Free Human Trafficking Prevention Training Available for Restaurants and Lodging Facilities Across Oregon

Wilsonville, OR—To honor National Human Trafficking Prevention Month, the Oregon Restaurant & Lodging Association (ORLA) announced today the renewal of its partnership with the nonprofit Businesses Ending Slavery and Trafficking (BEST), to make human trafficking awareness training available to all ORLA members and their staffs free of charge throughout 2025. BEST provides specialized training in human trafficking prevention. In partnership with ORLA, BEST’s Inhospitable to Human Trafficking training for the hospitality industry is available to help restaurant and lodging employees across Oregon learn the indicators of human trafficking and how to safely report it. The partnership between ORLA and BEST gives the hospitality industry in Oregon a tool that has been proven to prepare employees to be able to recognize human trafficking situations and assist in recovering more victims. 

"Our association is deeply committed to taking a leadership role in building stronger partnerships with like-minded organizations dedicated to anti-trafficking training," said Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association. "As an industry, we have a critical responsibility to be part of the solution. Providing high-quality, no-cost training isn't just a priority—it's a fundamental obligation to society." 

Human trafficking networks rely on legitimate public-facing businesses to sustain their operations and infrastructure. Hotels, restaurants, and other hospitality businesses are used by human traffickers as places to recruit victims and connect victims with buyers and other exploiters. In 2023 the National Human Trafficking Hotline was contacted 461 times about suspected human trafficking incidents in Oregon, including 166 contacts by victims or survivors of human trafficking. There were 132 cases of human trafficking identified in Oregon in 2023, involving 248 victims.

The aim of ORLA’s partnership with BEST is to have even more human trafficking cases identified and reported across the state by equipping hospitality employees to recognize and report the behaviors that are the indicators of human trafficking.  

“The crime of human trafficking flourishes when traffickers co-opt legitimate businesses to exploit vulnerable people,” says Kirsten Foot, CEO & Executive Director for Businesses Ending Slavery and Trafficking. “Our partnership with ORLA is very important because it makes our human trafficking prevention training available for free to everyone employed by a member of ORLA. By becoming informed and equipped, everyone in hospitality industry can help victims get the help they need and prevent people from being trafficked.”

BEST’s Inhospitable to Human Trafficking is a 30-minute, online, video-based training. The training is available in English or Spanish, and it has been proven to increase hospitality employee reporting. Independent evaluators of BEST's hospitality industry training found trained employees were more likely to come forward to report human trafficking incidents to their managers. Evaluators also found that 97 percent of hospitality employee participants believe BEST’s training made their workplace safer. 

Legislative Updates on the Federal Front

Federal Court Blocks New Reporting Requirements for Small Businesses
A federal court has temporarily halted the implementation of new reporting requirements under the Corporate Transparency Act (CTA) that were set to take effect on January 1, 2025. These requirements would have mandated small businesses, including restaurants with less than $5 million in annual revenue and fewer than 20 full-time employees, to report detailed ownership and business information to the U.S. Treasury Department.

This matters to restaurant and lodging operators because noncompliance penalties were looming, and the requirements would have added administrative burdens to already stretched small business owners. The delay provides breathing room to better understand and prepare for potential future regulations. It remains to be seen how new Treasury Department leadership in 2025 will handle the CTA and its reporting requirements so operators should stay informed on how these requirements evolve.

AHLA Urges Congress to Protect Consumers
The American Hotel & Lodging Association (AHLA) this week urged congressional leaders to move lodging fee transparency legislation – the House-passed No Hidden FEES Act or the Senate’s Hotel Fees Transparency Act – to President Biden’s desk. These bills would protect consumers by establishing a single and transparent nationwide standard for mandatory lodging fee displays. 

These legislative efforts are aimed at fostering transparency and consumer trust in the hospitality industry. By addressing hidden fees through proposed federal standards, operators can ensure a more straightforward booking process, enhancing guest satisfaction and loyalty. Furthermore, the emphasis on anti-human trafficking measures underscores the industry’s commitment to ethical practices, reinforcing the role of hotels as safe and responsible businesses. In case you weren't aware, ORLA partners with Businesses Ending Slavery and Trafficking (BEST) to provide FREE human trafficking training for association members and their staff. This comprehensive course about human trafficking is just 30-minutes, and it can help protect your hotel or restaurant – maybe even a life. Visit ORLA's website for more information.

Liz Dahlager, COO of Mereté Hotel Management, Named One of Portland Business Journal's Executives of the Year 2025

​Eugene, OR – Mereté Hotel Management is proud to announce that Liz Dahlager, Chief Operating Officer, has been recognized as one of the Portland Business Journal's Executives of the Year 2025. This prestigious award honors outstanding leaders in the Portland and greater Oregon business community who demonstrate exceptional vision, leadership, and commitment to their organization’s growth and the community.

The award will be presented during an awards luncheon on Thursday, January 23, 2025, at the Hilton Portland, located at 921 SW 6th Avenue, Portland, OR. The event will celebrate the achievements of Liz and her fellow honorees, showcasing their significant impacts on the local economy and their respective industries.
 
Liz Dahlager has been instrumental in driving growth and operational excellence at Mereté Hotel Management, overseeing a portfolio of 20 properties that have consistently delivered exceptional guest experiences. Her innovative strategies and dedication to growing the company have not only enhanced the company’s performance but have also set new standards within the hospitality industry. Liz currently serves as Secretary on the Oregon Restaurant & Lodging Association's Board of Directors.
 
“Receiving this honor is a testament to the hard work and dedication of our entire team at Mereté Hotel Management,” said Dahlager. “I am truly grateful for the support of my colleagues and the trust of our hotel owners, which empowers us to find innovative ways to deliver superior results and elevate the hospitality experience for guests.”

For more information about Mereté Hotel Management and its commitment to excellence in hospitality, please visit www.meretehotels.com.
 
About
Mereté Hotel Management has been operating hotels for 30 years and is an award-winning full-service hotel management company based in Springfield, Oregon, with hotels located throughout the Pacific Northwest. Mereté operates hotels under licensing agreements with Marriott International, Hilton Worldwide, Hyatt Hotels Corporation, IHG Hotels and Resorts, Wyndham Hotels and Resorts, and Choice Hotels International. For additional information about Mereté Hotel Management services, please contact us at [email protected].

For media inquiries, please contact Allison Westerhoff, Executive Assistant.

​2025 What’s Hot Culinary Forecast from the National Restaurant Association predicts top menu trends for next year
​
[Wilsonville, OR] – The National Restaurant Association's 2025 What’s Hot Culinary Forecast is here, revealing top trends set to shape the nation’s menus with a fresh focus on flavor, wellness, and sustainability. This year, consumers can expect restaurant menus to buzz with wellness-enhancing mushrooms, honey-infused creations with a spicy twist, and the vibrant tastes of Southeast Asia. Today’s diners are not only craving bold flavors but are also prioritizing environmental consciousness, value, and well-being in every bite. 

The report, based on the insights of thought leaders in the culinary world, highlights the top trends that will shape the culinary landscape in the coming year. Among the hottest trends identified, sustainability and local sourcing emerged as the top overall trend on the list, with industry experts noting that customers increasingly seek out restaurants that offer locally sourced, environmentally friendly options. 

In the “top ingredients” category functional mushrooms are expected to become a real hit in wellness-centric dishes. Earthy fungi are now being explored by chefs everywhere as mushrooms offer a variety of perceived health benefits and can be used in everything from pasta dishes to coffee to delish desserts. Meanwhile hot honey—a sweet-and-spicy sensation—is heating up everything from pizza to ice cream. Leading customer cravings in cuisines, Southeast Asian flavors take the top three spots for “top dishes”. Korean, Vietnamese, and Filipino cooking are capturing Americans’ attention for their unique, bold profiles that balance flavor and wellness.

“This year’s forecast highlights a strong shift toward enhancing both individual wellness and the health of our planet,” said Lori Little, Director of Communications. “As customers seek sustainable choices and exciting new flavor experiences, restaurants are responding with options that emphasize locally sourced ingredients and innovative menu offerings. The popularity of Southeast Asian flavors also speaks to a more adventurous consumer palate, with many diners interested in global cuisine that brings added depth to their dining experiences.”

Top 10 Overall Trends for 2025:

1. Sustainability and Local Sourcing – Eco-friendly practices are on the menu as diners increasingly prefer locally sourced ingredients and waste-reducing efforts that support the planet and local farms.
2. Cold Brew – Cold brew beverages are cooler than ever, satisfying those seeking energizing, smooth, and refreshing drinks without the bitterness. 
3. Korean Cuisine – With its spicy, tangy, and umami-rich flavors, Korean cuisine is sizzling in popularity, satisfying diners’ thirst for adventurous and bold meals.
4. Hot Honey – Sweet with a kick! This honey variation is heating up dishes, adding a spicy buzz to everything from fried chicken to ice cream.
5. Vietnamese Cuisine – Light, herbaceous and packed with fresh flavors, Vietnamese food is ideal for health-conscious diners who love a balanced, flavorful meal. 
6. Hyper-Local Beer & Wine – These drinks put the “cheers” in local flavors, connecting customers to regional brews and supporting nearby craft producers.
7. Fermented/Pickled Foods – From kimchi to pickled veggies, these zesty, tangy flavors are in a pickle to please diners who love a unique flavor punch.
8. Wellness Drinks – Functional beverages packed with ingredients like vitamins and probiotics are taking center stage, offering a sip of wellness in every glass. 
9. Creative Spritzes – Refreshing, light and often low-alcohol, spritzes are sparking up the beverage scene, delivering a bubbly experience without the buzz.
10. Value Deals – With inflation still on consumers’ minds, value-focused deals are keeping dining out accessible for budget-conscious patrons.

