Restaurant And Hospitality News – February 6, 2017
By Christine Kern, contributing writer
In news this week, ransomware hits a four-star European hotel; Starbucks pledges to hire 10,000 immigrants to oppose Trump’s ban; and Supreme Court nominee Neil Gorsuch is seen as “employer friendly” by the restaurant industry.
Ransomware Attack Locks Guests Out Of European Hotel
According to The Local, Seehotel Jӓgerwirt, one of Europe’s top hotels, was hit by a ransomware attack and paid thousands in Bitcoin ransom to hackers who gained control of their electronic key system. As a result, hundreds of guests were locked out until the hotel paid up. The attack, which hit the hotel while it was booked to capacity, is leading hotels to rethink their use of technology in light of increased cybersecurity risks.
While initial reports that guests were locked inside their rooms were not quite true, security researcher Nolen Scaife told Wired “It might be possible to lock a person out of a hotel room, depending on how the lock system is designed,” but guests were not locked in. Instead, the attack meant that those guests who left their rooms could not re-enter them once they stepped outside.
“Ransomware is becoming a pandemic,” Tony Neate, a former British police officer who investigated cybercrime for 15 years, told The New York Times. “With the internet, anything can be switched on and off, from computers to cameras to baby monitors.” He added, but “hacking a hotel and locking people out of their rooms is a new line of attack.”
The hotel’s managing director told The Verge that “we had a cyberattack, but the only problem was that we could not program keycards for the guests checking in on the same day. The keycards and the computers were affected, but the doors were not.” He actually admitted that this was the fourth such attack against the hotel.
In the wake of the attack, the Austrian hotel is taking no chances. Forbes reported that they are replacing the existing smart locks with classic locks to avoid future hacking attacks.
Starbucks Responds To Trump’s Immigration Ban with Pledge to Hire 10,000 Immigrants
After President Donald Trump signed the executive order imposing a travel ban on immigrants from seven Middle Eastern nations, Starbucks responded by announcing a plan to hire thousands of refugees over the next five years to staff its stores across the 75 countries in which it does business. CEO Howard Schultz made the announcement in a memo to his employees. The memo explained that Starbucks would begin by hiring those individuals in its U.S. stores who have served with U.S. troops as interpreters and support personnel abroad.
Schultz wrote, “We are living in an unprecedented time, one in which we are witness to the conscience of our country, and the promise of the American Dream, being called into question. These uncertain times call for different measures and communication tools than we have used in the past. Kevin and I are going to accelerate our commitment to communicating with you more frequently, including leveraging new technology platforms moving forward. I am hearing the alarm you all are sounding that the civility and human rights we have all taken for granted for so long are under attack, and want to use a faster, more immediate form of communication to engage with you on matters that concern us all as partners.”
The statement also emphasized the need to build bridges, not walls, in response to the new president’s policy towards Mexico, and that the company stands ready to provide healthcare to its employees even as Congress moves to repeal Obamacare.
“We are in business to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time – whether that neighborhood is in a Red State or a Blue State; a Christian country or a Muslim country; a divided nation or a united nation,” Schultz wrote. “That will not change. You have my word on that.”
Trump’s Supreme Court Nominee Seen as Employer Friendly but Will Face Likely Opposition in Senate
President Donald Trump announced his nomination of Judge Neil Gorsuch to fill the current vacancy in the U.S. Supreme Court left by Justice Antonin Scalia when he died last year. Gorsuch has served on the U.S. Court of Appeals for the 10th Circuit since 2006, and his nomination was seen as a positive move by the National Restaurant Association. According to The Nation’s Restaurant News, Gorsuch is seen as employer friendly, and most likely would support the NRA in its recent challenge to existing laws that prevent cooks and dishwashers from sharing in tip pools.
Angelo Amador, executive director of the NRA’s Restaurant Law Center, said that Gorsuch is “an experienced and knowledgeable judge who had extensive bipartisan support when he was confirmed to the 10th Circuit unanimously. We look forward to again having a full bench in the U.S. Supreme Court to decide cases of critical importance to our industry and the economy in general.”
Gorsuch’s reputation is one of siding with employers in many cases and as being hostile toward “burdensome government regulations,” the NRN stated. A report from legal firm Fisher Phillips stated, "Employers can feel confident that he will more often than not side with them when it comes to workplace issues that land at the Supreme Court.”
Of course, before that can happen, Gorsuch must gain Senate approval and win the seat, which may be a difficult task. The report stated that Senate Democrats are poised to use the nomination “as a staging ground to express opposition to Trump.” Confirmation hearings should be conducted in late March or early April.