Helping Protect The Viability Of Oregon's Restaurant Industry

2017 is upon us and with it comes another significant legislative session chalk full of debates around the budget, labor laws, and transportation funding. If you haven't made plans on February 28, please set aside the date for our industry. We have an opportunity to connect you with your legislators that day in Salem's Capitol building.

We know there are real issues on the horizon in Salem and we will not be able to be effective without your engagement and commitment to stay educated as priorities emerge. Front and center will be paid family leave legislation and restrictive scheduling laws that create even more pressures on Oregon's small businesses in the wake of new minimum wage laws and paid sick leave. We must be involved in these conversations to protect the viability of Oregon's restaurant industry.

As you may have heard, we have our own proactive priorities we hope will be considered including more balance in compensation between kitchen staff and wait staff as well as a comprehensive transportation package to improve mobility and access to Oregon's restaurant scene. In addition, you probably know we are in the middle of filing appropriate paperwork to the United States Supreme Court to fight for the rights of our members to implement a tip pooling policy between wait staff and kitchen staff here in Oregon.

The 91 people in Oregon's Capitol building over the next six months have their hands full and they'll need our help to make wise and thoughtful decisions that benefit Oregonians. The biggest issue continues to be balancing Oregon's budget and making sure spending is reined in based on resources available. Our state budget continues to grow (over eight percent growth) but spending is growing at a more rapid pace. In order to be effective, Oregon's legislators will first be challenged by the give and take of Oregon's budget balancing process.

We expect the upcoming legislative session to be one of the most challenging in recent memory. The politics at the national level could create a more abrasive environment at the state level. Those dynamics will make your business story and your willingness to show up in Salem more important than ever.

Take us up on our February 28 invitation. Make a difference in 2017 for Oregon's hospitality industry and as always, thank you for making the decision to be in business and employ your fellow Oregonians.

For more information on ORLA's Day at the Capitol, email Greg Astley, director of government affairs at Astley@oregonrla.org. RSVP at OregonRLA.org/CapitolDay. | Jason Brandt, President & CEO, 
Oregon Restaurant & Lodging Association

Changes Are At Your Doorstep

We have a monumental change in the White House as Donald Trump prepares to take the reins of leadership in Washington D.C. No matter how you participated in this year’s election process, there are a number of realities that should be discussed in lodging circles as a result of Donald Trump’s rise to the presidency.

First off, Mr. Trump is a hotelier. This fact should give the lodging community some reason to believe there will be a receptive ear to the issues facing the industry and that the United States will continue to promote the growth of international travel experiences to our country with the assistance of our President-elect.

Secondly, it seems clear that infrastructure investment will be made a priority as part of Mr. Trump’s presidency. You may have noticed that infrastructure investments was the second thing mentioned in his victory speech. Here in Oregon that commitment should come as welcome news as we all understand the correlation between transportation investments and travel.

Another element of note is Mr. Trump’s commitment to keeping American jobs at home. As a hotelier, Mr. Trump realizes that the hospitality industry is full of positions that cannot be outsourced effectively and although technology may change that in some respects our industry remains full of growth opportunities for domestic job creation.

According to U.S. Travel, inbound international travel is ranked second as an industry export and accounts for 10 percent of all U.S. export dollars. This reality showcases how key it will be that international travelers continue to receive value for the dollars they bring and spend in our country.

As advocacy efforts ramp up here in Oregon, I hope you will make the decision to get out on the field and join us for ORLA Day at the Capitol on Tuesday, February 28. That afternoon is our opportunity to mobilize for the hospitality industry and make sure your businesses are further understood by those we choose to elect as lawmakers in our state. If you would like more information, email me at JBrandt@oregonrla.org or visit OregonRLA.org/CapitolDay. | Jason Brandt

The Big Wheels Keep on Turning for Oregon Tip Pooling

The Oregon Restaurant & Lodging Association owes a debt of gratitude to our partners at the National Restaurant Association and our friends at Jackson Lewis law firm for working together to cover all costs for a petition of the United States Supreme Court in our case, Oregon Restaurant & Lodging Association v. Perez. If the Supreme Court takes the case, both parties have also agreed to cover all costs associated with necessary deliberation of our position. So, fingers crossed that the U.S. Supreme Court does in fact take the case and grant our petition for rehearing.

If you’re just now getting up to speed, we continue to fight for the rights of our restaurant members to implement mandatory tip pooling policies amongst staff working within the line of service as they see fit. We feel tip pooling amongst staff (not management) to be a right of employers when they are already meeting the full requirements of minimum wage law for all staff they employ.

