Minnesota Municipal Beverage Association Newsletter
(December 27, 2015 - January 2, 2016)
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As I See It...

Yo Adrian, I did it!!

That's it, were done, no more 2015!
Whether good or bad we've survived another intense year.

We started this fight last January with optimism and hoped we could make it 12 rounds.

It didn't start very well and we had some tough rounds along the way.
Sunday sales was going to be a sure thing, according to the media and their one sided views.

Total Wine's goal was to "Save Minnesota" until several MMBA members exposed their scam.

They fired back like any bullying company who didn't know what to do.

They lawyered up, cried "Foul" and sent letters stating "Stop it, you can't do that! Keep it up and I'm telling".

Another blow came when some of our suppliers brushed us off to take care of their new best buddy, Total.

Throw in the normal day to day activities, price increases, out of stocks, never ending list of credits and Holidays you wonder how you could last all 12 months.

However like Rocky each time we got knocked down, we got back up - some of us a little uglier.

But, we never gave up.

Why? I'll tell you why!

MMBA has some great leaders and managers like, you!

I have had the great opportunity to work all over the United States and I can honestly say MMBA has some of the smartest leaders I have ever worked with.

Yes, I mean Paul too!!

With 2016 starting we head into another 12 month prize fight.

If we continue to work together (All of Us) we again will not just survive -- we will thrive in 2016!!

I can speak for all of us board members; it has been an honor and a privilege to serve and work with you in 2015! We look forward to serving you in 2016. 

I leave you with this Quote:

Your success and happiness lies in you.

Resolve to keep happy, and your joy and you form an invincible host against difficulties.  
                           - Helen Keller
Happy New Year!!

Bill Ludwig
Paynesville
Prevent Norovirus!!

By MMBA Food Safety Consultant Lars Johnson

Remember that Norovirus is the #1 leading cause of foodborne illness in Minnesota and in Wisconsin.

As we repeat over and over in class, be good hand washers all the time, especially after being in the bathroom.

Do not work or let someone work if they have vomiting or diarrhea.

Be thorough in your clean up after a customer might have symptoms in your restaurant or facility.
 
You have very little control over whether your customers come in with fecal fingers.

So you have to be diligent with all your procedures, including having a well kept illness log.

One of the most important uses of the illness log is to show that you did the right thing by excluding sick employees.

If the media ever bothers to ask the business about an outbreak, you want to be able to tell them you did everything you possibly could have on your end.
 
Here is a short 2 minute video to remind us how to protect customers, employees, and business.

Click Here to See Video
Howard Lake Municipal Liquor Store Poised to Pour Profits Back Into the Community
Money 3

Ivan Raconteur 
Herold Journal Editor

Despite some challenges in the past, Howard Lake city staff are optimistic about the future of the city's municipal liquor store, and predict the operation will generate profits for the city in 2016.

Reasons for the staff's optimism include a new plan for maximizing profits, and the elimination of debt associated with a 2005 remodeling project, for which the final payment was made in November.

City Administrator Nick Haggenmiller recently provided some background on the store's operation.

"The City issued Liquor Store Revenue Notes in 2005 to remodel the first floor of the building. At that time, the liquor store was contributing upwards of $100,000 annually back to the general fund," he noted.

"Subsequent years saw expansion in competition, the enactment of the statewide smoking ban, and substantial employee theft.

The once robust transfer [to the general fund] dwindled, and was further eroded with annual debt service payments of $50,000.

These payments were funded entirely from the operation of the liquor store," Haggenmiller noted.

"While it's clear the city is not likely to issue additional debt against the operation, the council is carefully choosing next steps to ensure a vibrant and profitable future for the liquor operation, as well as ensuring the historic building is properly maintained," he added.

In 2014, the city council voted to discontinue the on-sale portion of the business, which was less profitable.

"Ultimately, the council did its due diligence in considering all facets of the operation, and made a really tough business decision that will soon bear fruit for the greater community," Haggenmiller noted.

