AU T U M N 2 019
ADAPTING TO THRIVE
Shifting Customer Expectations, Economic Challenges Drive New Opportunities
OLCC Talks Hemp & CBD
Celebrating Hospitality Industry Champions Workforce Programs on Pace
Kiauna Floyd, Amalfi’s Restaurant & Mercato, Portland
OregonRLA.ORG 1
The Northwest Hospitality Specialists Visit us online at www.crystalip.com 2
Oregon Restaurant & Lodging Association | AUTUMN 2019
{e} info@crystalip.com {p} 503.530.1316
Food waste prevention is part of the family business at Milwaukie’s
The Bomber Restaurant
The Bomber Restaurant in Milwaukie has been in owner Punky Scott’s family for generations, and is recognized as a staple in the Clackamas County community. Despite being known as a purveyor of
composting program very little food gets
Bomber regulars are unaware of how deeply
business is important to me – and my
delicious homemade food for 70 years, many the restaurant’s sustainability efforts are woven into its operations.
wasted,” said Scott. “Being a sustainable
grandkids. By changing how we handle food in our kitchen, we’re improving our bottom
“Years ago when my parents were still
line and helping to preserve Oregon’s natural
and picked up all our food waste,” said
Scott also repurposes any uncooked and
food waste ended up in the landfill. It was a
menu. For example, she prepared nearly 300
involved, we had a farmer who came by
resources for future generations.”
Scott. “Eventually he stopped, and all our
unused excess food in the following day’s
disaster, but I was soon approached by the county to consider composting.”
pounds of corned beef for St. Patrick’s Day, and turned the unserved leftovers into a
Scott and the rest of her family have long
cabbage soup the next day.
to composting wasn’t a huge one. She also
was being wasted,” advises Scott. “Think
been fierce recycling advocates, so the jump
“The key for me was to take a look at what
witnessed firsthand how much food goes
about what it takes to grow the food, and
into landfills, after peering into her garbage
bin one day and seeing a startling amount of food that was not being eaten by customers.
how many people are hungry all over the
world. They’d give anything for some leftover stew, bread or salad.”
“We realized our generous portion of French fries were being wasted, so we reduced the portion size,” Scott said. “With our
Learn how you can prevent food waste
FoodWasteStopsWithMe.org
Food Waste Stops with Me is a collaboration between Metro, the Oregon Restaurant & Lodging Association, the Oregon Department of Environmental Quality, as well as city and county governments to help food service businesses reduce food waste.
OregonRLA.ORG 3
NOV 3
CAN NON
B EACH
Join Industry Leaders Supporting Oregon Hospitality! Overnight Stay, Reception & Chef’s Gourmet Dinner for Two $395 Join the Oregon Restaurant & Lodging Association at the coast for a cocktail and appetizer reception followed by a gourmet multi-course plated dinner. At evening’s end, retreat to your room at one of three luxury Cannon Beach vacation properties… Surfsand Resort, The Ocean Lodge, and Inn at Cannon Beach. A limited number of rooms are available at each location, so reserve your selection with ORLA today!
Getaway participants take pride in knowing their attendance at the event directly benefits ORLAPAC and its ongoing efforts to promote and protect the foodservice, lodging, and tourism industry in Oregon. Registration and Questions: Glenda Hamstreet at 503.682.4422 or GHamstreet@OregonRLA.org
Sponsored by: For more information visit R E S TA U R A N T C O N S U LTA N T S
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Oregon Restaurant & Lodging Association | AUTUMN 2019
OregonRLA.org/Events
ABOUT
Restaurant & Lodging is published four times a year by Oregon Restaurant & Lodging Association (ORLA), 8565 SW Salish Lane, Suite 120, Wilsonville, Oregon, 97070, 503.682.4422, 800.462.0619.
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To learn more about ORLA log on to OregonRLA.org.
Larks Home Kitchen Cuisine
PHOTO COURTESY OF: LARKS HOME KITCHEN CUISINE / ASHLAND SPRINGS HOTEL PUBLISHER JASON BRANDT / PRESIDENT & CEO
JBrandt@OregonRLA.org LORI LITTLE / EDITOR
LLittle@OregonRLA.org HEIDI JANKE / DESIGN
HJanke@OregonRLA.org
MEMBERSHIP
To become a member of the Oregon Restaurant & Lodging Association, please contact Jennifer Starr at JStarr@OregonRLA.org or 503.682.4422.
ADVERTISING
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AUTUMN 2019 Survive and Thrive COVER STORY 20 Adapting to Thrive Shifting Customer Expectations, Economic Challenges Drive New Opportunities ADVOCACY 8 Advocacy Update Legislative Wins and New Resources for the Industry
SOLUTIONS 27 Workplace Safety It’s Your Business: The Simple Safety Step Everyone Should Know 29
Digital ADA Guidelines What Restaurants and Lodging Operators Need to Know
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Rebuilding with Renewed Spirit Albany Restaurant Blessed with Community Support Post Fire
13
Lottery Retailer Notes Retailer Forums to Set Stage for Contract Negotiations
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OLCC Watch Hemp-Derived CBD on Liquor Licensed Premises
IN EVERY ISSUE 7 From the CEO Implementing Restaurant Solutions
Buggsi Patel, Chair, BHG Hotels Dani Rosendahl, Vice Chair, The Pit Stop Sports Bar & Grill Vijay Patel, Secretary, A-1 Hospitality Masudur Khan, Treasurer, Seaside Lodging LLC Zach Poole, Immediate Past Chair, Pig ‘N Pancake
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Portland Kitchen Cabinet Grassroots Efforts Focusing on Community and Civic Engagement
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Lodging Performance Report Hotel Benchmark Data
John Barofsky, La Perla Pizzeria and Beppe & Gianni’s Trattoria Chris Bebo, Provenance Hotels Richard Boyles, Mereté Hotel Management Don Crowe, Bandon Dunes Golf Resort Mike Daley, Pollin Hotels Emma Dye, Crisp Treva Gambs, Gamberetti’s Italian Restaurant Jim Hall, Independent Restaurant Concepts (IRC) Vickie Irish, Shari’s Restaurant Group Steven Johnson,Vip’s Industries Eli Katkin, Brickroom Matt Lowe, Jordan Ramis Attorneys at Law Bobbie McDonald, Sysco Tom O’Shea, Sunriver Resort Harish Patel, Hampton Inn & Suites Komal (Tina) Patel - Ex Officio Board Member, ALKO Hotels Katie Poppe, Blue Star Donuts Michael Rowan, Deschutes Brewery & Public House Randy Xavier, Food Services of America
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Oregon Wildfires Legislative Bills Introduced to Help Communities Threatened by Wildfire Impacts
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What Your Peers Are Saying Meet Some Oregon Restaurant & Lodging Association Members
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News Briefs Industry Happenings
45
Cost-Saving Programs Member-Exclusive Benefits
47
Looking Ahead ORLA Three-Month Calendar
SUBSCRIPTIONS
To update your digital and print subscriptions to this publication and all ORLA communications visit OregonRLA.org.
2018-19 ORLA BOARD OF DIRECTORS
EDUCATION FOUNDATION 34 Workforce Programs are a Brewin’ ORLA’s Education Foundation Savors Progress at a Steady Pace INDUSTRY CHAMPIONS 36 Celebrating Champions ORLA’s Hospitality Awards Honor Outstanding Industry Members
OregonRLA.ORG 5
Fourways waystotosave savewith with Four UnitedHealthcare. UnitedHealthcare. Four ways to save with UnitedHealthcare. Exclusive discounts Exclusive discounts Exclusive discounts and solutions forORLA ORLA and solutions for and solutions for ORLA member businesses. member businesses. member businesses.
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PLANS ARE NOT AVAILABLE TO MEMBER EMPLOYERS IN ALL STATES. Some restrictions and exclusions apply. Discounts are available only to members of the National Restaurant Association and its state restaurant association partners; and may vary by location and group size. The Restaurant & Hospitality Association Benefit Trust is not available in all states. PLANS ARE NOT AVAILABLE TO MEMBER EMPLOYERS IN ALL STATES. Some
LANS ARE NOT AVAILABLE TO MEMBER EMPLOYERS IN ALL STATES. Some restrictions and exclusions apply. Discounts areUnitedHealthcare available only toInsurance members of the coverage by or Company, strictions andInsurance exclusions apply. provided Discounts arethrough available only to members of the National UnitedHealthcare Restaurant Association and its state restaurant partners; and Company of Illinois, Inc. orassociation their partners; affiliates. Administrative ational Restaurant AssociationInsurance and its state restaurant association and provided Unitedsize. HealthCare Services, Inc. their affiliates. Health Plan may varyservices by location andby group The Restaurant &orHospitality Association ay vary by location and group size. The Restaurant & Hospitality Association coverage provided by or through UnitedHealthcare of Oregon, Inc. Benefit Trust is not available in all states. enefit Trust is not available in all states. 19-19439-OR 5/19 Š2019 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company, surance coverage provided by or through UnitedHealthcare Insurance Company, UnitedHealthcare Insurance Company of Illinois, Inc. or their affiliates. Administrative 6 Oregon Lodging | AUTUMN 2019 nitedHealthcare InsuranceRestaurant Company of & Illinois, Inc. or Association their affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan rvices provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through UnitedHealthcare of Oregon, Inc.
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FROM THE CEO Implementing Restaurant Solutions
“N
ationally, an average of 95 cents of every dollar restaurant customers spend goes into the food, employees, and place.” It is our goal at ORLA to get this message on restaurant receipts throughout Oregon and we hope you will make the decision to be a part of this important educational project. Recent focus groups have found consumers believe restaurant operators in our nation make anywhere from 20-40 percent profit on sales. Naturally, this misperception can lead to broad assumptions about the industry’s ability to absorb additional regulations, minimum wage increases, and taxes while staying in business. ORLA’s Receipt Project is something we feel operators can embrace as ongoing adjustments are made to menu prices and cost centers to protect limited margins. In focus groups the message was found to be positive and apolitical which is important in today’s politically charged environment. Everything you need to know about ORLA’s Receipt Project lives online and we would encourage you to learn more by visiting: OregonRLA.org/receipt-message. The Receipt Project launch at ORLA also resulted in the launch of a broader effort focused on helping our restaurant operators in Oregon connect with best practices relating to tip pooling and other employee compensation solutions. We’ve heard from across our state the biggest challenge in the industry continues to be recruiting and retaining key staff in a tight labor market. Competition is fierce for good people and in order to keep our talent we need better systems of compensation equity for our staff working within the line of service for the benefit of the restaurant customer. We were fortunate to have some exceptional ORLA members serve as a part of a restaurant compensation solutions workgroup. They invested their time and energy over multiple meetings to share their experiences implementing tip pooling policies. Those members assisted our staff in the creation of new resources for tip pooling available to active ORLA members. If you are operating a full-service restaurant in Oregon, we would highly encourage you to access these valuable resources and put some solutions in place to sustain and protect your operation. Included in the new resources are tip pooling best practices, a
template policy you can use for tip pooling in your operation, and a template acknowledgment form you can use as employees agree to tip pooling policies and sign a designated form for their employee file. We believe these resources will be incredibly helpful to our industry and look forward to our ongoing work in walking alongside you as you wrestle with tough decisions about the future of your operation and how you will keep your business afloat. ORLA’s restaurant compensation solutions workgroup also wrestled with the concept of ‘server sales commission positions’ and how a new model could emerge within restaurants if approached correctly. Currently in Oregon, restaurant operators can look at the prospect of turning server positions into commissioned salespeople whereby a server’s total compensation is based on a sub-minimum wage hourly rate plus a percentage of their sales if their hourly compensation totals the state minimum wage rate or higher. For example, if an operator can determine what base pay (let’s say $3 or $4 an hour) can be combined with an appropriate percentage of a server’s sales (let’s say 15–18 percent), then an operator can change how server compensation works and potentially avoid any negative impacts of future minimum wage increases for those servers as well as menu price increases that may have to be implemented to pay for those unnecessary bumps in server minimum wage pay each year. Although tip credits continue to be illegal along our nation’s west coast and some other states, server positions which combine a sub-minimum wage with sales commission outside of tip income is deemed legal. To explore your options and access members-only resources available to you through ORLA, login at OregonRLA.org and then click the Restaurant Compensation Solutions link in the blue resource section. You will be prompted to enter your ORLA member credentials to gain access to the compensation solution documents. If you don’t know your login credentials, email Membership@oregonrla.org. It is our honor to serve you on staff at ORLA. Thank you for the opportunity to work with you through the challenges our industry faces while we embrace the overall growth our industry continues to experience and restaurants continue to pursue a growing percentage of each American’s food dollar. JASON BRANDT, PRESIDENT & CEO, ORLA Jason Brandt serves as the President & CEO of the Oregon Restaurant & Lodging Association. He can be reached via email at JBrandt@oregonrla.org. OregonRLA.ORG 7
ADVOCACY UPDATE Legislative Wins and New Resources for the Industry
T
he 2019 Oregon Legislative Session brought compromise, controversy and new legislation impacting every Oregonian in major ways. For the hospitality industry, there were wins, there were losses and there were some bills that could have been much worse but weren’t due to key negotiations and education of legislators by ORLA government affairs staff.
those under the influence of intoxicants: marijuana or cannabis users. Additionally, people can currently be cited or arrested for driving under the influence at any level of BAC if they are deemed to be impaired.
