Back Eddy Pub - ABLE BC

thePublicanThe Alliance of Beverage LicenseesSummer 2010Back EddyPubAttracting theNext GenerationQuality Assurancefor BeerHow MuchDue DiligenceDo You Do?Overstocked butOut of Stock?Agreement #40026059

Thanks for MakingHefeweizen BC’s FavouritePatio BeerROBSON STREET HEFEWEIZEN

On the CoverBack Eddy PubGus Gerdei24Quarterly Publication for theAlliance of Beverage Licensees200-948 Howe Street, Vancouver, BC V6Z 1N9T 604-688-5560 F 604-688-8560Toll free 1-800-663-4883info@ablebc.ca www.ablebc.ca2009-2010 Board of DirectorsPresidentAl McCrearyPast President Al ArbuthnotVice President Jonathan CrossVice President Poma DhaliwalVice President LRS Salim KarimVice President LP Matthew MacNeilVice President Ronnie PatersonTreasurerRoger GibsonExecutive Director Kim HaakstadDirectorsBrady Beruschi, Al Deacon,Mariana Fiddler, Mike Jahnke, John Lepinski, Don Lutzak,Kurt Pyrch, Danny Rickaby, Grant SmithDirector at Large Dave CrownDesigned, Produced & Published by:EMC Publications19073 63 Avenue, Surrey BC V3S 8G7Ph: 604-574-4577 1-800-667-0955Fax: 604-574-2196info@emcmarketing.comwww.emcmarketing.comPublisherJoyce HayneDesignerKrysta FuriosoCopy EditorDebbie MinkeABLE BC Editor Kim HaakstadCopyright EMC PublicationsPUBLICATIONS MAIL AGREEMENT NO. 40026059RETURN UNDELIVERABLE CANADIAN ADDRESSESTO CIRCULATION DEPT EMC PUBLICATIONS19073 63 AVENUESURREY BC V3S 8G7email: info@emcmarketing.comThe statements, opinions & points of view expressed inpublished articles are not necessarily those of ABLE BC.Advertisers are not necessarily endorsed by ABLE BC.8Features12thePublican Summer 20108 Attracting the Next Generation12 Quality Assurance for Draught Beer18 Savvy Publicans Upping the Gastronomic Ante22 What You Get Paid For: An Open Letter from theOwner to the Crew24 Cover Story - Back Eddy Pub26 How Much Due Dilligence Do You Do?30 Card Fraud Liability Shifts to Merchant32 Overstocked but Out of Stock?36 Refusing Service Without Choking on Your Words40 Staff Training: What You Should Learn18 26Departments4 President's Message5 Executive Director's Report6 Wine Report16 Product Showcase21 Spotlight on Gin23 Liquor Sales & Trends29 Human Resources31 What's New?35 LCLB Report38 BDL Update39 BC Hospitality Foundation42 LDB Report45 Names in the News

President's MessageAl McCreary, President, ABLE BCFor your LRSThere continue to be questions about the long-term impact of severing of thetie between LPs and LRSs. Only time will reveal the full impact, however, we arevery pleased that BC government granted the 1 km distance criteria for LRSs inlate February.With the old 0.5 km separation now doubled, there is increased certainty for LRSbusinesses that another Independent Liquor Store will not be located down theblock from you. ABLE BC was very pleased that the government agreed with ourargument that there is enough retail access to liquor stores in BC, and saw thatthe 1 km separation was another way to prevent the proliferation of liquor stores.In addition to agreeing that there are enough LRS locations, the BC governmenthas continued to make it clear that there are no plans to expand liquor sales intogrocery or convenience stores. At the same time, ABLE BC has been reassured byMinister Coleman that there are no plans to lift the LRS moratorium.While government liquor stores can still locate wherever they want, there are somepositive signs in the new BC Government Employees Union (BCGEU) CollectiveAgreement, ratified at the end of April. The BCGEU represents government liquorstore employees and the new 2-year contract allows for the closure of up to 12government liquor stores. The contract also reiterates that despite the BCGEU'srequests for Sunday openings at all government liquor stores, there will be noexpansion of Sunday openings over what is currently allowed. ABLE BC is gladthat government did not give in to the request for Sunday openings, as it wouldhave significantly disrupted the current balance between government’s priceadvantage and the convenience of independent stores.Amendments to the Liquor Control and Licensing ActOn April 29th, a series of amendments to the Liquor Control and Licensing Act (theAct) were introduced. A number of these amendments address issues that ABLEBC has wanted to see changed for a long time.Government has finally made Rural Agency, manufacturer, and Private Winestores subject to the same enforcement criteria as your LP and/or LRS. Therehas been a relaxation of trade practice provisions to modernize relationshipsbetween liquor manufacturers and licensees. Licensees will also now have theability to sell pre-mixed drinks, something many licensees have requested, sothat they may use Bellini or Margarita machines. Additionally, there has been aremoval of the provisions relating to gaming from the Act, which could allow asmall number of new gaming opportunities for licensees.The government has also introduced two provisions that will cause someconcern to licensees; the first being the ability to use minors for enforcement,and the second being the ability to suspend a license for up to 14 days, withouta hearing, in extraordinary circumstances. On both of these provisions, ABLE BCwill be seeking more information from the government on how they intend touse the new provisions, and will pass along this information to our members asit becomes available.Keep seasonalemployeescoming back.Year after year.As an employer of seasonal staff, you must recruitemployees season after season, year after year.Through 365jobs you will find job ready candidates,who can return to you season after season. That’sbecause we find other employment for them in youroff-season, so they can hop between seasonal jobsthey enjoy without periods of unemployment.Qualified candidates, with a higher likelihood toreturn… doesn’t that sound like an easier idea?Visit our website for details.3 6 5jobs.caFunding Provided Through the Canada-British Columbia Labour Market Agreement4 The Publican

Music TariffsABLE BC recently went to Ottawa and presented, on behalf of our members,to the Copyright Board of Canada. The hearing was regarding new tariffs formusic to accompany dancing proposed by Re:Sound Music Licensing Company(formerly the Neighbouring Rights Collective of Canada or NRCC). These newtariffs are in addition to what you already pay SOCAN, and they will eventuallycover the same entertainment. While we cannot eliminate the tariffs, ABLE BCis negotiating on your behalf to keep these tariffs as low as possible.HSTWatch for more information, available soon, on how the Harmonized SalesTax (HST) will impact your business. Overall, liquor tax will go down from thecurrent total of 15% to 12%. LDB will increase their prices slightly to attemptto recoup the money that government will lose from the tax decrease. Whilethe exact price lists will not be available until mid-June, we expect to havemore details to share with members well in advance of that date. If you haveany questions, please contact ABLE BC.Radio AdsABLE BC is excited that our second set of industry promotional ads ran onthe May long weekend. We thank members who have contributed to ourAdvocacy Fund to make these ads possible. Donate today by contacting theABLE BC office.Olympic LRS ClosuresMost operators are probably aware that a number of LRS locations wereordered by the government to close early during the last two weekends ofthe Olympic Games. While this was very difficult for affected licensees tomanage, the government and Vancouver Police Department tell us it wasincredibly successful. From ABLE BC’s perspective, we want to ensure that thegovernment understands this was a once–in-a-lifetime event, and that wedo not believe these types of closures should be contemplated in the future.New ABLE BC WebsiteExecutiveDirector's Reportby Kim HaakstadOur new ABLE BC website is under construction, and will be launched earlythis summer. Our current website is over 10 years old, and the ABLE BC officeis really excited to launch a new, improved, and easier–to-use website, whichwill feature an improved members only area, better information about ABLEBC Associates, and quicker and easier access to information.House Policy and Due Diligence TemplatesDon’t forget that ABLE BC’s house policy and due diligence templates areavailable for download in the members only area of the website. Members tellus these are an excellent resource, so check them out if you haven’t already.They could help you to do more to prevent contraventions from occurring inyour establishment.Need your “Members Only” log-in information for the ABLE BC website? Callthe office or email us at admin@ablebc.ca.The Publican5

ATTRACTING THE NEXTGENERATIONby Alex Van Tolphotos courtesy of Element8 The Publican8 The Publican

Good Value Plus Strong Community Equals Loyal ClienteleThings change quickly nowadays. It’s hard for publicans to know where to investtime and energy to drum up business. You want to keep your regulars coming,but you also realize that time is marching on… and you want to keep fillingyour chairs. That means reaching out to the younger generation. You want totry to make them regulars too.What’s the best bet for bringing Gen Y butts to your barstools?Rule #1: Go Easy on the Pocketbook“People are money conscious,” notes Ellard Whalen, owner of the Hook & LadderNeighbourhood Pub in Surrey. It’s an especially strong concern for youngerpeople, who are just starting out. Maybe they’re juggling tuition or studentdebt; maybe they’re just scraping by on a starting wage at work.“The younger generation is looking for value, describes Emil Miles, manager ofBrandt’s Creek Neighbourhood Pub in Kelowna. “Typically we do cheap drinks,”he says. “You’ve got to do a $3.95 highball to get the younger generation in.”Three nights a week, Brandt’s Creek offers beer for $4 - a steal of a deal for thecash-strapped.Once a week, Element Bar and Grill in Castlegar offers $0.30 wings and cheapbeer. “And every day we have food and drink specials to bring in the youngercrowd,” reports manager George Vassilakakis. During the slow seasons (afterChristmas and after summer break), Element introduces a college night withkaraoke. And once the kitchen is closed and the tables are cleared for the nightclub, cheap drinks bring them in.But resist the temptation to drop your prices too low, advises Vassilakakis,especially if you have nearby competition. “Three-dollar drinks isn’t super cheap,”states Vassilakakis, “but it’s as low as I want to go.” He speaks from experience:his family also owns an Element in Penticton, a larger city with more nightclubs.“Then you start price wars, and every night becomes cheap night,” he advises.Rule #2: Offer Nice Stuff“The biggest thing in adding value for your customers is that it doesn’t alwaysmean discounting,” explains Dax Droski, Director of Business Development forthe Adelphia Group, which oversees Vancouver hotspots like PIVO and DoverArms Pub. “Strive to provide a superior product,” advises Droski. “Really listento your customers and give them what they want.” Carving out a unique nicheas a place to try out BC’s wide range of microbrewed beers, for example, is oneway PIVO has managed to make a name for itself. “The idea was to be almostlike ‘the place to be,’ where people could come and try new things,” says Droski,explaining that suggested beer pairings accompany every menu listing.That said, Droski is still sensitive to the fact that young pockets aren’t as deepas those that have been collecting change for a number of decades. “We offertraditional pub food, but taking a different twist on it,” he reports. “Lower pricepoint, higher quality, and unique food.”The Publican9

Rule #3: Rethink Your Advertising Channels“We don’t do radio advertising. College kids these days aren’t necessarilylistening to Kelowna radio,” states Miles. “Word of mouth is good for that agegroup.”Word of mouth is still the most powerful thing you’ve got going for you. It’s topof mind for Droski when he thinks about how the Adelphia Group gets peoplein the door at PIVO and Dover Arms. “It’s neighbourhood-based,” he reveals.“Developing regulars and taking care of them.”The power of social media must not be underestimated either. A blog might besomething to look into, if you’ve got staffers with the inclination. The AdelphiaGroup is putting together a blog for each of its establishments that reflect moreof what’s happening in the particular locale of each pub or restaurant.Setting up a Facebook group for your bar gives you a captive audience forall your special events. “It’s targeted,” states Vassilakakis, whose club puts outupdates about upcoming specials or concerts. “If you’re putting out flyers oradvertising on TV, half the people you’re reaching aren’t interested, but all thosepeople on my Facebook page are the ones that come to our place.” It’s one ofthe best ways he’s found for reaching the younger set.Also remember that everyone loves to win free stuff. Encourage people to signup by offering the chance to win something. “If you join our [Facebook] group,you have a chance to win tickets to concerts,” notes Vassilakakis.Rule #4: Cater to the After-Work CrowdCatch the Gen Yers before they head out to the club for a night of dancing tothe latest hip-hop. At Brandt’s Creek Neighbourhood Pub, Miles and his staffentice younger groups by offering a pre-clubbing aperitif and a food special.“You try and get them in after work for a couple of beers, before they go homeand get ready for an evening out,” he describes.Rule #5: Know What You’re Getting Into“Young people are the bread and butter coming up,” acknowledges EllardWhalen, owner of the Hook & Ladder Neighbourhood Pub in Surrey. For now,Whalen is content to relax with his crowd of regulars ranging in age from 25to about 50. “The young crowds travel in groups,” he remarks, “and they can filla place pretty quick if that place is doing what they like.” But he cautions thatit’s a tougher crowd to handle, especially where drugs and heavy liquor useare concerned.Rule #6: You Don’t Have to Hire Kids to Attract KidsSure, it might be nice to have servers who are close to the same demographicas the younger patrons you’re trying to woo. While Vassilakakis hires youngerpeople who are drawn to the nightclub scene, a wider cross-section of publicansinterviewed shows the general belief that skill in service trumps youth. “Inregards to staffing, I can’t really say we’re targeting younger servers,” states KarieKarpes, assistant manager at the Dublin Crossing Irish Pub in Surrey. “We lookfor the best people we can find, regardless of their age.” Droski agrees, sayinghe looks for the right skill set and the right attitude.In a world of constant change, a few things remain constant. People love to eat,drink and play in groups - and this rule holds especially true for the youngerset. Find ways to make it happen for them without busting their bank accounts,and you just might be building a loyal clientele for years to come.10 The Publican

