Recent statements by State Representative Javadi wrongly suggest that the hospitality industry isn’t paying its fair share in taxes and that tourism is a burden on coastal communities. These claims ignore the significant economic contributions of tourism and misrepresent the facts. It’s time to set the record straight.

Tourism Pays Its Fair Share—And Then Some
Tourism-related businesses generate millions in local and state tax revenue annually through property taxes, business taxes, and the Transient Lodging Tax (TLT). These funds directly support infrastructure, emergency services, and community development.

The current 70:30 TLT allocation ensures tourism remains a strong economic driver, benefiting both visitors and residents. Many coastal communities already have flexibility in spending nearly half of their TLT revenue (52% unrestricted), including for public safety. Reducing tourism funding risks unintended consequences—fewer visitors, lower tax revenue, and diminished support for essential services.

The Real Issue Behind Housing Costs
Placing blame on short-term vacation rentals (STVRs) for high housing costs oversimplifies the issue. The real drivers are restrictive zoning laws, limited land availability, and high construction costs. Even eliminating STVRs wouldn’t create enough housing to meet demand or lower costs.

Instead of targeting STVRs, policymakers should focus on workforce housing incentives and streamlined development processes. Meanwhile, STVRs continue to generate tax revenue, support local jobs, and boost small businesses—contributions that shouldn’t be overlooked.

Tourism Is an Economic Engine, Not a Burden
Tourism fuels thousands of jobs and sustains local businesses. While some claim that cities have excess tourism promotion funds, the reality is that these funds help communities remain competitive. Those sitting on TLT dollars should implement strategic plans to drive tourism year-round, ensuring full-time employment and long-term economic benefits.

The idea that our state's natural beauty "markets itself" is misleading. Other destinations actively promote their attractions, and without continued investment in tourism marketing, we risk losing visitors—and revenue—to competing regions.

Public Safety and Infrastructure: Tourism Dollars at Work
Tourism does create demand for public safety services, but TLT revenue already supports these efforts. Law enforcement agencies benefit from these funds, and shifting money away from tourism promotion could ultimately shrink the economic base that funds public services. Sustainable budget management and alternative funding sources, like grants and public-private partnerships, should be explored instead.

A Smarter Path Forward
Tourism is not the problem—it’s a critical pillar of our coastal economy. Rather than jeopardizing a thriving industry, we should focus on strategic, long-term solutions for housing and infrastructure. With thoughtful planning, we can ensure tourism continues to benefit both residents and visitors alike. | Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association

​The hospitality industry is navigating a tough landscape, with restaurant and lodging operators grappling with rising costs, workforce shortages, and evolving consumer expectations. To support businesses in overcoming these challenges, the Oregon Restaurant & Lodging Association (ORLA) is actively advocating for solutions that address key financial and operational pressures. From tackling labor costs and skyrocketing food prices to addressing credit card swipe fees, delivery app charges, and service-related policies, these initiatives are designed to ease burdens and strengthen the industry's future.

Here’s a closer look at the critical issues and the steps being taken to drive meaningful change.

1. LABOR COSTS
Challenge: Rising minimum wages and increased labor costs put financial pressure on restaurants and lodging businesses.

ORLA's Initiatives:

• Protecting statewide pre-emption on local minimum wage increases. Oregon has been surpassed by many local governments outside of our state on the west coast who continue to arbitrarily increase minimum wage rates. This is occurring elsewhere outside of Oregon because of the increasingly difficult lift of passing a statewide law governing local government labor regulations. ORLA played a key role in helping pass the statewide pre-emption in the 2016 Oregon Legislative Session, enacting 3 minimum wage rates based on county boundaries – all of which increase annually in alignment with Consumer Price Index (CPI) changes. This has allowed for a consistent statewide policy to simplify compliance and prevent a patchwork of local wage laws.
• Supporting workforce development programs that offer training and career advancement opportunities to improve retention. An intentional approach to ongoing professional development is a key strategy to improve workplace cultures and retain talented employees. 

2. FOOD PRICES
Challenge: Supply chain disruptions and inflation continue to drive up food costs, affecting restaurant margins.

