A PUBLICATION OF THE OREGON RESTAURANT & Lodging ASSOCIATION | NOVEMBER 2013
Masters
of Their Craft
Business is Booming for Northwest Breweries and Wineries
also in this issue WALKING WITH THE 'SPIRITS' OF THE NORTHWEST PERS Reform and Tax Relief Policy Makers Advocating for More Local Control Management As a Position, Is Obsolete.
JIM BERNAU, Founder/Winegrower, Willamette Valley Vineyards PHOTO BY CAROLYN WELLS-KRAMER
OregonRLA.org - 1
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~ Beer is Love program in support of non-profit organizations ~ Community arts, organizations and events sponsorships ~ Food/beer pairings and education events ~ Tasting room and tours at our Eugene brewery ~ And of course, a delicious line-up of craft beer‌
The ancient Sumerians worshiped the beer they made and praised the goddess Ninkasi for the miracle of fermentation. Beer is a staple of civilization. Worship the Goddess.
NINKASIBREWING.COM
EUGENE, OREGON OregonRLA.org - 3
STATE HEALTH EXCHANGE OPEN ENROLLMENT October 1 - March 31, 2014 All Individuals in the Country Are Required to Have Health Insurance or Pay a Penalty Starting January 1, 2014. Do your employees know their options? Who will they turn to for answers? Garth T. Rouse & Associates has been an endorsed provider of Oregon Restaurant & Lodging Association for over 30 years. Their staff will come to your workplace and conduct a meeting for all of your uninsured or individually insured employees. The meeting will take no longer than 20 minutes to give them the three pieces of information they need to make an informed decision; • What is the penalty? • How much does insurance cost? • Are they eligible for a subsidy and how much would it be? Employees with individual plans may be eligible for subsidies under the state exchange. Any employees who want to get enrolled and avoid the risk of penalty can take another 30 minutes to get signed up and have their questions answered. The meeting will cost you nothing (other than some staff time) and would be a goodwill gesture to your employees while potentially heading off questions that you don’t want or are not equipped to deal with.
To Schedule a Meeting or Ask Questions Contact Garth T. Rouse & Associates at HealthInsurance@profben.com or 1.800.523.3316.
For More Information Visit: ORLA’s Online Healthcare Center
OregonRLA.org/Healthcare Online Resources - Use FTE and tax eligibility calculators, FAQs and more.
Stay Informed! - To ensure you receive the latest news and alerts regarding the healthcare law, sign up online! Ask a Healthcare Expert- Submit a question
directly to ORLA’s healthcare expert, Garth Rouse, via email.
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NOVEMber2013 Features 16 | MASTERS
OF THEIR CRAFT Business is Booming for Northwest Breweries and Wineries.
14 | WALKING WITH THE ‘SPIRITS’ OF THE NORTHWEST Seasonal Squash Back On the Menu
Membership 6 | N ew Members
8 | P resident’s Letter Culinary Tourism Generates More Than $2 Billion for Local Restaurants.
10 | Oregon Hospitality Industry Awards 22 | Coupons Re-thought for Today’s Restaurant Entrepreneur 24 | PCI Compliance Importance of Staying Compliant 30 | Management, As a Position, Is Obsolete. Let Management Come Through Leadership – Not the Other Way Around.
PHOTO BY HEIDI JANKE
Government Affairs 27 | G rand Bargain May Ease Pressure on Local Government Taxation. PERS Reform and Tax Relief
GARY FISH, Owner, Deschutes Brewery
28 | P olicy Makers Advocating for More Local Control Private Businesses Continue to Be Targeted.
OregonRLA.org - 5
WELCOME New Members from September 2013 Main Ingredient is published twelve times a year
5 Fusion, Bend
Homegrown Pub, Florence
Brickhouse, Bend
La Magie Bakery, Bend
800.462.0619.
Café 123, Springfield
Level 2 Global Food & Lounge, Bend
Articles address issues, programs, news and
Cattlemen's Saloon, Rogue River
Mazza Bistro, Bend
Christies Kitchen, Redmond
Mi Casita Taqueria, Cornelius
The Coin Jam, Salem
Plank Town Brewing Co., Springfield
Eagle's View Inn & Suites, Enterprise
Smith Rock Brewing Co., Redmond
Fish Mill Lodges & RV Park, Westlake
Stark Street Station, Portland
Holiday Inn Portland Airport, Portland
Thai Bloom!, Beaverton
by the Oregon Restaurant & Lodging Association (ORLA), 8565 SW Salish Lane, Suite 120, Wilsonville, Oregon, 97070, 503.682.4422,
trends important to Oregon’s foodservice and lodging industry. To learn more about the Oregon Restaurant & Lodging Association, visit OregonRLA.org.
MEMBERSHIP To become a member of the Oregon Restaurant & Lodging Association, please contact Jennifer Starr, JStarr@OregonRLA.org or 503.682.4422.
SUBMISSIONS For submission guidelines or other editorial input, please contact John Hamilton, JHamilton@OregonRLA.org.
HOW CAN WE SERVE YOU?
Call your regional representative today!
ADVERTISING Please support the advertisers herein; they have made this publication possible. For information on advertising opportunities, please contact Lea
Oregon Restaurant & Lodging Association staff are located across the state supporting membership activities, training programs and government affairs in your local area.
Ennis, LEnnis@OregonRLA.org, 503.682.4422. PUBLISHER Steve McCoid, President & CEO, ORLA EDITOR & CREATIVE DIRECTOR John Hamilton, ORLA ASSOCIATE EDITOR Lori Little, ORLA DESIGN
PORTLAND METRO WEST, NORTH COAST Clackamas (West), Clatsop, Columbia, Multnomah (West) Tillamook, Washington, and Yamhill counties
Heidi Janke, ORLA ADVERTISING SALES Lea Ennis, ORLA ORLA BOARD OF DIRECTORS Ryan Snyder, Chair, Martin Hospitality Ralph Matt, Vice Chair, Best Little Roadhouse Jeff Morton, Secretary, InnCline Hotel Management Jerry Scott, Treasurer, Elmer’s Restaurants Kevin Bechtel, Shari’s Restaurants Joe Benetti, Benetti’s Italian Restaurant Michael Carbiener, Oswego Lake Country Club Tom Drumheller, Escape Lodging Company Steve Faulstick, Westmont Hospitaltiy Group, DoubleTree by Hilton Portland Chuck Hinman, Best Western Plus Hood River Inn Gary Hoagland, Hoagland Properties Bob Jensen, Big Green Events & Wild Duck Cafe Fred Jubitz, Jubitz Corporation John Lenz, Jaspers Café Patrick McShane, InnSight Hotel Management Group Chris Otto, Seventh Mountain Resort Buggsi Patel, BHG Hotels
LORRI GEORGESON 503.341.4810 LGeorgeson@OregonRLA.org PORTLAND METRO EAST, HOOD RIVER Clackamas (East), Multnomah (East), and Hood counties STEVEN SCARDINA 503.718.1495 SScardina@OregonRLA.org WILLAMETTE VALLEY, CENTRAL & SOUTH COAST Benton, Coos, Curry, Lane, Lincoln, Linn, Marion and Polk counties
JOEL POMERANTZ Regional Program Manager 541.517.3791 JPomerantz@OregonRLA.org
Astoria Seaside PORTLAND Beaverton McMinnville
Hood River
La Grande
Oregon City
Lincoln City
SALEM
Newport
CORVALLIS
Baker City
BEND EUGENE Coos Bay Bandon
Roseburg
MEDFORD Ashland
Klamath Falls
CENTRAL & SOUTHERN Crook, Deschutes, Douglas, Jackson, Jefferson, Josephine, Klamath, and Lake counties TIM CASWELL 541.499.2168 TCaswell@OregonRLA.org
Vijay Patel, A-1 Hospitality Peter Roscoe, Fulio’s Pastaria Todd Stromme, Food Services of America Brett Wilkerson, North Pacific Management Co.
