avoiding the 10 critical errors beverage operators make

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OFFICIAL PUBLICATION OF THE MINNESOTA MUNICIPAL BEVERAGE ASSOCIATION www.municipalbev.com Municipal Liquor Store Box 32966 Minneapolis, MN 55432 CHANGE SERVICE REQUESTED PRST STD U.S. POSTAGE PAID Permit No. 1770 Minneapolis, MN Volume 68, Number 6, 2009/2010 A A voiding the 10 voiding the 10 Critical Er Critical Er r r ors ors Beverage Operators Make Beverage Operators Make

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Page 1: Avoiding the 10 Critical Errors Beverage Operators Make

OFFICIAL PUBLICATION OF THEMINNESOTA MUNICIPAL BEVERAGE ASSOCIATION

www.municipalbev.com

Municipal Liquor StoreBox 32966Minneapolis, MN 55432

CHANGESERVICE REQUESTED

PRST STDU.S. POSTAGE

PAIDPermit No. 1770Minneapolis, MN

Volume 68, Number 6, 2009/2010

AAvoiding the 10 voiding the 10 Critical ErCritical Errrorsors

Beverage Operators MakeBeverage Operators Make

Page 2: Avoiding the 10 Critical Errors Beverage Operators Make

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Page 3: Avoiding the 10 Critical Errors Beverage Operators Make

DIRECTORSTOM AGNES(President)Brooklyn Center Liquor5625A Xerxes Ave. NorthBrooklyn Center, MN 55430763-381-2349

BRIAN HACHEY(Sec./Treas.)Stacy Wine & Spirits 30962 Fenway Avenue Suite 700Stacy, MN 55079. 651-462-2727

NANCY DRUMSTA Delano Wines & SpiritsP.O. Box 108Delano, MN 55328763-972-0578

LARA SMETANA(Vice President)Voyageur Bottle Shop205 - 6th StreetPine City, MN 55063320-629-2020

JOYCE ZACHMANNCentral Park Liquors8101 Hwy. 65 N.E.Spring Lake Park, MN 55432763-780-8247

VIRGENE SHELLENBARGER Liquor Hutch245 Washington Ave. EastHutchinson, MN 55350320-587-2762

MUNICIPALLIQUORSTOREVolume 68, Number 6, 2009/2010

Official publication of the MinnesotaMunicipal Beverage Association. Published six times annually: September/October,November/December, January/February,March/April, May/June, July/August. For advertising and editorial inquiry contact Paul Kaspszak, Editor, Box 32966, Fridley,MN 55432. Phone 763-572-0222 or 866-938-3925. Advertising rates availableupon request. Change of address: List both oldand new address.

STEVE GRAUSAMEdina Liquor6755 York Ave. SouthEdina, MN 55435952-903-5732

GARY BUYSSERogers Liquor22350 South Diamond Lake RoadRogers, MN 55374763-428-0163

BRIDGITTE KONRAD(Ex-Officio)City of North BravchP.O. Box 910North Branch, MN 55056651-674-8113

MICHELLE OLSONSebeka LiquorP.O. Box 305Sebeka, MN 56477218-837-9745

BOB LESLIEPelican Rapids LiquorP.O. Box 571Pelican Rapids, MN 56572218-863-6670

TONI BUCHITEFifty Lakes Bar & Bottle ShopP.O. Box 828Fifty Lakes, MN 56448218-763-2035

On The CoverAs the adage goes, “When a man with money meets a man with experience,the man with the experience ends up with the money and the man with themoney ends up with the experience.”

Fact is making mistakes is an inevitable consequence of gaining experience.Some things can only be learned at the school of hard knocks.

That having been said, in every business there is a special class of mistakesthat should be avoided like the plague. Leaving the place unlocked at nightis an example.

The list of capital crimes in the on-premise (and off-premise) businessencompasses every aspect of the operation—from serving boring drinks andmangling your relationship with the staff to being an inhospitable host andrunning an inexcusably loose ship.

In an effort to shorten and shallow out the learning curve, 10 critical errorsbeverage operators make can be found starting on page 7.

Page 4: Avoiding the 10 Critical Errors Beverage Operators Make

MMBA President’s Message

Numbers! Friend or Foe?

What kind of numbers do you use to runyour organization? In the municipal liquorbusiness we should all pay attention to “Critical Numbers” such assales dollars, gross profit and net profit.The state auditors look those criticalnumbers and at things like operating andnon-operating revenues and expenditures,fund transfers and population.

At our upcoming MMBA Boot Camp wewill go a little deeper and look at 3 yearrunning sales info, how freight is calcu-lated in to your cost of goods, also yourinventory costs and what an inventoryturn is. We will dive into staffing costsand mark up vs. gross profit percentage.

If your head is not spinning yet I wouldlike to offer a couple ideas for you to usein your organization.

1. Sale dollars tracking

This seems to be number one on the“critical number” list. Some organiza-tions wait for city hall to give them thisnumber on a monthly basis. I challengeyou to start your own tracking before itever goes to city hall. Have you everwondered why some months we end upwith a pretty big increase with nothingspecial going on and other months nomatter how hard we try we still are flator down?

A good tracking pattern to follow isweekly sales. If you are off premise youdo your sales Monday thru Saturday -Saturday typically being the busiest dayof the week and Friday not far behind. Infact if you look a little closer you mightfind that Friday and Saturday combinedrepresent over 50% of the sales for theweek. With that fact in hand when youlook at the month of April this year youwill see that we have 5 Fridays and 4Saturdays, when last year we only had 4

MUNICIPAL LIQUOR STORE 4

of each. That should make for a goodApril and a bad May since last May wehad 5 of each.

So now whether you account for thosemonths that will be a little off or youstart tracking those numbers weekly isup to you.