ORLA's Initiatives:

• ORLA launched a new partnership with RestaurantOwner.com – an online subscription resource with a host of solution-oriented trainings and templates to assist owners and managers with the key task of fine tuning food purchasing decisions and more precise inventory management controls. 
• ORLA will work with state legislators on a review of the state’s cage-free egg mandate that passed in the 2019 legislative session and took effect on January 1, 2024. The cost of what should be the most affordable protein for Oregonian families has skyrocketed in large part due to Avian flu outbreaks facing egg producers. Still, prices have increased due to a smaller supply of eggs due to the government cage-free egg mandate. We are confident that increasing supply by opening up Oregon’s market to all eggs once again will help drive down costs for Oregon families and the state’s hospitality industry.
• ORLA’s member network of food distributors which includes McDonald Wholesale, US Foods, Sysco, and Harbor Foodservice among others commonly host training sessions to assist their customers with menu planning and food cost control services. These critical partners want their customers and our members to stay in business. Identifying sustainable solutions for food purchasing decisions is in both their best interest and in the best interest of Oregon’s restaurant industry.

3. HEALTH INSURANCE
Challenge: Rising healthcare costs make it challenging for restaurants and lodging businesses to provide benefits for employees.

ORLA's Initiatives:

• ORLA is exploring development of an association health plan. Our goal is to launch a new program in alignment with the 2025 health insurance renewal period so the plan can be in full swing for calendar year 2026. 
• ORLA Hospitality Partner, Garth T. Rouse & Associates, continues to work with members to identify health care solutions that make sense for every member’s unique situation including medical, dental, vision insurance, COBRA and self-insured plans, retirement plans, and supplemental plans to name a few. 

4. CREDIT CARD SWIPE FEES
Challenge: High transaction fees imposed by credit card companies reduce profit margins for restaurants.

ORLA's Initiative:

• Supporting federal and state-level legislation that seeks to reduce or cap credit card swipe fees. Our key focus this year is continuing to build momentum for the Credit Card Competition Act in Congress. Industry members are encouraged to join ORLA on trips to Washington D.C. to advocate for this important legislation.

 
5. CHILD CARE
Challenge: Lack of affordable and accessible child care options affects workforce availability and retention in the hospitality sector.

ORLA's Initiatives:

• Advocating for tax incentives and funding to support employer-sponsored child care solutions.
• Helping amplify the newly created “Oregon Employer Child Care Toolkit” and expanding resources being provided by Child Care Works for Oregon.  

6. DELIVERY APP FEES
Challenge: High commission rates from third-party delivery platforms significantly reduce restaurant profitability.

ORLA's Initiative:

• A proposal to increase delivery fees in Oregon is currently under discussion in the legislature as a way to increase transportation funding for the Oregon Department of Transportation. The new proposal seems focused on the growing fleet of delivery vehicles owned by Amazon and other delivery providers. ORLA will be working to ensure food delivery services are exempt from the new proposal if it were to move forward in the legislative process.

7. SERVICE CHARGES & TIPPING ISSUES
Challenge: The debate over service charges versus tipping continues to impact both customer perceptions and employee earnings.

ORLA's Initiatives:

• Educating restaurant owners on the legal and operational implications of service charges versus traditional tipping models.
• Advocating for policies that protect tip income while ensuring fair compensation for all staff.
• Providing best practice guidelines for transparent communication with customers regarding service charges and gratuities.
• Providing tip pooling templates restaurant and lodging owners can customize for their own business needs.

Through these initiatives, ORLA remains committed to supporting Oregon’s restaurant and lodging industry by advocating for fair policies, providing business resources, and working towards sustainable solutions to industry challenges. | Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association

Human trafficking is a pervasive crime that can often slip under the radar. It is the entrapment and exploitation of people, who may not feel safe leaving their situation. It happens within our communities and is something that can be overlooked if one is not trained to identify the signs. Trafficking occurs in many industries. Traffickers use hotels and restaurants for their schemes and illegal activities. For hospitality workers, it is essential to spot the signs of human trafficking and report it effectively to protect the victim, as well as the hotel or restaurant. Quick and decisive actions are needed to end the further use of the premises for abusive behavior.

