatt Regency Wichita for his father, Phil Ruffin, isn’t convinced more hotel rooms is what Wichita needs.

“I just don’t want Wichita’s market to be over-saturated, and it’s getting to that point now,” he says.

Hotel occupancy for all of 2016 was 58.1 percent, according to STR. Wichita’s hotel occupancy has hovered around 60 percent since 2011.

The Hyatt will undergo an extensive renovation to modernize the facility — which Ruffin says was going to happen anyway, regardless of other new hotel development in the area.

The plan, which Ruffin detailed for the Wichita Business Journal late last month, calls for improvements to the Hyatt’s restaurant, suites and rooms.

Christine Allen, general manager at the Hotel at WaterWalk, says hotels added to the local market in recent years have made the industry more competitive.

It forces existing operators to evaluate their product, she says.

That can be tougher for independent hotels like the Hotel at WaterWalk because they don’t have the backing of a national hotel flag.

In 2010, the hotel undertook a major renovation that involved changing the design of the rooms, paint colors, flooring and furniture along with new cabinets and countertops.

Now, hotel leaders are wondering whether the facility is due for another round of renovations.

“You have to constantly to keep up,” Allen says.

CONTEMPORARY DESIGN

Social engagement emphasized with today’s hotel design

The lobby of the Aloft Wichita Northeast is the focal point of the hotel, the hub through which the social activity in the building originates.

And the hotel’s design creates ample opportunity for social engagement.

There’s the W XYZ Bar in the back corner and the adjacent lounge area that features multiple seating configurations. A pool table is situated opposite the bar. Board games are available as are grab-and-go meals and snacks in a food-service area that is to the left of the main entrance.

Outside, guests have access to large patio areas and a swimming pool. Rooms feature high ceilings, platform beds, large flat screen televisions and walk-in showers. Central heating and air conditioning units are built in, meaning gone are the large floor units of old.

All of this is part of a more contemporary design template Marriott utilizes with its Aloft properties.

Aloft is one example of how hotels are increasingly incorporating designs that encourage social activity and connectivity in spaces outside of the rooms.

Brands are catering to a younger workforce, which tends to be more socially engaged and technology dependent, hotel developers say.

Modern design will be a staple for other hotel projects as well.

Missouri-based HCW Development Co. will incorporate the latest design standards at its hotels at 13th Street North and Greenwich and 29th Street North and Maize Road.

The 98-room Tru hotel at 13th and Greenwich is designed with millennials in mind by being technology friendly and incorporating more of an active lobby for people to gather and socialize.

A four-story Hampton Inn at 29th and Maize in the Cadillac Lake development will incorporate the latest Hampton Inn designs, such as glass-enclosed showers instead of bathtubs, a lobby gift shop, an outside gathering area with fire pit and lounge seating.

It’s clear hotel design standards are changing, and early indicators are the market is receptive to those changes, developers say.

Josh Heck, Reporter
Wichita Business Journal

“A gift card program is no longer a luxury for merchants, but a necessity to remain competitive.” 

As with any marketing tactic, you will get out of it what you put in.  Operators need to consider ways they can maximize their gift card sales throughout the year, and have a plan in place to accomplish their goals.
 

According to GiftCards.com, 72% of customers spend 20% MORE than the value of their card.  These numbers vary depending on the source, but all the numbers reflect that consumers spend additional money beyond the value of the card.

Below are a few ideas to consider that could increase your gift card sales.

1.      Get social – Social media can be a great place to promote your gift cards. 

2.      Promote Year Round - Almost every restaurant sells gift cards leading up to Christmas, but cards can be used for more than gifting.  Have you thought of developing a promotion around other holidays such as Valentine’s Day, Cinco de Mayo or national burger day/month?  There is a food holiday every day, week, and month of the year.  Give guest a reason to purchase a card, and if research holds true, most will spend 20% more than the value.  (check out our list of food holidays) 

3.      Increase Mid-Week Sales – Most operators see higher sales on the weekends.  Instead of encouraging staff to promote gift cards during peak times, focus your efforts during times that staff can be more effective.  After all, research shows 27% of gift cards are purchased in person. 

4.      Advanced Promotion – Most consumers manage expenses on a monthly budget.  With effective planning, you can use this to your advantage.  Promote Cinco de Mayo gift card sales in April, knowing guest will redeem them in May.  Remember, most customers spend 20% more than the value of the card, and when purchased in advance they will consider the extra spend part of a new month’s budget. 

5.      Online Promotion – Let others do the promotion for you.  Building your social community means building customer engagement.  Giveaways are a great way to do this.  Customers could be entered simply by sharing, commenting, or posting a picture.

6.      Offer Something Unique – Partner with another local business to create a unique package.  Both companies can leverage their marketing and social media channels, expanding your audience to new customers. 