2. Using graphs

Graphs are a visual representation ofnumber. Many of us get lost when welook at a typical spreadsheet of numbers.Most of us these days have access toExcel which can easily convert numbers ina spreadsheet into any sort of graph.Even if you don’t have access to thesethings start a chart on your office wallwith sales dollars on one side and Janthru Dec on the bottom and see how theseasons, weather and market conditionschange things. 15 years ago NorthboundLiquor in Cambridge did this. As theyhad continued success they had to continue to add paper to the top to keepup with the sales. Also ask your databaseprovider if they have reports that includegraphs.

3. Net profit

While sales numbers may be the mostpopular of the “critical numbers,” net

profit is the most important. Develop asystem to look at things that affect thatnet profit number such as staffing costs.What % of your sales are spent forstaffing? Also look at the easy things likewhat you pay for insurance. This hasdrastically dropped in many combinationaccounts by switching to Wells FargoInsurance Services.

Of course I could go on all day, but afew more I want you to notice are customer counts, average ticket price,what % of your sales are split upbetween beer, liquor and wine and howmany SKU’s do you carry?

All these can be important when lookingat how different categories operate in different markets at different times.When I first started here at BrooklynCenter 4 years ago we did not even handle a Malbec but now wines fromSouth America for us account for over10% of our import sales while otherareas continue to drop. Good trackingnumbers allow me to see these trends.

Okay, I know I have gone on longenough about numbers and how you canuse them. If you have any questionsdon’t hesitate to call me or any one ofour directors at any time and we will beglad to help.

Tom AgnesPresident

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Page 5: Avoiding the 10 Critical Errors Beverage Operators Make

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Page 6: Avoiding the 10 Critical Errors Beverage Operators Make

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Page 7: Avoiding the 10 Critical Errors Beverage Operators Make

MUNICIPAL LIQUOR STORE 7

By Robert Plotkin

As the adage goes, “When a man withmoney meets a man with experience,the man with the experience ends upwith the money and the man with themoney ends up with the experience.”

Fact is, making mistakes is aninevitable consequence of gainingexperience. Some things can only belearned at the school of hard knocks.For us fallible types, success can bedefined as keeping mistakes to a minimum and the learning curve shortand shallow.

That having been said, in every businessthere is a special class of mistakes thatshould be avoided like the plague.Leaving the place unlocked at night isan example. Bouncing payroll checksand stiffing vendors are critical errorsin any line of work.

The list of capital crimes in the on-premise & off-premise businessencompasses every aspect of the opera-tion—from serving boring drinks andmangling your relationship with thestaff to being an inhospitable host andrunning an inexcusably loose ship. Inan effort to shorten and shallow out thelearning curve, here are the 10 criticalerrors beverage operators make.

1. LOSS OF CONTROL — Runninga bar requires making a significantinvestment in liquid assets, workingcapital that can disappear at an alarming rate. Failing to implement an effective inventory control systemplaces at risk the capital you’ve investedin that inventory. To be profitable, youneed to know exactly what inventoryyou have, what you paid for it, at whatrate you use it and exactly where it isat any point in time. Tracking inventorythroughout your operation doesn’trequire purchasing specialized softwareeither. What is required is a system ofover-lapping controls referred to as“cradle to grave” accounting. It’s an

inventory system that tracks productsfrom point of purchase to the momentthey’re delivered and received, throughthe requisition process—which alsoinvolves recording comps, spills and transfers—until the end of theaccounting period in which they’redepleted.

2. MONITORING PC — One of themany truisms in this business is, “Ifyou can’t measure it, you can’t manageit.” Nowhere is that truer than behindthe bar. Determining your bar’s ongoingcost percentages—pour costs—revealsyour level of profitability. As your costof goods sold increases, gross profitsdiminish.

While tracking your pour costs is afundamental control, managing throughthe use of pour cost alone is problematic.The inherent weakness with pour costanalysis is that it doesn’t take into consideration that products sell at different mark-ups. Premium andsuper-premium products sell at a highercost percentage than do well brands,yet generate significantly more revenueand gross profit. For example, wereyour staff to begin selling more drinksmade with premium brands than well,the bar’s pour cost would increase.

While bartender-related issues likeover-pouring and theft are often at theroot of the problem, a rising pour costmay also indicate that management isdoing a better job of promoting higherprofit premium spirits and drinks.

3. SHODDY PRODUCT — A restau-rant that doesn’t routinely change itsmenu always has plenty of open tables.The same is true about bars. Add somepizzazz to your beverage line-up. Shakeup your specialty drinks. Change spicesthings up and helps keep your clienteleinterested. The sales axiom “Don’t sellthe steak, sell the sizzle!” is directlyapplicable. If it doesn’t sizzle, whoneeds it?

Can every drink you serve be built better? Believe it or not, the answer isprobably yes. For instance, considerone of the most common of mixeddrinks, the gin and tonic. Although notan involved recipe, some bars makemuch better gin and tonics than others.How’s that possible?

The possibilities include preparing thedrink with a premium dry gin insteadof a value brand from the well and ahigh quality bottled tonic water. Pourthe ingredients over ice cubes madefrom filtered water and garnish with anample, freshly cut wedge of lime.Serve the drink in a good looking,heat-tempered highball glass with aclassy swizzle stick and you’ve gotyourself a well-built gin and tonic.

If you can build a better gin and tonic,imagine the boundless potential of suchclassics as the Margarita, Daiquiri,Martini, Piña Colada and Bloody Mary,to mention but a few.

4. FISCAL RESPONSIBILITY —Left unchecked, employee theft canreduce cash flow to a trickle. Howextensive is the problem? Bevinco, aninternational beverage auditing service,estimates that losses attributable tointernal theft cost its clients on average24-26% of gross sales. The verythought is enough to make seasonedmanagers wince and bar owners shudder.

Preventing it from happening is farfrom easy however. Bartenders typicallywork for long stretches without directsupervision and are afforded autonomyin handling guest transactions at thebar. Their position requires them toportion inventory, prepare drinks andcollect sales proceeds and they do it allbefore recording a single detail into theoperation’s point-of-sale. The result isa job laced with endless opportunitiesto rip off the house and its clientele.