“Macro trends reflect the bigger-picture priorities of today’s consumers, extending beyond just what’s on the plate to convenience, creativity, and efficiency,” Little added. “As the restaurant industry tackles challenges like labor shortages and changing consumer values, operators are innovating with streamlined menus, pre-prepped ingredients, and inventive flavors that balance efficiency with excitement. This year’s forecast celebrates both novelty and nostalgia, offering modern twists on familiar favorites and globally inspired flavors that make dining out a memorable experience.”

The National Restaurant Association surveyed nearly 300 culinary and industry professionals in the United States in October 2024.

ORLA members can find this report in addition to a library of industry intelligence and resources by logging into the Member Portal.

As guardians of hospitality establishments, hotel security personnel play a crucial role in ensuring the safety and well-being of guests. Beyond the expected tasks of preventing theft or maintaining order, hotel security professionals have the power to save lives by being trained to identify and respond to signs of human trafficking. Human trafficking is a pervasive issue that often thrives in the shadows of hotels, making it essential for security teams to be equipped with the knowledge and skills to spot potential cases so they can safely intervene.

Understanding Human Trafficking
Human trafficking is a complex crime that involves the exploitation of individuals for labor or commercial sex acts through the use of force, fraud, or coercion. In the context of hotels, victims of human trafficking may be brought in by traffickers who use these establishments as venues to exploit and control their victims, and to meet sex buyers.

Potential Signs of Human Trafficking
Recognizing the warning signs of human trafficking is paramount for hotel security personnel in identifying and addressing potential cases. By understanding the indicators of trafficking, security teams can act as front-line responders in safeguarding vulnerable people who may be at risk.

Physical Indicators
Physical signs of human trafficking may include untreated physical injuries, bruises, or other visible injuries. Victims of human trafficking may show signs of neglect or abuse, which can be detected by observant security personnel during routine patrols or interactions.

Behavioral Indicators
Behavioral cues can also signal potential human trafficking situations. Victims may exhibit fear, anxiety, or a reluctance to engage with others—especially when accompanied by controlling individuals who might speak on their behalf. Security staff trained to notice behavioral patterns can intervene and provide assistance to those in need.

Presence of Control
One of the key indicators of human trafficking is the presence of individuals who exert control over another person’s movements, communication, or decision-making. In hotels, security personnel might encounter situations where guests are not allowed to speak freely or appear to be under the influence of another party. Recognizing these controlling dynamics can help security teams identify and support potential victims of trafficking.

The Role of Hotel Security
Hotel security staff can be the first line of defense in combating human trafficking within the hospitality industry. By receiving proper training and education to be able to quickly recognize the signs of human trafficking, security teams can make a significant impact in preventing these crimes and providing support to victims.

Training and Collaboration
Training hotel security staff to recognize and respond to human trafficking is essential in creating a safe environment for guests and employees. BEST’s Inhospitable to Human Trafficking training, is a fundamental tool for property training all hotel employees, including security teams. Security personnel can collaborate with local law enforcement agencies to report suspicious activities, share information, and assist in investigations related to human trafficking cases occurring on the hotel’s premises.

Impact of Training
Equipping hotel security personnel with the tools to identify and address human trafficking can have a profound impact on the lives of victims who are often suffering from extrema trauma and abuse. By intervening and connecting victims to supportive social services, security teams can help break the cycle of exploitation and provide a path to safety and recovery for survivors of human trafficking.

Conclusion
Hotel security staff play a critical role in combatting human trafficking and ensuring the safety and well-being of all individuals who pass through their doors. By training security personnel to recognize the signs of trafficking and empowering them to take appropriate action, hotels can create a safer environment for guests and contribute to the fight against this pervasive crime. It is imperative for hotels to prioritize training to be able to spot human trafficking in order to protect vulnerable people and ensure the safety of all guests. | Katie Amodei, BEST


Katie Amodei is the communications director for the nonprofit, Businesses Ending Slavery and Trafficking (BEST), which is a dedicated to working with businesses to disrupt human trafficking. BEST provides awareness raising, consultation, and training for businesses across the United States.

To sell alcohol in Oregon, a business must carry at least $300,000 of liquor liability coverage. Unfortunately, the cost for this mandatory coverage — and the minimum premiums that insurance companies are charging — keep rising, placing increased financial pressure on the Oregon hospitality industry. 

Just one liquor liability claim can place your hospitality business or event venue in fiscal jeopardy. Here’s a brief overview of the challenges, along with steps you can take to protect your establishment.

The liquor liability landscape
Many restaurants, bars, and taverns are facing double-digit premium increases. Why? Over the past five years, liquor liability claim frequency and severity have grown significantly, along with the litigious environment. 

Underwriters look at historical data to estimate future costs. With the rise of high-profile lawsuits and multi-million-dollar judgments, the historical data is no longer adequate for forecasting losses. As a result, fewer insurers are willing to underwrite liquor liability. And those who do are pricing the coverage conservatively.

Delayed reporting
Liquor liability claims often emerge weeks or months after an injury occurs. In Oregon, an injured party must provide written notice to the alcohol provider within 180 days of the incident in order to pursue a claim. Then, they have up to two years from the incident date to file a liquor liability lawsuit.

Many plaintiffs wait until day 179 to provide the written notice and day 729 to file the lawsuit. During that elapsed time, you may experience staff turnover. If you have security cameras and only keep the video footage for 30 days, important evidence may be long gone. How do you remember a specific patron from six months ago or two years ago?

The unpredictability and delayed reporting of liquor liability claims contributes to insurer’s reluctance to take on the risk.

Employee training: The cornerstone of your liquor liability defense
Employees are your first line of defense against potential liquor liability claims. Train them beyond state-required basics so they know how to:

1. Prevent underage drinking through careful ID inspection: Some establishments are asking all patrons for ID, including 80-year-old grandmothers. But do your employees know the acceptable forms of ID? Can they spot a fake ID? Bring in an expert who can teach your workforce how to identify underage patrons. Also, let your staff know that serving alcohol to an underage patron is a fireable offense. 
2. Identify the signs of intoxication: Slurred speech and inability to walk in a straight line are obvious signs of impairment. But employees need training and practice to discern more subtle signs of alcohol, marijuana, or other drug use. If a bar hopper arrives, already under the influence, do employees know not to serve alcohol to the patron and to report the situation to a manager?
3. Communicate effectively with patrons and managers: As a manager, you are “captain of the ship.” You have the final say on whether to deny alcohol service. Ask employees to come to you any time they have a question about whether to serve. Teach them what to say/not say to patrons and when to loop you into the communication. Show them what to do if a patron becomes angry or demanding.
4. Document incidents: Once you cut someone off, document what you did, when, and why. Consistent documentation can make the difference in how a jury views your establishment. 

No documentation, no defense
Even establishments who are doing all the right things can find themselves named in a liquor liability lawsuit. This is why it’s crucial to document incidents thoroughly.

In a recent case, state police came into a bar within 48 hours of an incident, so the establishment knew about a potential liquor liability claim right away. The manager was able to secure video footage, point-of-sale data, and other documentation, which later proved pivotal in minimizing the claim. The bar had video of the specific table, knew exactly what they had served, and what the patron had consumed. 

Do you have a “red book”? This is Oregon’s name for an incident log (each state calls it something different). In this book, you document any liquor-related incidents, such as a brawl, dating violence, or other event. Write as much detail as possible about what happened, when, which server(s) witnessed the incident, etc. If you have video on premises, there needs to be a procedure to pull and store the video related to the incident. Similarly, you want to capture all the point-of-sale data related to the incident, so you have proof of what you served to the patron(s).

All employees need training on the documentation process and its importance. Check the incident log daily to make sure your team is documenting events thoroughly. If a claim occurs and you’re missing documentation, there will be a presumption of liability. In contrast, if you have video, an incident log, and point-of-sale data, you have a way to defend your business. Documentation can lessen the impact of a potential claim.

The role of policies, procedures, and operational controls
Do you have written policies governing whether you give doubles or stop serving shots after certain hour? Do your bartenders have specific procedures for communicating with one another — so if you deny service to Johnny, he doesn’t try to get a drink from a different bartender? 

If you suspect a patron may have over-consumed, do you pay for a rideshare to get the person home safely? 
Implementing best practices for managing liquor liability will not prevent lawsuits, but you position yourself for a better outcome. You want a jury (and your insurance company) to see that you consistently take well-thought-out precautions to keep you customers and community safe. | Rob Hoover, Risk Strategies

About:
​Rob Hoover of Risk Strategies is a national expert on liquor service safety. At 15, Rob started as a potato peeler in a small, family-owned diner. Today, he’s an industry insider with deep knowledge of day-to-day hospitality challenges. For the past 20 years, he’s helped hospitality businesses as a risk management and insurance advisor. Rob Hoover of Risk Strategies Fournier Group manages ORLA’s Hospitality Insurance Program (HIP). Contact him to for more information on any of the topics in this article.

