As guardians of hospitality establishments, hotel security personnel play a crucial role in ensuring the safety and well-being of guests. Beyond the expected tasks of preventing theft or maintaining order, hotel security professionals have the power to save lives by being trained to identify and respond to signs of human trafficking. Human trafficking is a pervasive issue that often thrives in the shadows of hotels, making it essential for security teams to be equipped with the knowledge and skills to spot potential cases so they can safely intervene.

Understanding Human Trafficking
Human trafficking is a complex crime that involves the exploitation of individuals for labor or commercial sex acts through the use of force, fraud, or coercion. In the context of hotels, victims of human trafficking may be brought in by traffickers who use these establishments as venues to exploit and control their victims, and to meet sex buyers.

Potential Signs of Human Trafficking
Recognizing the warning signs of human trafficking is paramount for hotel security personnel in identifying and addressing potential cases. By understanding the indicators of trafficking, security teams can act as front-line responders in safeguarding vulnerable people who may be at risk.

Physical Indicators
Physical signs of human trafficking may include untreated physical injuries, bruises, or other visible injuries. Victims of human trafficking may show signs of neglect or abuse, which can be detected by observant security personnel during routine patrols or interactions.

Behavioral Indicators
Behavioral cues can also signal potential human trafficking situations. Victims may exhibit fear, anxiety, or a reluctance to engage with others—especially when accompanied by controlling individuals who might speak on their behalf. Security staff trained to notice behavioral patterns can intervene and provide assistance to those in need.

Presence of Control
One of the key indicators of human trafficking is the presence of individuals who exert control over another person’s movements, communication, or decision-making. In hotels, security personnel might encounter situations where guests are not allowed to speak freely or appear to be under the influence of another party. Recognizing these controlling dynamics can help security teams identify and support potential victims of trafficking.

The Role of Hotel Security
Hotel security staff can be the first line of defense in combating human trafficking within the hospitality industry. By receiving proper training and education to be able to quickly recognize the signs of human trafficking, security teams can make a significant impact in preventing these crimes and providing support to victims.

Training and Collaboration
Training hotel security staff to recognize and respond to human trafficking is essential in creating a safe environment for guests and employees. BEST’s Inhospitable to Human Trafficking training, is a fundamental tool for property training all hotel employees, including security teams. Security personnel can collaborate with local law enforcement agencies to report suspicious activities, share information, and assist in investigations related to human trafficking cases occurring on the hotel’s premises.

Impact of Training
Equipping hotel security personnel with the tools to identify and address human trafficking can have a profound impact on the lives of victims who are often suffering from extrema trauma and abuse. By intervening and connecting victims to supportive social services, security teams can help break the cycle of exploitation and provide a path to safety and recovery for survivors of human trafficking.

Conclusion
Hotel security staff play a critical role in combatting human trafficking and ensuring the safety and well-being of all individuals who pass through their doors. By training security personnel to recognize the signs of trafficking and empowering them to take appropriate action, hotels can create a safer environment for guests and contribute to the fight against this pervasive crime. It is imperative for hotels to prioritize training to be able to spot human trafficking in order to protect vulnerable people and ensure the safety of all guests. | Katie Amodei, BEST


Katie Amodei is the communications director for the nonprofit, Businesses Ending Slavery and Trafficking (BEST), which is a dedicated to working with businesses to disrupt human trafficking. BEST provides awareness raising, consultation, and training for businesses across the United States.

PRESENT REALITY

Do you remember the first time you went out to dinner? The first meal you had in a public space when you were young? The first booth you sat in, the first menu you looked at, or the first time you were asked if you’d saved room for dessert? Most people don’t. And most of us don’t because eating at restaurants is such a normal part of our lives. Maybe it’s once a month, maybe it’s a few times a week, but we all go out and enjoy our favorite dishes at our favorite spots as often as is desired and financially reasonable. It’s ingrained in the way we live, the way we were raised. It’s ingrained in our culture to the point that we assume we’ll be able to do it tomorrow. We take the experience, and the ability to enjoy that experience, for granted. And eating where we like, at the times that we like, with the people that we like, as a concept, is heading at a medium speed towards an immovable object – the increased cost of everything.

My name is Joseph Hollcraft, and I’m a business broker at International Business Associates. I focus on the hospitality industry in Oregon, I’m an allied member of ORLA, and, along with every member of the firm I’m affiliated with, I am an expert at determining the market values of privately held companies, family-owned businesses, and affiliated commercial real estate. As IBA’s lead intermediary in the hospitality industry in Oregon, I screen every food and beverage industry lead that comes into our Oregon office.  Historically, IBA as a selective business brokerage firm, took on as clients 1 in 3 hospitality industry business owners who approached us for representation. The reasons for passing on projects in the past have ranged from “foggy” financial records to unrealistic expectations on value. The number of restaurants or bars, post-pandemic, that I’ve found to be marketable enough to take on as a representation project has been significantly reduced from this 33 percent.  My most recent transaction was Saburo’s Sushi House, a business I helped Saburo and Joyce Nakajima successfully sell earlier this year.

IBA has a reputation in the marketplace for representing businesses that are doing well where people are executing on their vision, doing what they enjoy, and making money.  These entrepreneurs don’t need to sell, they want to sell when they call IBA. The number of people who are calling me in this position in 2024 is greatly diminished. This fact, and my concern for the industry at large, is what motivated me to write this article.

Keeping active recognizance on the hospitality industry, I have had serious, thoughtful, heartstring tugging discussions with the owners of enough businesses in this sector to see the writing on the wall: the restaurant and bar model that transformed Portland into a food mecca is no longer a highly profitable way to make a living. This opinion is backed up by industry experts, the firsthand reports of restaurateurs, and math. There is no getting around the fact that as the prices of labor and cost of goods increase, while the buying power of patrons remains stable, profit percentages for business owners will inevitably decline.

First, let’s look at labor costs. In 2020, the minimum wage in Oregon was $12.00. As of July 1, 2024, the minimum wage in Oregon is $14.70. Servers, bartenders, expediters, and hosts traditionally are paid at that minimum wage rate. Few people can live on minimum wage, so all of these front-of-house jobs traditionally rely on tips to make up the difference between minimum wage living and the middle class. A server at a restaurant with an average plate cost of $14 and two drinks that average out to about $16, with an average seating of three people per table, and turning four tables an hour, makes, with tips, about $54 an hour after a 40 percent tip out. This assumes an average tip rate of 18 percent and includes the current minimum wage.

When the minimum wage was at $12.00, the hourly wage of the server above was about $51. But to the restaurant owner, the move from $12.00 per hour to $14.70 per hour was a 22.5 percent increase in the base cost of labor. This is before an employer’s contribution to local, state, and federal taxing authorities that are based on the wages of their employees. Assuming that labor initially accounted for 30 percent of total expenses, this extra $2.70 per hour per employee leads to a 6.75 percent decrease in the bottom line. In many cases, restaurants pre-pandemic were operating on a profit margin of 6 to 15 percent. Current day, and assuming these numbers, that brings the net profit to ownership to between -.5 and 8.5 percent. This explains why I and others that participate in the restaurant industry are starting to see closure after closure of businesses using a model that worked well five years ago, or short staffing with increased ownership/family participation to just get by.

Let me ask you a question: if you knew going into it that you would be managing your business 60 hours a week, dealing with the intense responsibility of some large number of employees and customers scrutinizing and relying on your decisions, experiencing the stress that is inexorably imbued in business ownership, and for this would earn a profit between 0 and 8.5 percent, would you move forward with the investment of your personal capital or take out a loan that would use your home as collateral?  Because this is where the momentum towards that immovable object comes from – the vast majority of restaurant startups and acquisitions rely on SBA lending.

The SBA, or Small Business Administration, is a federal government agency that guarantees loans made for the purposes of starting, enhancing, or purchasing a business. The SBA establishes rules and guidelines, but it does not, itself, give out loans. Instead, it guarantees a significant percentage of a loan given out by a lender. SBA lenders must follow SBA guidelines to get their loan guarantees. But they are on the hook for the percentage not guaranteed which leads them to be thoughtful about who they lend to. They look at experience, personal financial strength, the assets of the borrower, the assets and history of the existing business (If an acquisition loan), and the borrower’s business plan and industry to determine whether the risk associated with making the loan makes sense.

During the first phases of the pandemic, restaurants were going out of business at a terrifying pace. Lenders noticed this and almost all of them stopped offering SBA loans to people trying to open or buy restaurants. This was the result of what had become, in the opinions of the underwriters at these lending institutions, too big of a risk. 