(continuued on next page)

10 Critical Beverage Operator Errors

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MUNICIPAL LIQUOR STORE 8

Familiarity with how bartenders stealand knowing what to look for constitutemanagement’s first line of defense.Sometimes theft is overt and undisguised,like pouring heavy shots to receive bigger tips, or stuffing cash salesdirectly into a tip jar. However, ployslike these are so easily detected they’reactually risky, so bartenders usuallyrely on less obvious schemes.

One reason why behind the barschemes are so effective is that most bartenders conduct themselvesprofessionally. Faced with the sameopportunities to pad their income, theychoose instead to look out for the bestinterests of the house and perform theirjobs sans a hidden agenda.Paradoxically, it’s the ethical behaviorof the majority that thoroughly obscuresthe actions of the few, making it harderto diagnose the problem and root outits cause.

Implementing cost control proceduresat the bar serves two purposes.Although primarily intended toeliminate operational areas of weakness,anti-theft measures also make it easierfor honest bartenders to remain honestand harder for the others to operateundetected by establishing standards ofconduct and clearly defining expectations.

5. PRODUCTIVITY — Every industry tracks employee productivityexcept ours. Calculating sales per houris easily done and is an enormouslyeffective means of assessing employeeeffectiveness. Bar productivity is calculated by dividing the bartender’sgross sales by the number of hours heor she worked. After several weeks it’llbecome evident who on your staff arethe sales leaders and who consistentlyfall short of the mark.

If a bartender’s sales per hour consis-tently fall below the staff average, fivethings are possible. He may work tooslowly and literally can’t keep up withdemand. He could make lousy drinks,so people don’t stick around for a second or third lousy drink. His personality and attitude could be sooff-putting that customers leave early,

or his sales ability could be so unrefinedthat he consistently undersells. The lastexplanation is that he is likely stealingfrom you. There isn’t a method of theftthat won’t negatively affect productivity.

How do you know which it is? Takesome time and observe the person.Regardless of the scam, theft takes atoll on productivity. Between trackingpour cost and bar productivity, thereisn’t an employee scam or fraud thatyou can’t catch.

6. ALCOHOL DISORIENTATION —Increasingly more people are socializingwithout alcohol. More than a passingfad, it is now part of the dynamics ofour industry. There are numerousexplanations why—including stricterDWI laws, health concerns, caloriccontent and personal preference. Fortunately for those of us in the on-premise industry, we’re in the entertainment business not the alcoholbusiness. In addition to increased consumer demand, another reason tomarket alcohol-free products is thatthey command profit margins equal to or greater than their alcohol counter-parts. Another incentive is their saleincurs no third-party liability and precipitates no service-related problems.

Long gone are the old stigmas andstereotypes surrounding alcohol-freebeverages and the people who orderthem. From a management standpoint,alcohol-free marketing makes greatsense.

7. WEAK LINKS — Your business isonly as strong and vital as your weakestemployees and what they don’t knowcan hurt you. Despite the importanceof ensuring frontline employees arewell trained, the irony is that fewthings are easier to put off than stafftraining. If a mind is a terrible thing to waste, imagine the terrible cost ofsquandering the intellectual capacity of your entire staff.

Simply put, training is a dollars andcents issue. If bartenders and serversare insufficiently trained, every aspectof the operation suffers. Consider the

ramifications of servers who aren’tfamiliar with the menu, bartenders whodon’t know about the products on theback bar, or who aren’t comfortablecutting someone off. This just begins toscratch the surface of the things yourstaff needs to know.

The most advantageous course is toinstitute a continuous training program.Typically bars and restaurants concen-trate on training employees only beforethey initially open for business. Butwhy leave it at that? With turnover andthe natural effects of time, you cananticipate that the benefits of the initialtraining will decrease dramatically.Bartenders often get complacent andbegin taking liberties with portioningor deviate from stated procedures.Inevitably these breeches exact a toll.

Your business is only as strong andvital as your weakest employee.

8. NO SUDS CONTROL — Draftbeer is a cornerstone of the on-premiseindustry. To a large degree, its enduringpopularity can be attributed to beingpure, fresh and unadulterated, barreledin its natural state exactly as the brewmaster intended. Draft tap handles actlike homing beacons. They immediatelycommand the attention of beer drinkersentering a bar or restaurant and confirmthat they’re in an establishment thattakes beer seriously.

According to recent figures compiledby the Beverage Information Group,beer accounted for nearly half of allbeverage alcohol sold on-premise in2008—35 percent of those sales comingstraight from the spigot. Growing con-sumer demand for draft beer has boostedits sales 17.6 percent over the last 5years.

In a perfect world, every ounce of draftbeer you purchased would be dispensedand sold. However, industry figuresreveal that operators lose roughly 23percent of the draft beer they purchasedue to over-pouring, giveaways andtheft, which equates to nearly 1 out ofevery 4 kegs. Factor in the lost potentialrevenue that draft beer would have

Page 9: Avoiding the 10 Critical Errors Beverage Operators Make

MUNICIPAL LIQUOR STORE 9

generated and you’re looking at a significant hit. It’s difficult to remainsuccessful under those circumstances.

9. NOT MONITORING LABORCOSTS — Payroll is the largest reoccurring expense after cost of goodssold, which makes ensuring those dollars are being invested wisely ofparamount importance.

Start the process by considering howeffectively you use the bar staff. Onechronic problem is not schedulingenough people to handle expectedlybusy shifts. Aside from subjectingemployees to undue stress and exacerbating employee turnover, running with a skeleton crew when it’sbusy will undoubtedly cost you sales,cost the bartenders gratuities, and costthe clientele the level of hospitable service they have come to expect.Understaffing is expensive, far exceedingany savings in payroll.

Another concern is “riding the clock,”which refers to employees purposelytaking longer to break down the barand perform their closing duties, therebyincreasing their payroll.

