​Taran Patel, A-1 Hospitality Group, Honored by Oregon Restaurant & Lodging Association
 
[Wilsonville, OR] – The Oregon Restaurant & Lodging Association (ORLA) will honor five members of Oregon’s foodservice and lodging industry with the prestigious statewide Oregon Hospitality Awards later this month. Taran Patel, Managing Principal for A-1 Hospitality Group and AAHOA Northwest Regional Director, was named the 2023 Lodging Operator of the Year for his outstanding contributions and dedication to serving the hospitality industry and his communities.
 
“Oregon’s hospitality industry is filled with remarkable, passionate people who go above and beyond on a daily basis because they love what they do,” said Jason Brandt, President and CEO of the Oregon Restaurant & Lodging Association. “These recipients represent not only some of our industry’s most dedicated leaders and advocates, but also the exemplary service that sets the high standard for the entire industry to achieve.”

Taran grew up in the hospitality industry, watching his parents grow their business from a 36-room independent motel to a premier hotel property management company with 12 properties in their portfolio. Driven by the American Dream, he learned the meaning of hard work from a young age following in the footsteps of his mentor and father, Vijay. After completing his MBA in 2015, Taran started working in operations and development where he helped cultivate the supportive company culture created by his parents. As Managing Principal, Taran continues to demonstrate strong character and leadership. 

Under his guidance, A-1 Hospitality Group’s hotels not only provided needed support to their communities during the pandemic, but they also continued to stay open to ensure their team members were able to keep their jobs and support their families through difficult times. Taran is recognized by his colleagues as a passionate, hard-working, and engaged industry operator. His contributions extend beyond A-1 Hospitality, as he dedicates his time to several industry boards and organizations. He has not only served as an AAHOA Northwest Ambassador for several years but has now been elected to serve on the Board for the Association as the AAHOA Northwest Regional Director. Taran has also been actively involved with the local Visitor & Convention Bureau, Oregon Restaurant & Lodging Association, and Washington Hospitality Association where he currently serves on the Board of Directors.

"Congratulations to Taran Patel on being recognized as ORLA’s 2023 Lodging Operator of the Year, which is a strong testament to Taran’s unwavering commitment to excellence, dedication to guest satisfaction, and visionary leadership,” said AAHOA President & CEO Laura Lee Blake. “We thank our partners at ORLA for recognizing our industry’s top leaders in Oregon for their groundbreaking achievements in, and dedication to, our industry.” 

Nominated by their peers, these award recipients will be recognized in front of an expected 250 delegates at the ORLA Hospitality Conference, September 30–October 2, held at the Ashland Hills Hotel & Suites in Ashland, Oregon. Joining Taran on the list of award recipients is Demetrio De La O Rendon (Lakeshore Inn) as Employee of the Year, Crystal Brenneman (Dixie Tavern) as Team Leader of the Year, and Lisa Schroeder (Mother’s Bistro & Bar) as Restaurateur of the Year. Risk Strategies Company | Fournier Group will also be recognized as ORLA’s Allied Partner of the Year.

For more information on the ORLA Hospitality Awards, visit www.Oregonrla.org/nominate. To learn more or register for the Hospitality Conference, visit www.ORLAHospitalityConference.com. 

Restaurant and Hotel Industry Members Honored by Oregon Restaurant & Lodging Association

[Wilsonville, OR] – The Oregon Restaurant & Lodging Association (ORLA) will honor five members of Oregon’s foodservice and lodging industry as Oregon Hospitality Award recipients later this month. Demetrio De La O Rendon (Lakeshore Inn) was named Employee of the Year, Crystal Brenneman (Dixie Tavern) was named Team Leader of the Year, Taran Patel (A-1 Hospitality) was named Lodging Operator of the Year, and Lisa Schroeder (Mother’s Bistro & Bar) was named Restaurateur of the Year. Risk Strategies Company | Fournier Group is recognized as ORLA’s Allied Partner of the Year.

​“Oregon’s hospitality industry is filled with remarkable, passionate people who go above and beyond on a daily basis because they love what they do,” says Jason Brandt, President and CEO of the Oregon Restaurant & Lodging Association. “These recipients represent not only some of our industry’s most dedicated team members and advocates, but also the exemplary service that sets the high standard for the entire industry to achieve.”
 
Nominated by their peers, these award recipients will be recognized in front of an expected 250 delegates at the ORLA Hospitality Conference September 30–October 2, held at the Ashland Hills Hotel & Suites in Ashland, Oregon. These statewide awards recognize the outstanding contributions of individuals and businesses serving the hospitality industry and communities throughout the state.

​Demetrio De La O Rendon has worked as the maintenance engineer for the Lakeshore Inn in Lake Oswego the past seven years. His reputation among coworkers as a hardworking and caring employee also transcends to guests who continually praise his work and compliment his helpful nature. There isn’t a task asked of him he isn’t willing to do and he is always first to offer assistance to coworkers and guests whenever he sees a need. With a humble nature, Demetrio is a “favorite coworker” among the entire team and always wears a smile on his face no matter how tough the day’s challenges have been.
 
As manager of the Dixie Tavern in Portland, Crystal Brenneman epitomizes what a dynamic team leader represents with her dedicated service-mentality, passion for hospitality, and guidance as a role model for her colleagues. Before she stepped into her manager role, Crystal learned every position at the tavern, including maintenance. Referred to as “the backbone of Dixie,” Crystal enjoys serving as the unofficial ambassador for the tavern, always making guests feel welcome with her patience and positive energy. Coworkers are galvanized with her daily mantra at the start of every shift, “It’s going to be a great night!” 
 
Taran Patel grew up in the hospitality industry, watching his parents grow their business from a 36-room motel to a premier hotel property management company with 12 properties in A-1 Hospitality Group's portfolio. Driven by the American Dream, he learned the meaning of hard work from a young age. Starting in operations and development, he helped cultivate the supportive company culture created by his parents. Under Taran’s guidance, the hotels not only provided needed support to their communities during the pandemic, they continued to stay open to ensure their team members were able to keep their jobs and support their families through difficult times. He is recognized by his colleagues as a hard-working and engaged industry operator. Taran's contributions extend beyond A-1 Hospitality, as he dedicates his time to several industry boards and organizations, including serving as NW Regional Director on the Board for the Asian American Hotel Owner Association (AAHOA).
 
Executive Chef and Owner of Mother’s Bistro & Bar, Lisa Schroeder has created a Portland institution, providing “better-than-authentic” renditions of traditional home-cooked dishes from recipes derived from real mothers in their own homes. Inspired by her own mother who was a hard-working single mom (and amazing in the kitchen), Lisa’s tenacity and passion for “Mother Food” helped her dream of opening Mother’s Bistro become reality. Lisa also extends a dedicated commitment to help her community by actively participating in charitable causes and civic engagement. Lisa was recently recognized as Oregon Small Business Person of the Year by the U.S. Small Business Administration.
 
