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The Cat’s Meow

Date: April 30, 2012

To: Thomas Marker

From: Emily Miner

Subject: Alcohol Policy

         My name is Emily Miner, and I am writing to you at the request of the general manager,
Joe Schmoe. I am currently an instructor and choreographer at The Cat’s Meow. I’ve worked at
the studio for the past four years. In fact, I’ve been a faithful employee since the business began
in 2008. In 2010, I received “Employee of the Year” award for my creative marketing strategies.
In addition to these credentials, I recently obtained an associate’s degree in business
management. With the acquisition of this degreeand an extensive knowledge of all aspects of the
business, I have been asked to find a solution to our recent issue concerning our methods of
serving alcohol. Watching The Cat’s Meow grow for the past four years has been an honor. I
hope that we may continue to develop and expand, providing the Pittsburgh area with quality
entertainment and dance instruction.
         As instructor and choreographer, I spend roughly 50 hours per week in the studio. I
attend every weekend performance in order to critique the dancers and continually improve our
show. Many times over the past few months, I have noticed the patrons buying fewer drinks than
normal at the bar. I consulted the finance department and discovered that our bar profit has
decreased 15% since December. Despite this fact, I also found that our customers have been
much more rowdy. The dancers have frequently notified both me and the club bouncer about
sexual harassment attempts from intoxicated patrons. Our bouncer, Max Smith has had to
remove more customers from the premises than usual.
         It seems that the issue is improper alcohol handling. Our bartenders may be serving
customers beverages when they are clearly too drunk. They may also be serving drinks with too
high of an alcohol content. This is illegal and puts The Cat’s Meow at risk for trouble with local
authorities and the FDA. The effect of over-serving puts both the dancers and the customers in
danger. In addition, this practice costs us valuable profit from the bar, which is our highest
source of income.
         Last Friday night, I decided to take a break from watching the girls dance. Instead, I
surveyed the area, attempting to find evidence of the suspected problem. At the front of the
venue is a stage, lifted about three feet off the ground. In front of the stage are tables of various
sizes, three-seaters and six-seaters. All are classily decorated in black linen and candles. In the
dark at the back of the venue is the bar. The bar is a black, marble topped, semicircle. The
bartender serves drinks to about 20 surrounding customers. That evening, I spoke with three
people that evening who are all play a different role at The Cat’s Meow. Here are the results of
the interviews:
The Cat’s Meow

I interviewed a 22 year-old dancer, Molly Cunningham. She began as a student here three
years ago and was offered a position as a professional dancer in early 2011.
Me: Lately, have you noticed a difference in the atmosphere at The Cat’s Meow?
Molly: I have noticed that the other customers have gotten rowdy earlier than they usually do. I
used to feel very comfortable here. The scene was more artistic. Now, the typical crowd has
changed from those who want to watch the show to those who are more interested in consuming
alcohol and trying to cop feels.

I interviewed a regular customer, Tyler Wilson. He is a 34-year old business man that has
frequented The Cat’s Meow for two years.
Me: Mr. Wilson, you regularly buy drinks at the bar. How do you feel about the quality of those
beverages?
Wilson: When I first started coming here, I purchased more drinks that I do now. Now, when I
order a drink, it is incredibly strong. Often, it is too strong for me to finish. The bartenders are
also very charismatic. They almost pressure customers into buying drinks. I used to watch the
show from the bar and have a great time. Now, I prefer to take my drink to my table.

I interviewed our Friday night bartender, Gary Lease. He has been working for The Cat’s
Meow since November of 2011.
Me: Gary, do you ever find that the customers are getting too rowdy? How do you know when to
cut a customer off?
Gary: No, I mean, the more fun that they are having, the better! I can’t imagine going out on a
Friday night to a bar, unless you want to get drunk. I seldom cut customers off because I feel that
they are just having a good time. I make the drinks very strong. That’s great for business, right?

