Guest Blog | Adesso Capital
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We hear it all the time: Businesses aren’t filing for the Employee Retention Credit (ERC) because of the misconceptions surrounding the program. In fact, less than 20% of eligible businesses have claimed their ERC. Which is why ORLA partnered with Adesso Capital’s team of tax experts to address some common myths about the ERC:

Myth 1: I can’t claim the ERC because I’ve already received PPP funds.

The most frequent falsehood we hear is that retailers, restaurants, and other hospitality businesses can’t receive funds from both the Paycheck Protection Program and the ERC.

This was true at one time. But a change to the CARES Act in December 2020 removed the restriction against applying for both. This vital change went largely under the radar. 

Myth 2: My business has grown during the pandemic. Isn’t the ERC only for businesses that are hurting?

Economic injury isn’t the only condition to receive ERC credits. If your business was affected by operating restrictions or supply chain issues, you’re eligible.

Myth 3: My business was deemed an essential business, so I don’t qualify.

Even essential businesses were subject to reduced operating hours, or reduced capacity. Just about every “essential” business (and that definition varies from state to state) was forced to operate under pandemic restrictions at some point, making even essential businesses eligible for the ERC.

Myth 4: I’m not eligible because employees I had in 2020-21 have since quit, were fired, or were replaced.

The Employee Retention Credit is based on the number of employees on the payroll, not specific employees. Turnover in the restaurant business is common but it doesn’t prevent you from claiming what could be tens of thousands of dollars in taxes you’ve already paid. 

Myth 5: My business wasn’t shut down during the pandemic. 

For much of the relevant ERC time period, businesses weren’t forced to be closed. The ERC covers 2020 but also three quarters of 2021 – a timeframe when most businesses were back to business as usual. 

Myth 6: My business’ sales rebounded in the first quarter of 2021, so I’m not eligible. 

Thanks to a change to the CARES Act, you have the option to look at one quarter prior. This means Adesso can determine eligibility based on lost revenue in 2020. Also, if your business was subject to a full or partial suspension, you may qualify regardless.

The truth is, filing for the ERC is complicated. We would hate to find out you missed out on receiving up to $26,000 per employee because you got some bad advice. Or because you believed the myths out there about the ERC program. 

We know there are tons of things your business could do with the money. Let Adesso take care of the entire refund filing process, from the initial phone call to follow-ups. All you need to do to get started is to schedule a call to see how much you qualify for. 

Guest Blog | Oregon Beverage Alliance

As we near the holidays, the Oregon Beverage Alliance wants to remind you to drink responsibly. Making smart choices – including finding a ride home when you’ve had too much to drink – saves lives.  

The encouraging news is that several pieces of recent data suggest that Americans are drinking responsibly. Consider these data points:

Adults Are Drinking Less
Recent research by Gallup found that only 60% of Americans say that they drink alcohol – down from 65% in 2019 and at one of its lowest rates in 60 years. The number of drinks that Americans report to researchers as having consumed in the prior week is also at its lowest point since 2001 according to Gallup’s research. In fact, those who drink averaged 3.6 drinks per week – the lowest total in 20 years. 

Young Adults Are Also Drinking Even Less
According to data from JAMA Pediatrics, the number of college students who abstain from alcohol jumped to 28% in 2018 – up from 20% in 2002. Additionally, instances of alcohol use disorder have dropped almost 50% in that time period. Combined alcohol and marijuana use disorder has similarly dropped by over a third in that same time.

Demand for Alcohol Treatment Is Decreasing
The proportion of patients admitted to addiction and recovery programs due to alcohol use is declining nationally. Admissions for addiction treatment where alcohol is a primary or secondary cause have dropped 21% and 42% respectively over the past decade, according to data from the US Department of Health and Human Services’ Substance Abuse and Mental Health Services Administration.  

Addiction to Hard Drugs Remains a Challenge in Oregon
In a June update to the Oregon Legislature from the Oregon Alcohol and Drug Policy Commission they reported that Oregon leads the nation in misuse of drugs such as meth and opioids.  While Oregon spends more on drug addiction recovery and prevention than 75% of other states, we’re not getting the results our state needs due to lack of coordination and accountability within the Oregon Health Authority and drug addiction recovery providers.

What Does It All Mean?
We know that most people drink responsibly and multiple datapoints continue to confirm that sentiment. As local business owners and residents, Oregon Beverage Alliance members care deeply about our communities. That’s why we invest and create so many jobs here in Oregon. Without question, more needs to be done to address drug addiction and we stand ready and willing to work with lawmakers and stakeholders on these issues.

Guest Blog

If you own a restaurant or hotel and are interested in attracting workers with disabilities, you've made a wise decision. By embracing a diverse workforce, you are committing to greater inclusivity. Additionally, research published in the Journal of Occupational Rehabilitation suggests that companies that hire workers with disabilities benefit from greater employee loyalty, reduced worker turnover, and greater profits. While you may be clear on the benefits, you may be unclear on how to best attract and hire a more diverse workforce. 

Take care of basic tasks needed to hire workers with disabilities

Before you start recruiting, take care of some housekeeping items. First, if you don't have one, get an employer identification number, which is an important step as you set up a new company. The EIN is assigned by the IRS and you'll need it for payroll. Second, make sure your workspace accommodates disabled persons. For example, you may want to add a wheelchair-friendly bathroom and useful technology, like screen readers—which help persons with visual hurdles. Finally, provide disability awareness training for existing employees, preparing them for the changes ahead.

Institute flexible working arrangements if possible

According to Allianz Care, another way you can make your workplace more friendly to people with disabilities is with flexible working arrangements. For example, you might allow people to work remotely. This can make your business more appealing for persons with mobility hurdles, for example. Of course, not all jobs lend themselves to telecommuting. In this case, offering non-standard working hours or intermittent flexibility if you can't commit to a full-time remote schedule is helpful.

Establish a benefits program that takes people with disabilities into account

When it comes to attracting top talent, you need to think about more than salaries. This is especially for people who are disabled. A benefits package that speaks to your target audience can make a big difference. There are many different types of benefits you can implement to attract workers, such as health insurance, retirement planning support, transportation assistance, and child care. One way to figure out what kinds of benefits workers would appreciate is to ask them outright.

Revamp your recruitment processes

Once you have the basics in place to make your workplace friendly for the disabled, it's time to start recruiting. MIUSA offers tips for writing relevant job ads, such as promoting disability inclusion and noting that you have a budget for reasonable workplace accommodations. 

Develop an inclusive onboarding and career development program

Once you've hired your new employees, the work doesn't stop. Make sure to include them in a detailed onboarding program. Start by ensuring easy access on their first day and leaving plenty of time to introduce them to the office. Then, make sure you have the technology on hand to accommodate their needs. Share training materials in multiple formats if needed, from written guides to videos. As your new workers settle in, make sure to touch base with them regularly to discuss career planning, so you can support their further development.

Reflect inclusivity throughout your brand

When including workers with disabilities in your business, you want to ensure that your brand reflects this inclusivity. You should share it at every stage, internally and externally, ensuring a clear reflection of your business’s diversity and inclusion values. For example, you want to make sure your marketing efforts are just as inclusive as your hiring efforts. This could involve doing things like making sure your website is compatible with assistive devices and using diverse images of people in your marketing materials.

Creating a more inclusive culture in your business by hiring workers with disabilities benefits all involved. The above article provides some tips to guide you through the process. | Martin Block

Guest Blog | Togather Restaurant Consulting

Sustainability is a growing force on the hospitality industry’s horizon. More and more customers are gravitating towards businesses that advocate for greener practices. In fact, a recent study found that 58% of consumers heavily consider the ecoconsciousness of a business when making purchasing decisions. This number represents a viable opportunity to make greener changes and gain a profit while doing so. In fact, most of the aforementioned consumers are Generation Z. By tapping into this market, we can cater to a growing group of young people whose buying power is only becoming stronger. By neglecting this demographic, we potentially lose a large percentage of market share.