Oregon’s hospitality industry is fortunate to have dedicated purveyors focused on providing the best products and services to help operators run a successful business. Risk Strategies Company | Fournier Group is one of those companies that stands out for their exceptional service and innovative contributions to the industry. Through a unique partnership, the association was able to launch the Hospitality Insurance Program (HIP), helping business owners navigate the insurance landscape and providing tools to help them take better control of their business. 
 
For more information on the ORLA Hospitality Awards, visit www.Oregonrla.org/nominate. To learn more or register for the Hospitality Conference, visit www.ORLAHospitalityConference.com. 

Small businesses across the country need thriving associations with competent professional staff who serve as intelligence officers for their respective industries. When the Oregon Restaurant & Lodging Association (ORLA) first came into existence back in 1932 (the two associations merged in 2010), it was clear a unified voice was needed to represent the needs of hospitality businesses across the state. Far too often, elected officials who in many cases serve in a volunteer civic capacity, have little time to become experts on all policy decisions crossing their desk. Imagine a world where elected officials had no organized industry voice to turn to while making policy decisions for their constituents. That world would be rife with unintended consequences and short-sighted decision making.

Although our mission has evolved subtly over time, ORLA remains focused on improving, protecting, and promoting over 10,000 foodservice and 2,500 lodging locations across Oregon. These operations remain in business even after Covid unleashed its ferocious blow on an industry reliant on in person experiences. When considering both openings and closures, we estimate Oregon lost a net of 750 restaurants because of the pandemic, a number much smaller than originally anticipated but still devastating to economic ecosystems across the state.

Of all our existing locations, ORLA currently has a little over 3,000 who have chosen voluntarily to join their statewide association in support of our mission. It is clear the secret is out on Oregon as our population continues to grow with its geographic position between California and Washington. The state benefits greatly from its high qualify of life and diverse topography. You would be hard pressed to find a state with mountain ranges, a world-famous coastline, high deserts, and vast river and lake systems highlighted by the Columbia Gorge. As the state’s population grows so do the opportunities for additional foodservice and lodging pursuits. We are fortunate to have a state association which continues to slowly grow in its size and scope with 16 full time professional staff dedicated to the work.

The hospitality industry here in Oregon is at a crossroads with a growing market of independent small operators determined to provide choice to their guests. The explosion of choice feels like the options we now have when turning on a television. Instead of a handful of channels, we have immediate access to hundreds in addition to what seems like a limitless supply of streaming content. The same dynamics are at play in the hospitality industry. On one hand, lodging brands have greatly expanded to provide more choice for the traveler. On the restaurant side, we continue to see innovative business models emerge including app-based ordering, ping pong bars, and a proliferation of food pods and mobile units. The world looks different when compared to the norm of decades past when the traditional family restaurant dinner was served by the restaurant owners and their staff. 

Online travel agencies (think Expedia and Booking.com) as well as third-party delivery services (like DoorDash and Uber Eats) are creating a highly advanced and complicated environment. Restaurant and lodging establishments have innumerable opportunities to partner with vendors and suppliers in their ultimate goal to make money and provide jobs to others. If an operator is too flippant and not committed to detail, it would be easy to launch a hospitality business without a means for sustaining it. Commission rates for Online Travel Agencies can be considerable for lodging operators and restaurants continue to reel from increasing labor and food costs on top of their own commission payments to third party delivery companies. Too few Americans realize that 95 cents of every dollar they spend in a restaurant goes back into the food, the people, and the place. When you look at the hospitality industry through that lens, one could argue it is one of the more altruistic pursuits an entrepreneur can undertake. Most industries would balk and run the other direction if presented with an average margin of 5% for all their hard work.

The challenges facing operators are real and its our job at ORLA to bring industry transparency to our many elected official relationships. We rely on engaged members to work with our staff to build meaningful, authentic connections with the individuals we elect to office. Without this interplay, there is no connective tissue between the operator struggling to hold onto their limited margin, and the politician looking to raise a new batch of money for their next passion project. Our primary focus at ORLA is building strong working relationships with decision makers in government. By bringing authenticity to the table we are able to lead initiatives to assist our industry in their recovery whether that includes launching legislation allowing a new element to restaurant business models like to-go cocktails, or navigating the legislative system to enact transformative unemployment insurance tax reform for employers. If industry operators need someone to have their back, its our job to be there.

Our expectations for the future center on continued growth and diversification. The Oregon Employment Department projects our industry to be the fastest growing sector through the year 2030. Business models continue to change as operators re-evaluate the labor costs they can afford. With generational change comes the emergence of new trends including the new norm where a customer may not have a server but can still leave a restaurant feeling fulfilled by the high-end food quality and overall experience. Lodging operations are also reinventing themselves with more customized attention to the facilitation of experiences as opposed to the transaction of connecting a guest with a room. We are also starting to see generational change relating to housekeeping services in the wake of climate change with many brands reevaluating protocols for housekeeping services based on the changing perspectives of guests.

Suffice to say a complicated world and a growing array of hospitality options has created an environment whereby the association may now be more relevant than it ever has been. It is our job at ORLA to keep our ear to the ground and stay on top of industry trends and intelligence. It is common for us to share knowledge directly impacting the way an operator makes decisions for their business. It is a true honor to be able to make a real difference in the lives of others. In the association world we have a responsibility to embrace the independence and choice being offered by our members while empowering them to take full advantage of the tools and resources made available to them through their industry associations.

Jason Brandt is the President & CEO of the Oregon Restaurant & Lodging Association. Brandt has served in the role since August 2015 and came to ORLA after serving as the CEO for the Salem Area Chamber of Commerce. Brandt was recently recognized as a recipient of a 40 Under 40 award by the Portland Business Journal for his work representing the hospitality industry during the Coronavirus pandemic.

This editorial was published in Business View Magazine August ​2023 (Volume 10, Issue 8)

​Legislative Session Recap / AAHOA Support for the Foundation / Fire Response Guide

Today is National Hotel Employee Day! Not just today, but every day throughout the year, we express our thanks to all hotel employees – they are the heart of the lodging industry! This year, National Hotel Employee Day comes as hotels across the nation are working to quickly fill nearly 100,000 open hotel jobs. There has never been a better time to join the hospitality industry – with hotels offering current and prospective employees near-historic wages, better benefits, and more flexibility than ever before. Share more about hotel career opportunities in your communities by visiting thehotelindustry.com.

2023 Oregon Legislative Session Recap – The Oregon Legislature adjourned its 160-day session on June 25, 2023. Throughout the session, ORLA’s Government Affairs team focused on several priority bills relating to Oregon's restaurant and lodging industry. View ORLA's recap on the many of the bills we engaged or monitored during the 2023 Oregon Legislative Session.

AAHOA Swings for Foundation Support – The Asian American Hotel Owners Association (AAHOA) held its Northwest Region Charity Golf Tournament on August 14 at the Reserve Vineyard & Golf Club. Since its inception, AAHOA has engaged with local communities by supporting charitable organizations that provide services ranging from education to humanitarian efforts. The Oregon Hospitality Foundation (OHF) was fortunate to be one of the four recipients of the funds raised from this annual tournament this year. We are grateful for the partnership with AAHOA and their shared focus on industry workforce development programs. To learn more about OHF activities, visit OregonRLA.org/workforce blog.
 