QUALITY ASSURANCE FORDRAUGHT BEERby Tim VandergriftHas this happened to you? A customer comes through your doors, alreadyanticipating their order, ready to taste a crisp hoppy lager, smooth, full-bodiedale, or luscious roasty stout. You serve them their pint, but as they take theirfirst sip their face falls. They may say something, but chances are they won’t andthey may not order another, and even worse, they might leave and not return.Your beer didn’t change. Breweries expend huge efforts and significantresources on quality control, because their flavour is their brand. Your customermost likely didn’t change -brand loyalty is very strong among beer consumersand doesn’t frequently change. The most likely culprit is how your beer is storedor dispensed. You can have the most exciting establishment in your area, withgreat food, excellent selection, and wonderful ambiance, but if your beer serviceleaves your customers flat, it will soon be reflected in your sales numbers.If you don’t already have a quality assurance and maintenance program for yourbeer, the time to start is now: by the time any issue is serious enough for yourcustomers to notice and form an opinion about it, your reputation could be indanger. Your goal as a licensee is to serve your beer in the same condition as itwas when it was produced in the brewery.StorageYour first step is to ensure your beer is being stored correctly. This seems like itshould be simple: beer kegs go in the walk-in. However, due to the way carbondioxide gas (CO 2 ) behaves, one of the most important things you can do forquality assurance is to monitor the temperature of your beer cooler closely.CO 2 is a gas, and in order for beer to have the crisp fizz and mouthfeel consumersexpect, it has to be dissolved into the beer at the right pressure and the righttemperature. This is because CO 2 is soluble in liquids in inverse proportion tothe temperature. It’s useful to think of it this way: visualize two cans of soda, oneburied in ice, the other one under a heat-lamp. When opened, the ice-cold canbarely hisses and the soda inside is delightfully fizzy. The heated can will foamexplosively, and the soda that’s left inside is flat and disappointing.The same thing applies to your kegs: if your walk-in has too great a temperaturerange, your beer may cycle from perfect to foamy to match the warming and coolingcycle. This leads not only to under-carbonated beers, but also excessive foaming atthe tap head and waste as bartenders pour off foam to deliver a proper fill.12 The Publican

keg, but this isn’t realistic unless you sell a single keg per week. In a bar withregular traffic, it should be done at minimum every two weeks, and in very busybars, once per week. Remember, the time it takes to clean your lines will be morethan made up by the time spent trying to pour foamy pints or off-tasting beer.How to Clean Your LinesYou’ll need a tap cleaning jar and pump, which is a small plastic container with aconnector and a pump, a faucet brush, a faucet wrench, a bucket, safety goggles,rubber gloves, fresh water, and a standard beer line cleaning detergent. Yourdraught system supplier can recommend a good detergent for you.1. Make up a solution of your detergent in the bucket. Follow the manufacturer’sinstructions exactly.2. Shut off CO 2 regulator.3. Remove the coupler from our beer keg, unscrew the beer and CO 2 lines fromit, and place it in the cleaning solution in the bucket. Make sure not to losethe beer washer or check valve.4. Place the end of the beer line from the coupler into the bucket.5. Take apart your faucet using the faucet wrench (clockwise to remove) andplace it in the bucket as well. Take the decorative knob off first, as it may beaffected by the cleaning solution.6. Fill your cleaning jar and pump with detergent solution as per manufacturer’sinstructions.7. Connect the cleaning attachment to the faucet coupling. Be sure to use thewasher included in your kit or you may spill cleaning solution on your bar.8. Pump the cleaning solution through the hose.9. Allow the solution to soak as per manufacturer’s instructions.10. Take apart your faucet and use the brush to scrub the inside of the faucetbody and the inside of the keg coupler. Rinse thoroughly, reassemble andset aside.11. Disconnect your cleaning jar and pump, rinse it thoroughly, refill it withclean water, reconnect it to the faucet coupling, and pump clean waterthrough the lines.12. When it is completely rinsed, disconnect cleaning jar and pump and disposeof the cleaning solution and rinse water. Make sure to follow your municipalguidelines for disposing of any chemicals.13. Reassemble the faucet and reconnect it to the tap. Make sure the gasket isin place, and turn the coupling nut counter-clockwise to tighten.14. Reconnect the beer and gas fittings to the keg coupler and reattach it tothe keg. Make sure the check valve and washer are in place.15. Turn the regulator back on and re-tap the keg.It may seem like a lot of steps, but once you’ve done it a few times, it will takeless time than it does to read the list.A regular program of quality assurance for your draught beer doesn’t have tobe a burden if practiced on a regular schedule, and not only can it save youmoney, the end result will be customers coming back again and again forfresh-tasting, well-poured beer.14 The Publican

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Product ShowcaseWOODY’S SASPARILLASpirit CoolerEnglandThe latest Woody’s entryinto the Vodka Coolermarket from BeverageBrands - imported fromEngland. This new twist ona very old recipe blendstriple distilled Vodka andour secret ingredientsinto a traditional root beerflavoured cooler. It will takeyou back to the days ofsoda fountains and drive-inrestaurants!Delicious right out of thebottle, over ice or pour itover a scoop of vanilla icecream for an old fashionedtaste treat.330ml bottle x 4 $7.65SKU 120568WHITE ALEHitachino NestJapanThis is a refreshing, mildlyhopped Belgian styledbeer with a complexflavour of coriander,orange peel, and nutmeg.White Ale has won goldmedals at several beercompetitions in the UKand North America.Hitachino is one of the topcraft breweries in Japanand White Ale is one of itstop-selling beers.abv 5%330ml bottle $2.99SKU 230672720ml bottle $6.49SKU 784579CIRCUSMalbec 2009Mendoza/ArgentinaCircus wines are producedby Escorihuela 1884.89pts Winescores.ca forboth the Malbec andCabernet Sauvignon.A very good value, thisfresh Malbec oozes sweetred berries and mocha,dark earth and savouryherbs with a core of fruitcake. The palate echosthe aromas - it's quitechewy and features layersof dried fruit, espresso,cocoa, spice and leathery/earthy flavours. The finishis impressive - lengthy, andthe tannins from the midpalatesmooth and taper offat the end.Stock Spec750ml $12.99SKU 775072Cab. Sauvignon 2009750ml $12.99SKU 667956ATTILA THE HONEYAleCanadaThe buzz is genuine aboutthis beer! A combinationof exceptional specialtymalts and local BritishColumbian honey hasgiven Mt. Begbie BrewingCo. a seasonal honey alethat is unforgettable.Attila the Honey is a richamber ale with distinctivemalty characteristicsfollowed closely by thelight lingering taste ofdelicious clover honey.It truly is the ‘ultimate’summer beer.Mt. Begbie Brewing Co.is located in beautifuldowntown Revelstoke andhas been brewing awardwinningbeers for 14 years.650ml $4.95SKU 486928FINCA DEL REYTempranillo CabernetSauvignonSpainCombining Tempranillo’saromas of plums, raspberriesand blackcurrants withCabernet Sauvignon’saromas of dark cherry,cedar and tobacco, you geta sensory delight furtherenhanced by the deepfruity taste with a smoothbalanced finish. Finca DelRey Malvasia Muscat WhiteWine combines Malvasia’saromas of pears and spiceswith Muscat’s aromas ofpeach, apricot and floraltones. This fruit-forwardwine has a very smooth, wellbalanced finish. Great winesfor the patio, party or thatquiet relaxing time.Speculative Listings750ml $8.99Cases of 12Red SKU 821108White SKU 318972778-228-1122alepeople@shaw.ca1-866-454-4025www.beerthirst.com604-737-0018www.dhs-wine.com250-837-2756www.mt-begbie.com250-483-5633www.markat.ca16 The Publican16 The Publican

ROLLINGDALE WINERYTUMBLEWEEDRed, White & Pink WineCanadaFrom Rollingdale Wineryin the Okanagan Valley,Tumbleweed Red is anon-vintage blend ofeight varieties from threevintages. The wine spenta brief period in Frenchoak barrels giving a hintof spice to this mediumbodied, easy drinking,dry wine with red fruitflavours. It is an awesomevalue for a wine that is100% British Columbiangrown and produced.An off-dry Tumbleweedwhite and rosé styleTumbleweed Pink are alsoavailable. Please contactthe winery if you wish toarrange a tasting. Availabledirectly from the winerywebsite, by phone, oronline order desk.WHITE OWL WHISKYRye WhiskyCanadaWhite Owl is a Premium RyeWhisky. Whisky representsapproximately 25% of allspirits sold in Canada. Forgettasting notes. White Owl’sa symphony of the senses!Taste, smell, touch, and sight.We discovered a uniquefiltration system allowing usto remove all the colour andimpurities, and yet keep themost important parts - thedelicious Rye flavour and allthe smoothness demandedin a premium Rye Whisky.Apple Martini:1 oz White Owl Whisky, 1oz sour apple schnapps,splash of lime. Shake overice and garnish with anapple slice.Have a newproduct you wantto promote?What better place than inthe Product Showcase?Increase sales toindependent liquorstores and pubs with aneffective and affordablead in the next issue.Call 1-800-667-0955 today!750ml $9.96SKU 12013250-769-9224www.rollingdale.ca750ml $39.99SKU 122317www.highwood-distillers.comThe Publican 17The Publican 17

SAVVY PUBLICANSUPPING THE GASTRONOMIC ANTEby Jason McRobbieSean Heather & Chef Less. Photo by Jason McRobbie18 The Publican18 The Publican

There is a reason it is usually referred to as pubfare. The humble homonym is a relatively accuratedescriptor: fair to filling food with a focus onvalue. With revenue flowing most freely from thetaps, quick-pours, carafes, and bottles, food hastraditionally been approached with an eye on costover creativity and quantity over quality.At a time when fine dining is working hard tochange its name, in many cases stripping thelinen and rolling up its sleeves with rustic, regionalmenu realignment, a handful of Vancouver pubsare sticking to a new standard on the food front.Their target is not so far from their fine diningcounterparts: honest food that speaks to regionalorigins offering value and generating profit.“The whole 100-mile diet/local sourcing drive isvery powerful among consumers at the moment.People increasingly want to know where theirfood or drink has come from,” explains John Lee,an awarded Lonely Planet writer and author of anew book, Drinking Vancouver.“The best food menus are moving away fromgeneric ingredients and standard pub grub tolocally-sourced, quality ingredients. And that’sexactly what’s happening with drink menus too,”reports Lee. “We’re in a golden age of BC craftbrewing right now - although we’re still behind therest of the Pacific Northwest - and customers reallywant to taste trip around the province when theyroll up to the bar in Vancouver. The days of barsthat only serve Bud and Blue are gone.”Just as the renaissance of local ingredients inrestaurants followed upon the growing renownof BC grapes, so too does the re-emergence ofmicro and craft beer culture appear a harbingerof more regionally rooted pub grub.It is perhaps more than a trend. It is a raising of thebar. It is a new plateau of opportunity for the savvypublican seeking to capitalize on the growth of aspreading culinary consciousness, and a changingof the economic landscape. For those with an eyeon upping the ante on the plate, it is quite simplythe new way of doing things.However, the number of establishments takingthe great leap forward is still relatively small. Inpenning his pocket guide, which he playfullydubs BC‘s booze Bible, Lee took a tally of the toptables in pub land. He counts the true bellwethersof greater gastronomy with acquainted ease. It isnot a long count.“The best bars for cuisine in Vancouver arethose offering gastropub menus of preparedfrom-scratchmeals that you’d be happy to findin a good restaurant. Of course the trick withgastropub food is not to make things too fancyand to keep portions hearty,” states Lee. “Acrossthe rest of BC, I like the great brewpub beer-andnoshcombinations happening in Victoria’s Swansand Canoe - and, of course, Spinnakers, which inmany ways pioneered the idea of gastropub inthe province.”There are other contenders rising through theranks to garner such praise, some dipping theirtoes in the waters of programs such as OceanWise,others experimenting with more varied localsourcing. While Lee applauds the initiatives, heholds the majority to be pretenders to the crownof true gastropub-onomy. Few hold a candle tothe menus of the vanguards.“Everyone is jumping onboard to call theirestablishments ‘gastropubs’, but they don’t knowwhat it means and it is tough to commit to whatThe Publican19

