Restaurant And Hospitality News – October 3, 2016
By Christine Kern, contributing writer
In news this week, Trump Hotels ponies up $50,000 in fines for its untimely notification of data breaches; the House passes a bill delaying the implementation of new overtime rules; and self-driving robots may be the solution to that “last mile” of delivery.
Trump Hotels Fined $50,000 For Failure To Notify Customers Of Data Breach
As cybercrime escalates, particularly among the retail and hospitality industries, companies must be vigilant about their proactive security and their reactive strategies or face the consequences. The New York Attorney General assessed a $50,000 fine on Trump International Hotels Management, aka Trump Hotel Collection (THC) because it did not notify affected customers of the data breach in a timely fashion, according to Time. In the attack, more than 70,000 credit card numbers and other customer personal information were compromised on 39 systems affective five hotel properties, according to the AG’s press release. The breach, which occurred in May of 2014, was not discovered until June 2015, while affected customers were not alerted for an additional four months. This delay violated New York’s General Business Law §988-aa requiring notice to consumers “in the most expedient time possible and without unreasonable delay.”
A second breach was subsequently confirmed in March of 2016, finding that an attacker gained unauthorized access in November 2015. The hotel chain alerted customers 11 days after the discovery of the second attack. A spokeswoman for the Trump Hotel Collection told the Associated Press that protecting customer data is a top priority, but noted Trump Hotels hasn't been the only target of hackers.
However, the AG asserted that the subsequent breaches could have been prevented if THC had bolstered security after the discovery of the first attack, as was recommended by the forensic investigator in the first incident.
“It is vital in this digital age that companies take all precautions to ensure that consumer information is protected, and that if a data breach occurs, it is reported promptly to our office, in accordance with state law," said Attorney General Eric T. Schneiderman. “Consumers personal information is all too often exposed to wrong-doers with ill-intent. We will continue working to help protect hardworking New Yorkers from all forms of identity theft.”
House Approves Delay For Implementing Overtime Rule, But Bill Faces Opposition in the Senate
The House of Representatives passed legislation 246 to 177 that would delay the implementation of new overtime rules by six months, but it now faces a tougher battle in the Senate and a potential presidential veto, according to The Nation’s Restaurant News. The bill, Regulatory Relief for Small Businesses, Schools and Nonprofits Act, or HR 6094, was sponsored by Rep. Tim Walberg (R-MI), and has the backing of the Republicans. The bill would postpone implementation of new Department of Labor rules until June 1, 2017. These rules shift the threshold for determining overtime pay, and have posed a great challenge for smaller business owners.
The current changes are scheduled to take effect December 1, 2016, and raise the threshold of eligibility for overtime from $455 per week to $913 per week, or $47,476 annually. This would make some 4.2 million additional workers nationwide eligible for overtime pay.
The new bill is supported by the national Restaurant Association, National Retail Federation, and the National Council of Chain Restaurants, among others. “Delaying the implementation date, allowing for a more gradual phase-in period, eliminating automatic indexing and carefully studying the impact this rule will have is crucial for small businesses navigating yet another burdensome regulation,” read an NRA statement.
Self-Driving Robots Could Revolutionize The “Last Mile” Of Meal Delivery Services
As restaurants and retailers struggle with conquering that “last mile” of delivery services, fleets of self-driving robots capable of delivering groceries or restaurant meals are currently being tested in the U.S. Developed by Starship Technologies, an Estonian tech company founded in 2014. The robots look like small six-wheeled buggies and are able to deliver goods to consumers within a short radius of their point of origin. According to The Washington Post, the 40-pound robot can make local deliveries in 30 minutes or less, cruising at a speed of 4 mph. Use of the robots could reduce the cost of delivery by an order of magnitude, helping to resolve the issue of that “last mile.”
“The robots will cross the streets very much like the humans do: stop, look both ways, and wait until it is safe to cross,” Starship Technologies chief executive Ahti Heinla said in an interview. “The robot can recognize approaching cars with its sensor suite from 100-200 meters and will cross the streets only in locations with great visibility.”
The routes are mapped ahead of time to allow the robots to navigate safely on their own, relying on sensors and cameras to negotiate their surroundings. It also includes speakers so that the operator can speak to pedestrians. “If somebody bothers the robot the operator can actually shout — ‘Hey, what are you doing?’ ” Heinla told the BBC. “If somebody tries to steal something the operator can actually yell ‘The police are coming in five minutes! We know your location; you’re being filmed as well.’ “