ORLA Editorial in National Publication – Earlier this year, Business View Magazine, on online source of news for executives, entrepreneurs, small business owners, and franchisees reached out to ORLA with a request to contribute to their restaurant series. This was an opportunity for ORLA to highlight some of the demographics of our industry, key topics, new developments in the industry, and our role as business advocates. Read ORLA CEO Jason Brandt’s editorial here on page 121: Associations of the Future Must Embrace Independence and Choice.

Best Practice Guide for Fire Response – Always Ready: Fire is the latest in a series of restaurant-specific guides designed to help restaurant owners and operators evaluate their risks and create a fire response plan. This new resource produced by the National Restaurant Association pulls best practices from official sources and restaurant operators including content on risk assessment, insurance, prevention, and communications. Download the guide from the Resource Library available at Restaurant.org. 

Chow Down for Vets! The Portland Kitchen Cabinet is working with Returning Veterans organization again to help engage restaurant operators to participate in the Chow Down for Vets event on November 11. Restaurants will agree to donate a portion of their sales to support local veterans!

Update August 2023:
Although the U.S Department of Labor (USDOL) issued a rule on September 24, 2021 clarifying that managers and supervisors may only keep tips that they receive from customers directly for services that the manager or supervisor directly and “solely” provides, due to increased scrutiny and enforcement by the USDOL, ORLA does not recommend managers and supervisors keep any tips received during service if the establishment has a tip pool system in place.

Because managers and supervisors may set working hours, areas of service, days on or off or other functions related to an employee’s ability to earn tips, to avoid potential lawsuits, fines, penalties or other consequences, ORLA does not recommend managers and supervisors keep any tips received during service if the establishment has a tip pool system in place.

ORLA in the News with U.S. Department of Labor Final Rule on Tip Pooling
A final rule on tip pooling in the United States was recently released on December 22, 2020 and will go into effect across the country on February 20, 2021. The final rule further establishes the legality of overseeing and managing a tip pool that includes staff who do not customarily and regularly receive tips by directly interfacing with a customer. Managers and supervisors are still prohibited from participating in tip pools. The final rule does define further, explaining as follows:
 
“...the final rule defines a manager or supervisor for purposes of section 3(m)(2)(B) as any employee (1) whose primary duty is managing the enterprise or a customarily recognized department or subdivision of the enterprise; (2) who customarily and regularly directs the work of at least two or more other full-time employees or their equivalent; and (3) who has the authority to hire or fire other employees, or whose suggestions and recommendations as to the hiring or firing are given particular weight. The definition also includes as managers or supervisors any individuals who own at least a bona fide 20 percent equity interest in the enterprise in which they are employed and who are actively engaged in its management.”
 
In summary, the final rule simply codifies our collective win advocating for the importance of tip pools. Pages 11 and 12 of the Rule states:
 
“In 2016, a divided Ninth Circuit panel upheld the validity of the 2011 regulations. See Oregon Rest. & Lodging Ass’n (ORLA) v. Perez, 816 F.3d 1080, 1090 (9th Cir. 2016). Although the Ninth Circuit declined en banc review of the decision, ten judges dissented on the ground that the FLSA authorized the Department to address tip pooling and tip retention only when an employer takes a tip credit. The dissent noted that the Ninth Circuit itself had decided in Cumbie that the FLSA ‘clearly and unambiguously permits employers who forgo a tip credit to arrange their tip-pooling affairs however they see fit.’ … In its 2018 response to the petition for a writ of certiorari in the ORLA case, the government explained that the Department had reconsidered its defense of the 2011 regulations in light of the Ninth Circuit’s ten-judge dissent from denial of rehearing in ORLA and the Tenth Circuit’s decision in Marlow … the Department published in December 2017 an NPRM that proposed to rescind the challenged portions of the regulations.”
 
The actual regulation and a summary of the final rule can be found here: https://www.dol.gov/agencies/whd/flsa/tips.

Restaurant Employee Compensation Tools
With tip pooling being legal with back of the house employees, employers may have questions about what their options are. ORLA launched a Restaurant Compensation Solutions Workgroup to review tools being implemented in restaurant operations across the state, including mandatory service charges, tip pooling policies based on sales that assist in compensating kitchen staff, and dual tip lines notating tip options for both servers and kitchen staff. 

Tip pooling policies should be carefully reviewed with counsel before implementation to ensure compliance with all applicable requirements. For more on this subject, click the links below.

• Access the Tip Pooling/Compensation Solutions (ORLA members only; login required)
• Watch on-demand Webinar: Tip Pools and Surcharges (Restaurant Law Center, March 2023)
  
• Read more on Service Charge Guidance  (ORLA, 2019)

Update: December 2019
​A federal spending bill passed in 2018 abolished a 2011 regulation prohibiting tip pooling; managers can now require that servers share tips with kitchen staff in states where employers do not take a tip credit. This change allows tip sharing among both customarily and non-customarily tipped employees in Oregon, including dishwashers and cooks. Managers, supervisors, and owners cannot participate in the tip sharing. A proposed rule to implement the change has been released as of October 7, 2019; comments were due by December 9, 2019. 

One thing this proposed rule seeks to address is that the words “supervisor” and “manager” were not defined in the 2018 spending bill. This is especially important to our industry since many have hybrid approaches to their service positions. Supervisors and managers in some of Oregon’s smallest restaurant operations commonly serve guests and have participated in front-of-the-house tip pools as a part of a team approach to foodservice.

Prior to this change, the decision to participate in a tip pool was left to employees. For more context on the issue, check out Tipping the Scales (Oregon Business, April 2018). The Bureau of Labor and Industries (BOLI) FAQ may answer any additional questions regarding tips at Oregon.gov/BOLI.

Resources/News:

• Tip Regulations under the Fair Labor Standards Act (FLSA), U.S. DOL
• Tip Pooling With Back-Of-House Is IN (in Most States); Manager and Supervisor Tip-Sharing Is OUT, Davis Wright Tremaine, April 2018

For additional questions, contact Greg Astley, Director of Government Affairs, at 503.682.4422.

This is for general informational purposes only. The information is not, and should not be relied upon or regarded as, legal advice. Please consult with your legal advisors.

Guest Blog

The leisure and hospitality industry is one of the largest employer pools in the country, employing over 16 million people nationwide. While a lot of progress has been made in this industry to push the talents of those with disabilities, obstacles still exist. Unfortunately, one of the greatest barriers is employers’ assumptions that people with disabilities may not be able to perform certain tasks due to their conditions. This misconception deprives the industry of great talent while denying countless people the chance to pursue fulfilling work. Here are some tips to learn how you can create opportunities for people with disabilities as an employer.