it entails. There is just such a huge difference between the leaders and theremaining 80%,” admits Lee. “No matter how far the pubs improve their foodofferings, they still have to keep offering the value. For the majority, this resultsin a reset to the default grease-fest menu.”For those who have truly moved beyond the default, there is no turning back,and a steady turn of tables assures the move is in the right direction. Followingchanges to both the provincial liquor licensing and smoking laws, the economicturmoil of recent times has provided the impetus for pubs to take a closer lookat their offerings from pint to plate.For publicans such as Sean Heather, it has marked a much welcome return tothe table of tradition. “The mandate is to buy local wherever and wheneverpossible. Organic is less of a focus right now than local, but I am not interestedin peaches from Florida when we can be enjoying better from the Okanagan,”notes Heather, whose purchasing patterns extends well beyond Peachland toencompass local butchers, cheesemakers, producers, and growers.As the owner of a handful of successful operations carrying both liquor andfood primary licences, Heather applies the same philosophy to the plates atThe Irish Heather and Shebeen, as he does to Salt, The Salty Tongue, and therecently opened Judas Goat. While only the first two carry the qualificationsrequired to stand as pubs, none of them carry the standard pub fare. Instead,the focus stays firm. “Good food at good prices with plenty of variety so peoplecan eat with us three or four days a week and not get bored,” explains Heather.“People want to eat quality, so the savings come peripherally: no cloth napkins,no tablecloths, no frills beyond a great experience.”This naturally takes a bit more attention to detail in the kitchen than is typicallyapportioned in such settings. As such, Heather has hired a Michelin-trainedchef, a butcher and a pastry chef. A smart publican gets the first two in one, asdid Sean Heather when he brought Executive Chef Lee Humphries on board tohelm his namesake mainstay and growing Gastown dominion.“I grew up in a farming family and food had to go a long way,” says ChefHumphries. An alumnus of Opus, West, and Figmint, he stepped into the kitchenat age 15 and honed his work ethic, including butchery, while following theexploits of gastronomic trend setters such as Marco Pierre White. He holds localsustainability heroes such as Robert Clark and John Bishop in high esteem, andwhile he is not aiming for the same aesthetic heights, Humphries strives fordistinction within the pub realm.“Everything just got a little too convenient and a lot of people got lazy, butVancouver has a good palate and people know the difference. What we aimfor is decent value and wholesome, healthy food like Mum used to make,”notes Humphries.“We handle fresh fish and our own butchery onsite. Our fries are handcut. Oursoups are made from scratch,” he explains. “The product is well sourced, handledwith love and our guests know some thought has gone into the menu. If peoplethink you care, they come back.”If further proof of the formula is required, consider that Heather has nabbedThe Straight’s annual award for Best Pub Grub for five years running. Thoselooking for more tactile proof than accolades, need only take to the bench atthe nightly Long Table Series. Just make sure to book ahead. The popularitycontinues to grow.Heather offers a humble grin and a shrug of shoulders that have carried themantle of success through the thick and thin. “A lot of pubs just don’t get ityet. They have traded on chicken wings and nachos for so long and now it ispassing them by. The fryer has been at the heart of their operations and peopleare looking for more. The challenge for those kitchens is to find and convince achef to come in and make it work,” he says. “It’s a daunting, scary task to movefrom the way they’ve done things. That’s part of it. Some want to do it, but noone is there to show them how to break free of frozen chicken wings.”Heather admits that they tried doing fancier wings... once. “Never again. Thechicken wing is a benchmark for mediocrity.”20 The Publican

Spotlight on Ginby Shawn SooleThe gin market has burst onto the worldstage with a vengeance. Gone are the dayswhere “Dutch Courage” and “Mother’s Ruin” areassociated with the other white spirit. Make roomfor vodka’s second cousin, gin.You could get into demographics andgenerational mapping to work out that thegeneration of late twenties to early thirties is notsettling down and having kids as quickly as ourpredecessors, meaning that dispensable incomeand longer time in the bar scene is making yourclientele’s tastes and styles change dramatically.Gone are the days of vodka and tonic, kangaroos(vodka martinis), and vodka and cranberryjuice - most customers are jumping onto the oldschool G&T and even knowing their brand whenit comes to ordering a classic martini.With this shift in the market, what is a barmanager or owner to do? It’s time to dust off thatbottle of Bombay Sapphire on the back bar andstart training the staff on what gins are what. Ginhas a myriad of flavours through juniper heavy,such as the traditional Tanqueray or the newlyreleased Beefeater 24, to the recently delistedcitrus and fragrant Plymouth or the hard-tofindG’Vine from France. Compare how manyvodkas you have to how many gins. The bar’sgin selection should match if not eclipse yourvodka selection.When building your gin program, look at flavour profiles closely. Starting withthe house pour gin, look for something that has a good backbone that will be aquality starter for a gin martini, G&Ts, and mixed cocktails - something along thelines of Tanqueray, Bombay Sapphire, or Beefeater. All these gins are well pricedcome in a 40 oz. bottle and have universal notoriety for most of the generalpublic. Don’t ever cheap out on the house pour spirits. The majority of staff willnever ask a customer what style of gin they want, but instead just ring in a ginmartini, so you may as well have the best product at the best price to start with.That back bar is a monster in itself. I personallyhave 14 gins on my back bar ranging fromBoomsma Genever (the only Genever availablein BC) to the new G’Vine range from France. Eachgin has its place in different cocktails, but mostlyin the classic gin martini. Twists, olives, dirty, andonions all make their way into our martinis, sowhy would you not use the best gin to pair withthe accompanying flavours? Use Juniper GreenOrganic for dirty martinis, Plymouth, Hendricksor G’Vine for twists and onions, and so on. Theslight change in flavour pairs well with thegarnish or style that the customer wants.When it comes to making a fine martini, whichat the end of the day is what you will use yourgin selection mainly for, it is imperative to usethe best vermouth possible. This is a little sidenote that I still see so many bars missing in thismodern age. Vermouth is a fortified wine withadded herbs and essences, and it needs to staycapped and refrigerated to maintain its freshnessand make a much better martini in the long run.The dismissal of vermouth in martinis over thelast fifty years testifies to the nasty mustinessthat vermouth gets after being left out overthe few months it takes a bar to go through it.Good gin, teamed up with good vermouth anda house pitted, vermouth soaked olive is purejoy in a glass.Gin is the new king, and every year you see the sales increase across the globe.Vodka is staying strong, but gin is coming closer and closer to matching it in themarket. The gin section of your program should be treated the same as yourwhiskey section, each product tasting different, and able to be used in manystyles of classic martinis. Embrace, train, and educate your staff and clientele,and you will soon find gin taking the crown by force as top seller in your bar.The Publican21

WHAT YOU GET PAID FOR: AN OPENLETTER FROM THE OWNER TO THE CREWby Jim SullivanDear Team Member: I've been thinking. In the last ten years the customer hasbeen really good to us despite the fact that we may not have always been atour best for them. Americans dined out an average of five times weekly in theprevious decade, and we saw higher comparable same store sales, quarter afterquarter. Traffic was good, and even when we screwed up, the customer seemedto forgive us. Even if they didn't come back, another customer took their placeat the table or bar. This got us all believing after awhile that maybe we wererunning this thing for ourselves and not the customer.But the swift kick-in-the-butt that the global recession has given our industrywoke me up to a sad reality: I think we became complacent, unfocused, andlost sight of what we get paid for. Shame on me for not pointing this out earlierand often with each of you, but we were just too busy. Or maybe I just didn'tmake the time. (I guess it's true that volume can hide a multitude of sins.) Eitherway, we unfortunately have the time now, because our business is down andno one is sure what to do. We can certainly blame the economy for the dip, butwhy are some places still doing well and we're not as good as we were? Maybewe all took our eye off the ball. So I hope you don't mind me taking a momentto remind you all of what the customer pays you for...Be nice to the people with the money. Everything that you or I will ever have iscurrently in the hands of someone else: the Customer. Our business is run firstfor their enjoyment and satisfaction, then yours. This I swear: I will never forgetthat when the upturn comes. Service has always been our invisible product. Itcan't be stored, but it can be given away. It can't be discounted or prepared,but it can be super-sized and delivered. It's most genuine when spontaneousand at its worst when it's discretionary. It makes a good meal taste better andcustomers come back. It makes our food and beverage taste better. It costs usnothing. So heap it on. It's as simple as beginning every transaction with a smile.Minimize costs. Do you know what the average pre-tax profit on the dollar is inour business? Less than a nickel. That's right. For every dollar our customer givesus I spend 95 cents of it paying for food, beverage, utilities, napkins, rent, labour,and waste. Then I pay taxes out of the remaining nickel. Follow our recipes,suggestively sell, and please don't over-portion, overheat or break, twist, bendor snap things that aren't meant to bend, snap, twist or break.Maximize sales. I do not pay you. The customer does. When a customer buys ameal, beverage, appetizer or dessert, that purchase barely covers the cost of oursourcing, buying, storing, prepping, plating, and serving it. When you suggestand sell a beverage, combo, larger size, side, or dessert, we stand a chance ofmaking that nickel on the dollar. Chances are that if you don't, we won't. Thefuture of your job - and our business - hangs in the balance. To sell is to serve.Tell the truth. Teams must trust one another. "Lying makes a problem part ofthe future," said basketball coach John Wooden, "Truth makes a problem partof the past." Nuff continued.Be on time. Excuses are like... well, let's say bellybuttons. Everyone has one.Next time please just leave the house ten minutes earlier.Build repeat business. A new customer will visit a restaurant once by eitherchance or by choice. A coupon for, or proximity to, our restaurant may foster achance visit. A good or great experience on the part of our cooks, servers, andmanagers converts chance to choice the next time the customer thinks aboutwhere to eat. Repeat business is our lifeblood, and it means that the customerhas driven past 20 or 30 or 40 other places to choose ours. Let's give themsomething memorable every time.Save the drama for your mama. Don't act like the south end of a northboundhorse. It's not about you, or me. It's about the customer. If your mindset tendstoward complaining and whining and being sarcastic, well, that's pure poisonto the team and the customer. If you insist on endlessly railing to your fellowcrew and managers about how this is a bad place to work, and it's not like yourold job, or that life is constantly unfair, and that you would rather be somewhereelse other than here, then it's my responsibility to help relieve your misery bygiving you a job at the competition. Things that matter most should never sufferbecause of things that matter least. Just saying so.Support continuous improvement. If you see, sense, or know a better way toimprove our people, process or procedures, please let me know. I promise tolisten to your ideas before you have to listen to mine. None of us is as smart asall of us, so please bring your brain to work every shift and help us all move thebusiness forward for our customers and colleagues. We must all have a bias foraction to make things better all ways and always.Have fun. Bottom line, we all get to work in the liquor industry. It's the bestbusiness in the world, and it's a free circus and a free university every day. Yes,you get paid to have fun too! So have fun with what you do, who you serve,and who you work with. And if you see somebody without a smile, give themone of yours.I'm pretty sure we'll get through these challenging times together if you andI are habitually consistent in our execution of these fundamentals. And if youcan't do what I pay you for, then I'm obligated to find someone who can. Onething for sure: the pub business is never going "back to normal." Being prettygood at everything is not enough. We have to be great at a good many things.So there it is; you're either on the bus or off the bus. Now is the time. This is theplace. You are the person. This is our rocket; together, let's ride.Sullivision.com creates service, sales, training, marketing, leadership, and e-learning resources for the foodservice andretail industries worldwide. See their free podcasts, articles, templates and product catalog at www.sullivision.com.Visit us on the web!• Marketing Tips• Past Issues• Editorial Schedule• Advertising Ratesemcmarketing.com22 The Publican