There are seven states in our country (including Oregon) that do not have a tip credit, meaning all employers in these states are meeting all minimum wage obligations of all staff regardless of tip income being received by employees from customers. In a controversial decision on February 23, 2016 the Ninth Circuit, to the surprise of many, disregarded its own precedent in a previous case ORLA was involved with in Cumbie v. Woodie Woo to hold that the United States Department of Labor (DOL) had lawfully promulgated a rule under Section 203(m) of the Fair Labor Standards Act (FSLA) that restricts employers from implementing “tip pooling” arrangements that require employees that are customarily and regularly tipped (such as restaurant servers) to share such tips with their fellow employees who are not customarily or regularly tipped (such as kitchen staff).

On September 6, 2016 our case was denied a rehearing which upheld the February 23 decision. We were however granted a stay of the Ninth Circuit, meaning the government will not enforce the February 23 decision until either the Supreme Court denies our petition for certiorari or the Supreme Court reaches a final resolution on the merits of our case (if it takes the case).

Our lawsuit, Oregon Restaurant & Lodging Association v. Perez, is based on our belief that principles established in previous court cases that established the rights of our members to create tip pools between front of the house and back of the house staff were intentionally supplanted by a federal bureaucracy that didn’t like the decision judges made in our case.

If we look back at where we started on this issue and where we are to date, it has been quite the journey full of crucial questions that must be addressed about what separation of powers look like in the United States of America. Should the U.S. Department of Labor have the right to create a new rule that applies to employers operating in states that are already paying the full obligations of minimum wage outside of tip income and tell those employers how tips can and cannot be dispersed amongst employees within their private business? Should the U.S. Department of Labor be able to circumnavigate clear judicial direction given to us in our district court case allowing tip pooling in our state through a stroke of their rulemaking pen?

We certainly don’t think so. And we hope the U.S. Supreme Court agrees that a closer look at our case is deserving as they make tough decisions about what cases to accept with their limited time. Keep your fingers crossed – it is possible your statewide association in the northwest corner of the country will have its day in court amongst the most highly regarded court in the land.

In the meantime, please review your available tip pooling options here as we await more clarity on tip pooling through the judicial process. | Jason Brandt, President & CEO

No on 97 – Oregon’s Largest Tax Proposal Ever

In a few short weeks it will be hard to miss the battle taking place on Oregon’s ballot between those
advocating for more tax revenue for state government versus those against it. The $6 billion tax increase proposal is the largest in state history and would be paid on the sales of products and services that Oregonians buy every day. The projected cost for the average Oregon household totals over $600 a year.

For months, Oregon Restaurant & Lodging Association has been officially opposed to Measure 97 (previously known as Initiative Petition 28). In partnership with consumers, families, small and large businesses, and organizations from across Oregon, ORLA will fight hard against this tax proposal and the harmful impacts it would have on our great state. Our biggest concern continues to be the impacts the measure will have on disposable income given the industry’s reliance on the ability of Oregonians to eat out on a regular basis. In addition, direct increased costs relating to food and utilities in particular will further disrupt the fragile profit margins our members are working hard to protect.

 We want all industry members to take the time to learn more about the proposal and engage in conversations with friends and family to discuss what’s at stake. In one of the most glaring mistakes, you will see proponents in favor of the measure praising the tax for its ability to boost dollars for education when nothing in the structure of the measure guarantees that any of the tax revenue would actually be spent for that purpose.

Given our recent track record with Cover Oregon and other wasteful government programs, my hope is that there is common agreement across party lines that cutting a blank check for over $6 billion to our state government might not be the wisest decision.

There is a wealth of information available online to digest at your own pace as you prepare to make decisions about your views on Measure 97 this election year. For me personally, the independent study conducted by the Legislative Revenue Office takes the cake. It concludes that if Measure 97 were to pass, Oregon would lose over 38,000 private sector jobs.

 These facts may give you confidence that Measure 97 has very little chance of passing but we cannot rest on our laurels or become complacent about the real threat it poses to disposable income flexibility for Oregon families and increased costs for your business. In order for our industry to continue its impressive pace of growth and success, damaging measures like Measure 97 must be defeated and defeated soundly. It is time to send a message that massive tax increases on the backs of working Oregonians will not result in a better Oregon. Instead, it creates larger rifts between private sector businesses who churn our state economy and the Oregonians working hard as part of the public sector.

This fight at the ballot box will further sever those relationships so please take the time to educate yourself on the realities of Measure 97 without becoming part of the animosity or ill will that pits Oregonians versus Oregonians.

Please take the time to visit Defeat97.com to learn more about the coalition we are officially a part of and how you can be involved. Let’s stand together against harmful proposals and continue building a stronger Oregon for our children and grandchildren. | Jason Brandt, President & CEO

The Changing Face of American Business

Changes in our country relating to overtime work are finally upon us. As of December 1, 2016
employers will be required to pay employees classified as exempt from overtime a salary of at least $47,476 a year or $913 a week. If an employee currently defined as exempt does not make $47,476 a year then they will be eligible for time and a half pay for all hours worked in a week over 40 hours just like non-exempt employees. The new federal law is putting immediate pressure on the hospitality industry to determine what changes to make, if any, to labor structures within their operations.