Know Your Responsibilities as an Employer

The Americans with Disabilities Act (ADA) is crucial to promoting an inclusive and accessible workplace, making it unlawful for employers to discriminate against a qualified individual who has a disability. Ensure all aspects of employment are fully accessible, including recruitment, hiring, and training. As an employer, you must engage in an interactive discussion with your employees or applicants to identify and provide reasonable accommodations, making sure those with disabilities can fully participate in your workplace. Don’t assume a candidate cannot perform the requirements of the job due to their disability. By adhering to the ADA’s requirements, you can ensure compliance with state and federal regulations.

Ensure Accessibility Through the Hiring Process

Ensuring compliance with the ADA also requires that your hiring process is accessible to those with disabilities. Embracing online applications is a pivotal move in this direction. By giving your applicants the option to apply online, you’ll break down physical barriers for candidates. Online applications can be tailored to accommodate various accessibility needs, such as screen readers, magnification tools, and keyboard navigation for individuals with visual impairments or mobility limitations. Keep in mind that your online applicants will probably want a PDF filler instead of having to print, fill out, and scan paper documents. Make your job applications available as fillable PDFs that your applicants can fill out and sign online!

Encourage Professional Advancement

According to JobSkills.org, encouraging your employees with disabilities to pursue professional advancement is a win-win strategy that can unlock the full potential of your team. For example, if you run a large chain with an IT department, empowering your employees to pursue an education in technology can ensure a highly-skilled and diverse IT team. With your support and mentorship, your employees can take steps for an online computer science degree, acquiring skills and knowledge they will bring back to your business. Furthermore, offering such opportunities signals to all employees that the company values their growth and is dedicated to building a workforce that reflects the richness of diverse talents and perspectives. 

Align Roles with Individual Strengths

When you hire someone with a disability, try to align their roles with their unique strengths rather than focusing on the limitations of their disability. For example, individuals with great interpersonal skills may thrive in guest services, front desk positions, or concierge roles. In the realm of housekeeping, employees with physical disabilities can be valuable members of the housekeeping staff, contributing to the maintenance and cleanliness of your establishment. For food and beverage roles, identify specific positions that align with the individual’s abilities, such as hosting, taking orders, preparing food, or bussing tables. 

Be sure to prioritize accessibility across all roles by providing the tools and equipment your staff need to do their jobs effectively. For those with hearing or vision challenges, the right software will ensure these employees can complete work on the computer. By recognizing and leveraging the unique strengths of employees with disabilities, and making reasonable accommodations wherever possible, you can create a diverse work environment with a low barrier to entry.

As the leisure and hospitality industry evolves, so must our approach to creating opportunities for people with disabilities. By increasing accessibility through the hiring process, like making applications available online, encouraging the professional development of our staff, and matching employees with roles in which they will thrive, we can maximize the potential of our workforce while unleashing a range of diverse skills and perspectives. | Martin Block

By definition, a captive audience meeting is a mandatory meeting during working hours. Captive audience meetings are an important tool for employers to explain aspects and implications of unionization (and other issues) that might not be readily apparent to many workers. How these meetings are conducted will differ from workplace to workplace.

In 2009, the Oregon Legislature passed SB 519, prohibiting employers from taking adverse employment action against any employee who declines to attend a meeting or participate in communication concerning an employer's opinion about religious or political matters.

Employers should consider their options accordingly. The Council of State Restaurant Associations produced an issue brief that provides valuable considerations for employers. ORLA members can access this brief in the Resource Library by logging in to OregonRLA.org.

Not an ORLA member yet? Visit our Membership page or reach out the ORLA Regional Representative nearest you.

Payroll Tax Referral / Safety Summit / Charity Golf

Salem Payroll Tax Referral – Oregon Business & Industry (our state Chamber of Commerce) is leading an effort to refer a recent 5-4 payroll tax vote of the Salem City Council to the November ballot. This would tax anyone performing work within the Salem city limits at a rate of .814 percent. ORLA has been engaged in this effort through testimony and volunteer signature gathering for effected members within the Salem City limits. Thus far, over 4,000 signatures have been collected to get the payroll tax on the ballot for voter consideration with a goal of 6,000 by August 9 to allow room for collection errors. We haven’t seen a collection effort that has resulted in this many signatures so quickly and our friends at OBI deserve a lot of credit for their efforts. Engage in this effort by visiting letsalemvote.com.
 
Portland Hotel & Restaurant Safety Summit – Downtown Clean & Safe hosted a Portland Hotel and Restaurant Safety Summit at the Nines last week in partnership with ORLA. About 40-50 hospitality industry members were in attendance and armed with concerns and questions. Speakers represented the Portland Police Bureau, mayor’s office, DA’s office, and Multnomah County. Outcomes include the Portland Metro Chamber (formerly the Portland Business Alliance) and ORLA collaborating on drafting 5-6 specific “asks” from the business/hospitality industry that will be presented to city, county, and state leadership. Read more in our new Portland Advocacy Blog.

AAHOA Charity Golf Tournament – The Asian American Hotel Owners Association (AAHOA) is holding a Charity Golf Tournament coming up on August 14 at the Reserve Vineyard & Golf Club in Aloha. One of the four recipients of the funds raised is the Oregon Hospitality Foundation. If your are interested in supporting the charities and can participate on August 14 please visit the Player and Sponsor registration links. 

​Approximately 20% of all employment along the Oregon coast is in leisure and hospitality jobs, making this one of the largest employer groups in the region. This also makes the hospitality industry one of the most important economic drivers along the coast. 

The Oregon Restaurant & Lodging Association (ORLA) and the Oregon Hospitality Foundation are working with three workforce development boards covering the coast to create a Hospitality Industry Sector Partnership in order to support the industry’s workforce development needs. The proposed partnership aims to strengthen the industry by supporting businesses in understanding how to create an environment in which they become known as a great place to work with competitive pay and benefits, and simultaneously educating the public about the career opportunities available within the industry.

Read more about this effort in the project narrative that outlines the statement of need and projected outcomes.

In tandem to this effort, ORLA's President & CEO Jason Brandt will be joining the Statewide CTE Advisory Board, advocating for improved access to market-driven occupations in our school systems across the state. If you want to learn more about this or if you are interested in becoming more involved, reach out to Jason Brandt.

​Guest Blog | Food Waste Stops with Me

As a food service business, you have the power to create a positive impact in your community by donating your excess edible food to local food banks and pantries. Not only does this provide much-needed nourishment to your hungry neighbors, but it also comes with many benefits for your business. In this blog post, we'll explore the advantages of donating your surplus food and how you can establish a program with the help of local government staff.

Support from Local Government 
Setting up a food donation program is a straightforward process, especially when you have the support of local government staff. They can provide technical assistance with donation dos and don’ts, best practices for success and connect you with food banks and pantries in your area, ensuring that your excess edible food reaches those who need it most. By working together, you engage employees to create a strong network of support that uplifts your neighborhood and builds meaningful connections. 

Liability Protection and Tax Incentives
Potential liability issues are among the leading concerns for businesses considering donating their food. Federal and state laws protect you from liability when you donate food in good faith that you believe to be safe and edible (Bill Emerson Food Donation Act and Oregon Good Samaritan Law). Additionally, your business may be eligible for tax incentives provided by the federal government, further reducing any financial burden and encouraging participation in food rescue programs.