Employees are Essential to Prevent Human Trafficking
Employees in hotels and restaurants are often on the front lines of human trafficking activity. Because traffickers frequently use hospitality venues to exploit their victims, staff that are the first to interact with a victim or exploiter need to be able to recognize the signs to respond safely and effectively.  Indicators of the crime include behaviors that reflect someone is experiencing violence, deception, threats, or manipulation. While it is important to recognize these signs, employees should also be prepared to respond safely in the situation and know the appropriate actions to take next. By being able to recognize indicators and respond effectively, employees can protect victims and their own workplace from traffickers.

How BEST Helps Provide Training and Awareness
Businesses Ending Slavery and Trafficking (BEST) is a nonprofit that provides businesses with human trafficking prevention training to equip employees with the knowledge they need to identify potential human trafficking situations and report them well. BEST collaborates with the Oregon Restaurant & Lodging Association (ORLA) to provide free human trafficking prevention training for ORLA’s members, to prevent the exploitation of vulnerable people in Oregon. BEST’s Inhospitable to Human Trafficking training is a 30-minute, online video 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 training can be easily accessed at no cost through the ORLA membership website. 

Clear understanding of the crime is a strong step toward preventing human trafficking in the hospitality industry. This also increases the chance of identifying victims and helping them leave their situation. By completing the Inhospitable to Human Trafficking training, employees are equipped to combat human trafficking in safe and effective ways. 

How Human Trafficking Prevention Training Helps Protect Businesses and Guests
Human trafficking that occurs on hospitality properties is not only dangerous to the victims, but to the employees and guests as well as to the business as a whole. Guests may no longer feel safe, and brand reputation may decline, when traffickers conduct their exploitation at a hospitality venue. ORLA is a strong ally in the fight against human trafficking and is committed to training all hospitality staff in Oregon to end human trafficking on the premises of their restaurants and hotels. When employees are trained, traffickers no longer have the upper hand in committing human abuse—because they are under watchful and knowledgeable eyes. 

Conclusion
Human trafficking must be countered when members of any community are being exploited or harmed. Employees in the hospitality industry are essential to the fight against human trafficking in Oregon restaurants and hotels. By training employees to recognize the signs of this crime, BEST and ORLA are helping build a future where human trafficking is no longer an imminent threat.  Hospitality workers who take the Inhospitable to Trafficking training can feel confident in their ability to contribute to the cause.

Guest Blog
[Updated; original post 2.1.24]

​Insurance underwriters research your business before issuing a quote or renewing coverage. They find clues about your day-to-day operations in customer reviews, social media profiles, and even the image gallery on your website. Since this analysis can affect your insurance rates, you want to make sure your online presence conveys an accurate story. Here’s what underwriters look for and factors you need to think about:

If you say you’re a restaurant, but you’re open until 1 a.m., are you really a bar?

Suppose you describe your business as a family restaurant where people of all ages bond through great food and conversation. However, on Yelp, several reviews compliment your cocktails and live entertainment. And your Instagram feed features young adults dancing, a flashing disco ball, and a crowded bar. 

At the very least, you can expect the underwriter to ask questions to classify your business correctly. Maybe you are a family restaurant until 8 p.m. But after that, you cater to a different target audience that wants to drink and party. The latter scenario is more expensive to insure.

What kinds of risks are you taking?

An insurance company can deny or cancel coverage if they don’t like what they see online.

One establishment featured its ice shot glasses on social media. Fun-loving patrons downed the liquor then smashed their ice “glasses” on the floor, creating a slip hazard. 

At another place, a bartender stood on top of the bar to toast a patron’s birthday. The restaurant added this celebratory picture to their website.  

Standing on the counter was not a normal activity in this workplace, but the insurance company didn’t know that. They assumed it was part of the business’s culture, and the worker’s comp carrier spoke up. They didn’t want the risk exposure.

Do you comply with laws and regulations?