With the rapidly changing business environment, industry members are looking for more intelligence and best practices to address challenges and move toward more sustainable operations. ORLA has developed new resources available only to members that can help address some of these questions and provide solid examples to consider adopting in their own business.
ORLA initially opposed this bill as it doubled the licensing fees charged by the OLCC. However, ORLA changed position to monitor as it became clear the increase in fees would allow the OLCC to upgrade their technology thereby allowing licensees to apply for a two-year license in the future as opposed to an annual one, saving time and money.
LEGISLATIVE BILLS
The following list is not comprehensive but rather represents legislative bills that will or could have had the biggest impact on your business. Following the legislative recap, read more on new resources available to members that can help you address some of the questions and challenges presented by these outcomes. GREEN = A Win for Hospitality BLUE = Not ideal, but could have been worse RED = A Loss for Hospitality
ALCOHOL
SB 7 – Lowering Blood Alcohol
Content (BAC) Level to .05 from .08 FAILED = A Win for Hospitality Provides that person commits offense of driving while under influence of intoxicants or offense of operating boat while under influence of intoxicants if person drives vehicle or boat and has 0.05 percent or more by weight of alcohol in person’s blood. ORLA opposed this bill as it did not address the largest growing population of 8
SB 248 – Alcohol License Fees PASSED = A Win for Hospitality Increases certain fees charged by Oregon Liquor Control Commission (OLCC).
HB 2125 – Beer and Wine Tax FAILED = A Win for Hospitality Increases privilege taxes imposed on alcoholic beverages; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority. ORLA opposed this “beer and wine tax” which would have tripled taxes on malt beverages and almost doubled the tax on wines in Oregon. This bill would have significantly impacted the hospitality industry by increasing prices, eliminating jobs and making Oregon’s beer and wine businesses less competitive. HB 3239A – Alcohol Licenses PASSED = A Win for Hospitality Removes limit on number of full onpremises sales licenses that distillery licensee may hold. ORLA was originally neutral and just monitored the bill to ensure nothing significant changed during the session. ORLA was instrumental in making two changes to help members: First, the use of the NEXUS card for identification purposes of persons 21 years of age or
Oregon Restaurant & Lodging Association | AUTUMN 2019
older was included in the bill and second, the provision that a distillery licensee must have a product with an alcoholic content greater than 10 percent alcohol by volume to sell the distilled liquor to the Oregon Liquor Control Commission and to transport the distilled liquor out of this state for sale outside this state was removed allowing for distillations of less than ten percent alcohol by volume.
GENERAL BUSINESS
SB 90 – Plastic Straws on Request PASSED = Not ideal, but could have been worse Prohibits food and beverage provider or convenience store from providing single-use plastic straw to consumer unless consumer specifically requests single-use plastic straw. Although ORLA opposed this bill, we were able to gain concessions such as allowing for employees to offer a plastic straw to drive-thru customers in a vehicle rather than requiring a customer to ask for one in such a situation. HB 2509B – Plastic Bag Ban PASSED = A Loss for Hospitality Prohibits retail establishments from providing single-use checkout bags to customers, except in certain cases. ORLA opposed this bill to ban all plastic checkout bags from restaurants, grocery stores and other establishments. The bill does allow restaurants to offer customers recycled paper checkout bags at no cost to customers or reusable plastic checkout bags at no cost to customers who use an electronic benefit transfer card issued by the Department of Human Services. Violations carry a maximum fine of $250 with one occurrence per day maximum. HB 2883B – Polystyrene Container Ban FAILED = A Win for Hospitality Prohibits food vendor from using polystyrene container in selling, offering for sale, serving or dispensing prepared food to public.
ORLA opposed this bill to prohibit polystyrene foam food containers (PSF). Another burdensome regulation on top of the plastic bag ban and plastic straw bill, this bill would have significantly increased costs for operators as the demand for nonPSF containers would have escalated.
HEALTH
SB 28 – Oregon Health Authority Fees PASSED = Not ideal, but could have been worse Increases fees related to tourist facilities, public spas, pools and bathhouses, bed and breakfasts, restaurants and vending machines and for plan review for restaurant construction or remodeling.
by Oregon Health Policy Board toward providing health care to employees. This bill would have assessed a health care fee to employers for each employee on public assistance to help offset the costs to the state for such programs. ORLA was opposed to this bill. SB 726A – Sexual Harassment and
Discrimination Expansion PASSED = Not ideal, but could have been worse Makes unlawful employment practice for employer to enter agreement that would prevent employee from disclosing or discussing conduct that constitutes unlawful discrimination, including sexual assault.
ORLA was monitoring this bill. It doubles the fees the Oregon Health Authority (OHA) charges for inspections, permits and plan review only for those counties where the OHA actually operates in place of the local county health department. As of July 2019, there was only one county in which OHA is conducting inspections.
ORLA opposed this bill as it increased the statute of limitations on filing a claim from one year to five years. It also initially held directors, owners or partners personally liable for incidents even if they had no knowledge of the incident. That provision was eventually removed before passage.
LABOR
SB 750 – Personal Attorney General
HB 2005B – Paid Family Leave PASSED = Not ideal, but could have been worse Creates family and medical leave insurance program to provide partially or fully compensated time away from work to covered individual who meets certain criteria while covered individual is on family leave, medical leave or safe leave. ORLA was monitoring this bill in relation to another bill, HB 3031. HB 3031 would have placed 100 percent of the cost for paid leave onto the employer and did not pass. HB 2005 is 40 percent employer-paid and 60 percent employee-paid, sharing the cost associated with paid family leave between the two. HB 2269A – Health Care Assessment
to Employers FAILED = A Win for Hospitality Requires employers with 50 or more employees to expend amount established
Action
FAILED = A Win for Hospitality
Makes employer’s failure to comply with requirements of Oregon Retirement Savings Plan unlawful practice. ORLA was monitoring this bill to make sure no other significant changes occurred during session. This bill allows for a complaint, which may not be filed earlier than two years following the date by which an employer is required to register with the plan, as prescribed by the Oregon Retirement Savings Board by rule. The Commissioner of the Bureau of Labor and Industries (BOLI) may investigate and make inquiries into any complaint. If the complaint is found to be valid, a civil penalty in an amount up to $100 for each employee who is eligible to participate in the plan, not to exceed an aggregate amount of $5,000 in a calendar year may be imposed. SB 379A – Unlawful Employment
Practices FAILED = A Win for Hospitality Provides that conditioning employment on refraining from using any substance that is lawful to use in this state is unlawful employment practice.
Establishes procedure for aggrieved person, whistleblower or representative organization to bring action in name of state to recover civil penalties for violations of certain laws related to labor and employment.
ORLA opposed this bill as it would have essentially allowed those under the influence of legal substances, such as marijuana, to not be fired for using such substances.
ORLA opposed this bill because as drafted, SB 750 enabled employees and unions to act as private attorneys general to supplement enforcement actions by public agencies. California first passed this type of law because the AG was understaffed and overburdened. The law weakened the AG and the enforcement agencies and emboldened unions and trial lawyers.
HB 3389B – Lottery Winner Disclosure FAILED = Not ideal, but could have been worse Provides that name and address of prize winner of certain lottery games are confidential and may not be publicly disclosed by Oregon State Lottery Commission or Oregon State Lottery unless prize winner provides written authorization for disclosure.
SB 164A – OregonSaves Retirement
Plan Fines PASSED = Not ideal, but could have been worse
LOTTERY
ORLA was neutral on this bill, monitoring its progress to make sure no significant changes occurred to it that might affect lottery retailers. OregonRLA.ORG 9
TAXES
HB 3427A – Corporate Activity Tax
(aka Fund for Student Success) PASSED = A Loss for Hospitality Establishes Fund for Student Success.
ORLA was opposed to this bill as it raised taxes on corporate activity for businesses with gross revenues of over one million dollars. The tax will supposedly be used for education. ORLA, along with others in the business community, was able to amend the original bill to include a deduction for labor or cost of goods sold and will work during the rulemaking session to insure restaurants will be able to include the tax increase on receipts so customers can see the impact of the tax. HB 2020B – Cap and Trade FAILED = A Win for Hospitality Establishes Climate Policy Office within Oregon Department of Administrative Services and directs office to adopt Oregon Climate Action Program by rule. ORLA opposed this bill due to the increased costs associated with it for our industry and the industries who support us.
TOURISM
HB 3134 – Expansion of “Tourism
Promotion” Definition FAILED = A Win for Hospitality Expands definition of “tourism promotion” for purposes of transient lodging taxation. ORLA opposed this bill. It would have allowed for a vaguer definition of “tourism promotion” which ORLA believes would have set a dangerous precedent for tourism promotion dollars to be diluted and diversified to the point of being ineffective. HB 3136B – Collection of Local
Lodging Taxes PASSED = A Win for Hospitality Requires Oregon Department of Revenue to collect, on local rather than regional level, local transient lodging taxes that department collects under agreements with units of local government. 10
ORLA supported this bill. It allows for the Oregon Department of Revenue to help local governments, who may not have the resources to effectively collect local transient lodging taxes, by collecting such taxes and remitting them to the local municipalities. SB 595 – Transient Lodging Taxes for
Housing FAILED = A Win for Hospitality Adjusts allocation percentages of net revenue from new or increased local transient lodging tax to allow for up to 30 percent of such revenue to be used to fund affordable workforce housing. ORLA opposed this bill as it would have taken money intended to be used for tourism promotion and instead used it for housing. Such housing would have been available to anyone, with lodging taxes alone paying to subsidize it. HB 3137A – Transient Lodging Tax
Collection PASSED = A Win for Hospitality Provides that transient lodging tax becomes due when occupancy of transient lodging with respect to which tax is imposed ends. ORLA supported this bill as it helps with administrative issues for operators related to refunds and cancellations. HB 3138 – Transient Lodging Tax
Collection PASSED = A Win for Hospitality Provides that exemption from transient lodging taxation for dwelling unit used by members of general public for temporary human occupancy for fewer than 30 days per year does not apply to dwelling unit rented out as transient lodging using platform of any kind provided in any manner by transient lodging intermediary. ORLA supported this bill to help capture lodging taxes from short-term rentals and the platforms which support those shortterm rentals.