Recently the Oregon Restaurant & Lodging Association conducted an online survey of members to provide insight to operators on how their peers plan on handling such a significant change in labor law requirements.

A staggering 45 percent of respondents will be reclassifying current “exempt” employees as “non-exempt” employees and will pay overtime for any work in a week over 40 hours. Over 41 percent responded to our question relating to labor changes by clicking “other” with the majority saying the new rule will not apply to their current business as they do not employ exempt employees. The second most popular answer of those clicking “other” appears to be a hybrid approach. For exempt employees close to the new $47,476 a year threshold they may move them up to that new salary standard to keep intact their salaried position and the flexibility to work over 40 hours as needed in the business without a labor cost obligation of paying time and a half for those additional hours. For others not close to the threshold, they may be reclassified and held to 40 hours a week of work or less. And lastly, 14 percent of respondents will continue classifying their managers as “exempt” employees and raise their salaries to the $47,476 threshold so overtime pay does not apply.

As the results show, very few operational tactics are one-size-fits-all in their execution. We are an industry filled with wide ranging business models, target audiences, operational margins, and company cultures. We continue to hold the rank of being the second largest private sector employer in Oregon behind healthcare. These changes in how business is conducted can and will have unintended consequences. One of the more concerning outcomes are any changes made to those in transitional positions working hard to acquire the skills to become a manager.

It begs the question, who is ultimately responsible for professional development? The overtime rule was implemented by the U.S. Department of Labor to create forceful direction to employers who were “underpaying” managers while working them 50-60 hours a week without overtime pay. But what about the hard working 20-somethings eager to work those extra hours as an assistant manager to develop professionally? Who is responsible for the new limitations put on their ability to pursue that general manager position? Will they hold the government responsible or their employer for their unwillingness to pay them overtime to develop those skills?

Like most things in life, I believe the answer lies in the middle. Businesses will adjust as they always do and sacrifices will be made to employee morale when reclassification to hourly positions from salaried positions takes full effect. But those that will succeed will find creative ways to create professional development opportunities in place for employees looking to move up the ladder. Some will choose to incorporate aspects of managerial training within the constraints of the 40 hour work week while others may choose to pay the new $47,476 a year salary or simply pay overtime from now on for any necessary training hours beyond 40 hours a week.

The face of American business is changing and we are committed to doing our part to share helpful information about how savvy businesspeople are choosing to adapt to those changes.

Keep informed at Oregonrla.org | Jason Brandt, President & CEO

Thumbs Up To City Of Seaside For Their Lodging Outreach Efforts

Tourism continues to flourish along Oregon’s coastline and with that success comes efforts by some communities to double down on tourism related investments that can further drive their local economies. The City of Seaside is a prime example of a local government doing it right by proactively engaging their lodging operators at the front end of lodging tax increase discussions.

Due to the success of lodging sales, lodging tax revenue in Seaside has gone up substantially, resulting in double digit increases the past several years. In order to build off that success, the City has proactively reached out to lodging operators about a sizeable renovation to the Seaside Convention Center.

“For the most part our larger hotel and motel properties are very supportive,” said Seaside City Manager, Mark Winstanley. “We have been in discussions about a two percent increase in the tax. All of that money would go towards debt retirement of the facility.”

By focusing on debt retirement, the City would be able to move forward with a desired $15 million renovation of the convention center to add capacity and further expand tourism performance.

“We have been encouraging local governments to reach out proactively to their local lodging operators to discuss tourism investments as a first step,” said Greg Astley, director of Government Affairs for the Oregon Restaurant & Lodging Association (ORLA). “That commitment is playing out in Seaside which we hope other cities will learn from.”

Lodging tax creep across Oregon is something being tackled as a top tier advocacy priority for ORLA. The association recently opposed a lodging tax increase proposed in the City of Beaverton due to a questionable claim that a new Center for the Arts would drive tourism traffic and justify an unprecedented new four percent tax on operators inside the city limits. The city also illustrated a lack of engagement with local lodging operators to obtain support for this coveted center.

“The lack of direct outreach by the City of Beaverton to lodging operators located inside the city limits is shameful,” said Jason Brandt, ORLA’s President & CEO. “There is no proof or data available to suggest the proposed Beaverton Center for the Arts will have a ‘substantial purpose of driving tourists’ to the City of Beaverton.”