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Pendleton
OREGON RESTAURANT & LODGING ASSOCIATION 503.682.4422 | 800.462.0619 | Membership@OregonRLA.org | OregonRLA.org
EASTERN Baker, Gilliam, Grant, Harney, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, Wasco, and Wheeler counties JENNIFER STARR 800.462.0619 JStarr@OregonRLA.org
STEPHANIE PEARL-KIMMEL Marché, Eugene
“Very recently here in Eugene ORLA lobbied to successfully block a restaurant sales tax.”
How would you describe your business? Marché is a hospitality company that operates Marché, a fine dining restaurant; Le Bar, a casual bistro; Marché Provisions, a specialty food emporium; Marché Museum Café at the Jordan Schnitzer Museum of Art on the University of Oregon campus; and Marché Catering. How did you get into the restaurant business? I took a job cooking at a coffeehouse near the University of Oregon campus when I was in graduate school and basically fell in love with the business. I was able to cook in a creative environment and loved the camaraderie and the teamwork. I was hooked. What is the secret of your success? Staying focused on our mission of serving seasonal, sustainable, local food in a warm and professional atmosphere, developing a great team that wholeheartedly believes in that goal and works passionately to achieve it, and devoting a lot of attention to the details and special touches that make a meal at Marché memorable.
What do you see as the value of your ORLA membership? We love the membership benefit of participating in group plans for our liability and workers’ comp insurance and have just recently signed on with the First Data program through ORLA for credit card processing which looks like it will save a significant amount of money for us. In addition we appreciate the representation of our industry’s issues in the political arena. Very recently here in Eugene ORLA lobbied to successfully block a restaurant sales tax.
To see how ORLA can help your business be more efficient and profitable contact member services at 800.462.0619. OregonRLA.org - 7
PRESIDENT'S LETTER
Culinary Tourism Generates More Than $2 Billion for Local Restaurants. Oregon is a special place. Our state has been wildly gifted with a huge variety of stunning geographic areas – from the high desert of Central Oregon to its gorgeous coastline. The Columbia Gorge, Multnomah Falls, Crater Lake, the Cascade Mountains. As you know, I could go on for quite some time just listing the large, well known attractions our state contains. It is truly a tourist magnet in terms of its physical appeals. Travel Oregon, the state’s tourism arm, does a terrific job of promoting the natural beauty and attractions of our state throughout the region, nation and world. Their great work has resulted in huge increases in tourism spending in Oregon during the last decade. That spending is now over $9 billion dollars a year in Oregon and growing. That makes tourism one of the largest segments of Oregon’s economy and one that figures to continue to grow in terms of revenues and importance for the foreseeable future. This issue of the Main Ingredient focuses on the craft beverage industry – the wine makers, brewers and distillers that have made Oregon the center of that industry in the United States. You’ll see terrific examples of how wine makers and craft beer brewers are creating jobs, making Oregon a household name to beverage connoisseurs, creating new sources of revenue for restaurant operators by attracting even more tourists to Oregon to sample their products. I’m providing all this information to you because restaurants are the largest recipient of tourism spending at 24 percent in Oregon. That amounts to a lot of dollars for restaurant operators and is a source of revenue that should be monitored, encouraged and built upon. One way Travel Oregon and the industry are doing so is through the promotion and development of culinary tourism. Culinary tourism includes the promotion of Oregon’s diverse restaurant scene to the nation’s foodies. It is the wine lovers who flock to Oregon’s wine country to partake of its world class pinot noirs. It is the beer aficionados who come to Oregon to sample our world renowned and ground
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breaking micro-brews. It is the growing group of microdistillers that are distilling all types of innovative, high quality liquor that are attracting a growing legion of fans. But most importantly, it is the forward looking restaurateurs that are seizing the opportunity provided by Travel Oregon’s culinary tourism promotions to leverage their terrific food with wine, beer or craft liquor tastings that cater to that culinary tourists that are bringing this all together. The opportunities are there for all types of restaurant operators to capitalize on the culinary tourism trend. One way to get involved is to contact your local destination marketing organization (DMO) – the organization responsible for marketing your community to the tourists. If you aren’t involved and aware of their efforts you should be. Whether it is Travel Portland, Travel Salem, and Travel Lane County locally, or the Central Oregon or Southern Oregon Visitors Association regionally, rest assured the professionals managing them are promoting culinary tourism. They can answer your questions, and assist you in getting involved in the promotions. The DMOs work to drive tourists to your city or region on a daily basis generating tourism revenues for you. They are a group you should get involved with and support. Remember, 24 percent of the billions of dollars they generate are going to the restaurant industry. Are you getting your fair share? If not, look at your marketing and offerings and adjust them to ensure you do.