Oregon Restaurant & Lodging Association | AUTUMN 2019
NEW RESOURCES Oregon Restaurant Wage Survey ORLA, with the help of a third-party independent vendor and in partnership with the National Restaurant Association, has been conducting a wage survey to help restaurant owners and operators determine average wages by position, geographic location and size and type of restaurant. It’s been over 10 years since a wage survey like this was done in Oregon. The survey is expected to be completed by participating restaurants early September, with results and analysis available after October 1. Results will also benefit advocacy efforts as ORLA seeks to continue to help elected officials understand the realities of wages and benefits in Oregon’s restaurant industry. ORLA members have access to a limited overview of the results with the opportunity to purchase the complete report including crosstabs detailing employee positions, wage ranges, geographic designation and type and size of establishment. Members can log into OregonRLA.org and download the overview from the Members Only resource section. For more information or to purchase the wage report, please contact Lori Little, director of communications, at LLittle@OregonRLA.org or call 503.682.4422. Calculating the New Corporate Activity Tax One of the Legislative Session bills having the biggest impact was House Bill 3427A, the Corporate Activity Tax (CAT). ORLA was opposed to this bill as it raised taxes on corporate activity for businesses with gross revenues of over one million dollars. The tax will supposedly be used for education. ORLA, along with others in the business community, was able to amend the original bill to include a deduction for labor or cost of goods sold. The association will work
during the rulemaking session to ensure restaurants will be able to include the tax increase on receipts so customers can see the impact of the tax. Initial draft rules are expected in January 2020. The Corporate Activity Tax is complicated and calculating your potential tax can be confusing. Therefore, ORLA has created a CAT calculator and video to help our members understand how to calculate the tax. The link to the calculation sheet and instruction video are available online at OregonRLA.org/resources. This exercise is meant to help you project what your tax liability could be next year based on your sales in 2018; please be sure to consult your tax advisors. ORLA Work Group Helps Provide Compensation Solutions Recently a work group of ORLA members developed optional models for restaurants to use for employee compensation, including tip pooling. Oregon’s foodservice landscape is rapidly changing and as a result, our industry is grappling with how to determine the appropriate compensation solutions for their employees. This work group helped draft guidance on various options available to restaurant operators interested in reducing turnover and increasing parity between front-of-thehouse and back-of-the-house compensation standards. Included in this guidance document are several templates that can be downloaded including: a staff communication memo for the creation of a new compensation model; a tip pooling policy; and a sample acknowledgement form to communicate and secure acceptance of a tip pooling policy in writing by all participating line of service employees. This new resource is a benefit made available to ORLA members and accessible by logging into the Members Only resource section on OregonRLA.org. If you need assistance accessing this information,
contact Membership@OregonRLA.org or call 503.682.4422. Cannabis Issues Continue for Liquor Licensees Currently, state law prohibits liquor license holders to host or permit cannabis-related events at their establishments without giving up their liquor license. ORLA has been communicating with the OLCC about changing the law to allow for these types of events to take place while still permitting establishments to keep their liquor license. We will keep you updated as this issue progresses. CBD Drinks on the Rise For those interested in alternatives to alcohol, Cannabidiol, or CBD, drinks are becoming more popular and may represent an opportunity to help the bottom line. The Farm Bill put non-psychoactive hemp on the menu across the United States. Unlike the THC-induced “high” normally associated with marijuana, hemp contains mostly cannabidiol or CBD. This cousin of THC is devoid of the usual psychoactive properties, thus giving it more of a mild and “medicinal” character. Considered for its ability to dull pain and soothe anxiety, CBD is gaining popularity. In a 2019 survey by the National Restaurant Association, 74 percent of consumers believe cannabis to be healthier than alcohol. The report also found that 3 in 4 chefs named CBD-infused food a hot trend in 2019. CBD-infused beverages represent the most interesting subsector of the industry. They have the advantage of being legal at a federal level, and so long as no one makes unfounded health claims, they are being tolerated by the FDA. Be sure to read the Q&A from OLCC on page 14. GREG ASTLEY, ORLA
REGIONAL MEETINGS ORLA staff is on the road this September-October hosting Regional Meetings where members can engage in discussions on issues impacting their business. Members that want to hear the latest intelligence and engage in discussions on legislative and regulatory issues are encouraged to attend. Hear what’s coming in to play in 2020 and what you need to know to be prepared. Topics include; paid family leave, Corporate Activities Tax, plastic bags / straws, restaurant compensation solutions and tip pooling, Oregon restaurant wage survey, Oregon Tourism Leadership Academy, and local / regional issues.
FALL 2019 SCHEDULE PORTLAND Monday, Sept. 30 10:00-11:45 am (Portland Kitchen Cabinet and restaurant-specific Regional Meeting) ASHLAND / SOUTHERN OREGON Thursday, Oct. 3 2:30-4:00 pm ALBANY / WILLAMETTE VALLEY Wednesday, Oct. 9 2:30-4:00 pm PORTLAND Thursday, Oct. 10 1:30-3:00 pm (PDX Lodging Alliance and lodgingspecific Regional Meeting) REDMOND / CENTRAL OREGON Monday, Oct. 14 2:30-4:00 pm HOOD RIVER / THE GORGE Thursday, Oct. 24 2:30-4:00 pm ASTORIA / NORTH COAST Wednesday, Oct. 30 9:30-11:00 am or 2:30-4:00 pm For more information and to RSVP, go to OregonRLA.org/Events. If you have any questions on the topics, contact Greg Astley, Director of Government Affairs, at Astley@OregonRLA.org or call 503.851.1330. OregonRLA.ORG 11
• Control Labor Costs • Increase Employee Engagement • Enhance Guest Experience • Minimize Compliance Risk
Where Software and Local Support Exceed Expectations Hospitality focused workforce management solutions: PAYROLL GNSA’s Payroll Module includes New Hire Reporting, Local, State, and Federal Tax Returns, Direct Deposit, and of course scheduled Payroll Processing. HRMS Includes On-boarding and Off-boarding Modules, Performance Reviews, Credentialing, and Certification Tracking Tools, Document Vault, Skills Tracking, Incident Reporting, Background Checks, Full Online Enrollment, and Leave Management. TIME & ATTENDANCE Serves both employees and management. Employees can request time off, increased reporting from their cloud-based portal or mobile device, POS, or physical time clock. SCHEDULING Employees can trade, pick-up, or fill open shifts from our cloud-based or mobile solutions. Ability to track scheduled vs actual and tools to avoid overtime and Project Costs. LOCAL BASED TEAM SUPPORT Northwest local, team based customer support. From implementation to ongoing support without any 1-800 numbers or hand-offs.
ORLA Member-Exclusive: • 39% Discount on Payroll • 20% Discount on Any Additional Modules 12
Oregon Restaurant & Lodging Association | AUTUMN 2019
CONTACT: Scott Herson-Hord, GNSA SHord@GNSAdmin.com 503.972.1955 | Office:503.972.0999
GNSAdmin.com
LOTTERY RETAILER NOTES Retailer Forums to Set Stage for Contract Negotiations
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n preparation for upcoming contract negotiations with retailers, the Oregon State Lottery (OSL) scheduled four Lottery Retailer open forums for August and September. OSL’s intention is to use these meetings as platforms to listen to retailers’ concerns and opinions on lottery commission rates, commission structure and the future of lottery games in Oregon. At the time of this writing, it was our understanding the Oregon Lottery will also be previewing potential options for commission structure at these meetings.
approximately six months after the contract is presented to sign and return it to the Oregon State Lottery. ORLA Needs Your Input As we enter contract negotiations with OSL, ORLA needs your input. We need to know how any proposed rate or commission structure changes will affect your business. As retailers, you understand better than anyone the impacts increasing minimum wage, regulations and economic pressures will have on you and your employees.
Your testimony, stories and data will be crucial in helping the OSL All Lottery retailers were sent a notice of the forums from the understand the impact any changes will have on the retailers they Oregon Lottery Commission and ORLA helped encourage members rely on to help promote and sell lottery products. to participate and ensure the Commission heard their feedback and concerns. The Lottery Retailer Forums were held: In addition, your membership dues and the lottery assessment you pay to ORLA helps us continue to fight on your behalf in these • August 28 at PSU University Place Hotel, Portland contract negotiations. Your support is essential to helping us remain • August 29 at Linn-Benton Community College, Albany at the table and reach a deal on your behalf. • September 5 at Ramada Hotel, Medford • September 6 at Hampton Inn, Bend If you haven’t met your lottery assessment obligation yet, please take a minute to send it in today–contact us at 800.462.0619 or Contract Timeline Membership@Oregonrla.org to confirm your Lottery Commission Contract negotiations between ORLA and the Oregon Lottery Assessment. You support is needed now more than ever as we enter will likely take place in September and October with the OSL the next few months of critical conversations with the Oregon presenting a contract in November or December. Retailers will have Lottery. GREG ASTLEY, ORLA OregonRLA.ORG 13
OLCC WATCH Hemp-Derived CBD on Liquor Licensed Premises
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hat is legal and not legal in regard to the use of CBD in alcohol and edibles? That’s a popular question these days, especially in light of the trends we’re hearing about in the hospitality industry around the country. The OLCC has been working on guidelines that address the broader topic of hemp, CBD and marijuana and plan to have more clarification in the near future. This is a ‘loaded’ topic with a lot more information to come, but for now, here’s an update and clarification of products from the OLCC: What’s the difference between marijuana, cannabis, hemp and CBD? The use of hemp and hemp derivatives in foods, beverages, and other products is becoming increasingly popular, and consumers may or may not quite understand the different components they see and the legal implications thereof. For starters, marijuana and hemp are both plants, and in fact, both are the same species of plant - Cannabis sativa. The word “cannabis” can refer to both marijuana and hemp, so 14
a person using the term may be referring to marijuana or hemp on their own or both plants at the same time. Legally, the only difference between a hemp plant and a marijuana plant is the amount of tetrahydrocannabinol that the plant contains. More commonly known as THC, this is the principal psychoactive constituent of marijuana. Generally, if the plant contains 0.3 percent THC or below, the plant is considered to be hemp. If the plant contains more than 0.3 percent THC, the plant is considered marijuana; however, in Oregon, if a cannabis plant is grown by an OLCC licensed marijuana producer, regardless of the THC content, the plant is considered marijuana. Marijuana and hemp both contain other cannabinoids besides THC, such as cannabidiol or CBD. To legally grow or handle hemp in Oregon, a person must be registered with the Oregon Department of Agriculture (ODA) as a hemp grower or a hemp handler. Hemp growers and handlers registered with the ODA can either transfer hemp and hemp products to a non-OLCC licensed business or they can transfer the hemp or hemp products into the
Oregon Restaurant & Lodging Association | AUTUMN 2019
OLCC recreational marijuana system (subject to certain rule requirements). Hemp products may or may not contain CBD depending on the part of the plant used to make the product. What does this mean for me as a Licensee? Liquor licensees should be aware of federal requirements and must be in compliance with those federal requirements. If any alcoholic beverage manufacturer wants to use hemp, CBD, terpenes, or any other similar type of ingredient, they must first obtain formula approval from the TTB. Licensees should contact the TTB – and not the OLCC - with questions about the federal requirements. If the OLCC learns about a licensee that is not in compliance with federal standards, the agency will begin an investigation that could lead to an action being taken against the licensee’s liquor license. If a licensee wants to sell a non-alcoholic CBD item, they must also comply with federal and state requirements. This means that it is the licensee’s responsibility to: 1. Verify the source of the CBD (hemp, not marijuana);
2. Verify that the CBD did not come from an OLCC retail store; 3. Verify that the CBD product did not enter the state illegally; and 4. Verify that the CBD product has been tested according to Oregon law. Additional Q&A for hemp-derived CBD on liquor licensed premises For Alcohol Manufacturers May an alcoholic beverage manufacturer add CBD to a beverage it is producing on the licensed premises? • Not at this time. The manufacturer MUST receive formula approval from the TTB before beginning production and the TTB has stated that it will not approve any formula that contains CBD. The manufacturer may also need to obtain TTB label approval. Contact the TTB for more information. • The OLCC may request a certificate of analysis for the alcoholic beverage. Additionally, the OLCC may request proof that the manufacturer has received formula approval from the TTB.
