Summer 2019

The Alliance of Beverage Licensees

the

Publican

Legacy Liquor Store

Featuring

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How top6

• Creating a Profitable Bar Menu p10

•Tipping and Team Dynamics p18

• Alternate Liquor Licence Update p24

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RetainEmployees

cannabiscanadiannews

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FEDS BLOWING SMOKE ABOUT CANNABIS SUPPLY

WHAT CANNABIS SALES WILL LOOK LIKE IN 2025

MEDICAL CANNABIS WILL LOOK LIKE RECREATIONAL CANNABIS

DONNELLY GROUP OPENING CANNABIS STORES

WWW.CANNABISRETAILER.CA/SUBSCRIBE

Ontario’s first legal cannabis shops are finally here. One challenge they’ll face is Canada’s nationwide product shortage. That’s despite repeated federal government assurances of ample supplies. Read more...

Significant growth, uncertainty for licensed producers, and a 30% increase in average annual cannabis spend are all in store for Canada’s cannabis industry. Read more...

Changing federal government regulations are forcing licensed producers to roll out new packaging for medical cannabis products by April 17. Read more...

Vancouver’s Donnelly Group announced they will be launching a chain of cannabis retail stores under the name ‘Hobo Recreational Cannabis Store’. The nine stores are set to open in Ontario and BC, beginning April 2019. Read more...

Features6 How To Retain Employees

10 Creating a Profitable Bar Menu

14 The Key to Lasting Loyalty in the Digital Age

16 Legacy Liquor Store

18 Tipping and Team Dynamics: Choosing an Approach that Works for your Staff and your Business

24 Alternate Liquor Licence Update

28 3 Steps to Relentless Adaptation

The opinions & points of view expressed in published articles are not necessarily those of ABLE BC. Advertisers are not necessarily endorsed by ABLE BC.

Departments4 ABLE BC Industry Update5 BC Liquor Industry Trends9 Beer Notes: Sour Beers Are Here to Stay13 Product Showcase21 Wine Report: A Toast to Unoaked Wines22 Names in the News23 Spirit Spotlight: The Next Big Whisky Region26 BCHF Update27 What's Coming?30 ABLE BC Membership Update

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2nd floor 948 Howe Street, Vancouver, BC V6Z 1N9T 604-688-5560 F 604-688-8560Toll free 1-800-663-4883info@ablebc.ca www.ablebc.ca @ABLEBC

2018-2019 Board of Directors & ABLE BC Staff

President Al McCrearyPast President Poma DhaliwalVice President Al DeaconTreasurer Trevor KaatzCannabis Spokesperson Damian Kettlewell, Directors Brady Beruschi, Michael Brown, Patrick Greenfield, Damian Kettlewell, Dave McQuinn, Gerald Proctor, Stephen Roughley, Randy Wilson, Barry Zwueste Director-At-Large Lorne Folick Executive Director Jeff GuignardDirector of Membership & Communications Danielle Leroux

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Legacy Liquor Store

Summer 2019

4 The Publican

by Jeff GuignardABLE BC UpdateI have now served as ABLE BC’s Executive Director for five full years. Even typing that sentence feels unbelievably surreal. It’s been a remarkable journey, and I’m both proud, and perhaps a bit surprised, to say that I still absolutely love this job. Frankly, I can’t believe how fast the time has flown by.

We’ve been through a lot together these past five years. The 2014 Liquor Policy Review, the change from retail discount to wholesale pricing, aggressive competition from government stores now open on Sundays and selling refrigerated product, happy hours and minors in pubs, the first new provincial government in 16 years, and legalization of non-medical cannabis. We’ve also created the BC Liquor Conference and the BC Hospitality SUMMIT, and I’ve traveled about 15,000 km on my motorcycle—everywhere from Prince Rupert to Fort Nelson to Fernie—to meet many of you in person. I’ve learned a tremendous amount about our industry and your businesses, and have come to know many of you as friends.

I cannot thank you enough for your generosity, commitment, and support during this time. I literally could not have done my job without it. For my part, I’m still every bit as committed to the work of protecting your investments and advocating for your interests as I was when I started this job five years ago.

Recent Policy ChangesAs always, we still have a lot of hard work ahead of us to keep building and sustaining a vibrant private liquor industry in BC. As we continue to await progress from government on our 2018 Business Technical Advisory Panel recommendations, there have been

a few important changes at the federal level that will impact BC’s private liquor industry.

Increasing Federal Excise TaxesFor the third year in a row, on April 1st the price of all alcohol in Canada increased. This is due to an automatic increase to the federal excise tax on alcohol—an “escalator tax” that will keep going up every year. While consumers might not notice it immediately, since the tax is imposed at the production level, it won’t take long for manufacturers, agents, liquor retailers, and publicans to see their costs rise across the board.

As members well know, Canada in general, and BC in particular, already impose some of the highest taxes on alcohol in the world. According to Beer Canada, Canadians already pay about five times the beer tax that Americans pay and, on average, nearly half of the price of beer in Canada is federal and provincial government tax. In the case of spirits, Spirits Canada has calculated that up to 80% of what consumers pay is taxes and government markup. Although the federal government claims the new excise tax increases are designed to rise with changes in the consumer price index, in practice the tax increases have been outpacing inflation. For example, federal excise duty revenues on spirits alone rose a staggering 17.8% last year.

ABLE BC strongly objects to this automatically increasing “escalator tax”. This tax was adopted without any stakeholder consultation or industry analysis of its impact on consumers, workers, producers, or farmers. Worse, this increasing tax was imposed at the exact same time as the US cut

its taxes on alcohol—creating a further competitive disadvantage for Canadian producers.

We have already joined liquor industry associations from across Canada to protest this “escalator tax”. Please consider adding your name to the online petitions such as axethebeertax.ca.

Impact of the Federal BudgetThe federal Liberals' pre-election budget promised to remove the requirement that alcohol moving from one province to another must be sold or consigned to a provincial liquor authority. Provinces and territories will still regulate the sale and distribution of alcohol within their borders, but this change will allow customers to purchase alcohol directly from a producer and ship it to their residence in another province—a practice that US visitors to Canada’s wineries and other producers can already enjoy.

If fully implemented, this will be an important opportunity for BC’s domestic wineries that have been seeking to legally ship products directly to tourists and consumers across provincial borders for many years.

While some members may be tempted to view direct-to-consumer shipping as competition to traditional retail markets, this has not been the case in other jurisdictions where the practice is common. Allowing domestic producers to maximize margins on direct-to-consumer sales typically leads to increased demand for those products, especially among tourists. This would be good news for our retail and hospitality sectors as well.

As always, if you have any questions or concerns about these or other liquor policy issues, please don’t hesitate to drop me a line at jeff@ablebc.ca.

5 The Publican

BC craft beer continues to gain market share at the expense of domestic commercial and imported beers. Consumers are also purchasing a lot more coolers in both retail and hospitality, although there are substantial increases in wholesale sales as more varieties of RTDs are being introduced into the market and being stocked in stores. The rise of low calorie spirit coolers have really contributed to this category’s growth.

BC Liquor Industry Trends

Beer - Domestic BC Commercial 35,981,668 -15.6%Beer - BC Micro Brew 7,153,371 +12.2%Beer - BC Regional 9,655,454 -4.3% Beer - Import 9,367,541 -14.5% Cider - Domestic & Import 4,066,857 +1.6% Coolers 6,808,252 +35.6% Gin 431,157 +6.2% Rum 1,255,179 -3.6% Tequila 239,739 +11.5% Vodka 2,397,994 +1.0% Whisky 2,235,493 -0.5% Wine - BC 11,171,935 +3.2% Wine - Canadian 187,742 +23.6% Wine - USA 2,145,886 -6.0% Wine Total 21,695,319 +0.1%

Beer - Domestic BC Commercial 6,525,860 -9.7% Beer - BC Micro Brew 2,950,620 +14.2% Beer - BC Regional 2,405,134 +3.4% Beer - Import 2,172,511 -9.2% Cider - Domestic & Import 546,764 +7.5% Coolers 224,885 +14.6% Gin 80,547 +7.2% Rum 100,984 +2.1% Tequila 83,090 +16.9% Vodka 260,266 +1.8% Whisky 163,071 +0.4% Wine - BC 1,471,596 +2.6% Wine - Canadian 15,965 +3.1% Wine - USA 205,579 -5.3% Wine Total 2,564,545 +0.3%

Wholesale Sales in Litres with % change over 2017October - December 2018

Hospitality Sales in Litres with % change over 2017October - December 2018

Source: BC Liquor Distribution Branch

Tequila continues to see strong growth as consumers realize that high-end tequilas are great sippers and mezcal becomes more popular.