State law requires that 70 percent of all increases in tourism taxes be used for tourism promotion or tourism related facilities. The City of Beaverton plans to spend the new four percent tax on the Beaverton Center for the Arts, which seems to fail the test of being labeled as a tourism-related facility. Currently, there are no lodging operators in Beaverton supportive of the increase in lodging tax to help pay for the construction of the arts center.

“The contrast between Seaside and Beaverton in their approach to lodging operators is evident,” said Brandt. “On one hand you have a city proactively reaching out to their lodging operators to confirm an increase in the lodging tax would benefit their businesses and the tourism economy. This outreach ultimately led to general support from operators for the increase and investment plan. On the other hand, you have a City pushing through a lodging tax increase with no lodging operator support on an investment that is deeply questionable in regards to its ability to actually generate substantial tourism traffic.”

If you are aware of lodging tax creep in your community, please contact us at Advocacy@OregonRLA.org.

Help Defeat the $6 Billion Tax on Oregon Sales

As you know, Initiative Petition 28 (IP28) – a proposed new tax on Oregon sales that would cost Oregon consumers and Oregon businesses billions – will be on the November 2016 statewide ballot.

IP28 would impose a huge new $6 billion tax on sales – the largest tax increase in state history – and would increase costs for Oregon businesses, working families and consumers with no guarantee where the money would be spent. If passed, this extreme measure would make our industry less competitive and make lodging and dining out costlier for our Oregon customers.

Defeating IP28 is a priority for the Oregon Restaurant & Lodging Association. We’re asking you to join the Defeat The Tax On Oregon Sales coalition and help spread the word about this costly and damaging proposal.

Some important facts about IP28:

• IP28 would tax sales, not profits. Businesses would be required to pay the new tax whether they have a large profit, small profit, or no profit at all. 

• IP28 does nothing to guarantee the new tax revenues would go to schools, healthcare, or senior services. All of the new taxes would go to the General Fund, giving politicians and bureaucrats a blank check to spend billions of dollars as they please with no accountability to the public. 

• IP28 would impose the worst kind of tax on sales because it would be added at multiple steps in the production process – a “tax on a tax” – cascading into much higher prices for items Oregonians buy every day, without any exemptions. Electricity, fuel, insurance, food and many other items and services we rely on would be subject to the tax – making Oregon products more expensive and Oregon companies less competitive.

• A study by the nonpartisan Oregon Legislative Revenue Office (LRO) concluded that about two-thirds of this tax on sales would end up being paid by Oregon consumers, costing the average Oregon household more than $600 every year.  

• The LRO estimated passage of IP28 would result in the loss of more than 38,000 private sector jobs, impacting Oregon’s overall economy, small businesses and multiple industries.

Here’s where you come in. 

If you haven’t already, please join the coalition. Once you’ve joined, you will receive news and updates about the efforts to defeat IP28 and what you can do to help.

Visit the campaign website, DefeatTheTaxOnOregonSales.com, where you can read news and information about the negative impacts of IP28, and donate to the campaign. 

Also, like the coalition on Facebook and follow them on Twitter to share the word on social media about why IP28 is a bad idea for Oregon.

We need your commitment to help our industry by joining the effort to defeat the most egregious tax increase in Oregon history.

If you would like more information about the campaign to oppose IP28 or want to get involved in other ways, please contact the campaign at info@DefeatTheTaxOnOregonSales.com or (877) 575-9950.

Fighting Lodging Tax Creep

In virtually every corner of the state, local and county governments seem to have their eyes fixed on lodging taxes and opportunities to raise them. The recent successes of the lodging industry are being widely reported as more tourists find themselves drawn to Oregon’s wide ranging spectacles. And we of course welcome them with open arms as growth and sales continue to increase.

However, the success we currently enjoy cannot continue in perpetuity. We have been incredibly fortunate in the prolonged status of the current economic recovery and we realize the next recession is not a matter of if but a matter of when.

This distinction seems to be lost on our local and regional representatives who sometimes view the lodging sector as an easy target for their general fund woes. Why not add an extra percent to the local lodging tax to solve our ‘XYZ’ revenue shortfall? Can’t they just pass the tax on to their guests?

If only it were that simple. As “lodging tax creep” continues throughout the state, we’re finding the need for a renewed commitment to support our local and regional stakeholders who are fighting the urge of local governments to tack on more tax burden on the administrative shoulders of our industry.

For one, we’re already making it very clear that we will be strongly opposed to lodging tax increases moving forward unless there is local support from the lodging community. To that end, we are encouraging local governments to reach out to their local lodging stakeholders as a crucial first step if they feel they have a case for why a local lodging tax rate should be adjusted.

Cost drivers within government are strapping city managers and city councils who are determined to balance their budgets. These significant rises in expenses continue to be driven by pension and healthcare obligations that require more revenue as retirees live longer lives and as healthcare premiums continue to rise.
We fully understand these challenges and openly welcome conversations with local governments that feel the lodging tax is somehow a piece of the answer to these challenges.

