​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
​

About
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. 

Oregon’s second largest private sector industry has thousands of jobs available for interested applicants and we anticipate similar workforce trends to be commonplace for our industry and many others for years to come.

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. Currently the Oregon Restaurant & Lodging Association has two full time employees devoted to this work. This new workforce blog will be a joint effort to keep lines of communication open with all industry operators interested in connecting with future employees for their operations.

I want take a moment to thank Courtney Smith and Lupe Arellano on our professional staff for their work to highlight our ProStart Culinary and Management curriculum in high schools, job and career fairs organized by partner organizations, speaking opportunities for ORLA members in high schools, and amplifying leadership vacancies as they occur amongst Oregon’s 9 regional workforce development boards.

This is our moment as an industry to rise to the occasion and provide more leadership to showcase the vast opportunities available right now in Oregon’s hospitality industry. We hope our new workforce blog connects you with meaningful intelligence and insights that help you navigate our number one challenge in business – demand outpacing labor supply.

Cheers to you and your success in Oregon’s hospitality industry.

Sincerely,
 
Jason Brandt
President & CEO, Oregon Restaurant & Lodging Association

Oregon Hospitality Foundation Workforce Blog: March 2023

The Oregon Hospitality Foundation’s new workforce liaison role is focused on building relational capital between educators, workforce programs/boards, and ORLA members. We are hopeful these relationship building efforts will assist us in reducing the current workforce demands facing hospitality employers. 

So far, the newly launched position has assisted ORLA and the Hospitality Foundation in building relationships with the following stakeholders:

• 37 High Schools (13 on the Coast which is a primary area of focus in year one of the position)
• 5 School Districts (Willamette Education Service District, Portland Public Schools, Washington, Multnomah, and Clatsop)
• 4 CTE Regional Coordinators
• 9 Community Colleges (Central Oregon, Clatsop, Klamath, Blue Mountain, Southwest Oregon, Oregon Coast, Linn Benton, and Portland)
• 2 Universities (Oregon, OSU Cascades)
• 5 WorkSource Business Representatives
• 5 Workforce Boards (Northwest Oregon Works, Lane Workforce Partnership, WorkSystems, Clackamas Workforce Partnership, and Willamette Workforce Partnership)
• 5 Regional Destination Marketing Organizations (Oregon Coast Visitors Association, Travel Portland, Travel Southern Oregon, Willamette Valley Visitors Association, and Visit Central Oregon)
• 10 Workforce development programs 

Career Fairs
We had four members (The Nines, Kimpton, McMenamins, Elephants Delicatessen) participate at the Portland Youth Opportunity Fair hosted by WorkSystems. The job fair is targeted for 16 to 24 years old’s but open to all. We provided free food handler card training vouchers to youth participating in the event. In addition, we have a new partnership with the Portland Workforce Alliance, which held their 19th annual career fair recently. With over 5,000 students and 75 schools present, the event was a good connector for hospitality employers looking for prospect employees.

Speaking Engagements
In late 2022, we connected our members to four speaking engagements, three of them in high schools and one to the University of Oregon. Bandon Dunes Golf Resort went to speak at Winter Lake High School and North Bend High School. Zach Poole with Pig ‘N Pancake went to Seaside High School. Colby Phillips with Beergarden spoke with a business management class at the University of Oregon. In January there were three more speaking engagements for our members to participate in, two on the coast and one in Benton County.

Workforce Development Boards
The hospitality industry is currently a represented sector with two workforce regions (NW Oregon Works and Lane Workforce Partnership). In addition, we are working on partnerships with three other regions and their respective workforce boards (WorkSystems, Clackamas Workforce Partnership, Willamette Workforce Partnership). More to come as we work to make sure an industry voice exists at board tables for all 9 regional workforce boards.

Learn more about OHF's workforce efforts and resources available to industry members at OregonRLA.org/workforce.

Posted by: Lupe Arellano, Workforce Development / Business Liaison, Oregon Hospitality Foundation

Legislative Bill Movement / Skills Standards / Celebrating Women Restaurateurs / Webinars & Events

Legislative Bill Updates: ORLA's Government Affairs Committee continues its weekly calls to review and discuss the latest activity from the legislative session. As of today, SB 619 (data privacy) has moved forward with private right of action removed; HB 3308 (alcohol delivery) has moved to rules – this would set up a "server training" program for third-party delivery companies as well as a separation of liability; SB 545 (reusable containers) is expected to pass with legislative intent to make it optional to accept those types of containers. See the latest Bill Tracking online.

Hospitality Industry Standards Feedback Survey: The Oregon Hospitality Foundation has been working with the Oregon Department of Education (ODE) and Education Northwest the past couple months to help identify high school technical skills and standards for employment in the hospitality career cluster. This is critical work in getting our foot back in the door of Oregon high schools and it will also raise awareness about the intentional workforce development work through our Hospitality Foundation. Employers are encouraged to take this survey to help review and validate the technical skills we helped to identify for the ODE. Please provide your input by April 14, 2023.

Biggest Industry Show in the Northwest: The Northwest Food Show kicks off Sunday, April 16 at the Portland Expo Center with hundreds of exhibit booths, emerging products and services, alcohol tasting pavilion, and Trends Center. Just announced are the educational programs in the new Trends Center each day: Explore trends to improve your business, and learn best practices from peers in these interactive presentations, designed to showcase tangible solutions you can implement tomorrow and increase your bottom line. Learn more and register online.

Celebrating Women in Portland's Restaurant Industry: Plans are underway for the Women Who Stir the Pot event May 22, presented by the Portland Kitchen Cabinet and the Oregon Restaurant & Lodging Association. This event will be held at Mother’s Bistro and celebrates women in the restaurant industry, recognizing the contributions they make. Learn more. 

Upcoming Webinars:

• ORLA is co-hosting a webinar on April 24 with Smart City Policy Group on "Short-Term Rentals: Policy and Compliance." Attendees will learn more about compliance success with regards to rules and taxes around vacation rentals and short-term rentals. Registration is complimentary online.
• ORLA Preferred Partner, Risk Strategies’ Fournier Group, will be presenting a webinar at 10:00 am on April 25, "Cybersecurity in Hospitality: Don’t Get Blindsided." Anyone in the industry is welcome to participate in this free webinar by registering online. 

ORLA in the news...

• This tournament is transforming high school students into chefs
• Cannon Beach explores lodging tax increase to help fund projects
• Seaside culinary arts score at state competition
• Oregon restaurant, lodging association urges focus on crime

As always, should you have any questions, please reach out to your Regional Representative. Thank you for staying engaged!