• For non-alcoholic beverages, the OLCC’s rules do not prohibit adding CBD to a non-alcoholic beverage produced on a licensed premises. However, other state or federal agencies may have regulations prohibiting the production of these types of products. Licensees must be in compliance with all state and federal requirements. For Alcohol Retailers May an alcohol retailer sell a CBD product on the licensed premises? • Before purchasing or using any CBD product, a liquor licensee must verify the CBD is from hemp and not derived from marijuana. The CBD product must also be tested as required under ORS 571.330 and ORS 571.339. The CBD product cannot contain more than 0.3% THC. • Alcoholic beverages: Alcoholic beverages that contain CBD must have TTB formula approval. Because the TTB has stated that it is not approving formulas that contain CBD, retailers should be wary of any alcoholic beverage that claims to contain CBD. Selling a non-compliant product could have an impact on the retailer’s liquor license.
• Non-alcoholic beverages and other consumables: As long as: (1) the CBD in the product was sourced from hemp (and not marijuana); (2) the item was not purchased from an OLCC licensed marijuana retail store; and (3) the item was tested as required under ORS 571.330 and ORS 571.339, the rules at this time do not prohibit retailers from selling these types of products or making mixed drinks using these CBD ingredients. [INFORMATION PROVIDED BY THE OLCC]
For more information, visit the OLCC’s website at Oregon.gov/olcc/marijuana. And if you haven’t already, download and listen to ORLA’s recently published Boiled Down podcast where we sit down with OLCC’s Executive Director and Deputy Director to talk about alcohol and marijuana-related questions (download episode #27, “Liquor Liters, CBD Consumables, and Cage-free Chickens”). Subscribe to Boiled Down in your podcast app or visit Oregonrla.org/podcast. GREG ASTLEY, ORLA
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PORTLAND KITCHEN CABINET Grassroots Efforts Focusing on Community and Civic Engagement
From the Desk of Nicole Peterson
Government Affairs Coordinator, ORLA
Hi there! I’m Nicole, the new Government Affairs Coordinator for Oregon Restaurant & Lodging Association (ORLA) and the steward of the Portland Kitchen Cabinet and its steering committee. My focus will be on grassroots engagement with restaurateurs and supporting their community-building efforts, particularly in Portland.
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any in the restaurant industry are seeing business models and paths to sustainability changing rapidly. However, there are many opportunities to bring the strengths of restaurants to more Portland community conversations. The Portland Kitchen Cabinet is one opportunity for restaurant operators to get engaged and help us build relationships between the Portland restaurant community and Portland’s elected officials.
happening in Portland and how we can work together to better our community. This November, the Portland Kitchen Cabinet will again partner with Returning Veterans Program to promote Chow Down for Vets, a fundraiser celebrating and honoring America’s veterans on November 11. Returning Veterans Project provides services statewide to post-9/11 war zone veterans and their families and participating restaurants can choose the level of contribution that works for their operation.
ORLA launched the Kitchen Cabinet Initiative in partnership with the National Restaurant Association (NRA) as part of an effort to develop a more comprehensive game plan for restaurant industry mobilization and involvement in Portland. To date, we’ve established a group of over 150 active and motivated hospitality community members to serve as industry ambassadors with policymakers, opinion leaders, community leaders and partner organizations.
Kurt Huffman, owner of ChefStable and winner of ORLA’s Restaurateur of the Year, has been a tremendous help with continued leadership of the Portland Kitchen Cabinet alongside other Steering Committee members from the industry. Since the beginning, Kurt has taken on a leadership role in our Steering Committee and assisted with getting other restaurant operators involved in the Cabinet’s activities and events.
The Cabinet typically hosts several roundtables and community engagement activities each year and has been involved with initiatives like the “All User Restroom Challenge.” Portland City Commissioner Jo Ann Hardesty was invited to the Portland Kitchen Cabinet meeting on September 30 to talk about what is
As we start talking to elected officials, what ideas do you have for possible partner programs? Or, what are you already doing in the community that we can highlight? If you want to learn more, get involved, or share your ideas, please shoot me an email at NPeterson@OregonRLA.org or call 503.320.9823. NICOLE PETERSON, ORLA
Prior to ORLA, I served as Research Assistant for a state and local government affairs team in Illinois and worked on a variety of issues from happy hours to baseball stadium renovations. Since moving to Oregon, I’ve been in local government, giving me a broader understanding of the issues from the governing body perspective. I graduated from Northwestern University where I majored in Social Policy after a brief stint in journalism (Go ‘Cats’!) I am especially excited to work with the Portland Kitchen Cabinet, in partnership with ORLA and the National Restaurant Association. As is true for many of you, I love community building and giving back, so I relish the opportunity to help Portland restaurants and the broader community gather, collaborate, and flourish. This group of 150+ informed, active and motivated hospitality community members serves as industry ambassadors with policymakers, opinion leaders, community leaders and partner organizations. It is important to provide those opportunities for community engagement and advocacy for the industry not only to highlight but also celebrate the fact that our restaurants are important community assets.
Questions or want to say hello? Reach out to me at NPeterson@OregonRLA.org or call 503.320.9823.
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OREGON WILDFIRES Legislative Bills Introduced to Help Communities Threatened by Wildfire Impacts
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hile it is well understood that the health of the hospitality industry is pivotal to the economic health of Oregon, it has become more and more apparent in recent years that the well-being of Oregon’s forests is directly linked to the well-being of the hospitality industry. In the summer of 2017, wildfires blazed through the state, filling the air with smoke in many communities and threatening evacuation in others. Dry and windy conditions fueled the fires, making them often difficult to contain. Fire activity touched every single county in Oregon that year. These fires unquestionably had an outsized impact on the tourism industry in the state. A Dean Runyan Associates and Destination Analysts study commissioned by Travel Oregon estimated over $51 million in lost revenue from visitors in 2017. Restaurants and lodging bore the brunt of this economic downturn, with over $27 million in earnings lost combined. As summers have grown hotter and drier, the tourism industry has had to account for the likelihood of wildfires. In its 2018 season, the Oregon Shakespeare Festival had to cancel nine outdoor performances and moved 17 of them indoors to Ashland High School due to air quality. The organization is now considering a redesign of its outdoor theater to be able to guard against smoke after two consecutive years of significant revenue loss. Are smoke-filled summer skies the new normal in Oregon? In June, U.S. Senators Jeff Merkley and Ron Wyden introduced four bills they hope would prevent and mitigate damage from wildfire smoke. 18
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• The Wildfire Smoke Emergency Declaration Act may provide emergency assistance to states and communities if a smoke emergency is declared by the President. It would also allow for grants to small businesses as a result of lost revenue due to wildfire smoke if such an emergency was declared. • The Smoke-Ready Communities Act would establish grant programs for small businesses, homeowners and renters to address the “smoke resiliency” of their buildings. It would also allow for grants to public bodies for upgrades to HVAC systems for public buildings in order to mitigate wildfire smoke. • The Smoke Planning and Research Act would establish research centers for wildfire smoke at several higher education facilities, require the Environmental Protection Agency (EPA) to research the impact of wildfire smoke on public health, and allow the EPA to administer grants to government entities for developing community plans around smoke emissions. • The Farmworker Smoke Protection Act would require agricultural employers to provide farmworkers with protective gear when the air quality index reaches unhealthy levels. It also asks the Occupational Safety and Health Administration to develop a standard for farmworkers regarding wildfire smoke. Senator Merkley has also reintroduced a fifth bill, the WildfireResilient Communities Act, which previously stalled in the last session of Congress. Under this plan, the Forest Service would receive $1 billion to speed and scale up wildfire prevention
projects like thinning and brush removal. It would also fund programming for federal agencies to collaborate with local communities in planning and preparing for wildfire, and it would permanently reauthorize the Collaborative Forest Landscape Restoration Program. The program is a public / private partnership with the U.S. Forest Service and local community groups; these groups build and execute a forest restoration plan together, ultimately reducing the risk of wildfire. There are currently three programs in Oregon: Deschutes Skyline Landscape, Lakeview Stewardship Landscape, and Southern Blues Restoration Coalition. In the other congressional chamber, U.S. Representative Greg Walden is a co-sponsor of the Resilient Federal Forests Act to encourage active forest management. This bill seeks to loosen environment impact review by expanding the usage of “categorical exclusions” to expedite forest management activity projects up to 10,000 acres. It would also allow forest thinning to occur without the threat of litigation, instead establishing an arbitration process. An option Oregon congressional leadership has been hesitant to pursue is prescribed burning. Although fire experts say it is a useful tool in preventing massive wildfires, many are reluctant because of public health concerns of smoke and the current state of forests in Oregon. U.S. Representative
Peter DeFazio has said many forests are “too dense” at the moment to safely use prescribed burning, but once thinned, might be able to allow controlled burning on a consistent basis. On the state level, Governor Kate Brown has created a new council, the Wildfire Response Council, to make recommendations on how to mitigate wildfires. The council includes representatives from firefighting agencies, the timber industry, local government officials, and ORLA member Caroline Lipps from Thunder Island Brewing.
Where to go for training: O R L AT R A I N I N G . C O M
Now more than ever, we must protect the state’s natural beauty and lush forests. In caring for the health of these revered places, we also sustain our own industry and the communities we work in. With leadership from lawmakers and the hard work of engaged stakeholders, this symbiotic relationship will hopefully continue to thrive. NICOLE PETERSON, ORLA
References
The Impacts of the 2017 Wildfires on Oregon’s Travel and Tourism Industry, July 16, 2018; Dean Runyan Associates and Destination Analysts Merkley, Wyden Introduce Major Package of Bills to Help Communities Harmed by Wildfire Smoke, June 12, 2019; Merkley.senate.gov
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Oregon Wildfire Information, Travel Oregon; Industry.traveloregon.com OregonRLA.ORG 19
Franco Console, executive chef, Larks Home Kitchen Cuisine
PHOTO COURTESY OF: LARKS HOME KITCHEN CUISINE / ASHLAND SPRINGS HOTEL
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Adapting to Thrive
Shifting Customer Expectations, Economic Challenges Drive New Opportunities
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hange is hard. That’s a fact. And unfortunately, it’s also true that change is everywhere right now. July brought yet another increase in the minimum wage, with rates climbing 50 cents per hour in all parts of the state. New laws around predictive scheduling, workplace safety and family leave continue to add additional costs. Consumers’ interest in food carts, meal kits, buying prepared meals in the same place they buy their groceries, and finding overnight accommodations through services such as Airbnb and Stay Alfred is disrupting business for more traditional restaurants and hotels. But rather than looking to the future with despair and hopelessness, why not look for opportunities to better understand client demands and make your business more sustainable? We asked four members to share what they’re doing to deal with increases in minimum wage, shifting consumer expectations, housing shortages in tight markets and other challenges facing hospitality companies.