Oregon Restaurant & Lodging Association created a “Tourism Best Practices” handout as part of our renewed effort to carefully track lodging tax creep across Oregon. This document is one tool that can be used by lodging operators to help explain the important symbiotic relationship our industry shares with local government partners.

Our success is their success until lodging tax creep gets out of control. I believe we are on the brink of crossing that unsustainable threshold and as a result, we need to be more aggressive in protecting local governments from biting the hand that they rely upon for sustained tourism promotion as well as partial general fund support.

If you are aware of lodging tax creep in your community, please contact us at Advocacy@OregonRLA.org. | Jason Brandt, President & CEO

Realignment, Deeper Engagement on Your Doorstep

Oregon Restaurant & Lodging Association is ramping up an important process to dig deep and implement a rolling strategic plan for the future of the organization. We are now over five years past the merger of the association, which brought lodging and restaurant members under the same umbrella of advocacy and connectivity. Many things have gone well and other areas we are excited to enhance.

As we look to the future, here are some samplings of what you can expect from your association as we further the value proposition for our lodging partners.

The Expansion of Guest Service Gold® Customer Service Training
Over 200 hospitality professionals in Oregon have already been trained through the ORLA Education Foundation’s new training product, Guest Service Gold. The launch has been made possible by the support of the American Hotel & Lodging Educational Institute and Travel Oregon. Contact Wendy Popkin with ORLA’s Education Foundation to learn more about adding a new dose of confidence to our front line hospitality workers who have lasting impressions on the guest experience.

Relaunching the ORLA Lodging Policy Committee
In one of ORLA’s most recent scientific polls of the membership, lodging members expressed that the value of greatest importance is industry representation. Our goals will include statewide industry representation, consistent participation, and establishing a regular meeting schedule to tackle the advocacy issues of importance to members.

Online Travel Companies
In my first five months on the job, it has become clear that more exploration is needed to look at how ORLA can assist our independent lodging members in negotiations with online travel companies who carry significant leverage in their talks with this segment of our membership. Given the supply filled by these elusive partners, what can ORLA do to pool the collective power of independents? The issue needs a deep dive.

Human Trafficking
We will not shy away from uncomfortable issues that impact our industry and the professionals that work within it. We recently held a brainstorming session about the importance of introducing legislation in Oregon that could create rehabilitation services needed specifically for victims of human trafficking to break the cycle of abuse as well as harsher punishments for individuals seeking these services. We remain optimistic that a viable partnership between ORLA, lawmakers, law enforcement, and district attorneys is in the works and that our work will be driven by real outcomes that have the potential to change lives.

These issues and others will continue to be explored as we do our best to expand and enhance our deliverables to the lodging industry. We look forward to working with you to accomplish important goals for our future. Our work always starts with your feedback.

Feel free to email me with your suggestions at JBrandt@OregonRLA.org. | Jason Brandt, President & CEO

You Asked, We Listened: ORLA Launches Health Plan

Visit OregonRLA.org/HealthPlan

The federal healthcare requirements are upon us and as much as the country has tried to avoid the implications of full implementation, it is here to stay. In a recent survey, 97 percent of ORLA’s membership told us to dig in and find a solution. So we did.

Starting in 2016, businesses with 50 or more full-time equivalent (FTE) employees will be on the hook to pay for the healthcare of any employees working 30 hours or more per week. And if you don’t, say hello to a fine of $2,000 per full-time (30 hours or more) employee per year. That’s right – these fines come knocking every single year.

The year 2016 is a monumental one for healthcare. Through 2015, businesses were able to deduct a total of 80 full-time employees from their fine obligations which led to the majority of businesses having zero liability for the year. In 2016, that changes as the federal government changes the full-time employee deduction to 30. In other words, if you have the equivalent of 50 or more full-time employees and have over 30 employees working 30 hours or more a week (full-time), you will be charged $2,000 per full-time employee over the magic 30 threshold.

At first glance this may seem like a bigger business issue to you. Don’t buy into that trap. As the new fines unfold, employers are bound to see more healthcare coverages for workers emerging in the marketplace creating major competition amongst big and small employers for workers. In the not too distant future, mom and pop location “X” may start to lose their employees to bigger business “Y” because bigger business “Y” is now offering some form of a healthcare plan to their workers to avoid federal fines.

The shifts in the marketplace are coming and the Oregon Restaurant & Lodging Association is ready with a solution. As of December 1, 2015, ORLA’s health plan options are available for members big and small but will be a member only benefit for active businesses in the association.