Restaurants go out of business all the time. There is a natural life cycle to most businesses in most industries, restaurants aren’t an exception. As restaurants naturally come to their end-of-service, it’s almost always been the case that the SBA has been there, ready to fill that vacant kitchen with a new tenant. But now we have to ask the question the lenders will be asking – if the average profit margin of an industry is 0 to 8.5 percent, can that profit margin have room in it for both a business owner to make a living and the debt from a loan to be serviced? When the industry is the mid-priced mom and pop bar or restaurant, the answer will be the sound of our collective dining experience making firm contact with that immovable object. 

As these restaurants go through their natural life cycle and eventually close, and as that profit margin continues to shrink as the result of increases in the cost of labor (and we’ve yet to mention the increases in cost of goods, which have also risen dramatically post-pandemic), lenders may begin to see restaurant loans as more and more risky yet again and elect not to fund SBA loans for restaurant acquisitions and new food service start-ups. As the increases in costs we’re currently seeing have no buffers in place, it is not a question of if but of when. And if lending begins to dry up, the only fundable business models will be ones with very high costs to customers, or a very low cost of labor. Fine dining, counter service, or food trucks. Take your pick, but they may soon be the only options. The era of the successful, mid-market mom and pop restaurant in Oregon may too quickly be coming to an end.
 
THE NEW PATH

When the obstacles are insurmountable, and the road behind you doesn’t offer a safe retreat, what course of action is left to you? It’s time for the restaurant and bar industry in Oregon to forge a new path. I’ve laid out the situation business owners in this sector face. The following is a series of possible, tested solutions. 

Increasing Value – The Shortest Line Between Two Points 
Business valuation is a sophisticated, nuanced process. It is primarily based on cash flow over the previous 12-18 months, but many factors come into play. There’s an art to it, a subjective science based on experience, industry research and knowledge. But there are consistent rules, the most basic of which is that the more money an owner makes, either through write-offs like non-reoccurring depreciation expenses, direct W-2 wages, or personal discretionary expenditures run through the business, the more money the business is worth.

To that end, my first piece of advice is this: get shift hours off the floor. Whether you do this by taking shifts yourself, passing them off to the salaried employees, or reducing worker hours directly, a small daily reduction can lead to a substantial amount of value at time of sale.

This is in large part because business valuation uses a multiplier. A multiplier is a number, usually between two and six, that the net proceeds to ownership are set against. If your multiplier was three to four, and you made $250,000 (excluding your labor contribution at a fair market rate) in the past 12 months, then that would put your business’s value between $750,000 - $1 million. Taking this to the practical level, if you remove six hours of shift a day from the floor, and let’s say you’re open 300 days a year, and further that each of those six hours is worth minimum wage + $1.30 in costs like workers’ comp and payroll tax, then those six hours a day add up to $28,800 annually. At a multiple of 3.5, this change in your business model adds up to $100,800 in additional value at time of sale. If you choose not to sell, that $28,800 goes to your coffers to do with as you wish.
 
Reducing labor costs isn’t a new invention. It’s generally a thing done with some degree of pain, especially for a small mom and pop that has strong relationships with their employees. The reality though is that if the restaurant or bar you own or manage goes out of business then everyone loses their job. This is the type of hard call that, in my experience, separates the talented entrepreneurs from the passionate hobbyists. I’ve had conversations with something approaching 100 business owners in the last four years. The thing that distinguishes the average from the good, and the good from the great, is their ability to see the landscape their business operates in with clarity and then make the right decision, regardless of how hard that decision is. I’m a resource available to anyone reading this should you wish for an analysis of your business and a conversation around ways to increase profitability.

The Service Fee Model
There is a restaurant on the East side of Portland, just off the main thoroughfare of Morrison and close to downtown, called Kachka. Established in 2013, they’ve been through the boom and the bust of the Portland restaurant scene. During the most worrisome parts of the pandemic, when customer-facing brick and mortar businesses were closed or, in the case of restaurants, take out only, Israel and Bonnie Morales, the owners at Kachka, made a hard call. They eliminated tipping at their restaurant and instituted a service fee of 22 percent. This service fee goes directly to the top line of Kachka’s books as income and brings with it both benefits and challenges.

The decision to move to a service fee model wasn’t taken lightly. Israel and Bonnie reviewed models and found that, given the options in front of them, a service fee model was not only the most likely path to success but potentially the only one. In a series of meetings with management and the staff, they began instituting their plan. They understood the importance of staff buy-in. To that end, the first move ownership made was to increase the wage of their management team. 

Traditionally, restaurant management is salaried and makes far less than the front-of-house employees they’re tasked with supervising. This is an upside down model that Israel and Bonnie thought should change. Restaurant management is often responsible for everything from ordering, scheduling, inventory, to filling in shifts when needed. For them to be compensated at a rate approaching 50 percent of the staff they manage just doesn’t make sense. This generally isn’t the case in any other industry. 

With this first change a couple of things happened. The first was that management’s standard of living rose. Some were able to buy houses for the first time, and they were all more satisfied at work. That bred a loyalty to the company that lent itself to bringing the rest of the staff on board with the new model. Additionally, a path of upward mobility opened up for the general staff. In the old model, a server would take a financial hit should they choose to take their skill and experience to the next level in the corporate structure. Now, getting promoted to management has position, experience, and financial benefit. This brings a sense of “top down” order that most restaurants currently lack.

The next step was to increase the benefits package to Kachka’s employees. Israel and Bonnie reduced the minimum number of weekly hours necessary to qualify for healthcare from 30 to 17.5, with 17.5 being the legal Federal minimum. “Healthcare is a human right,” says Israel. There is new PTO and vacation pay for management, as well as the ability for all staff to use their state mandated sick leave as flex pay. Twice a year, the management team opens the books at an all-hands meeting, discusses the profitability for the period, and, if profit is substantial enough, hands out profit share checks to vested employees at all staff levels. Imagine being an 18 year old dishwasher making $25 an hour and being given profit share, flex leave, healthcare, and having a clear path of upward mobility. This is not how restaurants are done, but, as Israel and Bonnie are proving, it can be.

The challenges, though, are substantial. With the removal of tipping in lieu of a service fee, the wage paid to staff had to go up. Way up. That brings with it ancillary costs. Workers’ compensation insurance, for example, is based on total payroll. When your payroll doubles, so does your workers’ comp bill. Employer contribution to taxation at the local, state, and federal level all went up as well. And they lost the tip credit that every business with tipped employees benefits from. 

Changing to the service fee model has benefits to staff and the business, as well as hurdles that need to be effectively navigated. But there is a third component to the switch to a service fee model: public opinion. There have been restaurants that have tried this and been met with backlash, not just from their employees, but from the general public. A perception exists in some parts of Oregon that businesses and their owners are perpetually wrong-headed and anything other than total loyalty and commitment to the quality of life for employees is incorrect. This perception, while false, is potentially an issue any owner switching to a service fee model will have to take into consideration. Judging by the experience of Kachka, management buy-in can help tremendously, but that won’t stop the public from potentially attacking a business on social media. The final component of the successful, broad market move to a service fee, should that be where the future takes the industry, is political action in the public sphere. Should the task towards service fees be taken up by restaurant and bar owners as a whole, it will become incumbent on those with influence in the public sphere to spearhead a campaign that makes the realities around this move crystal clear: if something doesn’t change, a way of life we’ve all enjoyed since childhood will simply go away.

Looking Forward – Positioning A New Restaurant At The Outset
Aaron and Jessica Grimmer, long time Portland residents and the former owners of seven different food and beverage businesses are opening their latest endeavor in a post-pandemic landscape fraught with challenges. Their two most recent businesses, Picnic House and Bar Low, both fell victim to the changes in the downtown landscape during lockdown and immediately after. Formerly located across from the Arlene Schnitzer Concert Hall, they were a huge hit with the pre-show crowd, as well as with daily patrons from the surrounding office buildings. 

Their new endeavor is named “High Noon.” The concept is simple – deliver high-quality food in a high-quality atmosphere while not alienating customers based on price, dress code, or a haughty attitude. “What made Picnic House and our other projects so successful was that we priced them to be elevated, but not unreachable. We would rather our guests visit us regularly as opposed to only for special occasions. That being said, we do need to maximize our PPA (per-person average) and the value of each seat for each turn. Our menu will reflect a high value to guests as well as highest return on investment.” 

“On the COGS side, it’s really important to construct a menu that relies upon ingredients that are price stable and seasonally available,” said Aaron on the topic of cost management. “We all know food prices have gone up, but a big challenge for restaurants is actually unpredictable fluctuations in pricing. With properly planned menus and using technology such as MarginEdge (an app that monitors your COGS), we won’t be caught off guard with suddenly shrinking margins or having to scramble for ingredients that are hard to find.”