There is a common misconception surrounding the accessibility and affordability of going green. Afterall, it’s no secret that compostable paper goods, organic produce, grass fed beef, or free range chicken can get pricey. While the short term cost may seem overwhelming at first, it pales in comparison to the long term cost of potentially losing customers that view this as their primary motivation to patronize a local business. Many studies have shown that Millennials and Gen Z choose restaurants based on sustainability factors and will actively choose to avoid establishments that do not embrace eco conscious practices. Therefore, neglecting to implement these values, and cater to these demographics, will affect your bottom line.

Monitoring food waste is the most cost-effective way to step into the sustainable future. Food waste and food production are the main contributors to a restaurant’s carbon footprint. Restaurants are being encouraged to make choices that positively impact the environment. Not only on their menus, but across the supply chain. Monitoring your food usage, honing your ordering guides so you never purchase more than what you need, and making informed decisions based on the current market, are all great first steps towards sustainability. However, this system works best in tandem with vendors who are also sustainably-minded. In order to provide more transparency to consumers, methods such as sustainable sources, clean ingredient-shopping, and ethical production serve to create a foundation of sustainability. This foundation serves as a catalyst to propel younger demographics to use their buying power, which currently sits at a staggering $140 billion.
 
Many operations are turning to their own backyards for resources. Some of the most successful restaurants in the sustainable market are implementing homegrown produce. This can be as simple as raising your own lettuce, maintaining a small hydroponic herb garden, or canning their vegetables to be used year-round. These practices lend a sense of nostalgia and connectivity to the Earth that Millennials and Generation Z strive to protect. Small businesses have an advantage because corporate establishments do not have the capacity to tap into the level of connection that locally-sourced produce can provide.

When it comes down to it, the consumer wants to feel good about their choices and what they put into their bodies. Creating a tangible relationship between humans and what nourishes them builds trust. This trust is founded upon knowledge that the establishment you patronize cares. Consumers are willing to pay well to have the peace of mind that comes with this knowledge. While making this transition could feel daunting or overwhelming, the price paid upfront is small in comparison to future profitability. Caring about the future and our planet is a driving force for Generation Z. Tapping into their initiative will not only benefit us environmentally but will build lifelong relationships that profit us all. | Kate Ratledge, Togather Restaurant Consulting

Guest Blog | MustHaveMenus

Summer’s coming to a close, and customers are starting to crave cozy fall flavors. Don’t delay — update your bar menu today to include some festive fall cocktails today! 

Crafting a cool-weather cocktail list doesn’t have to be complicated. Plenty of the most popular seasonal flavors — apple cider, pumpkin spice, and even candy corn — translate easily into mixed drinks that your customers are bound to fall in love with!

Need a little mixology inspiration? Keep reading for 8 excellent cocktail ideas and recipes that capture the spirit of the season:

Apple Cider Sangria 
Sangria is a summery punch that’s traditionally made with wine, spirits, and various fruits. Happily, it can easily transition to a fall menu offering with a few simple edits. For example, this recipe incorporates apple cider and ginger brandy into the mix. It maintains the character of sangria, but with a subtle nod to the fall season. 

Bourbon Milk Punch
Bourbon milk punch is a beverage that’s just as comfortable on a cocktail menu as it is on a dessert menu. Featuring whole milk or cream (or both), bourbon, nutmeg, vanilla extract, and cinnamon, it almost tastes like melted ice cream — but with a distinct bourbon kick. What’s not to love? This creamy, dreamy cocktail is an ideal addition to your restaurant’s menu all the way through the winter. 

Candy Corn Martini 
Not everyone’s crazy about candy corn. But those who do love it really love it. Give ‘em what they want with a candy corn martini! 

This recipe is jam-packed with satisfying sweetness: it’s made with whipped cream flavored vodka, pineapple juice, and grenadine. But the flavor is only half the fun: the different weights of the liquid ingredients create a “stacked” visual effect so the beverage has three distinct layers that look like the colors of candy corn. This Instagram-friendly cocktail is bound to grab plenty of attention!

Pro tip: Spread the word! A tabletop insert advertising fall cocktail specials like candy corn martinis can draw attention to your seasonal offerings and could increase overall orders.

Caramel Apple Old Fashioned
The Old Fashioned is a classic cocktail traditionally made with bourbon, bitters, and a touch of sugar. In this recipe, it has a fall fling with caramel apples — with delicious results! Apple cider and rich, creamy caramel upgrade the Old Fashioned to cozy autumnal perfection. Finished with fetching slices of green apple, it’s got a fine fall look to match. Don’t miss adding this one to your fall roster! 

Cranberry Mimosa 
The traditional mimosa couldn’t be easier to make: simply mix orange juice with champagne or sparkling wine and voila, you’ve got yourself a brunch classic. Making cranberry mimosas is just as simple: simply swap cranberry juice for orange juice.

The cranberry mimosa may not be complicated, but it boasts a fascinating flavor profile — bright and buoyant, but not too sweet. Plus, it’s visually stunning! This easy-to-make beverage is the perfect addition to your brunch lineup, or as an aperitif, all fall and winter long. 

Honey Pear Sparkling Cocktail 
What better way to kick off a meal than with a sparkling wine cocktail? Here's a recipe that was made for fall: Honey Roasted Pear Sparkling Cocktails, featuring pears roasted in honey and then pureed into a syrup that adds a rich, sweet, mellow flavor to the buoyant bubbles of sparkling wine. Served in coconut sugar-rimmed glass, this is the perfect celebratory cocktail to put customers in a happy mood for the rest of their meal. As a bonus, this recipe is also easy to make into mocktails!

Hot Toddy 
As the weather gets cooler, customers crave comfort and warmth. The hot toddy delivers on both accounts, so be sure to include one on your menu! You can’t go wrong with a classic hot toddy, a simple concoction made with hot water, whiskey, honey, lemon, and spices. Or, you can try any number of variations on it, from a salted caramel hot toddy to a green, matcha-infused hot toddy.

Pumpkin Spice White Russian 
It’s a simple fact: the White Russian, a rich concoction made with vodka, Kahlúa, and cream, is extremely delicious. But it’s even better with a little pumpkin spice. With this fall-themed variety, you get all of the finer points of a traditional White Russian, but with an autumnal accent thanks to pumpkin puree and a warming spice mixture. The resulting beverage makes for a beautiful after-dinner drink with a visually pleasing presentation.

Bring on the Fall Flavors!
Fall is the perfect time to update your bar menu to reflect the flavors of the season. Take a cue from these creative cool-weather cocktail ideas to craft an autumnal menu that’s bound to keep customers coming back!  | Mark Plumlee

Mark Plumlee is the Sr. Content Manager for MustHaveMenus, the internet’s leading design, template and marketing service for restaurants. 

​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

Guest Blog | Porter

Staff shortages are leaving many of us with no choice but to shortchange the guest experience. Here are 5 ways that you can create positive guest experiences with a reduced staff. 

1. Train + Retain
   It may seem counterintuitive to invest more time in your onboarding program, but helping your team quickly become confident experts in their roles will reduce friction down the road. This will lead to fewer mistakes, questions, and underperformance. The quicker that new hires are able to positively contribute to the guest experience, the more quickly they will grow in confidence — an attribute that leads to better performance and greater retention. The Disney Institute has found that when a staff member has confidence in their leaders, they are more likely to make a positive contribution through their work. So by investing in training, you are investing in better customer experiences and greater retention — both big wins when having to deal with reduced staff.
   