For under $49 per full-time worker per month, member businesses will be able to join the ORLA Minimum Essential Coverage (MEC) Plan giving each subscriber access to preventative care. In addition, the plan will save large employers from excessive federal fines for not offering coverage and will protect all workers signed up in the plan from individual yearly fines that are incurred when they don’t have health coverage.

In addition, ORLA will offer a MEC Plus Plan for under $69 per full-time worker per month that provides access for each worker to four doctor office visits a year.

Both plans will become a major solution for our industry and member businesses due to their ability to protect employers and their employees from fines while offering an affordable health coverage option to businesses interested in adding a perk to their workforce benefits.

The healthcare evolution in the United States is at our doorstep and we will all feel it one way or the other. Do yourself a favor and take action by owning the solution that has been vetted and packaged for you through your membership.

Visit OregonRLA.org/HealthPlan for more information and to get a quote.

Not a member yet? Email our membership department and we’ll get you squared away. | Jason Brandt, President & CEO

ORLA to Welcome Change in Leadership

Jason Brandt

After a 32 year career in association management, and a terrific experience it has been by the way, I will be retiring in October. The decision to do so was made after a great deal of thought as I truly enjoy my job. It is an honor to represent ORLA’s members as I very much admire their passion for the industry, the jobs that they produce and the communities that they positively affect every day. Working to protect their rights, represent their positions on issues, provide them with needed information and educate their workforces made every work day something I looked forward to with enthusiasm. That is a gift that many don’t receive in life and one I value greatly.

However, there does come a time when you know it is time to move on to another chapter in your life. That time arrived for me last year. I came to grips with the fact that the energy level I’d always tapped to meet all my work obligations was much lower that it had been. I finally decided, or more truthfully knew, that it was time for ORLA to have a new CEO to lead the association in the challenging and changing times ahead.

So, working with ORLA’s Executive Committee, we developed a succession plan last summer. That plan laid out the search process, the type of person the board wanted to replace me with, and a timeframe for getting all of this done and the replacement hired. The search began in September of last year and culminated in the selection and hiring of my replacement in February of this year. A contract has been signed and your new CEO will start his new career on August 10, 2015.

Your new leader will be Jason Brandt who is currently the CEO of the Salem Area Chamber of Commerce. Jason has worked for the Salem Chamber the past 11 years beginning immediately after graduating from Pacific Lutheran University. Jason grew up in Salem and lives there now with his wife Natalie and their two daughters. He has served as CEO of the Salem Chamber for over four years and is a leader in the chamber world in Oregon and the Western region of the country. He brings with him a thorough understanding of association management principles and law, nearly five years of association management experience, experience in the government affairs arena both at the state and local level, and an enthusiastic, people-oriented can-do attitude that will mean great things for Oregon’s hospitality industry.

I’ll be working with Jason getting him familiarized with all things ORLA through September. You might watch for us as I’m sure we’ll be traveling about the state introducing Jason to ORLA’s thousands of members (see ORLA Convention). Serving as CEO of the association is a demanding job and Jason’s skill set will serve him in good stead as he moves into his new position.

I can’t tell you what a joy and honor it has been to be allowed to lead the association. I know what a great job the ORLA team does every day representing your interests. The ever-changing, challenging times the industry has been through have certainly left you with an experienced team of professionals who know how to produce results. That will serve you and Jason with excellence in the years to come. You’re sure to see new ideas, innovative solutions and a fresh, new look at industry challenges from Jason – all good things that are healthy for ORLA. If you’re not already a member, please consider joining ORLA and supporting what will be another great era in ORLA’s long and distinguished history of representing the industry’s interests. Jason and your business need and deserve that support and participation. | Steve McCoid, President & CEO

Restaurant Neighbor Award Winners To Be Recognized for Community Engagement

Oregon Restaurant & Lodging Association (ORLA) announced the state winners of the acclaimed National Restaurant Association Educational Foundation’s (NRAEF) Restaurant Neighbor Award. The national winners were chosen in early February from state awardees by a panel of restaurant and foodservice industry leaders from across the country. Oregon finalists were then considered among all other state winners for a national award of $5,000 at the gala awards ceremony in Washington, D.C. on April 14, 2015.

The Restaurant Neighbor Award, developed in partnership with American Express, celebrates the outstanding charitable service performed by restaurant operators throughout the U.S. With nine in 10 restaurants involved in community service, this award recognizes the impact restaurants and entrepreneurs have made on their local communities.

“The involvement and dedication these restaurants have shown in support of local charitable programs is commendable and exemplifies the spirit of our industry and our state,” said Steve McCoid, ORLA President & CEO.