Aaron and Jessica also believe in a holistic approach to management. They involve their staff at the base level to ensure higher quality control and buy-in towards cost savings: “We see value in teaching our team the importance of cost management. We found when we get staff engaged and invested in the menu construction process, they’re more likely to be more pro-active when it comes to managing waste and keeping COGS within a healthy margin.”

Experienced labor, the kind that Aaron and Jessica insist on, comes with a cost. “As far as labor goes, Oregon (and Portland especially) has a lot of challenges when it comes to keeping labor costs in check. We remember feeling the labor pinch back before COVID and the environment has only become more challenging since then. And we can’t just directly pass these costs on to our customers in the form of higher prices. We have to be more creative.”

One interesting idea to enhance take home pay for food service workers being floated by both Presidential candidates, as well as Oregon’s state government, is to eliminate income taxes on tips.  The devil will be in the details of the final bill(s), but they would hypothetically result in more take home dollars for low- and middle-class workers and create an incentive to enter the food service profession.  The most important takeaway is that from main street to Washington DC, people are talking about wages and benefits for food service industry workers. 

When you have a plan, make sure you have a back-up plan as well. “We’re also considering other ways to make the numbers work. Some restaurants in town have gone to a service charge model in order to cover labor costs and create a more balanced wage distribution between front and back of house. While we’ve yet to decide if that’s the right path for us, our goals are to create a unique and quality guest experience, pay our staff a fair and living wage, and be financially successful. This is the biggest (even existential) challenge our industry is facing right now and we’re all working together to find innovative solutions.”

There is no “right” way. There is no one path. That immovable object isn’t going anywhere and if you, as a food and beverage industry business owner or employee, can make it through to next year, and the year after, and the year after that then you should be lauded for your successes and rewarded with appropriate financial compensation. But the old way isn’t working anymore. Restaurants more than any other type of business are bastions of culture and inclusion. They allow us to experience the flavors and traditions of the entire world simply by showing up and sitting down. We can’t, we can’t, we can’t lose those experiences or deprive them from the future. It’s incumbent on all of us to support, encourage, and preserve this way of life. | Joseph Hollcraft

Culinary tourism is alive and well in Oregon, from the Willamette Valley winery tasting rooms, to the Hood River Fruit Loop, and the seafood offerings at the Oregon Coast. And don’t forget the many events, festivals, farmers markets, and more that engage visitors in an experiential celebration of place and taste. The agricultural bounty here lends itself to the production of world-class food and drink which can be enjoyed in each of Oregon’s seven tourism regions. 

Whether you work in foodservice already, or engage in hospitality and tourism in other ways, you probably know many food lovers at heart, actively seeking that next mouthwatering bite. When it comes to dairy foods, there are no shortage of delicious experiences to enjoy throughout the year. Here in Oregon, we are proud to be home to over 140 Grade A dairies, 4 sustainability award winners and a number and creameries, cheesemakers and processors who are recognized nationally and internationally for their award-winning products.

Where to start? Start right here in Portland and start NOW!

September is Oregon Cheese Month!
Oregon Cheese Month is a celebration of our state’s artisan cheesemakers and their wares at retailers, cheese shops, restaurants, and farmers markets around the state during the month of September. Look for the Oregon Cheese logo to find delicious local handcrafted cheeses. 

The month is capped this year by The Wedge, a Portland area farmers market-style festival celebrating cheese and everything that goes with it, where event goers can sample and purchase local artisan cheese, specialty foods, wine, spirits, and cider. This year’s event is open to cheese lovers 21 and older.

• Where: Alder Block, home of the Portland Night Market, 100 SE Alder St., Portland 97214. This is an indoor and outdoor event and will be held rain or shine!
• When: Saturday, September 28th, 2024, 12pm – 5pm (VIP early entry at 10:30am).  
• Tickets: https://thewedgeportland.com/​

​Labor Day occurs on the first Monday in September as a national holiday. Labor Day has a long history of how it came to be a symbol of labor rights and freedom, all thanks to the workers of the past.

Labor Day was not always acknowledged as an official federal holiday. Originally, it celebrated the earlier labor classes and by only individual activists and states. The first celebration was in 1882, and it was organized by the Central Labor Union.

Back then, the average worker was not always appreciated for their work. In fact, they were often exploited for their labor to industrialize the country. Many people, especially immigrants and women, were overworked and underpaid. It took many years of activists fighting for labor rights before the exploitation of workers, including forced child labor, started to be taken more seriously.

The hospitality and restaurant industry had an immense impact in fighting for labor rights. Because of how vulnerable the industry is to exploitation, workers in service industry jobs advocated for better working conditions and fair wages. In 1935, The National Labor Relations Act was signed to allow the organizing of workers, strikes, and collective bargaining.

Although the history of labor rights was long and difficult, these effects that working conditions had on the average worker were the key to eventually creating more laws and regulations to ensure that labor would not be undervalued again.

Congress eventually passed an act on June 28, 1984, marking the first Monday in September as a national holiday known as Labor Day. The activism of workers of the past was immensely impactful on the rights the modern-day workers have today. The changes they fought for have resulted in better working conditions, and laws protecting people from labor exploitation.

Even though workers’ rights have considerably improved over the last 130 years, we still see forced labor and exploitation through the crime of labor trafficking today. The hospitality industry can help prevent all forms of human trafficking, including sex trafficking and labor trafficking, by training employees with BEST’s Inhospitable to Human Trafficking training. This training is free for all ORLA members, and Labor Day can be a good reminder to train employees in September to ensure all hospitality staff are current in their human trafficking prevention certification. | Audrey Young

Audrey Young is the development and communications coordinator for the nonprofit, Businesses Ending Slavery and Trafficking (BEST). For more information about BEST, visit www.bestalliance.org.

For generations, dairy farmers have been developing the leaders of tomorrow through hands-on experiences that require patience, dedication, and a long-term perspective to thrive. The same is true for dairy processors who nurture and educate the next generation of leadership in food manufacturing, taking that farm fresh milk and turning it into cheese, ice cream, yogurt, and other innovative products.
 
People depend on nutritious dairy foods to support their health and well-being, and it’s vital to produce these foods in a responsible way to address the needs of our communities and the planet. According to the Innovation Center for US Dairy, the U.S. Dairy Sustainability Awards recognize dairy farms, businesses and collaborative partnerships for practices that demonstrate outstanding economic, environmental and social benefits; a longstanding commitment to continuous improvement; and a replicable model to inform and inspire others in advancing dairy sustainability leadership. 

Advancing dairy sustainability leadership is of utmost importance to Oregon dairy farmers and processors, and three Oregon dairy farms and businesses have been recognized in recent years for their commitment in this area with U.S. Dairy Sustainability Awards. These are their stories.
​

Rogue Creamery, Central Point, OR
2021 Winner for Outstanding Dairy Processing & Manufacturing Sustainability
This award commended Rogue Creamery for its commitment to dairy sustainability, including programs for renewable energy and waste reduction, such as solar panel installation, reduced packaging waste, and their employee commuter program.

Rogue Creamery is a USDA certified organic cheese maker located in Central Point, Oregon. For nearly 90 years, Rogue Creamery has drawn from the beauty and flavors of Southern Oregon’s Rogue River Valley to create organic, handcrafted cheeses that have won international acclaim. But creating the world’s best cheese is only part of Rogue’s mission. They know that business – and in their case, cheese – can be used as a force for good. That’s why they became Oregon’s first public benefit corporation, “B Corp” for short, joining a global movement of companies that are committed to making the world a better place. Find out more at www.roguecreamery.com.

Threemile Canyon Farms, Boardman, OR
2020 Winner for Outstanding Dairy Processing & Manufacturing Sustainability
Threemile Canyon Farms was recognized in 2020 with this award for demonstrating how growing crops and milking cows can complement one another in a regenerative, closed-loop system, resulting in little to no waste.
​
Threemile’s Jersey cows and heifer operation are located at the center of the 93,000-acre farm. Practicing precision agriculture, the farm also grows organic blueberries, onions, carrots, potatoes, and corn, as well as a variety of conventional food, feed, and cover crops. Manure from the dairy serves as organic fertilizer for the crops, and the cows consume byproducts from food processing for human consumption that would otherwise go to waste. Modeling creativity, innovation, and efficiency, their efforts to continuously improve farm practices generate positive results for food safety, air and water quality, animal care, and community benefits. Find out more at www.threemilecanyonfarms.com.