7.      Prizes! – A little competition never hurt anyone and can be a key motivator for your staff.  You don’t have to break the bank, it could be free movie passes, lunch, fuel gift card or cash!  Perhaps you could do a trade out with another business, giving you more marketing exposure.  The key is to make gift card sales part of your up-sell strategy. 

8.      Virtual Distribution – You can’t ignore mobile any longer.  Online gift card sales are growing by 29% per year.  Many consumers don’t travel with their gift or reward cards.  By offering electronic gift cards, guest can access the card on a mobile device, providing them access at any time.   
    

9.      Lock in Funds –When customers load funds onto a reloadable gift card, they are more likely to continue purchasing from you.  This is a great way to keep them coming back.  Gift cards can also help reduce payment processing fees, which can benefit high-frequency, low ticket business.

10.   Visibility – Display gift cards in your stores to make sure guest see them.  Marketing them in high traffic areas, such as your hostess stand, is both easy and inexpensive. 

The key is to plan ahead.  With a little experimenting, you can determine what marketing mix and promotions work best for your operation.  

What You Need to Know About IRA Tipping Rules & Form 8027

By Bret Curtis, CPA, JD, LLM
Shareholder, Mize Houser & Company, PA

Imagine opening a notice from the IRS requesting you to file Form 8027 (Employer’s Annual Information Return of Tip Income and Allocated Tips) for the past few years. Surprise? Yes, and not a good surprise. Internal Revenue Service Form 8027 is an annual information return prepared by an employer who operates a large food or beverage establishment. The form requires the large employer to report gross receipts and tips. The form also calculates whether the employer is required to allocate tips to employees. Large discrepancies between employer- and employee-reported tips are a red flag to the IRS that employees are underreporting their tips. The form is due to the IRS by February 28th if filing in paper format or March 31st if you are filing electronically. If you are not familiar with Form 8027, here is what you need to know:

Who is required to file?

This is a two-factor test: Did the restaurant or operation serve food and beverages for on-site consumption where tipping is customary? Did the restaurant employ more than 10 workers on a typical business day during the prior year? If both answers are “Yes”, then you are required to file Form 8027. New businesses that opened during the tax year file a Form 8027 if, during any two consecutive calendar months, the average number of hours worked each business day by all employees was more than 80 hours. Quick service operations that do not permit tipping are not required to file Form 8027

What information do I need to pull together?

You will be required to show gross receipts, charge receipts, credit/debit card charged tips, service charges, and the total amount of tips employees reported during the year. If your employees fail to report tips equal to at least 8% of your total gross receipts, you must allocate tips to those employees that had a reporting shortfall in a payroll period. The allocated tips also have to be reported on an employee’s Form W-2 in Box 8. Since allocating tips is such an unsavory process, the employer should conduct training programs for employees and provide information about tip reporting rules. Training should occur with every newly hired employee-- and at least quarterly for the entire staff. Any employee who receives at least $20 in tips (either directly or from a shared tip pool) in a month should report these tips to the employer every payroll period. Keep in mind this is an overview of the IRS tipping rules. Should you have questions, please consult your tax advisor or Bret Curtis with Mize Houser & Company P.A. for additional help. 

We encourage you to contact a KRHA Allied partner if you have specific questions regarding this topic.

Mize Houser & Company P.A. Bret Curtis, CPA, JD, LLM Shareholder bcurtis@mizehouser.com 913.451.1882 www.mizehouser.com

It’s been approximately one year since the EMV liability shift took effect and it’s time for a mid-term report card on EMV’s issuance, acceptance, speed, security and overall impact.

EMV Issuance

In terms of card issuance, I have to give the issuers a “B+” for the pure volume of credit and debit cards they’ve placed in the hands of millions of cardholders, starting even before the liability shift began. As of June 2016, Visa reported that 125 million credit cards were issued, representing 44% of all credit cards. Visa also reported that 126 million debit cards issued, representing 27% of all debit cards.  They are forecasting 76% of credit cards and 56% debit cards will be issued by the end of the fourth quarter 2016.  Relative to merchant locations, 20% of the total available locations support chip EMV out of 4.6 million merchants. Visa is forecasting 50% by the end of the fourth quarter of this year.  Likewise MasterCard issuing banks reported nearly 60% of MasterCard cards are chip, 78% of all credit cards and 26% of all debit cards.  MasterCard also reported that 26% of POS locations support EMV and that chip transactions made up 21% of volume at POS during June. 

From the statistics we can tell that debit card issuance is lagging behind that of credit cards.  This is due in part to the need to maintain Durbin compliance and the time it took for the regional debit networks to reach agreement with Visa and MasterCard on the EMV kernel. 