The 2015 Restaurant Neighbor Award winners from Oregon are:

• Beau Delicious International, LLC dba Café Yumm!, Eugene
• Bandon Dunes Golf Resort, Bandon
• Cattlemen’s Saloon, Rogue River
• Po’Shines, Portland

Award recipients will be recognized among their peers at the Hospitality Industry Awards Dinner, October 4, 2015, during ORLA’s Convention in Bend, Oregon. A complete list of Oregon’s hospitality industry awards can be found at OregonRLA.org/Awards. For more information on ORLA’s Convention, visit OregonRLA.org/Convention or call 800.462.0619.

Advocating on Behalf of Oregon's Hospitality Industry

Oregon State Capitol

Oregon Restaurant & Lodging Association’s (ORLA) stripped down mission statement to “advocate, communicate and educate Oregon’s hospitality industry” has been discussed frequently in this publication. These three words are the reason ORLA exists, however, there is nothing like real world examples of how ORLA is meeting these goals to illustrate the point. I’ll give you some examples below.

We’re certainly in the midst of providing advocacy for you by representing the industry at the 78th Oregon Legislative Session, which began in February 2015. Your association is tracking over 300 bills that could affect your business. The most visible are statewide paid sick leave, a variety of proposals increasing the minimum wage between $12 and $15 an hour, a bill that requires work schedules be written two weeks out for foodservice operations with a penalty for any subsequent changes, and a cancellation of the ban on local governments passing their own minimum wages. ORLA’s lobbyist, Bill Perry, is at the Capitol daily representing your interests to the legislators and working to ensure all damaging legislation is not passed.

ORLA held its bi-annual Taste Oregon Legislative reception on February 17th, drawing over 225 industry members in attendance including a significant number of legislators and their staffers. Here, we’re talking about advocacy in terms of interacting with legislators, and communication by informing our members of the issues being dealt with in Salem. 

ORLA’s Education Foundation helps meet the educational mission by producing the annual OregonProStart High School Culinary Championships. This year’s event was held at Spirit Mountain Casino in Grand Ronde. There were 20 teams competing in an event that requires teams of four to plan and cook a 3-course meal in one hour using two gas burners while properly handling and prepping the food. The winning team from South Salem High School will compete in the National ProStart Invitational in Anaheim representing Oregon.

Finally, we are in the midst of preparing for and planning the annual Northwest Foodservice Show with our partners at the Washington Restaurant Association. The largest foodservice show in the Northwest, this typically draws over 5,000 and will be held in Portland this year at the Convention Center, April 26-27. We’re anticipating 400 booths featuring the latest in products and services plus a full agenda of educational seminars, new product listings and chef presentations. 

That’s just a sampling of the work and services ORLA delivered to the industry in the first quarter of 2015. For those who haven’t become ORLA members yet, please consider joining. All it takes is a call or email to get a helpful representative to review all the programs membership provides. We look forward to working with you as we support our great industry. | Steve McCoid, President & CEO,

Oregon Restaurant & Lodging Association

ORLA Keeps You Up to Date on Emerging Issues

Ebola, marijuana, data security. These are all current topics that we’ve seen in the news, deal with in our businesses, and that represent challenges to anyone managing a lodging property. Some of these are new, some are issues you might think you’d never deal with, and some are issues that you’ve dealt with that keep changing due to on-going improvements in technology. In all cases, they are matters that you need to know about and know how to deal with if they arrive at your place of business. Our December issue of Lodging News addresses each of these topics for you.

You’re busy running your business on a daily basis. You don’t have the time to keep up with these and the many other issues that crop up daily and monthly to affect your profitability. That is a major reason ORLA exists. We are here to communicate these types of issues to you through communication vehicles like our two magazines, e-newsletters, special e-bulletins and our website.

ORLA provides you a one-stop, go-to organization that you can utilize to stay up to date on these emerging issues. Oh, and by the way, we also advocate for reasonable, manageable solutions at the state and local levels to the policy makers who react to the onset of these challenges with new laws, ordinances and regulations.

You need to be up to date. You need to be responsive. You need to be aware of new and emerging issues. You need to be able to answer questions raised by your customers. You can attempt to find the answers on your own, or you can support ORLA and have that one-stop place to get your questions answered accurately and in a timely manner. Give us a try. I guarantee you’ll like the results and make your business lives just a little bit easier and less stressful while doing so. | Steve McCoid, ORLA President & CEO

Recognizing Pride and Passion

Lodging Operator of the Year Craig Thompson (center)

ORLA recognized four hospitality professionals at our annual Awards Banquet during the convention last month in Bend. The Lodging Operator of the Year was awarded to Craig Thompson, GM of the Hotel Monaco in Portland. Craig’s long, successful, influential and continuing 44-year career was highlighted. He was recognized not only for running the #2 rated Oregon hotel by TripAdvisor, but for the leadership role he played in a number of other industry organizations, and for the influence he has had through mentoring employees who have moved on to successful management careers. In fact, Craig pointed with pride to the fact that the #1 TripAdvisor rated hotel in Oregon is managed by a former employee and front desk manager that Craig hired and mentored! All of the award winners are listed along with links to their videos on ORLA’s website (OregonRLA.org/Awards). I encourage you to check them out as they are all terrific representatives of what makes the hospitality industry great. You’ll see the passion they have for their jobs and this industry and see that it hasn’t waned during their long careers.