Meeting changing customer needs It used to be that restaurant diners just wanted a good meal and a good time. But as people increasingly look to spend their money at companies that reflect their values and interests, restaurants and hotels that demonstrate a commitment to their ideals are seeing increased success. Southern Oregon eateries like Larks and Larks Kitchen & Cocktails are an excellent reflection of the farm-to-table trend that’s been front and center in consumers’ minds for years. Larks, located in the historic Ashland Springs Hotel, has a long-held commitment to local purchasing. “Almost all of the menu items come from local ranchers and farmers,” says director of food and beverage Dana L. Keller. “Franco Console, who has been our executive chef for 11 years, is
very in tune with all the local farmers. He calls them personally and goes out and visits their farms. He’s even gone as far as talking to some of the farmers about growing specific produce for the restaurant and setting aside popular items such as heirloom tomatoes for the restaurant.” Larks Kitchen & Cocktails sits inside Inn at the Commons, a renovated motor lodge in Medford. Since the setting is less formal, the restaurant follows suit. The menu has more diner-style food, including meatloaf and grilled cheese sandwiches, and tends to focus more on craft cocktails using spirits from Oregon distilleries. But the commitment to local sourcing remains the same. The focus on supporting Oregon growers and businesses is primarily a reflection of the company’s values, which include lowering its carbon footprint and purchasing from local-based entities. But it doesn’t hurt that consumers are passionate to support the same things. “People like to go out to dinner and know that the ingredients on the salad that they ordered were either organically grown or are local, fresh and of high quality,” says Keller. It helps the restaurants stand out from the competition and draw people in. The freshness and great taste of the meals, thanks to those local-sourced ingredients, helps encourage them to come back. At the Best Western Plus Hood River Inn, executive chef and food and beverage director Mark DeResta is appealing to people’s hearts as much as their stomachs. Hood River remains a hot tourist destination, but the year-round population has grown significantly in recent years as well. DeResta is constantly looking for ways to draw more local people to Riverside and Cebu Lounge, the onsite hotel and bar, especially during times when the tourist population is quieter. “What we’ve done to be sustainable in a very competitive market is to be really involved in the community,” he says. “We continue
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Amalfi’s Restaurant and Mercato, Portland PHOTO CREDIT: HEIDI JANKE
to support local farms. All of our greens and vegetables are sourced locally in the season. We support the breweries and wineries, and we buy things like kombucha, jam and honey from local producers.” But DeResta also looks for opportunities to give back to local organizations. “Eight or nine years ago, when we had big budget cuts going on in the school district, we started donating 100 percent of children’s menu proceeds to support middle school sports,” he says. He reached out to the local warming center that serves homeless community members to see about donating extra food from the restaurant. He ended up getting very involved and now organizes a catering calendar for 16 local restaurants and breweries to donate food on a revolving basis. DeResta does other things to appeal to locals. There is a daily ‘buy one, get one free’ pasta special that is available five nights a week between January 1 and March 31. But the combination of local purchasing, consistent quality and community giving—not to mention high rankings on travel websites—has been the magical formula for attracting people to the dining facilities. “We can retain our hotel guests to stay and dine with us by mentioning our support for the community and the organic local produce,” he says. Residents keep coming for exactly the same reasons. Although community support may be easier to recognize in a small town, DeResta believes it’s also possible in larger communities. “My advice is to work really hard to get involved in your community and not just wait for groups to come to you,” he says.
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It’s also important to share stories about the company’s good deeds. “If you’re doing great things, not everyone is going to know about that,” DeResta points out. “One thing I really try to do with our staff here in all departments is to share the information about why we do this and what we’re doing. If you give your staff the information and they feel really good about it, they’re going to go out into the community and talk about it. A lot of people are surprised. They’ll say, ‘I didn’t know we did that’ or ‘I didn’t know it was so involved.’ It gets people invested in something to work for every day. It creates a culture that’s infectious.”
Diversification on all fronts The physical layout of Amalfi’s Restaurant & Mercato in Portland looks much different today than it did five years ago. As the company’s management looked at the changing regulatory environment, they knew diversification was going to be key to survival. So, when they remodeled the eatery, one of the rooms was transformed from a sit-down dining area to a grab-and-go storefront known as the Mercato. “It’s a retail part of our business where you can come in and get anything from our menu to go,” says Kiauna Floyd, the company’s president and owner. “We can operate that much more sustainably than the full-service restaurant.” The business model at Amalfi’s looks pretty different too. It’s now possible to find Amalfi’s bottled salad dressing for sale in local grocery stores. To reflect consumers’ increasing interest in events and experiences, the company has put a lot more energy into its catering business in recent years.
“For some of us who have been around for a long time, without changing your model, it’s harder to weather the regulatory storms,” says Floyd. “It’s important to not just pull all your eggs in one basket. If you can diversify things and monetize off of different parts of your business… it’s a must.” In addition to diversification, Floyd says finding ways to lower labor costs has also been very important for the company’s survival. The Mercato requires a less intensive staffing model, which is part of what makes its bottom line look better. “That’s why we’re seeing a big shift in our industry to counter service,” she points out, as others look for ways to lower the number of people it takes to operate.
“It’s challenging because this is the hospitality industry, so while we’re all looking at ways we can decrease our numbers, we do provide a service,” says Floyd when discussing the Mercato. “I’m always worrying about, ‘is everyone coming through the doors getting taken care of? Are their needs getting met?’ It’s a balance act for sure.” Although the changing regulatory environment presents plenty of challenges, Floyd says that it’s been fun to shake things up a little. “Things can kind of get stale sometimes. Making some changes to your business and your model is always exciting.”
Neuman Hotel Group’s Luna Café in the Ashland Hills Hotel recently transitioned to counter service. The café still features food that’s locally sourced and a wine and beer list full of products made in Oregon. But with counter service, diners can get all of those things more affordably. “We’re sticking to our values of celebrating Oregon’s bounty, but we’re also controlling labor costs,” says Keller of the decision to make the change. Any shift in a restaurant’s service model needs to be considered carefully. “Customers are looking for a more causal concept for food and atmosphere,” Keller advises. “It made sense to do it at Luna Café because the hotel and restaurant have a hip and casual vibe.” People expecting a full-service experience may not perceive or welcome a shift away from that.
Amalfi’s Restaurant and Mercato, Portland PHOTO CREDIT: HEIDI JANKE
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Kiauna Floyd, president and owner, Amalfi’s Restaurant and Mercato, Portland PHOTO CREDIT: HEIDI JANKE
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Seeking affordable employee housing and livability Oregon continues to be one of the least affordable places to live in America. A study by U.S. News and World Report listed it as 48th in terms of affordability, with only California and Hawaii ranking lower. As the cost of housing in many parts of Oregon continues to rise, service industry workers (especially those looking for seasonal employment) are finding it more and more difficult to find a place to live. In some communities, including cities such as Portland and Bend, the cost of housing is the biggest barrier. In others, especially resort destinations such as the coast, there simply isn’t enough rental housing available. All of this makes it harder for hospitality companies to recruit a qualified workforce—and adds a level of stress to employees’ lives, which may affect satisfaction with their job and temperament when dealing with customers. One way Salishan Resort in Gleneden Beach has dealt with that is bringing in international interns. Unfortunately, there were few options for housing those folks. The company had traditionally allowed students to stay the hotel, but that presented numerous problems. “There’s nowhere to go from the hotel,” says Ryan McCarthy, CFO of Alpha Wave Investors, owners of the resort property. “They can’t walk to grocery stores or anything else.” The cost associated with providing room and board was significant. In addition, students were often hanging out in common areas, which took away from the overall guest experience. Temporary employee housing was not a problem that was going to solve itself, so the company created its own solution. Alpha Wave Investors set up a subsidiary organization and purchased the Depot Bay Inn, a 14-room hotel that will operate under the Soul Community Planet brand for nine months out of the year. During the remaining months, the hotel will be available only to seasonal employees. The company spent 2018 and early 2019 gutting the hotel and rebuilding it to meet the needs of both guests and employees—which, thanks to changing consumer interests, align better than one might believe. “With the proliferation of Airbnb and VRBO, people have gotten used to being able to buy their own food and cook it,” says McCarthy. The first floor of the hotel is set up more like a hostel, with a shared kitchen and lounge areas. This gives guests the ability to prepare their own meals and mingle with others in a casual atmosphere.
Alpha Wave put plenty of time into making sure the revenue model for this arrangement would really work. “The key thing is if you’re going to buy a property, you have to make sure that the employees are paying the right amount of money for rent and you’re also taking into consideration the recovery of rev par at the base hotel. Employees pay approximately $140 a week, and these are double occupancy rooms. Income should really be split with the other hotel to make sure it’s an arms-length transaction.” The other thing they’ve taken into consideration is that expenses for the Depot Bay Inn during the time of employee occupancy are much lower. “We’re not paying housekeeping because nobody’s cleaning,” McCarthy says. “We’re not paying credit card fees. Our expenses are extremely low during the summer period. It becomes actually an apples to apples comparison to how much money we’d be making if we were running it as a hotel.” A year into this experiment, McCarthy says they’ve learned a few things through the experience. “Setting expectation with employees up front is something that’s key.” The housing isn’t set up for families, and it requires people to have a roommate, do all of their own shopping and cooking, and live in a somewhat communal environment. Not everyone is comfortable with this arrangement, so being clear about living conditions is important. “The first year (last year) was a little bit challenging because we moved the students halfway through the season,” he adds. “I don’t recommend doing that because it’s a logistical nightmare.” Salishan provides employees with transportation between the property and the Depot Bay Inn, which is about six miles away. This provides a logistical challenge of its own. The goal is to increasingly offer the housing to domestic rather than foreign workers because they’re more likely to have their own cars, McCarthy says. In addition to saving the hotel money and making it easier to secure great seasonal employees, McCarthy believes the Depot Bay Inn will provide a much better experience for staff. They’re now within walking distance of the stores, sights, restaurants and entertainment that Depot Bay has to offer. All of the rooms have beautiful ocean views, and it’s easier for them to prepare their own food (a consideration that’s especially important for international students). “We want our employees to have a phenomenal experience when they’re here,” McCarthy says. “Happy employees make happy guests at the end of the day.” SOPHIA BENNETT
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WORKPLACE SAFETY It’s Your Business: The Simple Safety Step Everyone Should Know
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early every home and workplace have a ladder lying around someplace. So, you’d think most people would know how to use them safely, right? Wrong.
“Falls are one of the top three causes of serious workplace injuries,” said Leigh Manning, senior safety management consultant at SAIF. “And ladders are a leading culprit.” One easy tip everyone can try is “the belt buckle rule:” always keep your belt buckle (or belly button) between the rails of the ladder. “This ensures you aren’t overreaching or throwing off your balance,” explains Manning. Check out SAIF’s YouTube channel for a quick video reminder: Youtu.be/-cNAePG0bAI. SAIF offers these additional tips to stay safe when doing work that’s out of your reach: • Do make sure you have the right ladder for the job. Don’t use boxes, tables, chairs, counters or similar items in place of a ladder. • Do have appropriate stepladders available when the reach is above your head. • Do inspect ladders before each use. • Don’t use a broken ladder. • Do check the weight limit rating on your ladders and stepladders. Make sure the ladder can support employee weight and anything they may be carrying or moving. • Do set up a ladder on a stable, level surface. Open stepladders fully and engage the locking mechanism. Secure the ladder, if necessary, to prevent movement. • Don’t use a stepladder as a straight ladder. • Do maintain three points of contact (both feet and one hand, or both hands and one foot) when climbing. Don’t carry tools in your hands when climbing. Wear a tool belt or haul them up with a rope. • Don’t stand on the cap or top rung of a stepladder, or on the top three rungs of an extension ladder. Make sure extension ladders extend at least 3 feet past the step-off. • Do wear slip-resistant footwear and keep the ladder free of mud, dirt, and debris. • Don’t use a ladder if you are light-headed, dizzy, on medication, fatigued, or otherwise impaired. • Don’t leave employees alone when they’re working on a ladder or have a way to check on them periodically to make sure they are okay. To learn more about preventing slips, trips, and falls, visit SAIF.com/falls, or watch our on-demand webinar at saif.adobeconnect.com/slipstripsfalls. SAIF CORPORATION
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DIGITAL ADA GUIDELINES What Restaurants and Lodging Operators Need to Know
seen these ADA guidelines also being applied to business websites. In 2018, there were over 2,200 website-related ADA lawsuits filed against small businesses across the United States. Restaurants and hotels are part of the top 3 industries being targeted.
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ince the Americans with Disabilities Act (ADA) passed in 1990, businesses have learned of the importance of accessibility, building their brick and mortar to be physically accessible to all customers. However, in the last few years, we’ve
Digital accessibility is the ability for a website, mobile application or electronic document to be easily navigated and understood by people with disabilities. In the absence of guidelines from the Department of Justice (DOJ), lawsuits have pointed to the Web Content Accessibility Guidelines (WCAG) 2.1 as the standard for digital accessibility. It is imperative for restaurants and lodging operators to ensure that their websites are digitally accessible not only to avoid lawsuits but to ensure the same positive guest experience for everyone. The information in WCAG is helpful, but it’s also confusing. And while there is no possible way to make your website 100 percent ADA compliant, especially since the DOJ has yet to publish laws on how to comply with ADA website guidelines, there are actions you can take to make your website more accessible.