Measuring Advocacy ROI | Elections & Measures | Oregon Champions Recognized

Update 10.31.24:

How the Election Could Impact Industry Priorities: The U.S. is in a record-breaking period of “change elections.”  In each of the last 5 national elections, there’s been a change in party control of the U.S. House of Representatives, U.S. Senate, or the White House. The National Restaurant Association policy team takes a look at the likely course of action for some of our industry’s priority issues under the array of possible election outcomes. Get the full assessment.

All Hands on Deck to Defeat the Costly Tax on Sales: ORLA worked with the No on Measure 118 campaign to create an infographic that illustrates the impact Measure 118 will have on restaurants specifically. To help spread the message, check out the growing collection of collateral available through the campaign’s Action Center.

Oregon Hospitality's ROI on ORLA Advocacy: In case you did not realize, ORLA is the only statewide association defending Oregon hospitality businesses from unwanted local meals taxes, local room tax increases and other government revenue attempts to unfairly target our industry. As a reminder of what ORLA has been able to achieve together on this front, take a look at the Advocacy ROI summary and see how this advocacy work could impact your bottom line.

Election Media Guide for Portland Businesses: With the upcoming election, Travel Portland continues to monitor election news and create strategies and messaging to respond when necessary and appropriate. Acknowledging how potential demonstrations may impact our community and businesses, Travel Portland worked with a Strategic Communications agency to craft a communications guide tailored for use by hoteliers and small businesses. This succinct media kit provides key information to address potential customer concerns during this election season. ORLA was asked to help share these resources in the hope you and your teams find value in the information.

Help shape the 2025 Federal Agenda: What are the trends and challenges that will define your business in 2025? Restaurant members are encouraged to complete the National Restaurant Association’s 2025 Business Conditions Survey. Your input will provide valuable data to help illustrate how current business conditions are impacting the industry. Learn more with the Association’s latest 90-Second Update.

Recognizing Industry Champions: Last month, five industry members and one allied member were honored in front of a three hundred of their peers at the ORLA Hospitality Industry Awards dinner. One of our honorees was Sandra Reyes, Guest Services Agent at the SaltLine Hotel in Seaside, recognized for her innate ability to make every person in the hotel feel welcome with the “Aloha Spirit.” Watch her story along with our other 2024 award recipients on ORLA's YouTube channel.

ERTC Refunds Back in Process: The long-delayed Employee Retention Tax Credits (ERTC) are being processed for eligible business owners who have been waiting on these refunds. The IRS says almost 400,000 claims worth $10 billion are being processed for eligible business owners who applied for tax refunds under the Covid-era program.

​“Our industry's unsung heroes are the passionate people who redefine hospitality every day,” said Jason Brandt, President & CEO of the Oregon Restaurant & Lodging Association. “These recipients exemplify the dedication and excellence that inspire us all.”

Katherine Lam, President & CEO of Bambuza Hospitality Group, is a successful entrepreneur with an unstoppable vision that has driven the growth of Bambuza Hospitality Group to 13 concepts and 5 brands in 4 states. She has also made it part of her mission to help empower young women entering the industry. As a woman of color and business owner, Katherine sets a beautiful example for her daughters as well as the next generation looking to find success in hospitality. 

Eli Ramirez, Regional Hotel Manager for Escape Lodging, first started at The Ocean Lodge in the housekeeping department 18 years ago. Quickly advancing to supervisor, then to the Front Desk, and the Assistant General Manager position, he took the helm as General Manager of the hotel in 2020. Now as Regional Hotel Manager for Escape Lodging, Eli looks back at his experiences with a unique perspective and compassion for his team, as well as a comprehensive understanding of business operations. 

Pamela Hansen, Newport Area HR Manager for Hallmark Inns & Resorts, oversees HR for 252 employees and accounting activities for four high-volume properties. She makes it her mission to meet with every one of the employees and ensure their needs are heard. Pamela not only serves as a beacon of information for staff but also a valuable resource for her employers. She embodies the company’s core values by emanating kindness and respect, and she constantly looks for ways to support her team. 

Sandra Reyes, Guest Services Agent for the SaltLine Hotel, makes first impressions as memorable, genuine, and welcoming as possible with every guest that walks in the lobby. Originally from Hawaii, it’s in Sandra's nature to share the “spirit of aloha” with every encounter. Sandra is frequently mentioned in guest reviews for “going above and beyond” and making their stays both wonderful and memorable.  

Paul Paz, Trainer and Founder of WaitersWorld, has a true passion for the restaurant industry. Over his 45 years as a restaurant server, he has not only raised the bar for excellence in service, but he has been a tireless champion for hospitality. He spends countless hours training industry members in customer service, providing them with foundational skills to be successful. He also dedicates time to engage with high schools, share his career journey in the classroom, and inspire our future workforce.

Willamette Valley Vineyards is recognized as an organization that has made innovative contributions to support and grow Oregon’s hospitality industry and also leads the way in providing exceptional guest experiences. Willamette's CEO, Jim Bernau, has long been an advocate for the wine and food industries, helping shape public policy by highlighting hospitality and tourism organizations as foundational to our communities by providing thousands of jobs.

Nominated by their peers, these award recipients were recognized in front of over 300 delegates at the ORLA Hospitality Conference, September 22-23, held at the Riverhouse Lodge in Bend, Oregon.

Watch the videos for each award recipient on ORLA’s YouTube channel.  For more information on the ORLA Hospitality Awards, visit www.Oregonrla.org/nominate. To learn more about the Oregon Restaurant & Lodging Association, visit www.Oregonrla.org. 

ABOUT ORLA
​
ORLA is the leading business association for the foodservice and lodging industry in Oregon. A not-for-profit trade organization, ORLA represents over 3,000 member units and advocates for over 10,000 foodservice locations and over 2,400 lodging establishments in Oregon. The hospitality industry is the second largest business sector behind healthcare. In 2023, our industry provided over 179,223 jobs to working Oregonians and brought in over $14 billion in annual sales for Oregon.

PRESENT REALITY

Do you remember the first time you went out to dinner? The first meal you had in a public space when you were young? The first booth you sat in, the first menu you looked at, or the first time you were asked if you’d saved room for dessert? Most people don’t. And most of us don’t because eating at restaurants is such a normal part of our lives. Maybe it’s once a month, maybe it’s a few times a week, but we all go out and enjoy our favorite dishes at our favorite spots as often as is desired and financially reasonable. It’s ingrained in the way we live, the way we were raised. It’s ingrained in our culture to the point that we assume we’ll be able to do it tomorrow. We take the experience, and the ability to enjoy that experience, for granted. And eating where we like, at the times that we like, with the people that we like, as a concept, is heading at a medium speed towards an immovable object – the increased cost of everything.

My name is Joseph Hollcraft, and I’m a business broker at International Business Associates. I focus on the hospitality industry in Oregon, I’m an allied member of ORLA, and, along with every member of the firm I’m affiliated with, I am an expert at determining the market values of privately held companies, family-owned businesses, and affiliated commercial real estate. As IBA’s lead intermediary in the hospitality industry in Oregon, I screen every food and beverage industry lead that comes into our Oregon office.  Historically, IBA as a selective business brokerage firm, took on as clients 1 in 3 hospitality industry business owners who approached us for representation. The reasons for passing on projects in the past have ranged from “foggy” financial records to unrealistic expectations on value. The number of restaurants or bars, post-pandemic, that I’ve found to be marketable enough to take on as a representation project has been significantly reduced from this 33 percent.  My most recent transaction was Saburo’s Sushi House, a business I helped Saburo and Joyce Nakajima successfully sell earlier this year.

IBA has a reputation in the marketplace for representing businesses that are doing well where people are executing on their vision, doing what they enjoy, and making money.  These entrepreneurs don’t need to sell, they want to sell when they call IBA. The number of people who are calling me in this position in 2024 is greatly diminished. This fact, and my concern for the industry at large, is what motivated me to write this article.

Keeping active recognizance on the hospitality industry, I have had serious, thoughtful, heartstring tugging discussions with the owners of enough businesses in this sector to see the writing on the wall: the restaurant and bar model that transformed Portland into a food mecca is no longer a highly profitable way to make a living. This opinion is backed up by industry experts, the firsthand reports of restaurateurs, and math. There is no getting around the fact that as the prices of labor and cost of goods increase, while the buying power of patrons remains stable, profit percentages for business owners will inevitably decline.

First, let’s look at labor costs. In 2020, the minimum wage in Oregon was $12.00. As of July 1, 2024, the minimum wage in Oregon is $14.70. Servers, bartenders, expediters, and hosts traditionally are paid at that minimum wage rate. Few people can live on minimum wage, so all of these front-of-house jobs traditionally rely on tips to make up the difference between minimum wage living and the middle class. A server at a restaurant with an average plate cost of $14 and two drinks that average out to about $16, with an average seating of three people per table, and turning four tables an hour, makes, with tips, about $54 an hour after a 40 percent tip out. This assumes an average tip rate of 18 percent and includes the current minimum wage.

When the minimum wage was at $12.00, the hourly wage of the server above was about $51. But to the restaurant owner, the move from $12.00 per hour to $14.70 per hour was a 22.5 percent increase in the base cost of labor. This is before an employer’s contribution to local, state, and federal taxing authorities that are based on the wages of their employees. Assuming that labor initially accounted for 30 percent of total expenses, this extra $2.70 per hour per employee leads to a 6.75 percent decrease in the bottom line. In many cases, restaurants pre-pandemic were operating on a profit margin of 6 to 15 percent. Current day, and assuming these numbers, that brings the net profit to ownership to between -.5 and 8.5 percent. This explains why I and others that participate in the restaurant industry are starting to see closure after closure of businesses using a model that worked well five years ago, or short staffing with increased ownership/family participation to just get by.