Tillamook County Creamery Association, Tillamook Oregon
2018 Winner for Outstanding Community Impact
Tillamook County Creamery Association (TCCA) was recognized in 2018 for working to find the root cause of food insecurity in Oregon and for improving housing access. To address large-scale issues that impact the people and the planet, Tillamook partnered both with the Oregon Food Bank, and CARE, a local agency that serves the at-risk population of Tillamook County and encouraged their farmer-owners and employees to regularly participate in their company’s volunteer program, Tillamook Cares. 

TCCA is a farmer-owned dairy cooperative headquartered in Tillamook County, Oregon. They make and sell dairy products in a wide variety of categories under the "Tillamook" brand name. Since 1909, they’ve been dedicated to making the best cheese with the best ingredients, and today, Tillamook products can be found in homes from coast to coast. Find out more at www.tillamook.com

To learn more about how dairy is ordairy.org/farms/sustainability developing industry leaders in sustainability, visit ordairy.org/farms/sustainability and usdairy.com/sustainability. | Oregon Dairy Council

​Child sex trafficking is a devastating crime that can go unnoticed in the hospitality industry. Traffickers take advantage of the privacy and anonymity provided in hotels to exploit vulnerable people, including children, through commercial sexual exploitation. Human traffickers often operate discreetly, so hotel staff can miss the warning signs of child sex trafficking. And when the victims are children, they often will not ask for help from strangers.

Child sex trafficking happens more frequently than most people realize. So, it’s essential that hotel employees are properly trained in human trafficking awareness to be able to remain diligent and know how to spot a child sex trafficking situation. 

According to the 2021 Federal Human Trafficking Report published by the Human Trafficking Institute, the number of known child sex trafficking cases in the United States increased 17 percent between 2019 to 2020, and children made up over 66 percent of the victims in sex trafficking cases in 2020. Their ages ranged from 4 to 17, but 89 percent of the victims were between the ages of 14 to 17, with the average age being 15. Over 45 percent of these children knew their trafficker before they were exploited.

While any child can become a victim of human trafficking, children who are homeless or runaways, foster care youth, LGBTQIA+ youth, Black or African American youth, Latine youth, and Native American youth are at a higher risk of being targeted by human traffickers. 

The warning signs of child sex trafficking can be apparent in subtle ways in the hotel environment. When hotel employees become aware of the indicators of human trafficking, they can learn how to identify and safely report potential child sex trafficking cases to their managers. Some of the warning signs of child sex trafficking in hotels include the following indicators:

• Absence of luggage
• A person who looks very young but is dressed and behaving like an adult
• Lack of eye contact with hotel staff from the young person
• Evidence of violence, abuse, or intimidation 
• Signs of unusual fear, anxiety, or submission
• Young person is dropped off by an adult who waits in the parking lot
• Young person asks staff for help, food, or money
• Repeated requests for extra towels, linens, or room service 
• Multiple adult guests are seen visiting the room, especially at regular time intervals
• A child expressing fear or discomfort around certain individuals, especially the adults accompanying them, should not be ignored and should prompt intervention

Hotel staff can play a crucial role in combating child sex trafficking within their establishments by being properly trained in how to recognize the signs of human trafficking and how to safely respond to it. This can safeguard more vulnerable children, and it can help recover more children who have been reported missing to the National Center for Missing & Exploited Children. 

The Oregon Hotel & Lodging Association (ORLA) now offers free Inhospitable to Human Trafficking training provided by the nonprofit, Businesses Ending Slavery and Trafficking (BEST). By training front line hospitality staff to be able to identify the signs of human trafficking and providing them with clear protocols on how to report suspected cases, it can ensure a swift and appropriate response, especially when a minor is involved.

Anyone under the age of 18 engaging in a commercial sex act is considered a victim of human trafficking by law, with no exceptions. Observing the behaviors of guests and reporting anything suspicious to hotel management can raise awareness and prompt quick and appropriate action to investigate suspected child sex trafficking cases.

When employees are trained to report potential child sex trafficking to managers, hotels should have a plan in place for how managers report incidents to local law enforcement. Not only is this important for recovering missing and exploited children, but it is essential that hoteliers respond appropriately to protect their liability if a child is being abused on their property. 

By recognizing the warning signs of child sex trafficking in hotels and taking steps to safely report human trafficking, the hospitality industry can help make a big impact in protecting vulnerable children and recovering more human trafficking victims. | Katie Amodei

Katie Amodei is the communications director for the nonprofit, Businesses Ending Slavery and Trafficking (BEST). Their goal is to help employers learn what they can do to make a difference in preventing human trafficking through awareness raising, consultation, training, and providing employment opportunities for survivors.

Guest Blog

Human trafficking is a pervasive issue that often operates under the radar in everyday settings. Despite its prevalence, this crime can be difficult to detect without trained eyes to recognize the signs. This is where everyday heroes, such as hospitality employees, can play a vital role in identifying and reporting suspicious activity that could potentially save lives.

The Role of Everyday Workers
Employees in hotels and restaurants are often on the front lines of human trafficking activity. Traffickers frequently exploit these venues for their illegal operations, using them as a means to exploit victims. This is why it is crucial that hospitality employees to be trained in recognizing the red flags of human trafficking, such as unusual behavior or signs of physical abuse.

Training and Awareness
Businesses Ending Slavery and Trafficking (BEST) is joining forces with the Oregon Restaurant and Lodging Association (ORLA) to provide free human trafficking prevention training for ORLA’s members, with the goal of preventing the exploitation of vulnerable people in Oregon. BEST’s Inhospitable to Human Trafficking training is a 30-minute, video-based, online training available in Spanish and English. It can be taken individually on a computer, or in a group setting, and employees can receive a certificate of completion after taking the course. This free training can be easily accessed through the ORLA membership website. 

Providing training for employees who work directly with the general public on how to identify and respond to potential cases of human trafficking is key to combating this crime. Education and awareness can empower individuals to take action when they suspect something is amiss. By arming employees with the knowledge and resources they need to be able to spot a potential human trafficking situation, it increases the chances of identifying victims so they can get the help they need, and it helps bring traffickers to justice.

Protecting Employees & Guests
When human trafficking happens on business properties, it’s dangerous for victims, employees, and other guests. It can also impact guests’ assessment of the safety of the location and damage brand reputation. Because of ORLA’s commitment to train its members, more human trafficking victims can be identified and connected with the supportive services they need to begin to rebuild their lives after trafficking. This approach to preventing human trafficking is essential, because when employees learn the signs, they can help create a culture where everyone steps up and steps in to make a difference in improving the safety for all guests. 

Conclusion
Front line employees are essential in the fight against human trafficking. By training and empowering more employees across Oregon to be able to recognize the signs of this crime, BEST and ORLA are striving to create a network of vigilant individuals who are committed to protecting the vulnerable. It is imperative that everyone in the hospitality industry helps take some responsibility for combatting human trafficking. By working together, everyday heroes can help create a safer world. | Katie Amodei

Katie Amodei is the Communications Director for the Seattle-based nonprofit, Businesses Ending Slavery and Trafficking (BEST). Their goal is to equip employers to make a difference in the fight against human trafficking through awareness raising, consultation, training, and providing employment opportunities for survivors.

​US dairy cows upcycle over 300 million pounds of food waste every day.  Much of the food waste going to cows comes from food byproducts that humans can’t eat but cows can - like potato peels and onions from a local potato chip maker, brewery grains and yeast from beer breweries, spent grains from local bakeries, hazelnut hulls, cotton seed from making clothing, biodiesel byproducts, and more.  

Dairy cows possess a superpower: an incredible 4-chambered stomach and digestive system that allows them to eat these various byproducts as part of their regular diet. If these byproducts weren’t upcycled on dairy farms, they would pile up at factories or end up in landfills. In fact, it’s estimated that large manufacturers divert around 77% of their food byproducts to animal feed.  Diverting these byproducts from landfills reduces methane and greenhouse gases and frees up the land for other uses - like crops for human food production.

Animal nutritionists work with farmers to create specialized diets for cows at every life stage, and work to incorporate a variety of food byproducts that cows will enjoy. Not only are these byproducts highly nutritious for cows, but feeding cows has emission reduction benefits too. The carbon emissions of sending byproducts to a landfill for incineration is 60% greater than feeding them to cows. 

By taking on byproducts, dairy farms help other industries operate smoothly and add value to the local food system. Byproducts make up 30% of the world’s agricultural production. Finding a place to upcycle byproducts is essential to the operations of many businesses and industries. What’s more, sending byproducts to help feed dairy cows is a great way to reduce food waste and certainly helps businesses keep costs down, particularly for the farmers. One example here in Oregon is the innovative partnership between Oregon breweries and dairies.