WoodSpring Suites - Gresham, OR
Hyatt House Woodspring Suites- -Beaverton, Gresham, OR OR
Building | Renovating | Revitalizing
Seattle | Portland | Sacramento | Pleasanton | Irvine
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Oregon Restaurant & Lodging Association | AUTUMN 2019
Hilton Garden Inn - Wilsonville, OR
Northwest Corner
deacon.com
FIVE EASY TIPS TO IMPROVE YOUR WEBSITE’S ACCESSIBILITY:
1
Call your website developer and ask them if they are building your website in accordance with WCAG. Designing and developing websites in accordance with these guidelines requires specialization and not all web developers build on certified accessible templates.
2 3
Ask your third-party sites like reservation, gift card and online ordering platforms whether or not they are following WCAG since this too affects your site’s ability to adhere to ADA guidelines. Alternative text (alt-text) provides visually impaired users the ability to have important information read out loud via assistive technology. Add alt-text to images that convey information or are active (links, button, etc.). Alt-text is not needed for decorative images on your website. Your content
management system (CMS) should provide a way for you to put in alt-text. If not, you should contact your web developer.
4 5
All hyperlinks should describe the destination of the link. Instead of saying, “click here,” a better hyperlink would be, “view menus.”
Convey information through text rather than text embedded in images or PDFs. Using text throughout your site allows people who use screen readers to access the content easily. If you have to use PDFs on your website, then they still need to be readable by screen readers. See how to make a PDF accessible at Adobe.ly/2MtJ6dK. BentoBox website templates offer these accessibility features and much more. For more information visit GetBento.com. PERRY RAHMAN-PORRAS, CHANNEL STRATEGY MANAGER AT BENTOBOX
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OregonRLA.ORG 29
O R L A H E A LT H S O L U T I O N S A T A G L A N C E
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Extra or additional insurance to cover specific areas of concern.
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HEALTH SAVINGS ACCOUNTS
Rx DISCOUNT CARDS
ADA WEBSITE COMPLIANCE
An HSA lets you set aside money on a pre-tax basis to pay for qualified medical expenses.
Free pharmacy discount card - save up to 75% on all FDA-approved prescription medications.
Make your website ADA compliant and deter ADA Title III accessibility lawsuits.
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Oregon Restaurant & Lodging Association | AUTUMN 2019
REBUILDING WITH RENEWED SPIRIT Albany Restaurant Blessed with Community Support Post Fire
Novak’s Hungarian Restaurant
PHOTO CREDIT: RYAN GARDNER, VISUAL PEOPLE DESIGN
M
y personal history with Novak’s Hungarian Restaurant began way back in the mid 80s. I’d frequently tag along with my grandparents when they enjoyed Sunday lunch after church services had ended. My order was the same every single time: delicious Chicken Paprikas –moist, fallapart chicken covered in a creamy paprika sauce over a bed of soft, buttery Hungarian noodles. Their freshly made house bread was another favorite. The standout experience at Novak’s though, was owner Joseph Novak. Joseph was the face and personality of the restaurant while his wife, Matilda, ran the kitchen and created each dish. Joseph had an iconic presence in the dining room. His smile was contagious, his Hungarian accent thick, and he was always more than willing to offer hugs and conversation. Each time we’d enter the restaurant, Joseph would greet my grandparents by name and stop by our table for a chat. It seemed
as though this was his main job. He made sure everyone felt like a VIP guest when they came to eat at Novak’s. So, when I read through my Facebook feed early this spring and saw that Novak’s had a two-alarm fire, it immediately grabbed my attention. I learned more about the fire when I recently met with family members Karen, her sisters Kay-Marie and Matilda, and their mother–also Matilda (affectionately known by all as “Mama”). It was supposed to be a slow Wednesday morning. Novak’s had been running a skeleton crew due to a nasty streak of cold weather that slowed business. Karen said she was late that morning – about 45 minutes behind her usual routine. “I opened the back door of the restaurant and dark smoke poured out. Stupidly, I ran in to where the fire was. I thought to myself, ‘Oh no, I was in here Monday, did I leave the oven on? What did OregonRLA.ORG 31
Novak’s Hungarian Restaurant
PHOTO CREDIT: RYAN GARDNER, VISUAL PEOPLE DESIGN
has never had more than a few days here and there away from the business. As I write this, the Novak sisters, along with mother Matilda, are enjoying a retreat in Sisters for a few days. The break has also given them an opportunity to get out and enjoy the community more. They’ve enjoyed visiting other restaurants and for the first time they were able to attend Albany’s annual Restaurant Week, enjoying several of their downtown restaurant peers. “It’s been great to have the time to support some of the restaurants and businesses that have been so supportive of us since this all happened,” said Karen. At the time of the fire, Novak’s had several orders for specialty cakes and events that they were scheduled to cater. Matt and Janel Bennett, owners of Sybaris Restaurant, offered their kitchen to the Novaks so they’d have a way to fulfill those orders and take care of their catering customers. “The outpouring from the community was overwhelming,” Karen continued. “Within a couple days, someone had started a GoFundMe campaign to raise support to help cover unexpected costs, and Janell Bennett and Lise Groto quickly organized a large community fundraising dinner to raise money and support for our employees. It’s been incredible, and humbling.” I do?’ I took about 10 steps forward, couldn’t breathe, couldn’t see anything. I just turned around and ran out coughing and then called 911,” recalls Karen Novak, owner of Novak’s Hungarian Restaurant. Instead of employees filtering in over the next hour or so to finish prep for lunch service, fire trucks and emergency vehicles lined the street, and emergency responders combed the restaurant to hunt down the source of the fire and secure the space. It was a scene that no business owner ever wants to experience, though there has been a silver lining for the Novaks. After the fire department was finished, the Novak family selected Summit Cleaning and Restoration to take care of the cleanup and rebuilding of the restaurant. While damage from direct flames was relatively minor, the smoke and soot damage throughout the space was extensive, including their walk-in freezer and cold cases. It would prove to be a multi-month project, especially because Novak’s is located inside a downtown historic building. While there were many meetings with insurance adjusters and their Summit project manager, the Novak sisters discovered they actually had some downtime to relax and even vacation -- something they’d rarely had extended time to do. For more than 30 years, the family 32
Oregon Restaurant & Lodging Association | AUTUMN 2019
The Novaks have also been able to make some updates to the design of the space that they believe customers will enjoy. High ceilings and brick walls in the old building caused some customers to complain about the dining room being “too noisy.” Summit project manager Natalie Walker went to work to find a solution and found faux tin acoustic ceiling tiles that match the period and style of the downtown building. Karen and the family were thrilled with the update! A new combined bar will serve as a barista counter by day and transform into a cocktail bar in the evening. Servers won’t have to go all the way to the back-of-the-house for specialty drinks and can instead serve them right from the front. What advice would the Novaks give to other restaurant or business owners dealing with a fire or major damage event in their building? The sisters offered, “Be familiar with your insurance coverage ahead of time. This way you’ll feel more confident and empowered should something happen. We also really felt like it was a great advantage to have Summit involved right from the beginning. Natalie, Jeremy and Matt were confident in the process ahead and that really put us at ease. They really made it so we didn’t have to be so involved in the insurance claim process and were able to enjoy the downtime as the restaurant was being restored and rebuilt.” CHRIS NORDYKE, INDUSTRY LIAISON AND CONTRIBUTOR
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WORKFORCE PROGRAMS ARE A BREWIN’ ORLA’s Education Foundation Savors Progress at a Steady Pace
“T
he way of progress is neither swift, nor easy.” - Marie Curie
The hospitality industry may be behind others, such as healthcare, in terms of anticipating workforce challenges and creating a plan to address them. However, with growing partner engagement, we are starting to see small but steady progress this year! One notable achievement has been the ability of the Oregon Restaurant & Lodging Associaiton Education Foundation (ORLAEF) to hire a part-time ProStart and Foodservice Workforce Liaison. Irina Bakun’s focus is to assist culinary program teachers integrate foodservice/hospitality career awareness, experiences, and connections routinely into their teaching and activities. ORLAEF’s goal is to utilize Irina’s time and experience to work directly with districts, their teachers, and industry partners to help create clear 34
Oregon Restaurant & Lodging Association | AUTUMN 2019
pathways and opportunities for career exploration and employment. Funding came from a grant from the National Restaurant Association Educational Foundation. Other encouraging progress includes: PORTLAND ORLAEF’s partnership with Worksystems resulted in a pilot program to use our industry’s guest service training curriculum with nine of its social service workforce training partners. The agency’s clients will learn valuable skills and more about jobs in our industry. OREGON COAST Thanks to collaboration with the Oregon Coast Visitor’s Association, we have created a strong partnership with Northwest Oregon Works. The workforce development agency helped fund in-person training for prospective employees using AHLEI’s
stackable credentials as well as current employees looking to upskill and advance their careers. Combined with a fall training effort, 74 industry certifications were earned. SALEM AREA ORLAEF is working in a pilot program with the area’s school districts who support seven high school culinary training programs. Our joint goal is to build closer ties with local industry members and to create a model for productive and sustainable industry involvement with classes that focus on culinary and hospitality training. RETENTION STUDY We commissioned a best practices study with researchers from OSU’s Hospitality Management Program. Several Oregon businesses have implemented creative programs that have enhanced their employee retention. Watch the videos at Oregonrla.org/workforcepractices. GUEST SERVICE GOLD® Since the training initiative’s launch, the course has been used by 1,833 individuals and resulted in 1,746 participants earning their Certified Guest Service Professional designation. To learn more about the course go to OregonGuestService.com. SUPPORT The leadership input and support from key partners who have contributed significant in-kind and cash resources has helped extend our reach via the programs above and also includes new industry training with food waste reduction. We are grateful to sponsors Travel Oregon, Sysco Portland, Vesta Hospitality, The Salem Convention Center, Metro, Curtis Restaurant Equipment, The Old Spaghetti Factory, and The Nines for their in-kind and monetary support as well as individual donors who have generously contributed funds. Please consider helping us continue our work by becoming a sponsor, donating, and/or becoming involved with our school programs. WENDY POPKIN, ORLAEF “Progress means getting nearer to the place you want to be.” - C.S. Lewis About
Wendy Popkin is the Executive Director for ORLA’s Education Foundation (ORLAEF), a nonprofit foundation dedicated to supporting the educational and training needs of the hospitality industry. Wendy is a 30+ year career veteran who describes herself as “fanatically enthusiastic about helping others enjoy the same type of fabulous career opportunities I have enjoyed in the hospitality industry.” OregonRLA.org/EdFoundation
New Hire: Irina Bakun Oregon ProStart and Foodservice Workforce Liaison Earlier this year the Oregon Restaurant & Lodging Association Education Foundation (ORLAEF) hired a familiar face as well as an industry achiever. With a keen interest in cooking, Irina started out as a ProStart student with South Salem High School, eventually leading a team to the National ProStart Invitational in 2008. After graduation, she furthered her culinary education at the Oregon Culinary Institute and eventually landed an internship at Sybaris Bistro in Albany where she later became Sous Chef. When she returned to school to earn her management degree, she interned with ORLAEF to assist with the ProStart competition planning. After graduating, her pathway led to back to the Salem/Keiser School District where she taught culinary for several years. It was her firsthand experience with ProStart, along with her passion to give students the guidance and encouragement she had received while in the program, that led her to becoming a ProStart mentor. In March of 2019, Irina was recognized by ORLAEF as ProStart Mentor of the Year during the Oregon ProStart Invitational. Her experience and varied skills make her the perfect candidate for the ORALEF’s new position. Irina has enjoyed many amazing experiences in the hospitality industry fueled by the individual connections she made. “I love food! But the connections with people, often through the sharing of food, is the best part! Throughout my career I have had wonderful mentors that saw my potential and pushed me to become better at what I do,” Irina recalls. Irina’s new role is unique and offers her an opportunity to support teachers and tell students about the many opportunities available within the hospitality industry. She will also be helping engage the industry in order to increase the flow of potential students into the workforce. “Our industry provides so many possibilities–to cook, serve, learn, teach, travel and support the community around us. I’m excited to share these opportunities with the next generation of hospitality professionals!”