Canadian wine has seen tremendous growth in retail sales, but that growth has not been translated into higher sales on premise, which means that hospitality establishments should start carrying more Canadian wines as the consumer obviously wants to buy them.

6 The Publican

TIPS FOR CREATING A GREAT WORKPLACEHOW TO RETAIN EMPLOYEESby Gillian Macgregor

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7 The Publican

It’s exasperating to have a revolving door. You hire, they work a short time and leave. And sometimes they don’t even bother to tell you. And you start the whole time-consuming process again.

HiringStaff retention starts with smarter hiring. Hiring a person because he appears alive and can spell his own name is probably not going to get you the best fit with your team. It’s hard during this time of labour shortages to hold out for the best, but it will pay off. These days, having a good hiring process will show prospective employees that you have a professionally-run company.

Here are some tips for conducting a professional interview:

• Interview in a quiet place and don’t allow interruptions. It’s important that you and the applicant are able to show your best side. Remember, the applicant may have several job offers by the end of the week. You want your interview to be remembered favourably.

• Have a clear job description and a list of job-related questions. Ask every applicant the same questions and keep notes of answers. Keep these notes for at least a year, as you could be asked to produce them.

• If possible, have another employee assist with the interview. One person can ask questions and the other can take note of the answers.

• If the position requires skilled manual labour, set up a test of the skill and watch the applicant perform it. If this is done as part of an interview, you don’t have to pay. However, if you invite people for a test shift, you must pay them the appropriate minimum wage for that test shift.

• It’s extremely important to require references and check them. Always ask, “Why did the person leave?” and “Would you hire this person again?”

Orientation and TrainingOnce you have hired someone who seems like they will be a good team member, it’s important to invest time orienting and training them. If you have an employee handbook outlining the rules, policies, and values of your business, now is the time for them to read it. If you don’t have an employee handbook, it would be a good idea to create one. For minimal cost, there are templates you can follow to make your own, or you can contract it to a professional. The handbook should include company values, dress code, breaks, vacation assignments, punctuality, sick time, harassment and bullying policies, availability of benefits, time off, etc.

For the new employee’s first few shifts, pair the person with one of your best people to show them the ropes and introduce them to their coworkers. A training plan is a useful tool. It should cover everything from the location of staff toilets and break areas to how the POS system works, and the manner in which the company likes employees to interact with customers. The sooner the new hire is integrated into the workplace and welcomed by their colleagues, the sooner that person will be a functioning part of the team.

Having A Great WorkplaceIt is interesting to note that employees say that they will stay longer if they feel part of a team and their contribution is appreciated.

Appreciation doesn’t have to cost much:

• Tell employees, publicly, privately and often, how much you value their contribution.

• Keep some greeting cards and gift cards in your desk. A little reward to show your appreciation is always nice.

Employees say that they will stay longer if they feel part of a team and their contribution is appreciated.

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8 The Publican

• Working in this industry is hard on the feet and back. Gift cards for pedicures and massages at a nearby spa will always be appreciated. You can probably make a deal with the spa to discount the services if you discount meals for their employees.

Here are some other important ways to create a great team and workplace:

• Provide medical and dental benefits if you can afford them. You may find them less expensive than you think. You will attract employees who will stay with you for those benefits.

• Offer training to help your employees reach their goals in the hospitality industry, such as Sommelier or chef training.

• Offer predictive scheduling. Schedule your employees to work when you need them, as far in advance as you can. They have lives too and will prefer to work for you rather than someone who schedules at the last minute.

• Know your employees: their lives, their hobbies, and their interests. One employer who is very successful at retaining employees takes a different employee out on a coffee date each week to get to know them as people. Discuss how they are feeling about their jobs, what their goals are, and what they like to do. If possible, integrate some of their passions into your business.

• As part of your mission statement, support charity. Make sure the public, by way of your social media accounts, knows you support charity. Find out what charities your employees hold dear and support them too. People like to be proud of where they work. Having an employer who gives back will make them proud.

• Be as green as you can be. People like working for employers who reduce their carbon footprint by using biodegradable products, limit waste, and compost organic material.

• Always back your employee up. If the staff member is being harassed by a customer, intervene on their behalf.

• If an employee has a problem, help them to deal with it.

• Don’t use alcohol as a reward. Be very clear with all your employees that you are a clean and sober business and that drinking or drugs at work will not be tolerated.

• If you have rules, make sure you apply them equally. Don’t show favouritism for one employee over another as it will foster resentment.

• Pay fairly. Don’t expect employees to use their own time to close up or do other tasks.

Be the boss you would have liked to have had when you first started out. Wouldn’t you have liked a boss who was open and honest, praised you when you did well, didn’t yell if you made an error, who knew your pets’ or your kids’ names, treated everyone fairly and equally, kept calm when things were hectic, rolled up her sleeves and helped out when it was busy, didn’t play favourites, and encouraged staff, listened to suggestions, and often used employees’ ideas? Be that boss.

9 The Publican

by Joe Wiebe, photos by the author

Beer Notes

Tart and Refreshing: Sour Beers Are Here to StayI admit that the first time I tasted a sour beer it was definitely not love at first taste. That was quite a while ago, however, and now I definitely have an appreciation for these tart and refreshing beers, and count some sours among my favourite tipples. Many beer lovers have a similar reaction the first time they try a sour. Interestingly, it’s often people who say they don’t really like beer who smile the first time they taste a gose or a gueuze, which are not the same thing, although they are both sour styles.

Sour beers date back centuries in Europe, especially in Belgium where the producers of sour lambic beers (named for the town of Lembeek) have their own regional designation just like champagne makers in France. Lambics are spontaneously fermented in open-air “coolships” (large, flat, rectangular tanks) and then aged in oak barrels for several months or even years. Bottled versions are blends of multiple vintages, ensuring that the best flavour profile is achieved. The traditional styles include gueuze (blended with no fruit), kriek (fermented with cherries), frambois (raspberries), peche (peaches), and cassis (currants). Lambic producers include: Cantillon, Boon, 3 Fonteinen, and Tilquin (which is a blender using lambic bought from breweries).

Other Belgian sours aged in wood include oud bruin (sour brown ale) and Flanders red (sour red), which are often aged in foeders (big oak vessels). Even though they exhibit cherry or plum flavours, no actual fruit is involved. Examples include Rodenbach from Belgium and Strange Fellows Brewing’s Reynard here in BC.

Germany also has a sour beer tradition that gave us Berliner weisse, a light, refreshing style that is traditionally sweetened with fruit syrups, as well as the rarer gose style, which is a slightly salty, tart wheat ale. Driftwood Brewery introduced the style to BC several years ago and continues to release its Cry Me a River Gose each summer. Many BC brewers have followed their lead, including Ravens Brewing, whose Corvus Lingonberry Lime Gose won a gold medal at the 2018 World Beer Cup.

While some craft brewers adhere to the traditional, time-consuming barrel-aging method, many have also adopted a more accelerated approach to making kettle

sours. This process involves adding lactobacillus bacteria (the same thing that makes yogurt sour) to unfermented beer in the brew kettle or fermentation tank and holding it at a warm temperature until the desired pH is reached. This can speed up the process considerably, which allows the beer to be packaged much sooner.

Sour beer lovers are divided on whether or not kettle sours taste as good as traditional barrel-aged sours. Critics say kettle sours are one-dimensional or not as complex, while proponents feel kettle sours offer brewers flexibility to experiment with unusual fruits or dry hopping techniques. From a price perspective, barrel-aged sours are often sold in the $15-$25 range reflecting the brewery’s additional investment in time and infrastructure, while kettle sours generally sell for less than $10 for a 650-ml bottle. Many are also released in tall cans now, although some of the mobile canning services will not package sour beers for fear of infecting their systems.