LIQUOR SALES AND TRENDSYTD ending March 31, 2010BeerGross Sales % Change MarketshareBC Liquor Stores $354,597,637 5.0% 30.1%LRS $507,805,432 7.2% 43.2%Licensee $244,292,744 1.8% 20.8%Other Sources not Reported $ 70,055,648 5.9%Product Total from All Sources $1,176,751,381SpiritsGross Sales % Change MarketshareBC Liquor Stores $369,925,878 1.2% 49.4%LRS $221,654,428 -4.8% 29.6%Licensee $107,335,681 -2.8% 14.3%Other Sources not Reported $ 50,032,076 6.7%Product Total from All Sources $748,948,233WineGross Sales % Change MarketshareBC Liquor Stores $407,489,360 0.7% 49.1%LRS $167,067,705 5.5% 20.1%Licensee $136,883,861 -4.1% 16.5%Other Sources not Reported $118,420,632 14.3%Product Total from All Sources $829,861,596Refreshment BeverageGross Sales % Change MarketshareBC Liquor Stores $42,383,501 12.0% 33.5%LRS $61,921,430 10.3% 49.0%Licensee $13,496,183 1.8% 10.7%Other Sources not Reported $ 8,657,582 6.8%Product Total from All Sources $126,458,696Note: (1) Measured in Gross Retail Sales Dollars. (2) Report includes all liquor sales from BC market.Source: BC Liquor Distribution BranchThe Publican23

Back Eddy PubTheby Jonathan Niven24 The PublicanNo one ever said the pub industry was for thefaint of heart, especially in the smaller northerncommunities of a province so reliant on resourcesector exports. That didn’t seem to deter Gus Gerdei,who immigrated from Austria in 1970 as a cheflooking to start a new life.The opportunity he found was in Terrace. Originallythe operation consisted of a restaurant upstairs witha cabaret below. From 1975 until 1985, during thegolden age of disco, the cabaret flourished. It wasn’twithout drawbacks, however, as the disco was openuntil 3:00 am on weekends demanding many longdays and nights. As the disco craze began to fade, Gusturned the cabaret into a live entertainment venuewith bands, but his ultimate desire was to have a publicense in order to reduce his hours and to place agreater emphasis on food.Gus started to apply for a 60-seat pub license in 1988,but since he already had a 220-seat cabaret license,this posed a few problems. In 1990, he got the licenseand started the demolition. He had suffered from afire earlier that year, so it was an opportunity to startover. The Back Eddy Pub officially opened in April1991. Meanwhile, the Bavarian Inn Steak & SeafoodRestaurant upstairs continued to thrive and was ashowcase for Gus’ culinary skills. With the renovationand a pub licence, Gus had the opportunity to createthe atmosphere and guest experience he wanted.Since he was from the food industry, his mainfocus turned to food service. As a result, 65%of sales were from food. This is still the casetoday - the Back Eddy is known aroundtown as an excellent place to enjoy agood meal and large portions in arelaxed, casual atmosphere.In 1997, things began to get tough inTerrace. Other pubs and restaurantsopened and increased competition,and at the same time, the economywas struggling and Terrace beganto feel some hard times. Of course,Terrace is a city that has known its fairshare of economic hardships as well asups and downs over the years. No otherindustry feels these effects more than thepub and food service industry. When times aregreat, the industry can’t attract enough staff, andwhen times are tough, going out for dinner or drinkswith friends is the first thing to get cut from a familybudget. But through good times and bad, Gus, hiswife, and his staff have stuck it out and his positive

" This is a great business and if you give the customerswhat they want, they will give back to you.”attitude and relentless optimism have kept himgoing. The latest blow to Terrace is the closing ofEurocan that recently announced the layoff of 535employees, but even with this announcement,Gus is hopeful that the future will be bright andprosperous times will lie ahead for both the BackEddy and Terrace.So how has Gus been able to persevere throughall of this? “I have a great group of employeeswho have been with me for a long time. Some ofmy staff has been here almost as long as I have.We offer great food specials and honest, friendlyservice and we count on our regulars to keepus going.” We have a very good cross section ofcustomers from young to old. There is a seniors’care home down the street, which is great for ourlunch crowd and we have regulars who have cometo rely on our service and good value.”Like many pubs, the Back Eddy has triedentertainment over the years, but it never reallytook off. “People come here to eat, so in a senseit’s more like a restaurant in many respects, soentertainment is not as important, and in fact itcan detract from the atmosphere.”Over the past 35 years Gus has seen competitorscome and go, but the Back Eddy is still here. It canbe very frustrating, because somehow peoplethink that a franchise experience is better andit’s very hard to compete. As an example, a majorpizza franchise opened and they were very busyjust because of the name. After a few months,people realized the quality and value weresimply not there. It’s still very hard to compete ina small market when you’re up against powerfulcorporate marketing and brand recognition.In addition to the economy, other factors haveaffected Gus’ business over the past decade,just like so many pub operators throughoutthe province. As an example, the non-smokingissue hurt when it came in. The first time aroundthere was a 30% loss in business as smokingwas relegated to specific areas, but the secondtime around when there was a total ban, Guscould take reservations throughout the pub andbusiness actually went up. The smokers seem tocome anyway and are willing to go outside for asmoke, making the inside environment better forhis business. While the smoking issue has beensettled, there are other issues that continue toaffect his business in meaningful ways.A new casino has pulled people from all the pubsand bars in Terrace with the draw of licensed seatscoupled with gaming. There seems to be littledifference in Gus’ opinion between the licensedcasino and the VLTs, which pubs were lobbyingfor several years ago. The casino has simply takena significant chunk of the entertainment/pubbusiness away from private operators and placedit in the hands of the province. At one time, therewas a proposal for a certain number of VLTs ineach pub, but that went nowhere. According toGus, there seems to be no consultation with theindustry, and as a result, the casino now has a350-seat license and unlimited gaming.The Back Eddy, as the name would suggest,promotes a fishing theme celebrating the region’sworld-famous sport fishing industry. Proudlydisplayed on one wall is a 99.6-pound catch andrelease replica of a world record salmon catch. Theguide who took the lucky angler out was a friendof Russ who is with the Kermode Bear Lodge. AGerman lady caught it and there were 3 replicasmade: one for Langara Lodge, one for the lady whocaught it, and one that found its way to the BackEddy. And what an impressive fish it is! That fishis one of dozens that adorn the walls of the pub.From the end of June to the first week in OctoberTerrace sees an influx of tourists who come fromall over the world for the fishing. The Skeena is thebest salmon river in the world and has producedrecord catches for steelhead, coho, sockeye,chinook, and other species year after year.Despite all the challenges, Gus is positive aboutthe future of the industry and the many decisionshe has made over the years. He has always beena hands-on operator and it’s what he loves to do.With some seasoned advice to the next generationof publicans he has this to say; “It’s lots of hardwork and you had better know something aboutthe kitchen. And don’t drink! It’s just too easy. Imade a conscious decision, years ago, not to getinto drinking with the customers because I couldsee how easy it would be. We have to be moreand more vigilant with the government to ensureconsultation. We have a strong association but youhave to get involved. This is a great business, andif you give the customers what they want, theywill give back to you.”The Publican25

HOW MUCHDUE DILIGENCE DO YOU DO?by Murray Lott26 The Publican

“The licensee is entitled to a defence to the allegations of the contraventions, if itcan be shown that it was duly diligent in taking reasonable steps to prevent thecontraventions from occurring. The licensee must not only establish proceduresto identify and deal with problems, it must ensure that those procedures areconsistently acted upon and problems dealt with.”Enforcement Hearing decision EH09-047(Similar words appear in almost every EH decision)If you have been issued an Enforcement Notice, the probable answer to thequestion “How much due diligence do I do?” is “More”. This article will discussthe concept of “due diligence” and how to use it to keep your inspector happyand your operation ticket-free. More than just a defence to enforcement,applying “due diligence” to your business practices will help you manage youroperation within the spirit and letter of the Liquor Control and Licensing Actand Regulations.Infractions under the Act are “strict liability” offenses, which means that you oryour business can be found guilty whether or not you intended to break thelaw (unlike criminal offences, where a “guilty mind” is required for conviction.)However, compelling evidence that you did everything you could to preventan infraction - reasonably and consistently - can result in the dismissal ofenforcement proceedings. In practice this means that the Licensee mustimplement adequate training and other systems to prevent breaches of the law,and take reasonable steps to ensure the effective operation of those systems.The concept of “reasonableness” is central: “What would a reasonable Licenseeor manager, acting reasonably, have been expected to do in a similar situationto ensure compliance with the Act?” What is reasonable depends on thecircumstances. We will review some recent Enforcement Hearing decisions tosee what guidelines they offer.Every Enforcement Hearing decision includes a consideration of “due diligence”evidence and arguments, whether you ask for it or not. If you are ticketed,I recommend that you closely examine your “due diligence” case early, as itmay be the only chance you have. See if any of these fact patterns apply toyour business.Doing it RightEH07-152 (LRS serving a minor) - In a rare win for a Licensee, the manager set outsome positive findings of “due diligence” in dismissing the Enforcement Notice:• the server had taken Serving it Right• she had received initial training from experienced supervisors with ongoingsupervision• there were managers available on premise to assist regarding questions ofidentification• although no written tests were administered, ongoing informal testing andsupervision by managers ensured that she knew and continued tounderstand what she had learned• the LRS maintained ID scanning machines• having a policy of ID’ing anyone appearing to be under age 25 (note thatLCLB policy does not require this)• affixing security tags to product• extensive video surveillance and effective floor monitoring system“Reasonable” does not necessarily mean “every last little thing”. In that case theBoard’s advocate argued strongly that the lack of a store policy manual wascritical (without bothering to explain in what way.) The manager ruled thatstore managers provided a reliable and adequate resource for clerks.Doing it NOT So RightUnfortunately, it is a lot easier to find cases where “due diligence” wasinsufficient, or in a surprising number of cases, not even argued. ReadingEnforcement Hearing decisions is somewhat dispiriting: there are vanishinglyfew cases where the Licensee’s evidence of its efforts was sufficient. That appearsto be because Licensees in those cases did not critically examine their systemsto see whether they were reasonably effective to control the problem givingThe Publican27

ise to enforcement. In fact “due diligence” arguments seem to usually involveLicensees claiming “we did our best” without first taking a hard look at whetheror not they really did. Here are some examples:EH09-047 (not acting as food primary): “There were no measures in place nordid staff take any action to ensure that the requirements of the liquor licensewere being met.” (No measures?! What were they thinking!?)EH09-025 (overcrowding): “…insufficient evidence of regular meetings ofstaff, records of those meetings, written policies and procedures manuals,education protocol, testing and updating of staff. The doormen did not havemechanical counters. No in-and-out counting system. Backups for breaks notalways available.”EH09-043 (minor on premises): “The doorman on duty was dismissed…theLicensee thinks that termination shows their interest in compliance… I thinkthe Licensee could motivate staff to be more alert to the possibility of minorson the premises.”While high tech monitoring and control systems sometimes win praise, what theinspectors and managers are looking for is usually much more basic: training,reinforcement, meetings with records, and policy manuals.ABLE BC has an excellent set of “Due Diligence” and House Policies templatesavailable in the member’s area of their website at www.ablebc.ca. There is asimple checklist you can work through to assess the current status of youroperation, and a set of sample policies, which can be modified to fit yourbusiness. There are also sample forms for employees to sign acknowledgingtheir responsibilities, sample logs for recording incidents, and a sampleemployee quiz. Even if you think your “Due Diligence” is top notch, I recommendthat you review the package for tips and materials you may not have thought of.A Defence That Has a ChanceEmployees make mistakes that contravene the Act. It does not necessarily followthat the Licensee and his business should pay the price. In a Supreme Court ofBC case (Plaza Cabaret vs. General Manager LCLB [2004] BCSC), the judge ruled:“If a licensee is not to be responsible for unlawful conduct occurring in itsestablishment within the meaning of s. 36(2)(b) (allowing unlawful activities)it must prove, on a balance of probabilities, each of two facts:1. that the employee was not the directing mind of the licensee . . . and2. that those who were in fact responsible (the owners and managers) wereduly diligent in attempting to prevent the occurrence of unlawful conduct.Persons with a “controlling” or “directing” mind will of course include ownersand senior managers. Whether sub-managers or employees are “in controlof the business” will depend on the circumstances. Generally clerks, servers,hostesses, and other customer service staff will not. So the good news is thata contravention caused by the error of an employee who has otherwise beenproperly trained and supervised should warrant dismissal of an EnforcementNotice.In summary, it is usually hard to disprove the facts alleged in an EnforcementNotice; you will be outgunned by trained LCDB staff who will have meticulouslyprepared their case while the evidence was fresh. After you are served, you willbe scrambling to put together a case from cold, second hand evidence. Lookclosely at your policies and procedures: if you believe that you did everythingyou reasonably could to prevent the error of your employee, you may have adefence. If you have not really done a thorough job of training and supervisingyour staff - if you don’t have a solid “due diligence” defence - then you might aswell save your resources, and admit to the charge through a Waiver.So the answer to the question “How much ‘due diligence’ do you do?” is “allthat you reasonably can.” I suggest that it is worthwhile to look at some of thedecisions, review the Branch’s “Licensee Guides” and ABLE BC’s materials, andthink about whether you have the training and policies in place so that all staffknow and are reminded of the law and their obligations. If you can honestly saythat you have done that, then you’ve at least got a chance. Good luck!Murray Lott is a trial lawyer with the Delta Law Office. He can be reached at 604-946-2199.28 The Publican