   
2. Stay Positive
   It is very natural for the stress of running a business + the pressures of reduced staff to add strain, complications, and weight to our disposition. That weight we carry trickles down into the interactions we have with staff, which adds weight to their already heavy load as well. As that weight mounts on everyone, performance will drop and retention rates will suffer. By maintaining a positive and supportive culture, staff will become more productive during their working hours, more engaging with customers, leading to better experiences, and better staff retention. Headspace found that 79% of workers feel underappreciated, and while there are a variety of reasons for that statistic, the one clear takeaway is that cultivating a positive and supportive working culture will lead to better results for customers, staff, and your bottom line. 
   
   
3. Reduce + Focus
   Every situation is unique, but most operations can become more focused and still offer a great experience. If you are forced to make tough decisions in light of staffing difficulties, use this opportunity to evaluate what you do best and focus on delivering that very best offering for this experience-driven economy. Maybe that means closing down one day a week so you can deliver a great experience the other six. Maybe it means cutting delivery options and focusing on the on-site experience. Only you know your context, but focusing on making it the very best can allow you to keep the value of your business intact while making the best of the situation with reduced staff. 
   
   
4. Move to Digital F&B Ordering
   Whether you are a restaurant, brewery, or any other venue offering food and beverage, move to digital ordering. Some platforms are clunky and will actually slow down your staff, so choose a platform carefully. Porter is one platform that has been able to reduce staff time by 50 seconds per order. That adds up to 58 hours of reduced labor per month at a small food hall! They also have found orders to increase by 20% in ticket size and tips are up 15%, so you save labor and generate revenue. Win-win!
   
   
5. Go Deep with FAQs 
   If you are answering the same questions on a regular basis, invest some time in a deep and engaging FAQ section to your website. This will save your staff time and offer customers a better experience. Even if you don’t have good news, providing quick answers to common customer questions are appreciated and will improve a customer’s perception of your brand. As you build out your FAQ, be sure to cover all of the common questions, but you can also branch out to add personality to the experience by answering less obvious questions, and you can make it more engaging with playful copy, video explanations, and demonstrations. And to help customers find this section of your site, here are Google’s tips for increasing your FAQ’s searchability. By investing in an engaging FAQ, you will improve the guest experience, increase traffic to your website, and reduce staff time in the process. | Bryan Taylor, Co-founder at Porter

Guest Blog | Togather Restaurant Consulting

The landscape of our industry is in constant flux. It seems that each day we wake up to a new obstacle on our horizon, whether it be rising prices from vendors, competing with the mounting employee wages in your community, or simply tackling the ongoing supply chain issues. Looking at these things from a broad scope can be overwhelming for many business owners. A question that begs to be answered is this: how do we achieve our financial goals when the economy seems to be pitted against us? 

We have seen plenty of restaurant owners scale back their operations lately. Menus are shrinking, hours of operation are dwindling, and table service is becoming a rarity. Many would consider this unavoidable in the current market climate. While these actions have been proven to help mitigate losses, it would be a disservice to ignore additional options for making a profit. Vertical integration is a fantastic opportunity to gain revenue elsewhere within your restaurant. Vertical integration, simply put, is when a company controls more than one stage of the supply chain or production cycle. This creates an avenue of potential income based upon commodities already found within your company. Some examples of vertical integration would include bottling and selling signature sauces that your restaurant produces, creating take and bake menu items for pickup, or perhaps even hosting cocktail classes taught by your bartenders. The possibilities differ for each restaurant or concept, and finding a lucrative vertical for your specific company might look different from your competitors. The key to creating the right vertical for you lies within your unique company. Take a look at the things that keep your regulars coming back and ask yourself how you can make them even more profitable. 

There are numerous benefits to utilizing vertical integration in your business. However, the strongest advantages include sustainability, quality, and increased market share. To help explain these notes, we will be using a hypothetical vertical. In the following scenarios, we will be discussing a fabricated Mediterranean restaurant called “Yamas”. They are pursuing a vertical that markets their tzatziki in bottles to local stores and vendors. Now, we can dive into the benefits of vertical integration. 
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• Sustainability: When businesses integrate verticals, their metrics for sustainability increase. How is this possible? Put simply, vertically integrated companies communicate more fully and crossover their staff, product, and ingredients. Efforts towards sustainability are more successful overall. This is due to the fact that their efforts are deeply rooted amongst multiple levels and move quicker than a standalone concept, as the order of operations becomes more concise. Consolidating staff and allocating resources appropriately ultimately save your bottom line, all while eliminating the middleman markup regularly found in production. For example, Yamas decided to bottle and sell their tzatziki. By creating a production line that is overseen by the holder of the recipe, and is being created by staff that has knowledge of said recipe, each facet of production is held to the highest standard and is executed by employees that have experience creating it. 
  
  
• Quality: Vertical integrations have a proprietary claim on their concepts, which ensures consistency amongst sister companies and concepts. “Trade secrets” are taught in house, and the ability to learn from within improves the overall caliber of each product. Streamlining your process can only benefit the quality of your creations. Through repetition, insider knowledge, and consistency, we see an elevated standard of production across the board. Our tzatziki line, Yamas, sees an uptick in customer satisfaction when each bottle produced is invariant and refined. 
  
  
• Increased market share: Increasing your market share means increasing the effort you put into sales as a business, and using new or additional strategies to help you get there. The higher the market share, the more stable your business can potentially be. Additionally, this helps deter competitors. It’s difficult to compete with a company that gains access to limited production. By creating a vertical internally, you are efficiently monopolizing your own market. This creates effective barriers for competitors to enter your market. Yamas has perfected their production line and has found an excellent strategy for receiving and maintaining their supply. This helps Yamas to expand their brand recognition and upset the market with leading sales in their community for tzatziki. 

In the end, there are many factors to consider when looking towards vertical integration. Before deciding to take on a project of this scale, ask what is to be gained from pursuing a vertical. Would creating a vertical be realistic for your company? What problem would it be solving? What opportunities would arise from your vertical integration? Can your business support an internal start-up? These questions can only be answered with data analytics, creativity, and ingenuity. Integrating verticals into your business has the potential to elevate your profit margins when executed correctly. While expanding horizontally seems to be an impracticability in a post-pandemic climate, we can always look vertically. | Kate Ratledge, Bar & Front of House Consultant. Togather Restaurant Consulting. 

​Guest Blog | Porter

We’ve all had those moments where digital tools were brought in for “convenience” — contactless check-in kiosks, smart TVs, digital menus — but end up being more frustrating than convenient. Instead of making life easier for your reduced staff, now they have to troubleshoot IT problems. And guests who were previously known by name are suddenly made to feel anonymous. 

Technology that isn’t elevating human experiences is compounding the problems we face in hospitality. That is because most digital tools have been designed to solve a financial problem, rather than trying to both solve a financial problem AND elevate the guest experience in the process. This has been especially true of the many attempts to streamline and digitize food and beverage experiences. 

When we set out to design Porter, a digital F&B platform to elevate the guest experience at food halls, restaurants, and multi-vendor establishments, we followed a design thinking process that you can practice whenever you consider adding a new digital tool or are thinking of rolling out a new service. Here are the stages of the design thinking process: 

Empathy
First, you need to sit in the seat of the person who will be using this tool / service / experience. You don’t start with defining what you are building. You don’t start with financial implications. You start by observing the guest experience and determining how you can improve it.

Rapid Prototyping
New tools need to work, but they also need to elevate how we feel about an experience. By building prototypes and watching guests interact with them — physically and digitally watching them — we are able to not only see how those prototypes work, but also how they make guests feel. We pay attention to what they say to their friends across the table. We can refine later and make our new tool more elegant, but for now we just want to see if it will truly solve a problem before we invest time and resources in a solution. 