Prevent Waste, Benefit the Environment 
The hospitality industry generates a significant amount of food waste. By taking proactive measures to prevent avoidable waste by donating your excess abundance, you contribute to a healthier environment. Not only can this act of kindness save you money on disposal fees, but it also promotes goodwill for your business. Embracing sustainable practices like sharing extra food and ensuring it is not unnecessarily wasted showcases your commitment to making a difference in your region.

Enhancing Your Reputation and Community Engagement 
Not only is donating food a responsible and compassionate choice, but it also boosts your business's reputation. When your customers see your dedication to giving back, they view your establishment as one that cares about its most vulnerable community members. This supportive act can increase customer loyalty, improve employee satisfaction and influence others in your industry to follow your lead. 

Launch your food donation program today- it’s easy and rewarding! Visit FoodWasteStopsWithMe.org to learn more or to request assistance from a local food waste reduction specialist. 

SHARE YOUR STORY!
Does your business have a successful donation program going? Share your experience to inspire other companies to follow in your footsteps! Click here and submit your Success Story- we can’t wait to hear from you!

Food Waste Stops with Me is a collaboration between Metro, the Oregon Restaurant & Lodging Association, the Oregon Department of Environmental Quality, and city and county governments to help food service businesses reduce food waste.

Oregon has one of the best unemployment insurance (UI) tax systems in the nation. While there are federal requirements all states must follow with their UI trust funds, there is room for state flexibility, and Oregon has taken advantage of this to minimize employer tax rate volatility, protect employers from additional charges, and provide a strong safety net for recessionary times. During strong economic times, the tax schedule increases so we can replenish Oregon’s UI Trust Fund. Once we have strong reserves, the tax schedule drops so employers have lower taxes. Each employer’s individual tax rate is based on the amount of UI benefits their employees receive. 

Also, Oregon’s UI Trust Fund’s reserves earn interest. Over the last 10 years, UI Trust Fund interest added $797 million. That means about 20 percent of the increase in the UI Trust Fund balance in the past 10 years came from interest earned — not employer payroll taxes. Due to Oregon’s self-balancing system, the more interest earned, the more likely we are to have a lower tax schedule. One way to look at it is, with Oregon’s UI tax system, employers only had to pay 80 cents on the dollar for the benefits paid out. During the Great Recession and the COVID-19 pandemic, many states had to borrow money because their UI Trust Funds were not solvent — employers in those states pay more than $1 for each dollar of benefits paid to workers.

Benefits don’t just help laid-off workers. They also support communities and businesses by ensuring that money keeps flowing through the local economy during economic downturns. During the recent Pandemic Recession, Oregon’s UI Trust Fund paid out $859 million in regular UI benefits from April to June 2020 — twice as high as any calendar quarter during the Great Recession. Also, researchers have estimated that every $1 of UI benefits generates about $2 in economic activity in that community. During a recession, this can be a vital support for our economy.

Thanks to Oregon's healthy UI Trust Fund, we did not have to borrow any money during the Pandemic Recession, unlike many other states. Those states also faced borrowing costs, restricted options on policy, and higher federal payroll taxes and surcharges for employers.

While employers in other states saw additional UI taxes and other costs, Oregon has been a careful steward of employers’ tax dollars. With 2021’s House Bill 3389, lawmakers protected employers from increased payroll taxes that might have resulted from the unprecedented number of Oregonians who received UI benefits during the Pandemic Recession and allowed employers to defer or avoid some tax liability. 

In addition to short-term tax relief, HB 3389 extended the look-back period for the fund adequacy percentage ratio from 10 years to 20 years and omitted calendar years 2020 and 2021 from the formula. These changes mean:

• Employers will save around $2 billion in taxes through 2029.
• Businesses get a lower statewide UI tax schedule that collects about 10 percent less overall.
• The UI Trust Fund is better prepar​ed for longer economic cycles.
• The UI Trust Fund remains solvent and maintains benefits to Oregon's workers.

This editorial wss provided by the Oregon Employment Department.

​Building Future Hospitality Leaders / Portland Summit / Whiskey Event / Heat Webinar

ProStart Promotional Video – ORLA and the Oregon Hospitality Foundation have a new promotional video for our ProStart program. We have important work ahead in supporting high school teachers who provide culinary arts and management training for high school students around the state. Our annual ProStart Championships and ProStart curriculum built for each school year provide great opportunities for students and educators to connect with industry operators. You can check out the video here which we’ll use to promote the program in the coming years.
 
Portland Hotel & Restaurant Safety Summit – ORLA in partnership with Downtown Portland Clean & Safe and the City of Portland is pleased to invite our Portland area hotels and restaurants to a “Hotel & Restaurant Safety Summit” Thursday, July 27th from 10 am to noon at The Nines Hotel, 525 SW Morrison Street, Portland, OR, 97204. The goal is to provide our hospitality industry with an overview of current and future public safety plans and strategies from the Portland Police Bureau, the City of Portland, and various private security partners and organizations. Safety for industry staff, patrons, and locations is an ongoing concern and this event will provide networking connections, security-related resources and information to strengthen many existing private-public safety and livability partnerships. To learn more and to RSVP please reach out to Makenzie Marineau on the ORLA staff who oversees Portland government affairs issues for the association. 

Whiskey Event Coming to Portland August 26 – ORLA's Swig & Savor, which offers whisk(e)y lovers an opportunity to try a curated list of beverages from distillers around the world, is back for its second year. The annual event will be Saturday, August 26 from 5:30 to 9:30 p.m. at the Portland Marriott Downtown Waterfront in Portland, Oregon. Tickets are now available starting at $149 per person. The highlight of Swig & Savor is the opportunity to sample whisk(e)ys from top producers in the Northwest and beyond. This includes seven distilleries in Oregon and companies from nine other states and three countries. Distilleries will bring current releases as well as special bottles available only to VIPs. You can purchase tickets today at www.swigandsavor.com. 

Webinar on OR-OSHA Heat Rules – Over the past few months the Northwest Grocery Association team has been working with OR-OSHA and the Governor’s office in an attempt to get clarity about the ‘bakery’ exemption in the Oregon Heat Rules. As you may recall, this ‘exemption’ was meant to exclude temperatures generated from equipment (bakeries, manufacturing, commercial kitchens) from the Heat Rules (new training, mandatory breaks, water, shade etc). However, recent practices and positions by OR-OSHA have now essentially made this exemption moot. The rules took effect last June 15, 2022 and kick in when outside air temperatures reach 80 degrees.
 
In an effort to provide employers greater information and training, OR-OSHA has agreed to staff a webinar on the Heat Rules specific to “Hot Process.” They have also updated the FAQ and Fact Sheet. All employers are welcome to join this webinar, especially HR and Facilities Teams; get the link here.