STEVE McCOID, PRESIDENT & CEO, OREGON RESTAURANT & Lodging ASSOCIATION
Presenting Sponsor:
THANK YOU TO ALL OUR SPONSORS PRESENTING SPONSOR:
SYSCO SOIREE & NOT-SO-SPEAKEASY PRESENTING SPONSOR:
KEYNOTE SPEAKER SPONSOR:
KEYNOTE SPEAKER SPONSOR:
INDUSTRY BREAKFAST SPONSOR:
RESTAURATEUR OF THE YEAR SPONSOR:
OPENING RECEPTION SPONSOR:
MAJOR SPONSOR:
INDUSTRY AWARDS DINNER SUPPORTING SPONSOR:
ENTERTAINMENT SPONSOR:
INDUSTRY LUNCH PROVIDED BY:
LODGING OPERATOR OF THE YEAR SPONSOR:
INDUSTRY AWARDS DINNER PRESENTING SPONSOR:
ASSOCIATE MEMBER OF THE YEAR SPONSOR:
CONVENTION BAG SPONSOR:
NOT-SO-SPEAKEASY SUPPORTING SPONSOR:
OPENING RECEPTION SUPPORTING SPONSOR:
VENDOR SHOWCASE:
Allann Bros Coffee Baker Commodities Booking.com Boyd Coffee Company Central Oregon Visitors Association Coca-Cola Crystal Investment Properties DESI Print
Dr Pepper Snapple Group Elliott, Powell, Baden & Baker First Data Garth T. Rouse & Associates Green Property Concepts Hospitality Vision HSMAI JD Fulwiler / Gales Creek Insurance
Jersey Mike's Subs KABA-Saflok / ILCO Liberty Mutual Insurance Longbottom Coffee MICROS Northland Furniture NW Payroll Solutions Inc. Office Depot
OPENING LUNCH PRESENTING SPONSORS:
EDUCATIONAL BREAKOUT SESSION SPONSORS:
OREGON'S FINEST BEVERAGES:
First Data Garth T. Rouse & Associates Liberty Mutual Insurance MICROS Office Depot
Coca-Cola SAIF Corporation USA Today
10 Barrel Brewing Co. Bendistillery Bull Run Distilling Company Deschutes Brewery
Payne West Insurance Portland Roasting Ready Care Industries S.D. Deacon ServiceMaster SERVPRO of Gresham ZoomCreates
King Estate Winery Vinum Importing & Distributing Widmer Brothers Brewing Willamette Valley Vineyards
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OREGON HOSPITALITY INDUSTRY AWARDS
T
he annual Hospitality Industry Awards recognize industry professionals who exemplify the highest standards of service and commitment to guests, team, association, industry, and community. During ORLA's annual Convention we paid tribute to a few of our industry’s most dedicated leaders, volunteers and mentors.
2013 HONOREES: RESTAURATEUR OF THE YEAR Bruce Carey, Owner, Bruce Carey Restaurants; 23Hoyt, Saucebox, Bluehour, and Clarklewis Sponsored by: Coca-Cola
With a reputation of developing successful restaurant concepts, Oregon native Bruce Carey has truly helped change the restaurant landscape in Portland. Over the past twenty plus years, Carey and collaborators have opened several exceptional restaurants, including Bluehour, Saucebox, 23Hoyt, and Clarklewis. In every endeavor he continues to raise the bar, setting the highest standards in excellence for food and service while sparing no detail in the diner’s experience. Carey started his career working at the Excelsior Café in Eugene. Later in 1990, he opened his first restaurant in Portland, Zefiro, with celebrated restaurateurs Monique Siu and Christopher Israel. Carey’s inspiration for each of his four current restaurants reflects the different time periods of his life and highlight aspects of his subtly charismatic personality. “It’s important to make distinctions on things, especially in restaurants, based on quality,” notes Carey. LODGING OPERATOR OF THE YEAR Chris Erickson, GM, The Heathman Hotel, Sponsored by: USA Today
As General Manager of The Heathman, Chris Erickson focuses on providing the best service and experience to travelers staying in his hotel. During his 25 plus years in hospitality, Erickson has shown a great enthusiasm for Portland and the state of Oregon, demonstrating how excellence in service with leadership of a great 10 - Main Ingredient - November 2013
team prove successful in this industry. Under his management, The Heathman has won multiple awards including Travel & Leisure Top US Hotel (#46), Conde Nast Gold List, 28 years of the AAA Four Diamond Award, top Historic Hotel in America for 2012, and Forbes Travel Guide Four-Star Rating. Erickson serves as past chair of the Oregon Tourism Commission, where he continues to provide leadership in the promotion and growth of Oregon tourism both as an economic and cultural force. He’s also Chair of the Travel Portland Executive Board and serves on the Metropolitan Exposition Recreation Commission (MERC). ASSOCIATE MEMBER OF THE YEAR S.D. Deacon, Portland Accepted by Mike Grubbe and Brian Poissant Sponsored by: Portland General Electric
Founded in 1981, S.D. Deacon currently ranks as the largest retail contractor on the West Coast, boasting a broad portfolio of industries including hospitality and restaurants. Local projects have included the transformation of Hotel Modera and renovation of Nel Centro. The company is continually recognized for their employee-directed Charitable Foundation, donating almost $2.3 million to charity since 2006. S.D. Deacon aligns their company mission with a charitable focus, providing a creative and empowering environment for employees. The association recognizes S.D. Deacon for its many innovative contributions as well as exemplary service to the industry.
Presenting Sponsor:
THANKS FOR JOINING US AT THE 2013 CONVENTION 1.
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1. Hospitality Industry Awards Reception 2. Attendees take a break between seminars 3. Samples from "Pairing with Beer and Liquor" breakout session 4. New ORLA Chair, Ryan Snyder accepts the gavel 5. Boyd Coffee Company in the Vendor Showcase 6. Keynote presentation by Tod Maffin, "When Good Buzz Goes Bad Online" 7. ProStart student prepares afternoon snacks 8. Healthcare breakout session 9. Live jazz at the Not-So-Speakeasy OregonRLA.org - 11
THANK YOU FOR A GREAT GETAWAY! Our thanks to all the 2013 Chairman’s Getaway sponsors and attendees. By engaging with ORLAPAC you help advocate for business friendly legislation and candidates. 2013 Sponsors:
Proceeds from this event benefit ORLAPAC. If you are interested in participating as an attendee or sponsor for 2014, contact Glenda Hamstreet, at 503.682.4422 or GHamstreet@OregonRLA.org
For more information visit
OregonRLA.org/ChairmansGetaway 12 - Main Ingredient - November 2013
Jobs for the Food and Drink Industry Staffing Solutions for Owners & Managers
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OregonRLA.org - PM 13 4/26/12 5:38
Walking with the ‘Spirits’ of the Northwest Seasonal Squash Back On the Menu
N