Design
When we design to elevate a guest experience, we take that empathetic foundation and the lessons learned while prototyping, and we then design a moment that frictionlessly folds into the human experiences we are trying to improve. If we can make a guest’s experience feel smoother, more personal, and more memorable than it previously felt, then we have a successful design. If not, we need to go back to prototyping. 

Evolve
Once we build a useful tool or service, we can enjoy and celebrate for five minutes, but then we get back to work. We go back to watching, identifying where hangups happen, and discover where the frustrations occur. And then we evolve, because the world keeps moving forward and our tools and services need to adapt to those changes lest they end up becoming another clunky experience. 

Pulling it All Together
If you’re not familiar with design thinking, it is the process that is essentially outlined above, and it was the framework that we utilized to build Porter. As owners of three food halls, we wanted to solve one main problem: long lines. We watched as people would spend the first 10 minutes standing in multiple lines rather than with the people they came to be with. And before ordering a second round, they would again look to see how long the lines were before deciding whether it was worth leaving their friends and standing in line again.

These observations formed the empathy that we used to build some digital prototypes to test at one location. First we built a digital re-ordering tool for patrons who had already opened a tab. This first prototype was designed to simply see if patrons would use technology to solve the long line problem. And they did! The average number of rounds jumped to 3.4 rounds per tab. 

We had empathetically observed, built a prototype, designed the tool, and then went back to evolve as we learned more. Next we added the ability to preauthorize a card so guests could order from multiple vendors on one tab. Then we added the ability to create an account and store payment information. Today, average tickets are up 20%, tips are up 15%, 50% of our patrons use Porter to order, and our staff save 50 seconds per order placed digitally through Porter as compared to orders placed at the counter. 

We continued to observe, prototype, design, and evolve the tool at our three halls until we decided it was a tool that was worth sharing with others who were looking to elevate the F&B experience at their food halls, breweries, and venues. Anywhere that offers F&B, values efficiency, but is also looking to elevate the guest experience can now use Porter — which all started with a simple observation and a desire to solve a problem for our guests. 

So what problem are you looking to solve? | Bryan Taylor, Co-founder at Porter

Guest Blog | My Accounting Team

There are pros and cons for closing books monthly versus using four weekends per period

The Gregorian calendar has been around since 1582. Even then, there was controversy. Some parts of the world waited four centuries to adopt the new calendar. 

It now seems quite natural that we’d split our fiscal years into these same 12 months of the year. But this presents unique challenges for the hospitality industry. Over 99% of accounting is done by closing the books at the end of each month, then comparing this month against last month. Most who use monthly methods know to be cautious about seasonality. It’s obvious you can’t compare July to January. The results can be misleading. But the problems for restaurants go deeper than seasonality. 

To illustrate the challenges, consider this puzzle. In 2022, July has four weekends. August has five. In two years (2024), this will flip! July will have five weekends. August will have four. Many, if not most, restaurants do wildly different business on weekends and weekdays. Some are much busier, while others (for example, a central business district lunch spot) may be almost empty on the weekends. Comparing July and August is like comparing apples and oranges. The variation means that even this June versus last June can be similarly misleading. 

We can all imagine how difficult it was to shift the world calendars ten days back in 1582. This was before the advent of telegraphs, telephones, Internet and computers. Thankfully, modern accounting methods mean there are a couple of ways around this conundrum of extra weekends that comes up with monthly-based accounting. As with most solutions, there is a fast fix and a harder fix. The more difficult way is more accurate. The easier way is less precise. 

Some accounting firms have done both. From experience, we in the accounting world know that both have merits. It just depends on your needs and circumstances.

Let’s start with the most accurate way. Rather than dividing the year into months, we can divide it into thirteen periods. Each period has 28 days. Typically, the periods would be Monday to Sunday. Now see what we did? Each period is directly comparable. Each period has four weekends. Each period has the same number of days. Sure, there are still other seasonal factors. And we also need to manage a 364-day year (the IRS is not going to move away from annual returns any time soon). But these are relatively easy problems to deal with. (Also, the 28-day period also greatly simplifies cash planning, but we’ll save that discussion for another time.)

The above method of thirteen periods with 28 days each is accurate, yes. But it involves some heavy lifting. For example, rent is typically paid monthly, but with the 28-day methodology, every so often, the period won’t include a month end. Just like you may receive a batch of ingredients that are a bit different from the norm, or factors such as humidity or oven temperature can affect products–accountants have to adjust for variations, too. This month’s-end issue requires that we adapt, otherwise our comparability will collapse like a mishandled souffle. So, we record rent daily to accommodate this. 

There are a dozen other similar challenges. For many small businesses, this is overkill. If you need the simpler method, we’ve also done an adjusted month where we reduce or increase revenue and expense amounts to equalize the effect of the number of days and weekends. This has worked well when planning a new restaurant, because targets can be set and analyzed. (Note, these adjustments are purely for comparison purposes.) So, from a formal accounting perspective, we have a regular January and a regular February, and so on. 

If you’ve ever wondered why the irregular calendar months have created problems for accounting and forecasting, you’re not wrong. Think about how hard it was to reconcile all the calendar problems in the 16th century, when scientists and leaders took 37 years to strategize a plan to create the Gregorian calendar–and then it still took years for adoption.

Modern accounting doesn’t have these same problems now. We have tools and tips to address variability. We have the cloud. We have software. When restaurants and the food service industry face the extra weekend problem, we have reliable solutions. If you’re a small restaurant and want to keep things simple, we generally recommend the quicker fix. If you do complex costing and calculations, often the more elaborate solution can provide you with precision and clarity on cash flow and other important data. 

Don’t get lost in the seasonality and calendar conundrum. Talk with an accountant today about how to manage the extra weekends and get a handle of variability.

About:
Bruce Lange is the Chief Financial Officer of My Accounting Team (MAT). He has three decades of experience in Finance and Administration, having worked with organizations from small start-ups to multinational corporations like Oracle. MAT offers simple, secure, scalable cloud-based bookkeeping and accounting services. Contact Bruce and the team at MAT at sales@myaccountingteam.com or 541.844.1484.

​Guest Blog | My Accounting Team

Have you ever wished for a magic tool that forecasts costs and profit—and predicts the future? Since time travel doesn’t exist, there is no instant fix. But restaurants do have an incredibly powerful tool for looking ahead that’s underused: Standard Costing.

You’re probably familiar with the importance of COGS (Cost of Goods Sold). Industry practice often says that this shouldn’t be more than a certain amount (the standard is around 30%). Certainly, COGS data is useful. But there’s another approach that can dramatically increase profits. One accounting tool that is invaluable to running a more successful business based on real figures is Standard Costing. 

Relying on Cost of Goods Sold without getting Standard Costing is like getting a grade on a test, but not being told what was right, and what was wrong. We all need feedback to improve. That’s where Standard Costing comes in. Think of it as a “highlighter pen for profitability.”

Accountants are used to seeing blank stares when we ask, “What are your most profitable menu items?” Few things are more central to profitability. And yet, this data is often neglected. Predicting future costs is not like rent (where you quickly see what the rent hike impact will be). Relying only on COGS percentages may tell you there’s a problem. But that info can’t tell you where to look, or how to fix that problem. This is exactly where Standard Costing shines for restaurant owners and managers. 

So, what is Standard Costing? It’s an accounting tool to plan a more accurate budget. Standard costing lets you increase efficiency, raise profits and look ahead. Standard costing gives you what you need: a detailed understanding of both cost and quantity that go into a menu item. 