Labor cost percentage measures therelationship between payroll expenseand gross sales. It’s a means of determining how effectively your payroll dollars are being invested. Todetermine a shift’s labor cost percentage,the payroll for the employees workingthe shift must first be totaled. It isadvisable to compare the number ofhours your employees actuallyclocked-in with the number of hoursthey were scheduled. The process will improve your ability to forecastscheduling requirements and affordyou an opportunity to investigate anydiscrepancies.

10. ILL-DEVISED PLAYBOOK —Buy a new car and they give you anowner’s manual. Get drafted into theNBA and you’re handed a playbook.Get hired as a bartender or food serverthough and all you’ll likely get are afew training shifts and a printout ofhouse policies. In today’s litigioussociety that’s far from adequate.

The fact is that being an employer isfraught with legal liability. Make amistake and you could find yourself onthe wrong end of a civil lawsuit or infront of the National Labor Relations

Board, where nine out of ten employeesleave victorious. Suits for wrongfuldischarge, sexual harassment and racialdiscrimination are among the mostprevalent employment-related litigationwith judgments averaging in the six-figure range.

The first line of legal defense is a comprehensive, well-structuredemployee handbook, one that clearlydefines the employees’ job descriptions,areas of responsibilities, and all of theoperation’s policies and procedures.Without it, legally holding employeesaccountable for their actions is practi-cally impossible.

Drafting an employee handbook is similar to creating an employment contract, which is how the courts typically view these documents. Andlike a contract, employees are typicallyasked to sign a statement that theyhave received the handbook, read itthoroughly and agree to abide by all of its provisions.

While an employee handbook need notbe filled with legalese, it does need todeal with each item in a thorough andcomprehensive manner.

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Remember

Even if you have allof the “bests” – the

best advertising,merchandise, prices,packaging, displays,

fixtures, location,and everything else– it is all for naught

if an employeeignores or insults a

customer

Page 10: Avoiding the 10 Critical Errors Beverage Operators Make

MUNICIPAL LIQUOR STORE 10

MMBA executive director PaulKaspszak received the following notefrom Lakeville Liquor manager BrendaVisnovec in December, 2009.

We had someone looking for ClamatoCeasar, you may recall the emails aswe called her Auntie Pam fromWoodbury (even though she was norelation of mine). Well it has been along standing tradition in their familyto serve Bloody Mary’s on Christmasday, and they will only use ClamatoCeasar. So I searched our distributorshigh and low to find out that it is nolonger being distributed in the US. Soas it had been recently discontinued Iasked you to send out an email blast.

• First response was from Redwood Falls saying they had some.

• Second response was from Bob Leslie in Pelican Rapids stating that he didn’t have any, but he was coming to the metro area forthe Vikings game and would gladly pick some up along the way should we find any.

• Third response – There were many, but most out of the area with the exception of Gary at Rogers stating that he had one case left.

• So I called Auntie Pam in Woodbury and told her that I would run and pick it up for her, but she told me not to worry andthat Rogers was close enough forher to run and pick it up.

• Customer extremely satisfied and a municipal (while it wasn’t ours) picked up a sale.

Well I heard from a relative of AuntiePam’s that she and her husband wereattending a hockey tournament inRoseau. They happened to stop in thelocal municipal for a drink and starteddiscussing the bloody mary story. Atthat time the manager mentioned thathe did have some left and recalled anemail regarding someone looking forthe Clamato bloody mary mix down inthe metro area. I guess they had agreat conversation regarding how all ofthe municipals worked together tomake their Christmas a little brighter.

Thought you might appreciate thisemail knowing what impact your communications have had on the perception of municipal liquor stores.Especially from someone who lives inWoodbury.

Take care, Happy New Years!

Municipal liquor Operations Working Together to Create Outstanding Customer Service

50 Ways to Be a Better BartenderBy bartender.com

1. Give everyone a fair shot. 2. If you haven’t anything nice

to say, don’t say it. 3. Use the BEST premium

products and you’ll be the BEST.

4. Smile! 5. Be the solution to the

problem, not part of the problem. 6. Don’t drink and drive; don’t let

others. 7. Respect salesmen, you’re one. 8. Don’t take sides. You’ll make

two enemies. 9. Be NEAT. 10. Wear a clean shirt everyday. 11. Don’t cheat or steal. 12. Serve.13. Keep your hands and

fingernails clean. 14. Use Mr., Sir, or Ms., when

talking to strangers. 15. Don’t be a part of a rumor. 16. Keep your space clean. 17. Don’t waste.

18. Be on time. 19. Help others when they’re busy. 20. Don’t use the easy way. Use the

right way. 21. Don’t give up. Follow your dream. 22. If you open it, close it. 23. If you turn it on, turn it off. 24. If you unlock it, lock it up. 25. If you value it, take care of it. 26. If you can’t fix it, call in

someone who can. 27. If you borrow it, return it.28. If you break it, admit it. 29. If you make a mess, clean it up. 30. If you move it, move it back. 31. If it belongs to someone else and

you want to use it, get permission.

32. If you don’t know how to operate it, leave it alone.

33. If it’s none of your business, don’t ask questions.

34. If it isn’t broken, don’t fix it. 35. If it will brighten someone’s

day–SAY IT!

36. Be patient with your coworkers. 37. Never put a glass in the ice bin. 38. Never become better than your

customers.39. Never touch the rim of the glass. 40. Create a house cocktail. 41. You’re a bartender, no one says,

“hey mixologist”. 42. “Hey bar chef”. 43. “Hey cocktailian”. 44. “Hey Master Mixologist”. 45. Foul language is not and never

will be a sign of a good bartender.

46. Don’t cheat with your drinks. 47. Use a scoop for ice, not hands. 48. Don’t listen to what doesn’t

concern you. 49. The mission of a bartender is to

cheer up, not to intoxicate. 50. Be proud you’re a

BARTENDER.

