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.