Most breweries in BC make kettle sours: Four Winds Brewing’s Nectarous won Canadian Beer of the Year in 2016, and Fuggles and Warlock Craft Works has a strong list of fruit-imbued sours including Kiwami Plum Sour.

More and more breweries in BC are adding foeders to their facilities. As Iain Hill of Strange Fellows Brewing says, “Foeders are just a gigantic barrel,” but with much less wood surface area for the volume of beer. Micro-oxygenation through the porous wood gives extra character to beers aged in these vessels and the results can be very tasty. Examples from BC come from Central City Brewers & Distillers (several releases including Pia); Four Winds Brewing (several beers including Pomona); Strange Fellows (Coup de Foudre and many others) and Category 12 Brewing, which just started putting beer into its new foeder late in 2018.

Many of these beers are well suited to cellaring, and some restaurants have begun to offer cellared beer lists. Tap houses like the Drake Eatery in Victoria and the Alibi Room in Vancouver always have several sours on their menus. Some private liquor stores have also started to set aside sour beers in a special section, because they know that devoted enthusiasts of these tart and tasty beers seek them out wherever they are to be found.

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CREATING A PROFITABLE BAR MENU

10 The Publican

by Brice Peressini

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People are drinking differently. To be more specific, people are drinking less alcohol. The reasons for this are varied and complex, but it is undeniable that the volume of alcohol consumption is down. If we dig deeper into this issue, consumption is down even more drastically in the younger demographic. Millennials are drinking significantly less than the generations ahead of them.

I saw this change firsthand in my time behind the bar and I think it is a good thing. This may sound like a funny statement from someone who is in the business of moving booze. However, I didn’t say people were spending less. In many cases, when people drink less, yes they are spending less money at your establishment, but this doesn’t need to be the case.

How can we maintain a high guest cheque average, while people are drinking less volume? Well, the second trend we are now seeing across the board in the beverage industry is a drastic shift to drinking higher quality products and premium offerings. From better whiskies, to craft mocktails, guests are willing to pay for higher quality menu items.

Transitioning to Selling QualityHow does your operation transition away from a model where volume has been pushed over quality?

There are three key factors to this transition:

1. Carry premium products that appeal to the demographic of your establishment.

2. Educate your staff on these products and get them excited to educate the guests on them.

3. Create an exciting non-alcoholic drink list.

Carry Premium ProductsThe first factor isn’t as easy as it sounds. Premium products are going to have a different meaning, depending on your operation. Focus on what you excel at, and dig into interesting offerings in this field. If you are a beer house, find some cask-aged

stouts or limited edition offerings.

Digging deep into what you excel at and finding the fascinating stories from that line will resonate with your staff, and this will lead them to be excited to share the story with your guests.

This same strategy can be successfully applied to any operation. Look at what the leaders are doing in the category where you thrive, and start to offer some of the unique, premium, and higher margin products in that category.

12 The Publican

When this strategy is properly put into practice, your operation will not just increase margins from your current guests, but will also attract new customers to your business, with the opportunity to turn them into regulars. Win-win.

Educate your StaffThe second essential element to selling higher margin premium products is to have a team at your restaurant or bar that is well trained in talking about your new items.

Stocking premium products is not the same as selling premium products. The people on the floor need to be able to talk easily, and with excitement, about some of the new items that you are offering. Like anything in your operation, successfully passing on the information your team needs and having them not only digest the information, but make it their own, is essential to your continued success.

Training your staff on new offerings may seem like a daunting task, but it doesn’t have to be. Lean on your leadership team. Single out someone who is passionate about the particular category that you are beefing up, and have that person give a short educational tasting and seminar to the rest of your team. Having the information come from “one of their own” will have more impact than you going up there and telling them that it is in their best interest to do what you’re asking them to do.

You can also lean on the brand representatives for the new items you are carrying. Brand ambassadors want to expand their market, and they don’t just want your bar to carry their product, they want to make sure it moves.

Premium brands can be a tough sell, but educated staff makes it much easier.

Create Exciting Non-Alcoholic DrinksAnother area that is exploding in growth, of which many bar programs don’t properly exploit, is non-alcoholic beverages.

When guests choose not to drink alcohol—or whatever reason that may be—many times they will default to a juice or soda water.

This is a lost opportunity. It’s a lost opportunity for excellence in hospitality. Taking care of the people that come through your doors is what makes people regulars. People spend their hard earned money in places where they feel comfortable. By taking care of the people who choose not to drink on a given night, you are showing them that they’re important, which many establishments do not accurately convey. An interesting non-alcoholic list will get people to your venue that may otherwise stay at home.

People who choose not to drink often feel left out of the party. I’ve seen this numerous times with pregnant women who just want to feel included. When you make these people feel included, they not only come back, they tell their friends.

A well thought out non-alcoholic list should once again match the branding of your overall operation. If it’s a cocktail bar, have a specific section that’s dedicated to really exceptional mocktails. If you operate a beer hall, have an IPA, a Kolsch, and a Lager that are all non-alcoholic. If wine’s your feature, offer sparkling ciders and dealcoholized wine.

Again, the success of your non-alcoholic program will rest in the hands of your team on the floor. Get staff excited about upselling that cranberry soda to a craft mocktail, and that transaction went from $3 in revenue to $10.

Be creative with how you promote this to your staff. Make sure that guests are aware of your non-alcoholic offerings and watch the revenue from non-alcoholic drinks flourish.

By combining a thoughtful push to higher margin offerings, and layering in an excellent list of non-alcoholic offerings, you will see your margins go up, while maintaining or increasing revenue. On top of it all, your guests will suffer fewer hangovers. Win-win.

Brice Peressini with Omakase Consulting was a speaker at the BC Hospitality Summit held in April.

Focus on what you excel at, and dig into interesting offerings in this field.

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14 The Publican

THE KEY TO LASTING LOYALTY IN THE DIGITAL AGE by Chris Malone

As digital devices and services have proliferated in food service over the past decade, it seems that customer and employee loyalty have generally become more difficult to build and sustain. Despite this trend, a few companies have managed to continue their growth undeterred by The Digital Age. One of these is Starbucks, which has generated +4% same store sales growth in each of the past five years. What accounts for their consistent growth and loyalty? I learned the answer the hard way over a decade ago and the lesson remains just as relevant today.

It was the summer of 2006, when I first learned that Starbucks’ tremendous success is largely due to something other than the quality of its coffee or the location of its stores. At the time, I was senior vice president of marketing at Aramark, a $13 billion company that provides food service in schools, hospitals, universities, corporate offices, and stadiums around the world.

At the time, Aramark was a licensee of Starbucks and operated about 75 of its coffee shops on college campuses, but Aramark had been struggling to deliver the kind of customer experience that Starbucks was known for. As a result, Aramark was at risk of losing its Starbucks license.

Now this would have been a huge problem for Aramark, so we pleaded with Starbucks to give us a chance to turn things around. In a last ditch effort to salvage the relationship, a team of Aramark executives was invited to spend a few days at Starbucks headquarters in Seattle to get immersed in the company’s operational

philosophy and approach. I was fortunate to be among those that made the trip.

During our visit, I expected to hear about how Starbucks prepared their coffee, designed their stores and standardized their customer experiences. And we certainly heard about some of those things. However, the thing that stood out most for us–the thing that Aramark was missing–was something entirely different. It related to how Starbucks recruited, managed, and motivated its employees.

In particular, they told us about something called the Little Green Apron Book, which as the name suggests, was a little green handbook sized to fit inside the pocket of a Starbucks’ apron. The book describes for employees what Starbucks call “The Five Ways of Being,” which are: be welcoming, be genuine, be considerate, be knowledgeable, be involved. For each of these ways of being, the book offers specific examples of behaviours that describe what that way of being looks like.

Perhaps most surprisingly, these “Ways of Being” weren’t just training ideas that sat on a shelf somewhere. They were the core management approach in every location. Every day, Starbucks “partners” would catch one another in the act of one of these Ways of Being, whether on behalf of a customer or a colleague. They would present one of these cards to their colleague with a short description of what they had done on the back. The cards would then be collected for each person in an apron on the wall with cardboard cuffs in the back room.