orthwest Chefs are outstanding at combining seasonal, local and regional flavors; they take pride sourcing the best produce and using years of knowhow to impact their menu with flavor. Gaining knowledge of what’s available and on-trend can help your business grow via innovative beverages, as well as entrees and sides. Actually, bartenders in the northwest have been conjuring and concocting with curious ingredients for years without much recognition; however, all that has changed. Once the term ‘mixologist’ became widely used, the bartending profession hit a new stride. Our region has seen the talent level truly blossom for those skilled in combining flavors. The push and pull of the marketplace transformation is coming from two different sources. First, manufacturers are driving to expand their lines with new products, and second, bartenders are working to gain a greater share of the check and customer loyalty. DISTILLERIES The ongoing success of Oregon’s microbrewery industry has brought many new players to the table. Not wanting to join the crowd and clutter, they have taken the lessons into distilling liquors. The Food Dude on PortlandFoodandDrink.com has created an expanding guide outlining Artisan Spirits. While not necessarily always rich in Northwest ingredients, the mere fact that more and more people are creating credible, local spirits is a testament to the talent rooted here in the Northwest. BARTENDERS The list of NW bartenders that have gained national notoriety is substantial; their blends truly showcase how local produce can enhance the front of the house offering and patronage. As with any big changes, it has taken years for bartenders to learn to experiment with the fresh, local, seasonal produce/flavors their establishment uses for entrees. Some who are on the forefront now are Ryan Csanky from Wildwood, Alison Weber at Gilt Club, Daniel Shoemaker from Teardrop Lounge and, of course, Jeffery Morgenthaler from Clyde Common. These bartenders have helped shape flavors in Oregon mixology. As a bonus, their newly created flavors go beyond standard cocktails doing very nicely served virgin. READ MY LIPS – One other ‘beverage’ innovation comes to mind or should I say lips,…Dave Yudkin of Hot Lips Pizza so loved the rich flavors of Northwest fruit that he crafted his own version of sodas aptly named Hot Lips Soda. Using regional and organic ingredients, the flavors he created are touted as ‘chef driven’ with no artificial flavors, colors or corn sweeteners. Yudkin’s mission is to “preserve culture and celebrate humanity through rich traditions and by joining with others in finding new ways – sustainable ways of
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doing business”. And his Hot Lips business has been good! Hot Lips soda can be found in both retail and foodservice operations all over the Northwest. BRINGING HOME THE HARVEST – Fall means pumpkin, and much more. While the popular squash has long been a badge for the changing season, as well as an ingredient in pie, bread and other fall favorites, this year industry experts say operators are trying new things with squash varieties; the advice is to try new squash dishes to round out your autumn menu. Now is a great time to connect with the farmers who specialize in ‘variety’. “There is a lot more going on within the squash category," says Karen Beverlin, vice president of specialty produce at FreshPoint, Sysco's Produce Division. “Many farmers are looking at unusual squash varieties, and trying to find unique iterations of the standard squash." In addition, chefs are looking for new interpretations of the fall vegetable, and consumers are seeking foods that are delicious, comforting, healthy and even gluten-free. The answer, Beverlin says, lies in butternut, Tahitian, kabocha and delicata squash. Butternut squash is now more popular because it is easier to prepare than acorn squash. Acorn squash has a thick, ridged rind that is difficult to peel and too labor-intensive for a busy kitchen. Butternut squash is easier to peel and features a long neck, which is the most important part of the squash. “Chefs can do more with butternut squash because the neck is solid meat," Beverlin says. “You can cut it into pieces for roasting, cut it into slices, or punch it through with cookie cutters to make shapes."
Servicing:
Other On-Trend Squash TAHITIAN is similar in shape to butternut, with a small seed cavity and a long neck. Squash with a small seed cavity leave more good meat after seeds are scraped away.
- Restaurants - Lodging Properties - Banquets & Catering -
KOBACHA is another hard squash that chefs are favoring today. Also known as Japanese pumpkin, it has a very high starch content, Beverlin says, “making it an ideal soup ingredient.” A starchy squash can make soup thick and creamy helping chefs looking for non-dairy ingredients for their soups. SPAGHETTI SQUASH is not as popular as it once was, but some restaurants offer it as part of a gluten-free, vegan entrée: spaghetti squash with pesto as an alternative to pasta. DELICATA is another versatile squash. It is long and has the same diameter throughout its length, so the chef can slice it into rings and serve it with the skin on. It has little ridges, white skin with flecks of green and orange, and makes an attractive presentation.
Finally, squash is rich in beta carotene, making it a healthy option. Other varieties include carnival squash, which looks like a small pumpkin, and turban squash, which looks like a small pumpkin half with a different shape for its other half. “A pumpkin is not a pumpkin," Beverlin says. “There are multiple varieties that have characteristics that can make or break a dish." | Randy Gehrig, Director of Business Resources and Garett Smith, Marketing Manager, Sysco Portland
Some information gathered from Sysco’s Shape Newsletter – Sysco.com/health/Sysco-Shape-Newsletter.html
About Sysco To learn more about how you can get creative with your fall menu, contact your Sysco Marketing Associate. They can also help you tap into a network of chefs, quality assurance professionals and other foodservice experts who can address each client’s unique needs and problems. SyscoPortland.com
Expertise That Can Save You Money!
Overview of General Services:
• Assess current safety and health programs. • Develop required and best practice written programs. • Assist in OSHA audits. • Identify strategies to reduce your workers’ compensation costs. • Conduct various safety training programs and follow-ups. • Provide industrial hygiene assessments. • Provide Property Loss Prevention Assessments. • Participate in monthly safety meeting activities. • Inventory chemicals and assemble a GHS program.
Ask about our Mock OSHA Inspection Call Linda Rentfrow at 503.575.6334
SafetyNorthwest.org OregonRLA.org - 15
MASTERS of their
craft
Business is Booming for Northwest Breweries and Wineries.
W
inemaker-entrepreneur Jim Bernau is on a mission. He hurries into his ambitious remodeling project, crossing drop clothes and dodging buckets. The Founder and President of Turner-based Willamette Valley Vineyards is monitoring progress on his truly grand $5.5 million expansion plan, a total makeover that includes adding a brand new kitchen and food pairing bar, a club, a new tasting room, and patios with vistas guaranteed to take guests’ breath away. Oh, and just to keep pace with the growing fan base of Oregon-made wines, Bernau is expanding the cellar, appropriately the foundation of the building and his business.