For example, let’s say you have a popular dish that uses an 8-ounce portion of chicken. If chicken is $2.50 per pound, the standard cost per plate for that chicken dish would be $1.25. Add up all the components. Now you have the standard cost. Subtract the standard cost from the menu price. Now you have the profitability for that item—at least from a theoretical perspective. We can make standard cost more accurate by adding in additional factors: wastage, shrinkage during cooking, portion control, and theft. Now we have something valuable. We shift from the theoretical to the real cost.

This detail is golden. You can use standard cost to enhance your business model. You can more realistically price menu items. You can investigate wastage. You can also promote certain items based on profitability.

But wait—there’s more. Say you have a business model forecasting COGS will be 30% of revenue, but it’s actually 33%. After analyzing your standard costs, you find that most items are around 30%. But a couple of items are 40%. Now you know what is causing the problem. Now you can decide how to fix it. Perhaps it’s re-pricing. Perhaps it’s revised portions. Perhaps it’s a combination of multiple changes. This is the power of Standard Costing. It’s like a magnifying glass to find and address red flags and potential issues. 

One more problem that Standard Costing solves is the large gap between your POS and bookkeeping data. This is every restaurant owner’s nightmare. You calculate the theoretical COGS from the items in your POS. But what happens when the actual bills are much higher? Where is the disconnect? It could be inadequate portion control, wastage, or theft. 

To solve this problem, you need a starting point. The overly broad analysis that “COGS is too high” isn’t much help. Standard costing, though, provides the data points so you make a few changes and get significant results.

Most restaurateurs understand that menu placement has a significant impact on order frequency. Standard Costing tells you which items are the most profitable, so you and your staff know which items to push. The same logic applies to promotions. Without Standard Costing, you’re guessing. Standards save time. Standards increase profits. Standards find problems. And standards help achieve goals.

Unfortunately, Standard Costing isn’t a magic fix or a “one-and-done” analysis. Material prices fluctuate. Doing this kind of analysis takes time. Most restaurateurs go into the business because they love the business, food, and communities. If sheet pans are more your style than spreadsheets, it may not be your task to do planning and profit management with Standard Costing. But it could be someone else’s.

About:
Bruce Lange is the Chief Financial Officer of My Accounting Team (MAT). He has three decades of experience in Finance and Administration, having worked with organizations from small start-ups to multinational corporations like Oracle. MAT offers simple, secure, scalable cloud-based bookkeeping and accounting services. Contact Bruce and the team at MAT at sales@myaccountingteam.com or 541.844.1484.

Guest Blog | Togather Restaurant Consulting

Gen Z is the first generation to have been raised entirely in the digital age, and there are numerous ways they are changing the world around them because of it. They’re buying more vegetarian and plant-based products, they’re eating local and fresh ingredients, and they’re ordering everything off of their phones. While we still have quite a few years before Gen Z generates their own buying power, we should look at their trending needs now so we can better understand this emerging market. 

Let’s talk about what it means to be raised in the late 90s and early 2000s. These people recall 9/11, the wars in the Middle East, and the economic crash of 2008 as their earliest childhood memories. Whether through reports on climate change, economic crises, or pandemic response, the people in this group have been raised in a tumultuous time. They are looking to change how humans function in society. These young people have hope in their eyes for a better future, and this affects how they interact with the world around them. 

Gen Z is more likely than any other generation to eat a vegetarian meal. Why is that? Statistics have shown that the meat industry is distressing the environment and incredibly expensive. Both the farming of meat and its transport have impacted this. Being raised in an era of political documentaries and environmental awareness, this generation is keenly cognizant of their personal consumption and its impact on the world. Therefore, they’re more willing to replace a meal with a vegetarian option if it means reducing their carbon footprint even the barest amount. So, let’s look at making tastier meatless meals. Great strides have been made in the meat-replacement market. We now have meat-replacement products that bleed hemoglobin-adjacent proteins so that you’re not losing that bit of flavor when you’re chowing down on a plant-based burger. Products like this are selling very well. Having these options excites Gen Z, and they’re willing to dole out an extra $2 for a meat replacement product. Small efforts can be made to integrate these products into your menu, all while easing the minds of a generation that cares about the impact of their dietary habits. 

Eating locally is also at the forefront of their minds. Gen Z is 75% more likely to eat from a restaurant that advertises locally-sourced ingredients (Source). There are a lot of factors for this, but the most glaring ones are the impact that cross-country distribution has on the environment, and the fragility of that supply chain became self-evident during the Covid-19 pandemic. From a young age, these people have had fuel emissions and carbon footprints on the brain, so it makes sense that they would be hyper-aware of how far their food traveled to get to them. Thankfully, food distributors have made it easier for us to shop locally – even large distributors can connect you with regional goods. 

Being raised completely submersed in technology has also impacted Gen Z. Many were toddlers when the first iPhones came out, and now their phones are permanently in their pockets. They don’t go anywhere without them, and the rest of the world isn’t too far behind. This has made dining out a completely different experience than we ever anticipated. Today, QR codes are quite common in restaurants and Gen Z has been the number one fan of this ordering system as of late. While some people prefer a more traditional approach to dining out, this generation is likely to opt for this human-less route of food ordering and delivery. Some restaurants are even looking at automatic food runners to cut down on labor as well.

With this understanding of Generation Z, let’s take a look at implementing these changes in your business. We don’t need to anticipate Gen Z dominating the market for a few years, as most of their buying power is sourced from parents and guardians. We won’t see major shifts in our market until they transition fully into independent life. Slating gradual changes to accommodate them, starting now, will put your business a step ahead of the times. Adding vegetarian meals to your menu, sourcing your ingredients locally, and using the labor-saving advantage of QR code ordering are great ways to draw the eye of this generation. Though young, Gen Z spent $111 billion on eating out in 2021 (Source), and that’s without factoring in alcohol sales. This market is only going to become more viable as Gen Z continues to grow – and we should be prepared to tap into it. | Kate Ratledge, Togather Restaurant Consulting

​Press Release | Khan Properties Group

After 13 years of dedicated service, Masudur Khan, has withdrawn as a member of Seaside Lodging Hospitality LLC, Doel Hospitality LLC, and City Center Hospitality LLC, which operate the Inn at Seaside, River Inn, and the SaltLine Hotel. Khan will be focusing on new business ventures in real estate development and hospitality as the Founder and CEO of Khan Properties Group.  

An award-winning hotelier and developer specializing in the hospitality and multifamily industries since 2009, Khan has grown his portfolio through dedication to providing the highest quality service to the hotel’s guests and developing properties to meet the current and future demands of the hospitality and housing markets. "We are deeply grateful for his skill, heart, and soul that he has put into developing and transforming our Seaside community. Now it's time for him to lead the way with his new ventures" says his current team at Khan Properties Group.

About Khan Properties Group:
Formed in 2020, Khan leads a team of industry experts he has formed to expand into the multifamily development and hospitality markets across the Pacific NW. Khan Properties focuses on a hybrid model of housing and hospitality specializing in renovation and expansion of existing properties as well as new construction projects. Additionally, Khan Properties Group has expanded its real estate portfolio into retail and food & beverage. Khan and his group are exploring partnerships with nationwide companies to further innovate and expand the residential and hospitality offerings in the area. Current projects and ventures include Ocean Crest Resort (Moclips, WA), Gilbert Block (Seaside, OR), and three multifamily developments in Seaside. The Ocean Crest Resort acquisition in Moclips, WA was awarded as a top three finalist for Acquisition of the Year by AHLA at the 2021 American Lodging Investment Summit (ALIS).

The COVID pandemic has impacted virtually every business in every category, but none so much as the hospitality industry. Restaurant owners and lodging operators are facing the most daunting challenge in anyone’s memory, and with many outdoor dining spaces closed for the winter, the forecast is even more uncertain.
​
My heart breaks every time I see another restaurant or lodging establishment close its doors for good. I think of the jobs that are lost and the dreams that are dashed. I think of the communities that are diminished in so many ways.