Let me ask you a question: if you knew going into it that you would be managing your business 60 hours a week, dealing with the intense responsibility of some large number of employees and customers scrutinizing and relying on your decisions, experiencing the stress that is inexorably imbued in business ownership, and for this would earn a profit between 0 and 8.5 percent, would you move forward with the investment of your personal capital or take out a loan that would use your home as collateral?  Because this is where the momentum towards that immovable object comes from – the vast majority of restaurant startups and acquisitions rely on SBA lending.

The SBA, or Small Business Administration, is a federal government agency that guarantees loans made for the purposes of starting, enhancing, or purchasing a business. The SBA establishes rules and guidelines, but it does not, itself, give out loans. Instead, it guarantees a significant percentage of a loan given out by a lender. SBA lenders must follow SBA guidelines to get their loan guarantees. But they are on the hook for the percentage not guaranteed which leads them to be thoughtful about who they lend to. They look at experience, personal financial strength, the assets of the borrower, the assets and history of the existing business (If an acquisition loan), and the borrower’s business plan and industry to determine whether the risk associated with making the loan makes sense.

During the first phases of the pandemic, restaurants were going out of business at a terrifying pace. Lenders noticed this and almost all of them stopped offering SBA loans to people trying to open or buy restaurants. This was the result of what had become, in the opinions of the underwriters at these lending institutions, too big of a risk. 

Restaurants go out of business all the time. There is a natural life cycle to most businesses in most industries, restaurants aren’t an exception. As restaurants naturally come to their end-of-service, it’s almost always been the case that the SBA has been there, ready to fill that vacant kitchen with a new tenant. But now we have to ask the question the lenders will be asking – if the average profit margin of an industry is 0 to 8.5 percent, can that profit margin have room in it for both a business owner to make a living and the debt from a loan to be serviced? When the industry is the mid-priced mom and pop bar or restaurant, the answer will be the sound of our collective dining experience making firm contact with that immovable object. 

As these restaurants go through their natural life cycle and eventually close, and as that profit margin continues to shrink as the result of increases in the cost of labor (and we’ve yet to mention the increases in cost of goods, which have also risen dramatically post-pandemic), lenders may begin to see restaurant loans as more and more risky yet again and elect not to fund SBA loans for restaurant acquisitions and new food service start-ups. As the increases in costs we’re currently seeing have no buffers in place, it is not a question of if but of when. And if lending begins to dry up, the only fundable business models will be ones with very high costs to customers, or a very low cost of labor. Fine dining, counter service, or food trucks. Take your pick, but they may soon be the only options. The era of the successful, mid-market mom and pop restaurant in Oregon may too quickly be coming to an end.
 
THE NEW PATH

When the obstacles are insurmountable, and the road behind you doesn’t offer a safe retreat, what course of action is left to you? It’s time for the restaurant and bar industry in Oregon to forge a new path. I’ve laid out the situation business owners in this sector face. The following is a series of possible, tested solutions. 

Increasing Value – The Shortest Line Between Two Points 
Business valuation is a sophisticated, nuanced process. It is primarily based on cash flow over the previous 12-18 months, but many factors come into play. There’s an art to it, a subjective science based on experience, industry research and knowledge. But there are consistent rules, the most basic of which is that the more money an owner makes, either through write-offs like non-reoccurring depreciation expenses, direct W-2 wages, or personal discretionary expenditures run through the business, the more money the business is worth.

To that end, my first piece of advice is this: get shift hours off the floor. Whether you do this by taking shifts yourself, passing them off to the salaried employees, or reducing worker hours directly, a small daily reduction can lead to a substantial amount of value at time of sale.

This is in large part because business valuation uses a multiplier. A multiplier is a number, usually between two and six, that the net proceeds to ownership are set against. If your multiplier was three to four, and you made $250,000 (excluding your labor contribution at a fair market rate) in the past 12 months, then that would put your business’s value between $750,000 - $1 million. Taking this to the practical level, if you remove six hours of shift a day from the floor, and let’s say you’re open 300 days a year, and further that each of those six hours is worth minimum wage + $1.30 in costs like workers’ comp and payroll tax, then those six hours a day add up to $28,800 annually. At a multiple of 3.5, this change in your business model adds up to $100,800 in additional value at time of sale. If you choose not to sell, that $28,800 goes to your coffers to do with as you wish.
 
Reducing labor costs isn’t a new invention. It’s generally a thing done with some degree of pain, especially for a small mom and pop that has strong relationships with their employees. The reality though is that if the restaurant or bar you own or manage goes out of business then everyone loses their job. This is the type of hard call that, in my experience, separates the talented entrepreneurs from the passionate hobbyists. I’ve had conversations with something approaching 100 business owners in the last four years. The thing that distinguishes the average from the good, and the good from the great, is their ability to see the landscape their business operates in with clarity and then make the right decision, regardless of how hard that decision is. I’m a resource available to anyone reading this should you wish for an analysis of your business and a conversation around ways to increase profitability.

The Service Fee Model
There is a restaurant on the East side of Portland, just off the main thoroughfare of Morrison and close to downtown, called Kachka. Established in 2013, they’ve been through the boom and the bust of the Portland restaurant scene. During the most worrisome parts of the pandemic, when customer-facing brick and mortar businesses were closed or, in the case of restaurants, take out only, Israel and Bonnie Morales, the owners at Kachka, made a hard call. They eliminated tipping at their restaurant and instituted a service fee of 22 percent. This service fee goes directly to the top line of Kachka’s books as income and brings with it both benefits and challenges.

The decision to move to a service fee model wasn’t taken lightly. Israel and Bonnie reviewed models and found that, given the options in front of them, a service fee model was not only the most likely path to success but potentially the only one. In a series of meetings with management and the staff, they began instituting their plan. They understood the importance of staff buy-in. To that end, the first move ownership made was to increase the wage of their management team. 

Traditionally, restaurant management is salaried and makes far less than the front-of-house employees they’re tasked with supervising. This is an upside down model that Israel and Bonnie thought should change. Restaurant management is often responsible for everything from ordering, scheduling, inventory, to filling in shifts when needed. For them to be compensated at a rate approaching 50 percent of the staff they manage just doesn’t make sense. This generally isn’t the case in any other industry. 

With this first change a couple of things happened. The first was that management’s standard of living rose. Some were able to buy houses for the first time, and they were all more satisfied at work. That bred a loyalty to the company that lent itself to bringing the rest of the staff on board with the new model. Additionally, a path of upward mobility opened up for the general staff. In the old model, a server would take a financial hit should they choose to take their skill and experience to the next level in the corporate structure. Now, getting promoted to management has position, experience, and financial benefit. This brings a sense of “top down” order that most restaurants currently lack.

The next step was to increase the benefits package to Kachka’s employees. Israel and Bonnie reduced the minimum number of weekly hours necessary to qualify for healthcare from 30 to 17.5, with 17.5 being the legal Federal minimum. “Healthcare is a human right,” says Israel. There is new PTO and vacation pay for management, as well as the ability for all staff to use their state mandated sick leave as flex pay. Twice a year, the management team opens the books at an all-hands meeting, discusses the profitability for the period, and, if profit is substantial enough, hands out profit share checks to vested employees at all staff levels. Imagine being an 18 year old dishwasher making $25 an hour and being given profit share, flex leave, healthcare, and having a clear path of upward mobility. This is not how restaurants are done, but, as Israel and Bonnie are proving, it can be.

The challenges, though, are substantial. With the removal of tipping in lieu of a service fee, the wage paid to staff had to go up. Way up. That brings with it ancillary costs. Workers’ compensation insurance, for example, is based on total payroll. When your payroll doubles, so does your workers’ comp bill. Employer contribution to taxation at the local, state, and federal level all went up as well. And they lost the tip credit that every business with tipped employees benefits from. 

Changing to the service fee model has benefits to staff and the business, as well as hurdles that need to be effectively navigated. But there is a third component to the switch to a service fee model: public opinion. There have been restaurants that have tried this and been met with backlash, not just from their employees, but from the general public. A perception exists in some parts of Oregon that businesses and their owners are perpetually wrong-headed and anything other than total loyalty and commitment to the quality of life for employees is incorrect. This perception, while false, is potentially an issue any owner switching to a service fee model will have to take into consideration. Judging by the experience of Kachka, management buy-in can help tremendously, but that won’t stop the public from potentially attacking a business on social media. The final component of the successful, broad market move to a service fee, should that be where the future takes the industry, is political action in the public sphere. Should the task towards service fees be taken up by restaurant and bar owners as a whole, it will become incumbent on those with influence in the public sphere to spearhead a campaign that makes the realities around this move crystal clear: if something doesn’t change, a way of life we’ve all enjoyed since childhood will simply go away.

Looking Forward – Positioning A New Restaurant At The Outset
Aaron and Jessica Grimmer, long time Portland residents and the former owners of seven different food and beverage businesses are opening their latest endeavor in a post-pandemic landscape fraught with challenges. Their two most recent businesses, Picnic House and Bar Low, both fell victim to the changes in the downtown landscape during lockdown and immediately after. Formerly located across from the Arlene Schnitzer Concert Hall, they were a huge hit with the pre-show crowd, as well as with daily patrons from the surrounding office buildings. 