Legislative Progress / ORLA Testimony / Power Outages / Mergers

Senate Activity Spurs Bill Passage - With the Oregon Senate officially back with a quorum to conduct business, there's been a flurry of activity at the Capitol. All 38 budget bills have passed, with over 30 agency or commission budget bills from the House awaiting Senate action. One important piece of public safety legislation that passed the Senate, SB 337, is a funding bill for increased investments to assist with the backlog of officers awaiting training at the state policy academy. The second bill, SB 5532, is the budget bill for the new commission which also passed the Senate. Read the summary from the Oregon State Bar. ORLA's government affairs team is still engaged on several other bills of importance to the hospitality industry; see the latest bill tracking online.

ORLA Testimony - Throughout the year, your association engages on a number of issues with potential impact on hospitality businesses. Our government affairs team is at the table for important discussions with other business organizations, elected leaders, and agency and government representatives, oftentimes providing testimony on behalf of our members. Here's some recent activity:

• ORLA provided testimony in opposition to the Oregon Lottery's proposed rule changes for the weekly sales requirement and limited availability of machines
• ORLA supports reinforcing the importance of further discussion on an alignment in Paid Family Medical Leave Insurance (PFMLI) and Oregon Family Leave Act (OFLA)
• ORLA signed on to a letter with several other business and industry associations in opposition to HB 3409
• ORLA provided testimony at 2 OLCC Commission meetings in opposition to the proposed surcharge on distilled spirits

Be Smart and Prepare for Power Outages - Oregon is experiencing longer and more intense wildfire seasons than ever before. Which is why businesses need to be prepared for potential wildfire and weather-related events as well as the power outages they may cause. ORLA has curated a list of helpful information and resources that provide preventative steps to help minimize disruption in case of a Public Safety Power Shutoff. From training to refrigeration, there are a number of steps you can proactively take now to prepare your staff and business for potential planned (or unplanned) power shutoffs. 

Webinar on Hospitality Mergers and Acquisitions Marketplace - Take a look into hospitality deal activity trends and what you should be doing now to maximize the value of your business. Join this webinar hosted by ORLA to receive industry insight on the status of the hospitality Mergers and Acquisitions marketplace and trends associated with deal structures and valuation. Industry members will also learn how to position a hospitality business to maximize its value to attract investors and buyers. Additional topics will include planning for owner transitions and succession planning, the process of executing a successful transaction, and how to prepare your business for sale.

One Big Night Success / Lottery Rulemaking / Nominate Your Star Employees

​Huge Support Realized at One Big Night: Last night, ORLA held its annual One Big Night dinner and auction presented by Elmer's and Egg N' Joe, raising crucial funds for the Political Action Committee (ORLAPAC). Close to 200 industry members gathered for a fun evening while helping raise serious money for the PAC. This financial support helps further our mission of electing pro-industry legislators to serve in Salem. During the program, we debuted our new advocacy video highlighting what some of our members are saying about the valuable work we do advocating on behalf of the industry. Watch the video.

Proposed Video Lottery Rule Changes: ORLA held a Lottery Subcommittee meeting last month to talk with retailers about the Oregon Lottery's Rule Changes Proposal and prepare for the Lottery's rulemaking meetings. The Lottery in recent years has faced Video Lottery Terminal (VLT) inventory shortfalls combined with budget constraints and outdated equipment management strategies. This led the Lottery to stop processing applications in 2021, and now is proposing rule changes that include pulling machines from low-producing retailers. ORLA submitted written testimony and encouraged retailers to submit their own comments on the proposed rules. We'll keep you posted on the activity.

Webinar to Help Businesses Optimize Their Google Business Profile: How your business appears online matters. It’s the first thing customers see when they search online. Locl helps you simplify Google Business Profile updates, create posts, engage with customer reviews, monitor business performance and act on insights. ORLA is partnering with Travel Oregon and Locl to provide a webinar on June 14 to show how you can use the Locl platform (for free) to save time, gain valuable insights and drive business. Access the toolkit for more information, and register today for the webinar.

Nominate Your Star Employees: Oregon’s hospitality industry is full of amazing individuals who go above and beyond, raising the bar for excellence in service, performance, and commitment to their team, organization, and the industry. Nominations for the statewide ORLA Hospitality Industry Awards seek to recognize some of these outstanding individuals who truly exemplify Oregon hospitality. In addition to the Employee of the Year, we are also accepting nominations for the Restaurateur of the Year, Lodging Operator of the Year, and new this year a Team Leader of the Year (mid-level employee, supervisor, or director). Be sure to submit your nomination by June 30, 2023.

A recent study by BMI and NRG (National Research Group) confirms that music positively impacts the way consumers interact with local eating and drinking establishments. According to the findings, bars and restaurants that feature live music have customers who eat, drink and spend more when listening to music they enjoy, resulting in higher revenues for many business owners.

Out of the 1,000 nationally represented U.S. consumers (1) surveyed across age demographics 21+, atmosphere and music are a big part of what keeps them returning to the establishments that they frequent. When taking a closer look at the data, specifically the responses of Millennials, music is the second most important feature they consider when selecting a bar or restaurant. In fact, it’s something they actively seek with more than half of respondents reporting that they often check the establishment’s website to see if they have live music before choosing where to go.

Music not only drives consumer traffic, but it also has the potential to increase revenue. The survey found that nearly 80% would stay longer if good music was playing, with close to 60% stating that they would buy more food and drinks to continue listening to music that they enjoy. That stat is even higher for Millennials at 70%.

Other findings show that music makes memories, and it has the potential to make or break the customer experience. Eighty-six percent of all those surveyed said that good music at a bar or restaurant creates a more memorable experience, with 89% of Millennials agreeing. Across the board, the younger generations show that music is an important part of the dining experience, with 84% of Gen Z and Millennials noting they are more likely to stay at a bar or restaurant with good music. If the music isn’t right, however, one out of two patrons said they would leave an establishment.

Live music also has very tangible benefits for consumers and businesses by creating ambiance and bringing people together while helping bars and restaurant owners differentiate themselves from competitors. Eighty-two percent said that their experience is more enjoyable with live music and noted that the type of music played tells a lot about the establishment, including helping to establish its brand. People were also more likely to wait for a table and grab a drink at the bar if live music was playing to keep them entertained with 81% of those surveyed saying they’d wait 20 minutes. That number rose to 87% when you just look at how Millennials responded, and 80% of that demographic would also pay for a two-drink minimum to hear live music.

In addition to consumers, restaurant owners and managers were also interviewed, sharing that they saw a clear boost in revenue on the nights that featured live music. An owner with breweries in Colorado and Utah confirmed that customers stay longer and spend more money when a band or DJ performs, commenting, “check averages tend to go up 5-10% … and revenues have jumped almost 25% on the nights that we have live music.” The owner of a family Italian restaurant in Atlanta, GA agreed, noting, “Without the [live] music we didn’t have the linger time, we would close sometimes at nine o’clock. With the live music, we could push one o’clock in a bedroom community. There were more liquor sales, and that’s a 75% profit margin.”

See infographic below, and for the complete survey, click here.