Brewers extract a small amount of sugar from grain during their brewery process; about 85% of brewer waste comes from this process. According to a recent estimate, up to 20 billion lbs. of BSG is produced in the USA each year. Using byproduct grains from brewers can provide beneficial nutrients to dairy cows and help farmers control their feed costs.  By working together brewers and dairy farmers can keep their production cycles operating smoothly and prevent substantial byproducts from going to landfills. 

In Oregon, we have some great examples of farms working collaboratively with food and beverage manufacturers to divert food waste by upcycling byproducts. For example, a local dairy farm receives about over 3,000 gallons of yeast water from a two local breweries each week, which they use to top dress their total mixed rations. It's a substantial byproduct - they have 4 tanks reserved on the property for it. Yeast water contains a little bit of protein, which helps the grains to stick to each other and is nutritionally beneficial for their herds. What’s more, the manure from their farm is used at many of the neighboring vineyards in the area. 

The delicious dairy foods made here in Oregon come from good milk, derived from healthy and happy cows. It is a wider food industry collaboration to support feeding these cows with nutritious byproducts to help businesses reduce costs, keep food waste low, and support others in the community. | Oregon Dairy and Nutrition Council

Guest Blog

Dining out should be a delightful and worry-free experience, where patrons can savor delicious meals in a safe environment. However, the hospitality industry faces numerous challenges when it comes to maintaining safety standards, ranging from foodborne illnesses to workplace hazards. 

In this article, we'll delve into key areas of focus for restaurant safety, emphasizing the importance of a proactive approach to mitigate risks and enhance the overall dining experience.

1. Prioritizing Food Safety 

• HACCP Implementation: It's imperative for restaurants to prioritize Hazard Analysis and Critical Control Points (HACCP) plans, to identify and mitigate potential hazards, safeguarding against foodborne illnesses. 
• Temperature Control: Proper cold and hot holding temperatures, calibrated equipment, and safe thawing practices are essential to ensure quality and freshness of culinary creations. Thus, ultimately preventing food contamination. 
• Hygiene and Sanitation: Handwashing protocols, rigorous cleaning and sanitizing procedures, and effective pest control measures are vital for maintaining a hygienic environment.
• Allergen Management: Clear allergen labeling policies, staff training on allergen awareness, and meticulous separation of allergen-containing ingredients are crucial to prevent allergic reactions among patrons.

2. Operational Excellence

• Fire Prevention: Regular fire safety inspections, maintenance of fire suppression equipment, and comprehensive employee training on fire safety protocols are essential to prevent and manage fire hazards. This ensures swift and effective responses to any emergency situation. 
• Equipment Safety: Proper usage and maintenance of kitchen equipment, adherence to electrical safety protocols, and implementation of measures to prevent slips and falls contribute to a safe workplace.
• Workplace Violence: Guidelines for preventing workplace violence enable a safe culture that prioritizes security of employees and patrons. Such strategies could include de-escalation techniques, clear reporting procedures, and thorough employee training on recognizing and responding to potential threats.
• Emergency Preparedness: Developing and regularly updating emergency response plans for various scenarios, conducting drills, and ensuring all staff are well-versed in the procedures are crucial steps to effectively manage emergencies.

3. Employee Safety and Wellness:

• Training and Education: Ongoing training programs covering all aspects of safety ensure that employees understand and adhere to safe practices and procedures.
• Ergonomics: Identifying and addressing potential ergonomic risks in workstations and tasks help prevent musculoskeletal disorders, sprains and strains, slips and falls, or other injuries among staff.
• Mental Health and Well-being: Creating a supportive work environment that prioritizes employee well-being and addresses mental health concerns fosters a positive workplace culture.

4. Customer Safety:

• Food Allergies: Informing customers about allergen policies, providing clear food labeling, and training staff to assist customers with allergies are essential for preventing allergic reactions.
• Accessibility: Ensuring the restaurant is accessible to patrons with disabilities is fundamental for inclusivity and customer safety. 
• Food Safety Transparency: Open communication with customers about food safety practices, along with encouraging feedback, builds trust and demonstrates a commitment to their well-being.

Restaurant safety is a shared responsibility that requires proactive measures from both operators and customers. By implementing comprehensive safety protocols, providing thorough training, and fostering a culture of safety, restaurants can create an environment where everyone can dine safely and enjoyably. To learn more about how safety impacts your premiums find more at www.gethip.biz.

Guest Blog

​Insurance underwriters research your business before issuing a quote or renewing coverage. They find clues about your day-to-day operations in customer reviews, social media profiles, and even the image gallery on your website. Since this analysis can affect your insurance rates, you want to make sure your online presence conveys an accurate story. Here’s what underwriters look for and factors you need to think about:

If you say you’re a restaurant, but you’re open until 1 a.m., are you really a bar?

Suppose you describe your business as a family restaurant where people of all ages bond through great food and conversation. However, on Yelp, several reviews compliment your cocktails and live entertainment. And your Instagram feed features young adults dancing, a flashing disco ball, and a crowded bar. 

At the very least, you can expect the underwriter to ask questions to classify your business correctly. Maybe you are a family restaurant until 8 p.m. But after that, you cater to a different target audience that wants to drink and party. The latter scenario is more expensive to insure.

What kinds of risks are you taking?

An insurance company can deny or cancel coverage if they don’t like what they see online.

One establishment featured its ice shot glasses on social media. Fun-loving patrons downed the liquor then smashed their ice “glasses” on the floor, creating a slip hazard. 

At another place, a bartender stood on top of the bar to toast a patron’s birthday. The restaurant added this celebratory picture to their website.  

Standing on the counter was not a normal activity in this workplace, but the insurance company didn’t know that. They assumed it was part of the business’s culture, and the worker’s comp carrier spoke up. They didn’t want the risk exposure.

Do you comply with laws and regulations?

Recently, a bar advertised its “happy hour” on social media with a photo showing “$1 beer all day.” Oregon law prohibits promoting happy hours on social media. Additionally, the beer price and event duration posed underwriting concerns since both factors can contribute to over-consumption of alcohol. In this case, the insurer canceled the bar’s entire insurance package. 

7 tips for avoiding an adverse underwriting decision

In five minutes, an underwriter is sizing up your business by looking at your online presence. They are asking themselves, “Do I even offer insurance to you? If I let you in the door, will I need to charge you more because I perceive you as riskier?”

To position your business in the best possible light with underwriters: 

1. Examine your website through an insurance lens and regularly review your online presence. Does your photo gallery and social media activity accurately portray the nature of your business? Is there anything that might raise alarm bells for an insurer?
2. Set up monitoring so you receive real-time alerts if someone posts about your business. This way, you can leverage positive reviews, while managing anything that could be harmful. 
3. Reassess your business hours. There’s an old saying, “Nothing good happens after midnight.” Understand the insurance implications of staying open late. Many insurers want a midnight closure (or earlier) as a condition for coverage. Those willing to consider longer hours will charge more. Are you bringing in enough revenue to cover the extra insurance costs? 
4. Make sure the business description in your insurance policy matches what’s happening today. Maybe you were a breakfast-lunch establishment when you first started your venture, but now you serve dinner and late-night drinks. As your business evolves, you may need to adjust your insurance. An inaccurate business description can lead to coverage gaps and worse.
5. Decide if “flex hours” are delivering ROI. Some businesses allow the night manager to close early if business is slow. If your website says you’re open until 2 a.m., but you regularly close at 11 p.m., you may benefit from officially adopting an earlier closing time. You could transition your business from being “high risk” to “medium risk” just by shortening your hours.
6. Update your website. A 2018 photo can signal to an underwriter that you aren’t maintaining your website, which creates a cybersecurity concern. And if you’re not maintaining your site, what else is out of date?
7. Evaluate your website through an ADA lens (Americans with Disabilities Act). Some hospitality businesses are facing lawsuits over sites that are non-compliant. Insurers don’t want that liability.

The insurance coverage you need depends on the classification of your business. Are you a bagel bakery or a brew pub? What percentage of your revenue comes from alcohol sales — 0%, 20%, 50%, 80%?

If there’s a mismatch between the info on your insurance application and online presence, you risk an adverse underwriting decision. Insurers may decline to quote. Or if you already have coverage, you risk claim denials and the potential for policy cancellation.

Take the opportunity to shape your story. Submit a letter or video with background information you want the underwriter to consider. Highlight the steps you’ve taken this year to improve your risk profile. Provide context to help insurers understand your online reputation and business vision. | Rob Hoover

Rob Hoover of Risk Strategies Fournier Group manages ORLA’s Hospitality Insurance Program (HIP). Contact him to learn more about online reputation and insurance pricing.