Their new endeavor is named “High Noon.” The concept is simple – deliver high-quality food in a high-quality atmosphere while not alienating customers based on price, dress code, or a haughty attitude. “What made Picnic House and our other projects so successful was that we priced them to be elevated, but not unreachable. We would rather our guests visit us regularly as opposed to only for special occasions. That being said, we do need to maximize our PPA (per-person average) and the value of each seat for each turn. Our menu will reflect a high value to guests as well as highest return on investment.” 

“On the COGS side, it’s really important to construct a menu that relies upon ingredients that are price stable and seasonally available,” said Aaron on the topic of cost management. “We all know food prices have gone up, but a big challenge for restaurants is actually unpredictable fluctuations in pricing. With properly planned menus and using technology such as MarginEdge (an app that monitors your COGS), we won’t be caught off guard with suddenly shrinking margins or having to scramble for ingredients that are hard to find.”

Aaron and Jessica also believe in a holistic approach to management. They involve their staff at the base level to ensure higher quality control and buy-in towards cost savings: “We see value in teaching our team the importance of cost management. We found when we get staff engaged and invested in the menu construction process, they’re more likely to be more pro-active when it comes to managing waste and keeping COGS within a healthy margin.”

Experienced labor, the kind that Aaron and Jessica insist on, comes with a cost. “As far as labor goes, Oregon (and Portland especially) has a lot of challenges when it comes to keeping labor costs in check. We remember feeling the labor pinch back before COVID and the environment has only become more challenging since then. And we can’t just directly pass these costs on to our customers in the form of higher prices. We have to be more creative.”

One interesting idea to enhance take home pay for food service workers being floated by both Presidential candidates, as well as Oregon’s state government, is to eliminate income taxes on tips.  The devil will be in the details of the final bill(s), but they would hypothetically result in more take home dollars for low- and middle-class workers and create an incentive to enter the food service profession.  The most important takeaway is that from main street to Washington DC, people are talking about wages and benefits for food service industry workers. 

When you have a plan, make sure you have a back-up plan as well. “We’re also considering other ways to make the numbers work. Some restaurants in town have gone to a service charge model in order to cover labor costs and create a more balanced wage distribution between front and back of house. While we’ve yet to decide if that’s the right path for us, our goals are to create a unique and quality guest experience, pay our staff a fair and living wage, and be financially successful. This is the biggest (even existential) challenge our industry is facing right now and we’re all working together to find innovative solutions.”

There is no “right” way. There is no one path. That immovable object isn’t going anywhere and if you, as a food and beverage industry business owner or employee, can make it through to next year, and the year after, and the year after that then you should be lauded for your successes and rewarded with appropriate financial compensation. But the old way isn’t working anymore. Restaurants more than any other type of business are bastions of culture and inclusion. They allow us to experience the flavors and traditions of the entire world simply by showing up and sitting down. We can’t, we can’t, we can’t lose those experiences or deprive them from the future. It’s incumbent on all of us to support, encourage, and preserve this way of life. | Joseph Hollcraft

ORLA has initiated inquiries with the Coos County Health Department and the Oregon Health Authority regarding complaints from restaurants in the North Bend/Coos Bay area about food trucks not complying with current county and state health code regulations.

After hearing from restaurant operators on the southern coast about possible infractions by food cart operators, ORLA reached out to local elected officials, the Coos County Health Department and the Oregon Health Authority to find out more about enforcement of the health code.  Specifically, there were questions around the proper storage of frozen foods off-site.

According to Oregon law, a food truck must operate from a licensed kitchen or commissary unless the food truck is fully self-contained.

Mobile food units must operate from a base of operation or be fully self-contained. The regulatory authority will determine whether self-contained mobile food units can operate without a base of operation. To do so, the units must contain all the equipment and utensils that a commissary would provide. A mobile food unit may not serve as a commissary for another mobile food unit.

In addition, any storage must either be in the unit itself or at a licensed kitchen or commissary.

Auxiliary storage shall be limited to an amount that can be used in a day's operation and stored in such a manner as to prevent contamination or infestation (water-tight covered containers). At the end of the day, items must be placed in the unit or a licensed warehouse. No self-service, assembly or preparation activities may occur from the auxiliary storage container. Refrigerators and freezers may not be placed outside the unit and must be in the unit or in a licensed warehouse. Handling of unpackaged foods, dishwashing and ice making are prohibited in a warehouse.

Find the complete mobile food unit operation guide here.

ORLA will continue to work with local and state health officials to ensure compliance and enforcement of current laws and will lead the discussion around any new laws needing to be considered for the public’s safety and well-being.

If you have questions or concerns about issues impacting your operation and/or community, please reach out to Greg Astley, Director of Government Affairs.

Culinary tourism is alive and well in Oregon, from the Willamette Valley winery tasting rooms, to the Hood River Fruit Loop, and the seafood offerings at the Oregon Coast. And don’t forget the many events, festivals, farmers markets, and more that engage visitors in an experiential celebration of place and taste. The agricultural bounty here lends itself to the production of world-class food and drink which can be enjoyed in each of Oregon’s seven tourism regions. 

Whether you work in foodservice already, or engage in hospitality and tourism in other ways, you probably know many food lovers at heart, actively seeking that next mouthwatering bite. When it comes to dairy foods, there are no shortage of delicious experiences to enjoy throughout the year. Here in Oregon, we are proud to be home to over 140 Grade A dairies, 4 sustainability award winners and a number and creameries, cheesemakers and processors who are recognized nationally and internationally for their award-winning products.

Where to start? Start right here in Portland and start NOW!

September is Oregon Cheese Month!
Oregon Cheese Month is a celebration of our state’s artisan cheesemakers and their wares at retailers, cheese shops, restaurants, and farmers markets around the state during the month of September. Look for the Oregon Cheese logo to find delicious local handcrafted cheeses. 

The month is capped this year by The Wedge, a Portland area farmers market-style festival celebrating cheese and everything that goes with it, where event goers can sample and purchase local artisan cheese, specialty foods, wine, spirits, and cider. This year’s event is open to cheese lovers 21 and older.

• Where: Alder Block, home of the Portland Night Market, 100 SE Alder St., Portland 97214. This is an indoor and outdoor event and will be held rain or shine!
• When: Saturday, September 28th, 2024, 12pm – 5pm (VIP early entry at 10:30am).  
• Tickets: https://thewedgeportland.com/​

​Labor Day occurs on the first Monday in September as a national holiday. Labor Day has a long history of how it came to be a symbol of labor rights and freedom, all thanks to the workers of the past.

Labor Day was not always acknowledged as an official federal holiday. Originally, it celebrated the earlier labor classes and by only individual activists and states. The first celebration was in 1882, and it was organized by the Central Labor Union.

Back then, the average worker was not always appreciated for their work. In fact, they were often exploited for their labor to industrialize the country. Many people, especially immigrants and women, were overworked and underpaid. It took many years of activists fighting for labor rights before the exploitation of workers, including forced child labor, started to be taken more seriously.

The hospitality and restaurant industry had an immense impact in fighting for labor rights. Because of how vulnerable the industry is to exploitation, workers in service industry jobs advocated for better working conditions and fair wages. In 1935, The National Labor Relations Act was signed to allow the organizing of workers, strikes, and collective bargaining.

Although the history of labor rights was long and difficult, these effects that working conditions had on the average worker were the key to eventually creating more laws and regulations to ensure that labor would not be undervalued again.

Congress eventually passed an act on June 28, 1984, marking the first Monday in September as a national holiday known as Labor Day. The activism of workers of the past was immensely impactful on the rights the modern-day workers have today. The changes they fought for have resulted in better working conditions, and laws protecting people from labor exploitation.

Even though workers’ rights have considerably improved over the last 130 years, we still see forced labor and exploitation through the crime of labor trafficking today. The hospitality industry can help prevent all forms of human trafficking, including sex trafficking and labor trafficking, by training employees with BEST’s Inhospitable to Human Trafficking training. This training is free for all ORLA members, and Labor Day can be a good reminder to train employees in September to ensure all hospitality staff are current in their human trafficking prevention certification. | Audrey Young

Audrey Young is the development and communications coordinator for the nonprofit, Businesses Ending Slavery and Trafficking (BEST). For more information about BEST, visit www.bestalliance.org.

National Hill Runners Help Amplify Oregon Hospitality Voices

Oregon’s hospitality industry is brimming with passionate, engaged professionals who understand the importance of cultivating a healthy industry to “lift all boats.” They value industry strength over individual success and know that by advocating together, they can have a stronger voice. 

We have a small but mighty contingent of ORLA members serving as “Hill Runners” serving at the federal level through a collaboration between the Oregon Restaurant & Lodging Association (ORLA) and the National Restaurant Association (NRA). Over 192 operators in 38 states serve as National Hill Runners, seven of which are from Oregon. This grassroots initiative provides an opportunity for operators to meet with members of Congress and develop one-on-one relationships for lawmakers to hear and understand the impact of legislation on the restaurant and lodging industry. 

Five of the seven Oregon’s National Hill Runners spent a few days in Washington, DC this past May along with ORLA’s government affairs team to meet with congressional members at the capitol. Their continued engagement is helping influence policy decisions and create a more favorable environment for our industry.