ProStart Students on Capitol Hill / Legislative Updates / Industry Workshops / Cinco de Mayo

Oregon Represented at National Competition: The National ProStart Invitational wrapped up last night after two days of heated competition among 400 high school students representing 92 teams from 46 states. As Oregon state champions, Crook County and McMinnville high school teams traveled to Washington D.C. this week to compete in the culinary and management competitions, respectively. Oregon Hospitality Foundation's Courtney Smith traveled with the teams as host and to provide support at the events. Following the competition, students on McMinnville's management team met with Senator Jeff Merkley on Capitol Hill to share their restaurant concept and convey how valuable the ProStart program has been in providing training and career exploration in the hospitality industry. Way to go Oregon!

Legislative Bill Deadline: Today is the Post Work Session deadline for all legislative bills. In order for a bill to be heard in committee by second chamber deadline (May 19), it has to be posted on an agenda for work session by May 5. However, this does not apply to Rules, Revenue, or Joint Committees. ORLA’s Government Affairs Committee continues to meet via Zoom every Friday for discussion and updates on legislative activity. If you are interested in joining, please sign up and we'll connect with you before next week's call. You can find the latest bill tracking on our website.

"How I got Started in the Hospitality Industry:" Oregon Hospitality Foundation (OHF) Board member Paul Paz met with culinary students at Salem's CTEC (Career Technical Education Center) to facilitate a hospitality workshop and presentations earlier this week. Management and staff from the Salem Convention Center and Bentley's Grill participated by sharing their career stories and OHF's Lupe Arellano was was on hand to talk about career opportunities within the hospitality industry. This was part of the CTEC Salem-Keizer Learning that WORKS program that helps "prepare high school students for high-skill, high-wage and high-demand careers while developing the professional skills, technical knowledge, academic foundation and real-world experience to assure their success upon graduation."

Whiskey Lovers Take Note: Ticket sales for ORLA's annual Swig & Savor Whiskey Event went on sale today for the August 26 event at the Portland Marriott Downtown Waterfront. Purchase your tickets now and join distillers, master blenders and other enthusiasts to taste a multitude of special whisk(e)y pours from around the world, curated into one spectacular night.

National Small Business Week: Chip Rogers, AHLA President & CEO, released the following statement today marking National Small Business Week: “Six in ten hotels are small businesses, and National Small Business Week is a great opportunity to reflect on the tremendous opportunities hotels are creating for employees and other small companies to grow and thrive,” said AHLA President & CEO Chip Rogers. “Hotels support millions of good-paying jobs and generate billions in state and local tax revenue in communities across the nation. To continue doing so, we’re looking to hire more than 100,000 people around the country. With average hotel wages at near-record levels, better benefits than ever before, and unprecedented opportunity to move up the ranks, there’s never been a better time to start a hotel career.”
 
Background Info:

• There are currently more than 110,000 open hotel jobs nationally, according to Indeed
• National average hotel wages for March 2023 were more than $23 per hour – among the highest they’ve ever been. (Source: BLS, accessed 5/5/23) 
• Average hotel wages (+24%) have risen faster than average wages throughout the general economy (+16%) since the pandemic. (Source: BLS and https://fred.stlouisfed.org/series/CES0500000003, 2/2020-3/2023, accessed 5/5/23) 
• Hotel-generated state and local tax revenue is projected to reach new heights nationally ($46.71 billion) and in states across the nation this year.

Celebrate Cinco de Mayo! Oregon’s Largest Multicultural Festival is back with the Portland Guadalajara Sister City Association (PGSCA) and Treadway Events' 36th annual Portland Cinco de Mayo Fiesta May 5-7th at Tom McCall Waterfront Park in downtown Portland. The PGSCA is a non-profit organization dedicated to creating and strengthening partnerships and fostering goodwill between the City of Portland, and the City of Guadalajara, Jalisco, Mexico, since 1983. 

​Liquor Surcharge / Minimum Wage Increase / Award Nominations / Get Involved

Public Comments Requested on 50-cent Surcharge Increase: OLCC is seeking public comment on a possible increase of the current 50-cent surcharge on each bottle of distilled spirits to one dollar per bottle. The Commissioners will listen to verbal comments on this at the April 20, and May 18, 2023 Commission meetings. ORLA is in alignment with the Oregon Beverage Alliance in opposing this increase and encourages industry members to take action and provide input on how this may impact your business' bottom line. 

Oregon's Minimum Wage Climbs: BOLI announced late last week that Oregon's minimum wage will increase by 70 cents per hour on July 1, 2023. State law requires an adjustment to the minimum wage to be calculated no later than April 30 of each year based on annualized inflation rates, rounded to the nearest 5 cents. The consumer price index climbed 5% from March 2022 to March 2023. The minimum wage rates will increase as follows:

• Standard Minimum Wage: $14.20 per hour
• Portland Metro Minimum Wage: $15.45 per hour
• Non-Urban Minimum Wage: $13.20 per hour

Nominate Your Star Employees: Oregon’s hospitality industry is full of amazing individuals who go above and beyond, raising the bar for excellence in service, performance, and commitment to their team, organization, and the industry. Nominations are now open for the statewide ORLA Hospitality Industry Awards which seek to recognize some of these outstanding individuals who truly exemplify Oregon hospitality. In addition to the Employee of the Year, we are also accepting nominations for the Restaurateur of the Year, Lodging Operator of the Year, and new this year a Team Leader of the Year (mid-level employee, supervisor, or director). Submit nominations by June 30, 2023.

New Oregon Hospitality Foundation Workforce Blog: The Oregon Hospitality Foundation (OHF) is laser focused on workforce development initiatives to do what we can to build bridges between hospitality industry employers and workers seeking employment opportunities. In an effort to keep lines of communication open with all industry operators interested in connecting with future employees for their operations, the Foundation has launched a new Workforce Blog. Follow what's happening in workforce development efforts and reach out to us if you're interested in getting involved.

Travel & Tourism Industry Achievement Awards: Travel Oregon announced the recipients of the Oregon Travel and Tourism Industry Achievement Awards during the 2023 Oregon Governor’s Conference on Tourism at the Oregon Convention Center. Read more about all the awards winners.

ORLA Members -Get Involved in Your Association: The Oregon Restaurant & Lodging Association is multi-faceted with a variety of different opportunities for professional development amongst hospitality professionals, including board and committee service, program participation, and networking. For those looking to get involved in some way in their state association, check out the numerous activities and opportunities for you to get involved and make the most out of your membership. 

[Editorial originally printed in the Spring Issue of the ORLA Magazine]

We heard it time and time again on the road as ORLA staff met with members across the state for our latest round of regional meetings – ‘we don’t have enough staff.’ 

And although we have heard since conditions are slightly improving for some, we still hear more about challenges than triumphs with it comes to recruitment efforts. If it gives you some comfort the hospitality industry is clearly not alone. It has been rare this past year to find an industry content with the number of workers they have to meet consumer demand. The reality is we face more competition for fewer people as industry leaders work to focus on attributes unique to their fields. We recently heard there are roughly six million people still looking for a job in the country and approximately two job openings for each one of those unemployed workers. 

