New Food Code Rules: Do You Know The Details?

“The health inspector visited our restaurant and said we need to have a warning on our menus that we serve raw animal foods. I was unaware of this requirement; where do I find out how to state that information?” – restaurant operator in Hood River, Oregon

By now most restaurants in Oregon are aware of the new FDA Food Code rules that went into effect on September 4, 2012. But based on questions we’ve received over the past several weeks, it appears many don’t know some of the specific changes and are searching for details on how to implement the new rules.

The Oregon Public Health Division Foodborne Illness Prevention Program developed a number of fact sheets on the various rule changes and new sanitation rules that operators can easily download online. For example, the Consumer Advisory fact sheet addresses the requirement to disclose to consumers the risk of eating raw or undercooked foods. The advisory outlines specific language that should be used in the disclosure and reminder statements, as well as gives examples of food types that would require a Consumer Advisory. To download the fact sheets, visit Oregon Health Authority (OHA) online.

As part of a comprehensive educational program for ORLA’s annual Convention this past September, representatives from OHA and Lane County Environmental Health gave a presentation on the new food code rules. Attendees learned how to prepare for inspections, documentation, wellness policies, and how to implement some of the major changes. Visit OregonRLA.org/Convention to download the presentation notes.

And in case you weren’t aware, ORLA’s website has a number of federal and state regulatory agency links conveniently listed on one page that restaurant and lodging operators can reference. Visit ORLA's website for more information, or call us at 503.682.4422.

Evolving ORLA (part 1): The changing demographic of the industry

Demographic information has always fascinated me. Analyzing data about the demographic makeup of an area and how that affects retail sales or elections or local politics is always an eye opener. I’ve maintained my interest in the subject over the years and used it as a tool. I’m glad that I did as the current demographic makeup of our industry tells us that changes are afoot and that ORLA needs to address them to remain relevant.

We’re experiencing a major changing of the guard in the ownership of the businesses that make up the hospitality industry. The dominant generation of our industry for the past 25 years has been the Baby Boomers – those born between 1946 and 1964. At that time they were the largest generation in the history of the nation and as they moved through their lives they affected everything in our society from laws to elections to fashion to business and leisure.

The era of the Baby Boomer is passing. Did you know 10,000 Boomers turn the age of 65 every day? That is one every 7 seconds. Why is that important? Well, 65 is the traditional retirement age. Owners and operators of restaurants and lodging properties who have been leaders in the industry and active in your association are reaching retirement age and leaving the industry. It will continue at this pace for the next ten years. Then we’ll see the majority of owners, operators and leaders in the industry are from the Gen X (born 1965-1980) and the Gen Y or “Millennial” (born 1981-2000) generations. (Read also USA Today's "Hotel CEOs getting younger".)

Why does this matter you might ask? Well, the Baby Boomers are joiners. They have traditionally supported those associations and organizations that they felt supported their business or beliefs. Signing them up for membership was not a tough sell. They believed in the concept and were supportive and active as members. However, the generations that follow them are a bit more discriminating when it comes to joining associations. They have to believe that investing their time and money will benefit them personally or professionally before they will join any organization. So, associations, including ORLA, have to be sure they are providing programs and services these generations value and are willing to support.

This environment represents a real turning point for all associations. The membership that they’ve represented for the past thirty plus years is changing rapidly as the numbers above indicate. If ORLA is to remain viable as a membership option, and as the representative of the hospitality industry, the leadership and staff are going to have to review all activities and programs to ensure they are valued by the emerging owners and operators in the hospitality industry. Those individuals are the future of ORLA and our industry. Your association needs their support and participation to continue to be an effective industry representative. | Steve McCoid, president & CEO

(In Part 2 we look at how we need to adapt, change and accommodate to meet the needs of the new generation. )

Evolving ORLA (part 2): Accommodating the new paradigm

In the last blog post I spoke about how the demographic of our industry is changing as Baby Boomers are retiring. ORLA needs to remain viable as a membership option, and as the representative of the hospitality industry, the leadership and staff need to ensure the association offers valuable programs and services for the emerging owners and operators in the hospitality industry.

How will your association staff and board deal with this paradigm? Well, we’ve taken the first step by commissioning a telephone survey of the membership, which is being conducted this month. As I relayed to you in last month’s Main Ingredient, we’ll use this information to identify areas we need to improve on or add to and use the survey as a baseline to determine our performance moving forward. We’ll also begin a thorough review of every program we offer to determine their current and future relevance. We’ll reach out to the various age groups of members and non-members in the industry to find out what they feel the association’s mission should be and how we can improve our programs and services to meet those expectations. We’ll also be asking representatives of the various industry segments we represent the same questions. We’ll look at fine-tuning our mission statement making sure to apply our financial resources in the most impactful, effective manner possible. In short, the staff and board are embarking on a long term planning process to reinvent the association to meet the needs of our multi-generational membership.

This is a very large and vitally important initiative that the staff and board are undertaking. I invite your feedback at any point in the process beginning with this editorial. We need to know what you think of our work and how you would like to see it altered, added to or redesigned. Please make the time to answer our surveys, questions or requests for information if and when you receive them in the future. This is your association and we need your assistance in building the association model of tomorrow. I’m confident that with your input and support along with the experience and passion of the ORLA staff and board, we will get this done and emerge as the acknowledged leader and representative of our new multi-generational industry of owners and operators. | Steve McCoid

Training Our Future Workforce

Aside from the economic rut restaurants have faced in recent years, it’s still not easy running a successful restaurant. From rising food costs to employee healthcare, there’s any number of business issues owners need to address every day. One challenge that seems to be top of mind for many continues to be that of hiring qualified staff with experience in the kitchen.