Page 11: Avoiding the 10 Critical Errors Beverage Operators Make
Page 12: Avoiding the 10 Critical Errors Beverage Operators Make

1904-2007Quality Wine & Spirits Company

A Century of Service

Statewide: 1-800-552-8711 Twin Cities: 952-854-8600

Page 13: Avoiding the 10 Critical Errors Beverage Operators Make

MUNICIPAL LIQUOR STORE 13

Musical Performance Rights & Wrongs

Music is everywhere. We hear music in parks, in restaurants and bars, andover the phone while we sit on hold.And wherever it is, someone is usually supposed to be paying for it.Sometimes that obligation falls on acity, even if that city didn't present themusic or the city had no say in theselections played.

Copyright basics

Among other rights under federal law,a song’s copyright· owner has theexclusive right to authorize a publicperformance of the song. The lawdefines a public performance of musicas any performance “at a place open to the public or at any place where asubstantial number of persons outside anormal circle of a family and its socialacquaintances is gathered.” A publicperformance also happens, according tothe law, when someone communicatesor transmits that performance to aplace or to the public.

Because music is everywhere, this isthe most important right bestowed by the U.S. Copyright Act in that ittypically provides the single largestsource of income for the copyrightowner. Most often the collection of themoney, or royalties, is by the AmericanSociety of Composers, Authors andPublishers (AS CAP) or by BroadcastMusic Incorporated (BMI), two “performing rights societies” thatlicense public performances and transmit royalties to the copyright owners. These companies grant “blanket” licenses to authorize virtuallyall non-dramatic public performancesof live or recorded music that an entitymay provide to the public throughout ayear. With such a license, a city avoidsthe risk of statutory fines of at least$750 per song infringement.

Common uses of music requiring alicense

It’s important for cities to know whena use of music constitutes a public performance. Sometimes cities havestaff or an independent contractor

(such as a disk jockey) play musicalrecordings at festivals or communitycelebrations in a city park. Or themusic might be played in the municipalliquor store. In any case, playingrecorded music covered by copyrightconstitutes a public performance forwhich the city could be held liableunless it has a license or permissionfrom either the copyright owner or theappropriate performing rights society.

The same is true for music provided by live performers. Case after casedemonstrates that proprietors of concert facilities can be held liable for infringing actions of individualsperforming live music. This has beenheld true whether the musicians areemployees or independent contractors,and whether or not the proprietor hasknowledge of the compositions to beplayed or any control over the selectionof compositions.

Another common way cities providemusic is by amplifying musicbroadcasted over the radio. This is an economical way to provide musicduring a festival, in a municipal liquorstore, or as part of a city’s recreationprograms, such as in a skating rink. Forthe most part, publicly providing radiobroadcasts of music is also a publicperformance requiring the city toobtain a license.

A less obvious public performance of music subject to licensing is musicplayed for callers placed on hold. Andmore recently, the performing rightssocieties have asserted podcasts-web-based audio broadcasts-that containmusic are also public performances.

Exemptions from licensing

It’s also possible that a city’s uses ofmusic are so limited that no licensing isnecessary. There is an exemption fromlicensing requirements for public performances that are not broadcasted if

(1) there is no purpose of direct or indirect commercial advantage;

(2) there is no payment or compensa

tion for any performer, promoter, or organizer; and

(3) either there is no admission charge or the admission charge proceeds are donated to a tax-exempt organization.

Since everyone involved must be anuncompensated volunteer, it’s rare thatcities meet this exemption.

There is also an exemption for any performances that occur in the courseof an annual agricultural or horticulturalfair or exhibition conducted by a governmental body. This exemption isgenerally only used by state or countyfairs.

A more likely exemption for a cityrelates to the use of radio or televisionbroadcast in a municipal liquor store.Under U.S. Code, Title 17, section110(5), a drinking, food service, orother establishment within certainsquare footages, or using certain configurations of speakers, may transmit or retransmit a radio or television broadcast from a FederalCommunications Commission-authorized station without obtaining a license. Cities should consult thestatute to determine if this exemptionapplies.

An inexpensive, hassle-free solution

Unless exemptions cover its public performances of music, the city shouldobtain a license. The best option islikely a blanket license for its facilities.And thanks in part to the efforts of theInternational Municipal LawyersAssociation (IMLA), cities can quicklyand cheaply obtain blanket licensesthat will authorize virtually all of thepublic performances a city may present.

For blanket license information forboth ASCAP and BMI, visit the IMLAwebsite at www.imla.org; click on“Programs” and then “MusicLicensing.” With a little effort, citiescan keep music to their ears from beinga pain in the neck.

By Edward Cadman, League of Minnesota Cities

Page 14: Avoiding the 10 Critical Errors Beverage Operators Make

MUNICIPAL LIQUOR STORE 14

Mark Your Calendar2010 MMBA Boot Camp,

February 22 - 24, 2010 Breezy Point

2010 MMBA / MLBA Legislative DayMarch 1, 2010

2010 MMBA ConferenceMay 15-18, 2010 Arrowwood Resort

By GREGORY KATZ, Associated Press

For a priest in northern England, thecommandment that dictates “thou shaltnot steal” isn’t exactly written in stone.

The Rev. Tim Jones caused an uproarby telling his congregation that it issometimes acceptable for desperatepeople to shoplift — as long as they doit at large national chain stores, ratherthan small, family businesses.

Jones’ Robin Hood-like sermon drewrebukes from fellow clergy, shop own-ers and police.

From his pulpit at the Church of St.Lawrence in York, about 220 miles(355 kilometers) north of London,Jones said in his sermon Sunday thatshoplifting can be justified if a personin real need is not greedy and does nottake more than he or she really needsto get by.

The remarks drew a summons fromArchdeacon Richard Seed, who said onhis Web site that the church rejects theview that shoplifting can be acceptable.

“The Church of England does notadvise anyone to shoplift, or break thelaw in any way,” he said.

“Father Tim Jones is raising importantissues about the difficulties people facewhen benefits are not forthcoming, butshoplifting is not the way to overcomethese difficulties. There are many organizations and charities workingwith people in need, and the Citizens’Advice Bureau is a good first place tocall,” Seed’s statement said.

