​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.
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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

June 15-16 2021, Travel Oregon will virtually host the 36th annual Oregon Governor’s Conference on Tourism. The Oregon tourism economy has been devastated by the coronavirus pandemic. In 2020, of the 178,200 payroll jobs lost in Oregon, 81,600 of those (or 47%) were in the leisure and hospitality sector. And while visitors to Oregon spent $6.5 billion across the state in 2020, this was a 49.5% decline in visitor spending from 2019.

The 2021 Oregon Governor’s Conference on Tourism is an opportunity for approximately 500 travel, tourism, and economic development professionals to gather (virtually)to find new inspiration, dive deep into educational topics, and look ahead as we begin to rebuild the tourism industry and Oregon’s economy after a tumultuous year.

Educational breakout session descriptions are now accessible on the conference website. Sessions include exciting speakers that will focus on destination stewardship, working with elected officials, amplifying your role with the local tourism ecosystem and more. Additional information will be added as it becomes available.

We invite you to register for the 2021 Oregon Governor’s Conference on Tourism here. 

Opening Session Keynote
To kick off this year’s conference, Frank Cuypers, senior strategist at Destination Think, will unpack the future of travel and tourism after COVID-19, and the changes and opportunities that lie ahead. So many aspects of the tourism industry remain unknown: How will travel and tourism look after Covid? What changes will we see and what other challenges might the tourism industry face in the future? How do we lead destinations through and out the other side of the pandemic? This discussion will inspire destinations to think about ways they can evolve and build resilience.

Reflecting on the past: Building an equitable tourism economy for the future
The conference will close with a session that showcases tourism industry leaders as they reflect not only on the impact the pandemic has had on their businesses but also how they have continued to be committed to diversity, equity and inclusion (DEI) in their work. Hear stories from our tourism leaders and partners who have both championed DEI for their work and their communities.

Exciting partnership with Burgerville and DoorDash at conference
Travel Oregon has partnered with Burgerville and DoorDash to support local restaurants and food suppliers during the Governor’s Conference.  Burgerville’s suppliers include Oregon favorites like Alpenrose Dairy, Camas Country Mill, Carman Ranch, Champoeg Farm, Country Natural Beef, Face Rock Creamery, Jacobsen Salt, Liepold Farms, Our Table Cooperative, and Rogue Creamery.

By registering for the conference by May 26, you will receive a $15 gift card to enjoy lunch on June 16 or as you’re able. We will miss you joining us in person, but we encourage you to continue to support the resiliency of our local restaurants, incremental efforts can go a long way.

Stakeholder Workshop: A Transformational Strategy for Oregon Tourism
Following the 2021 Oregon Governor’s Conference on Tourism, Travel Oregon invites you to join us for interactive workshop with our strategic planning firm, Destination Think, on June 16 from 3:30-5 p.m.

As we launch into the development of Travel Oregon’s longer-range visioning and strategic planning effort, it is vital we hear from you: Oregon’s tourism industry. We would love to gain diverse perspectives that have the potential to drive change and help inform the foundation of our four-year transformational strategic plan. Your participation is crucial and valuable to help transform the future of tourism in Oregon. Register for the stakeholder workshop here.

Guest Blog | GNSA

What Employers Need to Know
 
Payroll processing has a lot of moving parts. Before paying an employee, you must consider several variables, including the minimum wage, hours worked, overtime, allowed deductions, tax, and more.
 
Understanding federal and state laws regarding payroll is essential to avoid disputes with employees and the government. Keep in mind that if you do not have the resources or bandwidth to understand the legislation or comply with it, an Oregon payroll service might be right for you.
 
Here are vital items employers in Oregon need to know about payroll.
 
Oregon Minimum Wage
While the current federal minimum wage is $7.25 per hour, Oregon minimum wage figures are much higher, and can be dependent on a specific locale or city. The minimum hourly rate is $11.50 in urban areas, $12.00 in standard counties, and $13.25 in the Portland metro area.