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At the end of each month, these cards were sent to the district office where they were summarized in stories that were shared across the organization, celebrating all the ways these “Ways of Being” were practiced. They shared some of these stories with us and one story in particular made a big impact on us.

We were told about a Starbucks’ store with a regular customer named Pete. Pete was a quiet, elderly man that came in several times a week for a simple cup of coffee while he read the newspaper. The Starbucks’ baristas knew him by name and how he liked his coffee. Pete had been a regular at the store for a few years, but then one day his visits suddenly stopped.

Some weeks later, a young woman showed up at the store asking if anyone there knew of an older man named Pete, and of course, everyone did. She told the employees that Pete was her father, and that he had recently passed away.

While cleaning out her father’s apartment, the young woman found something that surprised and

confused her. There were two large bags filled with Starbucks cups with hand written notes to her dad that said things like “Have a nice day”, “Come back soon” and “Hope you feel better.”

Apparently they meant so much to her dad that he couldn’t bear to throw them away, so she wanted to come down and thank the staff for the obvious difference they had been making in her dad’s life. She never knew about it before.

So it begs the question, what caused Pete to keep the cups? Was it the quality of the coffee? The price? The location or the rewards program? No, it wasn’t any of those things. It was those simple gestures of goodwill and kindness that make

another person feel valued and cared about. These little things that cost us nothing more than a bit of extra effort and consideration make all the difference in the world.

That’s what we were lacking at Aramark in operating Starbucks stores. We needed to aim higher than delivering prompt service or a properly made

beverage. We needed to aim for making a lasting difference in the lives of customers every day. We needed to aim for making a lasting difference in the lives of customers every day. If we are willing to aim for that higher purpose, we’ll get all the lasting loyalty and growth we want right along with it. That’s the real secret to Starbucks continued success, as highlighted by CEO Kevin Johnson in their Q1 2019 earnings call.

"Our Starbucks store partners who proudly wear the green apron are at the center of connecting with customers and we are on a mission to support them by simplifying work and reducing some of the non-customer-facing tasks that historically have taken up to 40% of their time," he explained.

So even in The Digital Age, the key to lasting customer and employee loyalty in food service remains the basic human connections that can occur between them. Food and beverage operators of all kinds would do well to remember and embrace this in their own establishments.

Chris Malone is Managing Partner of Fidelum Partners and co-author of

the award-winning book, The HUMAN Brand: How We Related to People,

Products & Companies. He recently delivered a keynote address at the BC

Hospitality Summit in Kelowna.

Be welcoming, be genuine, be considerate, be knowledgeable, be involved.

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Legacy Liquor Store by Joanne Sasvari

store since before it opened—Lamb recalls holding a whisky master class by candlelight before the power was even turned on.

“A better educated customer base will buy a better product,” he says. “Educating people makes them better drinkers. And that’s how we grew our business.” He explains, “The more they know about craft beer, the more they’ll give you for beer. The more they know about how wine is produced, the more they’ll pay for good wine.”

Typically, the store offers two to three master classes a week. Although during Negroni Week, it featured 100 15-minute seminars on how to make the classic Italian cocktail. “We’re where you learn to do these things at home,” Lamb says.

All of that means staff training is essential, and many of the people working at Legacy are trained sommeliers, cicerones and spirits specialists. However, service at Legacy goes beyond being able to offer informed advice. It also means knowing what their customers are craving.

“I used the census data really early on,” Lamb describes. “If there are 400 people in the city who want a product and no one stocks it, we’ll stock it because they’ll drive past everyone else to get it.”

For instance, he was shocked to find that existing liquor stores didn’t carry a selection of amari in predominantly Italian neighbourhoods. Legacy does. Legacy also carries arak, feni, baijiu, and pálinka. “We have so many unique products. We are pretty much the only game in town for a lot of indigenous products,” Lamb says.

Now, back in 2010, the store could have gone in a completely different direction, but even then it was becoming apparent that private stores were going to have

The Olympic Village Store has Raised the Bar for All Private Retailers in BCIn 2010, Olympic Village was the most contentious chunk of real estate in Vancouver. A “ghost town,” it was called, and “a billion-dollar boondoggle.”

However, even as headlines reported multi-million-dollar cost overruns, myriad construction problems, voluntary receivership, and glacially slow sales, Darryl Lamb could see the neighbourhood’s potential. In November 2010, he helped open Legacy Liquor Store right in the middle of all the controversy and created a destination for all who want to drink deep of the finer things in life.

Now Legacy Liquor has just been named ABLE BC’s 2018 Liquor Retailer of the Year.

“It took years for people to realize that Olympic Village isn’t empty,” says Lamb, Legacy Liquor’s Brand Manager. “We could easily stretch our margins and become a crappy convenience store because we’re so busy down here, but that’s not what we want to do. We’re not a chain. We’re Hermès. We’re Louis Vuitton.”

At 8,600 square feet, Legacy Liquor is one of the largest privately owned liquor stores in BC and boasts more than 6,800 skus and over 58,000 products. It is high-ceilinged, teak-panelled and elegantly designed in a clean, contemporary style. It is definitely not your typical mom-and-pop LRS. Lamb credits one of the owners, Blaine Culling of Granville Entertainment Group, for “building something that was gorgeous,” including a private cellar “that looks like a chapel.”

One of the store’s most notable features is the long harvest table where classes, dinners, and tastings are held. In fact, education has been a primary goal of the

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Darryl Lamb (left) accepting award from Bert Hick. Courtesy of Alison Boulier

a hard time competing with the government stores on price and opening hours. Besides, the customer base was changing.

One day years ago, when Lamb was still working at the Liberty Wine Merchants on Granville Island, a customer brought in a piece of stingray and asked what wine he should pair with it. “If people are buying stingray, what else are they going to buy?” Lamb wondered and realized, “People are experimenting with food. The libation culture will catch up.” And it has.

When it came to stocking the shelves at Legacy, Lamb recalls, “We went heavy on craft beer. We went overboard on spirits. And we went heavy, heavy, heavy on BC wines.” He adds, “Our owners are born and bred British Columbians and they will always support BC first.”

Today, Legacy sells Canada’s largest selection of spirits. It offers more than 300 whiskies from around the globe. It is the exclusive retailer for the Scotch Malt Whisky Society, and Canada’s official retailer of Rémy Martin’s Louis XIII cognac. It sells a whopping 71 vermouths. And it offers an exclusive BC craft spirit section.

Nearly a decade after it opened, Legacy Liquor has become a true destination store, the place to go for that Tuesday wine, that hard-to-find spirit, or your weekend craft beer. That’s because in 2010, Lamb knew two things: One was that no one was going to travel to an industrial wasteland for the cheap bulk stuff you get elsewhere; and two, Olympic Village could not become a ghost town but had to be a true neighbourhood. By the time residents began moving into Olympic Village, “We were already bigger than the previous established LRS I had managed.”

Lamb and his team aren’t done yet. “We want to stay ahead of the curve,” he says. We can only imagine what they’ll have in store next.

A better educated customer base will buy a better product.

Tips from Legacy Liquor

Not every private liquor retailer can be Legacy Liquor, but everyone can learn from Legacy’s experience. Here are three tips from Brand Manager Darryl Lamb.

• Differentiate yourself. There’s no good reason for an LRS to stock any listed wine. The government is allowed to lose money. You’re not.

• Offer a better shopping experience. Whether they want the Mouton Rothschild or the Mouton Cadet, treat your customers like gold. People love to complain, so don’t give them the excuse.

• Look at your neighbourhood. Look at the census data. If you’re living in a huge ethnic neighbourhood, source the products they want. Get things that those groups want because the government doesn’t think that way.

18 The Publican

TIPPING AND TEAM DYNAMICS: by Danielle Leroux

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CHOOSING AN APPROACH THAT WORKS FOR YOUR STAFF AND YOUR BUSINESS

Courtesy of Fire & Flower

19 The Publican

How your establishment manages and splits tips can make or break your staff —and your business. It is important to choose an approach that works best for your venue type and size, and supports, not hinders, team dynamics.

Tipping ApproachesThere are two basic approaches to handling tips: controlled tips and direct tips. Each approach comes with its own pros and cons and tax reporting requirements.