Eleanor Course, a spokeswoman for Seed, said the archdeacon wants to meet with Jones to discuss the“appropriateness” of his sermon.

“The point we are most concernedabout is that shoplifting is simply not ablameless, victimless crime,” she said.

“We want to make clear that it simplydoesn’t help people. And the last thinga desperate person wants is to becaught for shoplifting, so we feel thisadvice is very unwise.”

Jones told The Associated Press that he stands by his comments. He said he regretted only that the media isfocusing on his view on shopliftingrather than the underlying problem hewanted to address.

“The point I'm making is that when weshut down every socially acceptableavenue for people in need, then the only avenue left is the sociallyunacceptable one,” he said, adding thatpeople are often released from prisonwithout any means of support, leadingthem back into crime.

“What I’m against is the way societyhas become ever more comfortablewith the people at the very bottom, andblinded to their needs,” he said.

He said shoplifting could help peoplewho are legally entitled to governmentwelfare benefits but have the benefitsdelayed for bureaucratic reasons.

This approach was quickly rejected by members of the British Retail

Consortium, a prominent trade organization trying to reduce theft.

“It’s the job of our welfare system,which retailers support with the bil-lions they pay each year in tax, to helpvulnerable people,” said spokesmanRichard Dodd. “There are no excusesfor stealing.”

The North Yorkshire Police also condemned Jones’ approach as counterproductive because peoplealready in marginal conditions wouldfind themselves in trouble with the lawif they resorted to shoplifting.

“First and foremost, shoplifting is a criminal offense, and to justify this course of action under any circumstances is highly irresponsible,”a police statement read. “Turning orreturning to crime will only make matters worse, that is a guarantee.”People in need should turn to charitableorganizations and government agenciesfor help, rather than take matters intotheir own hands, the police said.

“To do this would make the downwardspiral even more rapid, both on anindividual basis and on society as awhole,” the statement said.

Priest Says Shoplifting is OK

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MUNICIPAL LIQUOR STORE 16

“Give me a minute” says theAssociate...let me see if I understandthis.

The other day I walked into a retailstore in a busy mall just as it was opening. The doors were completelyopen. The lone staff member was busily moving fixtures toward the frontof the store - those fixtures that have tobe moved back at day’s end so that thedoor grills can be closed.

I was holding a cup of coffee and waspulling my briefcase and carrying apurse. I saw an item that caught myeye as I was walking past the store.Isn’t that great? The store had a visualdisplay that attracted me - a customer.

I approached the display and realizedthat I would probably not be able toreach the item comfortably and wouldlikely make a mess if I tried. I turnedand asked the young woman workingthere if the item was merchandisedanywhere else in the store so I couldhave a closer look at it. I should mention that the employee had not yetacknowledged my presence in the storebut there is no question she knew I wasthere.

Her response, delivered without lookingat me and in a tone that said ‘you’redisturbing me’, was “give me aminute”. Excuse me? Give you aminute? I don’t believe that was thecorrect response. Perhaps somethinglike “oh yes, they are right over there”or “I’ll be happy to get that one downfor you” would have been appropriate.

I am not an impatient person but I certainly don’t think that I should haveto shop on the Associate’s schedule.

The store was open and the item wasavailable for sale. She should havereacted differently. So, no, I did notgive her a minute. I left the store. And just in case you are wondering...I would definitely have made the purchase if things had worked out differently.

The customer in your store is muchmore important than any task. This isCustomer Service 101. If you are notservicing another customer then youhave no right to expect someone to“give you a minute” for anything. Thecustomer who is there in your store

asking for your help may purchasesomething.

Isn’t this what you want? Don’t youwant to sell your merchandise to customers? It is unbelievable to me that some retailers do not yetunderstand these simple concepts.

Customers are time starved. Don’tmake them wait. If you must makethem wait, make sure you have a goodreason and make sure you explain whythey are waiting.

Tasks Can Wait, Customers Won’t

Total Register Systems4215 Louisiana Avenue New Hope, MN 55428

(763) 537-1906 • www.trs-pos.com

Point-of Sale & Inventory Solutions for the On-Sale / Off-Sale

Municipal Beverage Industry

Systems Include• ID Verfification

• Credit Card Interfacing

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Total Register Systems has 20 years of Experience in Retail Partnerships

By DMS Retail Consultants

Page 17: Avoiding the 10 Critical Errors Beverage Operators Make

How to MotivateYour Staff in 3Quick Steps

By putting the quick tips below intoaction at your store(s), the motivationyou need to achieve your performancelevels will be easier to get:

Clarity of Objectives

Vague goals kill motivation. Without aclear and concise target to reach for,your staff can’t possibly trigger theirinternal drive simply because it hasnothing to head toward. Only when theobjective is vivid in their mind can youtap into a powerful inner drive.

If you haven’t already created a set ofclear goals for them, it's time to delivera little more direction. Meet with themand let them know clearly what theobjectives and expectations are.Continue narrowing down the goalsuntil they clearly see the point of detailyou need.

Educate Them

The better skilled they are at a particulartask or activity, the more motivatedthey'll be to get involved with it. Thisprinciple lends itself perfectly to theworld of motivation in the workplace -the more they know about their positionand what it takes to excel, the moredriven they'll be to produce results.

Give Them New Challenges

People around the world have anintense need for growth and variety;too much of the same old thing andsoon there will be no sign of motivation.To avoid this experience, put them outthere for new work challenges to keepthings fresh and new on the job.