Human Resourcesby go2Interviewing for AttitudeFinding the best job applicant with a great attitude is the essence of theinterview process. It is not an easy task, but it’s essential to the success of yourbusiness. Skills can be learned, but attitude can rarely be taught.The interview process is a vital opportunity to assess the attitude of aspiringcandidates. Most hiring managers are looking for someone who is positive andconfident, a helpful team player with a positive outlook who is respectful ofothers. While you conduct the interview, here are some ways to get the mostout of the process:1. Observe body language. Taking notice of body language, facial expressions,and eye contact could give you further insight into the individual. Constant foottapping, hand wringing, and fingernail biting may indicate a lack of confidence.Crossed arms could suggest the individual is defensive, aggressive, or closedminded.Lack of eye contact not only makes it difficult for you to establish aconnection, but also makes the individual appear shy and evasive. Be aware alsothat body language is relative to cultural background, so you may run the riskof misinterpretation. For example, some cultures find eye contact inappropriateor uncomfortable.2. Assess communication skills. Employees in the hospitality industry mustpossess superior communication and interpersonal skills. If candidates speak ina comfortable, easygoing, and welcoming way during the interview, it is likelythey will also speak that way to your customers.3. Check for enthusiasm. How enthusiastic, energetic, and confident is thecandidate? Service and attitude are fundamental for the hospitality industry,so look for someone with work ethic, respectfulness, initiative, honesty, selfconfidence,and a cheerful outlook. Problem solvers, team players, and goalsetters also demonstrate a good attitude.4. Prepare a variety of questions. Different types of questions solicit differentresponses, some of which are better at revealing attitude than others. Closedquestions reveal facts: “Do you have Serving It Right?” Open-ended questionsencourage explanation: “Tell me about your last job. What did you like aboutit?” Situational questions provide context, and a good opportunity to gaugeattitude, by presenting a what-would-you-do scenario: “A guest is rude to you.How would you react?” A combination of these types of questions will give youa full picture of the candidate’s attitude.5. Ask behavioural questions. Answers to these questions tend to revealattitude. Ask for specific examples of how a candidate handled a previoussituation. Consider these behavioural questions: "Talk about a time when youhad to deal with an intoxicated customer. Describe a situation where you hadto be honest. Give an example of when you were confident in your actions.Detail steps you took to show initiative at work. Explain a time when you hadto exercise self-control." Ask the candidate to be specific. When and where didhe/she demonstrate these behaviours? You can then verify this informationduring a reference check.For more tips on interviewing, or information on using human resources toimprove your business' bottom line, visit www.go2hr.ca.The Publican29

CARD FRAUDLIABILITYSHIFTS TOMERCHANTby Bruce MarshallCanadian banks have issued CHIP cards to the majority of their customers, andin an effort to reduce fraud, the payment industry has also announced timelinesfor retailers and POS/ATM providers to ensure their equipment is compliant withCHIP cards. Following are some important deadlines you should be aware of:October 1, 2010 - Visa® will shift financial liability for fraud to those that havenot yet migrated to EMV (chip card standard).October 15, 2010 - MasterCard® International states that liability for fraudulentactivity conducted on any lost, stolen or counterfeit card will become theliability of whichever party involved in the transaction is non-chip compliant.December 31, 2010 - Interac® Association set transition requirements toensure that the majority of Canadians will be able to fully benefit from this newtechnology by 2010, at which point the majority of ABMs and debit cards willbe converted. 50% of ATMs must be compliant by December 31, 2010, and theremainder by 2012. POS terminals must be 100% converted by 2015.Fraud LiabilityThe cost of fraudulent card use typically falls onto the issuer (the bank),sometimes to the acquirer (ATM/POS provider), but rarely to the merchant.Current merchant liability is rare and typically involves acceptance of an expiredor invalid card, a duplicate transaction or missing imprints. In the case of stolenor counterfeit cards, the bank (issuer) absorbs the cost.Change in Fraud LiabilityCHIP technology was introduced in the UK in 2005 and resulted in a 35%decline in fraud over the next two years. However, the move to CHIP technologycaused the migration of fraud to non-compliant ATMs and POS terminals. Basedon this experience, card issuers around the world - including Canada - haveacknowledged this and have mandated the liability shift for fraud. EffectiveOctober, 2010 liability for card fraud in Canada shifts to the non-chip compliantparty in a transaction, which leaves retailers open to the risk of fraud for the firsttime. Merchants that have not updated their ATMs or point of sale terminals toaccept chip cards will need to cover the cost of any card fraud resulting fromthe use of a MasterCard® or Visa® card on their systems.There are about 60,000 ATMs and 600,000 POS terminals in Canada thatrequire replacement or upgrading to accept CHIP technology. Some ATMscan be upgraded with software, others will need new components, and manywill require complete replacement. Merchants are encouraged to act nowor risk being put on wait lists due to inventory shortages from ATM and POSmanufacturers.30 The Publican

What's New?by Debbie MinkeRTDsThere are a lot of new entrants to the Refreshment Beverage category this summer, so seepage 42 for a full list.Parrot Bay Tropical Mojitos offer consumers the refreshing taste of the tropics, without thecost of a plane ticket. The Citrus Mojito combines Parrot Bay Rum with fine spirits, Triple Sec,lemon and natural mint, while the Mango Mojito is flavoured with Curacao, lime, and naturalmint. 750ml $15.95Splash Iced Tea breaks into the BC market with three refreshing flavour combinations - aroniaand blueberry, goji and cranberry, and tangerine and yumberry. 6x355ml $9.95 SpecBacardi Rev Low is a 7% vodka-based beverage made with Guarana berries, which are nativeto Brazil. It has 25% less sugar than the regular Rev, offering only 210 calories in a singleserving. Available in 4x335ml bottles or single 473ml bottlesNaked Grape Sauvignon Blanc Spritzers are light and refreshing, perfect for enjoying over icein the hot afternoon sun, and they weigh in at only 130 calories. 4x341ml $9.99 SpecWoody’s Sasparilla is a delicious twist on traditional root beer. Blended with triple distilledvodka and other secret ingredients, it’s a tasty hot summer day indulgence. 4x330ml $7.65 LRSBeers & AlesMiller Chill is a crisp, new 100-calorie light beer now available in BC. With a fresh taste oflime and a dash of salt, it offers light refreshment on a hot summer day. 12x355ml bottles$23.49, 12x355ml cans $20.49From the Tenute Collesi brewery in Italy come some distinctive beers, new to BC. ImperialeEgo is a blond, unpasteurized ale made from Pilsen barley with an elegant and fruity flavour.750ml $13.50 Imperiale Ubi, an amber ale beer that is naturally refermented in the bottle,is pleasantly sweet with intense and spicy aromas of caramel, malt, and hazelnuts. 750ml$13.95 Imperiale Maior is a dark, stout beer with a full-bodied taste and a soft, creamy, andlingering mouth feel. 750ml $13.95Kross 5 is an award-winning strong ale from Chile that uses only natural ingredients likecrystal clear water from the Curacavi Valley, premium malts from Southern Chile and selectedhops from around the world. 750ml $6.99SpiritsFor something completely different, try Pinnacle Cotton Candy Flavoured Vodka withits one-of-a-kind taste. Pinnacle Whipped Vanilla Flavoured Vodka offers a light, sweetcombination of vanilla and cream. New this summer, they’re sure to please. 750ml LRS price$19.93, SpecSkyy Infusions offer intense, natural fruit flavours infused into Skyy vodka, perfect formixing with club soda, energy drinks, ginger ale, or lemonade. Try pineapple, citrus, cherry,passionfruit, raspberry, or grape for “true to the fruit” taste. 750ml $24.95 Retail, SpecThree Olives Vodka offers a wide selection of flavours to sample. Try the Root Beer, Grape,Chocolate, Pomegranate, or Bubbles for endless drink possibilities. 750ml $19.94WineCavallino 2008 Brachetto D’Acqui is a light,summer-ready, sweet wine. Only 6% alcohol, it hasgentle bubbles filled with the aromas and flavoursof strawberries and rose petals with a touch ofwhite pepper. 750ml $29.99 SpecJaliance Crémant de Bordeaux Rosé is 100%Merlot, salmon pink in colour with elegantbubbles. Aromas of raspberry and red currantwith a fresh hint of menthol. 750ml $24.99 SpecRosé de Marcilhac from the Cahors region ofFrance is a great summer wine that pairs well withsalad and fish. It’s dry with notes of strawberry,and offers a long finish. 750ml $16.99 SpecTempus Rosado de Malbec from Argentina showsintense raspberry colour, captivating tropical andred fruit aromas and floral hints. This wine hasinteresting structure and sweet tannins, with awell balanced acidity. 750ml LRS price $12.26 SpecMount Fishtail Sauvignon Blanc Marlborough2009 from New Zealand is fragrant and focused,with tangy flavours of lime, grass, guava and seasalt. 750ml $14.99 SpecMontGras Soleus Sauvignon Blanc is made withorganically grown grapes from Chile. Pale strawcolour with green notes, its nose has lemon, grass,melon, and mineral aromas. 750ml $13.99 SpecBeach House White Sauvignon Blanc/Semillon2008 has lemon grass and gooseberry aromaswith hints of honeysuckle and tangerine on thepalate. Vibrant crispness with a citrus fruit finish.750ml $10.99 SpecialtyBodegas Virgen del Aguila Val de Paniza Red isa varietal from Spain that combines Tempranillo,Garnacha, and Syrah grapes. It is smooth, open,and well-structured. Val de Paniza White offersfresh aromas of lemons, tropical fruit, and greenapple. Both 750ml LRS Price $11.19 SpecFish Hoek Shiraz from South Africa has ripe,juicy, red fruit notes with exciting vanilla andblack pepper on the nose. Long finish of fruit andtannin. Fish Hoek Winery has built, manages, andfully supports the Ikhaya Pre-Primary School inStellenbosch. 750ml $10.99 SpecThe Publican31

OVERSTOCKED BUTOUT-OF-STOCK?by Ian FosterWhy do you have two bottles of Galliano when you haven’t sold aHarvey Wallbanger since 1979?An interesting paradox in the pub industry is that most bars carry too muchinventory - between $6,000 and $10,000 too much - yet all too often they runout of something between orders. This same problem occurs in liquor stores.Most people are surprised when audits show just how often their managersborrow bottles from a neighbouring bar or make an emergency purchase fromthe liquor store. It’s almost comical to see how often a bar can run out of brands,despite the fact that their overall inventory level is actually way too high. Theproblem, of course, is that most bars have too much of the wrong things: twobottles of Galliano and three bottles of peppermint schnapps, even though theyhaven’t poured an ounce of either in six months. Why are most establishmentsoverstocked and yet plagued by out-of-stocks at the same time?Clearly the ordering process in our industry is flawed. There are three main waysthat an operation determines how much to order. The most common is that amanager simply looks at the number of full bottles for each brand and, usingexperience and intuition, orders anything that looks like it could possibly runout. This method is the quickest and easiest. In the hands of an experiencedmanager, guessing like this can produce surprisingly good results.Unfortunately, it is also the most likely to lead to massive overstocking. Themanager’s main incentive is to make sure that they don’t run out of anything.They do not have any real incentive to order efficiently. After all, if the bar runsout of Jack Daniel’s, the manager gets the blame; but if the bar has thousandsof dollars in excess stock, nobody even notices. The other problem with thismethod is that the manager is basing his estimate on intuition, not hard data,so inevitably mistakes are made and out-of-stocks occur.The second method is just to let the liquor salesman determine the order. Thisis just as crazy as it sounds, but it is a very common practice in our industry.The result, of course, is very heavy over-stocking. Liquor salesman are paid oncommission, with bonuses for placing new products. Thus, every incentiveencourages them to over-order and to add new products, regardless of theirsuitability for the customer. “One of our clients bases their order on our weeklypar-order report,” says Tim Anders, who runs one of Bevinco‘s eleven Los Angelesoffices, “but the Youngs’ rep regularly adds extra bottles to the order for noapparent reason. One week she added a $100 bottle of champagne withoutthe client’s authorization. This kind of thing is a real problem - every one of myclients has what they call a ‘junk shelf’ full of product that they did not orderand cannot sell.”32 The Publican