EMV readiness for restaurants

Simplify an “F”.  Many of the POS providers have “fallen on their swords” relative to their readiness to enable EMV for their restaurant customers, leaving those customers in the lurch for a solution to solve the volume of chargebacks that started on October 1^st of last year. That being said, there are solution providers and enterprising acquirers coming to market with solutions that are filling the gap.  However, readiness of EMV POS solutions is not all the POS providers doing or lack thereof.  The EMV certification process is complex, it is costly, the simulators used for testing are ever changing, and there are modifications and enhancements made by the Card Brands (Visa, MasterCard, American Express and Discover), all of which have contributed to the lack of EMV acceptance for the restaurant industry.      

EMV transaction speed

I am going to be generous and give EMV as implemented in the U.S. a “C-”.  Why a C-?  There is not a region or country that has rolled out EMV that has not seen a throughput impact at the checkout.  Speaking with Canadians, who were one of one of the last countries to migrate to EMV, they were pretty much already using PIN (we’ll speak about security in a moment) when they rolled out EMV and their banks made the decision to issue cards with both EMV contact and contactless.  Contactless has proven to be fast and secure for Canadian consumers.  The U.S.?  Our cards are predominately issued with only EMV contact and magstripe.  U.S. issuers and the Card Brands are betting on you, the consumer, to use your mobile wallet to pay.  As of today, the percentage of EMV contactless is only a fraction of the overall card volumes in the U.S.  The Card Brands are also betting on Quick Chip and M/Chip Fast to streamline the EMV checkout process.  In summary, Quick Chip and M/Chip Fast mimic the EMV contactless flow and shorten the time that an EMV card needs to be inserted and held in the EMV reader.  Do Quick Chip and M/Chip Fast really reduce transaction times?  It remains to be seen but perception is reality to many cardholders as well as restaurants and QSR that ae migrating to chip but looking to avoid queuing issues. 

EMV Security

EMV’s primary objective is to stop counterfeiting.  Since its inception in the early 90’s, EMV has done an exceptional job at eliminating counterfeiting so I am going to give it an “A”.  However, we are missing one vital element in the U.S. – the ability to use the EMV card to validate the cardholder.  While EMV cards are almost impossible to counterfeit, there is nothing stopping a person from using a lost or stolen EMV card to make a purchase as a result of the U.S. issuers not requiring prompting for PIN. MasterCard, Discover and Amex hold the merchant responsible if you do not have EMV implemented and cannot process a PIN.   Major merchants such as Wal-Mart and Target are suing the Card Brands over the simple fact that we are not fully using this technology to protect the businesses that accept their branded cards.  Yes, mandating PIN would it impact speed, but many businesses would make that trade-off to ensure the customer at the counter is in fact the cardholder of record. Let’s say it another way.  The U.S. is the only developed country in the world to have rolled out EMV without the majority of cards issued requiring PIN.  Those countries went to the “N^th degree” to ensure that both counterfeiting and illegal use of lost and stolen cards would be eliminated.    

The Cardholder User Experience

A “C” at best and yes I am being generous again.  Here’s why. There will always be a transition period when all EMV cards have not been issued and all merchant locations are not rolled out. Worldwide, not one region has 100% of its merchant locations rolled out for EMV acceptance and magnetic cards eliminated.  However, we in the U.S. have not made the cardholder experience at the checkout easier.  Some issuers’ card support PINs and some support only signature or no CVM.  Cardholders often have both these cards in their wallets, depending on the logo on the front of the card.  Merchants and restaurants mark their payment acceptance devices with a sign such as “chip doesn’t work” so cardholders go to the checkout not knowing if they swipe, insert, enter a PIN or don’t enter a PIN.  As I say earlier, contactless solves many of these issues. 

In summary

The U.S. is clearly moving to complete its rollout of EMV cards and payment devices.  Expectations of smooth sailing were not met but there is a tremendous amount of work being done to streamline acceptance and complete integration with the POS systems restaurants use.  Hopefully by the time the “semester” is finished we’ll be able to bring up our grades. 

We encourage you to contact our KRHA Allied partner if you have questions on EMV liability.

Heartland  Chad Pruess: chad.preuss@e-hps.com  (316) 425-2537                       heartlandpaymentsystems.com

Don’t let fraudsters eat your lunch

Liability shift lifts veil on small counterfeit charges

By: Georgia Stavrakis, CPP

It’s been a year since the U.S. migrated to EMV technology, and more than 1 million businesses now use EMV chip-embedded credit card readers. Unfortunately, criminals are taking full advantage of businesses that haven’t fully made the switch, leaving even small businesses vulnerable to costly chargebacks.

Restaurants have been plagued for years by counterfeit, stolen and cloned credit card activity, but it’s much more apparent now that liability for these fraudulent charges shifted to the party using the least secure technology – most often the merchant. Customers who may frequent your restaurant could have been using counterfeit cards for months without exposure, because the issuing bank was taking the loss. But now, your business, and livelihood, could be held liable. If you haven’t enabled EMV chip-reader technology in your restaurant, here are a few reasons you should do it before you serve up that next batch of sweet tea.