Guest Blog

While millions of well-meaning Americans flock to gyms with a newfound desire to improve their health there is one area of their well-being that is likely still being neglected - cyber health.

All around us, our offices, where we shop, and even where we workout – technology is everywhere. It’s a significant part of all our lives and we rely on it moment to moment to get successfully through each day.

As our reliance on technology and the internet grows, so does the opportunity for adversaries to use it against us. But, just like working out to improve our physical health and protect against disease, following simple tips from the Cybersecurity and Infrastructure Security Agency (CISA) can improve our online health and protect us from cyberattacks, ransomware, and identify theft. 

So, in the new year resolve to visit the Cybersecurity and Infrastructure Security Agency (CISA) new campaign – Secure Our World – that offers steps everyone should follow to improve our cyber health.

The message that pops up on our phone or computer to update software or install security patches is an example of ways we can improve our cyber health. Here are a few other simple actions we can take to protect our information and stay safe online:

Use strong passwords that are long, random, and unique to each account. And use a password manager to generate them and to save them.

Enable multifactor authentication on all accounts that offer it. This function sends a text to your phone, or you receive an email to ensure it is, indeed, you accessing the account. Enable this function, particularly for financial, healthcare, social media, and other accounts detailing your personal information. 

Think before you click really means recognizing email phishing attempts. Be cautious of unsolicited emails, texts, or calls asking you for personal information.  Resist the urge to click on these links and don't click on links or open attachments from unknown sources.

Update software every time your device prompts you. In fact, enable automatic updates on software so the latest security patches keep devices continuously up to date.

The Secure Our World website is a centralized hub for cybersecurity awareness resources. This is where you will find information on securing personal accounts, offering guidance on personal device safety, safe internet browsing practices, social media usage, and protecting personal information online. Secure Our World also includes support and resources for families. It provides guidance on implementing parental controls, fostering safe digital habits, and ensuring a secure online environment for children.

Your New Year’s resolution can now include equipping yourself with the knowledge and resources needed to stay safe while online. Happy New Year. | Patrick Massey, Regional Director, Cybersecurity and Infrastructure Security Agency (CISA)

​Guest Blog

If you haven’t read my previous guest blog content, my name is Joseph Hollcraft and I am the Director of IBA’s Oregon Hospitality Industry Transaction Division. In this fifth and final installment in the series, I’m going to discuss best practices around preparing your business for sale as it relates specifically to restaurants, bars, and lodging establishments. 

Business valuation is a sophisticated and nuanced process. If you’ve spent time researching how to exit your business you’ve likely come across the concept of a “multiplier.” A multiplier is a multiple of SDE, or Seller Discretionary Earnings. SDE is the measure of benefit to ownership generated by a business and includes salary, profit and any expenses run through a business by ownership. However, there are some elements that are benefits to ownership that my valuation process can’t account for. The short version of this concept is this: dollars taken out of the business or put into things like Cost of Goods Sold can’t be examined, and each dollar taken out of the business costs between two and six dollars in final valuation due to the use of multipliers. Below are three cases where business value is lost due to discretionary choices by ownership.

The first and most common expression of the above is running personal costs through Cost of Goods Sold. Let’s say you go to Costco to bulk purchase supplies for your company. Unless each purchase is itemized and personal expenses notated, anything you buy and bring home is a cost to the business that ultimately comes out of the bottom line. This could be food for home, necessities like paper towels, or other home goods you or your family might want. If you spend $1,000 a month doing this, that translates into $12,000 a year. This would reduce your company’s valuation by between $24,000 and $72,000, depending on the multiplier. If you spend more than $1,000 a month in this scenario the loss of business value goes up accordingly. 

The second is hiring family members or other people close to you at a rate above market. If you have a son or daughter who is running your business in the GM position, and you’re paying them $100,000 when the position in your business’s market only commands $65,000, then your business is spending $35,000 it doesn’t have to pay. Caring about the people close to you and giving them an extra boost is a privilege few of us are able to provide. Those business owners that can, often enjoy helping the people around them. The bottom line here is the cost at time of valuation is substantial. As in the above example, $35,000 spent on an employee that doesn’t need to be spent to hire and keep a quality GM translates into $70,000 to $210,000 in business value. This may be worth it to you, but it’s a point to consider. It can also create problems in terms of retention of the individual for the buyer. Would a person stay at a job where they have to take a pay cut? 

The third example is holding cash rather than running it through the business. No one enjoys paying taxes. One way business owners reduce their tax liability is keeping cash income off the books and taking it home as a benefit to ownership. In businesses that generate substantial cash, even just 10% of gross, the loss in value can be gigantic. I valued a restaurant that was generating approximately $5,000,000 in sales. About 10% of that gross was in cash. Figuring a 12% net profit margin, which is common for restaurants, this 10% of gross in cash equates to $60,000 of net a year, which translates to a loss of between $120,000 and $360,000 in go-to-market price. The business I valued in this example had a profit margin even higher, at around 25%. The owner took almost every dollar of cash out of the business, not reporting it on his P&L. My valuation of this incredibly successful business was approximately $1,200,000. Had the owner left all of the cash in the business, it would have commanded a value closer to $2,000,000. This can be the difference between comfortably retiring for the rest of your life and needing to work again five or ten years down the road. 

This concludes my five part series on strategies and best practices around an exit from your business. If you haven’t read the previous four blogs posted here on the ORLA website, it may be beneficial for you to review them. Should you desire a professional opinion of the value of your business, feel free to contact me via email or at (503)739-4880. All conversations will be held in strict confidence. You can also review IBA’s website at www.ibainc.com which houses a veritable treasure trove of information on preparing your business for sale and what professional mergers and acquisitions specialists such as myself can do for our clients. 

Thank you for your time and attention. I look forward to hearing from you should the need arise, and I hope you and yours had a wonderful holiday season. | Joseph Hollcraft, IBA

Guest Blog

​The successful construction of a home requires skilled contributions from multiple building industry professionals including architects, roofers, drywall installers, plumbers, & electricians. Select the wrong parties and the project will have delays, cost overruns, and potentially an unhappy homeowner.

The sale of a business is a sophisticated, nuanced process requiring comprehensive knowledge, experience, and superior skill. It is a process that most entrepreneurs are unfamiliar with when they begin to think about retirement.  Intelligent entrepreneurs surround themselves with high caliber professionals.  The following are the important advisors to place on your team if you are looking to sell a business for a strong market value in a transaction employing best practices.

The quarterback of a business sale team is the business broker. The professional services provided by an intermediary in selling a company require extensive experience and knowledge to perform at a high level. The first service provided is the valuation of a business. Valuing a business is a complicated, subjective science incorporating accounting, finance, and investment principles on one side of the spectrum and expertise similar to assessing art on the other. The ability to price a business incorporating knowledge of the 2023 buyer climate and create a competitive marketplace for parties to acquire a company are two reasons why only a professional intermediary with a resume of success should be engaged.  In many cases, only one opportunity for selling in a confidential environment at a premium value exists for an entrepreneur. Potential buyers located, the next step is to facilitate information provision and negotiations in a manner that ensures all relevant elements are addressed and decisions are made from a foundation of knowledge.  The top business brokers in the marketplace will work for free being compensated with a percentage of the sale when the transaction is completed. Salespeople requesting retainers convey a lack of confidence in their ability to perform.

A business broker selected, they will be joined on the transaction team by the accountant and attorney of the business owner. A similar pairing will exist on the buyer side of the transaction. Roles of the accountant include assessing the valuation, supporting due diligence (Essentially a building inspection of a business), and providing guidance on tax allocation. Attorneys mitigate post transaction liability.

An additional professional needed in most deals is a banker. Although at face level a buyer supporting professional, in fact this is a VERY important party to the seller, as the ability to get the deal financed will impact the percentage of cash and price received at closing.

Failure to build the right advisory team will likely cost an entrepreneur money in   sale price, cash at closing, taxes, or potential deal trailing liabilities. The top business brokerage firms have a significant Rolodex of professional advisors they can introduce to buyers & sellers. | Joseph Hollcraft, IBA

Additional information on IBA, an ORLA Allied Partner, can be found at www.ibainc.com. Contact Joseph Hollcraft at 503.739.4880, and Gregory Kovsky, IBA’s President & CEO, at 425.4543052.

Guest Blog

The online holiday shopping season is here, and millions of Americans will be looking for that great deal, but so will hackers looking to take advantage of unsuspecting shoppers.

With more than $8.8 billion lost last year to scams and fraud, according to the Federal Trade Commission, it’s important to shop safely while online. Cyber criminals are searching for weaknesses in your devices or internet connections or will attempt to extract personal and financial information through fake websites or charities.
  