        As you can see, there has been an increase in hazardous activity at The Cat’s Meow.
Also, our bartender seems to be uninformed of Alcoholic Beverage Control laws. Willfully
serving customers alcoholic drinks whilst they are visibly intoxicated or serving drinks that are
too strong at a bar can result in expensive and criminal consequences. I researched this problem
thoroughly. Through research, I have learned about Pennsylvania Dram Shop Laws and the role
of Alcohol Beverage Control. I also investigated the court cases, Parker v. Slick Willie’s
Incorporated and Rivero v. Timblin. These demonstrate the dangers of non-compliance with
standard alcohol handling procedures.
        Dram Shop Laws are essentially laws that can legally charge bars for the actions of
drunken patrons. If a bar or restaurant is serving alcohol to a customer who is too intoxicated or
if a venue is breaking any Alcohol Beverage Control codes in serving a customer, the business
can be held liable for any harm that patron causes to himself/herself or others. These laws are in
effect in Pennsylvania. These laws are typically used against businesses in any case when an
intoxicated patron dies or is physically injured or the patron kills or physically injures someone
else. Dram Shop Laws are usually used against businesses in incidents of drunk driving and
physical altercations. (Cullen)
        I visited the local Bison Inn on Wednesday, April 4, 2012. There I spoke with a
bartender, Kathy Fairfield. Kathy is forty years old and has worked at the bar for almost ten
The Cat’s Meow

years. She explained to me that there are certain drinks that, by law, the bar cannot sell. Some of
these drinks are: Irish Car Bombs, Hillbilly Ass Kickers, Widow-makers, and any drink that is
considered “on fire”. When I asked her why bars aren’t allowed to serve these drinks, she
replied, “There’s too much alcohol in them. The customers don’t know what they are consuming
when they order these drinks. It [the drink] hits them too fast and too hard. It can cause a lot of
problems.”The Alcohol Beverage Control organization enforces these alcohol control laws
through random checks at bars and restaurants. Undercover agents may ask for illegal drinks. If
an agent is served one of these drinks, the ABC can launch an investigation and revoke the bar or
restaurant’s liquor license. (Fairfield)
        At the grand opening of Slick Willie’s Family Pool Hall in November of 1999, a
customer, John Parker was allegedly served too many drinks. In the parking lot, he became
involved in a fistfight with another customer, Anthony Griffin. Parker suffered crippling brain
injuries during this altercation. He blames the bar for serving him too much alcohol. During the
lawsuit, he also claims that the venue encouraged him to drink more than he usually would by
giving him over thirteen free drinks. In court, Slick Willie’s was charged and found guilty in a
civil lawsuit and required to pay extensive damages. However, the establishment appealed the
decision. A new ruling was issued. Since Slick Willie’s had properly trained their bartenders
according to Texas State workshops, the company was found innocent of all charges. All legal
blame, then, was placed upon the bartender himself in a separate lawsuit. (“Texas Law”)
        Another case dealing with Dram Shop Laws, particularly in Pennsylvania was Rivera v.
Timblin. The incident took place in Lancaster County on March 11, 2008. Sarah Timblin had
been drinking at a local bar, Doc Holliday’s from about 10-11pm. After that, she drove to
another bar, The Brickyard Sports Bar and Grille. She left that bar at about 2 a.m. At which
point, she attempted to drive home. However, on her way, she collided head-on with a car due to
her drunkenness. In the other car were three middle-aged men. All three men died, and the men’s
widows sued both restaurants for providing Timblin with more alcohol although she was clearly
intoxicated. The case was settled out of court; however, the bars had to pay $343,000 to each
deceased man’s family. Since then, Doc Holliday’s was forced to go out of business. (Scott)
         If we continue serving drinks that are too strong at our bar, it could cause The Cat’s
Meow to lose our liquor license. Last year, we sold about $20,000 in alcohol. If our drink sales
are halted because we aren’t complying with ABC codes, our business would lose that income.
This isn’t including the consequences that a lawsuit may bring. If we were to be sued under the
premise Dram Shop Laws, legal settlements could cost us up to $1 million dollars. This doesn’t
include fees for paying lawyers. Also, the cost of our business’s damaged reputation is
inestimable. If anyone at The Cat’s Meow is caught breaking alcohol codes, the bartender who
served the drinks and overall company could all be sued for damages in a lawsuit. Losing our
liquor license could cripple profits so much that the business may have to shut down.
Serving drinks with too much alcohol in them is illegal and could have disastrous financial and
legal consequences, as I described earlier. Therefore, we should attempt to prevent this problem
from happening again. In addition, we should have protective policies in place that could thwart
The Cat’s Meow

any legal issues that may arise if a future bartender does fail to comply with Alcohol Beverage
Control policy. In order to better our business, I suggest three elements of action.