We have unique attributes in hospitality. Especially when it comes to meeting a moment like the one we face today. Those of us serving on Oregon’s Hospitality Foundation Board of Directors would tell you our industry is most likely the largest untapped private sector partner for essential skills development in our youth. In a way, the hospitality industry is primed to serve as a type of antidote to the lost development time triggered by Covid. Whether you stick with our industry as a career or utilize the industry to develop skills and launch into a different field, hospitality remains a valuable partner in preparing our youth for the world of work. 

You would be hard pressed to find someone in your life that doesn’t have stories of how a hospitality job helped shape their identity. What used to be referred to as soft skills by workforce development leaders are now rightfully named essential skills. And these skills, including professional behaviors like personalizing a customer’s experience and exhibiting passion for your role, are taught every day in hospitality businesses. 

The work of ORLA’s Hospitality Foundation is focused on recruiting more high schools to take up culinary and hospitality/tourism management programming for kids. The Foundation, thanks to the work of Executive Coordinator Courtney Smith, is coming off a successful ProStart competition. High Schools with both culinary and management programming have the opportunity every year to compete in the annual Oregon ProStart Championships. 

In addition, ORLA is working to connect lodging and restaurant members with the Oregon Department of Education as they undertake an update to skills standards for high schools with culinary, hospitality, and tourism-oriented classes. Several ORLA members have answered the call to be a part of this important working group. 

And lastly, one of our 16 team members on the ORLA staff works full time to build bridges between educators and industry operators one tourism region at a time. Lupe Arellano is here to help you connect with local high school and community college educators to tell your hospitality story as a guest speaker. We are also elevating opportunities for members to participate in job and career fairs. Both Lupe and Courtney recently attended the NW Youth Careers Expo at the Oregon Convention Center which brought thousands of prospective employees to one event for interested employers. Events like this should be elevated amongst members struggling to find the employees they need to sustain business operations. Lupe’s work is focused along Oregon’s coastline this year with additional focus coming to the Willamette Valley and the Portland Metro region in the next few years in partnership with Travel Oregon. 

If you are experiencing a need for additional employees, I hope you will take a moment to introduce yourself to these key staff. Both Lupe and Courtney are well positioned to help make connections for our members that can help relieve workforce shortage pain points as we work to address the number one challenge facing the industry. | Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association

​Do you enjoy vetting software vendors and doing maintenance on your router? For many hospitality business owners, technology may feel like a pesky inconvenience, particularly when it doesn’t work correctly. And it’s very easy to let tech and cybersecurity fall to the bottom of your to-do list, as you juggle the many day-to-day details of running your establishment. 

Restaurants and Hotels are being targeted! No matter the size of your organization, ransomware and cyberattacks continue to grow. Approximately 80% of attacks result from human error. For many hospitality businesses, tech isn’t a strength and cyber criminals know it. While you’re busy creating great customer experiences, bad actors are looking for entry points to nab credit card data and gain access to your financial accounts. 
 
In February 2023, Kroll IR Spotlight Trends reported the Retail/Restaurant sector is the most impacted industry sector so far in 2023. Email Compromise and Web Compromise were the top threat incident types impacting the retail / restaurant sector. In February, threats against the retail / restaurant sector most often involved CVE / Exploit as the initial access method.

Business email compromise results in six-figure loss 
A restaurateur, building out a kitchen area, ordered several pieces of new equipment. With the grand opening date quickly approaching, the owners were eager to get everything completed on time. This enthusiasm led to haste and caused the CFO to miss warning signs of a cybercrime.  
 
A criminal had accessed the equipment supplier’s ordering system and sent the CFO a message saying a supply chain issue was going to cause a shipment delay. However, there was one piece of equipment available if he was able to pay the same day. The email came from a recognized address, and the CFO jumped on the opportunity. He replied to the message, followed the payment instructions, and ended up sending the funds to a bad actor. Money gone. No equipment.  
 
Cyber safety tips  
Cybersecurity professionals talk about “zero trust.” For hospitality businesses, this means slowing down enough to verify requests. If someone asks for money by email or text message, be skeptical. Verify the request by calling a known contact. And if you can’t verify it, err on the side of caution. Do not send a payment, banking information, or credit card details unless you are certain where the money is going.  
 
Further, examine emails for hints of foul play. Maybe the email address is wrong by one letter, or the time stamp is 2:00 a.m. Be wary if the wording sounds urgent, requesting a quick reply. 

Unfortunately, cyber criminals know this. Bad actors are targeting the hospitality industry in an ever-growing number of ways. Here are some cautionary tales, along with cyber safety tips to protect your business.

Free webinar to bolster your knowledge
Risk Strategies is hosting a free webinar on April 25, "Cybersecurity in Hospitality: Don’t get blindsided." Register today and learn about common cybercrimes in our industry and how to prevent them. | Risk Strategies

​While access to hotel financing has increased since the pandemic, finding the right lender can be difficult. This was the challenge faced by business partners Josh Boone and Tim Glover, who recently purchased Bandon Marina Inn, a beautiful 3,950-square-foot boutique hotel located on the Oregon coastline for $2.16 million. 

When Boone and Glover initially explored financing options, the process was slow and arduous. Local lenders made offers, but none fell within their budget. Fortunately, they discovered TMC Financing’s SBA 504 commercial real estate loan. 

The Small Business Administration's (SBA) 504 Program offers below-market, long-term, fixed-rate financing, to purchase, construct, or refinance hotels with a downpayment as low as 15%. 

“We were midway through our original financing package when we learned about the terms of the SBA 504 loan,” explained Boone.  “When we discovered that we only had to put 15% down, instead of the expected 25%, we happily switched to TMC Financing.” 

With the money they saved, Boone and Glover were able to hire additional staff and prepare the Inn to ensure their guests would enjoy their stay.

Bryce Fennell, who administered the SBA 504 loan on behalf of TMC Financing explains that the SBA 504 loan is the most advantageous financing option for hoteliers.  

“Conventional hotel lenders often require a high down payment,” explained Fennell. “However, the unique structure of the SBA 504 loan allows for a lower down payment and can even help finance hotel construction and renovation costs. The best part is, both franchised and independent hotels qualify for the program.”

Josh Boone and Tim Glover are incredibly thankful that they were able to take advantage of the SBA 504 Program.  
“We wasted a lot of time talking with the wrong banks because we were unfamiliar with the SBA 504 option. I’m glad we made the switch to a 504 loan because purchasing real estate is a big step, a step we wanted to take to create a better tomorrow for our families. The SBA believed in what we were doing, and it really helped us paint a long-term picture for success.”

SBA 504 Financing for Your Hotel Property
By utilizing the SBA 504 Loan Program hoteliers can take advantage of below-market, fixed rate financing for the purchase construction or expansion of commercial real estate including equipment and furnishings. Hotel owners can utilize the SBA 504 refinance loan to lower occupancy costs and access cash trapped in commercial real estate holdings. | TMC Financing
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TMC Financing  is the #1 SBA 504 lender in the nation, contact them today to learn more about an SBA 504 loan for your business.