Criminals prefer magstripe

If a credit card does not have a physical EMV chip (magstripe only card), the data on the card may still be EMV. Here’s how.

When criminals purchase credit card numbers online, the data — regardless of whether it is magstripe only or EMV technology — is loaded on a standard magstripe counterfeit card and shipped to them. With more than 67 percent of U.S. credit cards now using EMV technology, odds are that the counterfeit magstripe card they received uses EMV data.

This is when having an EMV chip-embedded card reader at your business comes in handy. If the criminal swipes the counterfeit magstripe credit card housing EMV data on an EMV card reader, it will prompt them to use the chip reader. They won’t be able to use the card, because no actual chip exists. For this reason, fraudsters intentionally seek out non-EMV enabled businesses because the transaction process is not secure, and they can use the counterfeit magstripe card successfully, bringing unwanted chargebacks to your business.

The tab is on me

Although most restaurants don’t have to worry about professional thieves racking up thousands of dollars in fraudulent charges like retailers, these low-level fraudsters target restaurants and bars for a quick win. Whether it’s just a $50 dinner and drinks, a gift-card purchase or a college student picking up the beer tab for friends, restaurants and bars are low-risk targets for criminals because law enforcement generally does not assist with recouping such a relatively small loss. But these small one-off losses add up, potentially leaving more than just your ketchup bottles in the red.

Protect yourself

College and university towns, large cities and major metropolitan areas are the most vulnerable, but credit card fraud can happen to businesses anywhere. The best defense for your restaurant against credit card fraud is to install EMV chip reader terminals as soon as possible. If that simply isn’t an option, here are a few additional tips you can use to protect your business.

• Verify the last four digits of the card number match the last four digits on the printed receipt
• Compare the signatures on the card and receipt
• Check cards for legitimate features like holograms, logos, CVV/CID/CVV2 and AVS verification, etc.
• Never rerun a card if it declines – for any reason.

Georgia Stavrakis is the senior director of loss prevention at Heartland Payment Systems

We encourage you to contact a KRHA Allied partner if you have questions on EMV liability.

Heartland  Chad Pruess: chad.preuss@e-hps.com  (316) 425-2537                       heartlandpaymentsystems.com

Are you seeing an increase in chargebacks at your restaurant? You're not alone! It's been more than ten months since the EMV liability shift, and many restaurant operators, large and small, are seeing a startling, consistent rise in chargebacks. During this webinar recording, experts from the National Restaurant Association and Heartland explain the liability shift, the chargeback notification process and requirements, as well as best practices to protect the restaurant operator from this liability, as the old rules of swipe and signature do not apply to chip cards.  Are you seeing more chargebacks at your business? Reach out to Laura Knapp Chadwick (lchadwick@restaurant.org) if you have any questions or concerns. 

Click here to watch the Webinar

Originally published by: National Restaurant Association

Restaurants—with their open flames, hot equipment, electrical connections, cooking oils, cleaning chemicals and paper products—have all the ingredients for a fire to flame out of control. Nearly 8,000 eating and drinking establishments report a fire each year, according to 2006-2010 data tabulated by the National Fire Protection Association (NFPA) in Quincy, Mass. These fires caused an annual average of $246 million in direct property damage. A fire can devastate your business, leading to lost revenues and even permanent closure. But there are steps you can take to prevent fires and minimize the damage.