The Cat’s Meow should:

   1. Implement a comprehensive training system for our bartenders in compliance with
      ABC rules.

     Implementing a training system could benefit our business in many ways. Often, alcohol
makes situations blurry for both the server and the consumer. Therefore, our bartenders should
become educated in serving alcohol. The bartenders will better realize the consequences
associated with serving drinks with too high of an alcohol content. They will learn how to
properly card patrons. They will also learn the warning signs that are visible when someone is
too drunk to be served more alcoholic beverages. Our bartenders will be instructed in
Pennsylvania liquor law before they are allowed to work via workbooks that are provided by the
state of Pennsylvania. The employees will also attend “refresher” courses with the manager
every three months. The workbooks will cost $10 a piece, but they are reusable. I suggest that we
initially purchase 5 to keep on hand at the bar and also to provide for our employees.Therefore,
this system will cause our bartenders to be more professional, cautious, and aware.

   2. Conduct regular spot checks, ensuring that our employees are complying with all
      standard liquor policies.

    Conducting regular spot checks is a cost-effective way to “self-check” our employees. In the
same way the Alcohol Beverage Control has undercover customers, we should employ a random
check once a month. The process is simple. We choose an employee’s family member or friend
to work as an undercover agent for the night. This agent must be someone that the rest of the
workers will not recognize. In exchange for free admission to the show, that agent will order an
illegal drink or present an invalid license. If we run spot checks once a month, this would only
cost us $10/month- the cost of a ticket. Depending on how the bartender handles the situation
will let us know if we need to better train our employees.


   3. Purchase liquor liability insurance that would cover our business in case any legal
      mishaps take place as a result of serving alcohol.

    Although we will be properly training our employees, it is uncertain that employees will
always follow protocol. Since we cannot supervise their every move, we should invest in liquor
liability insurance. Liquor liability insurance protects our business if we were to be sued under
the Dram Act. A legal issue could hurt the business financially, but more importantly tarnish our
reputation. Liquor liability insurance ensures that we cannot be sued. Settlements will be made
out of court, and the coverage can go up to $1 million. The insurance typically costs about$5000
per year. However, the protection it would provide for The Cat’s Meow is priceless.
The Cat’s Meow


    In all, an effective solution to our problem would cost approximately $5,170 total. However,
it would certainly be worth it to keep our customers, employees, and reputation safe. The
consequences of non-compliance with Alcoholic Beverage Control Laws could be detrimental to
our business. The Cat's Meow prides itself on being a classy, fun, and safe. If we continue to
allow our bartenders to remain ignorant to regulations, we are not fulfilling our business mission.
In fact, we are putting each of our employees and customers at risk for legal damages, physical
injuries, and emotional trauma. Luckily, our issue can be fixed through a few simple, relatively
economical resolutions. I strongly urge you to take advantage of the solutions that have been
presented in this report. It will ultimately allow us to make more profits and provide our
customers with a more enjoyable experience.
The Cat’s Meow

                                             Sources

Cullen, Joseph. "Pennsylvania Dram Shop Law."Pennsylvania Law Monitor. Stark & Stark
       Attorneys at Law, 09 Sep 2010. Web. 8 Apr 2012. <http://palawblog.stark-
       stark.com/2010/09/articles/personal-injury/pennsylvania-dram-shop-law/>.

Fairfield, Kathy. Personal Interview. 4 April 2012.

Scott, Jeannette. "Widows Sue Over Losses In Crash." Lancaster Online [Lancaster County, PA]
        14 Jun 2009, Weekend ed..Web. 8 Apr. 2012.
        <http://lancasteronline.com/article/local/238810_Widows-sue-over-losses-in-
        crash.html>.