The best defense against these threats is awareness. The Cybersecurity & Infrastructure Security Agency (CISA) has some valuable tips on easy things all of us can do to shop more safely this holiday season. 

CISA, recommends you take these steps all year long, not just during the holidays. Doing this could save you from being an online target of hackers.

• Use Strong passwords. Make them unique to each account and complex.
• Enable multifactor authentication for your accounts. That means before an app or account opens, you integrate a second layer of approval through text or email.
• Think before you click. Most successful cyberattacks start with a phishing email asking you to click a link.
• Update your software on all devices, regularly. Running the latest version of software helps ensure the manufacturers are still supporting it and providing the latest patches for vulnerabilities.

And specifically for the holiday season CISA recommends:

• Check your devices. Before making any online purchases, make sure your device is up to date.
• Shop Only Through Trusted Sources. Verify a business’s legitimacy before sharing personal information.
• Use Safe Methods for Purchasing 
  • Cyber criminals will often send phishing emails—designed to look like they’re from a retailer.
  • Use credit card instead of debit (improved chance of recovering stolen funds).
  • Check your statements, frequently.
  • Watch out for emails asking for information about you.

For more information on CISA’s safe online holiday shopping tips visit our website at cisa.gov/shop-safely.

This guest blog was submitted by Cybersecurity & Infrastructure Security Agency (CISA). For more information on guest blog opportunities, contact Marla McColly, Business Development Director, Oregon Restaurant & Lodging Association.

Guest Blog

As owners of successful hospitality businesses approach retirement, questions of legacy, succession, and financial planning loom large. For many entrepreneurs, funding their golden years requires selling the company and transitioning the proceeds from the sale into passive income generating assets. Selling a privately held company or family business is a sophisticated, nuanced process. The following elements are commonly addressed during negotiations in a business sale transaction. 

Price - The sale price of a business is a reflection of the company’s market value determined in good faith negotiations between equally motivated parties.  The final negotiated value will be impacted by the economic environment, the ability to create a robust, competitive marketplace in a confidential environment, and justification of the value to prospective buyers and their professional advisors.

Terms - Flexibility in deal structure is key to maximizing business value. Elements of seller financing and deferred compensation can significantly increase the total purchase price and deliver tax savings. A performance-based mechanism to supplement the fixed price can capture market share, intellectual property potential, and anticipated revenue growth from executive, strategic initiatives with appropriate risk allocation between the parties. Financing part of the purchase price for a qualified buyer can reduce the seller’s tax liability and open the door to more cash at closing if it supports bank acquisition capital. 

Seller’s Assistance - A period of transition training to ensure a smooth transfer of operations is customarily part of a transaction. The level of post-sale engagement depends on the complexity of the business model and the successor’s needs. Support can include in-person training, virtual consulting, employment contracts, and retained equity. 

Covenant-Not-To-Compete - An intelligently structured non-competition agreement will protect the buyer’s investment while preserving the seller’s ability to engage in areas not deemed to be in competition with the sold business. 

Tax Allocation - In an asset sale, the purchase price is commonly allocated among goodwill, equipment, inventory, non-competition, and consulting agreements.  Stock sales still have the potential for amortized assets and tax strategy.  The input of tax professionals is advised to determine the best tax allocation of assets and ensure mutually beneficial tax treatment for both parties.

Timeline - Establishing a targeted closing date creates a strategic roadmap for measurable progress toward deal completion.  Important key target dates to establish include satisfaction of due diligence and feasibility contingencies, legal documentation finalization, securing of financing, and receiving any necessary licensing or third-party consents. 

There is no substitute for knowledge, experience, and superior skill in negotiating the sale of a privately held company or family business.  IBA has sold more businesses in the Pacific Northwest than any other firm.  All communication with IBA is held in strict confidence.  100% of IBA’s fees are performance based.  

Additional information on IBA can be found at www.ibainc.com. Joseph Hollcraft, an ORLA Allied Partner and this blog’s author, can be reached at 503-739-4880; or Gregory Kovsky, IBA’s President & CEO, can be reached at (425) 454-3052, [email protected], [email protected], or www.ibainc.com/2023.

Guest Blog

Oregon Dairy and Nutrition Council works on behalf of dairy farm families to build trust and demand for local dairy foods. 

Oregon is An Agricultural Wonderland
Throughout the state of Oregon, a thriving food and drink industry means that locally made foods are in abundance. More than 220 high-quality crops are grown here, placing Oregon 6th in the U.S. for crop diversity. With our rich volcanic soil, clean mountain air, pure spring water and diverse climate zones, Oregon is not only an exceptional place to grow crops, but a place where people (and dairy cows) thrive. 

Happy, Responsibly Raised Cows Make Great Milk!  
The Oregon dairy community’s unwavering eye on sustainability and social responsibility has resulted in an impressive 11 US Dairy Sustainability awards for the region in the last 10 years. Dairy farmers are committed to being stewards of the land, and focus on upcycling byproducts, particularly to maintain good nutrition for their herds, reducing water usage, and adapting new game-changing technologies.  As of 2023, Oregon has 156 dairy farm families caring for more than 126,000 cows. Dairy farms across the state vary in size, from just a few milking cows, to as many as 30,000. Oregon dairy farms of all sizes ensure the high quality of the milk they produce by raising healthy, happy cows. Oregon milk consistently ranks in the nation’s top five for quality, which we can enjoy in the premium and award-winning dairy products that are crafted here. 

From Great Milk, Comes Exceptional Cheese  
You can find every type of artisan cheese within the borders of our state…from brie to blue, and fromage blanc to aged cheddar.  Our award-winning, premium cheeses stand out in both national and international competitions. Oregon artisan, farmstead, and specialty cheesemakers took home 18 medals, including blue ribbons in six categories, at the American Cheese Society’s (ACS) 2023 Annual Cheese Competition. Oregon is also home to the 2019 World’s Best Cheese winner – Rogue River Blue by Rogue Creamery, the first and only USA cheese to ever win the coveted top honor at the World Cheese Awards.

Dairy IS Oregon
Our local dairy farms and cheesemakers in Oregon are an essential part of our communities. These businesses provide jobs, support community programs, give back to local organizations and are champions of Oregon as a destination to live, work and play. By choosing Oregon, you’re not just supporting our farming families and passionate artisans, you’re getting some of the best cheeses being made today.  

Eat More Cheese!
Oregon made cheeses elevate any cheeseboard, salad, burger, breakfast sandwich, and more with a bit of wild landscape and handcrafted love in every delicious bite. You can discover Oregon cheese at your local farmer’s market, independent and natural grocers, or by visiting one of the 15 cow’s milk creameries in the state. Learn even more about these unique cheese makers and the delicious and diverse range of products on offer by visiting  Oregoncheeseguild.org/cheesemakers.

Guest Blog

The sale of a privately held company or family business has a unique marketing challenge.  On one level, similar to selling any product, it is in the seller’s best interest to have the maximum number of potential buyers know the business is for sale and to engage with as many parties as possible.  The market dynamic principles of supply and demand convey that the higher the demand and the lower the supply, the better the price a product can be sold.  In the case of a business sale, the supply is one and the opportunity to purchase is unique for a specific time & place and may not be available again for a long time.  

Now the challenge. In the sale of a business, most owners desire to have no one know that their company is for sale prior to the transaction being completed.  This desire (or should I say fear that keeps entrepreneurs up at night) is motivated by concern about how the information will be received by customers, employees, and vendors. The last thing an entrepreneur wants is to have staff turnover, customers revisit an existing relationship, or competitors take advantage of the situation. The good news is that business buyers seeking an acquisition are aligned with sellers in wanting the information a business is for sale to be held in strict confidence. This is motivated by a desire to retain customers, employees, and vendor relationships. 

Reconciliation of these directly conflicting elements requires knowledge, experience, and skill. Knowledge is employed in the development of a comprehensive marketing program that attracts the maximum number of qualified parties while maintaining an environment of strict confidence.  It is beneficial to engage a business brokerage firm with experience selling companies in the relevant industry and geographic area, as they may already know potential buyers.  It is prudent to use a mergers & acquisitions intermediary with processes and legal documentation in place that will allow only financially qualified parties with sincere interest in an acquisition to learn a company is for sale.  Most of all it is critical to hire a broker with the skill to navigate the process from justification of the maximum possible sale price to confidential, competitive market creation with the ability to successfully negotiate the best possible outcome and facilitate the deal to closing with the least amount of transactional turbulence. There is no substitute for knowledge, experience, and skill in a professional advisor.  Seek the best and you will get the best outcome. 