A third, and more effective method, is to set up a par for each brand, based onhistorical usage. For example, if the bar uses two bottles of Jack Daniel’s eachweek, then the par might be set at three bottles. Whenever the stock level fallsbelow three full bottles, Jack Daniel’s is ordered.Setting pars works very well - at least when the pars are first determined. Butthe process is time-consuming, so pars are calculated once and then onlyre-adjusted when the bar actually runs out of something. Unfortunately, theunintended consequence is that the most popular brands are out-of-stockmost often because their usage grows over time. Thus, this method is almostguaranteed to annoy the largest number of customers.The other problem with pars is that they are adjusted up but never down.Unless the bar recalculates all the pars, brands that have fallen in popularityare over-stocked because there is no mechanism to tell management to reducethe par. That’s why so many bars have two bottles of Galliano despite the factthat nobody has ordered a Harvey Wallbanger since 1979.We see the exact same problems with ordering based on the number of emptybottles collected during the week (“bottle-for-bottle exchange” is used at mosthotels). As a brand’s sales increase, the empty bottle method means that thebar will run out. Conversely, there is no mechanism for reducing the amounton hand.while avoiding out-of-stocks. “Our aim is to grow inventory at half the rate of salesgrowth,” according to their Chief Financial Officer. Today Walmart's computerdatabase is second only to the Pentagon's in capacity.Efficient Ordering: A “Just-In-Time” SystemA better method is to establish a par that is re-calculated every week. Thus, parsare automatically raised as a brand’s sales go up and automatically lowered if abrand’s sales drop. For example, as more margaritas are sold when spring turnsto summer, the par levels for tequila and triple sec are automatically raised. Andthe process is reversed when the autumn and winter weather arrives - pars arelowered as margarita sales decrease. The result is that stock levels are optimized;just the right amount of inventory is on hand to meet demand; excess stockand out-of-stocks are minimized.This kind of system is referred to as “just-in-time” ordering, a Japaneseinnovation, which is one of the key management insights of the past 25 years.Toyota made it a central part of their cost-control strategy, and Walmart haspractically built their business on it. As early as 1966, Sam Walton realized thathis lowest price philosophy was unsustainable without computerizing theirinventory controls. Their prime concern is to keep inventory to a bare minimumCosts of Inefficient OrderingSomehow the financial implications of just-in-time ordering have not beenfully appreciated in the hospitality industry. Running out of a popular product,like Grey Goose or Jägermeister, on a Saturday night is going to result in someunhappy customers. And unhappy customers always have a cost: but it isusually a cost you don’t see - like some of them deciding to try out a “new”establishment. Inevitably some unhappy customers become lost customers,or at least less frequent ones.Most of the business world has realized that the cost of carrying excess inventoryis a serious concern too. These costs are not immediately obvious: like the factthat some of your money is tied up unnecessarily and could be invested andproductive; but also the cost of physically counting extra stock at month-endand for ordering; insurance and taxes on the inventory; and the time spentkeeping an overflowing stockroom organized. Excess inventory also increasesthe likelihood of theft: a dishonest employee may be tempted to think thatThe Publican33

with so much in your stockroom, one missing bottle will not be noticed - and,of course, he is often right.Finally there is a real danger of product obsolescence. Many bars bought toomuch peppermint schnapps or Frangelico when those products were steadysellers, or their liquor rep talked them into buying a bottle of pineappleschnapps. But now there is almost no way to sell those brands, so the moneyspent on them was really just thrown away.How Much Should You Have on Hand?The easiest way to monitor your inventory levels is to see how many daysinventory you have in stock for each brand. If you get an order every week,then you certainly don’t need 90 days of inventory in your stockroom. Whencalculating the number of days on hand, the optimum number varies dependingon the popularity of the brand. For example, if you get a liquor order every week,you need less than 14 days inventory for your wells. Very slow selling brands,however, are often going to have a 30 to 60-day inventory level without beingoverstocked, simply because it might take that long to use up a full bottle.While the number of days of inventory is a good “quick and dirty” measure, itis a fairly subjective measure of efficiency. Most well-run businesses evaluatetheir stock levels by looking at their turnover ratio. The turnover ratio refers tohow many times per year the inventory “turns over” or is replaced. Turnover issimply the number of times you sell your average investment in inventory eachyear, and it is calculated with the following formula:Cost of Goods Sold from Stock Sales during the Past 12 MonthsAverage Inventory Investment during the Past 12 MonthsFor example, if a bar has a cost of goods sold of $12,000/year and $1,000 ininventory, then the inventory will be “replaced” twelve times a year (ratio = 12x).A turnover rate of six turns per year doesn’t mean that the stock of every itemwill turn six times. The stock of popular, fast moving items will turn more often.Slow moving items may turn only once (which would mean that you only sellone bottle a year) while high volume brands turn dozens of times per year.Most experts suggest that retail inventories, like clothing or electronics, shouldturn 6-12 times per year, depending on the type of business. But alcoholinventory should be much lower and turnover much higher, because all thevariables are much better in the hospitality industry: usage is fairly predictable;most bars get a delivery every week; alcohol is not perishable; and most doesnot gain in value over time.The average bar inventory in the US turns over 21-26 times per year, accordingto the Risk Management Association (www.rmahq.org). A review of the best runBevinco clients in Canada, however, shows that 22 turns/year is easily achievable.An efficient inventory level has:• 50¢ of inventory for every $1 of weekly alcohol sales• A turnover ratio of 22x or higherFine wines would be an exception. They sell much more slowly and oftenmust be purchased in sub-optimal quantities. We recommend that fine diningrestaurants calculate their wine turnover separately and target a turnover ofbetween 8 and 10x times per year.Here is a quick way to look at your operation without doing any calculations.To achieve 22 turns/year, then for every dollar of weekly alcohol sales, anestablishment should have less than 50¢ in inventory. To pick a realistic example,if your bar has alcohol sales of $15,000 per week, your inventory level shouldbe less than $7,500.What To Do if Your Inventory is Too HighFirst, don’t make the problem worse. Fix your ordering process so that it ismore efficient (see “characteristics of an efficient ordering system” in thehighlighted box).Second, get rid of your dead stock. For spirits, the easiest way to productivelysell dead stock is to pour it as your well for a week. For example, if you are stuckwith 6 extra bottles of Bombay gin, then use it in place of your well gin. It isn’tso easy to sell obsolescent liqueurs. I would start by setting up drink specialsthat are designed to move them. Use a bartending website to search for drinkrecipes that call for the overstocked brand. For example, using the “Search forDrinks” feature on www.webtender.com, I found more than a dozen drinksmade with Alize.If the drink specials don’t work, then see if your chef can use it in the kitchen.If not, then you can only conclude that you are left with pretty useless andabsolutely dead stock. You are better off without it.Ian Foster is with Bevinco and their analysts are dedicated to improving their clients’ profitability. They can producea weekly recommended order based on your real usage for every brand. Call 1-888-Bevinco for more information.34 The Publican

LCLB Reportby Karen AyersThe Olympic ExperienceGovernment regulates liquor in BC primarily to increase public safety. Thespecial circumstances of the Olympic Games and Paralympic Games requiredan enormous amount of work by Liquor Control and Licensing staff and alsofrom local governments, police, and other agencies. To create liquor licensingthat fit within the special requirements of the Games, government created thetemporary Olympic/Paralympic license category.As an example of the scope of branch involvement, 28 compliance andenforcement staff put in a combined estimated 2,700 hours devoted solely tothe Games. This does not include the many hundreds of hours of staff time putin by licensing, management services, policy, and communications staff. Thebranch issued 58 Olympic/Paralympic licenses, 50 Olympic/Paralympic-relatedtemporary change applications, three expedited cruise ship Liquor Primary andthree cruise ship Food Primary licenses.This work took place to manage liquor during four weeks of competition,highlighting our commitment to help BC bring the Games to the world withas few liquor-related public disorder problems as possible. By all accounts,most establishments were well run, but liquor consumption on the streets ofVancouver was a significant problem.Vancouver Police report that over the period of the Olympics, there wereapproximately 21,000 liquor pour outs, 1,230 provincial violation tickets written,276 bylaw tickets, 253 intoxication in a public place arrests, 93 breach of thepeace arrests, and 144 fights. Vancouver General Hospital and St. Paul's Hospitalsaw almost double the emergency room visits during the Olympics that werealcohol related, mostly among teens and young men.Early Closure of Liquor Stores During the OlympicsAs a result of crowds and reports of consumption of alcohol on the streets, Iconcluded that there was a real and serious threat to public safety that wasbeing facilitated by purchases from local liquor stores.Under the Liquor Control and Licensing Act, I have a statutory duty to supervisethe conduct of all licensed establishments. Under section 23 of the Act, I maysuspend or impose conditions on a licence for a period not exceeding 24hours if it is in the public interest to do so. Based on the information providedto me, I concluded that it was in the public interest to close both governmentand private liquor stores early in downtown Vancouver during the weekends.While I was acutely aware of the sales and business impacts of my decision,these early closures had a positive impact on consumption, intoxication, andpublic safety.Licensee Retail Stores Since the LRS-LP SeparationAs noted in the previous issue of The Publican, on December 2nd, 2009 therequirement that an LRS licence must be tied to a valid and operating LP licencewas removed from the Liquor Control and Licensing Regulations. Since then someindustry people have been curious to know what impact there has been sincethe LRS-LP separation, specifically whether LPs are closing and whether LRSsare changing ownership.As of this article’s deadline, the branch has received two transfer applicationsfor LRS licenses, three requests to put an LP licence into dormancy, and onerequest to cancel a LP licence that was previously associated with an LRS licence.We expect more requests but we have not seen anything yet to point towardlarge change within that sector of the industry.Violation TicketsSince I wrote about violation tickets in the previous edition of The Publican,industry has asked for more information about Liquor Inspectors ticketingstaff. Specific policy surrounding Inspectors and violation tickets is currentlyin development and will be available soon.New violation ticket signage is available on our website to download for use.As a reminder, asking for two pieces of ID is still the simplest and most effectivemeans to protect you and your staff from inadvertent service to minors.The Publican35

REFUSINGSERVICEWITHOUT CHOKINGON YOUR WORDSby Robert PlotkinI received the following email:I tend bar in a busy, tourist area on the coast in central California. I have takenboth the TAM [Alcoholic Beverage Awareness] course and the new web courseat Cheers University Online. I am confident that I can recognize the stages ofintoxication, and I could probably write a report on how alcohol affects the bodyand mind.Nobody seems to go into detail about how to actually deal with an intoxicatedguest. I know it should never get to that point, but sometimes it does, or it getsvery close. I always hear ‘be courteous and professional, friendly but firm.’ Or ‘bediscreet, don't embarrass the guest,’ and ‘don't ever say, ‘Sir, you’re drunk.’Sometimes I am the only one working the bar. No manager, no owner. Giveme some actual scenarios and some actual dialogue. What EXACTLY do you sayto a guest who is getting to the point of intoxication? Please give me some actualexamples of what might be said to diffuse a situation with an emotionalcustomer. Thanks for your help. - CJWhat struck me about CJ’s note was its underlying emotion. He sounds almostdesperate to learn how to handle these situations. After having alreadycompleted two exceptional programs on alcohol-awareness though, you’dthink he’d be well prepared for the eventuality. Refusing further service goeswith the territory, so why the angst?Well, anyone who has had to cut off someone barreling along towardintoxication knows exactly why the angst. It’s intimidating and goes againstthe grain of most everything we’ve been taught about interacting with guests.It’s difficult to anticipate whether a person will acknowledge the refusal calmly,or get agitated and go ballistic.At my first bartending job in college, I worked with a journeyman bartenderso old that he had no name. He was a tread bare, old-school guy who had littlepatience for rookies. He delighted in rightly pointing out how little I knew aboutthe trade. While a surly coot with me, he worked a crowd like a maestro. I recallgreatly admiring his complete awareness of everything happening at his bar.One night he took a drink order from a couple seated at the bar and called meover. “See that woman, she’s starting to get lit. Now learn something.” Lit washis term for someone becoming giddy, or animated. He brought the drinksover to the couple, leaned in to the woman and quietly said, “Here you are...drink this one slowly because it’s the last one I can safely serve you tonight.”I remember her reaction to this day. She raised her eyebrows for a moment,thought about it and then nodded, seemingly unfazed and unperturbed. Thebrute walked back to the well grinning. “Kid, see how that’s done? I just cut heroff and didn’t refuse her a thing.”36 The Publican