"Slick Willie Dram Shop Act Case."Texas Law. Texas State Court, 28 Mar 2008. Web. 8 Apr
       2012. <http://www.texas-opinions.com/08-20281-Inc-v-Parker-Tex-2008-by-Jefferson-
       Dram-Shop-Act-Suit.html>.

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Hypothetical Business Internal Report

  • 1. The Cat’s Meow Date: April 30, 2012 To: Thomas Marker From: Emily Miner Subject: Alcohol Policy My name is Emily Miner, and I am writing to you at the request of the general manager, Joe Schmoe. I am currently an instructor and choreographer at The Cat’s Meow. I’ve worked at the studio for the past four years. In fact, I’ve been a faithful employee since the business began in 2008. In 2010, I received “Employee of the Year” award for my creative marketing strategies. In addition to these credentials, I recently obtained an associate’s degree in business management. With the acquisition of this degreeand an extensive knowledge of all aspects of the business, I have been asked to find a solution to our recent issue concerning our methods of serving alcohol. Watching The Cat’s Meow grow for the past four years has been an honor. I hope that we may continue to develop and expand, providing the Pittsburgh area with quality entertainment and dance instruction. As instructor and choreographer, I spend roughly 50 hours per week in the studio. I attend every weekend performance in order to critique the dancers and continually improve our show. Many times over the past few months, I have noticed the patrons buying fewer drinks than normal at the bar. I consulted the finance department and discovered that our bar profit has decreased 15% since December. Despite this fact, I also found that our customers have been much more rowdy. The dancers have frequently notified both me and the club bouncer about sexual harassment attempts from intoxicated patrons. Our bouncer, Max Smith has had to remove more customers from the premises than usual. It seems that the issue is improper alcohol handling. Our bartenders may be serving customers beverages when they are clearly too drunk. They may also be serving drinks with too high of an alcohol content. This is illegal and puts The Cat’s Meow at risk for trouble with local authorities and the FDA. The effect of over-serving puts both the dancers and the customers in danger. In addition, this practice costs us valuable profit from the bar, which is our highest source of income. Last Friday night, I decided to take a break from watching the girls dance. Instead, I surveyed the area, attempting to find evidence of the suspected problem. At the front of the venue is a stage, lifted about three feet off the ground. In front of the stage are tables of various sizes, three-seaters and six-seaters. All are classily decorated in black linen and candles. In the dark at the back of the venue is the bar. The bar is a black, marble topped, semicircle. The bartender serves drinks to about 20 surrounding customers. That evening, I spoke with three people that evening who are all play a different role at The Cat’s Meow. Here are the results of the interviews:
  • 2. The Cat’s Meow I interviewed a 22 year-old dancer, Molly Cunningham. She began as a student here three years ago and was offered a position as a professional dancer in early 2011. Me: Lately, have you noticed a difference in the atmosphere at The Cat’s Meow? Molly: I have noticed that the other customers have gotten rowdy earlier than they usually do. I used to feel very comfortable here. The scene was more artistic. Now, the typical crowd has changed from those who want to watch the show to those who are more interested in consuming alcohol and trying to cop feels. I interviewed a regular customer, Tyler Wilson. He is a 34-year old business man that has frequented The Cat’s Meow for two years. Me: Mr. Wilson, you regularly buy drinks at the bar. How do you feel about the quality of those beverages? Wilson: When I first started coming here, I purchased more drinks that I do now. Now, when I order a drink, it is incredibly strong. Often, it is too strong for me to finish. The bartenders are also very charismatic. They almost pressure customers into buying drinks. I used to watch the show from the bar and have a great time. Now, I prefer to take my drink to my table. I interviewed our Friday night bartender, Gary Lease. He has been working for The Cat’s Meow since November of 2011. Me: Gary, do you ever find that the customers are getting too rowdy? How do you know when to cut a customer off? Gary: No, I mean, the more fun that they are having, the better! I can’t imagine going out on a Friday night to a bar, unless you want to get drunk. I seldom cut customers off because I feel that they are just having a good time. I make the drinks very strong. That’s great for business, right? As you can see, there has been an increase in