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It’s a testament to his bullish attitude on the Northwest craft beverage business; one he says is in its infancy with plenty of room for growth. “We're just getting started,” believes Bernau. “Look at the immigration that Oregon is going to be experiencing, especially with the Willamette Valley, over the next 50 to 100 years. That alone is going to influence greatly the amount of demand.” In fact, the number of wineries, breweries, and distilleries in the state is already swelling like the plump grapes growing in his vineyards. “There are now over 500 wineries in Oregon, 170 craft
brewers, and 52 distillers in Oregon,” according to Bernau. “We lead the country in artisan production and fermented beverages, without question − maybe not in volume, but certainly in brand diversity or business diversity.” Nowhere is that more apparent than in the craft beer market sector. “We certainly can't speak specifically for every other craft brewer, but in general, the industry is still in a massive growth phase,” reports Garrett Wales, partner at 10 Barrel Brewing Company, based in Bend. “Consumers have shown that they will spend a little extra for a quality crafted product. What the industry is really focusing on is biting
ABOVE: Winemaker, Founder and President of Willamette Valley Vineyards, Jim Bernau picking grapes BELOW: New facility rendering BOTTOM: New tasting room, before move in. PHOTOS COURTESY OF WILLAMETTE VALLEY VINEYARDS
PHOTO BY Matt Boyington
into the major share of macro breweries. Our focus is educating the consumer and increasing our market share, thus leaving the door open for even more breweries to grow and succeed.” Wales adds that the rainy region is far from saturated in beer products. “We're still only taking a little piece of the market from the macros, even here in the northwest,” he notes. “There is still plenty of room in the market for new breweries. What's critical is that they are entering the craft beer scene for the right reasons and producing a product that is absolutely top notch and high quality. Where we could run into trouble in the industry is if people start sacrificing quality and putting out second tier products.” OregonRLA.org - 17
PHOTO BY HEIDI JANKE
“Maybe the most important thing that sets us apart is that the Northwest, Oregon and Portland have been kind of the absolute center of craft brewing internationally,” - Kurt Widmer,
co-founder and owner, widmer brewing
Deschutes Brewery has been a first-tierquality beer pioneer and industry leader for many years. “For brewers in the craft category, things are great,” according to Owner Gary Fish. “Craft is again up double digits.” The Bend-based brewer’s business continued to grow despite the downturn in the economy. In fact, says Fish, “We have grown every year of our 25-year history, sometimes slow and sometimes fast, but always forward! We also have two pubs, with our Portland pub opening in 2008, right into the teeth of the recession. But, because of the awesome staff we have there, we have been able to grow. Our Bend pub has recently been expanded and is doing well also.” Brewers aren’t the only ones who believe that a bright future lies ahead for adult beverages in the Northwest. “This last session, we talked the Legislature into really stepping it up at Oregon State University in fermentation science,” reports Bernau. “We got some funding for the first time and produced an integrated fermentation science program for wine making, brewing, distilling, cheese making and bread making. 18 - Main Ingredient - November 2013
This is the first time ever in the country that something like this has been imagined. There's a lot that can be developed and learned when you connect all of those dots in fermentation science, because there's things they're learning over at cheese making we can apply in wine making.” He believes that the new program will serve as an incubator for a lot of budding entrepreneurs. “What will happen is they will gain insight and develop innovations that they will bring into our businesses when we hire them,” observes Bernau. The influx of new talent is good news for a growing industry. “There are a lot of new wineries throughout Southern Oregon,” says Brian Gruber, director of operations at Troon Vineyard in Grants Pass. “I see this as a longterm positive. While in the short run, it means we compete with each other for sales in the local market. But, we have tremendous support in our local markets, where people are looking for authentic, local products. A growing region builds our reputation in larger markets, from Oregon to the entire country.”
The state’s investment in the future isn’t such a surprise when you consider its history of innovation. “Just as we've seen in other industries, Oregonians still hold strong to a true pioneering spirit,” says Wales. “Our culture lends itself towards crafty products, high quality goods, and the willingness to go out and do it on your own. The industry got a huge boost from the pioneers like Widmer, Bridgeport, Deschutes, etc., so we're basically an entire generation ahead of the rest of the country when it comes to drinking great craft beer. To stay on top, we must just keep putting quality first and creating innovative products.” “Oregon’s brewers have been at the forefront for a long time, certainly longer than most states, adds Fish. “But what sets us apart is more about our consumers. We have always had the most accepting, adventurous consumers since the beginning. Talk about early adopters. The Oregon consumer was early to the buy local trend and to explore interesting beer styles. “Meanwhile there is a special spirit and cooperation among Oregon brewers.
Whereas it is a very competitive marketplace, our ability to collaborate and share information has made for a much stronger industry than it would otherwise be.” That community also includes the Widmer Brothers who have been in the craft brewing business since its birth in the region more than 30 years ago. “Maybe the most important thing that sets us apart is that the Northwest, Oregon and Portland have been kind of the absolute center of craft brewing internationally,” observes Kurt Widmer, co-founder and owner of Portland-based Widmer Brewing. “This is the epicenter for all of it, and we got an early start. There were little sparks elsewhere in the country where breweries started up, but the fact that we have such a vibrant industry that's been so vibrant for so long, we've established trends that have fanned out from here. We’ve led the country in innovation in the craft segment, and a lot of the brewers around the country kind of look to see what's happening here in the Northwest and then they kind of go in the same direction. It's not a fault or a problem, but they're generally a couple years behind these waves that started in the Northwest.” It doesn’t hurt to have the area’s bountiful resources to draw from. “I think that there are the obvious things that we have: all the ingredients for brewing great beer right here in our backyard,” points out Widmer. “We have great water, hops, and barley. I'm reminded of how important that is, for example, when I'm traveling. When I'm in the local market, I always sample local beers. One of the things that I invariably drink is the local water, and water is just 90 to 95 percent of almost every beer. If you start with water that doesn't taste very good, you're already facing a major hurdle. We're blessed with absolutely fantastic brewing water here in the Northwest and ample quantities of that. So that's already a leg up.” Although the Northwest’s resources provide a natural advantage, it takes more than good water and a great idea to succeed. “There is a spirit in Oregon,” believes Bernau. “There is this real kind of streak of independence and self-reliance,
combined with this strong sense of duty and stewardship to the land and to the people. If you look at our industry, it's filled full of these champions. “There are people who are coming here to make wine, to make beer, to make distilled spirits, are still following the Oregon Trail. The spirit of those people who are enduring those incredible hardships, taking those incredible risks, are creating this kind of mosaic of unique culture, unique set of people that combines together. Oregon remains at the end of the Oregon Trail. We're still seeing the migration.” That includes an ever-growing group of culinary tourists who travel to the Northwest on food and beverage adventures. “Oregon is different in that when travelers come here, they get to speak to the people who farm the land, who made these products, who grew these things,” says Bernau, adding, “That isn’t a common experience people get to have elsewhere.” The stories that visitors hear from Northwest winemakers’ often stem from their lands’ innate competitive advantages. “The first thing that sets any region apart is the style of the wine,” notes Gruber. “This is a function of what grows well, the climate, and other factors – something the French call ‘terroir.’ Our climate of warm days and cool nights leads to wines with both power and finesse, with qualities that combine the best of the old world and the new world. This combination tends to lead to wines with bright acidity and rich fruit – wines that pair beautifully with food, without overpowering the palate.” There appears to be no limit to food and beverage matchmaking in Oregon. “We work with our local chefs and food artisans whenever we can, and our own Chef Walt Hathaway creates delicious Troon to Table meals during the summer season that are made specifically to pair with our wines,” continues Gruber, who sneaks in that the winery will also partner in a pairing with an artisan chocolate maker this fall. “At Troon Vineyard, we respect the important and lustful relationship between food and wine. The two are in perfect harmony when they are well balanced. The bright acidity and rich fruit flavors are the OregonRLA.org - 19