Our Hill Runners include:

• Emma Dye, Crisp 
• Justin Freeman, Bagel Sphere 
• Treva Gambs, Gamberetti’s and G3 Pizzas & Burgers
• Patrick Nofield, Escape Lodging 
• Jerry Scott, Elmer’s Restaurants, Inc.
• Barbara Sidway, Geiser Grand Hotel
• Jim Smith, Mountain Mike’s Pizza and Cascades Coffee House

We asked Oregon’s Hill Runners to share their motivations, goals and experiences; here’s what they had to say: 

What motivated you to volunteer as a National Hill Runner? 

Smith: The NRA Hill runner program presents an incredible opportunity to harness our industry expertise to educate and inspire policy makers! While many policymakers have enjoyed the guest experience across various dining venues, from quick-service gems to luxurious five-star establishments, they might not have glimpsed behind the scenes to see how the magic really happens. By cultivating constructive partnerships with policymakers, I'm confident we can drive substantial progress in advancing agenda items that benefit our teams, vendors, and the communities we proudly serve.

Sidway: I already had a relationship with our Congressman Cliff Bentz and both Senators for more than two decades, so it was easy for me to just place that ORLA cap on and speak truth to those powers. 

Nofield: I believe extending our advocacy on a national level supports our efforts locally and might provide credibility with our state legislators. More than ever, the pressure restaurant operators face to turn a profit is significant. From high cost of goods to labor burden and new government regulation and overreach, we need to do what we can individually and collectively to impact positive change in our industry.

Scott: The National Restaurant Association, through Mr. Astley (ORLA’s Director of Government Affairs), asked me to join. I was honored to be in the first group of National Hill Runners.

Dye: I always say that you can't complain about how things are if you're not involved in trying to make it better! 

Gambs: When I was approached to be a hill runner, I felt it was an honor and definitely something that I wanted to be involved in. I love being able to talk with local politicians and being involved in conversations that will make change to our cities and state. My motivation to be involved is to be in the loop when it comes to my restaurants and how they are regulated.  

Freeman: I've had the opportunity to meet members of our Oregon delegation in Washington DC over the years and have always found them to be engaging and kind. I wanted the opportunity to be able to connect with them on a personal level to share the impacts that policy decisions can have on daily life in the restaurant industry in Oregon.

What do you hope to get out of this experience? 

Smith: As I've gained more experience (or let's say, wisdom with age!), I've come to truly appreciate the significance of sharing my knowledge and guiding others on their journeys. It's about empowering those in positions of influence to understand the profound impact they can have on people's lives. This role not only enables me to cultivate a culture of continuous learning but also presents an exciting opportunity for me to glean insights and grow from the expertise of others. 

Sidway: Oh, it's gratifying when you can make a difference for good, generally, but especially for industry comrades. 

Nofield: Further understanding of the National Restaurants Association’s legislative agenda. Becoming better informed and on the forefront regarding national issues and seeking opportunities for a better business environment.

Scott: It is less a matter of what I get out of it and more of what are the possible impacts. I was already visiting the Oregon Congressional delegation in their DC offices, so it made a lot of sense to add the imprimatur of the NRA to the visits. NRA staff are immensely helpful at prepping Hill Runners for Congressional visits.

Dye: Knowledge of what our government is doing and relationships with folks who have the ability to help make changes for the better.  

Gambs: My hope is to build strong and healthy relationships to bring forward our issues, struggles and victories. I want others to know our voice matters and does make a difference. We can make change!

Freeman: I hope to represent our industry well and be a trusted resource for our elected representatives to turn to when they have questions or concerns about the impacts of policy or proposed legislation on restaurant owners, operators and workers.

What issues are you most passionate about? 

Smith: Years ago, I discovered a transformative leadership philosophy known as the service profit chain. At its core, it emphasizes the profound impact of nurturing our teams, who in turn deliver exceptional care to our guests, ultimately driving the financial success crucial for our organization's sustainability. Ensuring the well-being of my team has always been a personal commitment of mine. As a proud member of the ORLA board of directors, I am thrilled about the opportunity to collaborate with industry peers, learning firsthand about the challenges and successes of our teams. Together, we can focus on initiatives that strengthen our workforce and elevate the entire hospitality industry to new heights!

Sidway: Labor rules.

Nofield: How do we help operators that are suffering? How do we limit the burden of government regulation? Specifically supporting HR 7024 "Tax Relief For American Families And Workers Act of 2024."

Scott: That varies over the years. Currently, the issues of focus are addressing the immense costs of credit card fees and reigning in an overreaching NLRB.

Dye: Right now, specifically, credit card processing fees and the monopoly that exists there. In general, I care very much about fostering an environment that enables small businesses to thrive.  

Gambs: My passion is a fair playing field with big business. We both need each other but at times big business can run us down. An example is merchant credit card fees. With only two banks controlling this we have higher rates than other countries. Bringing more competition would drive rates down. We are all in business to make a profit but when the credit cards take a large chunk from us, we suffer. Balance is a key so that we can have a win-win for both sides.  

Freeman: I care about the long-term sustainability of the small, independent operator model. I'd like to continue to advocate for policies and legislation that ensure that these key elements of our local communities are able to compete, persist and thrive economically.

What was most rewarding from your recent visit to DC? 

Smith: I've been absolutely energized by the wealth of knowledge shared by my peers! Witnessing the incredible experience and expertise on display at the NRA Policy Affairs Conference, and then having the honor of walking alongside outstanding Oregon leaders through the halls of Congress, was truly humbling. Hearing our state representatives express their dedication to supporting our industry and ensuring our teams are well cared for was incredibly inspiring. It has ignited a renewed passion within me to strive for even greater impact! 

Scott: While Congressional visits are always worthwhile, I was particularly gratified to see the turnout from ORLA members. It is great that members see the value in engaging directly with their Senators and Representatives.

Dye: Other than the mayors of Portland, Happy Valley and Oregon City, I've actually never met with politicians before. It was so interesting, and I believe they truly heard us and our concerns. It was also awe inspiring to be in some of those historical buildings. Last but not least, it's always so rewarding to connect and bond with fellow restaurateurs, both from close to home as well as across the nation.

Gambs: My trip to Washington DC was amazing, being with restaurateurs from all the states. It was so much fun, educating and inspiring. But the most rewarding part was the one-on-one meetings with our members of congress and their staff. The young interns were truly a glimpse into the future of our politics. They were smart, informed and caring. Their questions and foresight encouraged me and made me feel that we were being heard. I left in awe and with more respect to how we are running the country. 

Freeman: Our elected representatives were all kind and engaged in conversations with our group. I particularly enjoyed meeting the staffers in each office and appreciated the time they spent with us and the interest they showed in learning about the issues that impact us daily as restaurant operators.

What motivates you to be actively engaged / advocating for the industry?

Nofield: That we can potentially impact change and help others by being engaged and having a seat at the table. 

Sidway: You become and stay well informed on emerging issues. For example, I learned about the cage-free eggs issue months before my foodservice provider. And then you can be a part of making a tangible difference. Honestly, I believe that the best lobbying is done by our members, in their facilities. The distractions of DC are absent, and the real nature of our service business is so palpable. 

A common theme we hear from members actively engaged in government affairs is that advocating isn't just about supporting your own business’ interests, it's about helping the entire industry thrive. We want to thank these industry champions for their willingness to intentionally engage in building relationships with their congressional members. Let your voice be heard!

Interested in getting more involved as a hospitality advocate at the state level? Contact us for details at [email protected]. | Lori Little

Connecting and Building a Stronger Industry Together!

The past few months have been a whirlwind of activity at ORLA! We've hosted Regional Meetings and events across the state, creating exciting opportunities for you to connect face-to-face with industry colleagues and leadership.

But our work goes beyond events. Your dedicated ORLA team tirelessly advocates for your business, fosters the next generation of hospitality professionals, and provides valuable resources to support your success.

Together, we're making a difference. We're protecting, improving, and promoting Oregon's vibrant hospitality industry.  Thank you for being a member and fueling our efforts!

Not a member yet? Join us and connect with your industry community. We're here for you!

What You Need to Know About the DOL Overtime Rule
The first increase in the DOL Overtime Final Rule is scheduled to take effect July 1 and increases the salary threshold to determine whether employees are exempt from overtime pay under the Fair Labor Standards Act (FLSA). 

• Provisions include:
  • Standard Salary Threshold Increase: Effective July 1, 2024, the standard salary threshold will increase to $844 per week ($43,888 annually). It will rise again on January 1, 2025, to $1,128 weekly ($58,656 annually).
  • Highly Compensated Employee (HCE) Threshold Increase: The salary threshold for HCEs will be $132,964 annually starting July 1, 2024, and will increase to $151,164 on January 1, 2025.
  • Automatic Updates: Starting July 1, 2027, the earnings thresholds will be automatically updated every three years based on wage data.
• What Operators Should Do Now:
  • Review Job Duties: Ensure employees are correctly classified as exempt or non-exempt based on their job duties. Refer to this DOL fact sheet for guidance on determining exempt status. (See also: Final Rule on Overtime Protections and Small Business Compliance Guide)
  • Review Payroll Records: Identify salaried exempt employees with wages below the new threshold. For these employees, you might consider 1) Raising their salary above the new limit or 2) Changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.
  • Consult Counsel: Consult with an employment attorney licensed in your state to determine how best to comply with the Final Rule and all applicable state and local rules.

Take note, lawsuits including challenges by the Restaurant Law Center are seeking to invalidate and set aside the Final Rule, potentially impacting its implementation.