hazardous activity at The Cat’s Meow. Also, our bartender seems to be uninformed of Alcoholic Beverage Control laws. Willfully serving customers alcoholic drinks whilst they are visibly intoxicated or serving drinks that are too strong at a bar can result in expensive and criminal consequences. I researched this problem thoroughly. Through research, I have learned about Pennsylvania Dram Shop Laws and the role of Alcohol Beverage Control. I also investigated the court cases, Parker v. Slick Willie’s Incorporated and Rivero v. Timblin. These demonstrate the dangers of non-compliance with standard alcohol handling procedures. Dram Shop Laws are essentially laws that can legally charge bars for the actions of drunken patrons. If a bar or restaurant is serving alcohol to a customer who is too intoxicated or if a venue is breaking any Alcohol Beverage Control codes in serving a customer, the business can be held liable for any harm that patron causes to himself/herself or others. These laws are in effect in Pennsylvania. These laws are typically used against businesses in any case when an intoxicated patron dies or is physically injured or the patron kills or physically injures someone else. Dram Shop Laws are usually used against businesses in incidents of drunk driving and physical altercations. (Cullen) I visited the local Bison Inn on Wednesday, April 4, 2012. There I spoke with a bartender, Kathy Fairfield. Kathy is forty years old and has worked at the bar for almost ten
  • 3. The Cat’s Meow years. She explained to me that there are certain drinks that, by law, the bar cannot sell. Some of these drinks are: Irish Car Bombs, Hillbilly Ass Kickers, Widow-makers, and any drink that is considered “on fire”. When I asked her why bars aren’t allowed to serve these drinks, she replied, “There’s too much alcohol in them. The customers don’t know what they are consuming when they order these drinks. It [the drink] hits them too fast and too hard. It can cause a lot of problems.”The Alcohol Beverage Control organization enforces these alcohol control laws through random checks at bars and restaurants. Undercover agents may ask for illegal drinks. If an agent is served one of these drinks, the ABC can launch an investigation and revoke the bar or restaurant’s liquor license. (Fairfield) At the grand opening of Slick Willie’s Family Pool Hall in November of 1999, a customer, John Parker was allegedly served too many drinks. In the parking lot, he became involved in a fistfight with another customer, Anthony Griffin. Parker suffered crippling brain injuries during this altercation. He blames the bar for serving him too much alcohol. During the lawsuit, he also claims that the venue encouraged him to drink more than he usually would by giving him over thirteen free drinks. In court, Slick Willie’s was charged and found guilty in a civil lawsuit and required to pay extensive damages. However, the establishment appealed the decision. A new ruling was issued. Since Slick Willie’s had properly trained their bartenders according to Texas State workshops, the company was found innocent of all charges. All legal blame, then, was placed upon the bartender himself in a separate lawsuit. (“Texas Law”) Another case dealing with Dram Shop Laws, particularly in Pennsylvania was Rivera v. Timblin. The incident took place in Lancaster County on March 11, 2008. Sarah Timblin had been drinking at a local bar, Doc Holliday’s from about 10-11pm. After that, she drove to another bar, The Brickyard Sports Bar and Grille. She left that bar at about 2 a.m. At which point, she attempted to drive home. However, on her way, she collided head-on with a car due to her drunkenness. In the other car were three middle-aged men. All three men died, and the men’s widows sued both restaurants for providing Timblin with more alcohol although she was clearly intoxicated. The case was settled out of court; however, the bars had to pay $343,000 to each deceased man’s family. Since then, Doc Holliday’s was forced to go out of business. (Scott) If we continue serving drinks that are too strong at our bar, it could cause The Cat’s Meow to lose our liquor license. Last year, we sold about $20,000 in alcohol. If our drink sales are halted because we aren’t complying with ABC codes, our business would lose that income. This isn’t including the consequences that a lawsuit may bring. If we were to be sued under the premise Dram Shop Laws, legal settlements could cost us up to $1 million dollars. This doesn’t include fees for paying lawyers. Also, the cost of our business’s damaged reputation is inestimable. If anyone at The Cat’s Meow is caught breaking alcohol codes, the bartender who served the drinks and overall company could all be sued for damages in a lawsuit. Losing our liquor license could cripple profits so much that the business may have to shut down. Serving drinks with too much alcohol in them is illegal and could have disastrous financial and legal consequences, as I described earlier. Therefore, we should attempt to prevent this problem from happening again. In addition, we should have protective policies in place that could thwart