Preventative maintenance Install an automatic fire-suppression system in the kitchen. This is crucial because 57% of restaurant fires involve cooking equipment. These systems automatically dispense chemicals to suppress the flames and also have a manual switch. Activating the system automatically shuts down the fuel or electric supply to nearby cooking equipment. Have your fire-suppression system professionally inspected semiannually. The manufacturer can refer you to an authorized distributor for inspection and maintenance. Keep portable fire extinguishers as a backup. You’ll need Class K extinguishers for kitchen fires involving grease, fats and oils that burn at high temperatures. Class K fire extinguishers are only intended to be used after the activation of a built-in hood suppression system. Keep Class ABC extinguishers elsewhere for all other fires (paper, wood, plastic, electrical, etc.). Schedule regular maintenance on electrical equipment, and watch for hazards like frayed cords or wiring, cracked or broken switch plates and combustible items near power sources. Have your exhaust system inspected for grease buildup. The NFPA Fire Code calls for quarterly inspections of systems in high-volume operations and semiannual inspections in moderate-volume operations. Monthly inspections are required for exhaust systems serving solid-fuel cooking equipment, like wood- or charcoal-burning ovens. Staff training Train your staff to: Find and use a fire extinguisher appropriately.  An acronym you may find helpful is PAST – pull out the pin, aim at the base, make a sweeping motion, (be) ten feet away. Clean up the grease. Cleaning exhaust hoods is especially important, since grease buildup can restrict air flow. Be sure to also clean walls and work surfaces; ranges, fryers, broilers, grills and convection ovens; vents and filters. Never throw water on a grease fire. Water tossed into grease will cause grease to splatter, spread and likely erupt into a larger fire. Remove ashes from wood- and charcoal-burning ovens at least once a day. Store outside in metal containers at least 10 feet from any buildings or combustible materials. Make sure cigarettes are out before dumping them in a trash receptacle. Never smoke in or near storage areas. Store flammable liquids properly. Keep them in their original containers or puncture-resistant, tightly sealed containers. Store containers in well-ventilated areas away from supplies, food, food-preparation areas or any source of flames. Tidy up to avoid fire hazards. Store paper products, linens, boxes and food away from heat and cooking sources. Properly dispose of soiled rags, trash, cardboard boxes and wooden pallets at least once a day. Use chemical solutions properly. Use chemicals in well-ventilated areas, and never mix chemicals unless directions call for mixing. Immediately clean up chemical spills.  Be prepared: Have an emergency plan If a fire breaks out in your restaurant, your staff must take control of the situation and lead customers to safety. Be prepared to power down. Train at least one worker per shift how to shut off gas and electrical power in case of emergency. Have an evacuation plan. Designate one staff member per shift to be evacuation manager. That person should be in charge of calling 911, determining when an evacuation is necessary and ensuring that everyone exits the restaurant safely.  Ensure your staff know where the closest exits are, depending on their location in the restaurant.  Remember that the front door is an emergency exit. Offer emergency training. Teach new employees about evacuation procedures and the usage of fire-safety equipment. Give veteran staff members a refresher course at least annually. ® 2012-­2015 National Restaurant Association. All rights reserved. 2055 L St. NW, Suite 700, Washington, DC 20036 (202) 331­5900 | (800) 424­5156

We encourage you to contact a KRHA Allied partner if you have a need for hood cleaning or restoration following a fire.

Hood Cleaning

	Hoodz Lance Fairbairn: lance.fairbairn@hoodz.us.com 316-264-7094 www.hoodz.us.com
	Safety Tec Andy Jacobs: andy@safetytechusa.com 855-906-4663 www.safetytechusa.com

Fire Restoration

	Advance Catastrophe Technologies, Inc Geron Smith: gsmith@actcat.com 316-262-9992 www.ineedact.com
	National Catastrophe Restoration, Inc. Katy Timken: k.timken@NCRICAT.COM 316-636-5700 www.ncricat.com

Restaurant owners are finding complying with the Affordable Care Act reporting requirements are more difficult than they first thought. And, with a January, 2016 deadline approaching, time is running out for owners to organize data to meet the requirements.

According to the National Restaurant Association, the ACA data gathering requirements that began on January 1, 2015 are complex, requiring extensive reporting to meet the IRS’ spring deadline. In an industry that employs over 11,000,000 workers – with variable hours and shifts – complying with the requirements is onerous.

“For restaurant owners with 50 or more employees, they face additional costs, possibly adding additional personnel and systems to track the required information to be in compliance,” adds Bret Curtis, shareholder and chair of the Mize Houser Hospitality Services Group. “The ACA isn’t going away so you’re better off understanding how your current payroll system can help you with reporting requirements.”

What can restaurant owners do right now to meet the ACA compliance requirements?

Look at your current payroll provider. While owners may think they’re tracking the right data for reporting purposes, the biggest reporting challenge is whether an owner can run Full Time Equivalent (FTE) calculation, look back measurement reports and eligibility reports from their current system. These are critical compliance and reporting requirements.

Understand what data you need to track. And few payroll systems can accommodate tracking every required piece of data. For new employees who are eligible for your health insurance plan, owners need to provide them with the required offer of insurance. Once an employee is eligible, you need to track the date the insurance was offered to the employee and the date the employee accepted or rejected the insurance. As employees experience changes throughout the year, owners need to track dates of hire, termination and rehire as well as unpaid leave under FMLA, Military Leave or Jury Duty. Owners who have self-funded health insurance plans are also required to enter covered individuals (spouse or children), along with their Social Security numbers and dates of coverage. If owners have terminated employees who elected COBRA, owners will need to provide the name of each employee and/or COBRA beneficiaries and dates of coverage.

Get ready to send out the applicable IRS forms. For employees who are covered by group insurance or COBRA, owners must send an annual 1095-C form to each eligible employee as well as complete a transmittal form (1094-C) at the end of the year. “You need to understand if your current payroll system can generate these forms too,” explains Curtis.

Mize Houser’s proprietary system – EZAccess Payroll Solution – includes on-demand reports that help clients to determine which employees need to be covered and when they need to be offered insurance, along with alerts that can be set to ensure employees do not slip through the cracks. And EZAccess also provides the tool to gather the necessary information for applicable government reporting.