​IBA has successfully sold more companies in the Pacific Northwest than any other company.  We are licensed to sell real estate in Washington & Oregon.  All communication with is held in strict confidence.  100% of IBA’s fees are performance based.  

Additional information on IBA can be found at www.ibainc.com. Joseph Hollcraft, an ORLA Allied Partner and this blog’s author, can be reached at 503-739-4880; or Gregory Kovsky, IBA’s President & CEO, can be reached at (425) 454-3052, [email protected], [email protected], or www.ibainc.com/2023.

Guest Blog

The hospitality industry is a dynamic and ever-evolving sector, facing a unique set of challenges and opportunities. In recent years, the industry has been impacted by various factors, including economic uncertainty, natural disasters, and cyber threats. These factors have contributed to an increase in insurance premiums and a tightening of underwriting guidelines, making it more difficult for hospitality businesses to obtain and maintain adequate coverage.

Key Factors Affecting Hospitality Insurance
There are several key factors that are affecting hospitality insurance in 2023 and 2024, including:

• Insurance market turmoil: There continues to be a tightening of appetite are becoming more and more selective in who they offer terms to if at all. The cost of insurance is up and many carriers are restricting no longer offering components of covage
• Natural disasters: Natural disasters are becoming more frequent and severe, and this is having a major impact on insurance rates. In 2022, there were 18 U.S. weather/climate disaster events with losses exceeding $1 billion each. These events are causing significant losses for insurance companies, and this is leading to increased premiums for hospitality businesses.
• Cyberattacks: Cyberattacks are a growing threat to businesses of all sizes, and the hospitality industry is no exception. In 2023, the Kroll IR Spotlight Trends Report identified the retail/restaurant sector as the most impacted industry sector. Email Compromise and Web Compromise were the top threat incident types. Threats against the retail/restaurant sector most often involved CVE / Exploit as the initial access method.
• Higher claims costs: Higher claims costs from escalating verdicts and rapidly evolving environmental, social, and governmental (ESG) conditions are affecting individuals and businesses.
• Underinsurance: Appraisal analysis showed that nearly 90% of buildings appraised in 2020 and 2021 were undervalued. As a result, were underinsured 68% of buildings were underinsured by 25% or more and 19% by 100%.

In addition to the general challenges facing the hospitality industry, there are also some specific insurance issues that businesses in this sector need to be aware of:

• Property insurance: Property insurance is becoming increasingly difficult to obtain and expensive for hospitality businesses. This is due to the heightened risk of property damage from natural disasters, such as hurricanes, floods, and wildfires. These events can cause significant damage to buildings, equipment, and inventory, leading to substantial financial losses for hospitality businesses.
• Liquor liability insurance: Liquor liability insurance is also becoming more expensive for hospitality businesses due to the increased risk of lawsuits from patrons who are injured after consuming alcohol. This risk is particularly prevalent in establishments that serve alcohol and have a lively atmosphere. Incidents involving intoxicated patrons can lead to costly lawsuits, making it crucial for hospitality businesses to have adequate liquor liability coverage.
• Cybersecurity insurance: Cybersecurity insurance is becoming increasingly important for hospitality businesses as they are increasingly targeted by cyberattacks. These attacks can compromise sensitive customer data, disrupt business operations, and damage the reputation of the establishment. Cybersecurity insurance can help businesses recover from the financial and reputational damage caused by cyberattacks.

By understanding and addressing these specific insurance issues, hospitality businesses can better protect themselves from potential risks and ensure their long-term success.
 
Key takeaways for hospitality businesses:

• Start working with your broker early: Start working with your broker 90 to 120 days prior to your renewal date. This will give them time to shop around for the best rates and coverage options for you.
• Communicate your property improvements: Communicate the most recent property improvements and your 1–3-year maintenance/improvement plan. This will help your broker to understand your risk profile and get you the best possible rates.
• Know your replacement cost: KNOW what it will cost to replace your current operation rather that what you think it will cost (or what it cost 3 to 5 years ago). This will help you to avoid being underinsured in the event of a loss.
• Differentiate yourself: Differentiate yourself as best in class with a good story and make sure your social media presence matches the story. This will help you to attract and retain insurance carriers.

Recommendations for Building Resilience in 2023 & 2024
In order to build resilience in 2023 and 2024, hospitality businesses should take the following steps:

• Fully understand and manage your risk profile. This involves understanding the specific risks that you face and taking steps to mitigate those risks.
• Pick a specialty broker. One who specializes in understanding your business AND your industry. Help them tell your story who you are, what makes you different and why insurance carrier should partner with you.
• Build an engaged, productive workforce. This involves investing in training and development for your employees and creating a positive work environment.
• Learn more at GetHIP.biz!

Establishing the estimated market value of a privately held company or family business is a sophisticated, nuanced process requiring significant knowledge & experience. Business value is built on four pillars: Market Demand, Profitability, Potential, & Infrastructure. Market Demand’s influence on value is calibrated by industry, geography, economic conditions, & financing availability. The role of profitability is straight forward. The more profitable a company the higher the value and the larger the dial for turning up Market Demand. Profitability that is sustainable or growing is the most attractive in the business opportunity marketplace. No one purchases a company desiring to exactly replicate what it did yesterday. All business buyers acquire companies seeking to see how it will perform under their ownership.  The larger the opportunity for growth and enhanced efficiency the more potential a business has and the higher the value. Infrastructure value can be found in a spectrum of assets ranging from employees to physical & online locations to intellectual property and from customers to equipment to suppliers and inventory.
 
Only a mergers & acquisitions intermediary firm has the knowledge to incorporate present market demand into a valuation process. Business appraisers & CPA’s use the data generated by business brokers for their market comparables and lack the comprehensive knowledge of the dealmakers learned from working in the field facilitating transactions.

IBA offers complimentary opinions of business market value to potential customers interested in selling their companies.  The service is free as a method of providing entrepreneurs an opportunity to assess our knowledge, experience, and customer service without contractual obligation. All information shared with IBA is held in strict confidence. IBA traditionally sells businesses within 10% of our suggested market value.  IBA has the ability to justify our values to buyers, accountants, banks, investors, and lawyers.  The true value of a business is what a willing buyer & seller will agree in an arm’s length transaction.  The value of having a highly skilled, knowledgeable, & experienced intermediary convey the value proposition should not be underestimated.  IBA has consistently achieved timely sales of privately held companies and family businesses in Washington, Oregon, Alaska, and Idaho for strong market values since 1975 out of our physical offices in Bellevue, Spokane, & Portland.  

Additional information on IBA can be found at www.ibainc.com. Joseph Hollcraft, an ORLA Allied Partner and this blog’s author, can be reached at 503-739-4880; or Gregory Kovsky, IBA’s President & CEO, can be reached at (425) 454-3052, [email protected], [email protected], or www.ibainc.com/2023.

Key performance indicators (KPIs) are foundational to most jobs. These useful measurements help companies understand progress over time. But beyond revenue growth and profit margin, there’s one KPI some managers overlook: joy.

How happy are your employees?
Perhaps more importantly, what’s your own level of joy in your job? At Dell Technologies and at Renegade Global—a consulting practice that helps people invest in their personal brand and growth—we see the people in our businesses, not just the professionals.

1. Make play nonnegotiable.
Play goes hand in hand with curiosity, which in turn fuels engagement. When you prioritize play, you combat opposing feelings of burnout and even depression.

2. Diversify your sources of happiness.
There are different kinds of happiness: “rock star,” which you might experience after a big win; “flow,” which happens when you’re caught up in something you enjoy; and “higher purpose,” which occurs when you focus on something bigger than yourself. You need all three.

3. Avoid the three Ps.
Of the common pitfalls people tend to fall into at work, three Ps top the list: perfectionism (seeking an unattainable standard), people-pleasing (never putting yourself first) and personalizing (making things “about you”). Be sure to give yourself—and others—the grace to make mistakes. Prioritize your own needs and remember that not everything is personal.

4. Overcome difficult conversations.
Effective communication is an art form. When you have a difficult conversation ahead, consider the following steps:

• Vent to a neutral third party (not colleagues) to release tension.
• Empathize with the other person’s perspective.
• Rehearse what you want to say.
• Ask for what you need—then stop talking.

5. Check in weekly.
At Dell and within Renegade Global, we have seen great results with weekly check-ins, asking questions such as, Which activities did I love? Which ones did I loathe? What are my priorities? What help do others need from me?
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With these tips in mind, you can transcend clichés about work-life balance and make joy a core KPI of your job.
Want to read more stories like this? Check out Realize magazine.