Monday, September 27, 2010 ~ 6:00-9:00 pm

Hawaii Prince Hotel ~ Waikiki

Reserve your place – or better yet, your table!  Join us as we celebrate the restaurant industry and honor the leaders who will be inducted into the 2010 HRA Hall of Fame.  Enjoy feasting at the Dine-Around, featuring the culinary creations of this year’s Chefs of Aloha:

Jesse Kila (The Ranch House), Keith Kong (Duke’s Waikiki), Donald Lakey (Outback Steakhouse), Scott McGill, CEC (Hula Grill Kaanapali), John Memering (Kalapawai Cafe), James Rosenberry (Hula Grill Waikiki), and Kirby Wong (Hawaii Prince Hotel Waikiki).

For more information, call HRA at 944.9105 or email at hra@RestaurantHI.com.

FORUMS 2010:  Gubernatorial Forum

Tuesday, September 7, 2010 (Deadline to register:  September 3)

The Plaza Club

MODERATOR:  Bruce Coppa, President, Coppa Consulting

CANDIDATES:  Neil Abercrombie and Mufi Hannemann

COST: $30 per person (Includes lunch and program)

Click here to register online

Click here to download form

SAVE THIS DATE!

Oct. 13, 2010 – Congressional Debate

Improvements in secure communications, new technologies, economic conditions and the competitive landscape have led to tremendous innovation in the most important part of any business transaction: getting paid.  Let’s take a closer look at ACH, a cost-effective, innovative payment method.

Getting paid via the ACH network

The Automated Clearing House (“ACH”) is an electronic network for processing financial transactions.  According to NACHA, the electronic payments association responsible for the development, administration, and governance of the ACH network, over 11,000 financial institutions participate in the ACH.  Last year, 18.76 billion payments were processed via ACH. During the second quarter of 2010 alone, more than $8 trillion in transactions were processed via ACH.

Most businesses that currently use ACH do so for payroll purposes.  ACH processes direct deposits of employee compensation.  Businesses, however, can also use ACH as a cost effective method to get paid by consumers and other businesses via the “Direct Payment” program. Direct Payment transfers money directly from the payee’s checking or savings account to your company’s bank account.  This is ideal for subscription-based or other recurring payments.  It is also cheaper than processing paper checks and other payment forms.

ACH Direct Payment costs

There are four costs associated with ACH Direct Payment:
1. Setup costs – One of the reasons why ACH is cost effective is because the transactions are processed in batches. This reduces processing costs.  But it also means your company will need to produce a special electronic file, known as an “ACH-formatted” file and deliver it to your bank.  Banks charge a fee for this.
2. File transmission costs – The cost of sending the ACH-formatted file to your bank.

3. Transaction fees – This is the fee for each transaction included in the ACH-formatted file.   Discounts are usually offered as volume increases.

4. Returns – If the ACH transaction cannot be processed because of insufficient funds in the customer’s account, the closing of the account or if the consumer disputes the charge.  Your bank will charge a fee for this.

These costs vary by financial institution and it may pay to comparison shop. Phoenix-Hecht publishes a report which analyzes bank charges for different transactions, including ACH Direct Payment, called the Blue Book of Bank Prices.  They also offer an optional web-based pricing calculator to determine what your company’s actual costs would be based on the volume and nature of your transactions.  The report is not cheap, but if your business has a high volume of customer payments, it may be worth the investment to purchase the Blue Book.

Accepting ACH payments

The process is initiated with your company’s financial institution. They can walk you through the steps of accepting ACH Direct Payments which are:

1. Setup and testing

Customers provide their bank account information and authorize your company to debit payments from their account.  Sample authorization forms are available here. Once authorized, your company performs a test transaction where no money is exchanged to confirm that the information is correct.

2. Notification

For recurring payments, if the amount or timing of the Direct Payment varies, the customer needs to be notified.  If the amount varies, the customer must be notified 10 days in advance.  If the timing varies (different day of the month for example) or if it is not specified, then 7 days’ notice is required.

3. Posting

Your company prepares the ACH-formatted file and sends it to your bank via electronic transmission (although in some cases it can be delivered on a CD-ROM or DVD).

4. Transactions and transfers

Your bank processes the transactions in the ACH-formatted file, depositing the money in your company’s bank account the same day the transaction is processed

5. Confirmation and reconciliation

The transactions are reported on your account statement and any problem transactions are reported separately.

Industry Video Update

The FDA is charged with explaining and implementing the law. In a teleconference briefing for the industry today, the agency discussed two new guidance documents on the law.

Both documents are available on the FDA’s website — the first outlines how the federal law preempts non-identical state and local menu-labeling laws and the second providesdraft guidance on the menu-labeling process for covered restaurants.

The FDA indicated that while some of the law’s requirements have taken effect, the agency will not take enforcement action until after the public has had time to comment on the guidance. The FDA also pledged to provide additional information about how to comply with the law.

FDA officials noted that as of March 23, 2010 — the day the law was enacted — federal law preempts state and local menu-labeling laws for businesses covered by the federal law.

The National Restaurant Association is analyzing the guidance and will offer a summary for members shortly. The Association will work closely with its members to send comments and feedback to the FDA to ensure the law does not impose unnecessary burdens on restaurants.

ew rules involving the sale of pre-paid gift cards and incentive offers, including limitations on expiration dates and dormancy fees, went into effect Sunday as a result of federal legislation adopted earlier this year.

The legislation, which affects gift cards sold or issued on or after Aug. 22, is designed to address concerns raised in recent years by consumers, who are increasingly buying gift cards.