PHOTOS BY HEIDI JANKE
“It is time for restaurants to treat beer as they do wine,” GARY FISH owner, deschutes brewery
perfect foil for a delightful meal. The most important thing for a winery is to be sure that the restaurateur is very familiar with our wines and can discuss them in their dining rooms with confidence.” Bernau’s viewpoint is that restaurants and wineries should make a habit of working together. “That is a huge opportunity partly because winemakers are winemakers,” he states. “That is our expertise. Restaurant owners really know how to do a great job with making a meal and presenting it. So in most cases, given the size of our industry, I would say restaurant owners have a lot of opportunity to develop more connections with wineries.” Beer is every bit the worthy food partner as its beverage brethren wine and spirits. Fish, who has been putting on beer dinners for about 25 years, believes that ales, lagers, stouts and porters have earned their rightful place in the marketplace and on menus. “It is time for restaurants to treat beer as they do wine,” he stresses. “With the ‘locavore’ movement in full swing, it is really fun to promote local artisanal producers through both our pubs, and each of our menu items comes with a beer-pairing recommendation. 20 - Main Ingredient - November 2013
We have paired beers with all kinds of cheese, and one of our local producers, Tumalo Farms, uses our Mirror Pond Pale Ale in their award-winning Pondhopper Cheese. Tom Douglas has used Black Butte Porter in barbeque sauce for quite some time.” Even age-old ideas can resurface as new opportunities. “Probably the most popular trend now (in addition to hops and IPAs) is sour beer – a traditional style going back 9,000 years or so, where natural fermentation is provided by wild yeasts to create a slow maturing, acidic beer that can range from tart to dry to almost vinegary,” says Fish. “The natural flavors of these beers are about as far from domestic light beer as you can get. At Deschutes Brewery we produce The Dissident, a sour beer flavored with fresh, local, sour cherries. This beer takes two years to produce and has been released bi-annually as a result. We also just released Green Monster, a beer that was kept in wine barrels for 38 months and has a pronounced sour flavor that has all the earthy flavors of an old-world burgundy, and then some. The beauty of these beers is, because of the acidity, they are wonderful
food beers and can pair with everything from hearty meat dishes to rich desserts.” For every yin, there is a yang. Not every consumer, including Widmer, is looking for knock-‘em-off-the-bar-stool flavors and potency. He suggests that drinkability is a trend that is putting down roots, even in the big bold Northwest. “Drinkability means moderate hoping, flavorful but still not a tongue scratcher and moderate alcohol, so that beer drinkers like me can sit down and have more than one without getting banged up,” explains Widmer. “I think it should be an enjoyable experience and not an ordeal.” Trends come and go, and Wales notes that the latest innovation isn’t always planned. “In all honesty, anyone who says that they know what's coming next is lying to you,” he says. “In an industry so full of creativity and artistry, the next big trend will probably spur from a mistake made in the back corners of some brewery. We are certainly working on new projects and creations that we hope will catch on, but starting the next ‘trend’ is far from our focus. Most breweries are concerned with staying true to themselves and their core objectives and that's true for us as well. We just want
to put out a product that we're stoked to drink and proud to put our name on.” That may look like it's easy from an outsiders perspective, but it’s not. “But to be successful, it's going to be a lot of hard work,” confides Widmer. “Brewing beer should be a passion because if you're going to be putting in 14-, 16-, and 18-hour days, you're going to resent it very quickly, unless you feel it's something you love doing. Rob (the other half of the Widmer Brothers team) and I, sometimes we have to stop and pinch ourselves. We've always loved beer. To get paid to make and drink beer, I mean, how much better than that does it get? “The fact that we make innovative and exciting beers and that people order them when they're in their favorite restaurant, this is truly an amazing place to be a brewer and a beer drinker. There's no other place on the face of the earth that comes close to what we have here in Portland, Oregon and the Northwest. This is truly nirvana for not only beer drinkers, but also for brewers.” It’s no surprise that business is booming for the region’s breweries and wineries. They are truly masters of their craft. | Kirk Richardson OregonRLA.org - 21
Coupons Re-thought for Today’s Restaurant Entrepreneur
T
he term coupon has many connotations in the restaurant industry and from what I’ve observed, mostly negative. Traditional print coupons have security or fraud potential, require additional auditing at server/bartender checkout and could lead to misrepresented offers if not properly explained. They are also typically expensive to print, require distribution to thousands with little to no ability to audit or apply success measurements, and as a result typically turn into more of a customer service disaster than they’re worth.
Where does he start? Well, he decides on local news print and directs his potential guests to his Twitter feed and Facebook business page (great start so far and his followers grow by the day). He can now leverage the social media verbs of wall posting and tweeting to deliver the offers efficiently to existing customers while exposing his offers to friends of friends and followers of followers. He is also now delivering product specific offers that have time of the day eligibility to drive targeted business and provide rewards when the hottest (most profitable) appetizers are ordered.
The design behind an offer, voucher (good attempt to rebrand the term coupon), or coupon is to drive more business…not to give something away. Remember the days of advertising in the weekly paper with a coupon good for 50 percent off an entree? Once released into the wild, all the bargain hunters mysteriously showed up at the door with coupon in hand while ordering two entrees and four waters. This has even become worse in today’s world of on-line “deal” providers. Not only do you receive the same “type” of customer, but you’re giving 50 percent of the deal value to the company advertising it, but getting three times the number of bargain hunters who take up the seats of your loyal patrons! So what can you do?
Unlike a traditional loyalty program, electronic offers can be generated immediately and nimbly. They are redeemed securely with reduced fraud, making managing an d creating offers take seconds with immediate testing ability. Your guests will appreciate that cards don’t have to be carried (only to be misplaced), and points don’t have to build in anticipation of a reward. The guest gratification is immediate… a driving form of loyalty for the entrepreneur.
Picture this scenario for a single store restaurant entrepreneur: Jack is the chef, owner, and marketing department of the newest restaurant in the suburbs of Portland. Jack has a lot on his plate and is a very busy guy. He is trying to developing a marketing strategy that is easy to launch, easy to distribute, easy to manage, easy to control, easy to understand for his guests, and most importantly effective. Jack’s focus is on generating new business and reward repeat business.
I see many operators struggling to stay afloat in the enormous sea of today’s new marketing opportunities begging for a lifeguard to help them. Or worse, sitting on the edge not knowing where or when is the best time to dip their toe in. The solution is to implement a gift and loyalty program that is closely integrated with your POS system; one that will reward loyalty not only through the dollars spent, but on the products they purchase. | Tom Halligan, Northwest Region General Manager, MICROS SYSTEMS
About MICROS MICROS Systems, Inc., an ORLA Endorsed Service Provider, is the leading provider of point-of-sale (POS) systems worldwide, offering systems that meet the unique requirements of all operators from a single terminal restaurant to the largest of chain operations. For more information call ORLA at 503.682.4422.
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OregonRLA.org - 23
PCI COMPLIANCE
Importance of Staying Compliant The security of cardholder information is important to both your customers and your business. In fact, since 2005, there have more than 1 billion stolen records in over 2,000 separate data breach incidents – with payment card data being the theft target in 48 percent of all breaches in 2011 alone.1 And yet, only four percent of all breached organizations were PCI compliant at the time of their data breach.2,3
What Is PCI DSS? The Payment Card Industry Data Security Standard (PCI DSS) was created by the major credit card companies as a guideline to help business owners implement the necessary hardware, software and other procedures to guard sensitive credit card and personal information. The object of becoming compliant with PCI security standards is to help protect sensitive cardholder data from data thieves who are shifting their sights to small merchants because they think they are easier targets.