About Mize Houser & Company P.A.
Mize Houser & Company P.A., founded in 1956, employs over 200 people in Topeka, Lawrence and Overland Park, Kansas. In addition to traditional tax and audit services, the firm provides accounting services, payroll, bill payment, information technology and consulting services to organizations across the country. Mize Houser Hospitality Services Group provides accounting, payroll and tax consulting to restaurants and hotels nationwide.

Bret Curtis, J.D, CPA, is a Shareholder in the Overland Park, Kansas location of Mize Houser & Co. P.A. 

We encourage you to contact a KRHA Allied partner if you have questions about outsourcing your payroll.  

	Heartland Payment Systems Chad Preuss 316.425.2537 www.heartlandpaymentsystems.com
	Mize Houser & Company P.A. Bret Curtis, CPA, JD, LLM Shareholder bcurtis@mizehouser.com 913.451.1882 www.mizehouser.com

As a business owner, you have to juggle a number of priorities, one of which is paying your employees. With every changing tax laws and the complexities of the Affordable Care Act, it might be time for you to consider outsourcing your payroll.   Content Provided By: Bret Curtis, J.D., CPA,  Shareholder, Mize Houser & Co. P.A.

What are the top signs that you might want to consider outsourcing?

1. You’re spending way too much time on it. It can be a time sucking activity that takes precious productivity away from both you and your staff. And outsourcing your payroll could allow you to reduce your current payroll staff.
   
   
2. The cost of managing payroll is eating your budget. Not only do you have to incur salaries and benefits for your staff, but there are other costs too like printing and distributing checks and reports.
   
   
3. You don’t have great internal controls. Potential fraud is one reason why outsourcing may make sense. Having a fresh set of eyes from an outsourcing firm provides another layer of protection. Your provider knows the payroll processes and red flags that could indicate a potential fraud issue.
   
   
4. Accuracy is a concern. Payroll mistakes happen. And they can be costly. Chances are good that a payroll services firm will make fewer mistakes than your staff, given that they stay current on tax laws and have process in place to catch mistakes.
   
   
5. Your company is growing…..to other states.  Growth is great, but often comes with a price tag. If your company is expanding to other states, staying on top of payroll is going to be a challenge.
   
   
6. The Affordable Care Act. Staying on top of the Act is a challenge, particularly since the reporting requirements can be ominous. Payroll service providers know what exactly what needs to be reported or tracked, which lessens the burden on your or your staff.
   
   
7. Speed and seasonality.  Payroll specialists have terrific technology so they can manage payroll quickly. And a good service will also understand if you have seasonality issues with your business, like having to hire additional staff at peak times during the year.
   
   
8. You’d like to offer other payroll benefits to your employees. Direct deposit, pay cards and the ability for your employees to manage their payroll and benefits online are really important. And today are pretty expected when you’re recruiting new employees.
   
   
9. Your staff tends to turnover.  If you have a revolving door in your payroll department, you’re probably spending time (and more money) having to find and train new staff. Sending your payroll to a service provider will keep the disruption to a minimum.
   
   
10. You can sleep at night.  Peace of mind is can be worth the investment to outsource payroll.  Not having to worry about payroll will give you more time (and energy) to focus on other aspects of your business. 

Bret Curtis, J.D, CPA, is a Shareholder in the Overland Park, Kansas location of Mize Houser & Co. P.A.  

We encourage you to contact a KRHA Allied partner if you have questions about outsourcing your payroll.  

	Heartland Payment Systems Chad Preuss 316.425.2537 www.heartlandpaymentsystems.com
	Mize Houser & Company P.A. Bret Curtis, CPA, JD, LLM Shareholder bcurtis@mizehouser.com 913.451.1882 www.mizehouser.com

posted by Kansas Alcoholic Beverage Control on June 29, 2015

The 2015 Legislature passed House Bill 2223 which amends the liquor control act and the club and drinking establishment act. Governor Sam Brownback signed the bill into law on June 6, 2015. The following changes will become effective July 1, 2015.

Administrative Citations

ABC will be able to resume issuing administrative citations based on alleged violations observed by local law enforcement officers. The amendment made to K.S.A. 41-106 requires that a local law enforcement officer who observes a violation deliver a notification to the licensee at the time of the violation that includes information that a report will be sent to ABC for review.

Undisclosed Beneficial

Interest in a Liquor License A person whom the Director of ABC has deemed to have had an undisclosed beneficial interest in a liquor license, e.g., a hidden owner, will be ineligible to hold a liquor license in the future.

Technical Amendments

Codified long-standing ABC practices including issuing liquor licenses to LLCs, conducting administrative hearings according to the Kansas Administrative Procedures Act and issuing administrative penalties that include the involuntary cancelation of a license in lieu of license revocation in certain circumstances.