For over a decade, ORLA’s Education Foundation has focused on developing our industry’s future workforce, helping build a stronger connection between the classroom and the industry. This past February, we watched as close to 100 ProStart students from around the state competed for top honors in the Oregon ProStart H.S. Culinary Championships. They represented only a small fraction of the 3,000 students statewide that participate in this two-year culinary arts program. Blending practical skills with real-world experience through internships, the ProStart program prepares these students for the future and growth into leaders our industry needs.

The team from South Salem High School is busy practicing and perfecting their meal preparation in anticipation for their trip to Baltimore, Maryland on April 27 for the 2012 National ProStart Invitational. Teams participating in this national competition are challenged to prepare a three-course meal (from scratch) in only 60 minutes. Their performance during the practical session is observed and rated by judges from leading colleges and universities across the nation. First through fifth place winning teams are awarded medals and scholarships to pursue a career in the restaurant and foodservice industry.

Want to get involved in this cool program? Contact Jami Scott at 503.682.4422 and find out how you can support this program through mentorship, internship or financially.

Giving Thanks & Recognizing Charity

We all know that Thanksgiving in America originated from a combination of European and Native American traditions. The Europeans held festivals celebrating their safe voyages and gave thanks to a bountiful harvest just as Native Americans did. And when the Pilgrims didn’t have enough food for all the colonists, the Native Americans shared their harvest and taught them how to fish.

This tradition of sharing and helping others has continued over the years – and not just on Thanksgiving Day, this philanthropy is seen every day of the year. Nine out of every 10 restaurants participate in charitable activities. We see their contributions all around us - from hosting fundraising events benefitting children’s hospitals to feeding troops returning home from oversees duty – this humanitarianism is led by dedicated leaders and staff of the hospitality industry. With over 9,000 foodservice operations in Oregon, that’s a significant number of businesses making an impact in their local communities.

To celebrate the industry’s successes and show appreciation of the industry’s role in improving the quality of life for the greater audience it serves, the National Restaurant Association and American Express present the Restaurant Neighbor Award. This award recognizes restaurants who give significant contributions back to their communities. Each year, four national winners receive $5,000 each toward continuing their charitable works.

Restaurants of all sizes are encouraged to apply for this award. Not only is the Oregon finalist recognized statewide at ORLA’s Annual Convention but they will also be listed as the state winner in NRA’s media and forwarded on for consideration in the national selection of winners. Applications for the 2012 Restaurant Neighbor Award are due December 20th (updated)– visit Restaurant.org for details.

Minimum Wage Increase In 2012

State Labor Commissioner Brad Avakian announced today that Oregon’s minimum wage will be raised to $8.80 per hour next year. The 30-cent increase mirrors a 3.77 percent increase in the Consumer Price Index since August 2010. Oregon’s minimum wage rate remains $8.50 per hour for all hours worked in 2011. Washington state, where the minimum wage is currently $8.67 per hour, will announce its 2012 minimum wage on September 30th. Oregon’s minimum wage is the second highest in the country behind Washington.

Ballot Measure 25, enacted by Oregon voters in 2002, requires a minimum wage adjustment annually based on changes in inflation as measured by the Consumer Price Index (CPI). The Commissioner of the Bureau of Labor and Industries (BOLI) is directed to adjust the minimum wage for inflation every September, rounded to the nearest five cents. Washington does not round its wage up.

Oregon’s unemployment rate is still one of the highest in the country, and this wage increase is not expected to help reduce the unemployment rate. The fact that the increase goes up automatically does not take into account some of the factors that most state and federal minimum wages do; for example, youth employment and other income sources like tips.

Most states have a youth or “opportunity wage” that allows employers to reduce the minimum wage for the first 60-90 days on minors, essentially during their training period. The youth unemployment rate is twice what Oregon’s unemployment rate is, and the minority youth rate is even higher at more than 30 percent. Oregon’s minimum wage law ignores this fact completely and will likely increase the disparity that these young workers are facing in Oregon.

Oregon is also one of only a few states that don’t allow an employer to take into account declared tips as part of the wage. Tipped employees average over $20 an hour and are the highest hourly wage earners in restaurants. The state and federal government tax the tips, so they take their share, but do not allow the employer to account for the tips. Restaurant hourly wage workers that do not receive tips average between $11-15 an hour, and the law ignores the struggles these workers are often facing.

Given the economy in Oregon, it seems like more people are worried about “having” a paycheck or job now more than ever before. Oregon should consider ways to address the problems with the failed policies that continue to put us at the bottom of job growth and get more people working and receiving a paycheck. | Bill Perry

Immigration reform continues to be an important topic for the hospitality industry.

As one of the largest trade associations in Oregon, Oregon Restaurant & Lodging Association (ORLA) has a vested interest in all things generating business for the industry. Bill Perry, vice president of Government Affairs, and ORLA member Gus Castaneda, general manager of The Mark Spencer Hotel, recently attended a roundtable discussion on “Business Imperatives for Immigration Reform” in Portland. The Hon. Francisco J. Sánchez, undersecretary of commerce for International Trade - U.S. Department of Commerce was the featured speaker for the program.

Although it was a small group of only 35 business people, discussions were productive and focused on immigration issues around growing the economy. Specifically, topics covered: how to make it easier for tourists in far eastern countries like China and India to get travel visas, professional or skilled visas, and the importance of overall immigration reform. The forum was sponsored by the White House, Portland Business Alliance and the Hispanic Chamber.

If you weren’t already aware, ORLA serves as co-chair of the Coalition for a Working Oregon (CWO), an organization created with the goal of advocating for comprehensive immigration reform. With 22 member organizations, CWO represents the first consolidated effort by Oregon employers to create support for a measured and sensible approach to comprehensive immigration reform at the federal level. Visit the Coalition’s website for more information or to get involved.