Controlled tips are tips that an employer controls and then pays to their employees. An employer adds a mandatory service charge or percentage to a customer’s bill to cover tips, and tips are allocated to employees using a tip-sharing formula determined by the employer.

Direct tips are paid directly by the customer to the employee. The employer has no control over the tip amount or its distribution. A customer leaves money on the table at the end of the meal and the server keeps the whole amount. Tip sharing can occur in this model as well.

Tipping and Team DynamicsVince Marino, co-owner of Junction Public House and PumpJack Pub, uses different tipping approaches at each establishment.

He let staff choose the approach. Where tipping pools are used, the employees gave input on how the tip splitting structure should be formulated.

When choosing the best tipping approach for your establishment, Marino says you must take into account the style of your venue and how it operates. For example, at a bar where the bartenders work individually, a direct tipping model may work best. Conversely, at a pub where there are multiple servers to a till and they work together, pooling tips makes sense and helps build team morale. Other variables to consider include the number of server stations, servers, bartenders, tills, and floors in your venue.

We all need to look at getting kitchen staff a greater share in gratuities.

At the Haney Hotel Group’s pubs, servers accept tips through debit, credit, and cash, and tips are not pooled. General Manager and Owner, Yvan Charette, says they chose this approach for its simplicity and convenience. “However, we are looking at many new options, as our industry faces massive changes,” adds Charette. “With food becoming a larger part of all our pub programs, everyone has to change to ensure the back-of-house team’s value is recognized—and monetized. We all need to look at getting kitchen staff a greater share in gratuities.”

Charette warns that not pooling tips can also create a social divide between the front and back of house. “The server feels that they own all the gratuities, but it takes a team to provide a great guest experience, and this should be reflected to all staff – front and back of house,” says Charette.

Marino highlights the positive impact tip pooling can have on team dynamics and customer service, especially in a nightclub setting. He explains, “You have so many people beyond the servers working and servers recognize everyone on the team and the work they do, from cleaning tables to stocking fridges.”

Marino sees very few negatives with tip pooling at his establishment. Employees chose the approach and decided how they want to operate as a team and deliver the best customer service. Besides, happy customers often mean higher tips.

Charette agrees, “Running a pub is a team effort. Those staff who properly tip out their support staff will be met with happiness and comradery.”

If staff aren’t fully onboard with the approach, things can go sideways. “We purchased a location five years ago and changed the tip out to reflect the kitchen staff’s importance,” recalls Charette. “One long-time server turned the staff towards unionization and created a massive divide between ownership and staff.

20 The Publican

contributions and Employment Insurance (EI) premiums. The employee must also pay their share of CPP and EI.

Direct tips are not subject to payroll tax deductions. An employee can choose to make their own CPP contributions.

Regardless of what approach you use at your establishment, involve your staff in the process, consider your venue’s unique characteristics, instill the importance of teamwork, and you’ll be well on your way to a happy team and customers!

Even though the new tip out structure was rolled out in a proper and informed manner, staff still did not understand that it was fairer to pass on tips to solid support staff who do not make gratuity. This destroyed the location in the short-term and we have had to rebuild because of this.”

Rising WagesWith rising wages and the phasing out of BC’s liquor server wage, some operators are concerned about how their business will be impacted. “Rising wages are going to hurt a lot of businesses and employees,” says Charette. “The removal of the liquor server wage will affect everyone—customers have to pay more because of price increases, meaning fewer sales and visits. Staff are not interested in working for $15 per hour if this means a huge drop in tips.”

Restaurants in BC and across Canada have attempted the no-tipping model, increasing menu costs and doing away with tips to offer staff a reliable paycheque, but few have succeeded.

Smoke ‘N Water in Nanaimo tried the model for two months several years ago, but customers complained and the owner struggled to pay staff higher wages. Earls 67 in Calgary tried the model in 2016 for six months and Ritual in Vancouver lasted three months.

Developing a Tip Policygo2HR suggests that employers formalize a tip policy to minimize challenges and improve staff happiness and engagement. Employers must ensure they take into account the Employment Standards Act (ESA) and Canada Revenue Agency (CRA) guidelines.

Declaring Tip IncomeIt is important that staff understand the CRA guidelines when it comes to tipping. Tips and gratuities are considered income by the CRA and employees are responsible for declaring tip income on their personal taxes.

The tipping approach used will determine if payroll tax deductions are required. Since controlled tips are managed by the employer, they are considered part of the employee’s total compensation. The employer must deduct Canada Pension Plan (CPP)

21 The Publican

the arrival of Yellow Tail, which effectively introduced the Pepsi generation to wine.

Enthusiastically oaked reds and whites from California and Australia were emblematic of the era. A vanilla-loving consumer was quick to embrace them, but eventually times and tastes always change. Post-neophyte drinkers seeking to broaden their palates looked elsewhere. Hence, almost every major New World region from Chile to Australia changed course.

The Australians went right to work. They started by handling oak with a whole lot more care and respect. They put into place a plan that would see greater diversity supported over a wider range of varieties and regions. It’s a strategy that’s now paying off.

Another part of the trend that signaled an end to oak’s seemingly unending rule was the insurgence of ‘ABC’, as in “Anything But Chardonnay”. However, ABC wasn’t so much a rejection of Chardonnay outright, as a reckoning that the days of consumers thinking toast and vanilla were part of Chardonnay’s primary flavour profile were over.

The North American wine consumer in general had also become more sophisticated, thanks in part to the remarkable blossoming of a mainstream food culture. Millions of diners were realizing, as their horizons widened, that those oaky Chards and Cabs weren’t always all that food friendly, so they went looking elsewhere.

Australian winemakers noticed a marked change when, in the early 1990s, Australian exports shifted to the UK. They soon discovered that palates

A Toast to Unoaked Wines Remember a few years back, when unoaked wines were such a big deal? My, how times have changed. Oak-free wines are now plentiful. And those big oaky whites and reds of yesteryear are on the verge of extinction.

What’s driving the change? Any number of reasons may be at play, but predominantly, there is a move to generally fresher and lower ABV wines. Also at play is the influence of a much more informed consumer, likely to actually be interested in the way a wine expresses the variety or represents a region. However, that’s not to say that oak is ever going to completely go away. It is just manifesting itself in different—and often more palatable—ways.

Barrels have been around for a long time—even before the Roman Empire. Although the Latins would happily take credit, it was actually the Gauls (think somewhat less civilized Frenchmen) who first reckoned it was a good idea to put liquid into wood. After all, why not? It was lighter to cart around than pottery and a whole lot less likely to break when it fell off the wagon. Although, barrels weren’t used for aging wine until much later.

In modern times, nobody has done a better job of putting oak on the map than California and Australia. In fact, it’s likely that an entire generation of wine drinkers was weaned on Wyndham’s Bin 222. It’s also worth noting that Chardonnay enraptured the public palate some 20 years or so before the Aussies discovered that folks were also partial to Shiraz. Cue

by Tim Pawsey

Wine Report

accustomed to drinking Chablis and Burgundy sought a more refined style than Aussie Chardonnay was offering. What followed was a move to plant Chardonnay and Pinot Noir in areas such as Yarra, Mornington, Adelaide Hills and elsewhere. They, like others, responded with leaner styles, and often by employing more used oak rather than new oak.

Other varieties coming to the forefront included a tsunami of (rarely oaked) Kiwi Sauvignon Blanc, as well as Riesling, fulfilling the promise of the long awaited ‘Riesling Revolution’. Winemakers also started using concrete eggs instead of barrels and shifted to low intervention winemaking, allowing the fruit and terroir to show through. Previously, this was often overwhelmed by heavy oak programs.

The shift in preference for lesser oaked whites was no more apparent than in BC, where fresh seafood predominates for much of the year and aromatic and dry whites prevail, leaning more towards the no to low oak spectrum. With the exception of specific pairings, like lobster and cream sauces, seafood rarely fares well with oaked wines. And the proof, as they say, is in the pudding. BC chefs and sommeliers have made themselves heard and wineries have gone to work.

With no single, discernible factor, the move away from oak (and also towards lower alcohol wines) adds up to a combination of evolving tastes, more sophisticated palates, and even climate change. Oak still very much has its place—just not as much as it used to.