Know Your Glassware

MUNICIPAL LIQUOR STORE 17

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MUNICIPAL LIQUOR STORE 18

Platinum Member Cold Spring BrewingContact: Mick DetvilerAddress: 962 W. Nebraska Avenue

St. Paul, MN 55117Phone: (651) 489-2376Fax: (651) 489-3127E-mail: [email protected]: www.gluek.com

Crown ImportsContact: Noah MasonAddress: 14709 Hillshire Lane

Burnsville,, MN 55306Phone: (952) 898-5576Fax: (952) 898-4083Cell: (612) 850-4988 E-mail: [email protected]: www.crownimportsllc.com

Don Sebastiani and SonsContact: Bryant PascoeAddress: 316 Willow Pointe Drive

St. Charles, MO 63304Phone: (636) 300-3524E-mail: [email protected]: www.planeteria.com/sandsons/

E&J Gallo WineryContact: Chris WeeseAddress: 730 North 4th Street #105

Minneapolis, MN 55401Cell: (763) 656-8763Web: www.ejgallo.com

Domaine Napa Wine Co./A Division of Bronco Wine Co.Contact: Bob NicolsPhone: (952) 469-1633Fax: (952) 469-2656Cell: (612) 221-8936Web: http://www.classicwinesofcalifornia.

com/domainenapawinecompany.html

Heck EstatesContact: Kathy Bilcik JonesAddress: 10135 Parrish Ave NE

Ostego, Mn 55330Phone: (763) 227-4214Fax: (763) 355-9585E-mail: [email protected]: heckestates.com

J.J. Taylor DistributingCompany of Minnesota, Inc.Contact: Mike BamontiAddress: 701 Industrial Blvd. NE

Minneapolis, MN 55413Phone: 651-482-1133Fax: 651-482-9810E-mail: [email protected]: www.jjtaylorco.com

Life Media, Inc.Contact: Mike JuszczakAddress: 2928 Dean Parkway, Suite 51

Minneapolis, MN 55416Phone: 612-920-5433Fax: 952-881-7797E-mail: [email protected]: www.lifemediainc.com

Pernod Ricard USAContact: Chris MortonAddress: 4202 Harriet Ave

Minneapolis,, MN 55409Phone: 612-822-2408Mobile: 952-303-1685Fax: 612-822-2415E-mail: [email protected]: www.pernod-ricard-usa.com

Pabst Brewing CompanyContact: Mike BrattensborgAddress: 7117 Emerald Lane

Eden Prairie, MN 55346Phone: (651) 334-8284Fax: (952) 937-2609E-mail: [email protected]: www.pabst.comAdditional Contacts:

Bob Ourada, Area Manager, Metro, Southern (612) 251-1228Jeff Van Schoick, Area Manager –Metro, Northern (612) 281-1859

Retail Data SystemsContact: Paul StelmachersAddress: 6566 Edenvale Blvd.

Eden Prairie, MN 55346Phone: (952) 934-4002Fax: (952) 934-4830E-mail: [email protected]: www.rdspos.com

Retail Information TechnologyEnterprisesContact: Rick FeulingAddress: 1001 2nd Street South, Suite 100

Sartell MN 56377Phone: (320) 230-2282Cell: (320) 761-6423Fax: (320) 230-1796E-mail: [email protected]: www.rite.us

Bellboy CorporationContact: Dave GewolbAddress: 2200 Florida Avenue South

Minneapolis, MN 55426Phone: (612) 544-8178

Dahlheimer BeverageContact: Nick DahlheimerAddress: 3360 Chelsea Raod West

PO Box 336Monticello, MN 55362

Phone: (763) 295-3347Fax: (763) 295-4947E-mail: [email protected]

Dakota WorldwideContact: Len SageAddress: 8200 So. Humbolt Ave.,Suite 302

Minneapolis, MN 55431Phone: (952) 835-4505Fax: (952) 835-4461E-mail: [email protected]: www.dakotaww.com

Johnson Brothers Liquor CompanyContact: Michael JohnsonAddress: 1999 Shepard Rd

St. Paul, MN 55116Phone: (651) 649-5800 / (800) 723-2424Fax: (651) 649-5894E-mail: [email protected]: www.johnsonbrothers.com

Quality Wine & SpiritsContact: Tom MorgalAddress: 7900 Chicago Avenue South

Bloomington, MN 55420Phone: (952) 854-8600Fax: (952) 851-0501E-mail: [email protected]: qwsco.com

Wirtz Beverage GroupContact: Kevin RyanAddress: 489 N. Prior Avenue

St. Paul, MN 55104Phone: (651) 646-7821Fax: (651) 646-1497Web: www.wirtzbeveragegroup.com/

minnesota.asp

C & L DistributingContact: Tim KoltesAddress: 1020 Industrial Drive So.

Sauk Rapids, MN 56379Phone: (320) 251-7375Fax: (320) 259-7981E-mail: [email protected]

Carlos Creek WineryContact: Tamara BredesonAddress: 6693 County Road 34 NW

Alexaandria,, MN 56308Phone: (320) 846-5443Fax: (320) 846-7191E-mail: tami@carloscreek winery.comWeb: www.carloscreekwinery.com

CNHContact: Wayne HilbertAddress: 21 West Superior Street #500

Duluth, MN 55802Phone: (952) 431-4433E-mail: [email protected]: www.cnharch.com

Grand Pere Wines Inc.Contact: Brian DaunheimerAddress: 2222 Elm Street NE

Minneapolis, MN 55414Phone: (612) 929-3163 x 40Fax: (612) 605-7132E-mail: [email protected]: www.grandperewines.com

Fieldstore VineyardsContact: Charlie QuastAddress: P.O. Box 133

Redwood Falls, MN 56283Phone: 507-249-9463E-mail: [email protected] Web: www.fieldstonevineyards.com

Hagen Beverage DistributingContact: Mark HagenAddress: 500 Industrial Lane

7300 West 147th Street #504Apple Valley, MN 55124

Phone: (507) 376-5903Fax: (507) 376-5951E-mail: [email protected]

Locher Brothers, Inc.Contact: Tim “Jonesy” HukriedeAddress: 18098 – 365th Avenue

P.O. Box 35Green Isle, MN 55338

Phone: (507) 326-5471Fax: (507) 326-5487E-mail: [email protected]