Infusion

On-premise licensees will have the ability to infuse alcoholic drinks provided the infusion does not cause additional fermentation that result in an increase in the alcoholic content. Licensees can serve liquor infused with spices, herbs, fruits, vegetables, candy or other substances intended for human consumption. A licensee would be able to dispense alcoholic liquor from a machine or the container used to mix, chill, or infuse alcoholic liquor with additional liquids or solids. A drinking establishment, its agent or employee cannot refill any original alcoholic liquor container with alcoholic liquor or any other substance. The bill specifies that the dispensing of alcohol from a machine pursuant to the provisions of the bill does not include self-dispensing by a customer.

Distributor Samples

Distributors will have the ability to serve samples to a retailer or retailer’s employees on the premises of a retail liquor store or on the premises of the distributor. These samples must be taken from the distributor’s inventory, cannot be served to customers, must 29 June 2015 Page 2 occur in an area of the liquor store not open to the public where sales do not occur, and are subject to the liquor enforcement tax.

Powdered Alcohol Ban

The distribution and sale of powdered alcohol is prohibited.

Automated Wine Dispensing

Drinking establishments, private clubs and public venue licensees will be able to use automated self-dispensing wine machines. Licensees are required to monitor the dispensing and have the ability to control the dispensing. The bill authorizes the Director of ABC to promulgate rules and regulations to implement this amendment. Because this change removes the requirement for human interaction in the dispensing of wine, the goal of our regulations will be to minimize the risk of dispensing wine to minors and over-service of wine to customers.

Catered Events

Caterers are required to electronically notify the ABC of an upcoming catered event at least 48 hours prior to the event. Notification will no longer be required for the following type of catered events: weddings, funerals, events sponsored by religious institutions or for business, industry or trade sponsored meetings including awards presentations and retirement celebrations. Caterers must log into the Customer Service Center at www.ksrevenue.org/index.html to submit their events electronically.

Catered events will be allowed on public streets, alleys sidewalks or highways provided the caterer has given proper notice to the Director with a copy of the approved city or county ordinance or resolution for the specific event.

Industry Handbooks Updated

All of the above changes to the liquor laws are being incorporated into our industry handbooks. A Facebook post will be made when the updated handbooks have been posted on our website at: www.ksrevenue.org/abclawsnotices.html

As part of the Kansas Department of Revenue’s continuing effort to simplify return filing and payment options, a new transient guest tax system will soon be implemented.

What’s New?

• Transient guest tax accounts are being assigned a new account number.
• The Kansas Transient Guest Tax Return (TG-1) has been revised and should be used for Transient Guest returns beginning with June 2015. The size of the return has been reduced and deductions are now found on the back of the return.
• A blank TG-1 return can be printed from below.
• If you have questions or need assistance, please contact us at 785-368-8222.
• Electronic filing will be coming soon.

Some Kansas cities and counties impose a transient guest tax (in addition to the sales tax) on the rental of rooms, lodging, or other sleeping accommodations. The guest tax applies when there are more than two bedrooms furnished for the accommodations of guests and when the room is rented for 28 consecutive days or less. Contact your city or county clerk for the appropriate local rate for your area.

• Transient Guest Tax (TG-1)
• Transient Guest Tax Rate and Filer Report

Publications
Publications assist in understanding the provisions of Kansas tax laws and regulations and are designed for informational purposes only. The contents should not be used as authority to support a technical position.

• Business Taxes for Hotels, Motels & Restaurants (KS-1540)
• Sales Tax Exemption Information and Certificates (KS-1520)

For forms, publications and other sales-related links, go to the Kansas Department of Revenue website: http://www.ksrevenue.org/forms-bttg.html

posted by Kansas Department of Revenue on June 22, 2015

The Kansas state sales and use tax rate will increase from 6.15% to 6.5% on July 1, 2015.

KDA notice 15-02 explains how the rate increase affects the collection and reporting of sales and use tax by Kansas retailers. www.ksrevenue.org/taxnotices/notice15-02.pdf

• Meals or catering-service contracts - Charges are subject to the tax rate in effect on the date of the catered event.
• Room Occupancy - Hotels and accommodation brokers should charge sales tax on single-day room charges for June 30th and the morning of July 1st at the lower 6.15% state rate. All taxable occupancy charges billed thereafter should be taxed at the 6.5% state rate. For purposes of a rate change, room rentals billed on a weekly or monthly basis are treated as day-to-day rentals if either party has the unconditional right to terminate the room rental agreement. For rental periods other than daily rentals, the overall charge can be prorated and taxed based on the length of stay before and after the rate change. 

Retailers are required to charge customers a combined tax rate that equals the sum of the appropriate state rate plus all applicable local tax rates.  