22 The Publican

Names in the Newsby Marina Lecian

New ABLE BC MembersABLE BC welcomes the following new members and associate members: Blue Ox Pub, LumbyC-Pac of Canada, RichmondCanada Berries Enterprises Ltd.First Avenue Tavern/Alibi’s Show Lounge, Prince George

BC Hospitality Industry Awards 2018Hospitality industry leaders from across the province were honoured at the annual BC Hospitality Industry Awards Gala held in April in Kelowna. The Alliance of Beverage Licensees (ABLE BC) proudly announced Legacy Liquor Store as BC’s 2018 Liquor Retailer of the Year and The Donnelly Group as BC’s 2018 Publican of the Year. New this year, the Alliance awarded the first ABLE BC Lifetime Achievement Award to Dave Crown. Each winner was nominated for their leadership in business, outstanding contribution to their communities, and the inspirational impact they’ve had on the hospitality industry. Congratulations!

2019 New World International Wine CompetitionCongratulations to Grizzli Winery (Kelowna, BC) that received a gold medal and Best of Class award for Gewurztraminer Icewine 2013, silver medals for Reserve Cabernet Franc 2014 and Merlot Icewine 2013, and a bronze medal for Cabernet Franc Icewine 2013. Mt. Boucherie (West Kelowna) received a gold medal for Reserve Chardonnay 2017, silver medals for Summit 2016, Merlot 2016, Pinot

Gris 2017, Gewurztraminer 2017, and Reserve Syrah 2016, and a bronze medal for Pinot Noir 2017. Crescent Hill Winery (Penticton, BC) was awarded Silver Medals for Consenual Chaos 2017, I Am Diva Gewurztraminer, and Glennallyn Private Reserve Gewurztraminer 2017. For a complete list of winners go to www.nwiwc.com/latestresults.html

The Vancouver International Wine Festival The Vancouver International Wine Festival announced the 2019 trade competition winners at Celebrating Excellence, a program honouring professionals who contribute to BC’s exceptional wine and food culture. Congratulations to the following award winners:Spirited Industry Professional Award DJ Kearney2019 Sommelier of the Year Award Matthew Landry 2019 Platinum Wine Program Excellence Award AnnaLena Blue Water Cafe + Raw Bar Chambar CinCin Ristorante + Bar Hawksworth Restaurant L’Abattoir Nightingale

For a complete list of winners go to www.vanwinefest.ca/blog/2019/03/01/celebrating-excellence-viwf-announces-trade-winners/

Next Issue

Accessing Immigrant Workers – Look at new sources of labour and learn how to access those workers.

Food & Cocktail Pairing – What recommendations can you provide patrons to pair food with cocktails?

Promotions for Millennials – How do you attract this lucrative market to your pub or store?

The Role of 3rd Party Warehouses – Understanding the role of warehouses like BDL, ContainerWorld, and other bonded facilities.

Call 1-800-667-0955 to book your ad by June 28

Publicanthe

Fall 2019

23 The Publican

by Adam Bradshaw

The Next Big Whisky RegionHistory has taught us that whisky regions seem to develop in pairs. First came the pioneers, Scotland and Ireland. 300 years later came the first great innovators of whisky, Canada and America. Then, in the early 1900s, we saw Japan enter the whisky scene and then go on to become a global phenomenon.

Japanese whisky was placed firmly on the global stage in 2014, when whisky author Jim Murray rated Suntory’s Yamazaki Single Malt as the best whisky in the world. I must admit, however, that the media frenzy over this was somewhat overblown. Jim Murray’s “Whisky Bible” should certainly be taken with a grain of salt, as it’s simply one man’s (potentially quite biased) opinion. Perhaps a more prestigious award then would be the 2018 World’s Best Single Malt and Blended Malt won by Suntory and Nikka respectively at the panel-judged World Whisky Awards. In truth, Japanese whisky already had a fantastic reputation within the whisky community long before the boom of the 2010s and is now well established as a major player in the industry. What is the next big whisky region? If whisky regions become established in pairs, who is Japan’s partner? My suggestion might shock some readers, but avid whisky fans have probably already guessed—I propose India.

Much like Japan, whisky drinking has been incredibly popular in India for quite some time. However, due to the economic differences between the two nations, the style and quality of the whiskies enjoyed there are quite different. Whereas many Japanese drinkers were able to afford special imported whiskies from places such as Scotland and America, the average Indian whisky drinker had no such privilege.

When whisky began to be made in India in the 1820s, it needed to be made cheaper. This led to corners being cut in production, and international standards being thrown out of the window. You could put “whisky” on the label even if it was an unaged neutral grain spirit with caramel colouring (i.e. coloured vodka). And if that wasn’t bad enough, it could even be made from molasses instead of grain (i.e. rum).

This style of not-really-whisky is still incredibly popular in India. In fact, out of the top ten highest selling whisky brands in 2017, a staggering seven of them were cheap, domestic Indian brands. The

Spirit Spotlight

only internationally recognizable brands that made the list were the “three J’s”: Jim Beam, Jack Daniels, and Johnnie Walker.

Why then, do I think that India might be the next big whisky region? Well, they do actually make “real whisky” too. Despite a rocky start, India now has not one, but two world class single malts.

Bangalore-based Amrut is undoubtedly the better known of the two. This is a distillery that was built from the ground up to rival and imitate Scotch. Using traditional Scottish methods and 100% malted barley from India and Scotland, the biggest difference is that maturation is much faster due to the warmer climate. They launched in Glasgow in 2004, and by 2011, Amrut won The Best World Whisky (not from Scotland, Ireland, America or Canada) in the Whisky Magazine annual awards. It’s only a matter of time until Amrut garners the mainstream recognition that it deserves.

The second Indian single malt producer is called Paul John, although the distillery is simply

called John. This Goa-based company began in 1992 by making questionable domestic Indian whiskies called “Original Choice” and “Grand Duke”. However, after witnessing the success of Amrut, they changed course and released Paul John single malt in 2012.

Paul John has won numerous awards for its whisky, but its most shining endorsement comes from a whisky club called the Scotch Malt Whisky Society (SMWS). The society bottles unique and rare single cask whiskies for their 25,000+ members across the world, including several hundred here in BC. It is a huge honour for a distillery to be bottled by the SMWS, and when it came time to bottle their first Indian whisky, it was Paul John who claimed that title. In fact, I’m drinking it right now as I type, and I can confirm, it’s quite incredible.

Stock up on these fine Indian whiskies and use these stories to help your staff sell them to your customers.

24 The Publican

ALTERNATE LIQUOR LICENSE UPDATE by Anna Grabowski

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25 The Publican

Starting in January 2016, the Province of BC changed liquor laws to allow businesses outside the hospitality, entertainment, or beverage services to apply for a liquor primary (LP) licence. This was inspired by the Liquor Policy Review in 2013 and the ongoing efforts to modernize liquor laws. Now spas, art galleries, cooking schools, barber shops, bookstores, and hair salons can apply for a LP licence, so they can offer an additional service to their patrons. The licences can overlap all or a part of the business, or can be adjacent to the primary business, according to the Liquor Cannabis Regulation Branch (LCRB). This provides exciting new opportunities for many owners and operators as well as a chance for customers to enjoy a beverage in many places they weren’t able to before.

The local governments and Indigenous nations throughout BC set their own bylaws and policies related to liquor licensing. Applicants are under local laws and therefore new licences have been granted based on municipally led endorsements, which have been varied. According to the LCRB, as of March 14, 2019, there are 2,182 liquor primary establishments in BC. Of those liquor primary establishments, only 14 have been licensed under the January 2016 changes. Many hotels have also expanded their liquor licence to include their spa so guests can enjoy drinks there.

Kelowna Embracing Newly Licensed NeighboursHow have these licensing changes impacted pubs? Since the licences are being implemented municipally, the impact depends on where your pub is located. In Kelowna, where the alternate licenses have been endorsed, a barbershop, two hair salons, a tanning lounge, and an indoor golf facility have been licensed. On the other hand, Vancouver has not been able to enjoy the same

opportunities. A few of the companies that The Publican spoke with in Kelowna expressed that there has not been an impact on their businesses. Instead, it was clear that the industry continues to prosper and remains as innovative as ever, in the face of this new competition.