The Oregon Restaurant & Lodging Association doesn’t want to see even one more of our members shut down—so we’ve launched a program that comes to the rescue of Oregon restaurant and lodging establishments.

It’s called the COVID Cash Lifeline™, and it’s designed to deliver exactly what our state’s restaurants and lodging establishments need to recover and return to business as usual.

COVID Cash Lifeline™ Part 1: the Easy ERC™
The Employee Retention Credit (ERC) is a federal initiative designed to help entrepreneurs. Eligible businesses retroactively qualify for up to $26,000 per W-2 employee and will need to prepare and file amended Form 941s.

Sound complicated? Most small business owners think so—which is why less than 25 percent of eligible businesses have filed for the potentially hundreds of thousands of dollars in COVID relief for which they qualify.

And it doesn’t help that some of the CPAs who work for restaurant and lodging operators are unaware of the ERC or don’t understand the eligibility requirements.

The Easy ERCTM is the answer.
With the Easy ERCTM, busy business owners can turn to our COVID Cash Lifeline™ partner Adesso Capital to file for their ERC funds.

Adesso’s team of tax experts can estimate how much ERC money a restaurant or lodging operator qualifies for with a ten-minute phone call to our COVID Cash Lifeline™ ERC Support Center at 888.856.0630.

Then the Adesso team handles the entire complex and time-consuming filing process. They take care of all the ERC paperwork while business owners focus on running their establishments. Then Adesso monitors the progress of the filing until the owner receives their funds.

Adesso has helped thousands of restaurants and small businesses across the U.S. secure tens of millions in ERC funding, with an average of $125,000 in ERC assistance per filing.

What kind of difference would a cash infusion of $125,000 make for a struggling restaurant or lodging establishment?

COVID Cash Lifeline™ Part 2: Immediate Cash
Financing is so hard to come by for restaurant and lodging operators. Big banks turn down 75 percent of loan applications for small businesses. And even those entrepreneurs fortunate enough to get financing have to wait. And wait.

Now the wait is over.
Working with Adesso Capital, Oregon restaurant and lodging operators can get the cash they need in as little as two days. Adesso Capital offers innovative business financing options and preferred rates from its network of lending partners.

• Short-term cash flow problems? Solved.
• Long-term plans to build the business? Funded.

And while restaurant and lodging operators await the receipt of their ERC funds, they can get a head start on that money with an ERC advance loan. Business owners can borrow against their anticipated ERC relief funds and put their money to work right away.

COVID Cash Lifeline™ Part 3: Concierge Treatment
I can’t think of anyone who works harder than a restaurant or lodging operator. They’re at it 24 hours a day, seven days a week ensuring our favorite dish tastes just the way we like it, our evenings out are magical, and our overnight stays hit the mark.

It’s payback time.
Our COVID Cash Lifeline™ gives these hard-working entrepreneurs the personal attention and responsive service they can’t get from big banks or traditional lenders. The tax experts and lending professionals at Adesso Capital will show them the four-star service they deserve but so rarely receive.

Our Commitment to Oregon Restaurant and Lodging Operators
Every restaurant and lodging operator is a hero of mine.

It’s time these hard-working folks had a hero of their own, and our COVID Cash Lifeline™ is a good place to start.
We’re going to keep at it so we can ensure that Oregon’s restaurant and lodging establishments come through the pandemic and come back stronger than ever. | Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association

COVID Cash Lifeline™ and Easy ERCTM are trademarked by Adesso Capital. AdessoCapital.com/ORLA

Guest Blog | UnitedHealthcare

The current labor shortage in the Hospitality industry is real. According to Job List’s Q2 2021 United States Job Market Report: 60% of job seekers indicated they would not consider working in a restaurant, bar, or hotel for their next job. In addition, 38% of former hospitality workers reported they are transitioning out of the industry.  

Though there is no silver bullet for attracting and retaining team members, there are three things that employers can do to keep their current team members engaged that will also appeal to potential new hires: 

1. Create a positive company culture- People want to work for an organization that treats them with respect, has shared values along with a unified vision. 
2. Shape their growth and development- Help your team members achieve their short-term and long-term goals through continuous education and internal career advancement. 
3. Pay/Benefits- “Invest in the root and it will bear fruit!”

A recent Benefits Pro article on employee retention indicated that “88% of employees would consider a lower-paying job with quality health benefits.” The pandemic brought to light the absolute need for everyone to have access to healthcare, even part-time employees. Though health insurance may not be an affordable option for all hospitality employers, virtual care is an incredible alternative! With HealthiestYou by Teladoc, members and their families get free and unlimited access to the following virtual healthcare services:  

• 24/7/365 access to speak to a doctor who can prescribe medication
• Unlimited mental health sessions with a licensed therapist 
• Nutritional counseling with a registered dietician 
• Receive a second opinion on a major diagnosis from the world’s top experts

For more information on the HealthiestYou virtual care program, reach out to Nick Gates at Teladoc Health: ngates@teladochealth.com.

Guest Blog | Miller Nash LLP

Key Considerations for Virtual Restaurant Brand Deals

Though not an entirely new concept, pandemic-related shutdowns have hastened the growth of ghost kitchens and delivery-only virtual brands, opening up a new potential line of business for local restaurants looking to expand into the new world of app-driven purchases.

When talking about “ghost kitchens” – there are two primary types of venture to consider. The first involves a brick and mortar space (or food cart) that, through a licensing agreement with a virtual restaurant brand, handles fulfillment for the virtual brand out of its existing space, with its own staff and equipment, often in addition to operating its own brand. The second is a brick-and-mortar space that rents out a kitchen (or station within a kitchen) to restauranteurs. While the second form of “ghost kitchen” has its own set of unique legal considerations (including real estate and insurance issues), this article explores some of the key deal points to consider when entering into an arrangement for the first type of opportunity, the virtual-only brand deal.

General Considerations for Virtual Brand Licensing Deals
Over the past year, a variety of virtual brands have started offering local restaurants and food carts the opportunity to offer their delivery-focused concepts (for example, musician Mariah Carey’s cookie brand, and YouTube star MrBeast’s burger chain). In general, a virtual brand will provide recipes, certain know-how, and packaging/labels, together with a right to use the brand and fulfill orders in a given territory, and the brick-and-mortar restaurant or food cart will provide the facilities, equipment, staff, and ingredients to produce the actual orders as they come in. In addition to the basic division of responsibilities, other operational considerations include how revenue or fees are calculated and paid, what fulfillment platforms are to be used, the scope of the territory, and any promotional obligations of the parties. 

Among other terms to be negotiated on the legal front, consider:

• Who can terminate the agreement, for what reasons, and on how much notice;
• Whether the restaurant has a wind-down period to use packaging and other assets in its possession after termination (particularly in the event of a termination by the virtual brand);
• Each party’s minimum insurance obligations;
• Exclusivity provisions–including whether the restaurant can operate competitive virtual brands, and whether the restaurant is an exclusive partner within a given territory;
• Confidentiality obligations, particularly in the absence of a separate mutual nondisclosure agreement; and
• How and where disputes will be resolved (by way of example, it may not be practical for an Oregon-based restaurant to submit to exclusive jurisdiction of Florida courts).

Intellectual Property Licensing Terms
Intellectual property is at the heart of any virtual brand deal–the logos, trademarks, and trade names of the brand are arguably its most valuable asset, not to mention proprietary recipes, processes, and know-how that may be used by the restaurant throughout the fulfillment process. While the virtual brand will have an obvious interest in ensuring a brand licensing agreement clearly protects the brand’s intellectual property, restaurants should also pay close attention to the intellectual property provisions of an agreement. At minimum, a restaurant needs to ensure it is granted a sufficient license to perform its obligations under the agreement, and should seek to get a representation from the brand that its marks do not infringe on the rights of third parties (in addition to indemnification in the event of a breach of that representation). Another point to consider is which party should own any improvements to the intellectual property (which may be particularly relevant if proprietary recipes are part of the licensed assets). 

