Affordable Housing / Economic Report / Per Diem Increase / Oregon Hospitality Heroes

‘People for an Affordable Oregon’ Involvement
ORLA is part of a broader business coalition challenging the latest rulemaking conducted by the Department of Land Conservation and Development (DLCD) without appropriate levels of public input. There’s potential that legal action may result out of this movement: the business coalition challenging the lack of public process within the rulemaking effort and municipalities questioning DLCD’s authority over local zoning controls. To learn more about this developing issue visit:

• People for an Affordable Oregon Website
• Overview of the issues and why there is concern

Operators Endure Weaker Business Conditions
The costs of goods restaurateurs need most have continued to accelerate, and according to a new survey released today by the National Restaurant Association, 46% of operators say business conditions are worse now than they were 3 months ago. More than 80% of operators say the cost of food, labor and occupancy are higher than 2019; 94% say operating costs in general are higher. 85% report profits are down. See full survey results and the press release.

GSA Increases Per Diem rate
The FY2023 standard per diem rate will increase to $157 for the continental U.S., and rates for the 316 non-standard areas will be at or above FY2022 rates, the General Services Administration (GSA) announced this week. This is extremely welcome news for the hospitality industry as our recovery continues. By increasing the standard rate and setting a floor at pre-pandemic rates for NSAs, GSA has ensured fair increases in markets that warrant them while also avoiding hurting hotels in markets that have taken longer to recover. See Oregon rates.

ORLA Hospitality Award Winners
We will celebrate four hospitality heroes Sunday evening, September 11 at our Awards Dinner during the annual Conference in Eugene. Congratulations go to Nick Pearson (Jupiter & Jupiter NEXT) as the Lodging Operator of the Year, Emma Dye (Crisp) as the Restaurateur of the Year, Jodi Doud (Elmer's Roseburg) as Employee of the Year; and Matthew D. Lowe (Jordan Ramis) as the Allied Partner of the Year. 

As always, please let us know if you have any questions by emailing [email protected].

​Guest Blog | Togather Restaurant Consulting

Many people assume that you must be a coder, data analyst, or a tech-savvy professional to collect and use data. Data can be an overwhelming concept, especially when presented with unfamiliar and intimidating terminology. However, when presented correctly, we can view data analytics in a more accessible and understandable way. The current buzz about data and how it is changing business is worth listening to; it is transforming the job market, being used by every technological platform, and is changing the world of business as we know it.

In the hospitality industry, we can break data down into operational and guest data. Operational data includes any data collected by your POS, turnover time, inventory, menu trends, cost of goods, labor reports, and staff performance metrics. Guest data includes customer behaviors, wants & needs, contact info, and demographics. These can be analyzed to uncover patterns, trends, and associations in your operations.

Many people know that their data is sourced from their POS, but operators can also collect data from their loyalty programs, inventory & waste management, kitchen display systems, and other new technology that track restaurant metrics.

But, when you have this data, what do you do with it? In order to recognize and dissect patterns, you need to have it in a structure that is easily analyzed. We call this “data transformation:” taking data, and turning it into an optimized product for business use. But not to fear, we’ve reached a point where your technology does the work for you. Remember to ask your POS representatives the big question – “what can my POS do with the data points it is collecting?” Take a peek at the charts, graphics, summaries, and percentages calculated through your technology.

Only 45% of small business owners analyze their data (airSlate). Analysis doesn’t mean logging in once a month to check your sales and labor numbers. Analysis involves asking the right questions for what you want to know. You must think like a scientist to create hypotheses, but you don’t have to have a Ph.D. to do so. Some examples of questions that data can answer are as follows:

• What menu offerings are most popular based on seasonality?
• Which server is driving the most revenue per hour?
• What marketing tactics drive the highest walk-through rate?
• What is the average lead time for each dish in the kitchen? How does that affect customer satisfaction?

If you can ask these questions and test solutions you will see benefits across your operation. In your marketing, decision-making, revenue, efficiencies, and customer behavior, you will have a competitive advantage. When used the right way, numbers rarely lie.

By 2025, data will be embedded into every decision process in terms of restaurant success. Jobs in the field are expected to grow by 25% by 2026. Restaurants that use big data have 8-10% increased profits, 17% increase in productivity, and improved their products or services by 12%. (PopMenu). If you are in the 55% of operators that aren’t using it to your advantage, now is the time to learn - don’t get behind with data!