Recently, a bar advertised its “happy hour” on social media with a photo showing “$1 beer all day.” Oregon law prohibits promoting happy hours on social media. Although Oregon law now allows promoting happy hours on social media, is this the reputation you want online? OAR 845-007-0020 still prohibits advertising that encourages excessive or rapid consumption. Operators should review their social media posts and online presence to ensure compliance.

7 tips for avoiding an adverse underwriting decision

In five minutes, an underwriter is sizing up your business by looking at your online presence. They are asking themselves, “Do I even offer insurance to you? If I let you in the door, will I need to charge you more because I perceive you as riskier?”

To position your business in the best possible light with underwriters: 

1. Examine your website through an insurance lens and regularly review your online presence. Does your photo gallery and social media activity accurately portray the nature of your business? Is there anything that might raise alarm bells for an insurer?
2. Set up monitoring so you receive real-time alerts if someone posts about your business. This way, you can leverage positive reviews, while managing anything that could be harmful. 
3. Reassess your business hours. There’s an old saying, “Nothing good happens after midnight.” Understand the insurance implications of staying open late. Many insurers want a midnight closure (or earlier) as a condition for coverage. Those willing to consider longer hours will charge more. Are you bringing in enough revenue to cover the extra insurance costs? 
4. Make sure the business description in your insurance policy matches what’s happening today. Maybe you were a breakfast-lunch establishment when you first started your venture, but now you serve dinner and late-night drinks. As your business evolves, you may need to adjust your insurance. An inaccurate business description can lead to coverage gaps and worse.
5. Decide if “flex hours” are delivering ROI. Some businesses allow the night manager to close early if business is slow. If your website says you’re open until 2 a.m., but you regularly close at 11 p.m., you may benefit from officially adopting an earlier closing time. You could transition your business from being “high risk” to “medium risk” just by shortening your hours.
6. Update your website. A 2018 photo can signal to an underwriter that you aren’t maintaining your website, which creates a cybersecurity concern. And if you’re not maintaining your site, what else is out of date?
7. Evaluate your website through an ADA lens (Americans with Disabilities Act). Some hospitality businesses are facing lawsuits over sites that are non-compliant. Insurers don’t want that liability.

The insurance coverage you need depends on the classification of your business. Are you a bagel bakery or a brew pub? What percentage of your revenue comes from alcohol sales — 0%, 20%, 50%, 80%?

If there’s a mismatch between the info on your insurance application and online presence, you risk an adverse underwriting decision. Insurers may decline to quote. Or if you already have coverage, you risk claim denials and the potential for policy cancellation.

Take the opportunity to shape your story. Submit a letter or video with background information you want the underwriter to consider. Highlight the steps you’ve taken this year to improve your risk profile. Provide context to help insurers understand your online reputation and business vision. | Rob Hoover

Rob Hoover of Risk Strategies Fournier Group manages ORLA’s Hospitality Insurance Program (HIP). Contact him to learn more about online reputation and insurance pricing.

While workers’ compensation premiums have decreased for some industries, many restaurants have seen increases of 30% to 40% in certain locations. The good news? Workers’ comp costs are one of the most controllable expenses in your business. Here’s how to manage them effectively.

Key Factors Influencing Workers’ Comp Pricing
​
Workers’ comp premiums are determined by:

• Your payroll – Higher wages mean higher premiums.
• Industry classification (9079) – This rate has increased in many states. Some insurers may further divide 9079 based on specific risk factors.
• Your experience modification (X-mod) factor – This reflects your restaurant’s claim history compared to industry peers.

Mandatory increases in minimum wage, along with stiff competition for top talent, are putting upward pressure on restaurant payrolls. Since workers’ comp pricing is a function of payroll, a larger payroll means higher workers’ comp premium.

In contrast, the X-mod factor is within your business’s control. It reflects your history — how your specific restaurant performs. 

Your X-mod is a benchmark comparing your claims history to others in the industry. A mod of 1.0 is average, while anything above means higher claims and costs. A lower X-mod can reduce your premiums significantly. Your X-mod is calculated based on a three-year rolling history, meaning past injuries still impact your current rates.