OregonRLA.ORG 35
CELEBRATING CHAMPIONS ORLA’s Hospitality Awards Honor Outstanding Industry Members
T
o no surprise, Oregon’s restaurant and lodging industry is filled with remarkable, passionate people who give their all on a daily basis because they love what they do. This fall, we had the pleasure of honoring a few of these individuals who truly embody what the hospitality industry is about: serving others. Four industry members, representing two restaurants, a hotel and a purveyor, earned statewide recognition for their
outstanding contributions to the industry and commitment to exceptional service.
LODGING OPERATOR OF THE YEAR CHUCK HINMAN General Manager, Best Western Plus Hood River Inn Celebrating 30 years with the Best Western Plus Hood River Inn, Chuck Hinman not only has met a plethora of guests over the years, but he’s also made friends with a good segment of the Hood River community. The phrase, “Everybody knows Chuck,” is heard frequently among staff, and he’s a familiar face to guests and locals alike when he does his walk-through in the lounge almost every day during the ever-popular Happy Hour. Chuck is the quintessential host, from making every guest feel welcome to creating a strong sense of family among his staff. Over ten of his managers have been with the hotel between 10-30 years, a testament to his respected leadership in the organization. Beyond the property lines, Chuck has been a tireless advocate of the hospitality industry, engaging with local policy makers and agencies on issues that directly affect the community he serves. In addition to the many volunteer Boards, organizations and charities, Chuck served several years on the association’s Board of Directors and is a past Chair.
RESTAURATEUR OF THE YEAR KURT HUFFMAN Owner, ChefStable Like many in the restaurant industry, Kurt Huffman’s first job was as a dishwasher at 14 years old. Despite being encouraged to get out of the restaurant industry early on, he felt the gravitational pull to stay in. “Restaurants are where people come to celebrate,” he says. Kurt admits he’s one of those people who is eternally optimistic in an industry with “zero predictability.” Through his experiences, he’d met many chefs with a passion for cooking but who lacked expertise on the business side. This inspired him to go to business school and learn how to manage operational details so chefs can focus on food and service. With the launch of ChefStable, a Portland-based hospitality management and consultancy group, Kurt and his team have partnered with talented and passionate chefs to design, build and operate restaurants, bars, event spaces, a winery, a bakery, a full-service catering company and a hotel opening this Fall.
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Oregon Restaurant & Lodging Association | AUTUMN 2019
These industry “champions” were nominated by their peers and recognized during the annual ORLA Hospitality Conference, held September 16-17, 2019 in Seaside. We applaud their passion and dedication, recognizing how they’ve helped raise the bar for service
and excellence in Oregon’s hospitality industry. In case you missed the event, visit YouTube.com/ORLAvideos to see their stories. We love sharing stories like these of industry members who exemplify Oregon hospitality.
these awards, please take a minute to nominate them and help share their story. It’s also a great way to recognize your staff who go the extra mile. Visit OregonRLA.org/Awards to access the form and for more information. LORI LITTLE, ORLA
If you know someone who may be a good candidate for one of
EMPLOYEE OF THE YEAR DOROTHY PETERSON Store Manager, Papa Murphy’s Pizza - Junction City “Caring, welcoming, and loyal” are three words often used to describe Dorothy Petersen. But if you ask the 10-year-old boy who wrote a school paper on how he wanted to make pizzas when he grows up because of Dorothy, he would probably say that she’s “awesome.” A frequent customer, the boy and his mom came into the store on his birthday and to their surprise, Dorothy got him in an apron and helped him make his own pizza. For close to 20 years Dorothy has been a fixture in the community, serving up her best smile and wonderful service at the Junction City Papa Murphy’s. She knows almost every guest and goes out of her way to make everyone welcome, including fellow staff. Dorothy is like a mother to every young person that is hired there, taking them under her wing and teaching them important life skills. Having her on the team has been instrumental to the success of this smalltown pizza restaurant.
ALLIED PARTNER OF THE YEAR TOGATHER RESTAURANT CONSULTING Owner, Seth Gruschow When searching for a consultant to help you find business solutions, qualities like professionalism, experience and knowledge are a given. Togather Restaurant Consulting has those qualities and many more. In fact, Seth Gruschow, founder and owner of Togather, has also been called a “mentor.” With twenty-five years of restaurant industry experience, Seth along with his team work with influencers and innovators to create a networking web of local and reliable businesses. Their dedication to the industry doesn’t stop there, however. Seth and Togather have been a tremendous resource for restaurant and lodging operators by sharing their expertise at industry events, sponsoring programs like ORLA Education Foundation’s ProStart, and even providing moral support to business owners who need that bit of validation they’re doing things right.
OregonRLA.ORG 37
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38
Oregon Restaurant & Lodging Association | AUTUMN 2019
LODGING PERFORMANCE Hotel Benchmark Data The information contained in this report is provided by STR. For detailed lodging performance data for your area, contact STR at 615.824.8664 ext. 3504 or info@str.com. ORLA members can log in to access to monthly reports on OregonRLA.org in the Resource Library. MONTH - JULY 2019 VS JULY 2018
Occupancy (%)
Avg Rm Rate ($)
RevPAR ($)
Percent Change from August 2018
2019 2018 2019 2018 2019 2018 Occ ADR RevPAR Room Room Room Rev Avail Sold United States
81.4
82.3
185.33
185.19
150.82
152.38
-1.1
0.1
-1.0
0.5
1.5
0.4
Oregon
79.8
81.0
144.30
145.83
115.14
118.07
-1.5
-1.0
-2.5
-0.5
2.0
0.5
Portland, OR
83.2
84.0
154.79
158.41
128.86
133.14
-1.0
-2.3
-3.2
0.2
3.5
2.5
Oregon West Area
75.6
78.7
140.82
142.21
106.43
111.93
-4.0
-1.0
-4.9
-4.4
0.5
-3.4
Oregon East Area
76.6 76.2 129.07 128.96 98.90 98.21 0.6 0.1 0.7 1.6 0.9 1.5
73.8 73.4 135.04 134.12 99.62 98.50 0.4 0.7 1.1 3.1 2.0 2.4
Pacific
YEAR TO DATE - JULY 2019 VS JULY 2018 Occupancy (%)
Avg Rm Rate ($)
RevPAR ($)
Percent Change from YTD 2018
PARTICIPATION Properties
Rooms
2019 2018 2019 2018 2019 2018 Occ ADR RevPAR Room Room Room Census Sample Census Sample Rev Avail Sold 67.1 67.0 131.85 130.44 88.45 87.38 0.1 1.1 1.2 3.2 2.0 2.1 56473 34561 5346987 4009448 U.S. Pacific 74.4 74.6 172.29 169.29 128.10 126.26 -0.3 1.8 1.5 3.0 1.5 1.2 8219 4612 773427 606230 65.9 65.7 122.92 122.43 80.95 80.43 0.2 0.4 0.6 3.3 2.6 2.9 932 508 67851 48853 OR PDX 72.7 73.5 135.36 135.62 98.46 99.61 -1.0 -0.2 -1.2 3.2 4.5 3.4 291 226 29634 26819 OR West 59.9 59.5 115.49 115.57 69.23 68.80 0.7 -0.1 0.6 1.4 0.8 1.4 282 119 16858 9139 58.3 56.5 105.53 99.75 61.54 56.37 3.2 5.8 9.2 10.2 1.0 4.2 157 72 9014 5247 OR East
NEW MEMBERS ORLA Would Like To Welcome The Following New Members From June - August 2019
• A’ Tuscan Estate Bed & Breakfast, McMinnville • Abbey Road Farm Bed and Breakfast, Carlton • Abigail’s Bed and Breakfast Inn, Ashland • Allied Video Productions, Salem • Ava Gene’s, Portland • The Butte, Portland • Cascadia Laundry Solutions LLC, Woodburn • Cougar Canyon Cottage, Myrtle Creek • The Crazy Pepper Cantina, Hood River • Delfino Vineyards B & B, Roseburg • El Cora Sports Grill, Salem • Filbert’s Farmhouse Kitchen, Aurora • Fultano’s Pizza, Warrenton • Gravy, Portland • Growler Guys, Portland • The Home Place Restaurant, Silverton • Hops ‘N Drops, Happy Valley • Hubbell Communications, Portland • Huckleberry Inn, Government Camp • Jackson’s Corner, Bend • The Joel Palmer House, Dayton
• The Katherine Inn, McMinnville • Katie’s Cafe, Portland • Lum Yuen Restaurant, Keizer • Mr. Smith’s Sports Bar & Grill, Medford • Norma’s Seafood & Steak, Seaside • NorthWest Raw, Ashland • Oculus Inc., Portland • Original Dinerant, Portland • Picnic Basket, Cannon Beach • protel North America, Atlanta, GA • The Raven Bar & Grill, Woodburn • Rox Services, Lake Oswego • Sharkbites Seafood Café, Coos Bay • Sixth Street Bistro and Pub, Hood River • Summit Grill, Joseph • Tacos El Zarape, Ontario • Talbot, Korvola & Warwick, LLP, Lake Oswego • Thyme Savours LLC, Salem • Tom’s Pancake House, Beaverton • Urban Farmer Steakhouse, Portland • Wildhorse Resort & Casino, Pendleton OregonRLA.ORG 39
WHAT YOUR PEERS ARE SAYING Meet Some Oregon Restaurant & Lodging Association Members
M
embership in ORLA means being part of the only organization in the state devoted to protecting and promoting the interests of our industry. It’s all of us together that makes that possible.
Pick up a tip or two in these peer profiles where members share about their business challenges and changes to thrive. For a little seasonal fun we also wanted to know about their favorite holidays pies.
Tell Your Peers a Little About You! If you are a member, and are willing to be profiled here, please email us at info@OregonRLA.org. Also, let us know if there is a question you would like to see your peers answer.
GET TO KNOW SOME OF YOUR PEERS BY READING THEIR RESPONSES TO THESE BUSINESS RELATED QUESTIONS:
What’s the biggest challenge running your business? What changes (if any) are you considering to help your business thrive?
RON MOORE Hoagland Properties, Inc., Florence
Title: President Joined the Company: 2018 Member Since: 2018 Holiday Travel: Wherever there’s family Fav Holiday Pie: Pecan Business Challenges and Changes: Two big challenges. First, seasonality, summers make or break our year on the coast. Second, a lack of affordable housing for employees. Looking at all possible ways to accomplish our mission of exceeding guest expectations with a spotless, reasonably priced, well-appointed room and exceptional service.
40
DEBI & MIKE BAINTER DeWayne’s Place, Baker City
Title: Owner/Operators Open Since: 2010 Member Since: 2017 Holiday Travel: There’s no place like home Pumpkin or Apple Pie? Both! Business Challenges: When we opened DeWayne’s Place there were only maybe two VRBO houses and one B&B. Today there are more than 30 VRBO houses and several B&B’s. We are considering moving away from VRBO. The costs to the client have risen and make marketing quality lodging more difficult.
Oregon Restaurant & Lodging Association | AUTUMN 2019
NANCY ROHDE JD Fulwiler & Company Insurance, Portland
Title: Account Executive Joined the Company: 2000 Member Since: 2004 Holiday Travel: Holiday traveler usually Fav Holiday Pie: Pumpkin Business Challenges: The biggest challenge we face is educating our clients based on their individual risks. Communicating so they understand how to best transfer risk by utilizing insurance policies, deductibles, improving systems, etc. With a deep understanding of the industry and the risks my clients face, I am able to make these recommendations.