What Happens If I Don’t Become PCI Compliant? If your business fails to become PCI compliant,3 you could be putting your business at greater risk from the growing threat of payment card data breaches and theft, which may result in substantial penalties (such as fines from banks, regulatory agencies, and card organizations), fraud and charge backs, as
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well as legal costs and lost customers. If you fail to become PCI DSS compliant or to report your PCI DSS-compliant status you may also be charged a monthly Non-Receipt of PCI Validation fee until such time as you become PCI DSS-compliant or report your PCI DSS-compliant status as compliant. If your business experiences a data security breach, you could even lose your ability to process credit card payments. Perhaps more importantly, you risk the loss of customers. Research shows that 43 percent of customers who have been victims of fraud stop doing business with the merchant where the fraud occurred.4 | First Data Thought Leadership For more information, please visit firstdatapartners.com/sra/oregon.
About First Data First Data and the Oregon Restaurant & Lodging Association have teamed up to provide complete solutions for all types of businesses - from QSR to Casual to Fine Dining to Lodging. Whether you need a payment solution for your POS system, Telecheck® Check Acceptance Solutions, or gift cards, we can help with a single-source solution - including one statement and one funding source for all your payment transactions.* © 2012 First Data Merchant Services Corporation. All Rights Reserved. All trademarks, service marks and trade names referenced in this material are the property of their respective owners. EMPS is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, CA. 1
Verizon 2010 Data Breach Investigations Report. March 2012 | 2 Ibid. | 3 Ponemon
Institute 2010 U.S. Cost of a Data Breach. March 2011 | 4 Javelin Strategy and research. June 2009
ENERGY SAVINGS A LA CARTE When it comes to improving your business’s energy efficiency, you have options. Choose upgrades to HVAC, lighting or foodservice equipment. You can reduce energy consumption, improve equipment performance and better manage operating costs. Energy Trust of Oregon offers technical assistance and cash incentives to make saving energy and money the specialty of the house.
+
Take control of your energy costs. Visit www.energytrust.org/commercial or call 1.866.368.7878. Serving customers of Portland General Electric, Pacific Power, NW Natural and Cascade Natural Gas.
OregonRLA.org - 25
IS YOUR FOOD HANDLER TRAINING SLIPPING AWAY? 24/7 ONLINE FOOD HANDLER CERTIFICATION Fast, easy and valid statewide!
Sure your employees can get food handler certification, but how do you know if they’ve learned it, better yet did they retain anything? Unlike other training programs, ORLA developed the FIRST online training that includes quizzes and videos to help retention. ORLA’s online food handler training helps your staff serve the public safely and minimize risk to your business. Get the state-mandated food handler training your staff needs, on their schedule.
TRAINING THAT STAYS WITH YOU
VISIT OREGONRLA.ORG/TRAINING
IS YOUR ALCOHOL SERVER TRAINING SLIPPING AWAY? 24/7 ONLINE FOOD HANDLER CERTIFICATION Fast, easy and valid statewide!
Sure your employees can get alcohol server certification, but how do you know if they’ve learned it, better yet did they retain anything? Unlike other training programs, ORLA developed the FIRST online training that includes quizzes and videos to help retention. ORLA’s online alcohol server training helps your staff serve the public safely and minimize risk to your business. Get the state-mandated alcohol server training your staff needs, on their schedule.
TRAINING THAT STAYS WITH YOU
VISIT OREGONRLA.ORG/TRAINING 26 - Main Ingredient - November 2013
Grand Bargain May Ease Pressure on Local Government Taxation
PERS Reform and Tax Relief
A
fter legislators failed to compromise during the 2013 regular session, Governor John Kitzhaber called the Legislature into a special session to increase public school funding to add calendar days and teachers, reform public pensions and preempt local governments from banning genetically modified crops. Although these issues are diverse, they serve as pieces of the puzzle that members of leadership agreed to be the terms of the agreement during closed-door meetings. The Governor felt he needed $200 million in revenue in the short term to bridge the economic gap and prevent teacher layoffs during this budget cycle, since it is unlikely that Public Employees Retirement System (PERS) reform will really start to show savings until the following biennia. While Democrats control the House and the Senate, each chamber will need two Republican votes to pass tax increases because of Oregon Constitution’s super-majority requirements. Therefore, the Governor knew that he needed bipartisan support to get the votes for the revenue package, so he met with leadership from both parties and negotiated a package of bills known as the “grand bargain.” As expected, even though this package was deemed preapproved and wired to sail through the Legislature, there were bumps in the road. Despite some hiccups, the democrats managed to drum up republican support by including a small and family business tax credit in the revenue package. This credit includes a new rate scheduled for an owner of an LLC, partnership or an “S Corporation,” an IRS codification that includes many privately is held small businesses. Currently, owners of small and family businesses pay Oregon personal income tax on business income that “flows through” to their personal tax returns. This tax relief would lower the tax rate, in most cases, on this “pass through” income. Therefore, small businesses making $0-$250,000 will pay seven percent tax on this “pass through money” instead of the tax rate on personal income, which could be over nine perent. The schedule rates in
this proposal reach as high as 9.9 percent on businesses making $5 million or more. Below is a chart to see where your business may fall: • • • • • •
$0-$250K at 7% $250K-$500K at 7.2% $500K-$1 million 7.6% $1-$2.5 million 8% $2.5-$5 million 9% $5+ million 9.9%
The goal of this tax relief is to treat business income differently than personal income. It is important to understand that this small and family business tax relief only applies to partnerships, LLCs, and S-Corporations with at least one non-investor employee. Therefore, if an individual owns the building that his restaurant resides in under an LLC that leases space to the restaurant which is an S-Corporation, the tax relief will only apply to the money that passes through the S-Corporation. The relief will not apply to the LLC unless the LLC has a noninvestor employee. In many cases, the tax relief may not be enough to justify hiring a non-investor employee. Regardless, the hope is that lowering the tax rate will help small businesses stay in business and increase economic development. The PERS portion of the package further reduces cost-ofliving increases for government retirees on the PERS. Revenue projected that the PERS bills will save more than $400 million a year and erase close to $4.6 billion from the system's $14 billion unfunded liability over 20 years. ORLA hopes that reducing the state’s liability will ease the financial pressure on local governments and limit their need reach into lodging, tourism and other monies allocated to supporting our industry. Although members from both parties had trouble voting for portions of the package, it demonstrates a true compromise that will hopefully serve our industry well by providing helpful tax relief as the economy continues to recover. | Nellie deVries OregonRLA.org - 27
Policy Makers Advocating for More Local Control Private Businesses Continue to be Targeted.