"This message gets lost in the emotion of the good people losing a good social institution in the community.

"What the city is working on now will ensure a successful, profitable future for the operation, help offset taxes, and hopefully, in the next year or so, once again provide a place for social gathering."

Profitability plan

Haggenmiller explained the liquor store has operated under a basic profitability plan since 2013. In July of 2015, this was reviewed by the Minnesota Municipal Beverage Association, and the Howard Lake Liquor Commission and was greatly enhanced, according to Haggenmiller.

Changes, including proper pricing, reviewing product selection and merchandising, adding tobacco products, and creating a customer service culture were implemented.

Haggenmiller has been working closely with liquor store manager Myra Laway to make sure objectives are being met.

"In the past, Myra has done a great job running the bar and off-sale together, otherwise known as a combination facility," Haggenmiller said.

"Moving forward, she has been directed to focus on running a lean and customer service oriented liquor store.

We're out of excuses, and 2016 will be the year we see profits return and we're hopeful overall sales and profits will grow again."

If sales and profits don't increase, the city council will once again consider tough decisions regarding the liquor store operation, Haggenmiller noted.

Based on gross revenues, the liquor store is actually ahead of the last several years.

On Dec. 1, 2015 the city council conducted the statutorily-required "continuation hearing" for the municipal liquor store.

Minnesota Statute requires cities with a liquor store that has shown a financial loss in any two of the previous three years to hold a public hearing to determine if the city should continue operation of its municipal liquor operation.

During the public hearing, Laway and Haggenmiller gave a brief presentation reviewing the store's historic operation, detailed information on 2015, and proposed 2016 initiatives.

There were no comments from the public during the hearing.

After reviewing more than 24 years of financial information, and understanding the business has contributed well over $700,000 to the general fund to offset property taxes and the levy, the council decided to continue the operation.

The muni model

"The 'muni-model' has been under a lot of scrutiny statewide, especially in the Twin Cities metro area as new and larger retailers, such as Costco and Total Wine, have saturated markets previously dominated by municipal liquor stores," Haggenmiller noted.

"Howard Lake, 35 miles away from the Twin Cities, has different market factors impacting the business.

"In Howard Lake, we're taking this seriously and have adjusted our operation accordingly.

A study commissioned by the council and completed by David Drown and Associates suggested the on-sale to be financially detrimental to continue operating due to costs associated with labor, insurance, and poor internal controls."

Howard Lake plans to keep its municipal liquor store viable by offering competitive prices, tremendous customer service, and easy access for customers.

"A little-known fact," Haggenmiller commented, "is that we actually have the ability to buy and sell many products under the same terms as our big-box competitors.

With that in mind, we encourage folks who have a preferred brand or product to come to the store and check us out if they haven't done so recently.

If there's something you want to see us carry, tell us. That's the value of shopping local." 

Future plans

Over the course of 2016, the city council will discuss and consider options with the former on-sale space, Haggenmiller noted.

Currently vacant and used for light storage and occasional events, the space is likely to be opened up for use by the general public for private events, similar to the community center.

"The council may also market the space to a private operator, as the city has received inquiries from folks interested in the space for things such as a coffee shop, tap room, or restaurant," Haggenmiller commented.

"This discussion and final decisions will depend greatly on possible grant funding for the preservation and enhancement of the entire building, with the goal of converting the second floor into a community and event center."

Haggenmiller shared a quote from Mayor Pete Zimmerman, who stated, "After several hard years and some really tough decisions, we are ready for profitable, efficient, and friendly operation in 2016."
History of Rapids Spirits (Park Rapids) Building Construction
Construction

From: Park Rapids Enterprise

Rapids Spirits Liquor Store, originally a 6,000 square foot building, was constructed in 1995 at a cost of $333,695.

The city expanded the liquor store in 2000 and added 1,680 square feet for storage and additional retail space at a cost of $158,000. 