For the first half of 2010, the number of restaurant gift cards sold rose 12.4 percent over the same period last year in the quick-service segment alone, according to a study by Atlanta-based First Data Corp., an electronic commerce and payment processor. At casual-dining restaurants, gift card sales increased 6.1 percent for the first half of the year. The sale of gift cards overall, including those offered by retailers, rose 2.7 percent.

Under the new rules, gift cards must be good for at least five years from the purchase date. Any money later added to the card must also be good for at least five years, said David Koenig, director of tax and profitability for the National Restaurant Association.

In addition, consumers may be able to use the unspent money on a card even after it expires. If the card expires in five years, for example, but the money left on the card doesn’t expire for seven years, consumers can request a replacement card at no cost.

The new rules also place limits on fees for dormancy or inactivity, as well as usage or maintenance fees. Generally, fees can be charged if the card has been inactive for at least 12 months, for example, but a fee can be charged only once per month after that. Restaurants are allowed to charge fees for replacing a lost or stolen card.

Restaurant companies must disclose the card fees and expiration dates clearly on the card or packaging, though Koenig said the rules do not specify how such disclosures must be made.

Rebekka Rea, associate director of the Retail Gift Card Association in Oklahoma City, said the new rules are not likely to have much of an impact on the gift card industry as most retailers and restaurants have long eliminated expiration dates and dormancy fees.

“Our industry has already been self-regulated to be more consumer friendly,” Rea said.

The Retail Gift Card Association, which represents about 33 companies and 60 brands — including major restaurant companies such as Subway, Dunkin’ Brands, Darden and Brinker International — asks members to abide by a code that includes limiting fees and eliminating expiration dates, she said.

“The biggest impact for restaurants will be the way gift cards are packaged,” Rea said. “They need to be sure the terms and conditions are clearly visible, and we would recommend that they also be stated on their websites.”

The new rules do not apply to some reloadable pre-paid cards that are not intended or marketed as gifts, said attorney Amy Pierce with Pillsbury Winthrop Shaw Pittman in Sacramento, Calif.

Chain operators have to be careful, however, because if any location markets the card as a gift — even a picture of a bow on the card could be a problem — the entire chain’s cards would lose the exemption and must comply with the new rules, Pierce said.

Also not covered are cards given as a reward or part of a promotion, Koenig said. For example, a $15 gift card given by a restaurant if consumers purchase $100 or more may have fees and an expiration date of one year, rather than five. Regardless, however, restaurants must clearly disclose the terms, he said.

Also excluded are cards that might offer a free meal or a percentage off the next visit — so long as they do not mention a specific value.

Pierce said restaurant operators must also be careful to comply with state laws regarding gift cards, as the federal rules do not pre-empt local requirements, so long as the state requirements are more protective of consumers.

In California, for example, gift cards can’t have expiration dates, but cards are exempt when no money has been exchanged, such as for a loyalty or reward card. So retailers can set an expiration date on such cards, but, according to state law, it must be printed in all caps in 10-point font on the card, Pierce said.

“The devil’s in the details,” she said.

The DOH Sanitation Branch offices on O‘ahu and Maui have received reports (three on Maui and two on O‘ahu) that a male caller(s) has been contacting local restaurants claiming to be from the local Health Department investigating a complaint.  The caller stated that the DOH has received complaints regarding the establishment and would be coming at a later date to make an inspection.  Similar scams are occurring on the mainland in an effort to obtain sensitive information about employers/employees.

The DOH typically does not call a food establishment prior to a routine inspection or when investigating a complaint, and DOH health inspectors must always wear or display their DOH issued identification before entering an establishment.  Food establishments should make sure that anyone claiming to be a health inspector has proper DOH identification.  Only DOH sanitarians and food and drug inspectors enter food establishments to investigate health-related complaints or to make routine inspections.

If you have any questions regarding the identification of a sanitarian (health inspector) please call the Sanitation Branch at 586-8000, if the person claims to be a food and drug Inspector please call the DOH Food and Drug Branch at 586-4725.

PHONE NUMBERS for Neighbor Islands

• Hilo District Health Office                    933-0917
• Kona District Health Office                 322-1507
• Kaua‘i District Health Office                241-3323
• Maui District Health                             984-8230

Submitted by the Hawaii Health Department

Our Business Program is successfully lowering operating expenses for all business insurance and administrative services and we would like to assist you in lowering your costs. Three areas of the Program that we would like to highlight today are:

• Grease Trap Bio-remediation Program

Eliminate the need to pump the grease trap, drain odors and flies, and clogged and backed-up drains at a cost that is lower than what you currently pay. Your guarantee: if your grease trap ever needs to be pumped or your drain lines ever need to be snaked due to fat, oil or grease accumulation, the service contractor
will pay the cost for you.

• Free Prescription Drug Discount Cards

As a community service through restaurants, the HRA is making available to the public free discount cards that may allow anyone filling prescriptions to pay a lower price at the pharmacy, even if they already have a prescription drug plan. We will soon be announcing this program to the public and invite them to obtain a Card at their favorite local restaurant. Contact us to obtain Cards and a flyer for distribution to your customers.

• Employment Program

Whenever any position needs to be filled, HRA members may use the sponsored full-service employment agency to locate, qualify, and schedule your interviews with job candidates at a flat rate of $100.00 per position filled. Your guarantee: if the candidate hired leaves for any reason within 30 days, the position will be filled again and again at no cost.

HRA is here to serve you.

Contact the administrator of our Business Program for further information at 808-561-0763 or HawaiiRestaurantAssociation@gmail.com