Audrey Surrao has four restaurants in Kelowna under the umbrella RauDZ Creative Concepts Ltd., and with the legislative changes had a licensed barbershop open between RauDZ Regional Table and Micro Bar and Bites. She describes that there has been no impact on their customers, who come to enjoy their cocktail program and rotating beer taps. The barbershop that sits in between has not impacted sales or clientele, to either their own or their neighbour’s businesses. Kelowna is a small city and Surrao says, “We share all kinds of customers with all kinds of other restaurants and bars… It did not change the mix or the amount of customers.” The barbershop adds to the community rather than competing with other businesses.

No Beer and Shave in Cities like VancouverThe Donnelly Group, which started having pubs in Vancouver in 1999 and has had barbershops since 2011, hopes that Vancouver will hop on board and endorse the licence changes. Donnelly’s Bar and Beverage Director, Trevor Kallies, explains, “We would love it to be endorsed because it adds a cultural value to barbershop culture; barber shops are not about a “one and done” service, as there’s an element of camaraderie and conversation that should be happening over a whisky, beer or cocktail.” He expresses that the concept has been

working really well in their Toronto barbershops and hopes that Vancouver moves in that direction soon. Kallies highlights what a great opportunity it would be to have a “hot shave and cold pint” available at their barbershops, which are located in or adjacent to their restaurants and pubs. Not only does he say it would add value to their business, it

would showcase Vancouver beer, which he aptly describes as one of the best beer scenes in the world right now.

Developing an Entertainment DistrictIt is quite clear that the industry is open to sharing clientele, and appreciates the opportunity to do so. There’s a licensed bowling alley near Donnelly’s Granville strip pubs and Kallies believes healthy competition draws more customers for everyone. He explains, “More people going to the entertainment district is better for everyone’s business as people usually go somewhere for cocktails and drinks after enjoying activities such as bowling.”

For now Vancouver businesses will need to stick to applying for special events licences and continue to encourage the city to endorse this change to grant alternate liquor licences. Rather than seeing this as competition, most pubs view this as an opportunity to expand their business offerings and draw more customers into their neighbourhoods. The slow roll out of alternate licences could change if more municipal endorsements are granted, but don’t worry, more customers to share and more opportunities to grow appear to be a change worth embracing.

The industry continues to prosper and remains as innovative as ever.

26 The Publican

BC Hospitality Foundation Update

Fundraising Takes Many Forms for Hospitality Charity It’s been a busy start to the year for the BC Hospitality Foundation (BCHF). By mid-February we had already received 10 requests for help from hospitality workers in financial crisis due to extraordinary medical circumstances. The number of applications we receive is growing steadily. In 2017, by comparison, we had only 7 applications in the first two months of the year. While we’re pleased that our organization is becoming better known, and that we’re able to help more people, we’re also conscious that we need to amplify our fundraising efforts in order to meet the growing demand.

Fortunately, members of the BC hospitality community have been stepping up to help, in a variety of interesting ways. The Okanagan’s Rust Wine Co., for example, will generously donate $5 to the BCHF from each magnum (1.5) bottle of its newly released 2018 Rosé. The Rosé is a top-notch, single-vineyard wine from south Cawston in the Similkameen Valley. It can be purchased through orders@bacchusgroup.ca. Perfect for patio sipping!

We’re also delighted to be the chosen charity for the 2019 Vancouver Craft Beer Week, to be held May 31 – June 9. Now in its 10th year, the festival will also have a collaborative beer created at Four Winds Brewing Company and we will receive partial

proceeds from sales of this exciting project. We’re looking forward to the festival, and we’re grateful for their support! For more information, visit www.vancouvercraftbeerweek.com. Tickets are on sale now.

We’re always interested in creating new partnerships with businesses of all sizes, and there are all kinds of ways to support the BCHF, including donating items to our silent auctions (gift cards always generate hot bids) and sponsoring our golf tournaments. (This year’s tourneys take place July 8th in Vancouver and August 27th in Victoria; please email info@bchospitalityfoundation.com for details).

At the core of the BCHF’s work is the idea that we in the hospitality industry look after our own, and that includes not just business owners but employees. Please contact us to start a payroll deduction program at your business. Employees can contribute as little as $1 a week, and individuals who donate $25 or more over the course of a year receive a tax receipt.

Finally, we love it when people with the means to support us on an ongoing basis become Monthly Donors. It’s super easy to sign up-just go to our website and click on “Donate Now”. Tax receipts are issued at the end of each year.

However you can help, we welcome your contribution, and we know it will have a positive impact on the lives of your colleagues in need!

by Dana Harris

27 The Publican

BC Hospitality Foundation Update

Correction to Pubs of the Future

In the “Pubs of the Future” article in the Spring issue of The Publican, we printed some incorrect information about Glance Technology Inc’s App. The correct information is below. We apologize for the error.

"More than 500 restaurants in BC, Alberta, and Ontario are using Glance’s app for bill payment. Customers typically scan or tap a QR code located on the table or at the bar to order food and drinks directly from their phone. The same system also allows customers to retrieve a real-time digital bill to pay their bill on-demand using their credit card, Apple Pay or Google Pay. Glance recently also introduced a web-app version of their system that does not require download of an app for pubs that deal with a lot of tourists."

by Marina Lecian

Terra Serena Prosecco D.O.C. Spumante Extra Dry is a bright straw-yellow colour with hints of green. This wine has intense scents of white flowers and golden apple. It is fresh with a hint of sweetness. Released in March. 200ml $5.76 whsl +81726, 750ml $15.84 whsl +81732

Castillo de Jumilla Rosado 2018 is a dry, crisp rosé with fruit notes of strawberry and raspberry. It starts fresh on the palate with a round elegant texture and a pleasant finish. Released in May. 750ml $10.99 whsl +132250

Cabriz Colheita Seleccionada Branco 2018 is a blend of Portuguese white grape varietals including Encruzado, Bical, Malvasia-Fina, and Cereal-Branco. It is full of crisp fruit, light acidity and has a clean, smooth texture. Released in May. 750ml $13.02 whsl +170720

Wolftrap Rosé 2017 is a medium to full-bodied blend of Cinsault, Syrah, and Grenache Noir; fleshy and textured with integrated natural acidity. The nose offers notes of red plums, cranberry, pomegranate, and spicy aromas, and follows with flavours of dark berry fruit, nectarine, and white cling peach. Released in April. 750ml $10.90 whsl +155215

Domaine La Croix Belle - Caringole Rosé 2018 is vinified from 50% Syrah and 50% Grenache estate fruit. Pale pink in colour, this rosé has an intense nose of fresh roses and English sweets. The palate is slightly tart with a refreshing, sweet finish. Released in May. 750ml $12.99 whsl +135272

Louis Bernard Les Muret Muscat Beaumes de Venisa is light golden in colour, has aromas of white flowers and tropical fruits, and a long, refreshing finish. Released in April. 750ml $24.99 whsl +118329

Benvolio Pinot Friuli Pinot Grigio DOC 2017 has a fresh palate. The crisp acidity acts as a counterpoint to the peach, almond, and light floral notes in the wine. Released in March. 750ml $16.00 whsl +175279

The Hess Collection 2016 Lion Tamer Red Blend has notes of baking spice, cherry, vanilla, and a palate of integrated tannins and toasted oak. Released in March. 750ml $54.99 whsl +192226

Cîroc Summer Watermelon is a rich tasting spirit made with vodka five times distilled from fine French grapes, finished in a tailor-made copper pot. The vodka is infused with a blend of watermelon and other natural flavours and leaves you with a smooth finish. Released in May. 750ml $37.52 whsl +194314

Shelter Point Hand Foraged Gin This gin showcases juniper and fresh citrus with delicate floral notes. It has a sweet body of citrus, then a combination of herbs and spice on the palate with a warming spicy finish. Released in April. 750ml $27.46 whsl +185339

One Foot Crow Mineral Infused Black Vodka This infused vodka has been likened to a Cognac. It is smooth with a finish that is reminiscent of chocolate or espresso. Released in April. 750ml $43.68 whsl +105001

Captain Morgan Watermelon Smash combines rum with a flavour of juicy watermelon and comes in a watermelon-shaped and scented bottle. Released in May, 750ml $22.98 whsl +193213

Most Wanted Pinot Grigio Sparkling Peach/Citrus is light, fresh, and lightly carbonated. Released in April. 200ml can $3.25 whsl +256710. Also available: Most Wanted Pinot Grigio Sparkling Strawberries/Peach +256707

Guinness Blonde is a refreshing amber beer. Brewed with both Mosaic & Willamette hops and Guinness yeast, the flavour is light and hoppy with a long, biscuit malt finish. Released in April. 4x473ml $7.99 whsl +208903

Wine

Spirits

RTD

Beer

What's Coming?