  • 4. The Cat’s Meow any legal issues that may arise if a future bartender does fail to comply with Alcohol Beverage Control policy. In order to better our business, I suggest three elements of action. The Cat’s Meow should: 1. Implement a comprehensive training system for our bartenders in compliance with ABC rules. Implementing a training system could benefit our business in many ways. Often, alcohol makes situations blurry for both the server and the consumer. Therefore, our bartenders should become educated in serving alcohol. The bartenders will better realize the consequences associated with serving drinks with too high of an alcohol content. They will learn how to properly card patrons. They will also learn the warning signs that are visible when someone is too drunk to be served more alcoholic beverages. Our bartenders will be instructed in Pennsylvania liquor law before they are allowed to work via workbooks that are provided by the state of Pennsylvania. The employees will also attend “refresher” courses with the manager every three months. The workbooks will cost $10 a piece, but they are reusable. I suggest that we initially purchase 5 to keep on hand at the bar and also to provide for our employees.Therefore, this system will cause our bartenders to be more professional, cautious, and aware. 2. Conduct regular spot checks, ensuring that our employees are complying with all standard liquor policies. Conducting regular spot checks is a cost-effective way to “self-check” our employees. In the same way the Alcohol Beverage Control has undercover customers, we should employ a random check once a month. The process is simple. We choose an employee’s family member or friend to work as an undercover agent for the night. This agent must be someone that the rest of the workers will not recognize. In exchange for free admission to the show, that agent will order an illegal drink or present an invalid license. If we run spot checks once a month, this would only cost us $10/month- the cost of a ticket. Depending on how the bartender handles the situation will let us know if we need to better train our employees. 3. Purchase liquor liability insurance that would cover our business in case any legal mishaps take place as a result of serving alcohol. Although we will be properly training our employees, it is uncertain that employees will always follow protocol. Since we cannot supervise their every move, we should invest in liquor liability insurance. Liquor liability insurance protects our business if we were to be sued under the Dram Act. A legal issue could hurt the business financially, but more importantly tarnish our reputation. Liquor liability insurance ensures that we cannot be sued. Settlements will be made out of court, and the coverage can go up to $1 million. The insurance typically costs about$5000 per year. However, the protection it would provide for The Cat’s Meow is priceless.
  • 5. The Cat’s Meow In all, an effective solution to our problem would cost approximately $5,170 total. However, it would certainly be worth it to keep our customers, employees, and reputation safe. The consequences of non-compliance with Alcoholic Beverage Control Laws could be detrimental to our business. The Cat's Meow prides itself on being a classy, fun, and safe. If we continue to allow our bartenders to remain ignorant to regulations, we are not fulfilling our business mission. In fact, we are putting each of our employees and customers at risk for legal damages, physical injuries, and emotional trauma. Luckily, our issue can be fixed through a few simple, relatively economical resolutions. I strongly urge you to take advantage of the solutions that have been presented in this report. It will ultimately allow us to make more profits and provide our customers with a more enjoyable experience.
  • 6. The Cat’s Meow Sources Cullen, Joseph. "Pennsylvania Dram Shop Law."Pennsylvania Law Monitor. Stark & Stark Attorneys at Law, 09 Sep 2010. Web. 8 Apr 2012. <http://palawblog.stark- stark.com/2010/09/articles/personal-injury/pennsylvania-dram-shop-law/>. Fairfield, Kathy. Personal Interview. 4 April 2012. Scott, Jeannette. "Widows Sue Over Losses In Crash." Lancaster Online [Lancaster County, PA] 14 Jun 2009, Weekend ed..Web. 8 Apr. 2012. <http://lancasteronline.com/article/local/238810_Widows-sue-over-losses-in- crash.html>. "Slick Willie Dram Shop Act Case."Texas Law. Texas State Court, 28 Mar 2008. Web. 8 Apr 2012. <http://www.texas-opinions.com/08-20281-Inc-v-Parker-Tex-2008-by-Jefferson- Dram-Shop-Act-Suit.html>.