Oregon minimum wage law requires you to pay the most beneficial rate to the employee, which is the state minimum wage. The minimum wage requirement applies to all paid workers, including minors and employees on official training. It increases every July 1st, but this trend will change after 2022.

Starting July 1, 2023, the state's minimum wage will increase depending on inflation as per the Consumer Price Index. This inflation-based minimum wage rate is becoming increasingly common in many other states now as well.
 
Workdays and Hours Worked Requirements in Oregon
A workday, according to Oregon minimum wage law, is a fixed period of 24 consecutive hours. On the other hand, a workweek is a specified period of seven successive days that occurs regularly.
 
Businesses have to pay employees for all hours worked. Oregon's minimum wage law defines hours worked as all hours an employed person commits to their employer. This includes the time an employee is on duty at the employer's premises or engaged away.
 
Further, Oregon recognizes work requested as well as suffered or accepted unrequested work as hours worked. If an employer doesn't want a worker to perform work, the employer must ensure the employee doesn't do it.
 
Payroll Tax in Oregon
Oregon requires employers in or operating within Oregon to withhold tax from wages paid to residents working in or outside the state. They must also do the same for nonresidents who deliver services in Oregon.
 
An employer with paid employees in Oregon needs to register for a business identification number (BIN). Corporations without workers should also have a BIN to report remuneration for corporate officers.
 
Oregon withholding taxes and federal taxes are due on the April 30. Unemployment and transit taxes are due on the last day of the month following a calendar quarter. If you pay federal taxes electronically, you should do the same for your combined payroll taxes.
 
Oregon Requirements for Deductions from Wages
Oregon has strict rules governing how an employer can withhold or deduct part of an employee's wages. As the employer, you can only make deductions if:

• The state or federal law requires you to do so.
• The employee has authorized a deduction by writing for their own benefit.
• The employee voluntarily authorizes a deduction for some item, provided you aren't the ultimate recipient of the money.
• The deduction is a garnishment under Oregon Stat. 18.736.
• A collective bargaining agreement in which you are a party authorizes the deduction.
• You're making the deduction upon a worker's termination to repay a loan you gave them.

 
However, there are many instances where the state prohibits you from deducting or withholding any amount from an employee's wages. Examples include deductions to cover:

• Cash shortages
• Returned or dishonored checks
• Damaged or lost employer's property
• Tools, uniforms, and other items required for work

 
Oregon Pay Schedule Rules
Every employer in Oregon must establish and observe a regular payday when they must pay all employees the wages due to them. However, section 652.120 allows you to enter into a written agreement with your workers to pay them at a future date.

Typically, the payday should not extend beyond 35 days from the day you engaged an employee or since the last regular payday. Employers are free to establish and maintain more frequent pay intervals.

Wage Payment Methods in Oregon
You can pay your employees by cash, check, or direct deposit. A payment check should be redeemable at face value with no deductions by the employee's bank. If you want to pay via direct deposit, payroll card, ATM card, or any other electronic means, the employee must consent to it.

Electronic payment methods should allow the employees to withdraw their net pay once cost-free. A worker who wishes to revoke their consent to electronic deposits must issue you with a written notice. The revocation becomes effective 30 days after you receive it.
 
Oregon Employee Time Reporting Requirements
Oregon requires employers only to compensate workers for hours worked. Therefore, you don't have to pay an employee for showing up or reporting if they don't work. Additionally, you don't need to pay a worker the minimum number of hours if you dismiss them before completing their shift.
 
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To read the full article (originally posted on gnsadmin.com April 5, 2021), including more info on travel time regulations, on-call time guidance, Oregon final paycheck requirements and statement of wages, visit GNSAdmin.com.
 
 
About
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GNSA is a Payroll, Human Resource, and Benefits Administration firm specializing in serving the small to middle market. Started in 1997, GNSA has steadily grown from year-to year as more and more companies have identified GNSA as the premier outsourced service provider. At GNSA we believe that the strength of the United States economy resides in the small to mid-market, therefore GNSA has focused its efforts towards better serving this segment.