AdvertisersABLE 30

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BC Hospitality Foundation 25

BCHF Golf 26

Black Fly Beverage Co 4

BWI Business World 7

David Herman & Son 13

Dolden Wallace Folick 29

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MJB Lawyers 21

Mt Begbie Brewing Co 13

One Foot Crow 8

RBC 25

Red Truck Beer Co. 11

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Salt Spring Shine Craft Distillery 20

Sysco Vanc/Vic/Kelowna 9

Western Financial Group

Insurance Solutions 19

28 The Publican

Every year a new smartphone with better battery life hits the Canadian market. Just recently, Huawei released the P30 that will last a whopping two days on a single charge (based on six or seven hours of screen time a day). Compare this to the first Apple iPhone that launched just back in 2007. If you were lucky, you’d get five hours a day of talking and browsing. In just over a decade, we’ve seen enormous advances in mobile battery technology.

Today, while you still might need a desktop or laptop computer, you can do almost everything you did on those heavy electronics from the palm of your hand. Plus, smartphones have also crushed the need for owning a point-and-shoot camera or camcorder, thanks to improved technology that can shoot impressive high-resolution photos and movie-like video. Within this sector you see relentless adaptation in droves. While consumers might tire of hearing about new launches every single year, the smartphone makers are on a path of constant iteration.

We don’t necessarily need all these fancy bells and whistles, but there is a lot we can learn from businesses that are pushing the boundaries of innovation. In fact, while we may want to call it innovation, even that term is somewhat misleading since it implies that these companies are developing a new method, idea, or product. In the above battery example, what we’re really seeing is relentless adaptation. Relentless in that it is constant and persistent, and adaptation in that it’s in a continuous state of change and improvement to meet today’s demands.

In the hospitality industry, business owners and operators are experiencing this same sense of change. In the technology industry, it’s called hyper adoption. Beyond smartphones, consider smart speakers. Google Home launched in Canada late in 2017. Less than two years later, eMarketer predicts that there will be almost six million of these devices in use. We no longer wait to try new

technology, but instead it permeates our lives and we adopt it almost overnight. Moreover, hardware (i.e. electronics) is forced to pursue longer development cycles, but software services (i.e. apps) are quick to change consumer behaviour and disrupt established industries.

This new world feels overwhelming, but there are steps that leaders can take to keep up and benefit during this chaos. To get started, here are three simple steps to practice relentless adaptation.

3 STEPS TO RELENTLESS ADAPTATIONby Amber Mac

29 The Publican

1. Embrace a Learn-It-All Culture It is no longer possible for a business, or its leaders, to stand still. The tools to develop disrupting technology are constantly getting cheaper and more accessible. That means learning must take centre stage in today’s organizations. Whether it’s listening to relevant podcasts, reading books, or taking courses, you can’t plan for the future if you don’t know what it holds. Microsoft’s CEO Satya Nadella says it best when he explains that his team had to shift from experts to students, embracing the reality that it was no longer possible to know it all, so they have to (continuously) learn it all.

2. Experiment with New TechnologyAs artificial intelligence, and more specifically machine learning, continues to power new solutions in everything from sales to marketing, and beyond, organizations should choose to investigate if this new technology can help them to solve problems in a more efficient way. A simple example of this is Lumen5, a video editor that helps to turn an everyday blog post into an interactive video. The tool automatically matches each scene with relevant videos and photos. Not only can this save time on the marketing front, it’s a cost-effective way to produce content for social media.

3. Learn How to Pursue MoonshotsThe term “moonshots” was coined by physicist Safi Bahcall, the bestselling author of the new book Loonshots. Bahcall shares dozens of stories, dating back decades, about how it’s the craziest ideas that win wars, cure diseases, and transform industries. Just take a moment to write down the biggest threat to your business today and you will see that it would have seemed like a “crazy idea” during its initial development, but its founder or leader persisted (despite the inevitable criticism). Uber is one example. Before this company launched, it would have seemed crazy to think that passengers would willingly jump into a vehicle with a stranger. Today, they have 75 million passengers that are served by 3 million drivers.

If you follow these three easy steps, you will be well on your way to relentless adaptation. If you keep doing business as usual, you will enter 2020 with metaphorical blinders that block out what’s actually happening and too often lead to falling behind.

Amber Mac was a keynote speaker at the BC Hospitality Summit held in April.

30 The Publican

by Danielle Leroux

ABLE BC Membership Update

Spring has been a busy time at the ABLE BC office —from hosting our fourth annual sold-out BC Hospitality Summit Conference with the BC Hotel Association in Kelowna, to our April membership renewals, ID Checking Guide orders, and supporting our members with new resources, improved benefit programs, and regular industry updates.

The winners of the 2018 BC Hospitality Industry Awards were announced at the closing BC Hospitality Summit gala in April. Congratulations to Liquor Retailer of the Year Legacy Liquor Store and Publican of the Year The Donnelly Group. We’d also like to congratulate the winner of ABLE BC’s first Lifetime Achievement Award, Dave Crown.

Read the feature on Legacy Liquor Store in this issue of the Publican. The Donnelly Group will be featured in the fall issue.

Save the Date for BC Liquor Conference 2019Join us at our next industry-wide event! The BC Liquor Conference returns for its fourth year this fall: Monday, October 21 at the Hyatt Regency in downtown Vancouver. Early bird online registration opens soon at BCLiquorConference.com. Stay tuned for program details!

Refreshed Members-Only Website ABLE BC’s Members-Only website was recently refreshed with new documents and resources. Login to your profile at ABLEBC.ca/login and check it out today! You can also find our Member Directory. If you need help logging in, please contact: Danielle Leroux (Director of Membership and Communications) at 604-688-5560 or danielle@ablebc.ca.

Order Due Diligence and Signage for your BusinessABLE BC offers a range of due diligence materials and signage for your business in our online store. Popular items include:

• 2 Pieces of ID Required laminated signs

• I Check for 2 Pieces of ID buttons

• Cannabis Smoking Prohibited or Permitted laminated signs

• Check Photo ID stoplight laminated signs

Place your order online: www.ablebc.ca/online-store/. Don’t see a sign that you need? Contact our office and we’ll get it made for you!

Join ABLE BC TodayABLE BC is the only organization out there fighting for your interests. Your membership ensures we can continue to do so. If you are not yet a member, we hope you will consider joining ABLE BC today.

S ign-up onl ine at ABLEBC.ca or contac t Danielle Leroux (Director of Membership and Communications) at 604-688-5560 or danielle@ablebc.ca.

Our annual membership fee for liquor primaries and private liquor stores is $688.50. Our annual membership fee for associate members, including industry suppliers, service providers, manufacturers, and agents is $430.

Use our membership benefits and you can more than cover the cost of your annual fee! Learn more at ABLEBC.ca.

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spring 2019

pM40

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UNITING THE UNIQUELY TALENTED

Business Magazine for Canadian Retailers

Quality Assurance

Create an Engaging Shopping Experience Selecting the

Right Software How LPs Ensure your Customers Get the Best Product page 26

Capture Customers’ Attention & Build Loyalty page 10 Set your Store up for Growth page 32

Developing & Sustaininga Culture that Engages

Employeespage 6

cannabisretailer

spring 2018

pM40

0260

59store designGood design ensures

a good shopping

experience

page 10

Business Magazine for Canadian Retailers

BrandingSelecting a Location Setting up Your Supply ChainCreate a brand that instills

trust and portrays your vision page 18

Pick the right neighbourhood, municipality and landlordpage 6

Partnering with producers and suppliers page 22

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