In this issue, you’re going to be treated to a wonderful feature story that highlights the philanthropic programs several lodging companies operate to benefit their communities and the state. They’ve developed these programs to support charities that resonate with their team members. Those team members participate in the fundraising design and implementation throughout the year. Those results translate into contributions to designated charities that benefit those in need in their areas. The result for the business is engaged employees who are introduced to these types of charitable activities; a development of teamwork as all the employees get involved in the planning, fundraising and presentation of their hard work; and a very real, personal and professional feeling of accomplishment and pride by all involved.

The thing that links the award winners and the teams of the businesses highlighted in the article is passion. The award winners succeeded in their careers because they discovered and brought a passion for what they did every day. That passion could be seen on the awards night as they graciously and humbly received their well-deserved recognition. They all spoke about the love for their jobs. They transmitted their passion for what they do in their brief remarks to everyone in the room.
Similarly, the people quoted in the article this month cited the passion that their employees felt for being involved in a philanthropic program. They tell you how it creates a real link among everyone on the team and improves their view and appreciation of their employer. They do it because it is right – not because they want to benefit from it. They do it because the team has become passionate about the programs and taken ownership of it.

Passion is certainly the operative word here, isn’t it? The passion for serving people is what makes a successful hospitality industry professional. Whether is it the front desk person, a server, a concierge or a room service person it is passion for what they do that makes the difference between excellence and ‘just okay’ for them in their job and, ultimately, for you as the employer.

I can tell you with pride that your association is staffed with people who are passionate about serving you and the industry. All you need to do is reach out and ask for assistance, answers or information on an ORLA program. You’ll get what you need quickly and enthusiastically from a professional, trained to serve you and your needs. Remember us when you need assistance or information. We’re here to serve you and are passionate about doing so. | Steve McCoid, ORLA President & CEO

Supporting ORLA Ensures Your Industry’s Vitality

Members networking at Convention

ORLA is a membership organization and, thus, it is important for its long term viability and fiscal health that it maintains a large, growing, supportive membership. Over the years the association has used all types of sales approaches in its efforts to convince industry operators that they needed to part with a small portion of their hard earned dollars to support its activities. At times we leaned on our very successful suite of endorsed services and the savings they provided members the key reason for joining. Certainly, in terms of a return this made sense to the thousands of operators who joined for that reason. However, this approach created a purely financial relationship that didn’t last if a program’s returns didn’t meet a member’s expectations, leading to a constant turnover in members.

That has led to ORLA changing its sales message to one focusing on the mission of the association as the key reason for joining. That mission, one that calls for ORLA to advocate for, communicate to, and educate its members, is one that when used as the reason for joining produces long term, loyal members who understand and support what ORLA is there to do for them. For your association is the only organization in the state existing to provide those services to your business.

We advocate by representing your interests before the state and federal legislatures and local city councils and county commissions on all issues affecting your business. In other words we lobby for you on a daily basis and are recognized as a leading business association in this arena. One of the largest business political action committees in the state is also managed by ORLA to increase your political profile. We also proactively promote all the good the industry and your business does for Oregon to the state’s media. We serve as your spokesperson.

We communicate to you the information you need to have to successfully operate a business. Those communications can be an explanation of a new regulation or statute that applies to you and your business. It can be providing information on a new program, new technology, industry news or best practices in management. We communicate to the industry through two print magazines, a great website, two e-newsletters, as-needed government affairs e-alerts, and lottery newsletters and confidential bulletins.

We educate management and their employees by providing cutting edge online training programs in food handling and alcohol serving; classroom management-level food safety training; an annual regional trade show and annual convention; and all the information listed in the communications above.

No other organization provides all of these services to you because protecting and representing your interests is our sole reason for existing. We know that meeting that mission creates a better operating environment for your business, thus enabling you to be more profitable.

Membership also benefits those associates that sell goods and services to the industry. It is in their best interest to support ORLA too as the ability for their customers to turn a profit and grow their businesses means that their business will in turn sell more goods or services. It behooves all industry members – retail and associate - to support the only association representing their interests in Oregon by becoming a member; for what is good for the retailer is good for the associate and what is good for the associate is good for the retailer. We’re one industry and we’re in this together. If you’re not a member, consider our mission, this message, and support your association. It truly is a low cost investment in your business that will produce large returns. | Steve McCoid, President & CEO, ORLA