Hiring, training, safety practices, and the way you handle workers’ comp claims are within your control. As part of your restaurant risk management strategy, here are five actions you can take today to reduce your X-mod factor.

1. Implement Best Practice Safety Programs

Start by assessing current safety programs and reviewing past claims. The most common restaurant injuries include:

• Slips, trips, and falls – Often due to wet floors, improper footwear, or cluttered walkways.
• Lifting and pushing injuries – From moving heavy items without proper technique or assistance.
• Cuts and burns – Frequent in kitchens due to sharp tools and hot surfaces.

To reduce these risks:

• Conduct regular walkthroughs to identify hazards.
• Implement simple fixes like installing drains, adding floor mats, or repositioning equipment.
• Develop a written injury prevention program and make safety training a priority.
• Use signage and visual reminders to reinforce safety protocols.

2. Manage Workers’ Compensation Claims Proactively

The way you handle claims can significantly affect costs. Key actions include:

• Report injuries within 24 hours – Delayed reporting leads to higher costs and prolonged recovery.
• Ensure employees receive immediate care – Your insurer may offer a triage service to determine appropriate treatment.
• Thoroughly document incidents – Witness statements, photos, and timely reports help with claim resolution.

Show Support for Injured Employees

Employees may fear losing their job after an injury. Reassure them by:

• Accompanying them to medical evaluations to offer support.
• Checking in during recovery to show care and maintain engagement.
• Monitoring claims closely to ensure timely care and prevent delays.
• Providing clear return-to-work expectations so employees feel secure about their job status.

Proactive communication reduces litigation risk and improves employee morale.

3. Train Employees Continuously

Inadequate training contributes to workplace injuries. Ensure training is:

• Engaging and hands-on – Use real-life scenarios and simulations.
• Accessible – QR codes on equipment can link to instructional videos.
• Collaborative – Experienced employees can mentor new hires.
• Ongoing – Reinforce training regularly, not just during onboarding.
• Tailored to actual risk areas – Focus on the most common injury types in your restaurant.

Training does not have to be costly—consistent reinforcement of safety best practices can have a lasting impact.

4. Develop Return-to-Work Programs

Lost workdays drive up claim costs. Implement return-to-work strategies by:

• Informing medical providers that modified roles are available.
• Assigning temporary tasks like greeting guests, assisting with office work, or training employees.
• Leveraging state programs that provide financial incentives for returning employees in limited roles.
• Creating meaningful transitional duties that provide value to the business while accommodating recovery.

When an employee returns, celebrate their recovery and use the experience to refine workplace safety protocols.

5. Leverage Workers’ Comp Data and Technology

Use data to identify trends and reduce claims by analyzing:

• Claim reporting times – Faster reporting leads to better outcomes.
• Injury frequency and severity – Determine if injuries are increasing and why.
• Risk patterns – Identify problem areas, such as slippery floors or equipment misuse.
• Employee behavior trends – Address patterns that lead to repeat incidents.
• Comparisons with industry benchmarks – Assess how your claims compare to competitors.

For example, if multiple employees are slipping, evaluate whether the issue is the flooring material, cleaning methods, or footwear requirements. Data-driven insights lead to targeted safety solutions.

Foster a Culture of Safety

Workers’ comp trends often reflect an organization’s culture. Consider:

• Employee fatigue – Are workers juggling multiple jobs and working while exhausted?
• Staffing shortages – Overworked employees are more prone to injury.
• Hiring for safety – Employees who care about their work and colleagues tend to act more cautiously.
• Encouraging a speak-up culture – Employees should feel comfortable reporting hazards before they become incidents.
• Providing incentives for safety participation – Recognizing employees for identifying risks can reinforce a proactive culture.

Creating a culture that prioritizes safety improves morale and significantly reduces workers’ comp costs. By taking these proactive steps, restaurants can control their premiums and create a safer, more productive workplace. | ​Robert J. Hoover, Vice President, and Christina Capobianco, Loss Control Consultant