Particularly in the event of celebrity-driven virtual brands, note that your licensing agreement may ultimately be subject to a second licensing agreement further upstream giving a virtual dining company the right to use a celebrity’s name, image, likeness, and other rights. While this may ultimately not be a negotiable term, understand that your agreement may be terminable on short notice if those rights are no longer available for use.

Employment Considerations and Relationship of the Parties
Also essential to a virtual restaurant endeavor is clear definition of the relationship of the parties. Entering into a partnership or joint venture may have negative tax impacts and other legal implications, and in general, parties should enter into a virtual brand licensing agreement as independent contractors. For the protection of both parties, care should be taken to describe the employment relationship (or lack thereof) between the brand and the restaurant’s staff, who remain solely employed by the restaurant. 

In some cases, virtual dining concepts may be executed as a franchisor/franchisee relationship, subjecting the parties to the unique and often complex bounds of franchise law. While you should work with an attorney on any virtual brand deal, be sure to consult an attorney with franchise-specific experience if you are asked to enter into a franchise agreement or have questions as to whether your arrangement is really a franchising relationship.

These are just a few of many considerations for restaurants to consider when negotiating “ghost kitchen”/virtual brand deals. After the forced growth of digital ordering during the recent stay-at-home era, delivery-only concepts are likely here to stay, presenting an exciting growth opportunity for restaurants with additional capacity to fulfill online orders. | Nic Mayne, Miller Nash LLP


Nic Mayne is a business attorney with Miller Nash LLP. A graduate of Harvard Law, Nic’s practice focuses on reviewing, drafting, and negotiating contracts for businesses and individuals (including restaurants and celebrity virtual dining start-ups), such as intellectual property licenses and assignments; marketing and advertising agreements; manufacturing, distribution and supply agreements; and governing documents for various entities and joint ventures. Nic also guides clients through the M&A process and investment offerings. Nic can be reached at nic.mayne@millernash.com or 503.205.2336.

Guest Blog | Let us Nudge

Our beloved Oregon restaurant industry is slowly making a comeback and that is good news for everyone! Other states are also letting restaurants get back to full capacity, as they are trying to recover lost revenue during the pandemic. But new issues are slowly arising as several documented articles online discuss how customers want to stay longer, so the need for these restaurants to turn their tables is required more than ever. We are also hearing everyday how restaurants across the country have started using time limits for their customers. Some customers may not like this, but the opportunity to help this industry is something we should all be thinking about, for now and the future.
 
We all enjoy dining out at restaurants and don’t ever want to feel rushed by any means. Time limits can work, but maybe there is something else for the long run. What if there was a way our favorite restaurant could offer customers a secure, seamless, and subtle “nudge” to help us help them turn their table faster, especially if they were finished with their meal? What if there was a way where we could help the Oregon restaurant industry seat more customers, especially during busy times? What if the restaurant had an option to actually incentivize the seated customer finished with their meal to help turn their table?
 
Again, it is positive to see restaurants slowly coming back to full capacity, but the need to serve more customers can really help Oregon restaurant owners with their bottom line moving forward. Reservation systems are great, and they help restaurants fill seats. But sometimes the systems lag when seated customers haven’t left their table. This tends to build up the bottleneck in the entrance area, which happens often in popular restaurants. Large chain restaurants get extremely busy as well, where anxious customers are waiting with pagers and devices to get seated. Most of the time, they are waiting for the seated customer finished with their meal, to turn their table to get seated. Again, no one ever wants to feel rushed, but a restaurant incentive could help improve table turnover efficiency.
 
Research and data have shown that customers are usually satisfied by incentives such as a discount, coupon, or free food or drink item, if needed. Of course, the restaurant can offer this incentive, though it is a fine balance to not rush them or get them upset and lose them for future visits, negative social media reviews, etc. Ultimately, it is up to the seated customer to accept the incentive willingly and help turn that table for the waiting customers.
 
Restaurants have fixed costs, the same amount of rent, minimum staffing needs for the kitchen and floor, etc., that they rely on for their daily operations. Then there are variables that restaurants see such as an increase in sales, more volume of customers, and amount of average check that all account for profitability. These fixed costs stay the same no matter how many customers dine in or not. An incentivized approach can help spread the overhead costs over a larger number of paying customers, which can help the restaurant bring in more revenue.
 
The opportunity to be busy, turn more tables, make profits, etc. are everything restaurant owners want, especially with the most important item being the wonderful food and drink they provide on their menu. That food and drink experience is the reason we as customers enjoy dining out with our family and friends. But that disheartening feeling steps in when we arrive at our favorite restaurant and the wait line is literally out the door. Again, most of the customers inside have finished their meal, and are enjoying social conversations. But maybe that restaurant incentive could help them turn their table a bit quicker, so others that are waiting can enjoy it as well.
 
The restaurant has choices regarding whatever incentive they want to give, be it a discount off the bill, or a coupon for another visit, etc. The seated customers can accept or deny this incentive, as they choose. Turning more tables for the Oregon restaurant industry can help recover revenue lost during the pandemic. This recovery can help now and for the future, as the opportunity to turn tables at Oregon family-owned, casual-chain, and fine dining restaurants, will improve the dining experience for all. Visit letusnudge.com to explore opportunities. | Rehan Khanzada, Let us Nudge

Guest Blog | Dell Technologies

Data, data everywhere and not a drop to drink. Study reveals businesses are struggling to reconcile conflicting data realities caused by overwhelmed technology, people, and processes.

In 2016, Dell Technologies commissioned our first Digital Transformation Index (DT Index) study to assess the digital maturity of businesses around the globe. We have since commissioned the study biennially to track businesses’ digital maturity.

Our third installment of the DT Index, launched in 2020 (the year of the pandemic), revealed that “data overload/unable to extract insights from data” was the third highest ranking barrier to transformation, up from 11th place in 2016. That is a huge jump from the bottom to close to the top of the ranking of barriers to digital transformation.

These findings point to a curious paradox–data has the potential to become businesses’ number one barrier to transformation while also being their greatest asset. To learn more about why this paradox exists and where businesses need the most help, we commissioned a study with Forrester Consulting to dig deeper.

The resulting study, based on a survey with 4,036 senior decision-makers with responsibility for their companies’ data strategy, titled: Unveiling Data Challenges Afflicting Businesses Around the World, is available to read now.

Candidly, the study confirms our concerns: in this data decade, data has become both a burden and an advantage for many businesses–which one depends on how data-ready the business might be.

While Forrester identifies several data paradoxes hindering businesses today, three major contradictions stood out for me.

1. The Perception Paradox
Two-thirds of respondents would say their business is data-driven and state “data is the lifeblood of their organization.” But only 21% say they treat data as capital and prioritize its use across the business today.
​

Clearly, there’s a disconnect here. To provide some clarity, Forrester created an objective measure of businesses’ data readiness.

2. The “Want More Than They Can Handle” Paradox
The research also shows that businesses need more data, but they have too much data to handle right now: 70 percent say they are gathering data faster than they can analyze and use, yet 67 percent say they constantly need more data than their current capabilities provide.

While this is a paradox, it’s not all that surprising when you consider the research holistically, such as the proportion of companies that are yet to secure data advocacy at a Boardroom level and fall back to an IT strategy that can’t scale (i.e., bolting on more data lakes).

The implications of this paradox are profound and far-reaching. Six in 10 businesses are battling with data silos; 64 percent of respondents complain they have such a glut of data they can’t meet security and compliance requirements, and 61 percent say their teams are already overwhelmed by the data they have.