F
or years I have heard policymakers advocate for “local control,” and I must tell you that when I hear those two words put together, it makes me cringe. Local governments are trying to “control” private employers more and more these days. City councils in Seattle and various cities in California are discussing city minimum wage rates of $15 per hour. These are the same cities that passed menu labeling and paid sick leave ordinances, which Portland was soon to copy. So is Portland the next city to look at a $15 hourly minimum wage? The answer is no. The Oregon Restaurant Association passed a bill 12 years ago that
preempted local governments from setting their own minimum wage rates. So, while there will not be minimum wage increases at the local level thanks to your industry association, it doesn’t mean that local governments won’t cause labor-related concerns. When Portland enacted its paid sick leave rule, it was a policy passed accusing employers of creating problems, but the claims were a stretch of the truth. Most employers provide paid leave benefits, and many of the employers in our industry have shift trading policies, which servers actually prefer. Additionally, many operations that have sick leave policies find that employees abuse
sick days and tend to take them on Friday or Monday to extend their weekends. In many cases it’s the employers that have the most difficulties with paid sick leave. If you thought that policy was annoying, look at what is next out of San Francisco – flex shifts. The claim is that there are more single parents who run into problems from time to time with child care issues, so employers need to be more flexible with their employees. As the city website states, “more single-parent households require flexibility from employers.” Therefore, employees in 2014 can tell employers that they do not like their current shift, and the burden will fall on the
MEMBERSHIP DOESN’T COST, IT PAYS. The Oregon Restaurant & Lodging Association is dedicated to helping members operate with greater ease, efficiency and savings. Member participants save millions of dollars each year by using ORLA’s Endorsed Service Providers.
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FOR MORE INFORMATION, CALL JENNIFER STARR AT 1.800.462.0619. 28 - Main Ingredient - November 2013
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employer to prove it will create a hardship to their business if they grant the request. In reality, local government leaders have no understanding of how these laws impact the immense variety of different types of employers in large urban areas, and even if some might, they do not seem to care. Do not think the “flex schedule” is the last one to come from labor unions; they will no doubt come up with more and more ideas. Local governments need to stick to essential services – like police, fire, and roads – and quit trying to punish business operators. Employers know what their employees want; they offer their employees wages and benefits that will reduce turnover. And since each and every
business is different, it is important to let the State protect the wages and benefits of Oregon employees. That’s what the system provides for and that’s what the Oregon Bureau of Labor and Industries is directed to do. So, the next time a customer complains about slow service, I have a lighthearted suggestion based on what some local governments approve of… tell them to be flexible because some employees are paid to be late and others are paid not to show up at all, but that the city is trying to improve the work environment. I’m sure your customers will be happy to wait even longer with no complaints. | Bill Perry
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Management, As a Position, Is Obsolete
Let Management Come Through Leadership – Not the Other Way Around. Steven Fulmer, opening keynote “Leadership Just Got Personal” at ORLA’s 2013 Convention.
“Everyone has received the gift of leadership, unfortunately, not everyone has opened the package – yet.” Management vs. Leadership Ask anyone the difference between the two and the answer nearly always puts management in a negative light and leadership in a positive light. Is “manager,” then, an obsolete term of a by-gone era when “leaders” didn’t really lead or want their teams to think? When they just wanted people below them to follow orders and carry out commands whether they were happy about it or not? Is there even a place for “managers” in a successful organization these days? What seems to be the resounding thought today is that management is about doing tasks and holding people accountable to those tasks, while leadership is about inspiring people to want to step up and engage. Peter Bouchard succinctly wrote on my Facebook query: “Leadership you want to follow. Management you have to follow.” Ouch for managers! That’s like your kid saying, “I only love you because you’re my dad.” Who wants to do things they have to do? Matt Whitehead added: “Management is controlling people and leadership is inspiring people. “Do this…” is management. “I have a dream…” is leadership.” And we wonder what happened to employee engagement and retention!
In one brilliant article I read on INC.com, the author said: “The truth of the matter is this: Every leader may not be a manager, but every manager should be a leader. It’s easy to see that leadership and management aren’t the same thing, but a manager who lacks effective leadership traits will drive a business into the ground faster than you can count to 10.”
Employee engagement and retention has plummeted over the past several decades. Research shows that tenure dropped from 23+ years in the 1950’s to only four + years in the 1990’s, and Forbes reports today that over 30 percent of people don’t believe they’ll be at their current job next year. Could this terrible turnover be the fault of management? Yes - if by management we are talking about those managers who lack leadership skills and abilities. Jeffery Gitomer famously says: “People don’t like to be sold but they love to buy! ™” I like to say: “People don’t like to be managed, but they love to be led.” Leaders inspire us, and around great leaders we feel that anything is possible. But being managed feels manipulative.
About
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We don’t need managers, we need leaders who manage! Unfortunately, too few people in “management positions” believe they are leaders and too few organizations do their part to inspire such beliefs about leadership. Instead of seeing leadership as a subset of skills that some managers possess and others don’t, I suggest you turn that premise inside out. Cultivate the skills, behaviors and attributes of leadership in every employee, and in a select few add the skill of management. Let management come through leadership, not the other way around. Change “district manager” to “district leader”, “store manager” to “store leader”, and so on. Give people the permission and skills to lead at every level and watch your company, organization or team skyrocket! | STEVEN FULMER
Steven Fulmer was the opening keynote at ORLA’s 2013 Convention, presenting “Leadership Just Got Personal”, his latest book. With more than 30 years experience, Steven seeks to inspire a world of personal leadership, respect and compassion through his roles as a Human Strategist, Speaker, Author and Executive Life Coach. He is a graduate of The Coaches Training Institute, and the 2012 President of the ICF Chapter Northwest Coaches Association.
CONGRATULATIONS! from Liberty Mutual Insurance
Restaurateur of the Year
BRUCE CAREY
Bruce Carey Restaurants
Associate Member of the Year:
Lodging Operator of the Year:
S.D. DEACON
CHRIS ERICKSON
Accepted by Brian Poissant and Mike Grubbe
The Heathman Hotel
2013 Oregon Hospitality Industry Award Winners
APRIL 13 - 14, 2014 • SEATTLE, WA Washington State Convention Center
PRESENTING SPONSOR:
Exhibitor REGISTRATION OPEN!
Exhibit at the Northwest Foodservice Show to promote and network with the largest group of decision makers and influencers from across the foodservice industry.
THE NORTHWEST FOODSERVICE SHOW IS PRODUCED BY:
RESERVE YOUR SPACE NOW at NWFoodserviceShow.com to secure preferred booth placement. TAKE ADVANTAGE OF SPONSORSHIP AND EXHIBITING OPPORTUNITIES, CONTACT: Lea Ennis, Business Development Manager at 971.224.1543 or LEnnis@OregonRLA.org VISIT NWFoodserviceShow.com OregonRLA.org - 31
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