As time went on, he explained to me that cutting off a guest is less involved andbetter received when done before the person becomes inebriated. He said thatway guests are actually being denied nothing, and are afforded the eveningsavingopportunity to nurse their last drink of the night.That was 1973, and for the following 20 years that was how I approachedrefusing service. My experience has been that this tactic rarely causes thepatron any embarrassment and typically doesn’t elicit a negative response.To the contrary, more often than not the person said thanks. In the handful ofoccasions when a nasty scene ensued, I had misjudged the situation and wastoo late intervening.That’s the operative point. Bartenders need to be constantly aware of theirenvironment and everything in it. There are easily recognizable signs ofimpending inebriation, but the rub is that you have to be paying attention.Before a person gets to the point of slurring, they’ve likely exhibited a dozensymptoms of intoxication. The time to intervene is early, before the person isunder the influence.Regardless of what is said when refusing service, I’ve learned firsthand thatthe simpler the approach, the easier it is to intervene. An important aspectof educating bartenders and servers is familiarizing them with how to bestaccomplish the objective as succinctly as possible. The more automatic theybecome delivering the lines, the more comfortable they’ll be when obliged torefuse service. Tact and diplomacy are the two strongest attributes they canpossess.Informing a person already intoxicated that he will not be served any morealcohol is a straightforward proposition. For example, “In my judgment you’vehad enough to drink and I legally can’t serve you any alcohol.” There is no needto add anything else. The statement doesn’t accuse the person of being drunk,and if delivered properly, it shouldn’t provoke a negative response.The primary service rule regarding the sale of alcohol should always be, WhenIn Doubt, Don’t Serve. It remains the best advice available. You can ask no morefrom your staff than to exercise their best judgment in these situations. Thereis too much at stake to base the decision whether or not to serve alcohol onanything less.In the final analysis though, more important than the exact phrases used, is theconviction to know when to appropriately refuse service of alcohol.Robert Plotkin is a judge at the San Francisco World Spirits Competition and the author of his 16th book, SecretsRevealed of America’s Greatest Cocktails - The Hottest Spirits, Freshest Places and Coolest Drinks. He can be reachedat BarMedia, 1-800-421-7179, or e-mail him at robert@barmedia.com.The Publican37

BDL Updateby Mike AllenThe last year has been filled with transition at Brewers Distributor Limited. Wewant to thank all of our customers for their support as we improve our processesto ensure customers continue to receive the world’s best beers from one ofCanada’s most proficient distributors.The start of this year has seen a number of changes in our Western operations.Firstly, after 40 years of outstanding service to the beer industry, Beau Pyatthas retired. We thank Beau for all of his contributions over the years and wishhim well in his retirement.In the fall of 2009, I was named as General Manager of BDL, overseeing all BDLoperations in Western Canada. I have been with BDL for 13 years and previouslyserved as Director of Prairie Operations. While I am currently based in Edmonton,I regularly travel between Alberta and BC, spending three days a week in thenew Port Coquitlam facility.BDL is adding a BC Customer Liaison to the local team. The new individual willbe based out of our Port Coquitlam warehouse, and will be working with ourcustomers, the brewers’ sales teams and our warehouse staff to ensure opencommunication and delivery of the highest standard of service. This liason willbe available for feedback from all customers on ordering, delivery, and emptycontainer pickups, and will report directly to the Director of BC Operations.We will forward contact information to the industry upon filling this position.We are very proud of our new Port Coquitlam facility; at 451,000 square feet,our Distribution Center is among the largest of any industry in the province.The warehouse is custom designed to meet the needs of BDL and its customers,creating efficiencies that will positively impact our overall system. The region’snew and upcoming transportation infrastructure provides more options forour trucks to access the markets we serve. The result is an improvement in ourservice, reliability, and a reduction in fuel consumption.As the province hosted the world in February, BDL experienced a 30% increasein product distributed in the Vancouver and Whistler areas. Our team inVancouver worked hard to ensure visitors had the opportunity to experienceour products and succeeded in achieving a 99% order accuracy rate duringthis period. Diligent planning by BDL staff ensured a successful month whiledelivering to our regular customers and more than 45 special event locationsacross the Lower Mainland and Whistler, while meeting all of VANOC’s securityand delivery requirements.We are committed to continually improving the service we provide ourcustomers. Over the coming months we will be engaging in regular customersurveys to obtain feedback useful to tracking and exceeding our service goals.We appreciate the time you are able to take to respond to these surveys; withyour feedback and support we can continue to grow as BC’s largest beerdistributor.Mike Allen is the General Manager of Brewers Distributor Limited.Next IssuethePublicanFall 2010• Merchandising & Accessorizing• Controlling Food Costs• Effective Signage• Technology TrendsCall 1-800-667-0955 to book your ad by July 2.38 The Publican

BC HospitalityFoundationby Renée BlackstoneGolfers will have a choice of the more challenging 18-hole Country Club courseor 18 holes on Westwood’s highly acclaimed and still challenging Academycourse that is a good test for all golfers, but a bit less intimidating for novices!Both tournaments will be a scramble format that suits all levels of golfers andthe start time will be 1 pm on both courses.All attendees will be invited to a casual pre-golf lunch and to the post-eventawards dinner. Registration fees include power carts, use of practice facilities,on-course food and beverage samples, skill competitions, and lots more.Get out those fancy pants, all you duffers. BC's premier hospitality industry golftournament will take place July 19th at the prestigious Westwood Plateau Golfand Country Club.While you're having a spectacular time on one of BC's most beautiful courses,you'll feel even better knowing you're benefiting a great cause - the work ofthe BC Hospitality Foundation, both in boosting budding food, wine, andhospitality stars through scholarships, and in helping those already workingin the industry dealing with medical emergencies.This year's tournament - the third for the BCHF - will build on the success of lastyear’s event and will again see the support of The Alliance of Beverage Licensees,BC Restaurant and Foodservices Association, and the BC Hotel Association.Westwood boasts wonderful scenery and golf, and is renowned for itshigh levels of service and hospitality. Last year, the BCHF tournamentraised more than $70,000 for the foundation's work and this year's goal is$100,000. Early registration is recommended. To register online go to www.bchospitalityfoundation.com.If you or your company wish to support the BCHF tournament through a morehigh-profile sponsorship, please call BCHF business development managerAlan Sacks at 604-984-8649 for details.The Foundation will match funds up to $5,000 for any group or individual organizinga fundraising event to support an employee with a medical issue. For moreinformation, call 604-984-8649 or e-mail asacks@bchospitalityfoundation.com.The BC Hospitality Foundation - "working together to help our own”.The Publican39

STAFF TRAININGWHAT YOU SHOULD LEARNby Jim SullivanTen years ago, I accidentally learned that the best way to train customer-facingcrew members was to have them train me. It was standard procedure then torequire the waitstaff at our restaurants to memorize ten steps of service andselling in order to be "good" servers. The rationale was that if they knew thesteps, then service excellence and higher check averages would follow.Well the lists got memorized, but the problem was that service didn't improveand sales weren't increasing. It was then that I had an epiphany: creating a "10Steps of Service" list created an illusion of simplicity attached to a complex skill.The truth is that service-giving and menu merchandising are actually complexexperiential and learned behaviours, not simple sequential ones. Gettingcustomer interaction right requires experience, assessment, customization,and collaboration.So one fateful day we ditched our steps-of-service flip charts, exchangedclassroom-style seating for round tables, and divided the servers into randomgroups of five. I told them our restaurants had two daily goals: 1) every guestleaves happy, and 2) every shift is profitable. Then I gave each table a total ofnine minutes to identify all the ways we could please guests and either savemoney or make money each shift.They attacked the assignment with relish, and the collaborative lists theycreated were more detailed and effective than our "steps". Since valuableexperience was exchanged at each table through discussion as they made thelists, the insight shared was highly prized.I also learned that people never argue with their own data; our servers actuallyused what they taught each other. Service and sales markedly improved fromthat day forward. I had taught them how to think, and in turn, they showedme what to do.Moral: teach people why first. If you do it right they'll teach you what to do andhow to do it. And now you've leapt the knowing-to-doing gap!Sullivision.com creates service, sales, training, marketing, leadership and e-learning resources for the foodservice andretail industries worldwide. See their free podcasts, articles, templates and product catalog at www.sullivision.com.• Litigation & Administrative Matters Regarding Liquor Licensing• Consultants to the Hospitality IndustryDennis Coates Barry Carter“Personal Professional Service”700 - 275 Lansdowne StreetKamloops, BC V2C 6H6Cell: (250) 319-4808Email: dpc@mjblaw.com855 W. Georgia StreetVancouver, BC V6C 3E8Phone: (604) 682-6299Email: jbc@mjblaw.comMair Jensen Blair LLP - LawyersToll Free: 1-888-374-3161 • fax: (250) 374-699240 The Publican

Position your companyas a key supplier to thehospitality industryTHE PUBLICANThe official publication ofthe Alliance of BeverageLicenseesALBERTA HOSPITALITYThe official magazine ofthe Alberta Hotel &Lodging AssociationINNFOCUSThe official voice of theBC Hotel Associationwww.emcmarketing.comPUBLICATIONSCall 1-800-667-0955today to build yourmarketshareThe Publican41

LDB Reportby Katharine JowettSummer is on its way. Beginning with the May long weekend through toSeptember, consumer interest in coolers and ciders is sure to soar. Coolers offercustomers a ready mixed cocktail with a tasty range of flavours while ciders area refreshing alternative to mainstream beer.Licensee Retail Stores (LRSs) have experienced sales growth with brands suchas Palm Bay, Smirnoff Ice, Strongbow, Rockstar, and Mike’s. Licensees have seensimilar growth with brands such as Growers, Strongbow, Mike’s, and Smirnoff Ice.New flavours are the theme Summer 2010. Popular brands like Palm Bay, JackDaniels and Vex are introducing new additions to the portfolio. Look for Palm BayStrawberry Pineapple, Palm Bay Mandarin Orange, Jack Daniels and Lemonade,Vex in the City and Caramilk Cream.Refreshment Beverage Sales GrowthRolling 12 months endingFebruary 26, 2010 (based onDisplay Dollar Sales)07/08% Chg07/08MarketShare ofRefreshmentBeverages08/09% ChgA sample of the Wholesale (Speculative) offerings in the Refreshment Beveragecategory for this summer are Bacardi Rev Low, Bacardi Breezer Tropical OrangeSmoothie 12 pack, various Growers Cider 1 L sizes, Mike’s Hard Lemonade ina 473ml bottle, and Rockstar Vodka Burner. Add to that Vex on the Beach 1 Land various original flavours of Splash Ice Tea such as Aronia and Blueberry,Goji and Cranberry, and Tangerine and Yumberry.In the last year, the Refreshment Beverage category has grown over 6% in retaildollar sales. This category is expected to continue its aggressive growth thissummer with exciting new and original flavours entering the BC market that aresure to create a buzz. Cider posted a 10.5% increase in dollar sales in 08/09 withan additional 3% increase in 09/10, while cooler sales increased 3.8% in 08/09with an additional 8% in 09/10. The Refreshment Beverage category is no longera summer phenomena as growth happens consistently through all seasons.08/09MarketShare ofRefreshmentBeverages09/10% Chg09/10MarketShare ofRefreshmentBeveragesCIDER Packaged 12.3% 1.7% 10.1% 1.8% 3.9% 1.8%Draft 49.7% 37.5% 12.7% 38.9% 5.6% 38.0%All Ciders 13.8% 39.8% 10.5% 41.1% 3.0% 40.1%COOLERS Beer -44.1% 0.06% -76.0% 0.01% -61.1% 0.01%Spirit 1.5% 54.5% 4.0% 53.2% 7.3% 53.8%Wine -3.1% 5.7% 4.5% 5.5% 18.5% 6.1%All Coolers 1.0% 60.2% 3.8% 58.7% 8.3% 60.0%All Refreshment 6.7% 6.5% 6.1%BeveragesThis summer will be filled with an innovative range of flavours for both the cooler and the cider categories. Below are the new flavours for summer 2010.New Refreshment Beverages for Summer 2010Not Including Wholesale ListingsBrand Pack Size SKU Price*Caramilk Cream 4/270 ml 120378 $12.99Vodka Mudshake Irish Cream 4/271 ml 110973 $11.99Bacardi Breezer Pink Lemonade 4/330 ml 772830 $9.55Classic Margarita By Mike's 4/330 ml 416891 $9.95Classic Margarita By Mike's Raspberry 4/330 ml 856872 $9.95Mike's Hard Black Cherry 4/330 ml 479493 $9.95Woody's Sasparilla 4/330 ml 120568 $9.95Growers Cider Blueberry 6/341 ml 891333 $9.49Growers Cider Passionfruit 6/341 ml 382507 $9.49Naked Grape Shiraz Spritzer 4/341 ml 24224 $9.49Rock Creek Cider 6/341 ml 816702 $11.07Vex Electric Lemonade 6/341 ml 12104 $9.99Vex In The City 6/341 ml 233643 $9.99Palm Bay Strawberry Pineapple 6/355 ml 120733 $8.95Jack Daniels & Lemonade 4/355 ml 780254 $9.95Palm Bay Mandarin Orange 1 L 718924 $4.99Palm Bay Ruby Grapefruit Sunrise 1 L 891093 $4.99*All prices are subject to change.42 The Publican