Resources for Hotels on DOL Overtime Rule:

• AHLA Webinar (recorded video)
• AHLA Webinar Presentation

Understanding Oregon Workforce Diversity
Oregon Hospitality Foundation (OHF) is conducting a survey to understand diversity perceptions within the state's hospitality industry. The initiative aims to improve company culture through workforce dynamics research (read blog). Participation in the ongoing survey is encouraged.

Oregon Hill Runners to Help Drive Policy
ORLA's Hill Runner project is officially underway to recruit and engage 180 ORLA members in building relationships with their respective State Representative or State Senator. ORLA has contracted with Ramsey Cox, an experienced media relations and public affairs consultant to assist us in securing hill runners this fall. Ramsey has worked with ORLA in the past on a few key priorities, such as fighting alcohol tax increases, repealing pandemic restrictions, and protecting energy choice.

Member Benefit: New Wage Reports Available
ORLA members have access to industry intelligence by logging in to the Member Portal. Find updated wage reports with regional breakdowns for Oregon’s 7 tourism regions, inclusive of most job types in restaurant and lodging operations. Once logged in, navigate to the Resource Library.

Two Salem H.S. Teams Place in Top 10 Nationally
Oregon’s top two ProStart teams in the state competed at the National ProStart Invitational end of April in Baltimore. The team from McNary High School placed sixth out of 48 teams in the culinary competition and Salem’s CTEC team (pictured) placed eighth out of 48 teams competing in the restaurant management competition. These teams earned the trip to Nationals by taking top honors at the Oregon Hospitality Foundation’s annual Oregon ProStart Championships in March.

Upcoming Events & Meetings:

• 6/26/24 – ORLA Virtual Meeting for Members
• 7/22/24 – ORLA Open Golf Tournament
• 9/22/24-9/23/24 – ORLA Hospitality Conference 

Looking to get more involved in ORLA activities? Check out our website for details.

For generations, dairy farmers have been developing the leaders of tomorrow through hands-on experiences that require patience, dedication, and a long-term perspective to thrive. The same is true for dairy processors who nurture and educate the next generation of leadership in food manufacturing, taking that farm fresh milk and turning it into cheese, ice cream, yogurt, and other innovative products.
 
People depend on nutritious dairy foods to support their health and well-being, and it’s vital to produce these foods in a responsible way to address the needs of our communities and the planet. According to the Innovation Center for US Dairy, the U.S. Dairy Sustainability Awards recognize dairy farms, businesses and collaborative partnerships for practices that demonstrate outstanding economic, environmental and social benefits; a longstanding commitment to continuous improvement; and a replicable model to inform and inspire others in advancing dairy sustainability leadership. 

Advancing dairy sustainability leadership is of utmost importance to Oregon dairy farmers and processors, and three Oregon dairy farms and businesses have been recognized in recent years for their commitment in this area with U.S. Dairy Sustainability Awards. These are their stories.
​

Rogue Creamery, Central Point, OR
2021 Winner for Outstanding Dairy Processing & Manufacturing Sustainability
This award commended Rogue Creamery for its commitment to dairy sustainability, including programs for renewable energy and waste reduction, such as solar panel installation, reduced packaging waste, and their employee commuter program.

Rogue Creamery is a USDA certified organic cheese maker located in Central Point, Oregon. For nearly 90 years, Rogue Creamery has drawn from the beauty and flavors of Southern Oregon’s Rogue River Valley to create organic, handcrafted cheeses that have won international acclaim. But creating the world’s best cheese is only part of Rogue’s mission. They know that business – and in their case, cheese – can be used as a force for good. That’s why they became Oregon’s first public benefit corporation, “B Corp” for short, joining a global movement of companies that are committed to making the world a better place. Find out more at www.roguecreamery.com.

Threemile Canyon Farms, Boardman, OR
2020 Winner for Outstanding Dairy Processing & Manufacturing Sustainability
Threemile Canyon Farms was recognized in 2020 with this award for demonstrating how growing crops and milking cows can complement one another in a regenerative, closed-loop system, resulting in little to no waste.
​
Threemile’s Jersey cows and heifer operation are located at the center of the 93,000-acre farm. Practicing precision agriculture, the farm also grows organic blueberries, onions, carrots, potatoes, and corn, as well as a variety of conventional food, feed, and cover crops. Manure from the dairy serves as organic fertilizer for the crops, and the cows consume byproducts from food processing for human consumption that would otherwise go to waste. Modeling creativity, innovation, and efficiency, their efforts to continuously improve farm practices generate positive results for food safety, air and water quality, animal care, and community benefits. Find out more at www.threemilecanyonfarms.com.

Tillamook County Creamery Association, Tillamook Oregon
2018 Winner for Outstanding Community Impact
Tillamook County Creamery Association (TCCA) was recognized in 2018 for working to find the root cause of food insecurity in Oregon and for improving housing access. To address large-scale issues that impact the people and the planet, Tillamook partnered both with the Oregon Food Bank, and CARE, a local agency that serves the at-risk population of Tillamook County and encouraged their farmer-owners and employees to regularly participate in their company’s volunteer program, Tillamook Cares. 

TCCA is a farmer-owned dairy cooperative headquartered in Tillamook County, Oregon. They make and sell dairy products in a wide variety of categories under the "Tillamook" brand name. Since 1909, they’ve been dedicated to making the best cheese with the best ingredients, and today, Tillamook products can be found in homes from coast to coast. Find out more at www.tillamook.com

To learn more about how dairy is ordairy.org/farms/sustainability developing industry leaders in sustainability, visit ordairy.org/farms/sustainability and usdairy.com/sustainability. | Oregon Dairy Council

​Child sex trafficking is a devastating crime that can go unnoticed in the hospitality industry. Traffickers take advantage of the privacy and anonymity provided in hotels to exploit vulnerable people, including children, through commercial sexual exploitation. Human traffickers often operate discreetly, so hotel staff can miss the warning signs of child sex trafficking. And when the victims are children, they often will not ask for help from strangers.

Child sex trafficking happens more frequently than most people realize. So, it’s essential that hotel employees are properly trained in human trafficking awareness to be able to remain diligent and know how to spot a child sex trafficking situation. 

According to the 2021 Federal Human Trafficking Report published by the Human Trafficking Institute, the number of known child sex trafficking cases in the United States increased 17 percent between 2019 to 2020, and children made up over 66 percent of the victims in sex trafficking cases in 2020. Their ages ranged from 4 to 17, but 89 percent of the victims were between the ages of 14 to 17, with the average age being 15. Over 45 percent of these children knew their trafficker before they were exploited.

While any child can become a victim of human trafficking, children who are homeless or runaways, foster care youth, LGBTQIA+ youth, Black or African American youth, Latine youth, and Native American youth are at a higher risk of being targeted by human traffickers. 

The warning signs of child sex trafficking can be apparent in subtle ways in the hotel environment. When hotel employees become aware of the indicators of human trafficking, they can learn how to identify and safely report potential child sex trafficking cases to their managers. Some of the warning signs of child sex trafficking in hotels include the following indicators:

• Absence of luggage
• A person who looks very young but is dressed and behaving like an adult
• Lack of eye contact with hotel staff from the young person
• Evidence of violence, abuse, or intimidation 
• Signs of unusual fear, anxiety, or submission
• Young person is dropped off by an adult who waits in the parking lot
• Young person asks staff for help, food, or money
• Repeated requests for extra towels, linens, or room service 
• Multiple adult guests are seen visiting the room, especially at regular time intervals
• A child expressing fear or discomfort around certain individuals, especially the adults accompanying them, should not be ignored and should prompt intervention

Hotel staff can play a crucial role in combating child sex trafficking within their establishments by being properly trained in how to recognize the signs of human trafficking and how to safely respond to it. This can safeguard more vulnerable children, and it can help recover more children who have been reported missing to the National Center for Missing & Exploited Children. 

The Oregon Hotel & Lodging Association (ORLA) now offers free Inhospitable to Human Trafficking training provided by the nonprofit, Businesses Ending Slavery and Trafficking (BEST). By training front line hospitality staff to be able to identify the signs of human trafficking and providing them with clear protocols on how to report suspected cases, it can ensure a swift and appropriate response, especially when a minor is involved.

Anyone under the age of 18 engaging in a commercial sex act is considered a victim of human trafficking by law, with no exceptions. Observing the behaviors of guests and reporting anything suspicious to hotel management can raise awareness and prompt quick and appropriate action to investigate suspected child sex trafficking cases.

When employees are trained to report potential child sex trafficking to managers, hotels should have a plan in place for how managers report incidents to local law enforcement. Not only is this important for recovering missing and exploited children, but it is essential that hoteliers respond appropriately to protect their liability if a child is being abused on their property. 

By recognizing the warning signs of child sex trafficking in hotels and taking steps to safely report human trafficking, the hospitality industry can help make a big impact in protecting vulnerable children and recovering more human trafficking victims. | Katie Amodei

Katie Amodei is the communications director for the nonprofit, Businesses Ending Slavery and Trafficking (BEST). Their goal is to help employers learn what they can do to make a difference in preventing human trafficking through awareness raising, consultation, training, and providing employment opportunities for survivors.

FOR IMMEDIATE RELEASE
Contact: Lori Little, 503.957.8945      [email protected]

McNary High School and Salem CTEC Took Sixth and Eighth Place Respectively in Culinary and Management Competitions This Week in Baltimore, Maryland

Wilsonville, OR–Oregon Hospitality Foundation’s top two teams from the Oregon ProStart Championships competed at the National ProStart Invitational this past weekend in Baltimore. The team from McNary High School placed sixth out of 48 teams in the culinary competition and Salem’s CTEC team placed eighth out of 48 teams competing in the restaurant management competition.