Cities and counties in Kansas may also levy a local sales tax. Each retailer reports and remits the total of the state and local retailers’ sales tax collected to the Department of Revenue. www.ksrevenue.org/salesratechanges.html

For forms, publications and other sales-related links, go to the Kansas Department of Revenue website: www.ksrevenue.org/bustaxtypessales.html  

Recources to help operators understand the Facts about EMV:

EMV Card and Transaction Facts

EMV in a Little More Than 60 Seconds

EMV vs Mag-stripe

Thank you to our partner Hearland Payment Systems for providing this information.

Prepare for EMV Today to Secure Your Business for Tomorrow

The way you accept credit and debit card payments is about to change. A new standard for payment cards and payment acceptance devices—EMV—is being rapidly implemented in this country in an effort to greatly increase card security and improve global interoperability. EMV has been used throughout the world successfully for years, significantly reducing card fraud—and it is coming to the U.S.

EMV cards are embedded with a computer chip that securely stores the cardholder’s account details and creates a unique encrypted code—or digital signature—for each transaction for validation that cannot be reused or cloned. When combined with additional layers of security—such as encryption and tokenization—EMV significantly reduces opportunities for card payment fraud at the Point of Sale (POS).

EMV cards are embedded with a computer chip that securely stores the cardholder’s account details and creates a unique encrypted code—or digital signature—for each transaction for validation that cannot be reused or cloned. When combined with additional layers of security—such as encryption and tokenization—EMV significantly reduces opportunities for card payment fraud at the Point of Sale (POS).

Liability Shift

The card brands have instituted a liability shift for fraudulent transactions that occur at the point of purchase beginning in October 2015 for non-AFD (Automated Fuel Dispenser) and October 2017 for AFD. Merchants that do not have a terminal or POS system capable of reading EMV cards will be responsible for chargebacks and fraudulent card acceptance beginning October 2015.

EMV vs. Magstripe

Unlike a magnetic stripe card, an EMV card is not swiped through a reader. Rather, it is inserted into a slot on the POS terminal—or tapped at the POS—if the customer possesses a duel-interface EMV card and the merchant has a PIN pad or terminal that includes a contactless reader. Both options may also require the cardholder to enter a PIN or provide a signature.

All of the EMV chip cards issued today in the U.S. also have a magnetic stripe for use at businesses that have not yet upgraded to EMV.

Heartland Secure

While an extremely effective method of reducing counterfeit and lost/stolen card fraud in a face-to-face payment environment, EMV is just one important component of a comprehensive, multi-layered approach to payment security that includes tokenization and encryption—all of which are offered in the Heartland Secure solution.

Olathe Public High School’s Team Edasia Wins National ProStart Invitational Culinary Competition

Wichita, KS -- 04/22/2015 --Team Kansas from Olathe Public High Schools took home the win for the culinary competition at the 2015 National ProStart Invitational, April 18-20 in Anaheim, Calif. Led by Chef Mike Chrostowski, team members included: Melinda Hrdy, Michael Miller, Ashleigh Hagen, Haneen Ibrahim and Rachel Cormeny.

"These students are professionals," said Neeley Carlson, VP Education & Training at Kansas Restaurant and Hospitality Association (KRHA). "They've poured more than 700 hours of preparation into this competition, perfecting their craft and demonstrating their passion for the culinary arts. Their dedication is helping to empower our industry in Kansas."

The ProStart program is a two-year course, offered at 30 high schools in Kansas, that allows more than more than 2,000 students to get experience in culinary and restaurant management.

The National ProStart Invitational is the finale of the nationwide series of state competitions hosted by partner state restaurant associations. Only teams awarded first place from each of the 48 competing states advanced to compete in the National ProStart Invitational.

For each respective competition — culinary or management — students must impress judges from leading industry corporations, colleges and universities with the skills they've developed through ProStart.

The culinary competition highlights each team's creative abilities through the preparation of a three-course meal in 60 minutes, using two butane burners and without access to running water or electricity. There is no room for error as they are evaluated on taste, skill, teamwork, safety and sanitation.

"KRHA and especially Neeley Carlson have done an excellent job of nurturing the students to achieve culinary excellence," said Scott Redler, co-founder of Freddy's Frozen Custard & Steakburgers and National Restaurant Association Board Member. Congratulations to the Olathe team and KRHA for inspiring our next generation of restaurant leaders."

The top five teams from the culinary and management competitions are awarded generous educational scholarships to help further their careers in the restaurant and foodservice industry. Every year, the National Restaurant Association Education Foundation awards more than $1 million in student scholarships.

About KRHA
The Kansas Restaurant and Hospitality Association, founded in 1929, is the leading business association for restaurants, hotels, motels, country clubs, private clubs and allied business in Kansas. Along with the Kansas Restaurant and Hospitality Association Education Foundation, the association works to represent, educate and promote the rapidly growing industry of hospitality in Kansas.