Madison Bottling Co.Contact: Dave BergersonAddress: RR2 Hwy 40 East

Madison, Minn. 56256Phone: (320) 598-7573Fax: (320) 598-3738E-mail: [email protected]: www.madisonbottling.com

The McComb GroupContact: Bill GortonAddress: 222 South Ninth Street, Suite 380

Minneapolis, MN 55402Phone: (612) 339-7000Fax: (612) 338-5572E-mail: [email protected]

Stan Morgan & AssociatesContact: Skip TroyakAddress: 35 Water Street

Excelsior, MN 55331Phone: (952) 474-5451Cell (952) 474-8253E-mail: [email protected]: www.stanmorganassoc.com

Sunny Hill DistributingContact: Mike BaronAddress: East Highway 169

P.O. Box 333Hibbing, MN 55746

Phone: (218) 263-6886Fax: (218) 263-6111

Thorpe Distributing CompanyContact: Jack StevensonAddress: P.O. Box 120

Rogers, MN 55374Phone: 763-463-2000Fax: 763-463-2001E-mail: [email protected]: www.thorpedistributing.com

Tushie Montgomery ArchitectsContact: Gary TushieAddress: 7645 Lyndale Ave. So., Suite 100

Minneapolis, MN 55423Phone: (612) 861-9636Cell (612) 861-9632E-mail: [email protected]: www.tmiarchitects.com

MMBA Commercial Members Are Available to You! Contact Them!

Arctic Glacier IceContact: Bob NikolaiAddress: 1654 Marthaler Lane

W. St. Paul, MN 55118Phone: (651) 455-0410Fax: (651) 455-7799E-mail: [email protected]: www.arcticglacierinc.com

Beam Global Spirits & WineContact: Leslie DefriesAddress: 3601 W. 76th Street

Suite 20Edina, MN 55435

Phone: (952) 830-1131Fax: (952) 830-0123Cell: (612) 850-7342E-mail: [email protected]: www.beamglobal.com

MillerCoors Brewing CompanyContact: Jon ChanceAddress: 5805 Zenith Avenue South

Edina, MN 55410Phone: (952) 920-6862Fax: (952) 285-6862E-mail: [email protected]: www.millercoors.com

Minnesota Independant IceManufacturers AssociationContact: Steve KellyAddress: 2900 5th Ave. So.

Minneapolis, Mn 55408Phone: (612) 824-9600Fax: (612) 824-1974E-mail: [email protected]: www.aceice.com

Ste. Michelle Wine EstatesContact: Randy DobratzAddress: 16540 Hyland Court

Lakeville, MN 55044Phone: (952) 891-1560Fax: (952) 891-1560E-mail: randy.dobratz

@ste–michelle.comVoicemail:1-800-423-8396 Ext. 3813Web: www.ste–michelle.com

Trinchero Family EstatesContact: Terri Uitermarkt

Minnesota District ManagerAddress: 1454 Heywood Ave.

Apple Valley, MN 55124Phone: (952) 432-2661Fax: (952) 432-2661Cell: (612) 281-4271E-mail: [email protected]: www.tfewines.com

W.J. Deutsch & Sons Wine

MerchantsContact: Joe MayneAddress: 18998 Baldwin St. NW

Elk River, MN 55330Phone: 763-241-7675Fax: 763-241-8842E-mail: [email protected]: wjdeutsch.com

American Beverage MarketersContact: Warren WestcoatAddress: 6900 College Blvd. Suite 440

Overland Park, KS 66211Phone: (913) 451-8311Fax: (913) 451-8655Cell: (816) 665-5521E-mail: [email protected]: www.abmcoctails,com

Anheuser-Busch, Inc.Contact: David AnglumAddress: 12107 Wellesley Ave.

St. Paul, MN 55105Phone: (612) 597-1967Fax: (612) 699-6989E-mail: [email protected]: www.budweiser.com

Bacardi USAContact: Jeff LangeAddress: 22546 128th Avenue North

Rogers, MN 55374Phone: (763) 428-1048Fax: (763) 428-1048E-mail: [email protected]: www.bacardi.com

Brown-FormanContact: Jerry RonkeAddress: 5717 Portland

White Bear Lake, MN 55110Phone: (651) 491-3411E-mail: [email protected]: www.www.brown-forman.com

Silver Member

Supporting Member

Bronze Member

Silver Plus

Arctic Ice, Inc.Contact: Chad FriedrichsAddress: 1090 South Victory Drive

Mankato, MN 56001Phone: (507) 345-8078 • (507) 327-4389Fax: (507) 388-4387E-mail: [email protected]

Pig’s Eye Brewing Company, LLCContact: Jeff CrawfordAddress: 10107 Bridgewater Parkway

Woodbury, MN 55129-8587Phone: (651) 734-1661Fax: (651) 734-0171E-mail: [email protected]: www.pigseyebeer.com

Reco Store EquipmentContact: Mike MartinoAddress: 1617 - 5th Street South

Hopkins, Mn 55343Phone: (952) 935-4330 Fax: (952) 935-6875E-mail: [email protected]: recostoreequipment.com

Total Register SystemsContact: Brian AndersonAddress: 4215 Louisiana Avenue

New Hope, MN 55428Phone: (763) 537-1906Fax: (763) 537-1504E-mail: [email protected]: www.trs-pos.com

U.S. Bank Government BankingContact: Jennifer VucinovichAddress: 101 East Fifth Street

St. Paul, MN 55101Phone: (651) 466-8750Fax: (651) 466-8910E-mail: [email protected]: www.usbank.com

VinocopiaContact: Marion DaunerAddress: 6636 Cedar Avenue South #300

Minneapolis, MN 55423Phone: (612) 455-4000Fax: (612) 455-4001Cell: (612) 532-0406E-mail: [email protected]: www.vinocopia.com

Wells Fargo Insurance ServicesContact: Tony BaldwinAddress: 4300 MarketPointe Drive, Suite 600

Bloomington MN 55435Phone: (952)- 830-7353Fax: (952) 830-3048E-mail: [email protected]: www.acordia.com

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