The store was expanded again in 2007, adding 362 square feet for an office area, employee break room and larger entrance area at a cost of $185,000.

An additional parking lot was constructed behind the store in 2008 to provide 30 parking spaces. 

The city currently has the liquor store on the Capital Improvement Plan to purchase a new building at a price of $1,380,000. 
I Recently Spent $6,500....

I recently spent $6,500 on a young registered Black Angus bull.

I put him out with the herd but he just ate grass and wouldn't even look at a cow.

I was beginning to think I had paid more for that bull than he was worth.

Anyhow, I had the Vet come and have a look at him.

He said the bull was very healthy, but possibly just a little young, so he gave me some pills to feed him once per day.

The bull started to service the cows within two days, all my cows!

He even broke through the fence and bred with all of my neighbor's cows!

He's like a machine!

I don't know what was in the pills the Vet gave him... But they kind of taste like peppermint.
Future Dates to Remember


Legislative Session Start

March 8, 2016
2016 MMBA Annual Conference

April 16 - 19, 2016
Arrowwood Resort

Legislative Session
End

May 23, 2106
Ask A Director

Gary Buysse
Rogers
763-428-0163

Cathy Pletta
Kasson
507-634-7618
  
Bill Ludwig
Paynesville
320-250-3325
  
Candice Woods
Hutchinson 
320-587-2762
  
John Jacobi
Isanti
763-444-5063

Michael Friesen
Hawley
218-483-4747

Steve Grausam
Edina
952-903-5732

Tom Agnes
Brooklyn Center
763-549-3710
Brenda Visnovec
Lakeville 
952-985-4901
 
Bridgitte Konrad
North Branch
651-674-8113

 Karissa Kurth
Buffalo Lake
320-833-2321
 
Paul Kaspszak
MMBA
763-572-0222
1-866-938-3925
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Minnesota SMART

The SMART campaign: Supporting Minnesota's Alcohol Regulations and Traditions, is a renewed public education and grassroots advocacy effort in support of Minnesota's current alcohol regulations and three-tier system.

 

We believe Minnesota's current alcohol regulations are smart, balanced, and supported by many citizens and our local small businesses.    

    

They work well for Minnesota!

 

The SMART campaign functions to help you engage in advocacy efforts with state legislators and others in support of Minnesota's current alcohol regulations, and to oppose issues-such as Sunday alcohol sales.

We want to make it easy and effective for you to engage.

 

Take action and send an email to your state legislators today through the new SMART campaign website.   

 

We have sample letters and legislator contact information put together that is ready to go.   

 

  Click Here for the Website
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Beverage Alcohol Training

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 Contact Bob Leslie at:
 
320-766-3871
 


Contact Gary Buysse at:

763-428-0164

'Hey, That Cashier You're Yelling at is My Son!'
Just last week, for example, my daughter (the one who works at the bakery/cafe), told us about a question she was asked by a customer. "Um, yes," began the hungry patroness, "can you tell me if your chicken, ham and Swiss sandwich is vegetarian?"
 
My daughter paused long enough to make certain she had heard the woman correctly before answering as politely as possible:

"No, that sandwich is not vegetarian. The chicken, ham and Swiss sandwich contains meat." Seriously, the things people say can be hilarious, bewildering and surprising.

Although the Holidays have passed, the below article remains relevant for the entire year.

Be sure to appreciate all front line employees, even those who don't work with you, for all they do.

What makes a good life?
Lessons from the longest study on happiness
What keeps us happy and healthy as we go through life?

If you think it's fame and money, you're not alone - but, according to psychiatrist Robert Waldinger, you're mistaken.

As the director of a 75-year-old study on adult development, Waldinger has unprecedented access to data on true happiness and satisfaction

 In this talk, he shares three important lessons learned from the study as well as some practical, old-as-the-hills wisdom on how to build a fulfilling, long life.

 Click Here 

Einstein was asked which is more important, creativity or knowledge?

His answer: "Creativity, because knowledge is finite."


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