MICHELLE KORGAN Heceta Lighthouse Bed and Breakfast, Yachats
Title: Owner Joined the Company: 1998 Member Since: 2016 Holiday Travel: I travel and stay there till it feels like home. Fav Holiday Pie: A slice of each! Business Challenges: November- June we have 20 employees. By July we need 50. We post ads for employment all summer long and never feel totally staffed.
AARON BAUMHACKL Solstice Wood Fire Cafe and Bar, Hood River
Title: Owner/Pizza Chef Joined the Company: 2006 Member Since: 2010 Holiday Travel: Yes! Fav Holiday Pie: Pumpkin Business Challenges and Changes:
JIM HOWARD Performance Resources, Inc., Springfield
Title: Vice President Joined the Company: 2010 Member Since: 2017 Holiday Travel: Usually home for Holidays Fav Holiday Pie: Apple Business Challenges:
Overcoming misunderstandings about what we do. Not a recruiter or consultant. We help you hire and keep the great people that you need with proven, cost-effective systems and tools.
MICHELLE KENNEDY Crystal Investment Property, Vancouver
Title: Partner & Principal/Designated Broker Joined the Company: 2004 Member Since: 2005 Holiday Travel: There’s no place like home, although maybe Bend or Timberline for SNOW! Pumpkin or Apple Pie? Both! Business Challenges:
BOH staffing is the biggest challenge. Increasing tip out to the back of house, reduce disparity in pay.
We’ve expanded to five licensed hospitality brokers (plus a dedicated marketing team) to enhance our focus on optimizing connections between buyers and sellers, on and off market.
ALEX DAWES Embassy Suites by Hilton Portland Downtown
Title: General Manager Joined the Company: 1998 Member Since: 2005 Holiday Travel: Definitely a traveler Fav Holiday Pie: Apple Pie…but please, enough with all the cinnamon! Business Challenges: Keeping a great team together whilst finding enough on-property development opportunities for everyone who is looking for growth.
ANTHONY MUIRHEAD Adobe Resort, Yachats
Title: General Manager Joined the Company: 2006 Member Since: 2014 Holiday Travel: Tropical Beach Fav Holiday Pie: Apple Business Challenges and Changes: Finding staff and affordable long term housing for them. The collaboration with our local restaurant and hotel owners to find solutions has been encouraging.
OregonRLA.ORG 41
HELP SUPPORT LOCAL VETERANS BECOME A RESTAURANT SPONSOR TODAY!
LIKE PODCASTS? Try ORLA’s podcast series, Boiled Down, we condense valuable information and intelligence for Oregon hospitality. Subscribe to Boiled Down on iTunes or wherever you get your podcasts so new episodes are delivered directly to your device!
OregonRLA.org/BoiledDown 42
Oregon Restaurant & Lodging Association | AUTUMN 2019
VETERANS DAY MONDAY NOVEMBER TH Sign up today at: returningveterans.org/chow
NEWS BRIEFS Happenings From Around the Industry
Nominate Your Local Restaurant
Become a Chow Down for Vets Restaurant Sponsor
Chow Down for Vets is one of the Returning Veterans Project’s (RVP) annual fundraisers and will be held this year on Veterans Day, Monday, November 11, 2019. Local restaurants are giving back to their community by becoming a Chow Down for Vets restaurant sponsor and donating a percentage of their Veterans Day sales to RVP. Proceeds go directly to providing free, confidential mental and physical health services for local veterans, service members, and their families for an improved quality of life. To become a sponsor and for more information, visit bit.ly/CD4Vets.
We have one of the most charitable industries in the country and our industry provides millions of individuals from all walks of life for the chance to realize their American Dream. Each year, the National Restaurant Association Educational Foundation (NRAEF) honors restaurateurs and businesses that embody these values and principles through its three signature awards programs. Help us tell these stories and apply or nominate someone for the Restaurant Neighbor, Faces of Diversity or Ambassador of Hospitality Award today. The deadline to apply is October 7, 2019. Nominate or apply today at ChooseRestaurants.org/awards.
Be an Oregon Hospitality Advocate
ORLA recently launched a new tool to help us mobilize the industry. This new tool, made possible through our partnership with the National Restaurant Association, will assist us in creating a stronger voice for hospitality at the city, county, state, and federal levels of government. By signing up for this free online tool, you will be among the first to learn about important hospitality issues while receiving the intelligence you need to take action to protect your small business and your employees. Sign up to be an Advocate by texting “ORLA” to 52886.
New Hires to Represent ORLA
Kathleen Buchanan Tehra Cloyd
The ORLA team continues to expand with two new hires, Kathleen Buchanan and Tehra Cloyd. Hired as Territory Managers, Buchanan and Cloyd will be representing ORLA on the ground in various regions of the state focused on new member recruitment, member retention, and generating leads for member programs. You can reach Kathleen via email at KBuchanan@oregonrla.org and Tehra at TCloyd@oregonrla.org.
Join ORLA at a Local Regional Meeting
ORLA staff will be on the road this October hosting Regional Meetings where members can engage in discussions on issues impacting their business. Hear the latest government affairs intelligence our members need to effectively operate their businesses in the coming year based on new laws that have passed in Oregon. Topics to include paid family leave, Corporate Activities Tax, plastic bags/straws, restaurant compensation solutions and tip pooling, Oregon restaurant wage survey, and local / regional issues. Visit OregonRLA.org/Events for a complete schedule.
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DON’T MISS YOUR CHANCE
9
Get an additional
% OFF
SAIF WORKERS’ COMP PREMIUMS FOR ORLA MEMBERS*
ORLA MEMBERS: Contact your agent and ask for an ORLA Group quote, or contact SAIF directly at 888.598.5880.
EXISTING SAIF CUSTOMERS: Ask your agent or contact SAIF directly at 888.598.5880 for an ORLA Group quote.
NOT A MEMBER? Contact ORLA at Membership@ OregonRLA.org or call 800.462.0619.
* For ORLA members who meet SAIF’s underwriting requirement. Contact your agent or SAIF at 888.598.5880 to see if you qualify!
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Oregon Restaurant & Lodging Association | AUTUMN 2019
HOW CAN WE SERVE YOU?
MEMBER SOLUTIONS Save Time and Money with ORLA’s Endorsed Service Providers | OregonRLA.org/ESP
Membership in ORLA means being a part of the only organization in the state devoted to protecting and promoting the interests of the hospitality industry. Contact us for questions; let us know what issues are affecting your business and how we can help. Join today at OregonRLA.org.
WORKERS’ COMP INSURANCE ORLA’s group program with SAIF affords members additional premium discounts if they meet the eligibility requirements.
MEMBERSHIP CONTACTS:
CREDIT CARD PROCESSING Low rates, local service representatives, 24/7 customer service, security and reliability, and rates don’t change for ORLA members.
STEVEN SCARDINA Regional Representative 503.718.1495 SScardina@OregonRLA.org KATHLEEN BUCHANAN Territory Manager 503.307.9173 KBuchanan@OregonRLA.org TEHRA CLOYD Territory Manager 971.218.0849 TCloyd@OregonRLA.org MARLA McCOLLY Director of Business Development 503.428.8694 MMcColly@OregonRLA.org GOVERNMENT AFFAIRS CONTACTS:
JASON BRANDT President & CEO 503.302.5060 JBrandt@OregonRLA.org GREG ASTLEY Director of Government Affairs 503.851.1330 Astley@OregonRLA.org NICOLE PETERSON Government Affairs Coordinator 503.320.9823 NPeterson@OregonRLA.org GLENDA HAMSTREET Executive Coordinator Government Affairs 971.224.1509 GHamstreet@OregonRLA.org
PROPERTY & LIABILITY INSURANCE The only Group Dividend Property and Liability program in Oregon whose policyholders have potential for a dividend. HEATH INSURANCE COVERAGE Standard and Essential healthcare coverage plans for every budget. ORLA Health Solutions also include free prescription discount cards, health savings accounts and ADA website compliance. Learn more from plan administrator, Garth T. Rouse & Associates.
FACILITY SERVICES AND DISASTER RESTORATION $400 invoice credit for Facility Services Program customers, free spot removal and stain treatment kit and clinic, free Level 3 room deodorization treatments (2x/year), free Emergency Stabilization (up to $1,500) and much more! COMPUTER EQUIPMENT AND IT SUPPORT ORLA Members receive up to 30-40% off the everyday price on select Dell products. Members can also receive round-the-clock access to IT help with ProSupport, only from Dell. PAYROLL, TIME & ATTENDANCE, SCHEDULING, AND HRMS Receive 39% off Payroll Module and 20% off any additional modules, including Time & Attendance, Scheduling, and Human Resource Management Systems (HRMS), for the lifetime of their membership. All modules come with local team-based support. OFFICE PRODUCTS AND SERVICES Up to 80% off Manufacturers Suggested List Price. Create customized buying list to fit your needs.
MUSIC LICENSING ORLA Members can save up to 20% off their music licensing fees.
MUSIC LICENSING ORLA Members can save 10% on first year annual fee.
ORLA 401K / PROFIIT SHARING Employers with a qualified plan are exempt from participating in OregonSaves. Learn more from plan administrator, Garth T. Rouse & Associates SEX TRAFFICKING RECOGNITION AND RESPONSE: 10% discount on in-person training and Guardian Seal Virtual Training program.
human sex trafficking is the buying or selling of another hu OregonRLA.ORG 45
an exchange of anything of value for the sex act. Sex trafficking is United States and around the world. The most common place to b
ServSafe
Create a Culture of Food Safety.
ORLA's ServSafe® Manager Certification Course Give the best protection possible to your business, your brand and your customers. Help your team protect against foodborne illness outbreaks with ORLA's ServSafe training. This course blends the latest FDA Food Code, food safety research and years of food sanitation training experience. Your team will learn to implement essential food safety practices and create a culture of food safety. This certification meets the “Demonstration of Knowledge” and “Person in Charge” requirements of the Oregon Food Code and includes additional risk management training. Certification is valid statewide for five years and also satisfies the food handler requirement.
CLASSES AROUND THE STATE: Classes are held regularly in Portland, Wilsonville, Woodburn, Eugene, Medford and Bend. Register Online at OregonRLA.org/ServSafe
ON-SITE PRIVATE CLASS: If you have 15 or more employees for the ServSafe course (and you have a classroom setting) we can provide the trainer at no additional cost! Call 971.224.1503 or 866.679.6733 for details.
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Oregon Restaurant & Lodging Association | AUTUMN 2019
LOOKING AHEAD Visit OregonRLA.org for event details and registration.
SUNDAY
MONDAY
TUESDAY
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WEDNESDAY
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THURSDAY
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FRIDAY
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Regional Meeting: Ashland
6 7 8 9 10 11 12 OCTOBER 2019
ServSafe Class, Portland
Regional Meeting: Regional Meeting: Albany Portland
13 14 15 16 17 18 19 Regional Meeting: Redmond
ServSafe Class, Wilsonville
ServSafe Class, 24 25 26 20 21 22 23 Medford Regional Meeting: Hood River
Halloween 27 28 29 30 31 1 2
Regional Meeting: Astoria Chairwoman’s Getaway at Cannon Beach
Election Day 3 4 5 6 7 8 9
NOVEMBER 2019
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Veterans Day
11 12 13 14 15 16
Chow Down for Vets
ServSafe Class, Portland
17 18 19 20 21 22 23 ServSafe Class, Wilsonville
ServSafe Class, Bend
Thanksgiving 24 25 26 27 28 29 30
ServSafe Class, Woodburn
1 2 3 4 5 6 7 ServSafe Class, Wilsonville
DECEMBER 2019
8 9 10 11 12 13 14 ServSafe Class, Portland
15 16 17 18 19 20 21 ServSafe Class, Eugene Hanukkah Begins At Sunset
Christmas 22 23 24 Eve
Christmas Day
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Kwanzaa
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New Year’s 29 30 31 Eve
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