Hold your horses though - if we use data, we must ensure that we are ethical about our collection and usage. As the holder of people’s data, you must ask: How are you collecting, protecting, and applying it?

In terms of ethics, your answers should align with four principles:

1. Empathy. Would customers return to the restaurant if you were honest about how you are collecting and using their data?
2. Transparency. Does the consumer understand how I am using and collecting their data?
3. Accountability. Is their data safe and secure?
4. Equity. Are my decisions fair and unbiased?

If the answers are ‘yes’ and the first answer aligns with how you would want your data to be treated, then proceed! If you are using a platform or raw data in a way that you cannot answer ‘yes’ to those questions – you may want to step back and consider if you are providing honest service to your customers. After all, we are the hospitality industry.

As we step forward into the future, we mustn’t let ourselves get bogged down by the learning curve. While it can seem daunting, there are resources available. Data answers a lot of the questions that business owners face. However, data collection is pointless without transformation. We must transform our raw data values into something tangible – something that changes how we do business. Otherwise, our research is useless. We can cultivate a competitive edge if we stay in stride with this rapidly-evolving technological industry. Above all else, we must ensure that our data-driven decisions are ethical and build towards profitability. | Anna Janke and edited by Kate Ratledge, Togather Restaurant Consulting

In the News / Sports Economy / Reigniting Travel / Worker Shortage

ORLA's professional staff is in full swing as we turn the corner on event season and gear up for our final productions – Swig & Savor August 12 at the Nines in Portland and the ORLA Hospitality Conference at the Graduate Hotel in Eugene in September. See below for our latest association updates:

Media Coverage – State of Sport
The Portland market and secondary markets in Eugene and Bend are working collectively to amplify the State of Sport within Oregon’s economy. Findings of a recent report launched intentionally in advance of the World Athletic Championships in Eugene elevates the identity we have in Oregon around sports and recreation companies. Of course the hospitality industry benefits greatly as we continue to develop a more comprehensive identity around sports and recreation. The Oregon Hospitality Foundation, ORLA’s 501 c(3) arm, financially supported the creation of the study and continues to be involved in the ongoing task force work. Here are some of the media pickups resulting from the collaborative work. 

• KOIN: Portland Sports Outdoor Activity Industries See Economic Growth in 2022

• Portland Tribune: Oregon Winning in National Sports and Recreation
• Portland Business Journal: Oregon Sports Business Industry Remains Top Tier
• Oregon Business Report: Editors Pick, New Oregon Report: The State of Sport
• An e-clip even appeared in the State Library of Oregon: Oregon Winning in National Sport, Recreation
• Sponsored Content – Portland Monthly: Portland Business Alliance and Coalition Partners Release Oregon: The State of Sport ‘The most comprehensive report of its kind to date finds the state’s sports ecosystem is a thriving economic force.’

 
Reigniting Travel Press Event
Chip Rogers, President & CEO of the American Hotel & Lodging Association joined ORLA alongside Travel Portland and the Portland Business Alliance in holding a press event July 22 about reigniting travel in the Portland region. Here’s a sample of some of the coverage:

• KATU ABC: Hospitality Industry Optimistic In Portland's Post-Pandemic Recovery
• KGW NBC: Leaders In Lodging Industry Push For More Hotel Workers As Tourists Return To Portland
• Oregonian (Oregon Live): Portland Tourism Is Bouncing Back From COVID, But Hiring Challenges May Hold Back Full Recovery

Where Have All the Workers Gone? 
Almost everyone in the industry still needs more help to meet demand. And there are some misunderstandings about how much our workforce has been effected by Covid compared to trends that started long before the pandemic hit. If you haven’t already, read the Wall Street Journal's article, The ‘Great Resignation’ Started Long Ago, it’s worth your time. Something to ponder: "There are more than 11 million job openings in the U.S. but only six million unemployed workers. So what’s happening?" 

ORLA Hospitality Conference
Both Chip Rogers, President & CEO of the American Hotel & Lodging Association and Michelle Korsmo, President & CEO of the National Restaurant Association will join us in person as keynote speakers at the ORLA Hospitality Conference in Eugene. This will mark the first time in ORLA’s history where both national CEOs will be present for a gathering of our members. This is a great time to bring key staff and those you’re looking to develop as part of your long term sustainability plan for your operation.

Questions? Give us a call at 503.682.4422 or email us.