New Refreshment Beverages for Summer 2010Wholesale only - XPBOBacardi Rev Low 4 /330 ml 772855 $8.99Bacardi Breezer Tropical Orange Smoothie 12/330 ml 772848 $25.99Naked Grape Sauvignon Blanc Spritzer 4/341ml 775155 $9.99Mike’s Hard Lemonade 24/473 ml 459313 $2.70 / $64.80Rockstar + Vodka Burner 24/473 ml 249839 $2.99 / $71.76Hornsby’s Amber Draft Cider 6/355 ml 867614 $14.99Splash Iced Tea – Aronia and Blueberry 4/355 ml 528992 $9.95Splash Iced Tea – Goji and Cranberry 4/355 ml 417998 $9.95Splash Iced Tea – Tangerine and Yumberry 4/355 ml 293738 $9.95Growers Cider - Peach 1 L 121095 $4.99Growers Cider - Pear 1 L 874073 $4.99Growers Cider - Pomegranate 1 L 97972 $4.99Vex on the Beach 1 L 121012 $4.99*All prices are subject to change.The following charts indicate the top 10 performing brands for a rolling 12 months ending February 26,2010. Be sure to refer to the market leaders when reviewing your current listing base.Top 10 Refreshment BeveragesAll Listings (Including Wholesale SKUs)Rolling 12 months ending February 26, 2010 (based on Display Dollar Sales)Licensee Retail StoreRank SKU Brand Name Pack Size1 65649 Palm Bay Pineapple Mandarin Orange 6/355 ml2 874131 Smirnoff - Ice 4 PK 4/330 ml3 843052 Palm Bay Ruby Grapefruit Sunrise 6/355 ml4 622282 Bulmer - Strongbow Can 4/500 ml5 512046 Rockstar 1/473 ml6 503961 Rockstar - Mango Orange 1/473 ml7 428334 Mike's - Hard Lemonade 4/330 ml8 569418 Mott's Clamato - Caesar Original 4/355 ml9 673566 Big Rock - Rock Creek Cider 6/355 ml10 569400 Mott's Clamato - Caesar Extra Spicy 4/355 mlLicenseeRank SKU Brand Name Pack Size1 192203 Smirnoff - Ice 4 PK 24/330 ml2 421602 Bulmer - Strongbow 1/50000 ml3 791467 Smirnoff - Ice 12 PK 12/330 ml4 635193 Bulmer - Strongbow 6/330 ml5 605840 Mike's - Hard Lemonade 12/330 ml6 622282 Bulmer - Strongbow Can 4/500 ml7 697342 Bacardi Breezer- Tropical Orange Smoothie 4/330 ml8 253195 Growers Cider Co. - Extra Dry Apple 24/341 ml9 3228 Growers Cider Co. - Extra Dry Apple 6/341 ml10 307587 Growers Cider Co. - Natural Peach 6/341 mlThe Publican43

Top 10 Refreshment BeveragesWholesale Listings OnlyRolling 12 months ending February 26, 2010 (based on Display Dollar Sales)Licensee Retail StoreRank SKU Brand Name Pack Size1 503961 Rockstar - Mango Orange 1/473 ml2 618140 Mike's - Hard Lemonade Wide Mouth 1/473 ml3 684456 Rockstar - Light 1/473 ml4 91298 Rockstar - Pomegranate 1/473 ml5 451070 Smirnoff - Ice 1/473 ml6 618124 Mike's - Hard Cranberry Lemonade Wide Mouth 1/473 ml7 451237 Vex - Hard Blueberry Raspberry Lemonade 6/341 ml8 249243 Growers Cider Co.- Gala Apple Strawberry 6/341 ml9 110924 Okanagan Premium - White Grape 1/200 ml10 451229 Vex - Hard Strawberry Pineapple 1/1000 ml (1 L)LicenseeRank SKU Brand Name Pack Size1 253195 Growers Cider Co. - Extra Dry Apple 24/341 ml2 307389 Growers Cider Co. - Natural Peach 24/341 ml3 697763 Bulmer - Strongbow 4/275 ml4 618140 Mike's - Hard Lemonade Wide Mouth 1/473 ml5 605907 Mike's - Hard Cranberry Lemonade 12/330 ml6 895557 Mott's Caesar - Original Can 6/341 ml7 618124 Mike's - Hard Cranberry Lemonade Wide Mouth 1/473 ml8 533109 Growers Cider Co. - Pear 24/341 ml9 193029 California Cooler - Peach 4/330 ml10 531319 Mike's - Hard Lemonade Can 4/355 mlRefreshment Beverages are now popular year-round and one hot weekend can drain your inventory, sobe sure to plan ahead and stock up before the long weekend to kick off the start of a profitable summer.Consumers love to try new flavours, so be sure to have the right amount of inventory on hand.Ordering Refreshment BeveragesChoose the best order method that is convenient foryour outlet (phone, fax, email or online). If you are acurrent LDB web store customer, new RefreshmentBeverage brands for summer 2010 can be nowordered online at www.ldbwholesale.com.To be eligible to become an LDB web storecustomer, product orders must be a minimumof 30 full cases per week and your outlet mustreceive direct delivery from the LDB WholesaleCustomer Centre. For more information, contactus at ldbwholesalehelp@bcliquorstores.com orf i l l o u t t h e o n l i n e re gistration fo r m atwww.ldbwholesale.com.44 The Publican

Names inthe NewsABLE BC welcomes the following new members/associates: Rick Hart andJordy Hoover, BX Neighbourhood Pub, College Heights Neighbourhood Pub,College Heights Pub Licensed Liquor Store, Shooters Bar & Grill, and ShootersLicenced Liquor Store, Prince George; Don Calveley, Canoe Brewpub, Marina,And Restaurant, Victoria; Tom Dell, Fraser Cold Beer & Wine, Williams Lake;Jim Thompson, H & L Canada Ltd., Vancouver; Dimitrios Jim Diamantopoulos,Tidewater Pub & Grill, Delta; and Serry Massoud, Squires Four Liquor Store,Squires Four Public House Ltd., Vernon.Our sincere condolences to George Petropavlis, owner of the River’s Reach Pubin New Westminster, who just lost his wife Cymantha to cancer. They were married20 years, were together for 25 years, and have three children.The Art Institute of Vancouver was awarded a Highly Commended trophy at theWine & Spirit Education Trust’s (WSET) annual awards ceremony held in London’sfamous Guildhall.The Wine Educator of the Year award is open to individualsand companies who have made a significant contribution to WSET coursesand qualifications in the previous year whilst demonstrating commitment andinnovation in education. The Art Institute of Vancouver is the only provider ofWSET courses that has been shortlisted for the Wine Educator of The Year Awardin each of the past three years since the award was conceived. In 2008/09 13students graduated from the Art Institute’s WSET diploma program - a recordnumber in a single year in Western Canada.BC wines continue to shine in Canadian and international competitions. Checkout the impressive list of medal winners at www.winebc.com on the awards page.Russell Brewing was a double winner at the World Beer Cup 2010, held inChicago. The craft beer producer won a bronze medal in the English-Style IndiaPale Ale category for its Russell IP’eh!, and another bronze for Wee Angry ScottishAle in the Scottish-Style Pale Ale category.The Vancouver chapter of the Campaign for Real Ale (CAMRA) has announced theresults of its annual members’ poll recognizing local and regional excellence inbrewing and beer service. The Best BC Brewery award went to Phillips Brewing,and the Best BC Beer was Red Racer IPA. The Best BC Seasonal Beer award wasgiven to two brews, the Driftwood Sartori Harvest IPA, and Phillips CrookedTooth Pumpkin Ale. Surrey’s Central City Brewing was awarded Best LocalBrewpub; the Alibi Room was Best Local Beer Cafe, Pub, or Restaurant; andBrewery Creek Liquor Store, was chosen as Best Local Liquor Store for beerselection. Congratulations to all winners.Although the impact to the wine industry from the February 27th 8.8magnitude earthquake and ensuing tsunami was minimal, parts of Chile aregreatly impacted and the need for aid is real and immediate. Wine industryrepresentatives in Canada and the US have rallied to encourage donations tothe Red Cross and to the Levantando Chile Fund.An assessment by Wines of Chile indicates that the damage sustained by wineriesaffected less than 13% of the country’s cellared wine. This equals approximatelyUS $250M. Supply to countries around the world will not be affected and the2010 harvest, which has begun in the northern wine regions, is proceedingas planned. Winery owners instantly concerned themselves with the needs oftheir workers, many of whom have lost houses. There is a huge need for reliefaid with many towns and villages completely wiped out. People wishing to helpare encouraged to donate to one of the various charities providing aid, and bycontinuing to buy and enjoy Chilean wines.AdvertisersCentralA.B. Seating 46ABLE BC 14Abcco Products 6All About Jack 28All Sports Group 34BC Hospitality Foundation 46BC Hospitality Foundation Golf Tournament 13BC Hosp. Industry Conf. & Exposition 23Barnet Logic Group 46Beerthirst 16Bevinco 33Brown-Forman Beverages IBCBruce Ashley Group 16Cashline ABM/Merchant Fast Cash 39Celmec International 38City Brewing Co. 11Chemistry Consulting 4CORE Specialized Investigations Inc. 21Concord Imperial 30ContainerWorld 44David Herman & Son 16Diageo Canada 15Direct Cash BCEnergy Wise 46Granville Island Brewing IFCHighwood Distillers 17Homelife Benchmark Titus Realty 20Jack Link's Company Canada 10James Bradley Consulting Inc. 5Johnstone's Benefits 5KPMG 46Mair Jensen Blair 40Mark Anthony Group 12, 28Markat Wines Ltd. 16Matthews Campbell 46Mt. Begbie Brewing Co. Ltd. 16Murphy Enterprises 27PMA Canada 35Pacific Western Brewing 7, 19Prosperous Financial & Insurance 27Prudential Sterling Realty 29Rollingdale Winery 17Saverio Schiralli Agencies 43Sysco Victoria/Vancouver/Kelowna 36Time Access Systems 20Ward Watkins Insurance Brokers 46Wellington Estate Fine Wines & Spirits 9White Rock Distillers 37The Publican45

MarketplaceSatan's Whiskers1 oz. gin1/2 oz. Grand Marnier1 oz. dry vermouth1 oz. sweet vermouth1 oz. orange juice2 dashes orange bittersPour the ingredients into acocktail shaker filled with ice.Shake well. Strain into a chilledcocktail glass.46 The Publican