3. The “Seeing Without Doing” Paradox
While economies have suffered during the pandemic, the on-demand sector has expanded rapidly, igniting a new wave of data-first, data-anywhere businesses that pay for what they use and only use what they need–determined by the data that they generate and analyze.

Although these businesses are emerging, and doing very well, they’re still relatively small in number. Only 20 percent of businesses have moved the majority of their applications and infrastructure to an as-a-service model–even though more than 6 in 10 believe an as-a-service model would enable firms to be more agile, scale, and provision applications without complexity.

Achieving breakthrough together
The research is sobering, but there is hope on the horizon. Businesses are looking to revise their data strategies with a multi-cloud environment, by moving to a data-as-a-service model and automating data processes with machine learning.

Granted, they have a lot to do to prime the pumps for a proliferation of data. Still, there is a path forward, by firstly modernizing their IT infrastructure so they can meet data where it lives, at the edge. This incorporates bringing businesses’ infrastructure and applications closer to where data needs to be captured, analyzed, and acted on–while avoiding data sprawl, by maintaining a consistent multi-cloud operating model.

Secondly, by optimizing data pipelines, so data can flow freely and securely while being augmented by AI/ML; and thirdly, by developing software to deliver the personalized, integrated experiences customers crave.

The staggering volume, variety and velocity of data may seem overpowering but with the right technology, processes and culture, businesses can tame the data beast, innovate with it, and create new value. | Sam Grocott

For more information, visit The Data Paradox page and to learn more about the solutions and services that can help your organization break through the data paradox.

​For even more information and to get in contact with Dell Technologies, feel free to reach out to Steven Shipe, ORLA’s dedicated point of contact and account manager via email at Steven.Shipe@dell.com or visit www.dell.com/ORLA for program discounts.

Sam Grocott is the Senior Vice President of Business Unit Marketing for Dell Technologies.

Guest Blog | BYOD, Inc.

Most of the conversations I am having with restaurant colleagues these days involve any number of terms:  RRF, PPP, Covid-19, recovery, consumer confidence, and many more.  However, at my own restaurants the conversations center around one thing: staffing. In 25 years, I’ve never seen an employment pool as shallow as it is right now. While the economy is seeing wonderful recovery (the unemployment rate fell by another .3% last month adding almost 550K jobs, and the economy grew by 6.4% in Q1 and continues to skyrocket), we in the hospitality industry are not experiencing the same boom. Reuters reports that 5.6% of restaurant workers quit their jobs in April (an all-time high according to Gordon Haskett Research Advisors) and the bureau of labor statistics shows the hospitality industry came out of April still down more than 2.8 million workers from where it was pre-pandemic, with an unemployment rate of 10.8% compared to the national level of 5.5%. On top of that, I haven’t spoken to an operator in months where the phrase “severely understaffed” doesn’t come up. 
 
Though there are multiple drivers (unemployment benefits, governmental pandemic regulations, large wage increases in industries that weren’t shutdown, etc.) behind this situation, and we can all debate them until we are blue in the face. The reality of the situation is that a smaller and shallower hospitality employment pool is here to stay. With that sobering fact readily apparent after the last several months, we also are hearing a lot from “experts” stating the only way to attract workers back is to raise wages. With efforts from groups like the IRC as well as state and national government to push a $15/hour minimum wage it seems a bit like the industry is being pushed into accepting this new reality by bully pulpit and the peanut gallery. The problem seems insurmountable, especially considering the fact that industry wide we lost 110,000 restaurants permanently last year and almost $240 billion. However, the building blocks of an alternative solution to “raising wages and just keep raising them” are already in many other industries.
 
In the 1950’s the manufacturing and agricultural industries employed 1 in 3 Americans workers, but in 2009, it was closer to 1 in 8. What happened, you ask? Automation. We began to use machines, computers, and finally data to evolve how those industries work. Now I know I just lost some of you. For years people have told me how backward the restaurant industry is, and how technological behind we are. We’ve been slow to adopt new technologies and sometimes burned by the ones that we have. I hear the argument that while spending millions of dollars on technology might work for a big factory doing $1 million dollars a day in revenue, it can’t work for a restaurant doing $1 million in revenue annually. But that supposes that automation requires large physical infrastructure, expensive software programs, large implementation teams, and a number of other hurdles that make it very difficult for an industry that is made up of more than 60% independent operators to consider implementation.
 
Automation is something that the restaurant industry has championed for years (just ask McDonald’s), but it has approached it from the standpoint of unit replicability, when what we need to focus on as an industry is how automation applies to a single unit. Simply put, are there tasks that technology can do (perhaps better than humans) that can be easily and inexpensively implemented? The answer is a resounding yes – with machine learning and artificial intelligence. Why couldn’t an AI build a schedule better than an assistant manager? Crunch data and predict sales and staffing at better rate? Coordinate your ordering for you? Essentially remove all of the mundane “office” jobs that an operator deals with on a daily basis so that they can focus on more important tasks? If a manager could skip 50% of their paperwork to spend more time training the limited staff that they already have (because an AI did it for them), could that staff begin to handle a higher workload? If consumer interfaces could start with technology as a welcome funnel (QR codes, AI engaged CRM’s that auto-seat customers) could that allow restaurant to do more with less staff?
 
In the end, what I believe will come out of the pandemic is not necessarily higher wages, but a greater reliance on technology as an interface between management and staff as well as restaurants and their customers. Technology isn’t the only solution to the current job market, but it certainly seems like a more palatable one. | Samuel Short
 
Sam is the Chief Strategy Officer for BYOD, Inc., a Restaurant-focused Artificial Intelligence company. Sam also owns a restaurant group in Michigan and has spent the last 25 years in the restaurant industry. He served on the board of the Michigan Restaurant and Lodging Association for many years. 

Guest Blog | Portland General Electric

This past year has rocked all of us, but it’s been particularly rough for small business customers. From a world-wide pandemic, a summer of social unrest, wildfires that hit too close to home, and a historical ice storm, small businesses, and especially restaurants, have endured more than their fair share of challenges.

I watched as businesses were forced to change and adapt at a moment’s notice. Many were forced to lay off their staff and face an uncertain future. But even while overcoming these challenges, I was inspired by the creativity and resiliency so many demonstrated – businesses continued to serve their communities and show compassion for their neighbors with an Oregon kind of energy that’s resilient, innovative, and rooted in care for the communities they are in. It’s the kind of energy we celebrate at PGE.

Hospitality, that friendly welcoming nature that we’re so proud of, is the heart of Oregon. We love where we’re from and we all are excited to share our favorite local eats and hot spots. I’ve been touched by the stories of restaurants caring for those most in need and the way that communities have stepped up to support their favorite local joints.

I recently had the opportunity to sit down and visit with four local restaurants throughout the region. During our conversations, I was inspired by the stories these restaurants shared. Despite the numerous challenges, they have come to work every day and continue to be agents for positive change in their communities.

To show appreciation for these restaurants and yours, we’re hosting a restaurant week on PGE’s Instagram the week of July 5. We’ll be sharing the stories of these restaurants and asking our followers to share their favorite local restaurants. Want to get in on this social boost? Share your favorite local restaurant (yours included!) on your Instagram story and tag @PortlandGeneral with the hashtag #RestaurantWeek.

Thank you, ORLA, for being a great resource and unifying force for Oregon’s hospitality industry. As we continue to invest in the future of Oregon, we’re proud to make a $5,000 donation to the Oregon Hospitality Foundation. Keep up the great work!

For more information on resources available for your restaurant, please visit us at portlandgeneral.com/smallbiz. | Warren Parker III, PGE Senior Marketing Strategist SMB