“The excitement and the energy throughout the national competition has been amazing,” said Courtney Smith, ProStart Manager for the Oregon Hospitality Foundation. “After countless hours of hard work and practice, both students and teachers can reap the rewards of their incredible performance at the invitational. Oregon was well represented!”

McNary’s culinary team prepared a Steelhead Fish Cake, grilled bone-in Carlton Farms pork chop served with green beans atop herbed wild rice and vegetable pilaf, glazed with a pancetta apple chutney, and a decadent Chocolate Mousse with a hazelnut crust and garnished with shaved white chocolate and candied hazelnut spear. CTEC’s restaurant management team presented their creative new concept for a food truck called “Swirly Spuds.” The concept strives to create an experience that “puts a spin on the classic combination of French fries and ice cream.”
 
Hosted by the National Restaurant Association Educational Foundation at the Baltimore Marriott Waterfront on April 26-28, the National ProStart Invitational was a high stakes competition of the country’s best student culinary and restaurant management teams, each of whom earned the right to compete after winning their state-level competitions.
The culinary teams prepared, plated, and presented a three-course dining menu without access to electricity or running water, and using just two butane burners. They were assessed by judges on several factors, including food safety and sanitation, costing, preparation, and plating/presentation. Simultaneously, 48 restaurant management teams presented and defended original restaurant concepts across hour-long interactive Q&A periods with a panel of restaurant and foodservice industry judges. 

The culinary team from the Caesar Rodney High School from Camden, Del., and restaurant management team from Orange County School of the Arts from Santa Ana, Calif., captured the championship titles at the nation’s largest high school culinary and restaurant management contest. Teams from 48 states battled in a weekend-long showdown that featured more than 400 students and a roster of top restaurant and foodservice industry judges. 

The Oregon teams’ travel was provided by the Oregon Hospitality Foundation. Additional sponsors of the Oregon ProStart Championships included Ecolab, US Coast Guard, and McDonald Wholesale.
​
For more information on the Oregon Hospitality Foundation and the ProStart programs it supports, visit OregonRLA.org/foundation and OregonRLA.org/prostart. 

FOR IMMEDIATE RELEASE
Media Contact: Jason Brandt, President & CEO, ORLA, 503.302.5060

Remaining funds present unique opportunities to invest in tourism initiatives

Wilsonville, OR – Salem’s Budget Committee approved a stop-gap solution to fund the library through a Cultural and Tourism Fund, finding access to American Rescue Plan Act (ARPA) dollars outside of any restricted lodging tax revenues. The Oregon Restaurant & Lodging Association (ORLA) confirmed with the City Attorney the ARPA funds will be used as a one-time resource to backfill their library shortfall, a legal move within the rules for those federal dollars.
Coming out of the pandemic, Oregon received $4.262 billion in ARPA funding, with approximately $2.76 billion going to the state and $1.5 billion distributed to Oregon cities and counties. After Salem uses $1.2 million of their ARPA funds to preserve staff and services for the library for a year, it’s anticipated there will still be close to $2 million remaining in the Cultural and Tourism Fund. 

“Having such a robust beginning balance in this fund is a great opportunity for us to assist Salem’s hospitality industry in their ongoing recovery efforts post pandemic while potentially driving new lodging tax revenue for the City in support of future fiscal years,” said Jason Brandt, President & CEO of the Oregon Restaurant & Lodging Association. “This is a strategic moment for the region and city collaborations with Travel Salem, the Salem Area Lodging Association, and the Salem Area Chamber of Commerce should be put in motion to invest in creative tourism programs or initiatives local stakeholders feel can drive new tourism traffic.”

ORLA continues to support and protect tourism funding across the state, ensuring appropriate, strategic investments are made to drive tourism year-round and help build stronger economies. When tourism investments are driven through collaborative efforts involving all stakeholders, everyone benefits. New tourists result in more dollars through visitor spending and lodging taxes, bringing more revenue to local economies. 

For more information on the importance of protecting transient lodging tax revenues, visit the Oregon Restaurant & Lodging Association’s website at OregonRLA.org/tlt. Read more on ORLA’s public policy proposals for how ARPA funds could best be leveraged for Oregon’s tourism and hospitality industries.

About
The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of over 10,220 foodservice locations and 2,000 lodging establishments. As of December 2023, the Oregon Employment Department reports the Leisure and Hospitality workforce totals 208,700 with a total economic impact of over $13.8 billion in annual sales for Oregon.

Guest Blog

Human trafficking is a pervasive issue that often operates under the radar in everyday settings. Despite its prevalence, this crime can be difficult to detect without trained eyes to recognize the signs. This is where everyday heroes, such as hospitality employees, can play a vital role in identifying and reporting suspicious activity that could potentially save lives.

The Role of Everyday Workers
Employees in hotels and restaurants are often on the front lines of human trafficking activity. Traffickers frequently exploit these venues for their illegal operations, using them as a means to exploit victims. This is why it is crucial that hospitality employees to be trained in recognizing the red flags of human trafficking, such as unusual behavior or signs of physical abuse.

Training and Awareness
Businesses Ending Slavery and Trafficking (BEST) is joining forces with the Oregon Restaurant and Lodging Association (ORLA) to provide free human trafficking prevention training for ORLA’s members, with the goal of preventing the exploitation of vulnerable people in Oregon. BEST’s Inhospitable to Human Trafficking training is a 30-minute, video-based, online training available in Spanish and English. It can be taken individually on a computer, or in a group setting, and employees can receive a certificate of completion after taking the course. This free training can be easily accessed through the ORLA membership website. 

Providing training for employees who work directly with the general public on how to identify and respond to potential cases of human trafficking is key to combating this crime. Education and awareness can empower individuals to take action when they suspect something is amiss. By arming employees with the knowledge and resources they need to be able to spot a potential human trafficking situation, it increases the chances of identifying victims so they can get the help they need, and it helps bring traffickers to justice.

Protecting Employees & Guests
When human trafficking happens on business properties, it’s dangerous for victims, employees, and other guests. It can also impact guests’ assessment of the safety of the location and damage brand reputation. Because of ORLA’s commitment to train its members, more human trafficking victims can be identified and connected with the supportive services they need to begin to rebuild their lives after trafficking. This approach to preventing human trafficking is essential, because when employees learn the signs, they can help create a culture where everyone steps up and steps in to make a difference in improving the safety for all guests. 

Conclusion
Front line employees are essential in the fight against human trafficking. By training and empowering more employees across Oregon to be able to recognize the signs of this crime, BEST and ORLA are striving to create a network of vigilant individuals who are committed to protecting the vulnerable. It is imperative that everyone in the hospitality industry helps take some responsibility for combatting human trafficking. By working together, everyday heroes can help create a safer world. | Katie Amodei

Katie Amodei is the Communications Director for the Seattle-based nonprofit, Businesses Ending Slavery and Trafficking (BEST). Their goal is to equip employers to make a difference in the fight against human trafficking through awareness raising, consultation, training, and providing employment opportunities for survivors.

FOR IMMEDIATE RELEASE: April 17, 2024
Media Contact: Jason Brandt, President & CEO, ORLA, 503.302.5060

Mayor proposes dipping into transient lodging tax dollars to fund city’s library

Wilsonville, OR– The Oregon Restaurant & Lodging Association (ORLA) is proactively looking into a proposal by Salem Mayor Chris Hoy to use transient lodging taxes to fund around $1.2 million in the library’s budget. Under his proposal, the city would access lodging tax dollars from Salem’s Cultural and Tourism Fund to cover the shortfall in library operations.

“Each jurisdiction with a transient lodging tax has both restricted and unrestricted parameters for how our industry tax money can be spent,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “The question here is whether the City of Salem has $1.2 million in unrestricted funds from the transient lodging tax to spend however they deem appropriate. If the City uses the portion of industry taxes restricted by state law for tourism, then ORLA will need to take appropriate action against this proposal.”

Reforms passed in the 2003 Oregon Legislative Session established rules for how local governments can spend industry tax dollars. In short, spending on tourism promotion and tourism-related facilities (defined in state statute) was locked in as a percentage of total lodging tax collections on July 1, 2003. And on July 2, 2003, moving forward, any increase in a local lodging tax rate or establishment of a new lodging tax not already in existence must allocate 70 percent of revenues to tourism promotion and tourism-related facilities with the remaining 30 percent serving as unrestricted revenue for the local government to spend however they see fit.

Diverting lodging taxes in support of other local government priorities essentially shortchanges the Oregon hospitality industry’s ability to bring visitor dollars to restaurant, lodging, and retail businesses year-round. Protection of industry tax dollars is a priority for ORLA as we remain focused on embracing shoulder and off-season promotions to entice visitors to local communities across Oregon year-round.

ORLA serves as the industry’s watchdog on lodging tax spending by local governments across Oregon. We produced a helpful video that our industry members and local government stakeholders can review that explains how local lodging taxes must be expended in accordance with Oregon's state law. 

View the Oregon Lodging Tax Defined video and visit the Oregon Restaurant & Lodging Association’s website at OregonRLA.org for more information.

About 
The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which is comprised of over 10,220 foodservice locations and 2,000 lodging establishments. As of December 2023, the Oregon Employment Department reports the Leisure and Hospitality workforce totals 208,700 with a total economic impact of over $13.8 billion in annual sales for Oregon.